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RAPAPORT... DGSE Companies and all other defendants have entered into an agreement ''in principle'' to settle class action and derivative litigation related to DGSE's previously-disclosed accounting irregularities and subsequent restatement of its financial results. The proposed settlements are subject to various conditions, but DGSE contended that it will resolve all issues which are pending before the United States District Court for the Northern District of Texas. DGSE specifically listed the following cases to be resolved, the two filed cases entitled Grant Barfuss, on behalf of himself and all others similarly situated vs. DGSE Companies Inc.; L. S. Smith, John Benson and William Oyster (Civil Action No. 3:12-cv-3664), and Jason Farmer, derivatively on behalf of nominal defendant DGSE Companies Inc., plaintiff, v. William H. Oyster, James D. Clem, William Cordeiro, Craig Alan-Lee, David Rector, L. S. Smith, and John Benson, defendants and DGSE Companies Inc., nominal defendant (Civil Action No. 3:12-cv-3850). The defendants have agreed to pay $2 million to resolve all claims in both suits (including obligations to pay attorneys’ fees). DGSE expects to incur some additional fees and expenses associated with finalizing the settlement. It is expected that approximately 90 percent of the total settlement amount and related expenses will be paid from insurance proceeds. "We are pleased to put this situation behind us, and focus our entire attention on growing our business profitably," said James Vierling, the CEO of DGSE. "The new leadership of DGSE, put in place following the discovery of these accounting irregularities, has demonstrated a firm commitment to creating and preserving shareholder value."
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