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December 20, 2005
Guitar Center Agrees to Settle Wage and Hour Lawsuits

Guitar Center, Inc., has agreed to pay up to $3.5 million to settle two class-action lawsuits alleging violations of California's wage and hour law.

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The lawsuits alleged that the company improperly documented and enforced break-time and lunch-time periods for hourly retail store employees in the California .

Under the terms of the proposed settlement, which is subject to court approval, Guitar Center will make pay up to $3.5 million to fully resolve claims by eligible class members, including payments to class members and payments for plaintiff attorneys' fees and the costs of a third-party administrator.

"While the Company denies all liability or wrongdoing in these cases, we chose to settle these lawsuits in order to put them behind us and avoid the distraction and additional, unnecessary legal expenses that we would otherwise incur," says Leland P. Smith, executive vice president and general counsel for Guitar Center.

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