SAN FRANCISCO, Oct 27, 2008 (BUSINESS WIRE) -- Visa Inc. announced today that it has agreed to settle litigation with
Discover Financial Services, originally filed in 2004, for $1.8875
billion, which includes $1.7425 billion from the escrow created under
Visa's retrospective responsibility plan, $80
million from Visa Inc. to obtain releases from MasterCard, and an
additional $65 million which will be refunded by Morgan Stanley under a
separate agreement related to the settlement.
This settlement is subject to approval by Visa's
former U.S. member financial institutions.
"Resolving this longstanding case on
reasonable terms is in the best interest of Visa and our clients,
cardholders and shareholders," said Visa Inc.
CEO and Chairman Joseph W. Saunders.
As previously disclosed, the settlement allocation between defendants
Visa and MasterCard is based primarily on their respective payment card
volumes.
Visa's retrospective responsibility plan was
created at the time of the company's public
offering to address potential liability in certain U.S. litigation
including this case. More information on the plan is available in the
company's Final Prospectus, dated March 18,
2008, at www.sec.gov.
"Visa will continue to focus on providing the superior value and
reliability that our clients and cardholders have come to depend on,"
said Saunders.
About Visa Inc.
Visa Inc. operates the world's largest retail electronic payments
network providing processing services and payment product platforms.
This includes consumer credit, debit, prepaid and commercial payments,
which are offered under the Visa, Visa Electron, Interlink and PLUS
brands. Visa enjoys unsurpassed acceptance around the world, and
Visa/PLUS is one of the world's largest global ATM networks, offering
cash access in local currency in more than 170 countries. For more
information, visit www.corporate.visa.com
Forward Looking Statements
Certain statements contained in this press release are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, which are subject to the "safe harbor" created by
those sections. These statements can be identified by the terms
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project," "should,"
"will" and similar expressions which are intended to identify
forward-looking statements. In addition, any underlying assumptions are
forward-looking statements. Such forward-looking statements include but
are not limited to statements regarding certain of Visa's goals and
expectations with respect to adjusted earnings per share, revenue,
adjusted operating margin, and free cash flow, and the growth rate in
those items, as well as other measures of economic performance.
By their nature, forward-looking statements: (i) speak only as of the
date they are made, (ii) are not guarantees of future performance or
results and (iii) are subject to risks, uncertainties and assumptions
that are difficult to predict or quantify. Therefore, actual results
could differ materially and adversely from those forward-looking
statements as a result of a variety of factors, including all the risks
discussed under the heading "Risk Factors" in our Prospectus dated March
18, 2008, filed with the U.S. Securities and Exchange Commission
pursuant to Rule 424(b)(4) on March 19, 2008. You are cautioned not to
place undue reliance on such statements, which speak only as of the date
of this press release. Unless required to do so under U.S. federal
securities laws or other applicable laws, we do not intend to update or
revise any forward-looking statements.
SOURCE: Visa Inc.
Visa Inc.
Denise Dunckel, 202-419-4113
ddunckel@visa.com