Dunkin' Brands To Increase Legal Reserve In 2nd Quarter Related To Court Decision In Canada

Dunkin' Brands Group, Inc. DNKN today announced it expects to increase its legal reserve in its current quarter in relation to the Quebec Superior Court's ruling in the Bertico litigation, as referenced in the Company's 8-K filing issued this morning. The lawsuit was filed in 2003 by a group of Quebec Dunkin' Donuts franchisees against the company on a variety of claims, based on events which occurred 10 to 15 years ago. The Court found for the Plaintiffs and issued a judgment against Dunkin' Brands on Friday, June 22, 2012, in the amount of approximately $C16.4 million, plus costs and interest, representing loss in value of the franchises and lost profits. Dunkin' Brands Group, Inc. had previously reserved $C4 million on its consolidated balance sheet to reflect the Company's estimate of the potential loss which could be incurred in connection with this matter.