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MASTERCARD SUED FOR ANTITRUST VIOLATIONS & FRAUD
LOS ANGELES, Calif. - May 12, 2003 /Send2Press Newswire/ -- Paycom Billing Services,
Inc. (www.paycom.net), an Internet Payment Service Provider, processing credit
card and check transactions for Internet merchants, filed a multi-million dollar
lawsuit today in Federal Court in Los Angeles against MasterCard International
for antitrust violations, fraud and other issues.
Paycom's suit alleges that MasterCard has established monopolistic rules that
allow it unreasonable discretion to dominate Internet merchants, and it has
exercised this power to illegally impose fines and penalties in the millions of
Former Federal Prosecutors for the US Department of Justice, William McD. Miller
and Richard P. Crane, Jr. of the Los Angeles law firm Musick, Peeler & Garrett
LLP and Dennis M. P. Ehling, filed the lawsuit on behalf of the Plaintiff. Mr.
Crane stated, "A United States Federal District Court has already determined
that MasterCard is a monopoly. MasterCard's continued unfair dealings and the
imposition of baseless fines, penalties and fees on Internet merchants, such as
Paycom, simply prove the abusive control that one finds in a monopoly."
Paycom's Chief Executive Officer, Christopher Mallick, commented "We are in
compliance with MasterCard's rules as a merchant, yet they fine us millions of
dollars. Paycom has been directed to change its entire business structure,
indeed to change the way in which E-commerce works, to comply with additional
rules from MasterCard; rules that MasterCard cannot or will not articulate or
explain." Mallick added, "These rules are unreasonable and demonstrate
MasterCard's intent to continue to economically bully Internet merchants. Paycom
has a responsibility to our employees and our clients. The intent of this
lawsuit is to force MasterCard to treat us and other Internet merchants fairly
and to permit us to operate as any other merchant class. This is a business that
we built on our ability to accept MasterCard, one of the only currencies
available for online shoppers."
The litigation alleges MasterCard violated several Federal and California State
laws including violations of Federal and California State anti-trust laws,
denial of fair procedures, unfair competition, fraud, breach of contract and
breach of implied covenants of good faith and fair dealing, intentional
interference with Paycom's contractual relationships, and intentional and
negligent interference with Paycom's prospective business advantage, and seeks
damages, declaratory and injunctive relief.
Paycom's lawsuit may be found at:
Source of news:
Paycom Billing Services, Inc.
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