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Settlement reached with McReynolds
4/27/2005
Sodexho announces resolution of US litigation McReynolds versus Sodexho Marriott Services Inc.
Sodexho Alliance announced today that a settlement has been reached in the U.S. class action litigation that had been filed against Sodexho Marriott Services, Inc. now known as Sodexho, Inc. This settlement is subject to approvals by District Court Judge Ellen Huvelle.
Sodexho, Inc. has agreed to resolve this litigation in order to avoid protracted legal proceedings, and without admitting any liability.
Under the terms of the settlement agreement, Sodexho, Inc. has committed to make monetary payments to eligible class members and to pay class attorneys' fees for a total amount of up to 80 million USD. The Company will also continue to promote its diversity programs.
A provision for the settlement, net of taxes, together with associated expenses will be made in closing the financial statements for the period ending 28 February 2005. At prevailing exchange rates, the resulting net exceptional expense for fiscal year 2004-2005 is currently estimated to represent between 20-25% of fiscal year 2004 consolidated net income. This charge takes into account, in addition to the monetary payments, the costs of defense, insurance and existing provisions.
About Sodexho Alliance
Founded in Marseille in 1966 by Chairman and Chief Executive Officer Pierre Bellon, Sodexho Alliance is the world's leading provider of food and management services. With more than 313,000 employees on 24,900 sites in 76 countries, Sodexho Alliance reported consolidated sales of 11.5 billion euros for the fiscal year that ended on August 31, 2004. The Sodexho Alliance share has been listed since 1983 on the Euronext Paris Bourse, where its market value totals 3.9 billion euros. The Sodexho Alliance share has been listed since April 3, 2002, on the New York Stock Exchange.
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding anticipated future events and financial performance with respect to our operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimated" , "project " , "plan" "pro forma," and "intend" or future or conditional verbs such as "will," "would," or "may." Factors that could cause actual results to differ materially from expected results include, but are not limited to, those set forth in our Registration Statement on Form 20-F, as filed with the Securities and Exchange Commission (SEC), the competitive environment in which we operate, changes in general economic conditions and changes in the French, American and/or global financial and/or capital markets. Forward-looking statements represent management 's views as of the date they are made, and we assume no obligation to update any forward-looking statements for actual events occurring after that date. You are cautioned not to place undue reliance on our forward-looking statements.
