Legal dividend.Cherokee Inc. is sharing the wealth with its shareholders in announcing a 50-cent special dividend from the proceeds of its arbitration award An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law. from Mossimo Inc. The Van Nuys-based company announced that much of the $6.4 million it received will be distributed to shareholders of record as of May 12. The award stems from a finder's fee Finder's fee A fee a person or company charges for service as an intermediary in a transaction. finder's fee The charge levied by a person or firm for putting together a deal. agreement Cherokee had with Mossimo as of March 28, 2000. Cherokee, which licenses its brand to Target Corp. stores, played a key role in getting Santa Monica-based Mossimo products into Target. As a result, Mossimo agreed to pay out 15 percent of all revenue it receives from Target stores to Cherokee. Russell Riopelle, chief financial officer of Cherokee, said Mossimo paid the royalties for the first year and a half and then stopped paying. After months of lawsuits, arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the and appeals, a Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Superior Court judgment dated June 17, 2003, awarded Cherokee all the withheld finder's fees, full attorneys' fees and 10 percent interest on the withheld finder's fees. In March, the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Supreme Court declined Mossimo's request to review the trial court judgment. Mossimo previously paid some of Cherokee's earlier attorney's fees attorney's fee n. the payment for legal services. It can take several forms: 1) hourly charge, 2) flat fee for the performance of a particular service (like $250 to write a will), 3) contingent fee (such as one-third of the gross recovery, and nothing if there is no ; Cherokee is pursuing another $410,000 related to the appeals process. As for the future finder's fees, which add between $2.5 million and $2.7 million to Cherokee's annual revenues of about $35 million, Riopelle said the proceeds could go toward more quarterly dividends or toward acquisition efforts. |
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