Visa Escapes Federal Damages Claims From Cardholders, Merchants

Visa Inc. won’t face damages claims in a lawsuit by cardholders and merchant plaintiffs who allege the payments giant monopolizes the debit card market.

Judge John G. Koeltl of the US District Court for the Southern District of New York, in an opinion docketed Wednesday, granted in part and denied in part Visa’s motion to dismiss, allowing the plaintiffs to pursue only injunctive relief.

The two proposed class actions mirror allegations in a case brought by the Justice Department against Visa last year that is proceeding after a judge denied the company’s motion to dismiss. The cardholder and merchant plaintiffs ...