Home Shopping Network Inc. agreed to settle several shareholder lawsuits, forcing the Florida company to take a $ 13 million to $ 16 million charge against its fourth-quarter earnings.
The shopper will pay $ 8.6 million into a fund that will total $ 9.6 million, to settle nine suits filed in Florida that questioned its financial disclosures, it said in a press release sent out late Tuesday.
HSN didn’t disclose where the other $ 1 million would come from, though a number of former HSN officers were named in the suits.
The company also signed an agreement in principal to settle litigation with Roy M. Speer, its former chairman/CEO, and Western Hemisphere Sales Inc., the successor company of a vendor.
Speer will pay HSN $ 2 million and HSN will pay Western $ 4.5 million in exchange for releases and cancellation or acquisition of a 1985 license agreement.
And finally, the company agreed in principal to settle two Delaware suits. All of the settlements still need court approval.