LensCrafters 2006 Annual Report Download - page 159

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS |159 <
defendants breached their fiduciary duties as Directors and/or officers of Cole by causing Cole to
enter into an agreement to be acquired by the Company for US$ 22.50 per share “without having
exposed the company to the marketplace through fair and open negotiations with all potential
bidders and/or an active market check or open auction for sale of the company.” The complaint
sought preliminary and permanent injunctive relief against the merger, rescission of the merger if it
were consummated, and/or damages and other associated relief. This action was voluntarily
dismissed by the plaintiff on January 18, 2006 and is no longer pending. Costs associated with this
Cole class action litigation incurred for the years ended December 31, 2004, 2005 and 2006 were
approximately Euro 84,000, Euro 27,000 and Euro 0, respectively. There were no related amounts
recorded as liabilities reflected in the consolidated balance sheets as of December 31, 2004 and
2005, as the liability was not reasonably estimable and probable.
With respect to the matters specifically disclosed above which management has indicated could
result in a material adverse impact on the Company’s consolidated financial statements,
management believes, based in part on advice from counsel, that no estimate of the range of
possible losses can be made at this time.
The Company is a defendant in various other lawsuits arising in the ordinary course of business. It
is the opinion of the management of the Company that it has meritorious defenses against all such
outstanding claims, which the Company will vigorously pursue, and that the outcome of such
claims, individually or in the aggregate, will not have a material adverse effect on the Company’s
consolidated financial position or results of operations.
16. SUBSEQUENT EVENTS
In February 2007, the Company exercised an option included in the amendment to the term and
revolving credit facility disclosed in Note 8 (d) to extend the maturity date of Tranches B and C to
March 2012.