VECTOR GROUP LTD. (NASDAQ:VGR) Files An 8-K Other EventsITEM 8.01. Other Events.
On December 7, 2016 Vector Group Ltd. (NYSE: VGR) and its Liggett Group tobacco subsidiary reached an agreement resolving 124 Engle>progeny tobacco litigation cases pending in Florida. Under the agreement, these individual Engle>plaintiffs are dismissing their claims, with prejudice, against the Company and Liggett.
The Company expects to incur an after-tax charge of approximately $11 million in the fourth quarter of 2016 related to the settlement agreement. to the terms of the agreement, Liggett will pay a total of $17.65 million (including a $14 million lump sum payment paid on December 7, 2016, with the balance payable in four quarterly installments of approximately $981,000 each, beginning in January 2018, including interest at 5% per annum).
Upon dismissal of the settled cases, the Company and Liggett will be defendants in approximately 125 state court Engle>cases.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements, which involve risk and uncertainties. The words “could,” “believe,” “expect,” “estimate,” “may,” “will,” “could,” “plan,” or “continue” and similar expressions are intended to identify forward-looking statements. The Company’s actual results could differ significantly from the results discussed in such forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Current Report on Form 8-K. The Company undertakes no obligation to (and expressly disclaims any obligation to) revise or update any forward-looking statement, whether as a result of new information, subsequent events, or otherwise (except as may be required by law), in order to reflect any event or circumstance which may arise after the date of this Current Report on Form 8-K.
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