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Visa (V) Deposited $600 Million Into Litigation Escrow Account

June 28, 2022 4:16 PM EDT

Visa (NYSE: V) said on June 24, 2022, the board of directors of the company authorized the deposit of $600 million into the litigation escrow account previously established under the Company’s U.S. retrospective responsibility plan. Under the terms of the Plan, when the Company funds the U.S. 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 a downward 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 by the deposit amount. The deposit and the adjustment to the class B conversion rate will be conducted in accordance with the Company’s certificate of incorporation currently in effect.



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