Web.com (WWWW) Settles Lawsuit, Expects to Receive $6 Million

January 18, 2007 10:12 AM EST
In Today's 8-K Filing: Web.com, Inc. (Nasdaq: WWWW) has settled a lawsuit in which it expects to receive $6,000,000, of which it will net approximately $3,600,000.

On January 13, 2007 the Company entered into a memorandum of understanding ("MOU") with its insurance carrier settling the Company's claims against the insurance carrier under an insurance policy for indemnification relating to a case filed against the Company in 2000 and previously settled in 2005. The MOU is subject to the completion by the parties of a definitive written settlement agreement on or before January 23, 2007 and the filing of a stipulation of dismissal in court. After deducting the Company's legal fees in the case, the Company expects the net payment to the Company from the settlement to be approximately $3,600,000, which will be recorded as income from discontinued operations on the Company's financial statements. The remaining terms of the settlement agreement are required to be kept confidential.

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