In a major victory for consumers, a federal jury in the Eastern District of New York returned a verdict in favor of an Illinois class in Moskowitz, et al. v. American Express Company, et al., Case No. 1:19-cv-00566-NGG-SJB. The three-week jury trial concluded with a $6 million compensatory damages award and an additional $6.5 million in punitive damages against American Express under the Illinois Consumer Fraud and Protection Act, sending a powerful message about corporate accountability and anticompetitive conduct.
Bienert Katzman Littrell Williams LLP served as trial counsel for the plaintiffs, classes of consumers from eight states and the District of Columbia, co-leading the case through trial and delivering a result that underscores the skill of the trial team and the inequity of Amex’s conduct.
The Case
The lawsuit challenged Amex’s “anti-steering rules,” which prohibit merchants from offering customers incentives to use lower-cost credit or debit cards. These rules, plaintiffs argued, inflated prices for all consumers, regardless of whether they used an Amex card, by suppressing competition among credit card networks.
The jury found that Illinois plaintiffs successfully proved that Amex engaged in an unfair and deceptive practice in violation of Illinois state law, while it did not find Amex liable for state antitrust violations. It awarded both compensatory and punitive damages, which shows the jury believed Amex acted willfully or intentionally with evil motive or reckless indifference to the rights of others.
The outcome — a $12.5 million total award — is not just a legal win, but a symbolic one that affirms the importance of competitive markets and transparency at the point of sale and that Amex’s conduct had real and measurable consequences for consumers.
“The jury saw the unfairness and inequity of American Express’s practices,” BKLW Partner Whitney Z. Bernstein told Bloomberg Law. “This was an exemplary effort from various legal teams across the country. . . . Thanks to our efforts, we hope to continue to keep Americans safe from discriminatory policies going forward.”
A Trial Team with Proven Courtroom Strength
BKLW’s trial team included partners Thomas H. Bienert, Jr., and Whitney Z. Bernstein and paralegal Toni Thomas. Tom, Whitney, and Toni, along with Partner Alexis Paschedag Federico, are part of the defense team that recently secured a major win for client Timothy Ballard after a Utah judge issued terminating sanctions and dismissed claims against him with prejudice. Of these five cases in which BKLW represents Mr. Ballard, three have now been thrown out by different judges at or near the pleadings stage. Whitney also lead the trial team that scored a complete victory for Elizabeth Flynt, Chairwoman of Hustler and widow of media mogul and First Amendment defender Larry Flynt, in the lawsuit filed against her by Mr. Flynt’s estranged brother regarding Mr. Flynt’s estate.
Our team was focused, collaborative, and trial-ready. From paralegals to partners, everyone played a key role in presenting a clear and persuasive case to the jury. We stood opposite one of the nation’s most prominent law firms and secured a favorable result.
We regularly serve as parachute trial counsel for firms seeking experienced litigators who can integrate quickly and perform under pressure. This case reinforced our ability to deliver results in high-stakes courtroom settings.