8-KOther EventsExhibits & Filings

CASEYS GENERAL STORES INC 8-K Report, Corporate Update (May 8, 2009)

Filed May 8, 2009For Securities:CASY

Summary

This Form 8-K filing by Casey's General Stores, Inc. (CASY) on May 8, 2009, reports on the company's agreement to settle two collective and class action lawsuits concerning wage and hour disputes. These lawsuits, brought by current and former assistant managers and non-management employees, generally alleged violations of federal and state wage and hour laws. The company has agreed to a settlement totaling $11.7 million, with its directors and officers insurance carrier contributing $3.0 million of this amount. Casey's will bear the remaining $8.7 million, plus an estimated $400,000 in settlement administration expenses. This settlement will result in a one-time charge of approximately $9.1 million in the fourth quarter of fiscal year 2009, impacting earnings per share by about $0.12. The company expressly denies any liability.

Key Highlights

  • 1Casey's General Stores reached settlement agreements in two class action lawsuits regarding wage and hour disputes.
  • 2The total settlement amount is $11.7 million, inclusive of attorneys' fees and costs.
  • 3The company's directors and officers insurance carrier will cover $3.0 million of the settlement.
  • 4Casey's will record a one-time charge of approximately $9.1 million in Q4 FY2009 related to the settlement.
  • 5The settlement is expected to reduce earnings per share by approximately $0.12.
  • 6The company explicitly denies any liability in connection with the lawsuits.
  • 7A court hearing for the approval of the settlement is scheduled for May 18, 2009.

Frequently Asked Questions

The lawsuits, Kristina Jones et al. v. Casey's General Stores, Inc. and Connie Wineland et al. v. Casey's General Stores, Inc., were collective and class actions brought by current and former assistant managers and non-management store employees. They generally alleged violations of federal and state wage and hour laws, seeking back wages, damages, penalties, and other relief.

The total settlement amount is $11.7 million. Of this, $3.0 million will be paid by the company's directors and officers insurance carrier. Casey's will pay the remaining $8.7 million, plus up to $400,000 in settlement administration expenses. This results in a total charge of approximately $9.1 million to the company.

Casey's General Stores expects to incur a one-time charge of approximately $9.1 million in the fourth quarter of fiscal year 2009. This charge is anticipated to reduce the company's earnings per share from continuing operations by about $0.12.

No, the company expressly denies any and all liability to the plaintiffs in connection with these settlements.