Edina, MN: (Mar-11-08) A class action lawsuit was brought against Nash Finch Co., a leading national food distributor, alleging securities fraud. The lawsuit stated that the suit was filed after the Edina based food distributor issued revised earnings guidance on Oct. 20, 2005. The lawsuit also claimed, over other things, the public statements which the company made about its acquisition of certain assets from Roundy's Supermarkets, Inc.
As part of a settlement reached, Nash Finch agreed to pay $6.75 million into a fund that will be distributed to members of a class of persons who purchased stock between Feb. 24, 2005 and Oct. 20, 2005. The settlement will be funded in full by the company's insurance coverage. The company stated that the settlement was not an admission of liability, but was an effort to avoid the costs and risks of litigation. [
