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AmEx Faces Another Anti-Steering Suit in California State Court

May 12, 2020, 7:24 PM

American Express Co. must face claims over its anti-steering rules in state court, after a federal district judge in California ruled the company didn’t allege sufficient information to show the court had diversity jurisdiction.

It failed to demonstrate that the owners of an AmEx-accepting laundry service resided in California, and were therefore diverse in citizenship from AmEx itself, which is based in New York, the court said.

Laurelwood Cleaners LLC sued AmEx in Los Angeles state court, alleging provisions in its card acceptance agreements that bar participating merchants from steering customers towards less costly payment options violate state antitrust and...

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