Hawaii refused to participate in "Anti-Steering’ Suit" against American Express

According to Bloomberg the state of Hawaii dropped out of a lawsuit accusing American Express Co. of violating federal law by preventing merchants from steering customers to cheaper forms of payment. 

Hawaii dismissed its claim in a filing yesterday in federal court in Brooklyn, New York. The document didn’t state a reason for the action. The U.S. government and 17 states accused American Express, the world’s biggest credit-card issuer by purchases, of violating federal antitrust law. 

“All discovery requests issued by” American Express “are hereby withdrawn,” according to the stipulation agreed to by the company. 

The U.S. government and seven states filed the antitrust suit in October. Other states, including Hawaii, later joined as plaintiffs. The suit also named Visa Inc. and MasterCard Inc., which reached a settlement with the U.S. Justice Department that will let merchants reward consumers for paying with lower-cost credit or debit cards. The settlement hasn’t yet been approved by the court. American Express, based in New York, vowed to fight the suit. 

Hawaii Deputy Attorney General Rodney I. Kimura didn’t immediately reply to an e-mail and phone call left before Honolulu business hours today. Joanna Lambert, a spokeswoman for American Express, didn’t immediately return a call for comment.

Source: Bloomberg