- Visa (NYSE:V), Mastercard (MA), and U.S. financial institutions agree to settle and resolve class claims in multi-district litigation brought by a class of U.S. retailers in 2005.
- The agreement, an amendment to financial terms of a 2012 class settlement, addresses monetary claims and doesn't resolve class claims seeking modifications to network rules.
- Proposed settlement amount is about $6.2B, which is $900M more than the original settlement.
- Visa's share of the total represents about $4.1B, which will be satisfied through funds previously deposited with the court plus the $600M Visa deposited into its litigation escrow on June 28, 2018. Visa says no additional funds are required for this class settlement.
- The settlement will be filed with the court seeking approval, says Mastercard. In addition to the original 2012 monetary terms, Mastercard's share of the agreement is an additional $108M.
- Mastercard recorded a $210M charge in Q2 2018, which will cover the financial obligation under the agreement for estimated liabilities related to the filed and anticipated opt-out merchant cases.
- MA +0.41%, V +0.09% in premarket trading.
- Previously: Mastercard delivers strong growth again (July 26)
- Previously: Visa Q3 GAAP EPS takes a $600M hit from litigation provision (July 25)