Littlefield Settles Litigation
31 August 2006
AUSTIN, Texas -- (PRESS RELEASE) -- Littlefield Corporation (OTCBB:LTFD) announces that it has settled the Collins litigation. Littlefield will pay to Collins a total of $2,175,000 with an initial payment of $1,025,000 together with 46 monthly payments of $25,000.
This settlement will require an addition to the Company's reserves for legal expenses of approximately $185,000. This expense will be recognized during Q3-2006.
The Collins matter relates to events which took place during the mid-1990s pertaining to video poker. The Company is no longer engaged in video poker in South Carolina and no member of the Company's then senior management or any employee who was in a decision-making capacity is currently employed by the Company. No member of the current senior management was employed by the Company at that time.
Jeffrey L. Minch, President and Chief Executive Officer of Littlefield Corporation, offered the following comments:
"The Collins litigation has been conclusively settled in a manner acceptable to all parties.
The settlement of this matter is a very, very significant development and one that we have been working to resolve for a long, long time. It really harkens the end of the Company's unresolved legal travails and marks the beginning of a new day in the Company's history.
The Company's current management has conclusively quantified the absolute magnitude of its financial challenges related to inherited legal issues and can now calmly and smoothly requite them. From here on out, we can focus exclusively on running the business and growing the Company.
The Company will have no problem meeting its financial obligations under the Settlement Agreement. I appreciate the willingness of the Collins Entertainment Corporation to fashion a pay out plan which provides the Company the ability to meet its obligations and to continue to grow." |
