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MasterCard and Visa, the credit card giants, announced a $2.75 billion settlement with Discover, relating to a lawsuit it brought over allegations of anti-competitive practices.
Visa will pay $1.89 billion and MasterCard $862.5 million, according to the settlement.
The agreement will also see Morgan Stanley, Discover's former parent company, pay MasterCard $35 million and Visa $65 million.
Joseph Saunders, Visa's chief executive, said: "Resolving this longstanding case on reasonable terms is in the best interest of Visa and our clients, cardholders and shareholders."
Noah Hanft, MasterCard's General Counsel, added: "We believe Discover's lack of success resulted from decisions that created a business model that is not attractive to bank issuers. Nonetheless, we chose to settle this lawsuit to avoid the uncertainty and distraction of a lengthy jury trial."
MasterCard settled a similar lawsuit brought by American Express in June for $1.8 billion. Visa settled that suit in November 2007 for about $2.1 billion.
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