CONTIFINANCIAL CORPORATION BELIEVES NEW YORK COURT CASE WILL HAVE NO EFFECT ON COMPANY'S FINANCIAL POSITION, OPERATIONS.NEW YORK--(BUSINESS WIRE)--July 11, 1996--ContiFinancial Corporation (NYSE NYSE See: New York Stock Exchange :CFN CFN Center for Functional Nanomaterials CFN Companhia Ferroviaria do Nordeste (Brazil) CFN Commercial Fueling Network CFN Conselho Federal de Nutricionistas (Brazil) ) said today that a New York jury's July 3 verdict in a legal action involving Continental Grain Company, one of its subsidiaries and a subsidiary of ContiFinancial will have no effect on ContiFinancial's own operations or on its financial position. According to ContiFinancial, the defendants believe the verdict is completely against the weight of the evidence, contrary to law, and intend to seek to have the verdict overturned either by the trial court or on appeal. A company spokesman noted that no judgment had been entered by the trial court and that the defendants had already moved to set aside the verdict. A New York State Court jury returned the verdict against Continental Grain, ContiTrade Services and ContiFinancial Services, the latter a subsidiary of ContiFinancial Corporation, for $11 million in compensatory and $30 million in punitive damages. This action involved previously discontinued business. Under an indemnity from Continental Grain to ContiFinancial, Continental Grain is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to indemnify ContiFinancial for any loss arising from this 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. . CONTACT: Daryl Natz Public Affairs Department Continental Grain Company (212) 207-5578 or Joseph Kist kist n. Variant of cist2. kist Noun Scot & S African a large wooden chest Kist a chest of money, hence, a store or cache of money, 1619. Edelman Financial (212) 704-8239 |
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