Duane Reade to settle suits

Chain Drug Review, Feb 2, 2009

NEW YORK -- Duane Reade Holdings Inc. has moved to settle two class-action lawsuits involving employee claims of unpaid overtime.

The retailer has agreed to pay $3.5 million to settle the suits.

The company has admitted no liability in the cases (Damassia v. Duane Reade Inc. and Chowdbury v. Duane Reade Inc. and Duane Reade Holdings Inc.).

"While the company believes it can strongly defend against the matters involved in this litigation, it has agreed to this settlement so that it may avoid future defense costs and uncertainty surrounding this litigation," a corporate statement asserts.

The settlement of both cases is subiect to the approval of the U.S. District Court for the Southern District of New York.

As a result of the agreement, Duane Reade plans to record a onetime $3.5 million pretax charge for the fourth quarter ended December 27, 2008.