looks like we have news on the lawsuit front. i'll try and dig it up... good news before a bad eps report? or has the tide turned?
what does this mean???
Nutrition For Life Settlements -2:Subject To Fedl Ct OK>NFLI
HOUSTON (Dow Jones)--Nutrition for Life International Inc. (NFLI) said
Tuesday it reached two preliminary settlement agreements to resolve the class
action lawsuits filed against the company in 1996.
In a press release, Nutrition for Life said under the first settlement agreement, it
agreed to set aside a reserve fund of between $1.2 million to $1.5 million to be paid
to those who became ''instant executives'' between April 1, 1995 and Jan. 19,
1996.
The company will pay out of the reserve fund an amount equal to the 10%
restocking charge that has been or otherwise would be imposed upon a refund to
them, and refund the amount paid for any unused perishable product that the
distributor has tendered or tenders for refund in an unused condition.
Any amounts left in the reserve fund will be refunded to the company six months
after the final approval of the settlement agreement.
Also under the first settlement agreement, the company agreed that persons who
became instant executives between April 1, 1995 and April 15, 1996 will receive a
product of the company's choice with a retail value equivalent to the face amount of
any expired, unredeemed Order Assurance Program Certificates held by those
persons. The company estimates that the cost of the product and shipping will be
about $800,000.
In a separate agreement, the company agreed to pay up to $2 million to anyone
who purchased the company's common stock or warrants between July 11, 1995
and July 15, 1996 and lost money.
The settlement agreements have been presented to federal court for preliminary
approval and are subject to final federal court approval.
Nutrition For Life International develops, markets and sells nutritional supplements
and other consumer products.
(END) DOW JONES NEWS 02-04-97
8:07 AM
$2 mil for losses amounts to $0.30 per share - not much...
good luck... |
