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Specialty retailer AnnTaylor settles California overtime litigation
01 Mar '06
1 min read
Women's specialty retailer AnnTaylor Stores Corporation announced that it has reached a tentative agreement to settle two previously disclosed putative class action lawsuits related to how the Company classified certain employees under California overtime laws.
The lawsuits are similar to numerous lawsuits filed against retailers and others with operations in California.
While the Company denies the allegations underlying the lawsuits, it has agreed to the tentative settlement to avoid significant legal fees, other expenses and management time that would have to be devoted to protracted litigation.
The settlement, which is subject to final documentation and court approval, will result in a one-time pre-tax charge in the fourth quarter of fiscal 2005 of approximately $6.5 million, or approximately $0.06 per diluted share.
On February 2, 2006, the Company confirmed that it remained comfortable with its previously provided earnings guidance of $1.17 per fully diluted share (on a GAAP basis) for fiscal year 2005.
This guidance excludes the impact of the litigation settlement announced today.
The Company remains comfortable with that guidance, subject to the adjustment for this litigation
settlement.
Ann Taylor is one of the country's leading women's specialty retailers, operating 824 stores in 46 states.
The lawsuits are similar to numerous lawsuits filed against retailers and others with operations in California.
While the Company denies the allegations underlying the lawsuits, it has agreed to the tentative settlement to avoid significant legal fees, other expenses and management time that would have to be devoted to protracted litigation.
The settlement, which is subject to final documentation and court approval, will result in a one-time pre-tax charge in the fourth quarter of fiscal 2005 of approximately $6.5 million, or approximately $0.06 per diluted share.
On February 2, 2006, the Company confirmed that it remained comfortable with its previously provided earnings guidance of $1.17 per fully diluted share (on a GAAP basis) for fiscal year 2005.
This guidance excludes the impact of the litigation settlement announced today.
The Company remains comfortable with that guidance, subject to the adjustment for this litigation
settlement.
Ann Taylor is one of the country's leading women's specialty retailers, operating 824 stores in 46 states.
AnnTaylor Stores Corporation
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