Krispy Kreme - 2006

The Krispy Kreme Corporation Retirement Savings Plan and the Krispy Kreme Profit-Sharing Stock Ownership Plan retained IFS to determine whether to approve the settlement of an ERISA class action lawsuit brought against Krispy Kreme and various alleged plan fiduciaries, asserting breaches of fiduciary duty in the management of the Plans' investment in Krispy Kreme stock. The suit alleged that the fiduciary breaches caused damage to the plans' participants as a result of dramatic declines in value of the Krispy Kreme stock.

IFS determined that the settlement of the lawsuit for $4.75 million, plus certain changes in the plans' rules regarding participant investments in Krispy Kreme stock, satisfied the requirements of the Department of Labor's Prohibited Transaction Class Exemption 2003-39. That exemption sets forth the conditions for an ERISA-covered plan to release claims against parties in interest such as the plan's sponsor and fiduciaries.