Dick's Sporting Goods Inc agreed to pay up to $15 million to settle a number of class action lawsuits that had alleged a failure to pay overtime and other promised wages, according to a company filing with the U.S. Securities and Exchange
Commission.
The filing said that on Jan. 28, 2011, the company and attorneys for a group of plaintiffs filed a
settlement agreement in the United States District Court for the Western
District of New York to settle Tamara Barrus, et al. v. Dick's Sporting Goods,
et al., and 22 related wage and hour class action lawsuits that have been
pending against the Company and five individual defendants.
The settlement,
which is subject to court approval, covers wage and hour claims under the laws
of 36 states. Under the settlement, the total amount to be paid will depend on
the number of claims that are submitted by class members with a maximum
settlement amount not to exceed $15 million plus interest and taxes.
The
settlement and related fees will result in a pre-tax charge of approximately
$15.5 million ($9.3 million after tax), which will be recorded in the fourth
fiscal quarter in accordance with generally accepted accounting principles.
