AFC Enterprises Settles Suit, Expects $517,000 Charge

<p>AFC Enterprises Inc. entered into a joint settlement agreement with the plaintiffs in the derivative lawsuits for the restatement of some financial results and expects to take a charge of $517,000 for the settlement.</p><p>In a press release, the operator of Popeye's Chicken & Biscuits said the settlement agreement announced Monday relates to the suit filed on June 5, 2003 and August 7, 2003.</p><p>According to AFC, the agreement provides for the general terms of a settlement under which the litigation would be dismissed with prejudice. AFC is to modify some corporate governance practices and pay about $517,000 in attorneys fees and expenses to the derivative plaintiffs' counsel. No damages will be paid by the officer or director defendants.</p><p>AFC said the settlement does not reflect any admission of liability by AFC or its current or former officers or directors.</p><p>As previously reported, AFC has also entered into a settlement agreement, which is subject to court approval, on securities class actions filed against the company. The derivative suits, whose settlement was announced, today represented the last remaining litigation seeking damages from the company or its officers and directors arising out of the restatement of its financial statements, AFC said.</p>

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