Attached files
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| EX-99.1 - NATHANS FAMOUS, INC. | v205961_ex99-1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): December 17,
2010
NATHAN'S FAMOUS,
INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-3189
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11-3166443
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(State
or other jurisdiction
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(Commission
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(IRS
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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One
Jericho Plaza, Jericho, New York
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11753
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code
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(516)
338-8500
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N/A
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|
o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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|
o
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Pre-commencement
communications pursuant to Rule 13e-14(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
8.01
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Other
Events.
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On
December 17, 2010, Nathan’s Famous, Inc. issued a press release regarding a
court ruling received in connection with its pending litigation against its
licensee, SMG, Inc., in the Circuit Court of Cook County, Illinois.
As
previously reported, Nathan’s has been engaged in litigation with SMG regarding
the License Agreement between them. The main issue in the case is
whether Nathan’s is entitled to terminate the License Agreement
early. On December 17, 2010, the Court ruled that Nathan’s is not
entitled to do so. The License Agreement is scheduled to terminate on
March 1, 2014.
The other
issue in the litigation relates to claims made by SMG regarding the manner in
which Nathan’s profited from the sale of its proprietary seasonings to
SMG. As previously reported, the Court granted SMG’s motion for
summary judgment on this issue on October 13, 2010. At that time,
Nathan’s announced that it estimated the damages relating to the seasoning claim
to be between $2.9 Million and $6 Million, and that because it was unable to
determine the actual amount of damages until the hearing on damages occurred,
Nathan’s recorded a litigation accrual in the amount of $2.9 Million before tax
as part of its results for its second quarter ended September 26,
2010. Based on today’s ruling by the Court, Nathan’s estimates the
amount of seasoning damages will be approximately $4.9 Million before
tax. Accordingly, Nathan’s expects to record an additional litigation
accrual of approximately $2 Million in its third quarter ending December 26,
2010.
Although
the Court issued its ruling on December 17, 2010, Nathan’s does not expect final
judgment to be entered by the Court until January 19, 2011.
Nathan’s
is currently evaluating its legal alternatives, including an appeal of the
Court’s ruling.
Nathan’s has issued a press release
with respect to the foregoing. A copy of the press release is filed as Exhibit
99.1 hereto.
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Item
9.01
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Financial
Statements and Exhibits.
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(d)
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Exhibits.
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The following exhibits are filed
herewith:
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Exhibit
No.
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Description
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99.1
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Press
release dated December 17,
2010
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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NATHAN'S
FAMOUS, INC.
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By:
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/s/
Ronald G DeVos
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Ronald
DeVos
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Vice-President
Finance
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and
Chief Financial Officer
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(Principal
Financial and Accounting Officer)
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Dated: December
17, 2010