Nash Finch to Settle Lawsuit
Minneapolis Food wholesaler and retailer Nash Finch said Wednesday that it signed a Stipulation of Settlement, which, if approved by the court, will resolve claims in a fraud class-action suit pending in the United States District Court for the District of Minnesota.
The suit was filed after the company issued revised earnings on Oct. 25, 2005. The suit challenged public statements that the company made about its acquisition of certain assets from Roundy’s Supermarkets. Nash Finch denies it engaged in any wrong-doing.
The settlement states that $6.75 million will be distributed to members of the class. This includes all people who purchased Nash Finch’s common stock between Feb. 24, 2005 (the date the company announced its agreement to acquire certain assets from Roundy’s) and Oct. 20, 2005.
The settlement payment will be funded by Nash Finch’s insurance coverage.
“We believed, and continue to believe, that this case lacks merit and had planned to defend the litigation vigorously,” said Alec Covington, president and CEO, Nash Finch.
“We have agreed to the settlement so that we can eliminate the distraction and expense of further litigation,” he said. “We believe that our shareholders are best served with this matter behind us, and our attention can now be focused on our business and the implementation of our strategic plan, Operation Fresh Start.”
Designed to sharpen the company’s focus and support growth initiatives, Operation Fresh Start will feature new retail formats, emphasis on supply chain services and key categories, as well as integrated services, including IT support, accounting, finance, human resources and legal.
Blue Nile cfo steps down
SEATTLE Blue Nile has announced that Robin Easton has resigned from the role of cfo to pursue other interests, effective March 31. The company said it has begun a search to fill the cfo position.
Upon Easton’s resignation, Terri Maupin, the company’s vp of finance and controller, will assume the duties of the principal financial and accounting officer. Maupin has served as the company’s vp of finance since July 2004 and controller since September 2003. Prior to Blue Nile, Maupin served as the staff vp of finance and controller at Alaska Air Group.
MGP Ingredients ceo resigns
ATCHISON, Kan. Ladd Seaberg has announced that he is stepping down as ceo of MGP Ingredients, effective immediately. Seaberg will continue to serve as chairman of the board of directors. He is being succeeded as ceo by MGPI President Tim Newkirk, who has also served as coo of the company since May 2006.
“I am very comfortable with the timing of this transition from my role as ceo, and have the utmost confidence in Tim Newkirk’s abilities to lead our company forward,” Seaberg said.
Seaberg became chairman of MGPI’s board in October 2006, succeeding Cloud Cray, who had held the post for 26 years. He has served as ceo of the company since 1988.