Women's apparel retailer AnnTaylor Stores ( ANN) said it will take a $6.5 million pretax charge in the most recent fourth quarter to settle two lawsuits related to how the company classified some workers under California's overtime laws. The charge will lower AnnTaylor's earnings by about 6 cents a share. Despite the charge, the company said it's still comfortable with its fiscal year earnings guidance of $1.17 a share. The guidance excludes the impact of the litigation settlement. Analysts surveyed by Thomson First Call expect the company to earn $1.23 a share. AnnTaylor said that while it denies the allegations contained in the lawsuits, it agreed to the settlement to avoid significant legal fees, other expenses and management time that would have to be devoted to any lengthy litigation. The company's shares closed at $36.30 Tuesday.