BENIHANA ANNOUNCES FAVORABLE SUIT SETTLEMENT
BENIHANA ANNOUNCES FAVORABLE SUIT SETTLEMENT MIAMI, Dec. 30 /PRNewswire/ -- Benihana National Corp.
(NASDAQ: BNHN) announced today that a shareholder derivative suit filed two years ago against the company was settled on favorable terms on Dec. 20, 1991.
Under the settlement, the parties to the litigation agreed to accept the major findings and recommendations of a special litigation committee appointed by Benihana National's board of directors. The settlement also provides for the dismissal of the lawsuit with prejudice. The committee was appointed to review the charges brought against Benihana and its directors by the plaintiff shareholders. During its six-month investigation, the committee interviewed all the defendants, as well as those plaintiffs who made themselves available. The committee rejected the shareholders' central charges that Benihana founder and principal shareholder Rocky Aoki and his privately-held corporation, Benihana of Tokyo, improperly profited from their relationship with Benihana National Corp. Counsel for the shareholders accepted the committee's report after concluding there was no evidence that the directors and officers of the company acted other than in good faith and that the committee exercised reasonableness, independence and good faith in the preparation of its findings and recommendations. As part of the settlement, the company agreed to accept certain recommendations of the special litigation committee regarding its future dealings with Benihana of Tokyo, Benihana National's principal stockholder and the originator of the Benihana chain. In this regard, the committee recommended that the company should obtain bids from unrelated companies for all services currently provided by Benihana of Tokyo to the extent such services are not unique to the relationship between the two companies, and that the two companies engage separate counsel in transactions between them. The company also agreed to continue its policy of "zeroing out" intercompany balances with Benihana of Tokyo. "We're happy to dispose of this litigation on positive terms," said Joel Schwartz, Benihana National's president. "We were confident of this outcome. We're ready to move forward." -0- 12/30/91 /CONTACT: Joel Schwartz, president of Benihana National, 305-593-0770; or Zeke Rose of Porter, LeVay & Rose, 212-564-4700, for Benihana National/ (BNHN) CO: Benihana National Corp. ST: Florida IN: LEI SU:
GK-OS -- NY008 -- 2791 12/30/91 09:29 EST
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|Date:||Dec 30, 1991|
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