Summary
Mastercard Inc. (MA) has filed an 8-K disclosing an expected increase to its reserve related to ongoing U.S. merchant class litigation. The company anticipates setting aside an additional $210 million in the second quarter of 2018 to cover monetary damages claims. This reserve accounts for both the established merchant class litigation and any filed or anticipated opt-out merchant cases. This disclosure signals progress in negotiations concerning these legal matters and provides an updated estimate of the potential financial impact.
Key Highlights
- 1Mastercard expects to increase its reserve by an estimated $210 million in Q2 2018.
- 2The reserve increase is related to U.S. merchant class litigation.
- 3The reserve covers both the class action and potential opt-out merchant cases.
- 4This disclosure indicates advancements in negotiations for monetary damages.
- 5The company is providing this update under Regulation FD to ensure fair disclosure.