Casey’s Settles, Pays Large Fines

Casey’s General Stores Inc., which has 1,200 convenience stores in nine Midwestern states, will pay $11.7 million to settle two class-action wage lawsuits and will record a $9.1 million charge in its fiscal fourth-quarter as a result of the settlement, the Wall Street Journal reported.

 

Some 7,800 current and former assistant managers and about 76,000 current and former non-management-level employees joined forces to sue the chain, alleging they were never paid for overtime work. The employees also claimed they were denied mandatory meal and rest breaks and were asked to perform tasks before and after their shifts.

 

Under the settlement agreement, the company will also pay up to $400,000 in related settlement expenses. The company’s directors and officers insurance company will pay $3 million of the settlement on behalf of the defendants.

 

The settlement is expected to hurt fourth-quarter earnings by about 12 cents a share. Chief Executive Robert Myers told the Wall Street Journal Friday that resolving the “costly and time-consuming litigation” was in the best interest of the company and its employees.

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