Mastercard (MA) To Make Prepayment of $335 Million In Regards To Its Class Action Lawsuit
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As previously disclosed and under a Settlement Agreement, dated as of June 4, 2003, between MasterCard International (NYSE: MA), and a number of U.S. merchants in a class action lawsuit challenging certain aspects of the payment card industry under U.S. federal antitrust law, MasterCard was required to pay $125 million in 2003 and $100 million annually each December from 2004 through 2012 in connection with the settlement of the litigation.
On July 1, 2009, the Company entered into an agreement with the plaintiffs to modify its payment obligations under the Settlement Agreement. Pursuant to the Prepayment Agreement, the Company will make a prepayment of its remaining $400 million in payment obligations at a discounted amount of $335 million on September 30, 2009. The Prepayment Agreement is subject to court approval.
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