16th Oct 2006 07:01
Compass Group PLC16 October 2006 Compass Group PLC 16 October 2006 Announcement in relation to ESS/ES-KO and Supreme (UN) litigation In March 2006, two competing food companies, ES-KO International Inc. andSupreme Foodservice AG, brought US law suits totalling some £600,000,000 againstESS, Compass and various ESS staff, based on allegations relating to ESS'scontracts with the United Nations. The Compass senior management team has been determined to reach an outcome thatwould avoid the uncertainties and costs associated with the litigation. It hastherefore taken the necessary steps for a successful voluntary mediation toresolve this civil litigation. Compass has agreed to a final settlement of all claims against all Compassrelated parties. The terms of the settlement are confidential but the totallegal, professional and related costs associated with investigation, litigationand settlement are below £40,000,000. No legal liability has been admitted. Richard Cousins, CEO, said: "Whilst any claims would have been resolutelydefended, we believe it is in the best interests of the business andshareholders, and good management, to avoid the uncertainties and costsassociated with prolonged litigation. My focus is on the future and thissettlement is a major step in putting the matter behind us. Moreover, I amdetermined to ensure that our reputation for the ethical treatment of clients,suppliers and competitors, over and above any issues of legal liability, isunderlined. I am now seeing through a programme of systems and control changesto ensure that all lessons are learned from this experience. - Ends - Notes to Editors 1 The case would have gone to trial in late 2007 after extensive litigationinvolving several different jurisdictions, many witnesses and considerableexpert evidence. It is likely that there would have been various attacks on theprivileges and immunities of the United Nations. 2. Compass is continuing to offer full cooperation to the authorities that havebeen considering these matters, including the UN. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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