American Express Gift Card Class Action Lawsuit Settlement

American Express has reached a class action lawsuit settlement over claims the company failed to notify consumers about the full terms and conditions of its gift cards. If you purchased, received, held or used an American Express gift card between January 1, 2002, and October 15, 2013, you may be eligible to claim a number of cash awards, up to a maximum of $40. The class action settlement even provides benefits to non-Class Members, including a refund of the unused balance of their gift card at no cost.

Following mediation, the parties agreed to a settlement in the class action lawsuit Kaufman v. American Express that alleges American Express engaged in deceptive marketing and sales practices. American Express has denied all allegations of wrongdoing but agreed to settle the class action lawsuit to avoid the burden, expense and uncertainty of continuing litigation.

The plaintiffs filed the American Express gift card class action lawsuit in 2009, alleging that American Express failed to notify purchasers of the full terms and conditions applicable to its gift cards, specifically in regard to significant and material limitations on the use of the American Express gift cards. They allege that this failure caused consumers’ to be unable to utilize the full value of the gift cards because merchants either could not or refused to process split tender transactions (use of two forms of payment). Further, they allege that American Express improperly applied fees against the available gift card funds.

Class Members include all purchasers, recipients, holders and users of any gift cards issued by American Express from January 1, 2002, until September 21, 2011.

Under the terms of the American Express gift card settlement, Class Members can claim the following:

• Class Members who unsuccessfully tried a split-tender transaction can get up to $20.
• Those who incurred monthly fees can get up to $8.
• Those who paid a check issuance fee can get up to $5.

A Class Member can claim one or all of these amounts, but no Class Member may get more than $20 per gift card or $40 total. Those who incurred a monthly fee or check issuance fee after unsuccessfully trying a split-tender transaction, but who do not know their American Express gift card number, can get a total of $5.

All Class Members will be able to buy a new $100 gift card without paying any purchase fee (typically $3.95) or shipping/handling fee (typically $5.95). The class action settlement also offers anyone (even a non-Class Member) who has an American Express gift card, or a gift card number without the actual card, with a value of $25 or less a refund of the unused balance at no cost.

Who’s Eligible

If you purchased, received, held or used an American Express gift card between January 1, 2002, and October 15, 2013, you may be eligible to claim a number of cash awards, up to a maximum of $40.

Potential Award

Up to $40 cash, the ability to purchase a $100 gift card without paying fees, and/or a refund of the unused balance (under $25) at no cost.

Claim Form

Claim Forms can be submitted online at www.kaufmanclassactionsettlement.com or to the following address:

Kaufman Class Action Settlement Administrator
P.O. Box 8015
Faribault, MN 55021-9415

Claim Form Deadline

11/16/2015

Case Name

Kaufman v. American Express Travel Related Services Inc., Case No. 7-cv-0177, U.S. District Court, Northern District of Illinois, Eastern Division

Final Hearing

1/22/2016

Settlement Website

www.kaufmanclassactionsettlement.com

Claims Administrator

Rust Consulting
P.O. Box 8015
Faribault, MN 55021-9415
1-866-680-3343

Class Counsel

Phillip A. Bock
Richard J. Doherty
James M. Smith
BOCK & HATCH LLC

Defense Counsel

Stephen J. Newman, Esq.
STROOCK & STROOCK & LAVAN LLP

UPDATE: On Nov. 14, 2014, a federal judge ordered the parties to vet the documents they have filed under seal to ensure they comply with the law, or else she will open up the record to public viewing. The parties have until Dec. 1, 2014 to comply with the judge’s order. This action may mean the judge will soon give final approval to the American Express gift card settlement and pave the way for Class Members who filed claims to receive payment.

UPDATE 2: The deadline to file a claim for the American Express gift card class action settlement is now Nov. 16, 2015.

UPDATE 3: The Court granted final approval of the settlement on Mar. 8, 2016. Appeals of the settlement have been filed. Claims will not be paid out until the appeals are resolved.

UPDATE 4: The final appeal to the American Express gift card class action settlement was dismissed on April 4, 2018.  It is not known how quickly claims will be paid. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

UPDATE 5: On May 21, 2018, Top Class Actions viewers started receiving $25 checks in the mail from the American Express gift card class action settlement.