NETeller settles w/DoJ

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Neteller update - latest statement

NETELLER Plc Pre-close Trading Update

Board confident 2007 results to meet market expectations building momentum into 2008

Friday, 11 January 2008 NETELLER Plc, the independent global online payments business, is pleased to provide a trading update in respect of its preliminary results for the year ended 31 December 2007, which the Company intends to release on Tuesday, 11 March 2008.

Trading update

The Board announces that the Groups operating businesses have traded in line with managements expectations in the fourth quarter and the Board is confident that the full year results for the Group will meet market expectations.

The Company will make the final payment of US$ 38.25 million on 16 January 2008 to the US authorities in respect of its obligations under the deferred prosecution agreement. This amount reflects recent discussions with US authorities confirming that US$ 57.7 million of the Groups funds were seized, as opposed to the US$ 60 million previously thought and announced. The total amount to be paid to the US authorities in connection with this matter remains the same as previously announced (US$ 136 million).

As part of the arrangements with the USAO, the Group implemented the Distribution Plan to return approximately US$ 94 million of funds owed to US customers. The Group has to date repaid approximately US$ 81 million of this amount. Any unpaid amounts are currently held in trust accounts with the Groups bank. Under the terms of the Distribution Plan, US customers have until 26 January 2008 to withdraw their funds using the NETELLER website.

The sale of the Groups principal Calgary property has been delayed as a result of the lenders for the intended purchaser introducing significantly less attractive terms in the wake of the recent developments in North American financial markets. Consequently, the final condition to the Purchase and Sale Agreement for the property has not been satisfied. Constructive discussions with the intended purchaser and its lenders are continuing but there can be no certainty that a transaction will be concluded. However, the Group is optimistic about achieving a sale in due course given the current strength of the Calgary property market.

The Group has also recently concluded a settlement with a third party vendor who had commenced litigation against the Group for alleged breach of contract (as previously disclosed in the Groups interim statement of 23 August 2007), paying an amount of approximately CAD$ 1.75 million to settle any potential claims.

Building Momentum into 2008

During 2008 the Group will deliver a significant number of initiatives in support of its strategic goal of providing innovative payment solutions for online communities
 

sdaddy

Meister Member
Joined
Feb 18, 2005
Location
Arizona
As part of the arrangements with the USAO, the Group implemented the Distribution Plan to return approximately US$ 94 million of funds owed to US customers. The Group has to date repaid approximately US$ 81 million of this amount. Any unpaid amounts are currently held in trust accounts with the Groups bank. Under the terms of the Distribution Plan, US customers have until 26 January 2008 to withdraw their funds using the NETELLER website.
I'm surprised that there are $13 million in US customer funds still unpaid. Can it be that there were that many customers who, for whatever reason, did not withdraw their funds?
 
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