MasterCard Sets Aside $500 Million for Lawsuits

MasterCard (NYSE:MA) CEO Ajaypal Banga — during the company’s earnings conference call — updated the status of the price-fixing class-action suit pending against MasterCard (NYSE:MA) and Visa (NYSE:V).

While there has been progress with the individual merchant plaintiffs, that is not the case with class plaintiffs who have made a “significantly higher demand, which are unacceptable to MasterCard (NYSE:MA).”

However, “based on developments in the mediation process, MasterCard has extrapolated an estimate of a reasonably possible loss of at least $500 million if there is a negotiated settlement with all plaintiffs.”

Here’s how credit card companies are trading:

  • Mastercard Incorporated (NYSE:MA): The shares recently traded at $366.59, up $8.93, or 2.5%. Its market capitalization is $46.58 billion. They have traded in a 52-week range of $215.00 to $367.99. Volume today was 1,427,178 shares versus a 3-month average volume of 1,607,850 shares. The company’s trailing P/E is 22.72, while trailing earnings are $16.14 per share. The company pays a dividend of $0.60 per share for a dividend yield of 0.20%. About the company: MasterCard, Inc. is a global payment solutions company that provides a variety of services in support of the credit, debit and related payment programs of financial institutions. The Company offers transaction processing services for credit and debit cards, electronic cash, automated teller machines, and travelers checks. Get the most recent company news and stock data here >>
  • Visa, Inc. (NYSE:V): The shares recently traded at $93.18, up $1.68, or 1.84%. Its market capitalization is $63.98 billion. They have traded in a 52-week range of $66.50 to $95.87. Volume today was 4,495,207 shares versus a 3-month average volume of 6,009,340 shares. The company’s trailing P/E is 17.53, while trailing earnings are $5.32 per share. The company pays a dividend of $0.88 per share for a dividend yield of 1.00%. About the company: Visa Inc. operates a retail electronic payments network and manages global financial services. The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. Get the most recent company news and stock data here >>
  • Capital One Financial Corp. (NYSE:COF): The shares recently traded at $,. Its market capitalization is $. They have traded in a 52-week range of $ to $. Volume today was shares versus a 3-month average volume of shares. The company’s trailing P/E is , while trailing earnings are $ per share. The company pays a dividend of $ per share for a dividend yield of %. About the company: Capital One Financial Corporation is a diversified bank. The Bank, through its subsidiaries, offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients both domestically and internationally. Capital One has bank locations in Connecticut, Louisiana, New Jersey, New York, and Texas. Get the most recent company news and stock data here >>
  • American Express Company (NYSE:AXP): The shares recently traded at $51.68, up $1.36, or 2.7%. Its market capitalization is $60.41 billion. They have traded in a 52-week range of $41.25 to $53.80. Volume today was 7,539,327 shares versus a 3-month average volume of 10,038,200 shares. The company’s trailing P/E is 12.95, while trailing earnings are $3.99 per share. The company pays a dividend of $0.72 per share for a dividend yield of 1.50%. About the company: American Express Company is a global payment and travel company. The Company’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. Get the most recent company news and stock data here >>