On February 27, Judge William Orrick heard arguments for the summary judgement phase of the case and took the case under advisement before dismissing damage claims on March 21. At that time, Judge Orrick ruled that the ABA and the bookseller plaintiffs could seek injunctive relief and legal fee costs.
Borders Group President and Chief Executive Officer Greg Josefowicz said, The Company has been completely vindicated in this case. Two very important points to note are that the settlement does not require any change in our business practices, and that the payment to the plaintiffs amounts to a fraction of their legal costs. We have defended our position vigorously from the beginning and are extremely pleased with the outcome of the case. Josefowicz also noted that the settlement allows Borders to avoid anticipated ongoing expenses relating to the suit.
Earnings estimates for 2001 will remain unchanged as a result of this settlement. Earnings in the first quarter of 2001 will be negatively impacted by about $.02 earnings per share. This will be offset with earnings improvements of $.02 per share, primarily in the second quarter of 2001, due to lower future legal costs.
