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SETTLEMENT REACHED IN PNM SHAREHOLDER LAWSUITS; 1991 EARNINGS RESTATED

 SETTLEMENT REACHED IN PNM SHAREHOLDER LAWSUITS;
 1991 EARNINGS RESTATED
 ALBUQUERQUE, N.M., March 4 /PRNewswire/ -- Public Service Co. of New Mexico (PNM) (NYSE: PNM) announced that an agreement in principle has been reached, settling all shareholder class action and derivative lawsuits.
 The agreement was reached following extensive discussions among the parties conducted by U.S. Magistrate Harry R. McCue of San Diego. Judge McCue has entered an order confirming the basic agreement among the parties.
 The $33 million settlement, funded by the company's directors' and officers' liability insurance carriers and subject to court approval, would end the pending class action and derivative lawsuits. As part of the settlement, the company would receive $3 million, which would only partially offset litigation related expenses not previously reserved for. As a result, the company will incur a $1.5 million ($.04/share) after tax charge, requiring restatement of 1991 earnings from $.36/share to $.32/share.
 "The agreement in principle is an important step toward closing this chapter of the company's history," said John Ackerman, PNM chairman and president. "The settlement will allow us to intensify our focus on returning the company to financial health and restoring shareholder value."
 -0- 3/4/92
 /CONTACT: Michael Temple, 505-848-2210, Sam Brothwell, 505-848-2287, or Pam Lett, 505-848-4673, all of Public Service Co. of New Mexico/
 (PNM) CO: Public Service Co. of New Mexico ST: New Mexico IN: UTI SU:


BB -- DV008 -- 4956 03/04/92 12:25 EST
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Publication:PR Newswire
Date:Mar 4, 1992
Words:242
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