NEW YORK (AP) — Staffing firm Robert Half International Inc. said Friday that it will take a second-quarter after-tax charge of $11.4 million related to the settlement of a trio of lawsuits filed by groups of its employees.
The Menlo Park, Calif.-based company said in a Securities and Exchange Commission filing that the cases had been set for mediation, but the parties reached a deal on Thursday to settle the claims. The formal settlement of the cases remains subject to court approval.
Robert Half said the employees claimed in the lawsuits that they were owed overtime, interest and other payments for work dating back to September 2000. The company said that while it still believes that it could defend itself against the claims, it determined that a settlement was in the best interest of it and its shareholders.
The Menlo Park, Calif.-based company said that in recent years, it has changed its employment agreements to prevent similar lawsuits in the future.
Combined with a one-time tax expense reduction, Robert Half said it expects the settlement to reduce its second-quarter profit by $8.1 million, or 6 cents per share. Analysts, on average, were expecting the company to report profit of 36 cents per share for the quarter ended June 30, according to FactSet.
Robert Half shares fell 71 cents, or 2.4 percent, to close Friday trading at $28.50. The stock has traded between $19.69 and $32.32 in the past 52 weeks.