Trimark Holdings Inc. restated its earnings for the second fiscal quarter and six months, reflecting a tentative settlement in a shareholder class-action suit.
The company posted a net income of $ 256,000 (6 cents per share) for the quarter, compared to $ 743,000 (16 cents) in the same quarter last year.
Revenues were $ 8.99 million, compared to $ 5.6 million.
The company has taken a $ 1.2 million charge for the settlement.
Last April, a shareholder brought a suit against the company, chairman Mark Amin, president/chief executive officer Roger Burlage, Johan Wassenaar, Lloyd Grief, Sutro & Co. Inc. and Raymond James & Associates Inc.
Related to public offering
The lawsuit was “seeking damages for alleged federal securities law violations” related to the Trimark’s initial public offering.
The company’s minimum contribution to the settlement would be $ 1.2 million, with a maximum of $ 1.9 million.
According to the company, the total consideration from the defendents will be $ 3.5 million.
Burlage noted that the company and the directors have denied any liability, and that, as the company stated, “The interest of individual defendants in vindicating the company and themselves, must be subordinated to the company’s interest in eliminating the distraction and financial impediments caused by the pendency of the litigation.”