NEW YORK (TheStreet) -- Shares of MasterCard (MA) - Get Report are falling 1.66% to $90.60 late Thursday morning as a federal appeals court voided a $7.25 billion antitrust settlement involving the Purchase, NY-based company, Visa (V) and millions of retailers over credit card fees, Reuters reports.
The second U.S. Circuit Court of Appeals in New York said some of the retailers were not adequately represented in the case. The court also decertified the case as a class action.
"We are disappointed by today's ruling," a spokesman for MasterCard said in a statement to Bloomberg, "We believe we presented a clear case to the court that the settlement was fair and appropriate based on more than four years of negotiation and the close involvement of the district court. We are reviewing the decision to determine our next steps."
The settlement was aimed at resolving nearly 10 years of litigation over whether Visa and MasterCard improperly fixed fees that merchants were charged when customers used credit or debit cards, Reuters said.
Shares of Visa are retreating 2.06% to $75.16 late this morning.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on MasterCard stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations.
The team also believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MA