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Contingencies
9 Months Ended
Oct. 29, 2016
CONTINGENCIES [Abstract]  
Contingencies
CONTINGENCIES
In August 2015, the Company was named as a defendant in a class action filed in the Superior Court for the State of California, County of Ventura. The complaint alleged various violations of California law related to wages, meal periods and wage statements, among other things. In October 2016, the parties agreed in principle on a settlement which the Company expects will be submitted to the Court during the fourth quarter of fiscal 2016. The Company accrued the estimated settlement of approximately $0.5 million during the thirteen weeks ended October 29, 2016, which is included in selling, general and administrative expenses on the accompanying condensed consolidated statements of operations.
In November 2015, the Company was named as a defendant in a putative class action in the U.S. District Court for the Southern District of Alabama. The complaint, and thereafter an amended complaint, alleged that the Company violated the Telephone Consumer Protection Act ("TCPA") by sending unsolicited facsimiles which advertised goods and/or services offered by the Company. The plaintiff sought to represent a nationwide class of all recipients of such unsolicited faxes for the period November 3, 2011 to the present. Plaintiff sought statutory damages of at least $500 per violative fax, plus other non-monetary relief. The parties agreed to mediate the matter which resulted in a settlement in principle. A formal settlement agreement, on a class wide basis, was entered into in late November 2016. Defendants will obtain a release, on a class wide basis, from all members of the settlement class who do not opt out, back to January 2011. The settlement must be approved by the Court, in which case notice will be disseminated to potential class members, who will have an opportunity to opt out of the class or to object to the settlement. Thereafter, the settlement and any objections will be presented to the Court for final approval. Assuming final approval, claims will be submitted, reviewed, and paid as appropriate. It is expected that this process will be concluded during calendar 2017. The Company accrued the estimated settlement of approximately $0.5 million during the thirteen weeks ended October 29, 2016, which is included in selling, general and administrative expenses on the accompanying condensed consolidated statement of operations.
The Company is involved in various legal proceedings in the ordinary course of business. Management cannot presently predict the outcome of these matters, although management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a materially adverse effect on the Company's consolidated financial position, results of operations or cash flows. See discussion of litigation with licensor in Note 11 of this Form 10-Q.