CANTON, Mass., Oct. 18, 2012 /PRNewswire/ -- LoJack Corporation (NASDAQ GS: LOJN) today announced that it has reached a settlement agreement involving the remaining claims in the two California wage-and-hour class action lawsuits against the Company.
Under the terms of the settlement agreement, which is subject to approval of the Superior Court of California for Los Angeles County, the Company has agreed to pay up to $8.1 million, including plaintiffs' attorneys' potential fees and costs, to resolve all remaining California state class action claims. The Company previously disclosed that it estimated the range of possible loss with respect to the state court case to be between $970,000 and $30 million.
"These legal claims were originally filed in 2006, and plaintiffs asserted claims reaching back to 2002," said Randy L. Ortiz, President and Chief Executive Officer of LoJack. "Since then the cases have involved a significant amount of time and expense on pleadings, motions, depositions, and discovery in various state and federal courts. The cases have also required us to look at employment practices of the distant past rather than focus entirely on our present and continuing commitment to the welfare of our employees, the success of our dealer partners and licensees and the strength of our brand. Though the Company believes that it has substantial legal and factual defenses to the plaintiffs' claims, the Board of Directors and current leadership team determined that a settlement at this time is in the best interest of LoJack and its shareholders.""One of my priorities since joining LoJack in November has been to ensure that as an organization we efficiently address issues distracting the Company from the pursuit of its strategic initiatives and plans for growth," Ortiz continued. "We believe that this settlement agreement is a significant step toward that objective and also protects the strength of our balance sheet and liquidity resources. Equally important, by eliminating the expense and uncertainty associated with continued litigation, the agreement frees us to position the Company for improved long-term financial performance and expansion of its business opportunities."
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