Visa 2011 Annual Report Download - page 137

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2011
(in millions, except as noted)
defendant. The court granted the request and Marenco filed the amended complaint on May 6, 2011. The lawsuit alleges that Visa recorded telephone calls to
call center representatives without providing a disclosure that the calls may be recorded, in alleged violation of state law in California and several other states.
On May 31, 2011, the parties executed a settlement agreement in an amount that is not material to Visa's consolidated financial statements. The court granted
preliminary approval of the settlement on July 20, 2011, and set a final approval hearing for November 28, 2011, after the class notice process is complete.
This matter relates to and resolves the previously reported contractual indemnity claim tendered to Visa by a processing client in October 2010.
Korean Fair Trade Commission. Following a complaint lodged by a Visa client, in July 2011 the Korean Fair Trade Commission (KFTC) initiated an
investigation into Visa's requirements for the processing of international transactions over VisaNet. The KFTC has the authority to issue an injunction or fine;
the potential amount of any fine cannot be estimated at this time. Visa is cooperating with the investigation.
U.S. ATM Access Fee Litigation.
National ATM Council class action. On October 12, 2011, the National ATM Council and thirteen non-bank ATM operators filed a class action lawsuit
against Visa (Visa Inc., Visa International Service Association, Visa USA, and Plus System, Inc.) and MasterCard in U.S. District Court for the District of
Columbia. The complaint challenges Visa's rule (and a similar MasterCard rule) that if an ATM operator chooses to charge consumers an access fee for a Visa
or Plus transaction, that fee cannot be greater than the access fee charged for transactions on other networks. The plaintiffs claim that the rule prevents non-
bank ATM operators from attracting customers through lower prices, allegedly in violation of Section 1 of the Sherman Act. The complaint requests
injunctive relief, attorneys' fees, and damages "in an amount not presently known, but which is tens of millions of dollars, prior to trebling."
Consumer class actions. In October 2011, three consumer class actions were filed against Visa and MasterCard in the same federal court challenging
the same ATM access fee rules. One case, Genese, adds three financial institutions as defendants. All three cases purport to represent classes of consumers in
claims brought under Section 1 of the Sherman Act. Stoumbos adds claims under antitrust and/or consumer protection statutes in certain states and the District
of Columbia, and Bartron adds claims on behalf of sub-classes of consumers under such state laws. The consumer suits seek injunctive relief, attorneys' fees,
and treble damages; Bartron and Stoumbos also seek restitution where available under state law.
Note 22—Subsequent Events
On October 18, 2011, the Company's board of directors declared a dividend in the aggregate amount of $0.22 per share of class A common stock
(determined in the case of class B and class C common stock on an as-converted basis). See Note 15—Stockholders' Equity.
On October 26, 2011, the Company's board of directors authorized a $1.0 billion increase to its July 2011 share repurchase program, subject to the same
terms as the existing program. See Note 15—Stockholders' Equity.
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