National Education Corp. said it has revised its 1995 losses upward to account for a $970,000 legal settlement that exceeded funds that the company had set aside for the case.
The company, which provides educational and training products, revised its losses for 1995 to $87.2 million, or $2.73 a share, from a previously reported $86.6 million, or $2.72 a share, as a result of the settlement involving its 83%-owned unit, Steck-Vaughn Publishing Corp. National Education's fourth-quarter loss widened to nearly $2.87 million, or 8 cents a share, from the previously reported $2.37 million, or 6 cents a share.
National Education said the litigation related to the 1993 termination of a pact entered into in 1991 by Steck-Vaughn and a product development group. Steck-Vaughn, an Austin, Texas, publisher of supplementary education materials, also adjusted its earnings for the quarter and year.
Steck-Vaughn said further litigation could have exposed it to "substantially higher damages in the event of an unfavorable outcome."