NEW YORK (TheStreet) -- American Express (AXP)'s emergency request to stop an injunction that requires the company to let merchants steer customers toward lower-cost cards offered by competitors was rejected by a federal appeals court on Tuesday, Reuters reported.
"We are disappointed the request for a stay was denied," American Express stated. "We will move forward to modify the non-discrimination provisions in our merchant contracts, per the trial court's remedy."
In February, U.S. District Judge Nicholas Garaufis said that American Express' anti-steering rules are an unreasonable restraint of trade in violation of the Sherman Antitrust Act, according to Reuters. Additionally, its practices wrongfully exploited its 26.4% share of purchase volume in the U.S. credit card market.
The company argues that enforcing the injunction would "weaken competition and harm consumers" in the $2.4 trillion U.S. credit card industry, according to Reuters.
On Wednesday morning shares are gaining 0.37% to $79.65.
Separately, TheStreet Ratings team rates AMERICAN EXPRESS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN EXPRESS CO (AXP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."