Credit Cardholders Sue Capital One in Bid To Block Discover Deal

A proposed class of credit cardholders sued Capital One Financial Corp. in a bid to block its proposed takeover of Discover Financial Services Corp., claiming the $35 billion deal will jack up prices in the credit card market.

The deal would substantially worsen competition in the general credit card market and credit card payment processing market, raising prices and leaving consumers with fewer choices, according to a Monday complaint filed in the US District Court for the Eastern District of Virginia. Discover was also named as a defendant.

The lawsuit comes as banking regulators review the transaction, which would ...