FURR'S/BISHOP'S ENTERS INTO STIPULATION OF SETTLEMENT
FURR'S/BISHOP'S ENTERS INTO STIPULATION OF SETTLEMENT LUBBOCK, Texas, March 10 /PRNewswire/ -- Furr's/Bishop's, Inc.
(NYSE: CHI), announced today that it has entered into a stipulation of settlement of a purported class action lawsuit filed in August 1991.
The lawsuit alleged certain federal-securities-law and state-law violations arising out of alleged misrepresentations, omissions and failures to disclose material facts in a proxy statement/prospectus issued by the company and Furr's/Bishop's Cafeterias, L.P., dated Feb. 19, 1991. Among other things, the lawsuit charged that the proxy statement/prospectus failed to disclose that a self-tender offer by the company for shares of its Class A common stock discussed in the proxy statement/prospectus was subject to certain conditions. Pursuant to the proposed settlement, which is subject to the approval of the United States District Court for the Northern District of Texas, Furr's/Bishop's has agreed to pay to the class and its counsel an amount not to exceed $460,000. According to Michael J. Levenson, the chairman of the company: "We believe that the company has meritorious defenses to the plaintiff's claims and could have successfully defended itself. We are settling the lawsuit because the cost and management commitment associated with the litigation make settlement at this time in the best interests of the company and its stockholders."
Levenson added: "The self tender offer remains a continuing obligation of the company, subject to the restrictions of Furr's/Bishop's certificate of incorporation."
Furr's/Bishop's is one of the largest operators of cafeterias in the United States with 119 cafeterias in 10 states in the Southwest, West and Midwest under the name "Furr's," 21 cafeterias in seven states in the Midwest under the name "Bishop" and eight specialty restaurants. -0- 3/10/92 /CONTACT: Alton Smith, chief financial officer of Furr's/Bishop's, 806-792-7151/ (CHI) CO: Furr's/Bishop's, Incorporated ST: Texas IN: LEI SU:
TQ -- NY057 -- 6988 03/10/92 15:27 EST
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|Date:||Mar 10, 1992|
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