TSR Inc. Settles Litigation With Former CEO Christopher Hughes

Rhea-AI Summary

TSR, Inc. (NASDAQ: TSRI) has successfully settled litigation with former CEO Christopher Hughes through mediation. Chairman Bradley M. Tirpak stated this settlement allows the company to focus on growth without the burden of costly litigation. Hughes expressed that resolving the matter through mediation avoids protracted legal battles. Further details will be available in a Form 8-K filing. The company also noted potential risks related to its business growth plans, competition, and external economic conditions, including those stemming from the COVID-19 pandemic.

Positive

• Settlement with former CEO eliminates risk of costly litigation.
• Allows management to focus on business growth.

Negative

• Ongoing risks related to business growth and competition.
• Potential adverse impact due to economic conditions, including COVID-19.

NEW YORK--(BUSINESS WIRE)-- TSR, Inc. (NASDAQ TSRI) announced today that it has settled litigation brought by its former CEO, Christopher Hughes, through mediation.

“We believed it was in the best interests of the Company to resolve the matter so TSR could move forward with its business,” said Bradley M. Tirpak, Chairman of TSR Inc. “We were hopeful that mediation would lead to an agreement and are pleased that it has. The settlement eliminates the risk of costly litigation and allows us to focus on continuing to grow the Company.”

“We wish Mr. Hughes continued success in his future endeavors and thank him for his 34 years of dedicated service to the Company.”

Mr. Hughes commented, “Settling this matter at this time through mediation enables me to avoid protracted, time consuming and costly litigation.”

The Company will file a Form 8-K with further details regarding this settlement at www.sec.gov.

Certain statements contained herein, including statements as to the Company’s plans, future prospects and future cash flow requirements are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties, including but not limited to, the following: the statements concerning the success of the Company’s plan for growth, both internal and through the previously announced pursuit of suitable acquisition candidates; the successful integration of announced acquisitions and any anticipated benefits therefrom; the impact of adverse economic conditions on client spending which have a negative impact on the Company’s business, which includes, but is not limited to, the current adverse economic conditions associated with the COVID-19 global health pandemic and the associated financial crisis, stay-at-home and other orders; risks relating to the competitive nature of the markets for contract computer programming services; the extent to which market conditions for the Company’s contract computer programming services will continue to adversely affect the Company’s business; the concentration of the Company’s business with certain customers; uncertainty as to the Company’s ability to maintain its relations with existing customers and expand its business; the impact of changes in the industry such as the use of vendor management companies in connection with the consultant procurement process; the increase in customers moving IT operations offshore; the Company’s ability to adapt to changing market conditions; the risks, uncertainties and expense of the legal proceedings to which the Company is a party; and other risks and uncertainties described in the Company’s filings under the Securities Exchange Act of 1934. The Company is under no obligation to publicly update or revise forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211005006094/en/

Thomas Salerno, CEO

631-231-0333

tsalerno@tsrconsulting.com

Source: TSR, Inc.

FAQ

What recent legal settlement did TSR, Inc. announce?

TSR, Inc. announced a settlement of litigation with former CEO Christopher Hughes through mediation.

How does the settlement affect TSR, Inc.'s future business plans?

The settlement allows TSR, Inc. to concentrate on growth without the distraction of ongoing litigation.

What are the main risks mentioned by TSR, Inc. after the settlement?

Risks include competition, economic conditions, and the effects of the COVID-19 pandemic on client spending.

When will TSR, Inc. provide more details about the settlement?

Further details regarding the settlement will be filed in a Form 8-K with the SEC.