Nicor Announces Updates on Pending Legal Proceedings.Business Editors NAPERVILLE, Ill.--(BUSINESS WIRE)--April 16, 2004 Nicor Inc. (NYSE NYSE See: New York Stock Exchange :GAS) announced today that its board of directors has approved an agreement to settle the securities class action 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. that has been pending in federal court in Chicago against the company and certain of its officers since the summer of 2002. Under the terms of the agreement, the claims against the company and the company-related defendants will be dismissed without any finding or admission of wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do or liability. The final settlement is contingent
on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress"contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent execution of a formal stipulation An agreement between attorneys that concerns business before a court and is designed to simplify or shorten litigation and save costs. During the course of a civil lawsuit, criminal proceeding, or any other type of litigation, the opposing attorneys may come to an agreement of settlement and court approval. Under the terms of the agreement, the company will pay $38.5 million to the class. The company continues to pursue coverage from its insurance carriers. The company also indicated that while the settlement will have an adverse impact on its first quarter 2004 financial results, it is not expected to have a material adverse impact on the company's liquidity or financial condition. Nicor Gas also announced today that the parties to the company's proceedings before the Illinois Commerce Commission regarding the company's Performance Based Rate Program have agreed to a stay of the hearing scheduled for Monday, April 19, 2004 in order to undertake additional third party discovery. In a separate development, the company was advised by the SEC Division of Enforcement that it intended to recommend to the SEC that it bring a civil injunctive action against the company, alleging that the company violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. Sections 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1 and 13a-13. The SEC may also seek injunctive relief injunctive relief n. a court-ordered act or prohibition against an act or condition which has been requested, and sometimes granted, in a petition to the court for an injunction. , disgorgement Disgorgement A repayment of ill-gotten gains that is imposed on wrongdoers by the courts. Funds that were received through illegal or unethical business transactions are disgorged, or paid back, with interest to those affected by the action. and civil penalties. The SEC staff invited the company to make a formal response (known as a Wells submission) with respect to the proposed recommendation. Background information on the events relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc today's announcements can be found in the company's periodic filings with the Securities and Exchange Commission. Nicor Inc. (NYSE:GAS) is a holding company and is a member of the S&P 500. Its principal businesses are Nicor Gas, one of the nation's largest natural gas distribution companies, and Tropical Shipping, a containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. shipping business serving the Caribbean region. Nicor also owns and has an equity interest in several energy-related businesses. For more information, visit the Nicor Web site at www.nicor.com. Caution Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This document includes certain forward-looking statements about the expectations of Nicor, Inc., its subsidiaries and affiliates. Although Nicor believes these statements are based on reasonable assumptions, actual results may vary materially from stated expectations. Such forward-looking statement may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "expect," "intend," "may," "planned," "potential," "should," "will," "would," "project," "estimate," or similar phrases. Actual results may differ materially from those indicated in the company's forward-looking statements due to the direct or indirect effects of legal contingencies (including litigation) and the resolution of those issues, including the effects of an ICC ICC See: International Chamber of Commerce review, and undue reliance should not be placed on such statements. Other factors that could cause materially different results include, but are not limited to, weather conditions; natural gas and other fuel prices; fair value accounting adjustments; health care cots; insurance costs; legal costs; borrowing needs; interest rates; credit conditions; economic and market conditions; Caribbean tourism; energy conservations; legislative and regulatory actions; tax rulings or audit results; asset sales; significant unplanned capital needs; future mercury-related charges or credits; changes in accounting principles, methods, judgments or estimates; performance of major suppliers and contractors; labor relations; and acts of terrorism. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this release. Nicor undertakes no obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances after the date of this release. |
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