Duane Reade announces $3.5 million settlement for Q4 2008

NEW YORK Duane Reade, without admitting liability, has announced a $3.5 million litigation settlement that will result in a $3.5 million one-time, pre-tax charge for the fourth quarter.

The two class action cases concern the retailer’s alleged past payment practices for certain overtime and employee non-exempt classifications.

The settlement is subject to the approval of the U.S. District Court for the Southern District of New York. The company stated that while it believes it can “strongly defend against the matters involved in this litigation” it has decided to settle to avoid additional defense costs and uncertainty surrounding the litigation.

The retailer, which operates 251 stores, is expected to announce its fourth quarter and fiscal year 2008 results in March.