You are viewing the printer-friendly version of Bankrate Settles False Advertising ClaimsBankrate Settles False Advertising ClaimsNEW YORK - Bankrate, Inc. announced that it has reached a settlement with American Interbanc, LLC to resolve all matters related to the lawsuit against Bankrate. In November 2002, American Interbanc added Bankrate to a lawsuit pending against several other defendants in the Superior Court of the State of California involving allegations of false advertising and antitrust violations.Under the terms of the settlement, without admitting fault or liability of any kind, Bankrate has agreed to make a one time $3.0 million cash payment to American Interbanc and American Interbanc has agreed to dismiss the lawsuit with no ability to reassert its claims against Bankrate. Additionally, American Interbanc and Bankrate have agreed to release each other from all claims arising out of or related to the lawsuit. Bankrate and American Interbanc have also agreed to certain terms and conditions that permit American Interbanc to advertise on Bankrate.com. During the third quarter 2006, Bankrate incurred legal expenses of $675,000 to settle the case and will also record a charge of $3.0 million to recognize the settlement. "While we believe that we have operated our business in an appropriate manner, we made a pragmatic business decision to settle this lawsuit," said Thomas R. Evans, President and CEO of Bankrate, Inc. The settlement allows us to contain our exposure and rid ourselves of the distraction and expense of defending the suit," Mr. Evans added. pk |