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ANKENY, Iowa -- Casey’s General Stores Inc. agreed to pay a total of $11.7 million and up to an additional $400,000 in related settlement expenses to all alleged plaintiffs, class members and their counsel in two pending class-action lawsuits against the company.
Casey’s entered into agreements with plaintiffs in two alleged collective and class actions pending in the U.S. District Court for the Southern District of Iowa.
The two actions were brought by plaintiffs seeking to represent approximately 7,800 current and former assistant managers, along with approximately 76,000 current and former non-management-level store employees, with respect to wage and hour issues.
The settlement agreements are subject to court approval.
The company’s directors and officers’ insurance company will pay $3 million of the settlement on behalf of all defendants. As a result of the settlements and related expenses, Casey’s expects to incur a one-time pretax charge of approximately $9.1 million in the fourth quarter of fiscal 2009, which will have an impact of roughly 12 cents on earnings per share, the retailer said.
"Resolving this costly and time-consuming litigation is in the best interest of the company and our hard working and valued employees," stated CEO Robert Myers.
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