Mastercard Reaches Agreement to Settle Monetary Damages Related to U.S. Merchant Litigation
18 September 2018 - 8:10PM
Business Wire
Mastercard has reached an agreement to settle monetary damages
claims in the U.S. merchant class-action litigation. The agreement
formalizes prior discussions and has been executed by all of the
defendants – including Mastercard, Visa and a number of banks – and
the court-appointed class counsel for the merchants.
The settlement is an amendment to the financial terms of the
2012 Class Settlement Agreement and will be filed with the court
seeking approval.
“We are taking a significant step toward closing a chapter in a
long-standing case,” said Tim Murphy, general counsel, Mastercard.
“We can put this behind us and focus on continuing to innovate with
our merchant partners to deliver the experience and convenience
that consumers expect.”
In addition to the original 2012 monetary terms, Mastercard’s
share of the financial agreement is an additional $108 million,
which is based upon the allocation of financial responsibility that
was set out in the judgment and settlement sharing agreements that
were executed in February 2011. In total, the defendants have
agreed upon an additional payment of $900 million in the current
agreement.
The company recorded a $210 million charge in its second-quarter
2018 financial statements, which will cover the financial
obligation under this agreement and for estimated liabilities
related to filed and anticipated opt-out merchant cases.
The merchant class-action that seeks the revision of network
rules is not covered by this settlement agreement. That action
remains outstanding while the parties are engaged in settlement
negotiations.
After court approval of the monetary agreement, Mastercard and
its customer financial institutions will receive a release of all
monetary claims alleged by the merchant class members concerning
the company’s interchange and fee structure and merchant acceptance
rules. This release covers all previous, as well as future claims,
for a period of five years after resolution of all appeals.
Forward-Looking Statements
This press release contains forward-looking statements pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical facts may be forward-looking statements. When used in
this Report, the words “believe”, “expect”, “could”, “may”,
“would”, “will”, “trend” and similar words are intended to identify
forward-looking statements. Examples of forward-looking statements
include, but are not limited to, statements that relate to the
Company’s future prospects, developments and business strategies.
Please see a complete discussion of these risk factors in Part I,
Item 1A - Risk Factors of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2017. Our forward-looking
statements speak only as of the date of this Report or as of the
date they are made, and we undertake no obligation to update our
forward-looking statements.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com, is a technology
company in the global payments industry. We operate the world’s
fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. Mastercard products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on Twitter
@MastercardNews, join the discussion on the Beyond the Transaction
Blog and subscribe for the latest news on the Engagement
Bureau.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180918005445/en/
Mastercard CommunicationsJames Issokson,
914-249-6286james.issokson@mastercard.comorSeth Eisen,
914-325-5932seth.eisen@mastercard.com
MasterCard (NYSE:MA)
Historical Stock Chart
From Mar 2024 to Apr 2024
MasterCard (NYSE:MA)
Historical Stock Chart
From Apr 2023 to Apr 2024