| << Back |
| Werner Enterprises Comments on Favorable Settlement of Dispute With CRST |
OMAHA, Neb.--(BUSINESS WIRE)--Aug. 2, 2007--Werner Enterprises, Inc. ("Werner") (NASDAQ:WERN) reported that Werner recently reached a favorable settlement agreement with CRST Van Expedited ("CRST"), a truckload carrier with 1,500 trucks, of a lawsuit filed by CRST against Werner in 2004. A complete copy of the settlement agreement and this news release is available at Werner's website at www.werner.com. In 2004, CRST filed a lawsuit in the state of California alleging Werner should not be allowed to hire two drivers employed by CRST that contacted Werner for employment. CRST stated that these two drivers had previously signed employment contracts with CRST under which these drivers received training benefits in exchange for the drivers' promises to remain employed at CRST for at least one year. Werner was not a party to these employment contracts. The case was dismissed in its entirety in 2004. CRST appealed the decision, and in March of 2007 the Ninth Circuit Court of Appeals partially reversed the trial court's decision and sent the case back to the District Court for trial. The Ninth Circuit's opinion reversing the claim did not decide the validity or merit of CRST's claim, rather the Ninth Circuit merely found that some of CRST's claims met the minimum legal burden of stating a claim. Werner is confident it would have ultimately prevailed in the litigation but would have been required to incur a significant amount of costs for legal fees, management time, and expenses. To avoid costly litigation, Werner agreed to settle this case with the following terms that are favorable to Werner:
1. CRST waived any claims it may have had against Werner for all
CRST drivers hired by Werner during the three years since this
lawsuit was filed.
2. No money was paid in the settlement by either party.
3. In the past three years, Werner obtained a minimal number of
drivers who contacted Werner for employment and were formerly
employed by CRST. Werner believes that this settlement will
have a very minimal impact on its driver hiring.
4. Under the agreement, Werner is free to hire CRST drivers who
have completed their initial 8-month contract period with
CRST. Werner is also free to hire CRST drivers or former CRST
drivers who (1) have had intervening employment with another
company, (2) have been gone from CRST for more than 90 days,
or (3) have paid off the balance of their employment contract
with CRST.
5. CRST agreed to an expedited process for verification of
employment contract status for its drivers who contact Werner
for employment and note employment with CRST in their driving
history.
6. The settlement agreement has been approved by the Court.
Werner trains many drivers every year, which ultimately benefits the drivers, Werner, and the entire trucking industry. Werner does not require the drivers who are trained by Werner to sign employment contracts. Werner Enterprises' common stock trades on The NASDAQ Global Select Market(SM) under the symbol WERN. The Werner website address is www.werner.com. Note: This press release contains forward-looking statements, which are based on information currently available. Actual results could differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2006. The Company assumes no obligation to update any forward-looking statement to the extent it becomes aware that it will not be achieved for any reason.
CONTACT: Werner Enterprises, Inc. |