8-K

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                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

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                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

      Date of Report (Date of Earliest Event Reported): SEPTEMBER 12, 2002


                          HASTINGS ENTERTAINMENT, INC.
             (Exact Name of Registrant as Specified in its Charter)


     TEXAS                         000-24381                    75-1386375
(State or Other
Jurisdiction of                   (Commission                 (IRS Employer
 Incorporation)                   File Number)              Identification No.)


   3601 PLAINS BOULEVARD, SUITE 1, AMARILLO, TEXAS                  79102
     (Address of Principal Executive Offices)                     (Zip Code)

       Registrant's telephone number, including area code: (806) 351-2300


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ITEM 5. OTHER ITEM

In a press release dated September 12, 2002, Hastings Entertainment, Inc. (the
"Company") announced that an agreement in principle has been reached with
respect to the shareholder class action lawsuits filed against the Company in
fiscal 2000. A copy of the press release is filed herewith as Exhibit 99 and
incorporated herein by this reference.


ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

      (c)   Exhibits.

        99    Press release dated September 12, 2002.







                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.


                                HASTINGS ENTERTAINMENT, INC.



                                By: /s/ Dan Crow
                                    --------------------------------------------
                                    Dan Crow
                                    Vice President and Chief Financial Officer
                                    (Principal Financial and Accounting Officer)


Date:  September 12, 2002



                               INDEX TO EXHIBITS



EXHIBIT
NUMBER            DESCRIPTION
- -------           -----------
       
  99      Press release dated September 12, 2002.

EX-99

                                                                      EXHIBIT 99


NEWS RELEASE

HASTINGS                                  CONTACT:  DAN CROW             PR02-87
ENTERTAINMENT, INC.                                 Vice President and
                                                    Chief Financial Officer
                                                    (806) 351-2300, ext. 6000
                                                    www.gohastings.com


HASTINGS ENTERTAINMENT, INC. AGREES TO SETTLE SHAREHOLDER LAWSUITS


AMARILLO, Texas, September 12, 2002--Hastings Entertainment, Inc. (NASDAQ:
HAST), a leading multimedia entertainment superstore retailer, today announced
that an agreement in principle has been reached with respect to the shareholder
class action lawsuits filed against the Company in fiscal 2000.

The settlement, which is subject to execution of a final settlement agreement
and approval by the court, requires a payment of $5.75 million. Amounts
remaining under the Company's director and officer insurance policy after
payment of litigation expenses are expected to cover a substantial portion of
the settlement. The Company estimates that amounts remaining under the policy
after all litigation expenses will be approximately $3.25 million and has
recorded a loss contingency of $2.5 million, or $0.22 per diluted share. The
loss contingency has been recorded in the Company's financial statements as of
July 31, 2002 contained in its Quarterly Report on Form 10-Q to be filed today.
The financial statements will show a loss of $0.14 per diluted share for the
second quarter of fiscal 2002.

"Although we believe there was no merit to the allegations brought by the
Plaintiffs", stated John H. Marmaduke, President and Chief Executive Officer,
"we felt a settlement was in the best interest of our shareholders, especially
considering the amount of time, money and attention management has had to devote
to defending these lawsuits. We are pleased to put an end to this process and
return our focus to running our business."

"While confident of our position in the litigation, the litigation was a
continuing drain on the Company's limited resources, resources that should be
focused on our business," stated Dan Crow, Vice President and Chief Financial
Officer. "In the end, we reluctantly concluded that the interests of the
shareholders and the Company would best be served by settling these claims as it
became apparent there was a risk that estimated legal costs to continue
litigating the matter could have exceeded the settlement amount we were
offered."

"As the potential outcome of the litigation was not determinable and the amount
of loss, if any, could not be estimated, the earnings guidance we had previously
issued on August 21, 2002 did not reflect any cost to Hastings for this
litigation and, in fact, it was only after August 21, 2002 that the Plaintiffs
made a proposal that allowed us to believe a settlement was possible," Crow
continued. "Therefore, we are now lowering our guidance for fiscal year 2002
from a range of $0.60 to $0.65 per diluted share to a range of $0.38 to $0.43
per diluted share to allow for the effect of settling these actions."

Safe Harbor Statement

Certain written and oral statements set forth above or made by Hastings or with
the approval of an authorized executive officer of the company constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Generally, the words "believe," "expect,"
"intend," "anticipate," "project," "will" and similar expressions identify
forward-looking statements, which generally are not historical in nature. All
statements that address guidance for the fiscal year 2002 are based on events
that we expect or anticipate will occur in the future and are forward-looking
statements. Such statements are based upon company




management's current estimates, assumptions and expectations, which are based on
information available at the time of the disclosure, and are subject to a number
of factors and uncertainties, including, but not limited to, our inability to
attain such estimates, assumptions and expectations, a downturn in market
conditions in any industry relating to the products we inventory, sell or rent,
the effects of or changes in economic conditions in the U.S. and or the markets
in which we operate our superstores and whether or not the court approves the
settlement described above, any of which could cause actual results to differ
materially from those described herein. We undertake no obligation to affirm,
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

About Hastings

Founded in 1968, Hastings Entertainment, Inc. is a leading multimedia
entertainment retailer that combines the sale of books, music, software,
periodicals, new and used DVDs, videos and video games with the rental of
videos, DVDs and video games in a superstore format. We currently operate 144
superstores, averaging approximately 20,000 square feet, primarily in small to
medium-sized markets throughout the United States.

Hastings also operates www.gohastings.com, an e-commerce Internet Web site that
makes available to our customers new and used entertainment products and unique,
contemporary gifts and toys. The site features exceptional product and pricing
offers. The Investor Relations section of our Web site contains press releases
and access to filings with the Securities Exchange Commission.