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WASSERSTEIN PERELLA AND INTERCO SETTLE ETHAN ALLEN SUIT

 WASSERSTEIN PERELLA AND INTERCO SETTLE ETHAN ALLEN SUIT
 NEW YORK, May 8 /PRNewswire/ -- Wasserstein Perella & Co., Inc. today reached an agreement with Interco Incorporated that will settle all claims between them in connection with Interco's 1989 divestiture of its Ethan Allen subsidiary.
 WP & Co. strongly believes that it had no liability to Interco, as stated in its motion for summary judgment dismissing the case, filed in December 1991, which has not yet been decided. The settlement reflects growing concerns as to unpredictability of the outcomes of jury trials, regardless of the merits of the case.
 The settlement, which is subject to approval by the court in which the Interco bankruptcy is pending, calls for WP & Co. to make a settlement payment to Interco of $13.25 million and to reimburse Interco for $5 million in estimated expenses. The Interco suit claimed $109 million plus punitive damages.
 The Ethan Allen lawsuit the parties agree to settle does not relate to WP & Co.'s role as financial advisor to Interco in connection with Interco's 1988 recapitalization. An examiner appointed by the Interco bankruptcy court considered WP & Co.'s role in that matter and concluded that WP & Co. "performed its services in accordance with acceptable standards in the investment banking industry." No claims have been brought against WP & Co. in connection with the Interco recap.
 WP & Co. is pleased to have the Interco matter behind it on this basis given the potential exposure. While it is frustrating and unfair to pay any settlement in this situation, the settlement enables the firm to place all of its management focus on the future of its active businesses.
 -0- 5/8/92
 /CONTACT: Davis Weinstock II of Clark & Weinstock Inc., 212-953-2550, for Wasserstein Perella/
 (ISS) CO: Wasserstein Perella & Co., Inc.; Interco Incorporated ST: New York IN: REA SU:


PS -- NY081 -- 8339 05/08/92 19:52 EDT
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Publication:PR Newswire
Date:May 8, 1992
Words:311
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