Visa tops up litigation escrow account to the tune of $450 million

Source: Visa

Visa Inc. (NYSE:V) today announced it had decided to deposit $450 million (the "Loss Funds") into the litigation escrow account previously established under the Company's retrospective responsibility plan (the "Plan").

Under the terms of the Plan, when the Company funds the litigation escrow account, the value of the Company's Class B shares - which are held exclusively by U.S. financial institutions and their affiliates and successors - are subject to dilution through an adjustment to the conversion rate of the shares of class B common stock to shares of class A common stock. This has the same effect on earnings per share as repurchasing the Company's class A common stock, by reducing the class B conversion rate and consequently the as-converted class A common stock share count. The deposit of the Loss Funds will be conducted in accordance with the Company's certificate of incorporation currently in effect.

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