Cameron Settles Class Action Lawsuitadmin
Cameron’s fourth quarter earnings will include a pre-tax charge of approximately $9.0 million, or $0.05 per share on an after-tax basis, to reflect the anticipated cost of a settlement of a class action lawsuit related to contaminated underground water near a former manufacturing facility in Houston, Texas.
The lawsuit, filed in 2002, related to homeowners’ concerns about the impact on property values from contaminated underground water. Under the terms of the settlement, Cameron will provide homeowners in the affected area with an option to choose a one-time lump sum settlement equal to approximately 3% of the appraised value of their property or a “property protection program” that will reimburse them when the value of their home, in the event of a sale during the remediation process, is determined to be lower than that of similar properties in similar neighborhoods.
Cameron Chairman and Chief Executive Officer Sheldon R. Erikson said, “Over the years, we have worked closely with the appropriate regulatory authorities to address these issues, which we originally discovered and reported to them in 2001, and we have advised residents by direct contact, through public meetings and via a related website of our testing and monitoring results and have worked with a number of homeowners to preserve their homes’ values. We are pleased to have reached this settlement working with the homeowners’ representatives.”
Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.
This release includes forward-looking statements regarding the anticipated cost of this settlement, made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are the Company’s current expectations with respect to this litigation, are based solely on data currently available and are subject to a variety of factors not under the control of the Company.