InfoGroup amends '08 earnings report
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.