Tribunal approves £200m settlement

After more than eight years of legal wrangling, the Competition Appeals Tribunal (CAT) has approved a £200m settlement between Walter Merricks and Mastercard, marking a significant victory for UK consumers. The decision, handed down on 24 February 2025, brings a close to a landmark case that has shaped the landscape of collective actions in the UK. Merricks, who led the charge against the payment giant, expressed his satisfaction with the outcome. “I am very pleased that after more than 8 years, where I have given my all to get the best result possible for UK consumers, that the Tribunal has today confirmed that the settlement I agreed with Mastercard is just and reasonable – in fact, the Tribunal went as far as to say it had no doubt about that. I had clearly hoped to have recovered more, but the case and facts developed in a way that meant I could recover less than I initially planned, but I recovered the best amount possible. I now look forward to distributing the settlement to get it in the hands of UK consumers.” The full court judgement is expected around mid-March, when Merricks plans to offer further comment.

The journey to this point has been far from straightforward, involving over 30 rulings and appeals that reached both the Court of Appeal and the Supreme Court. Boris Bronfentrinker (pictured), Merricks’ lawyer and a partner at Willkie Farr & Gallagher, highlighted the relentless effort behind the scenes. “This has been the culmination of more than 8 years of hard work. Mr Merricks and his entire team of advisors have fought as hard as possible over that time to get the best possible outcome. There have been over 30 rulings, multiple trips to the Court of Appeal and also to the Supreme Court. Mr Merricks has had to adapt as the case and the facts evolved, but he secured the best possible outcome, which the Tribunal today said it had no doubt was the case. The Tribunal also rightly expressed at the end of the hearing that “Mr Merricks has tirelessly fought for the benefit of Class members over the last eight years and that is appreciated.” These proceedings started off as a landmark case in setting the foundation for collective actions in the UK and it will end being as equally ground breaking in a settlement achieved under heavy attack and challenge by the litigation funder. It is most unfortunate that Innsworth chose to fight the settlement and to also threaten Mr Merricks personally by starting litigation against him. Its efforts have today failed and hopefully they accept that and move on.”

The case faced significant hurdles, not least from litigation funder Innsworth, which opposed the settlement and even launched personal legal action against Merricks. Despite these challenges, the Tribunal upheld the deal, praising Merricks’ dedication to the class members he represented. The £200m will now be prepared for distribution, a process Merricks is eager to see through. While the settlement is less than he originally sought, he and his team adapted to shifting circumstances to secure what the Tribunal deemed the best possible result. This outcome not only delivers tangible benefits to consumers but also cements the case as a precedent-setting moment for collective redress in the UK. With Innsworth’s objections overruled, the focus shifts to the practicalities of disbursement—and the anticipation of the full judgement in March.