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| 2002 News and Press Releases |
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SETTLEMENT ARCHIVED:
Judge Approves Settlement For Concord EFS Unit Lawsuit
Dow Jones Corporate Filings Alert. Thursday, August 8, 2002
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Excerpt: A court approved a settlement between plaintiffs and Concord EFS Inc. (CEFT) over a purported class-action lawsuit that alleged the company's EFS National Bank unit's rates and fee changes were "improper" under Tennessee law. According to Concord's quarterly report filed Thursday with the Securities and Exchange Commission, the court rejected the only objection filed against the settlement. The objector hasn't indicated whether he will appeal, but he has 30 days from the date of final approval to do so. In connection with the settlement, Concord recorded a one-time charge of $20.8 million, or $13.5 million net of taxes, for the three months ended June 30. On May 16, Concord's EFS National Bank unit entered into the settlement in which it admitted no liability. The maximum amount of the credits and payments by EFS National Bank under the settlement would be $37.6 million. Credits and payments would be paid over the course of five years. The recorded charge is less than $37.6 million because the credits and payments are contingent upon merchant retention and submission of claims, the filing Thursday said.
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