American Express Loses Bid to Arbitrate Merchant Antitrust Suit

American Express Co. failed to convince a federal judge it should be allowed to compel arbitration in a suit claiming the company’s rules prohibit merchants from encouraging shoppers to use cheaper payment cards.

Judge Mary S. McElroy of the US District Court for the District of Rhode Island in a Monday order denied Amex’s motion to compel arbitration in the case, saying its deliberate failure to pay filing fees, after repeated warnings of consequences, is enough to waive its right to arbitration.

McElroy also denied the company’s motion to strike class action allegations, saying Amex didn’t show that the proceeding ...