Dollar Financial (DLLR) Announces Settlement of its Litigation with IDLD
Dollar Financial Corp (NASDAQ: DLLR) announced the settlement of its litigation with IDLD, Inc., and the restructure of its We The People business.
On December 19, 2006, the Company settled its litigation with IDLD, Inc., the previous owners of We The People. The Company purchased the We The People business from IDLD, Inc. on March 7, 2005. Subsequent to the purchase, the Company commenced litigation against IDLD, Inc. alleging that the sellers of We The People deliberately concealed certain franchise sales from the Company. The Company also asserted breaches of representations and warranties made by the sellers with respect to a number of undisclosed liabilities and other matters arising from the acquisition. As a result of the settlement, the Company will receive approximately $3.25 million of funds held in escrow from the acquisition of We The People, which will reduce the goodwill recorded in connection with the acquisition.
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