Albertsons 2008 Annual Report Download - page 23

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In August 2004, a complaint was filed, later certified as a class action, in California Superior Court in and for the
County of San Diego (Sally Wilcox and Dennis Taber. v. Albertson’s, Inc.), alleging that Albertsons failed to pay
wages for time worked during meal breaks to its non-exempt employees employed in key carrier positions. The
lawsuit further alleges that Albertsons failed to provide itemized wage statements as required by California law
and that Albertsons failed to timely pay wages of terminated or resigned employees as required by California
law. The lawsuit further alleges a violation of the California Unfair Competition Law, Business and Professions
Code. The lawsuit seeks recovery of all wages, compensation and penalties owed the members of the class
certified, including compensation of one hour of pay for rest or meal period violations and wages for all time
worked while employees were clocked out for meal periods or required to remain on the premises during meal
periods. The lawsuit further seeks to recover all past due compensation and penalties for failure to provide
accurate itemized wage statements and to pay all wages due at time of termination for members of the class
certified with interest from August 6, 2000 to the time of trial. In December 2007, the parties agreed to settle this
matter, subject to Court approval. Based on the terms of settlement agreed to by the parties, the Company does
not expect that the ultimate resolution of this lawsuit will have a material adverse effect on the Company’s
financial condition, results of operations or cash flows.
In Jonathan Johnson v. SUPERVALU INC. and Richfoods, Inc. (Circuit Court for the City of Richmond, VA) a
lawsuit filed in 2004 by the owner of Market Place Holdings, a five-store grocery store chain, Mr. Johnson
alleged that he suffered various medical problems and financial losses resulting from the Company’s alleged
wrongful conduct. On June 6, 2007, a jury awarded Mr. Johnson $0.5 for intentional infliction of emotional
distress and $16 for negligent misrepresentation. Previously, the Company prevailed in an arbitration action
against Market Place Holdings and obtained a $4 judgment against it for unpaid notes and accounts receivable.
The Company believes the jury verdict is contrary to the law and the facts presented at trial, and an appeal is now
before the Virginia Supreme Court. Management does not expect that the ultimate resolution of this lawsuit will
have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
The Company is also involved in routine legal proceedings incidental to its operations. Some of these routine
proceedings involve class allegations, many of which are ultimately dismissed. Management does not expect that
the ultimate resolution of these legal proceedings will have a material adverse effect on the Company’s financial
condition, results of operations or cash flows.
The statements above reflect management’s current expectations based on the information presently available to
the Company. However, predicting the outcomes of claims and litigation and estimating related costs and
exposures involves substantial uncertainties that could cause actual outcomes, costs and exposures to vary
materially from current expectations. In addition, the Company regularly monitors its exposure to the loss
contingencies associated with these matters and may from time to time change its predictions with respect to
outcomes and its estimates with respect to related costs and exposures and believes recorded reserves are
adequate. It is possible that material differences in actual outcomes, costs and exposures relative to current
predictions and estimates, or material changes in such predictions or estimates, could have a material adverse
effect on the Company’s financial condition, results of operations or cash flows.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There was no matter submitted during the fourth quarter of fiscal 2008 to a vote of the security holders of the
Company.
17