LA-Z-BOY INCORPORATED (NYSE:LZB) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k

7 years ago

LA-Z-BOY INCORPORATED (NYSE:LZB) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement

On December21, 2017, La-Z-Boy Incorporated (“we,” “us,” “our” or the “Company”) entered into a settlement agreement and release (the “Settlement Agreement”) with Megdal Associates, LLC, a Pennsylvania limited liability company; Terry Megdal, an individual; Janice Faller, an individual; Dr.William Megdal, individually and as Custodian and/or Power of Attorney for Rachel Rose Megdal, Lydia Camille Megdal, and Miriam Iris Megdal; and Leland Schermer, an individual (collectively, “Megdal”), with respect to the civil lawsuit filed against us over a contract Megdal claimed required us to make payments in respect of certain power units (the “Contract”).

Under the terms of the Settlement Agreement, the parties settled the legal dispute with no admission of liability, wrongdoing or responsibility by any of the parties, released each other from all future and past claims under the contract, including resolving all associated future royalty obligations, and agreed to dismiss all claims with prejudice, and we have agreed to pay Megdal the aggregate sum of $13.5 million which we will pay during the third quarter of fiscal 2018.

The settlement follows a verdict returned against us in fiscal 2016 with respect to the Contract, at which time we recognized an expense of $5.5 million in our consolidated statement of income. Subsequent to the verdict we have accrued an additional $3.9 million of expense related to royalties and interest related to this matter. With the announced settlement, we will recognize an additional charge of $4.1 million in the third quarter of fiscal 2018.

A copy of the Settlement Agreement is filed as Exhibit10.1 to this Current Report on Form8-K and is incorporated herein by reference. The description of the Settlement Agreement in this Item 1.01 does not purport to be a complete description and is qualified in its entirety by reference to the full text of the Settlement Agreement.

Item 9.01 Financial Statements and Exhibits

(d)The following exhibits are furnished as part of this report:

Description
10.1	Confidential Settlement Agreement

EXHIBITINDEX

ExhibitNo.	Description
10.1	Confidential Settlement Agreement

LA-Z-BOY INC ExhibitEX-10.1 2 a17-28864_1ex10d1.htm EX-10.1 Exhibit 10.1 CONFIDENTIAL SETTLEMENT AGREEMENT This CONFIDENTIAL SETTLEMENT AGREEMENT (Confidential Settlement Agreement) is made and entered into on this 21st day of December 2017 (the Effective Date is the date on which the last of the Parties named below executes this Confidential Settlement Agreement) between MEGDAL ASSOCIATES,…To view the full exhibit click here
About LA-Z-BOY INCORPORATED (NYSE:LZB)
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes and retails upholstery furniture products. The Company also imports, distributes and retails accessories and casegoods (wood) furniture products. The Company’s segments include the Upholstery segment, the Casegoods segment and the Retail segment. The Company is the producer of reclining chairs and manufacturer/distributor of residential furniture in the United States. The Company sells its products, primarily in the United States and Canada, as well as internationally, to furniture retailers and directly to consumers through stores that it owns and operates. The Company has a network of approximately 340 La-Z-Boy Furniture Galleries stores and over 560 Comfort Studio locations. The Company owns approximately 120 of the La-Z-Boy Furniture Galleries stores. The Company’s other brands include England, Kincaid, American Drew and Hammary.