Connecticut Supreme Court Affirms Confirmation of Punitive Damages Awarded by Arbitration Panel; Vertrue Seeks U.S. Supreme Court Review.STAMFORD, Conn. -- Vertrue Incorporated (Nasdaq: VTRU), a leading consumer services marketing company, will request the U.S. Supreme Court to review a decision against it announced yesterday by the Connecticut Supreme Court The Connecticut Supreme Court, formerly known as the Connecticut Supreme Court of Errors, is the highest court in the U.S. state of Connecticut. It consists of a Chief Justice and six Associate Justices. (the "Court"). The Court refused to set aside, as grossly excessive and inconsistent with due process and public policy, an arbitration panel's award of $5.5 million in punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. and costs even though the arbitrators found that the Company was not liable for any compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. . As previously described in Vertrue's public filings, the arbitration filed by MedVal USA Health Programs, Inc. in September 2000, involved claims of breach of contract, breach of the duty of good faith and fair dealing and violation of the Connecticut Unfair Trade Practices Act ("CUTPA CUTPA Connecticut Unfair Trade Practices Act "). The Company believes that this arbitration award is unjustified and not based on any existing legal precedent. Specifically, the Company challenged the award on a number of grounds, including that it violates a well defined public policy against excessive punitive damage awards, raises constitutional issues and disregards certain legal requirements for a valid award under CUTPA. As a result of the Connecticut Supreme Court's decision, the Company will record a one-time $5.5 million charge ($3.5 million net of tax) or $0.27 per share in the fiscal fourth quarter ending June 30, 2005. Any statements herein regarding the business of the Company that are not historical are "forward looking statements" that are intended to qualify for 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 from liability provided by 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. Forward looking statements include, but are not limited to, any projections of earnings, revenues or other financial items; any statements of the Company's plans, strategies or objectives for future operations; statements regarding future economic conditions or performance; and any statements of belief or expectation. All forward looking statements rely on assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Risks and uncertainties that could affect the Company's future results include general economic and business conditions, the level of demand for the Company's products and services, increased competition and regulatory and legal matters and uncertainties. Additional discussion of these and other factors that could cause actual results to differ from those intended is contained in the Company's most recent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. and Annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. as filed with the SEC. |
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