A lawsuit settlement of up to $9-million and business falloff resulting from the September 11 terrorist attacks on the United States have added up to earnings losses for Houston-based Eagle Global Logistics (EGL).
EGL said it reached a voluntary settlement with the Equal Employment Opportunity Commission relating to discrimination allegations filed on May 1, 2000 on behalf of eight EGL employees. EGL said it continues to deny the EEOC’s allegations, but entered into the settlement in order to avoid further legal expenses and disruption related to ongoing litigation. EGL said it will pay $3 million by November of this year, with the remaining $6 million of the settlement to be paid only after all appeals have been exhausted.
EGL said the financial terms of that settlement, combined with the business effects of the September 11 attacks, will push its third quarter earnings into the red, with losses in the range of 2- to 5-cents per share.
EGL added that demand for its services – which include air and ocean freight forwarding, customs brokerage, local pickup and delivery service, materials management, warehousing, trade facilitation and procurement, and integrated logistics and supply chain management services – is almost back to normal.