FCCG News Fog Cutter Capital Group Inc. Announces Dismissal of Appeal and Settlement of Derivative Lawsuit - 2006 Dividend Treatment Also Announced
PORTLAND, Ore.--(BUSINESS WIRE)--Fog Cutter Capital Group Inc. (OTC: FCCG) announced that a settlement
has been reached in the derivative lawsuit initiated by shareholder Jeff
Allan McCoon against the Company’s directors
and others. The settlement has been approved by the Oregon Circuit Court
and the Oregon Court of Appeals has granted Mr. McCoon’s
motion to voluntarily dismiss a pending appeal.
“The conclusion of this matter will allow the
Company’s management and directors to focus on
its business strategy without further distraction and expense,”
stated Andrew Wiederhorn, Fog Cutter’s
Chairman and Chief Executive Officer.
On a separate matter, Fog Cutter Capital Group Inc. has determined that
the Company’s distributions to shareholders
made during 2006 should be classified as “return
of capital” distributions for tax purposes.
During 2006, Fog Cutter made payments to stockholders of $0.13 per share.
The distributions made during 2006 will be reported to the IRS in Box 3
of Form 1099-DIV, “Non-Dividend Distributions.”
Shareholders are encouraged to consult with their tax advisors for
information regarding the specific tax treatment of these distributions.
Fog Cutter Capital Group currently conducts its operations in five
business segments: (1) restaurant operations through its Fatburger
subsidiary; (2) commercial real estate mortgage brokerage operations
through its subsidiary George Elkins Mortgage Banking Company; (3)
manufacturing activities conducted through its DAC International
subsidiary; (4) real estate operations; and (5) software development and
sales conducted through its Centrisoft Corporation subsidiary.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for forward-looking statements so
long as those statements are identified as forward-looking and are
accompanied by meaningful cautionary statements identifying important
factors that could cause actual results to differ materially from those
projected in such statements. All of the statements contained in this
release, which are not identified as historical, should be considered
forward-looking. In connection with certain forward-looking statements
contained in this release and those that may be made in the future by or
on behalf of the company which are identified as forward-looking, the
Company notes that there are various factors that could cause actual
results to differ materially from those set forth in any such
forward-looking statements. Such factors include, but are not limited
to, effectiveness of operating initiatives; success in advertising and
promotional efforts; changes in global and local business and economic
conditions, including their impact on consumer confidence; fluctuations
in interest rates and to a lesser degree currency exchange rates; food,
labor and other operating costs; competition, including pricing and
marketing initiatives and new product offerings by the Company’s
competitors; consumer preferences or perceptions concerning the Company’s
product offerings; spending patterns and demographic trends;
availability of qualified personnel (including restaurant personnel);
severe weather conditions; existence of positive or negative publicity
regarding the Company or its industry generally; the real estate market;
the availability of real estate assets at acceptable prices; the
opportunities in the specialty lending market; the creditworthiness and
default experience of the Company’s
borrowers; the availability of financing; interest rates; European
markets; effects of legal claims or Nasdaq or government investigations;
cost and deployment of capital; changes in future effective tax rates;
changes in governmental regulations; the impact of changes in management
and changes in applicable accounting policies and practices. The
foregoing list of important factors is not all-inclusive. Accordingly,
there can be no assurance that the forward-looking statements contained
in this release will be realized or that actual results will not be
significantly higher or lower. The forward-looking statements have not
been audited by, examined by, or subjected to agreed-upon procedures by
independent accountants, and no third party has independently verified
or reviewed such statements. Readers of this release should consider
these facts in evaluating the information contained herein. The
inclusion of the forward-looking statements contained in this release
should not be regarded as a representation by the company or any other
person that the forward-looking statements contained in this release
will be achieved. In light of the foregoing, readers of this release are
cautioned not to place undue reliance on the forward-looking statements
contained herein.
