Checkpoint Systems, Inc. Announces Agreement to Settle Follow-On Class Action Complaints.THOROFARE, N.J. -- Checkpoint Systems, Inc. (NYSE NYSE See: New York Stock Exchange : CKP CKP Checkpoint CKP Crankshaft Position CKP Chandraseniya Kayastha Prabhu (caste of Maharastra, India) CKP Chris Key Players (band) CKP Concept Knowledge Processing ) announced today an agreement in principle to settle the follow-on class action complaints that arose in connection with the ID Security Systems Canada Inc. 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 described in our SEC filings. Subject to the provisions of this settlement agreement, Checkpoint will be 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 pay $1.45 million in cash and provide credits for the purchase of 90 million Model 410 RF Tag vouchers at a retail selling value of $0.035 each. The settlement agreement is subject to various conditions, including, but not limited to court approval. The stipulated class includes certain specified purchasers of Model 410 disposable radio frequency tags from Checkpoint Systems, Inc. during the period of August 2, 1998 through December 31, 2002. "Settling this remaining action was in the best interest of the company and our shareholders. With this resolution, we will avoid the added risks, burden, and costs relating to litigation. Our previously announced financial guidance did not include charges associated with this agreement and should be adjusted accordingly," said George Off, Chairman and Chief Executive Officer of Checkpoint Systems. Checkpoint Systems, Inc. is a multinational manufacturer and marketer of integrated systems solutions for retail security, labeling, and merchandising. Checkpoint is a leading provider of EAS (Electronic Article Surveillance) A security system for preventing theft in retail stores that uses disposable label tags or reusable hard tags attached to the merchandise. and RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. systems, source tagging, hand-held labeling systems, and retail merchandising systems. Applications include automatic identification, retail security and pricing, and promotional labels. Operating directly in 33 countries, Checkpoint has a global network of subsidiaries and provides professional customer service and technical support around the world. Checkpoint Systems, Inc.'s website is located at www.checkpointsystems.com. Safe Harbor Statement This press release may include information that could constitute forward-looking statements made pursuant to the safe harbor provision 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. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the Company's Security and Exchange Commission filings. |
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