Central Freight Lines, Inc. (NASDAQ: CENF) has reached an oral agreement in principle to settle the securities class action litigation pending against the company and certain of Central Freight's officers and directors in the United States District Court for the Western District of Texas.
According to a 10-Q filed earlier this week by the company, the agreement also settles two derivative actions arising out of the company's December 2003 IPO, as well as a third derivative action related to the January 30, 2006 announcement of a merger between Central and North American Truck Lines, LLC and Green Acquisition Company.
Jerry Moyes, the owner of North American Truck Lines, LLC and Green Acquisition Company is also both a defendant in the litigation and the former chairman of Central.
The settlement is for $2.6 million, inclusive of fees and expenses, and will be funded from the proceeds of Central's directors' and officers' liability insurance policy.
The Oklahoma Firefighters Pension and Retirement System is the lead plaintiff in the federal securities class action. Schiffrin & Barroway, LLP is lead counsel in that litigation and the Austin based firm of Smith, Robertson, Elliott, Glen, Klein & Bell, L.L.P. is liaison counsel.
Daily Trivia: Defendant Jerry Moyes is the majority investor in the Phoenix Coyotes Hockey Club and a limited partner of the Arizona Diamondbacks. Mr. Moyes is also a a member of the Board of Directors and the retired Chairman and CEO of Swift Transportation Co., a company he helped start with a single truck that has grown into the largest truckload fleet operator in the United States.