Visa Inc., Mastercard and U.S. financial institution defendants have agreed to settle and resolve class claims in the multi-district interchange litigation. The claims were originally brought by a class of U.S. retailers in 2005. The current agreement addresses monetary claims, and does not resolve class claims seeking modifications to network rules.
“After years of thoughtful negotiation, we are pleased to be able to reach this agreement and move forward in our partnership with merchants to provide consumers convenient, reliable, secure ways to pay,” said Kelly Mahon Tullier, executive vice president, general counsel, Visa. “This outcome benefits all parties and enables us to focus more of our resources and attention to building the future of digital commerce together.”
The proposed settlement amount is approximately $6.2 billion. Visa’s share represents approximately $4.1 billion, which will be satisfied through funds previously deposited with the court plus the $600 million Visa deposited into its litigation escrow on June 28, 2018. No additional funds are required for this class settlement. Visa’s share is covered under its U.S. Retrospective Responsibility Plan, which was created to insulate the company and class A shareholders from financial liability for certain litigation cases.
Additional information about this settlement and the U.S. Retrospective Responsibility Plan can be found on Form 8-K filed September 18, 2018 with the U.S. Securities and Exchange Commission and available at www.sec.gov.