November 16, 2006
Krispy Kreme Securities Litigation Settlement -- They'll Have to Sell a Lot of Donuts
According to this article, Krispy Kreme has announced a settlement with the lead plaintiffs in a securities class action against the company and the plaintiffs in a pending derivative action, on behalf of all defendants in both cases except the franchisor's former Chairman and CEO. The settlement, which still must be approved by the U.S. District Court for the Middle District of North Carolina, would pay members of the plaintiff class total consideration of about $75 million, with a cash payment of almost $35 million from the insurors for the franchisor's officers and directors, cash payments of $100,000 each from the company's former COO and former CFO, a cash payment of $4 million from the company's outside accounting firm, and common stock and warrants worth nearly $36 million, based on the stock's current market value.
Posted by franchiselawblog at November 16, 2006 10:27 AM