SOURCE: DirectCash Payments Inc.

DirectCash Payments Inc.

September 21, 2015 08:39 ET

DirectCash Payments Inc. Announces It has Reached Agreement to Settle All Class Action Law Suits

CALGARY, AB--(Marketwired - September 21, 2015) - DirectCash Payments Inc. ("DCPayments" or the "Company") (TSX: DCI) today announced that it has executed a settlement agreement for all the class action lawsuits which have been filed against the Company ("Class Action Law Suits") ("Settlement Agreement"). In addition to settling the Class Action Law Suits that have been filed, DCPayments has also secured a release from claims that may arise as a result of the relationship with The Cash Store Financial Services Inc. and its affiliates ("CSF"). As consideration for the release and settlement of the Class Action Law Suits, DC Payments has agreed to release $7 million of cash security it has been holding from CSF in connection with the Class Action Law Suits and pay an additional $7.5 million (collectively the "Settlement Funds"). The Settlement Funds are to be divided between CSF and each of the Class Action Law Suit plaintiffs.

The details of the Settlement Agreement require Court and stakeholder approval as part of The Cash Store Financial Services Inc.'s Companies' Creditors Arrangement Act process which DC Payments expects to receive late in the fourth quarter.

As part of the settlement, DC Payments has negotiated progressive payment of the Settlement Funds with $2 million being paid into trust commensurate with execution of the Settlement Agreement, a further $10 million becoming payable once Court and stakeholder approval is obtained and the final $2.5 million being paid in the second quarter of 2016.

Management's Commentary

"We are pleased to have reached an agreement with the various stakeholders to settle these lawsuits. We believe the settlement agreement delivers significant value to DC Payments by allowing us to concentrate on our strategic growth plans and avoiding the distraction and expense of defending these and any future claims," said Jeffrey Smith, DCPayments' President and Chief Executive Officer.

Additional information about DCPayments is available on SEDAR (www.sedar.com) or DCPayments' website at www.directcash.net.

Contact Information

  • For further information please contact:

    Jeffrey J. Smith
    President and CEO
    Direct Telephone: (403) 387-2101
    jeff@directcash.net

    Amanda J. Gallacher
    Vice President, Corporate Strategy & Acquisitions
    Direct Telephone: (403) 387-2158
    Fax: (403) 451-3058
    investorrelations@directcash.net