Item 8.01 Other Events.

As previously disclosed, on July 14, 2009, a securities class action was filed against Ambassadors Group, Inc. (the "Company") and certain of its executive officers on behalf of all persons or entities who purchased the Company's Common Stock between February 8, 2007 and October 23, 2007, in the United States District Court for the Eastern District of Washington (the "Court"). On April 14, 2011, an agreement was reached to settle the action following a mediation before a retired federal judge. Under the terms of the settlement, the Company's insurance carriers agreed to pay the settlement amount of $7.5 million, in complete settlement of all claims, without any admission of wrongdoing or liability by the Company or any party in the action. Throughout the litigation, the Company and the individual defendants have denied, and continue to deny, the allegations made against them. The Company agreed with the insurance carriers to settle the action because it was in the best interests of the Company to avoid the burdens, risk, uncertainties and expense that would be inherent in continued litigation. The settlement agreement, which includes a release for all defendants and other provisions common in such agreements, was preliminarily approved by the Court on September 6, 2011 and notice was provided to all class members. The Court held a hearing to consider final approval of the settlement, the plan of allocation, and the motion for the award of plaintiffs' attorneys' fees on November 30, 2011, but delayed ruling on these matters pending submission of additional materials by the lead plaintiff. The lead plaintiff submitted the requested additional materials on December 30, 2011, January 17, 2012, and March 19, 2012.

On June 28, 2012, the Court entered a final order approving the settlement and related matters. As the settlement is covered and was funded by the Company's insurance carrier, the settlement is not expected to have a material adverse effect on the Company's business, financial condition or results of operations.

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