Restated Financials

Atlanta, GA: (Sep-26-07) AFC Enterprises (AFCE) brought a lawsuit against Executive Risk Indemnity, its former insurance carrier, over the carrier's attempt to rescind the directors and officers liability policy for the 2003 policy year in which AFCE announced a restatement of its prior years' financial statements. The company announced that a federal court in Atlanta has returned a favorable decision in the lawsuit against its former insurance carrier, awarding AFCE $20 million in damages, which represented the full limits of liability of the policy and $4 million in pre-judgment interest. Sources stated that a portion of the award will be paid to the plaintiff class as part of the settlement of the shareholder litigation arising after the announcement of the financial restatement in 2003. This was previously disclosed by AFC in its filings with the Securities and Exchange Commission. After payment of settlement amounts to the plaintiff class, legal expenses and fees, the company expects to receive net proceeds of nearly $10 million. [REUTERS: RESTATED FINANCIALS]

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.
Published on Sep-27-07