CEC Entertainment, Inc. Announces Settlement of Pending Litigation.Business Editors IRVING, Texas--(BUSINESS WIRE)--Oct. 15, 2003 CEC (Central Electronic Complex) The set of hardware that defines a mainframe, which includes the CPU(s), memory, channels, controllers and power supplies included in the box. Some CECs, such as IBM's Multiprise 2000 and 3000, include data storage devices as well. Entertainment, Inc. (NYSE NYSE See: New York Stock Exchange :CEC) announced today that it has reached a settlement in the class action wage and hour lawsuit entitled Freddy Gavarette, et al. v. CEC Entertainment, Inc. dba Chuck E. Cheese's <noinclude></noinclude> Chuck E. Cheese's is a chain of family entertainment centers. The concept centers around a basic sit-down pizza restaurant, complemented by arcade games, small rides, animatronic characters, and other popular diversions for young , et al, filed in the Superior Court of the State of California on June 2, 2000 in the County of Los Angeles. The settlement, which is subject to court approval, provides that CEC will pay up to $4,250,000 to eligible class members. The settlement payment will also be used to pay the plaintiffs' attorneys fees and costs, and costs to a third party administrator, as well as applicable employer payroll taxes. Mike Magusiak, President said "Recent developments in the case caused us to conclude that it was in the Company's best interest to settle the lawsuit at this time. While we deny all liability, the Company has agreed to the settlement in order to resolve all of the plaintiff's claims without engaging in protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . As a result of the settlement, the Company reported a charge of $4,250,000 in the third quarter of 2003. The Company does not expect a material effect on future earnings as a result of the settlement. It is best to get this behind us and focus on growing our business." Certain statements in this press release, other than historical information, may be considered forward-looking statements, within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, and are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on CEC's operating results, performance or financial condition are its ability to implement its growth strategies, national, regional and local economic conditions affecting the restaurant/entertainment industry, competition within each of the restaurant and entertainment industries, store sales cannibalization can·ni·bal·ize v. can·ni·bal·ized, can·ni·bal·iz·ing, can·ni·bal·iz·es v.tr. 1. To remove serviceable parts from (damaged airplanes, for example) for use in the repair of other equipment of the same , success of its franchise operations, negative publicity, fluctuations in quarterly results of operations, including seasonality, government regulations, weather, school holidays, commodity, insurance and labor costs. CEC Entertainment, Inc. operates a system of 455 Chuck E. Cheese's restaurants in 47 states, of which 404 are owned and operated by the Company. |
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