The Region : Judge OKs Denny’s Scrip

Denny’s Inc. can issue scrip instead of cash to settle a class-action lawsuit brought by disgruntled former shareholders who thought they were shortchanged in a 1985 merger, a Los Angeles Superior Court judge ruled. The scrip, with a total face value of approximately $3.1 million, will be issued as a form of discount coupons to more than 4,000 shareholders at the rate of 20 cents per share of Denny’s common stock owned immediately before the merger under which they were paid $43 a share. It will be redeemable for up to half the cost of food purchased in any of the chain’s more than 1,000 restaurants in 43 states. Holders of scrip can use it, sell it, or give it away to individuals or charities.