Aug 27 (Reuters) - Capital One and Discover Financial

Services ( DFS ) are defending their proposed $35 billion merger in a

U.S. court, asking a Virginia judge to dismiss a consumer

lawsuit that claimed the deal will reduce competition and drive

up prices.

Capital One and Discover in a court filing

on Monday said the consumers' allegations were "too contingent

on unknown future events" to be allowed to move ahead while U.S.

antitrust and regulatory bodies were still weighing the merger.

"Their allegations of harm are entirely speculative,

incoherent, uncertain, and not imminent," the companies told the

court.

U.S. District Judge Anthony Trenga in Alexandria federal

court on Tuesday set a hearing for Oct. 16.

Capital One, Discover and attorneys for the plaintiffs did

not immediately respond to requests for comment. The Justice

Department also did not immediately respond to a request for

comment.

Two Capital One customers in Vermont and New Jersey filed

the proposed class action in July, alleging the deal will

violate U.S. antitrust law. The merger would create the biggest

U.S. credit card issuer by balance and sixth-largest U.S. bank

by assets.

U.S. antitrust law allows private civil lawsuits challenging

proposed mergers.

Discover and American Express issue credit cards and run

their own payment processing systems. Visa and Mastercard ( MA ) do not

issue cards, but instead operate the country's largest card

payment networks.

Discover and American Express put pressure on rivals to pay

out rewards to customers to stay competitive, the consumers'

lawsuit said.

In the filing, credit card issuer Capital One said its

planned acquisition of payment network operator Discover,

announced in February, would "inject greater competition" into

the market.

The proposed Capital One purchase of Discover has drawn

calls by some members of Congress for U.S. regulators to block

the deal.

The case is Baker v. Capital One Financial ( COF ), U.S. District

Court for the Eastern District of Virginia, No. 1:24-cv-01265.

For plaintiffs: Brian Dunne and Yavar Bathaee of Bathaee

Dunne

For Capital One: Ryan Shores of Cleary Gottlieb Steen &

Hamilton; John Moran of McGuireWoods; and Ryan McLeod of

Wachtell, Lipton, Rosen & Katz

For Discover: Daniel Richardson and Amanda Davidoff of

Sullivan & Cromwell

Read more:

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merger

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