Tuesday, July 18, 2006

"MasterCard® CEO Gives Update on Lawsuits" (AP)

Key Points From Shareholder Meeting

  • MasterCard Inc.® Chief Executive Officer, Robert Selander said today the company is closer to resolving the currency conversion lawsuit and has set aside a reserve for that suit.
  • The claims by merchants and other card issuers could take longer to settle.
  • Mr. Selander explained that the newly public company has set aside reserves and "[I]t is a signal that we're pretty confident we're going to be able to put that behind us."
  • According to the AP story, "the two other groups of lawsuits will not likely be resolved soon." The CEO did indicate that settlements are possible and as previously disclosed, the company set aside about $650 million in cash from the June IPO for the lawsuit expenses.

[Source: via AP]