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Select, State Fund Enter Settlement

January 25, 2013

Select Staffing entered into a confidential settlement of all outstanding litigation matters with the California State Compensation Insurance Fund, the company announced today. Select and State Fund had been pursuing appeals and litigation stemming from an August 2011 jury verdict rendered against Select in San Francisco Superior Court for $50 million in damages stemming from a business relationship Select entered into in 2002.

Select CEO Steve Sorensen expressed satisfaction that the matter was now resolved,

“We are pleased to have reached an amicable resolution to this unfortunate matter,” said CEO Steve Sorensen. “We look forward to focusing our energy and attention on growing our business without any further distraction from this litigation.”

The lawsuits arose in late 2002 after Select used an employee leasing firm to secure workers’ compensation insurance for a subset of its temporary workforce. State Fund brought the lawsuit alleging breach of contract and misrepresentation.

 “Select is currently insured by workers’ compensation carriers with A+ ratings, and our risk management and workers’ compensation programs have received numerous awards for innovation, stability and safety improvements, including Business Insurance Magazine’s ‘Risk Manager of the Year,’” Sorensen said. “Select is extremely proud that despite the pendency of this lawsuit, we were able to achieve significant growth and continue to deliver excellent customer service to our 15,000 customers, and we are very appreciative that our customers remained steadfastly supportive of us throughout this period. We are very happy to put this matter behind us.”

Select ranks No. 10 on Staffing Industry Analysts’ 2012 list of largest U.S. staffing firms.