Antitrust Lawyer Runs Amuck In MasterCard Antitrust Case

The recent MasterCard Antitrust case added another layer of complexity and drama to it last week in the U.S. District Court when — according to Law 360 — the attorneys representing Target Corporation and the other merchants in the case, “opened a new line of attack” on the attorneys representing MasterCard.

As the report details, the attorneys representing the retailer groups on the $79 million antitrust card fee settlement case claim that the head plaintiffs’ lawyer “provided protected information” to Willkie Farr & Gallagher LLP — the counsel representing MasterCard in the swipe fee case. Gary Friedman of Friedman Law LLP — who represents merchants that are suing AmEx (a pending settlement)  — allegedly gave those “protected materials” to Willkie.

“The letter, signed by attorneys from Constantine Cannon LLP and Vorys Sater Seymour and Pease LLP, said the potential violation may implicate the pending motion to approve the AmEx settlement. The firms, which represent Wal-Mart Stores Inc., Macy’s Inc., Kohl’s Corp. and numerous other retail chains, have requested a conference with U.S. District Judge Nicholas Garaufis, who is overseeing the litigation,” according to Law 360’s report by Jonathan Randles.

The details that surfaced last week “may offer the group of retailers objecting to the AmEx deal a new way to challenge the settlement,” Law 360 reported.

“We are concerned that the information provided to us thus far by Mr. Greiner indicates that the elements of procedural and substantive fairness required in relation to approval of the proposed settlement may have been compromised,” the letter said.

Here’s how the details of the letter unfolded, according to Randles: “Greiner sent a letter to Friedman, Constantine Cannon, Vorys and other firms involved in the case informing them of the situation on Feb. 6. The information came to light during an internal investigation by Willkie into former partner Keila Ravelo, who was arrested on fraud charges in December. Ravelo resigned from Willkie in November after the firm became aware she was being investigated by the U.S. Attorney’s Office for the District of New Jersey, Greiner said in a separate letter.”

And here’s how that letter could play out in court, according to a Reuters post written by Alison Frankel:

“On Friday [Feb. 13] Willkie in-house general counsel Stephen Greiner sent a cryptic letter to U.S. District Judge Margo Brodie of Brooklyn, who oversees the opt-out cases against Visa and MasterCard. The firm, Greiner said, launched an internal investigation when it learned of the government’s allegations against Ravelo. That review, the Willkie letter said, ‘has identified certain documents which we believe raise questions that appropriately should be discussed with the court concerning communications in which Ms. Ravelo was involved relating to this litigation.’ The firm asked for an immediate conference to address the Ravelo communications, warning that the session might have to be held in the judge’s chambers.”

And so the case and the drama in the MasterCard antitrust case continues.

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Editor’s note: A previous version of this article cited that “Stephen Greiner, a partner at Willkie violated a “protective order issued” by a judge. This included alleged “documents and information,” that violates that judge’s order.” This information was incorrectly reported and has been redacted from the story.