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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 of 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 10, 1996
DAIRY MART CONVENIENCE STORES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-12497 04-2497894
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(State of Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification
Number)
One Vision Drive, Enfield, Connecticut 06082
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (203) 741-4444
N/A
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(Former name of former address, if changed since last report.)
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Item 5. Other Events
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On July 3, 1996, a Stipulation of Settlement (the "Settlement") was filed
with the Delaware Court of Chancery (the "Court") in connection with a
shareholder derivative action (the "Action") captioned Kahn v. Dairy Mart
Convenience Stores (C.A. 12489) in which the Company was named as a nominal
defendant. The Action, brought on behalf of the Company, alleged that certain
individual defendants breached their contractual and fiduciary duties in
authorizing the Company to pay certain expenses of a management group in
connection with a failed leveraged buyout of the Company in 1989.
Under the terms of the Settlement, the Company's insurance carrier will pay
to the Company, on behalf of the individual defendants, the sum of $850,000.
The Settlement further provides that the plaintiffs in such action intend to
apply for an award of attorney's fees and expenses in an amount not to exceed
$240,000, which amount would be paid from such $850,000.
The Settlement is subject to Court approval, after notice to shareholders
which is expected to be mailed shortly.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Dairy
Mart Convenience Stores, Inc. has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
DAIRY MART CONVENIENCE
STORES, INC.
Date: July 10, 1996
By: /s/ Gregory G. Landry
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Gregory G. Landry
Its Executive Vice President
and Chief Financial Officer
