Visa’s agreements allegedly force debit card issuers into contracts that limit rival networks’ presence, thereby reducing competition and merchant choice, according to the complaint.
Executives Allegedly Misled Investors on Antitrust Risks
Ho’s derivative complaint claims Visa failed to fully disclose its regulatory risks, particularly in its November 16, 2023, annual report. Instead of addressing potential antitrust concerns, Visa provided only generic risk disclosures, stating that the company is “subject to complex and evolving global regulations that could harm our business and financial results.”
For months, Visa continued making similar vague statements, according to Ho, while allegedly engaging in anticompetitive practices that heightened its exposure to legal action.
The lawsuit names Visa CEO Ryan McInerney, Chief Financial Officer Chris Suh, and several company executives and directors as defendants. Ho alleges that during the relevant period, these individuals profited from insider trading, collectively netting $12.6 million.
Stock Price Drop and Investor Losses
The lawsuit claims Visa’s executives allowed the company to overpay for stock repurchases, further damaging shareholders. The truth about Visa’s legal jeopardy, the complaint states, was not revealed until September 23, 2024, when reports surfaced that the DOJ was preparing to file an antitrust lawsuit.
