Counsel for Visa and for retailer Kroger Co, a plaintiff in the case against Visa, both have alleged in letters filed in Brooklyn federal court last week that the law firm of Constantine Cannon, which is representing other retailers and Wal-Mart, has a conflict of interest.
An attorney for Visa sent a letter to Constantine lawyer Jeffrey Shinder objecting to handing over “highly sensitive” documents on the settlement, since MCX “maybe competitive with Visa and/or its customer financial institutions.”
Both Shinder and MCX have said that the allegations over any “conflict of interest” were unfounded. They have also stated that the law firm has acted in line with its ethical obligations.
If approved, the $ 7.2 billion anti-trust settlement would be the largest in US history. The settlement would end a litigation continuing for the last seven years. The lawsuit was initially brought by retailers who claim that credit card companies conspired with banks to steer their customers towards payment options, which were costlier than cash purchase. The allegations in the lawsuit include artificial inflation of fees charged for swiping cards and also overcharging of mobile payments via phones.
Wal-Mart and several other major trade associations including the National Association of Convenience stores and Retail Industry Leaders Alliance have hired Shinder to oppose the settlement.
In an Aug. 16 letter to Shinder, Kroger counsel William Blechman wrote, “We are very concerned about the nature and extent of the involvement of Mr. Shinder and his law firm in this venture because of the conflicts that we think it may present.”
In an Aug 21 letter to Visa, Shinder maintained that he and his firm were aware of their obligations under a protective order governing sensitive case material and that concerns of a conflict of interest were not “well founded.” Shinder further wrote that he and his firm “have conducted ourselves ethically at all times.”
