Visa 2008 Annual Report Download - page 189

Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2008
(in millions, except as noted)
and debit cards or Diners Club-branded credit cards who used their cards to make a foreign payment transaction between February 10, 1996 and November 8,
2006, the Settlement Damages Class. The court also approved, for settlement purposes only, the "Settlement Injunctive Class," which contains all persons
who held a U.S. issued Visa- or MasterCard-branded credit or debit card or Diners Club-branded credit card as of November 8, 2006. Charge cards are
included in the definition of "credit cards." On November 14, 2006, the plaintiff in one case coordinated with MDL 1409 (Bildstein v. MasterCard
International Incorporated) filed a Notice of Appeal from the grant of preliminary approval.
Notice of the settlement began in 2007. In view of concerns raised by putative class members, the court appointed a special master to work with the
parties to review and amend, as appropriate, the plan for class notice and distribution of the settlement fund and to determine whether the proposed settlement
agreement is fair, adequate and reasonable with respect to all class members. The special master submitted his report on or about July 10, 2007, and
recommended that the plan for notice and distribution of the fund be modified. On August 13, 2007, the court issued an order approving the claims procedure
recommended by the special master. On September 24, 2007, the court issued an order approving the revised notices, claim forms and settlement schedule
submitted by the parties. Revised notices and claim forms will be mailed to identified class members in late November, and a revised publication notice will
run in late November and early December. Class members will have until February 14, 2008 to object to or opt-out of the settlement. The Court moved the
hearing on entry of Final Judgment and Order of Dismissal to March 31, 2008.
Based upon the court's preliminary approval of the MDL 1409 settlement and other developments, approximately $100.1 million and $18.6 million
have been paid into a settlement funds to resolve these claims against Visa U.S.A. and Visa International, and a legal accrual of approximately $1.0 million
has been made for the remainder of the settlement in connection with these currency conversion cases. Should the MDL settlement agreement not receive
final court approval, or otherwise terminate, we anticipate that the parties in all of the Currency Conversion Litigation actions would return to the status quo
ante in their respective actions.
On February 14, 2008, the United States Department of Justice filed an objection on behalf of the United States to the settlement. Among other things,
the objection states that the United States is not a member of the class covered by the settlement. Thus, any claims that the United States may have against
Visa or its member banks relating to foreign transactions will not be released by the settlement. On May 20, 2008 and June 4, 2008, the Department of Justice
submitted letters to the court related to its pending objection.
On March 31, 2008, the court held a hearing on whether to approve the settlement and enter the Final Judgment and Order of Dismissal. The matter
remains under submission.
Morgan Stanley Dean Witter/Discover Litigation
In August 2004, the European Commission in Brussels issued a Statement of Objections against Visa International and Visa Europe alleging a breach of
European competition law. The allegation arises from the Visa International and Visa Europe Rule (bylaw 2.12(b)) that makes certain designated competitors,
including Morgan Stanley Dean Witter/Discover, ineligible for membership. On October 3, 2007, the European Commission fined Visa International and Visa
Europe €10.2 million ($14.5 million) for infringing European Union rules on restrictive business practices (Article 81 of the EC Treaty and
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