Nuverra Enters into Settlement Agreements in Texas Court Case Involving Subsidiary Heckmann Water Resources (CVR), Inc.
July 16 2014 - 4:05PM
Business Wire
Nuverra Environmental Solutions, Inc. (NYSE:NES), (“Nuverra” or
the “Company”) announced today that it has entered into agreements
to fully settle all claims related to a previously disclosed
lawsuit filed against its subsidiary Heckmann Water Resources
(CVR), Inc. in the District Court of Dimmit County, Texas, arising
from a vehicle accident.
Nuverra has agreed to fund $5.5 million of the total settlement
amount to fully resolve the matter. The settlements were fully
approved by the District Court of Dimmit County on July 15, 2014.
Terms of the settlements, including the total settlement amounts
and the portion paid by the Company’s insurer, are confidential.
These settlement agreements include all plaintiffs and the
Company’s insurer and release Nuverra and all of its subsidiaries
from all past and future claims or liabilities related to this
matter.
The Company will take a charge related to the settlement in the
second quarter ended June 30, 2014, which will include the $5.5
million one-time cash payment and related legal fees and defense
costs.
The vehicle accident occurred in May 2012 and involved a
Heckmann Water Resources (CVR), Inc. truck and one other vehicle.
In December 2013, a Dimmit County jury awarded damages against
Heckmann Water Resources (CVR), Inc. totaling $181 million in
compensatory damages and $100 million in punitive damages, which
were subsequently reduced in the judgment by the District Court of
Dimmit County, Texas as a result of post-trial motions. The Company
initially disclosed the jury verdict in a press release dated
December 8, 2013.
About Nuverra Environmental Solutions, Inc.
Nuverra Environmental Solutions is among the largest companies
in the United States dedicated to providing comprehensive
and full-cycle environmental solutions to customers in energy and
industrial end-markets. Nuverra focuses on the delivery,
collection, treatment, recycling, and disposal of restricted
solids, water, wastewater, used motor oil, spent antifreeze, waste
fluids and hydrocarbons. The Company continues to expand its suite
of environmentally compliant and sustainable solutions to customers
who demand stricter environmental compliance and accountability
from their service providers.
Interested parties can access additional information about
Nuverra on the Company's web site at http://www.nuverra.com, and in
documents filed with the United States Securities and Exchange
Commission, on the SEC's web site at http://www.sec.gov.
Forward-Looking Statements
Certain statements in this press release which are not
historical facts may constitute "forward-looking statements" within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to assist in identifying such
forward-looking statements. Forward-looking statements in this
press release include, without limitation, statements regarding the
Company’s expectations regarding the process for implementation of
the settlement and other matters that involve known and unknown
risks, uncertainties and other factors that may cause the outcome
to differ materially from that expressed or implied by this press
release. Such risk factors include, among others: uncertainties
relating to the implementation of the settlement in accordance with
the final settlement documentation and related court filings,
potential violation of the terms of the settlement documentation
and related court filings by one or more of the parties, the
potential impact of any trial court or appellate court action, and
the potential impact of any unforeseen additional litigation
related to this matter. Additional risks and uncertainties relating
to the Company’s business are set forth in the Company's Form 10-Q
for the three months ended March 31, 2014, its Annual Report on
Form 10-K for the fiscal year ended December 31, 2013, as well as
the Company's other reports filed with the United States Securities
and Exchange Commission, which are available at http://www.sec.gov
and the Company's web site at http://www.nuverra.com. As a result
of the foregoing considerations, you are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this report. All forward-looking statements
are qualified in their entirety by this cautionary statement. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Nuverra Environmental Solutions, Inc.Liz Merritt,
602-903-7802VP-Investor Relations &
Communicationsir@nuverra.com