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Darden settles 2 class-action lawsuits for $4 million
Class Action |
2008/01/08 09:56
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Darden Restaurants paid $4 million to settle two class-action lawsuits that had been brought by California employees of Red Lobster and Olive Garden, the Orlando-based company reported in a government regulatory filing late last week.
Settlement of the wage dispute, which was paid out during the company's fiscal second quarter that ended in November, trimmed earnings for the quarter by 2 cents a share, the company reported.
In its quarterly earnings report filed with the U.S. Securities and Exchange Commission, Darden said the class-action suits, alleging wage-and-hour violations, were filed in 2004 involving the Red Lobster restaurants and in January 2007 involving the Olive Garden outlets.
In each case, several restaurants were accused of violating a California law that prohibits restaurant managers from requiring servers and bartenders to make up for cash shortages at the end of their shifts.
Darden has a nationwide policy that prohibits the practice, company spokesman Bob McAdam said. The company admitted no wrongdoing in settling the lawsuits, McAdam said, but decided they were too costly to pursue further in court. The allegations, he added, "are almost impossible to prove one way or the other."
Darden has "redoubled" its management training to ensure compliance with the company's policy, he said. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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