Item 8.01. Other Events.
On July 29, 2009, PRG-Schultz International, Inc. (the "Company") entered into a settlement agreement in connection with the previously disclosed lawsuit filed against the Company by the Fleming Post Confirmation Trust ("PCT"), a trust created pursuant to Fleming Companies' Chapter 11 reorganization plan. Fleming was one of the Company's larger customers at the time Fleming filed for Chapter 11 bankruptcy reorganization on April 1, 2003.
Under the terms of the settlement agreement, the Company will pay PCT $1.65 million to resolve all claims made by PCT with respect to approximately $5.6 million in payments made to the Company by Fleming during the 90 days preceding Fleming's bankruptcy filing that were alleged to be either preference payments or fraudulent transfers under the Bankruptcy Code. In connection with the settlement, the Company has also agreed to dismiss all proofs of claim it may have against Fleming in connection with the bankruptcy.

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