8-KOther Events

CINTAS CORP 8-K Report, Corporate Update (Aug 20, 2009)

Filed August 20, 2009For Securities:CTAS

Summary

Cintas Corporation (CTAS) announced on August 20, 2009, that it has reached a mediated settlement in principle to resolve ongoing litigation, Paul Veliz, et al. v. Cintas Corporation. This settlement, once fully documented and approved by the court, will conclude all claims related to the subject matter of the federal court and arbitrator cases. The process for court approval is anticipated to take several months. Financially, the settlement involves an aggregate cash payment of approximately $24 million. Cintas expects to recognize a one-time charge of about $12 million, net of insurance proceeds and taxes, which translates to an impact of $0.08 per share. This disclosure provides clarity on a significant legal matter and its financial implications for the company.

Key Highlights

  • 1Cintas Corporation has reached a mediated settlement in principle to resolve the Paul Veliz, et al. v. Cintas Corporation litigation.
  • 2The settlement aims to resolve all pending and potential claims related to the subject matter of the federal court and arbitrator cases.
  • 3Full documentation and court approval are required, with the court approval process expected to take several months.
  • 4The aggregate cash payment for the settlement is approximately $24 million.
  • 5Cintas expects to recognize a one-time charge of approximately $12 million, net of insurance proceeds and taxes.
  • 6The financial impact of the settlement is estimated to be $0.08 per share.

Frequently Asked Questions

This filing announces that Cintas Corporation has reached a mediated settlement in principle to resolve a significant piece of litigation, Paul Veliz, et al. v. Cintas Corporation. It also details the expected financial impact of this settlement.

The aggregate cash payment for the settlement is approximately $24 million. Cintas expects to incur a one-time charge of about $12 million after accounting for insurance proceeds and taxes.

The settlement is still in principle and requires full documentation and court approval. Cintas anticipates that the court approval process will take several months to complete.

Cintas expects the one-time charge related to the settlement to reduce earnings per share by approximately $0.08, net of insurance proceeds and taxes.