Hastings To Pay $5.75 Million in Shareholder Suit12 Mar, 2003 By: Hive News
Specialty retailer Hastings Entertainment has received final court approval of the settlement with respect to shareholder class action lawsuits, the company announced today.
The settlement requires Hastings and its insurers to pay $5.75 million on behalf of the defendants in the lawsuits. The company recorded a loss contingency of $2.5 million, or $0.22 per diluted share during the second quarter of fiscal 2002, upon reaching an agreement to settle the lawsuits. The remaining $0.1 million was recorded in the fourth quarter of fiscal 2002. The balance of the settlement amount is being funded under the company's director and officer insurance policy.
"We are pleased that these lawsuits have been brought to a close," said president and CEO John H. Marmaduke, "and we are now able to devote all of our time to managing our business."