Visa Sues Wal-Mart Over Swipe Fee Claims (V, WMT)
Previously, WMT opted out of the multibillion dollar settlement for the fees that are charged to merchants when customers use credit cards. Out of the 7000 companies that were involved in the lawsuit, many of them dropped out claiming that the terms of the settlement are unfair. WMY made clear to Visa that it could file a separate lawsuit against the company.
After nearly an eight year battle, Visa is now suing Wal-Mart for its constant claims against its fees.
A spokesperson for Walmart, Randy Hargrove said in a statement, “we are disappointed that Visa chose to file this unwarranted and unsupportable lawsuit in retaliation for our decision to opt out and object to an unfair settlement agreement.”
“The proposed settlement would allow credit card companies and big banks to perpetuate a broken system that costs consumers billions of dollars each year.”
Visa’s CEO Charlie Scharf noted, “we remain committed to engaging with Wal-Mart and all merchants to resolve our differences amicably, while seeking new ways to work with our merchant partners and support our mutual growth objectives.”
Visa shares were mostly flat during premarket trading Friday. The stock is up 20% YTD.
Wal-Mart shares were mostly flat during premarket trading Friday. The stock is up 10% YTD.
The Bottom Line
Shares of Visa Inc (V) have a 0.72% yield, based on Thursday’s closing price of $182.25.
Shares of Wal-Mart Stores, Inc. (WMT) have a 2.51% yield, based on Thursday’s closing price of $75.00.
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