Item 1.01 Entry into a Material Definitive Agreement.

On July 20, 2009, StarTek, Inc. executed a Stipulation of Settlement ("Stipulation") with lead plaintiffs to settle its federal securities class-action lawsuit,West Palm Beach Firefighters' Pension Fund v.
StarTek, Inc., Civil Action No. 05-cv-01265-WDM-MEH (the "Litigation"), which is currently pending in the United States District Court for the District of Colorado (the "Court").

Under the terms of the Stipulation, defendants will pay $7.5 million to completely resolve the Litigation, in exchange for a release of all claims by lead plaintiffs and class members and a dismissal of the Litigation with prejudice. StarTek's primary insurance carrier will contribute $6.9 million and StarTek will contribute $600,000 to the Settlement Fund (as defined in the Stipulation). The settlement as set forth in the Stipulation is subject to various conditions, including preliminary approval by the Court, notice to the class members, a final hearing, and final approval by the Court. For more information regarding the Litigation, please refer to Item 3-Legal Proceedings in StarTek's Annual Report on Form 10-K for the year ended December 31, 2008.

Item 9.01 Financial Statements and Exhibits.

The Company also issued a press release today announcing the Stipulation, a copy of which is attached as Exhibit 99.1. The information in Exhibit 99.1 is incorporated herein by reference. The information in Item 1.01 and Item 9.01 in this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

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