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FRAMINGHAM, Mass.--(BUSINESS WIRE)--Staples, Inc. (Nasdaq: SPLS) announced today that it has reached a settlement in a wage and hour class action lawsuit concerning the alleged misclassification of its California-based assistant store managers. The settlement of $38 million, which is subject to court approval, resolves the allegations and allows Staples to avoid further expense and distraction from litigation that has been ongoing for the past eight years. The company first reported this litigation in its Form 10-Q filing on May 20, 2003 and subsequently reported claims for up to $150 million. The settlement amount includes interest and class counsel’s attorney fees. Settlement documentation is expected to be filed with the Court on November 7, 2007.
Staples believes that its store labor model, which is based on a commitment to fair and respectful treatment of its associates, is fully compliant with applicable California law. Staples admits no wrongdoing in connection with the allegations, which claim that assistant store managers in California were misclassified as exempt from overtime pay. The settlement amount resolves claims for damages spanning a twelve-year period made by attorneys representing a class of more than 1,700 current and former associates.
Staples, Inc. invented the office superstore concept in 1986 and today
is the world's largest office products company. With 74,000 talented
associates, the company is committed to making it easy to buy a wide
range of office products, including supplies, technology, furniture, and
business services. With 2006 sales of $18.2 billion, Staples serves
consumers and businesses ranging from home-based businesses to Fortune
500 companies in 22 countries throughout North and South America, Europe
and Asia. Headquartered outside of Boston, Staples operates more than
1,900 office superstores and also serves its customers through mail
order catalog, e-commerce and contract businesses. More information is
available at www.staples.com.