SAN JOSE, Calif. (CN) - Merchant Services, Inc. will pay $923,000 in attorney fees incurred by small businesses that claim the company inflated fees for card terminals without notice under a settlement agreement approved by a federal court.
The settlement stems from a class action that accused Merchant Services, a card payment processing company, of adding new terms and conditions to payment processing services without notice and forcing small business to pay inflated fees for card terminals.
U.S. District Judge Claudia Wilken approved the settlement last week, which also awards a $7,500 incentive to each of the named plaintiffs.
According to the Wilken, plaintiffs "remained involved for many years, and incurred risks of liability for Merchant Services' costs for the four year litigation. Further, the named plaintiffs assumed responsibility for searching both personal and business records, and provided several years of banking records and other sensitive, private financial documents for inspection and questioning. They each responded to dozens of interrogatories and more than a hundred document requests. They participated in mediation, appeared for lengthy depositions, and submitted multiple declarations. They had little to personally gain from the litigation."
Adam Gutride, Seth Safier and Kristen Simplicio of San Francisco firm Gutride Safier represented the class.
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