AmEx sees up to $500m more in legal losses

 
City A.M. Reporter
Credit card lender American Express has said it may face up to $500m (£310m) of additional losses from lawsuits and governmental examinations on top of the capital it has currently reserved.

AmEx did not name its total liability from legal proceedings but it now estimates a potential loss range of "zero to $500m in excess of the accrued liability (if any) related to those matters," according to its annual report filed with regulators.

Since October, American Express has been fighting a US Justice Department lawsuit over its rules for merchants that take its cards. The company is also defending itself against several merchants' lawsuits, including some related to those rules.

A hearing has been scheduled for March 2 to "to discuss scheduling and coordination" of the Justice Department and merchants' lawsuits, American Express said in the filing.

Since October, the company had participated in mediation efforts to resolve some merchants' lawsuits, but those mediations "have reached impasses," according to the filing.