(Reuters) — Discover Financial Services paid Morgan Stanley $775 million to settle claims related to sharing proceeds from an antitrust suit against credit card networks Visa Inc. and MasterCard Inc., according to a regulatory filing Friday.
New York State Supreme Court Justice Barbara Kapnick in January ruled that Discover should give the bank part of its $2.75 billion of winnings from a separate lawsuit Discover filed against Visa and MasterCard.
In that lawsuit, Riverwoods-based Discover accused the rival card networks of harming its business by preventing banks that issue MasterCard and Visa cards from also issuing Discover cards.
Morgan Stanley had argued it was entitled to part of the recovery, citing an agreement under which it spun off Discover in June 2007. The New York-based bank sued Discover the following year.
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