Visa Inc. To Deposit $600 Mln Into Litigation Escrow Account - Quick Facts

(RTTNews) - Visa Inc. (V) announced the company has decided to deposit $600 million into the litigation escrow account previously established under the 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. The company noted that 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 equivalent amount of the Loss Funds.