WESTLAKE, Ohio--(BUSINESS WIRE)--
TravelCenters of America LLC (NYSE:TA) today announced that it has
entered a memorandum of understanding to settle a long running, civil,
class action, antitrust case titled Marchbanks
Truck Service, Inc., et al. vs. Comdata Network, Inc., et al.
pending in the U.S. District Court for the Eastern District of
Pennsylvania. In this case, the plaintiffs alleged antitrust violations
arising from Comdata's contractual relations with truck stop operators.
Comdata, its parent company, TA and other chain operators of travel
centers, Pilot Travel Centers LLC and Love's Travel Stop and Country
Stores, Inc., were named as defendants. All of the defendants in this
case have entered settlement memorandums which, if completed, will
result in aggregate payments by all defendants totaling $130 million,
including $10 million to be paid by TA. The settlement by certain other
defendants is expected also to result in certain non-monetary
consideration in the form of changes in Comdata's enforcement of its
contracts, none of which TA believes will be detrimental to TA's
TA determined to enter this settlement in order to avoid the expense and
distraction of this continuing litigation, especially because certain
other defendants determined to settle separately which likely would have
increased TA's costs of continuing litigation. TA expects the $10
million settlement will be recorded as a charge to earnings in the
fourth quarter of 2013.
The settlement described in this press release is not yet consummated.
The terms outlined in the memorandum of understanding that TA has
entered is subject to the parties concluding a definitive settlement
agreement which must be presented to the Court for approval pursuant to
the requirements for settlement of a civil class action.
About TravelCenters of America LLC
TA primarily operates and franchises travel centers under the
"TravelCenters of America", "TA", "Petro Stopping Centers" and "Petro"
brand names that offer diesel and gasoline fueling, restaurants, truck
repair facilities, stores and other services. TA also operates
convenience stores primarily in Kentucky and Tennessee under the brand
name "Minit Mart". TA's nationwide business includes locations in 42
U.S. states and in Canada.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE INCLUDES FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE LITIGATION REFORM ACT OF 1995 AND OTHER
SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON TA'S
CURRENT BELIEFS, EXPECTATIONS, AND INFORMATION BUT THEY ARE NOT
GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR VARIOUS REASONS, INCLUDING
SOME REASONS WHICH ARE BEYOND TA'S CONTROL. FOR EXAMPLE:
THIS PRESS RELEASE STATES THAT TA HAS ENTERED A MEMORANDUM OF
UNDERSTANDING TO SETTLE THE LITIGATION DESCRIBED. AS NOTED ABOVE, THE
FINAL SETTLEMENT OF THIS LITIGATION REQUIRES THAT TA AND THE
PLAINTIFFS' REPRESENTATIVES ENTER A DEFINITIVE SETTLEMENT AGREEMENT
WHICH MUST BE APPROVED BY THE COURT PURSUANT TO THE PROCEDURES FOR
SETTLEMENT OF A CIVIL CLASS ACTION. ALSO, THE MEMORANDUM OF
UNDERSTANDING PROVIDES THAT TA MAY WITHDRAW FROM THE SETTLEMENT IF
CLASS MEMBERS WHO OPT OUT OF THE SETTLEMENT PURSUANT TO PROCEDURES TO
BE ESTABLISHED BY THE COURT REPRESENT MORE THAN 11.5% OF THE TOTAL
NUMBER OF FUEL CARD TRANSACTIONS BY CLASS MEMBERS. FOR THESE REASONS,
AMONG OTHERS, THE PROPOSED SETTLEMENT MAY NOT BE COMPLETED.
THIS PRESS RELEASE STATES THAT TA DETERMINED TO ENTER THIS SETTLEMENT
TO AVOID THE EXPENSE AND DISTRACTIONS OF THIS CONTINUING LITIGATION.
AS NOTED ABOVE, THE SETTLEMENT MAY NOT BE CONSUMMATED, SOME CLASS
MEMBERS MAY DECIDE TO PURSUE SEPARATE LITIGATION AGAINST TA, AND TA
MAY NOT AVOID THE EXPENSE AND DISTRACTION OF CONTINUING LITIGATION.
ALSO, THE LEGAL PROCESS OF SETTLING A CLASS ACTION CAN ITSELF BY
EXPENSIVE AND THIS EXPENSE WILL CONTINUE UNTIL THE PROPOSED SETTLEMENT
THIS PRESS RELEASE STATES THAT TA DOES NOT BELIEVE THAT THE
NON-MONETARY SETTLEMENT TERMS AGREED BY OTHER DEFENDANTS IN THIS
LITIGATION WILL BE DETRIMENTAL TO TA'S BUSINESS. HOWEVER, TA DOES NOT
KNOW WHETHER THE SETTLEMENTS BY OTHER DEFENDANTS WILL BE APPROVED OR
CHANGED, NOR WHAT ACTIONS MAY BE TAKEN BY OTHERS REGARDING THE
NON-MONETARY MATTERS THAT HAVE BEEN AGREED. ACCORDINGLY, TA CANNOT BE
ASSURED OF THE CONSEQUENCES TO TA'S FUTURE BUSINESS WHICH MAY RESULT
FROM SETTLEMENTS BY OTHER DEFENDANTS.
FOR THESE REASONS, AMONG OTHERS, INVESTORS IN TA SECURITIES SHOULD NOT
PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS IN THIS PRESS
EXCEPT AS MAY BE REQUIRED BY APPLICABLE LAW, TA DOES NOT UNDERTAKE ANY
OBLIGATION TO UPDATE FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE AS
A RESULT OF CHANGED CIRCUMSTANCES OR NEW INFORMATION WHICH MAY COME TO
Source: TravelCenters - Financial