MANHATTAN (LN) — U.S. District Judge John Cronan on Wednesday stayed proceedings in a merchant antitrust class action against Visa and Mastercard, ruling the case must wait for the outcome of a pending motion in a related multidistrict litigation that could resolve the dispute.
The suit, filed by Potayto-Potahto, LLC and other merchants, alleges the payment processors violated antitrust laws through agreements impacting payment card fees.
The merchants’ complaint seeks a declaration that certain release provisions in a settlement agreement for a prior class action, known as the Original Class, are invalid and unenforceable.
The Original Class settled in the Eastern District of New York under the docket number 05-MD-1720. That court retained jurisdiction to administer the settlement, and the merchants are pursuing their challenge via a motion for partial summary judgment in that MDL.
Defendants argued that the adjudication of that motion may be dispositive of the claims case.
The settlement agreement for the Original Class provides that defendants are entitled to an immediate stay of any suit in which the agreement’s provisions are asserted as a defense.
Defendants filed an unopposed letter motion to stay the case, noting that the parties had met and conferred and that the plaintiffs consented to the stay.
Cronan granted the request, staying all deadlines in the case until the final resolution of the plaintiff’s motion or further order of the court.
The judge ordered the parties to submit a status update no later than September 8, 2026.
Visa is represented by Holwell Shuster & Goldberg LLP and Arnold & Porter Kaye Scherer LLP. Mastercard is represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP.