InfoGroup amends '08 earnings report

Share this content:

InfoGroup released an amended yearly earnings report to the SEC for 2008, which reduced its total income due to administrative expenses related to shareholder litigation last year.

The company reported operating income for 2008 of $28.2 million, or 4% of net sales, down from $86.5 million, or 13% of net sales, for 2007. The primary reason for the decrease in operating income was the result of $34.3 million in non-recurring charges incurred during 2008 related to a Special Litigation Committee's investigation brought on by a shareholder lawsuit. These charges included $23.6 million in legal expenses and professional fees and $10.7 million in severance payments primarily to former company CEO Vinod Gupta in connection with the lawsuit settlement entered into on August 20, 2008.

Shareholders Cardinal Value Equity Partners and Dolphin Limited Partnership filed the lawsuit in 2007 in Delaware, alleging Gupta had misspent millions of the company's money.

The company also incurred $16.7 million in charges during 2008 for the impairment, write-down and loss on the sale of assets of $11.5 million; facility closure costs of $2 million; and severance costs associated with the restructuring of Guideline and Direct Media of $1.7 million and $1.5 million, respectively.

close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above