Visa (V) Moves $1.565B into Litigation Escrow Account
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Visa Inc. (NYSE: V) has decided to deposit $1.565 billion into the litigation escrow account previously established under the Company's retrospective responsibility 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 – is correspondingly adjusted via a reduction in the Class B shareholders' as-converted share count. This has the same effect on earnings per share as repurchasing the Company's class A common stock, by reducing the as-converted class B common stock share count.
The Company will make this deposit by using funds previously allocated to its current $2 billion class A repurchase program, which was announced on July 27 and October 26, 2011, and which will exhaust all funds available under that program. The deposit of the Loss Funds will be conducted in accordance with the Company's certificate of incorporation currently in effect.
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 – is correspondingly adjusted via a reduction in the Class B shareholders' as-converted share count. This has the same effect on earnings per share as repurchasing the Company's class A common stock, by reducing the as-converted class B common stock share count.
The Company will make this deposit by using funds previously allocated to its current $2 billion class A repurchase program, which was announced on July 27 and October 26, 2011, and which will exhaust all funds available under that program. 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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