Multi-billion interchange litigation / class actions
Key Questions
What is the status of Visa's multi-billion interchange litigation and class actions?
The MDL/class actions remain unresolved with approximately $3.2B at stake, and no rulings have been issued through May 26. This signals ongoing U.S. litigation drag despite Visa's free cash flow strength.
What does Visa's SEC S-4/A filing entail regarding the Class B exchange?
The filing offers an exchange of Class B shares for Class B-3 and Class C shares tied to the MDL litigation, including a $650M escrow after $4.2B payouts, uncapped makewhole provisions, and potential issuance of 61M B-3 + 24M C shares.
What are the key antitrust developments involving Visa?
A DOJ debit antitrust hearing is scheduled for April 2, 2026, alongside South Africa antitrust issues. Shorts hold $3.213B provisions despite Visa's Q1 earnings beat, highlighting a perceived moat against DOJ actions.
MDL/class ~$3.2B unresolved ($3.2B provisions drag sentiment); SEC S-4/A Class B exchange for B-3/C tied to MDL (escrow $650M post $4.2B payouts, uncapped makewhole, potl 61M B-3 +24M C issuance); DOJ debit antitrust 4/2/26 hearing/SA antitrust; shorts $3.213B provisions vs Q1 beat. No rulings thru 5/26; moat vs DOJ. Signals ongoing U.S. lit drag vs FCF strength.