Scholastic to settle suit; reduces 2002 earnings
8/1/02 1:24 PM
Source: Reuters

NEW YORK, Aug 1 (Reuters) - Scholastic Corp., the U.S. publisher of the Harry Potter books, said on Thursday it has agreed to settle a lawsuit which will result in a reduction of 2002 earnings by 2 cents per share. It said it will post a $1.2 million non-recurring pre-tax charge in the quarter ended May 31, 2002 to reflect the amount by which the settlement and related legal expenses exceed a $6.7 million liability it established in the 2002 second quarter. The 1995 suit, Scholastic Inc. and Scholastic Productions, Inc. v. Robert Harris and Harris Entertainment, Inc., involved stock appreciation rights allegedly granted to Harris by the company in 1990 in connection with a joint venture formed primarily to produce motion pictures. The $1.2 million charge, which is $800,000 after tax, will decrease Scholastic's 2002 earnings -- announced on July 18 -- from $2.53 to $2.51 per diluted share, said the company, which is the world's largest publisher and distributor of children's books.

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