Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Visa deposits 500M into litigation fund
NEW YORK (6/3/10)--Visa Inc. deposited $500 million into an account earmarked for litigation costs, a move that acts as a repurchase of class B shares. Credit unions and banks are the sole owners of class B shares. Visa put the funds into the litigation escrow account on Friday, the company said in a press release. The deposit has the effect of a repurchase by the company's more than 6.7 million shares of Class A common stock at roughly $74.22 per share, on an as-converted basis, by reducing the as-converted Class B common stock share count to 136.3 million from nearly 143 million shares. As a result of the deposit, the conversion rate applicable to Class B common stock has decreased to nearly 0.56 cents from more than 0.58 cents. Each class B share is now convertible to 0.56 class A shares. The escrow account had been established previously under the company's retrospective responsibility plan. Visa had set aside $3 billion from its March 2008 initial public offering to cover potential liabilities in lawsuits alleging the company conspired to stifle competition and fix prices, reported Bloomberg Businessweek (June 1). The account provides coverage and potential payments for judgments or settlements in U.S. legal cases and protects its common shareholders from direct losses. Previous deposits to the account included $700 million in July 2009 and $1.1 billion in December 2008.


RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
12 24 ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
12 23 ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
12 23 ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
12 23 ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
12 23 ago