by Christopher Freeburn | September 12, 2012 1:04 pm
Family Dollar (NYSE:FDO) will pay up to $14 million to settle a lawsuit regarding overtime payments to its New York store managers.
The full terms of the settlement agreement are still being negotiated, but the discount chain has capped the total dollar amount it will pay to the 1,700 managers, Fox Business noted.
Shares of Dollar General rose more than 1% in Wednesday afternoon trading.
At that price, the company will have resolved the lawsuit for a lot less than the $35 million it paid in 2009, when 1,400 store managers were involved in a class action lawsuit over similar claims against the chain.
In that case, a court ruled in favor of the managers and ordered Family Dollar to pay damages, back wages and court costs.
The proposed settlement in the current case must still be approved by the court. The company said it will take a charge relating to the settlement in the fiscal fourth quarter of this year.
Last week Dollar General posted second-quarter earnings that topped analysts’ estimates on higher revenue and raised its outlook for the year.
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