Dunkin' Brands (DNKN) to Raise Legal Reserve on Bertico Suit, Plans to Appeal Decision
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Price: $42.42 +0.95%
Overall Analyst Rating:
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Dividend Yield: 1.9%
Revenue Growth %: +6.2%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 1.9%
Revenue Growth %: +6.2%
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Dunkin' Brands Group, Inc. (Nasdaq: DNKN) today announced it expects to increase its legal reserve in its current quarter in relation to the Quebec Superior Court's ruling in the Bertico litigation, as referenced in the Company's 8-K filing issued this morning.
The lawsuit was filed in 2003 by a group of Quebec Dunkin' Donuts franchisees against the company on a variety of claims, based on events which occurred 10 to 15 years ago. The Court found for the Plaintiffs and issued a judgment against Dunkin' Brands on Friday, June 22, 2012, in the amount of approximately $C16.4 million, plus costs and interest, representing loss in value of the franchises and lost profits. Dunkin' Brands Group, Inc. had previously reserved $C4 million on its consolidated balance sheet to reflect the Company's estimate of the potential loss which could be incurred in connection with this matter.
Dunkin' Brands strongly disagrees with the decision reached by the Court and believes the damages awarded were unwarranted. Dunkin' Brands is proud of its efforts to support all of its franchisees in Quebec and around the world, and the Company intends to vigorously appeal the decision.
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The lawsuit was filed in 2003 by a group of Quebec Dunkin' Donuts franchisees against the company on a variety of claims, based on events which occurred 10 to 15 years ago. The Court found for the Plaintiffs and issued a judgment against Dunkin' Brands on Friday, June 22, 2012, in the amount of approximately $C16.4 million, plus costs and interest, representing loss in value of the franchises and lost profits. Dunkin' Brands Group, Inc. had previously reserved $C4 million on its consolidated balance sheet to reflect the Company's estimate of the potential loss which could be incurred in connection with this matter.
Dunkin' Brands strongly disagrees with the decision reached by the Court and believes the damages awarded were unwarranted. Dunkin' Brands is proud of its efforts to support all of its franchisees in Quebec and around the world, and the Company intends to vigorously appeal the decision.
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