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Class Action Lawsuits Against Goodys Family Clothing Inc.

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November 22, 2005

Goodys Family Clothing Inc is Sued for Securities Fraud Under Class Action

A case was filed in connection with the Sun Merger Agreement. The Goodys Family Clothing, its directors and certain executive officers are being sued and the case is seeking, among other things, certification as a class action, injunctive relief and unspecified damages.

The case claims breach of fiduciary duties by accepting an inadequate offer, by failing to address other acquisition proposals, by taking steps to discourage other acquisition proposals, including an excessive termination fee, and by generally failing to maximize shareholder value. The complaint also alleges that the sale is motivated by the self-interest of Goodys Family Clothing's Chairman and Chief Executive Officer.

A decision is still to be determined.

The case was filed in the Chancery Court for Knox County, Tennessee.

November 19, 2003

Class Action Race Discrmination Lawsuit Against Goodys Family Clothing Inc.

Employees of the Goodys Family Clothing's retail stores brought a class action case against the company claiming discrimination. The case has claimed racial discrimination.

By way of damages, the plaintiffs in these actions are seeking, among other things, injunctive relief, back pay and other monetary relief.

A proposed Consent Decree was filed with the Court for its preliminary approval. The proposed Consent Decree sets forth the proposed settlement of the class action race discrimination lawsuit.

Ultimately, class action certification was sought in the lawsuit only with respect to alleged discrimination in promotion to management positions and the proposed Consent Decree is limited to such claims.

Generally, the proposed settlement provides for a payment an amount of $3.2àmillion to the class members and their counsel. Also, the settlement proposes implementation of certain policies, practices and procedures regarding, among other things, training of employees.

The Court granted preliminary approval of the proposed Consent Decree, and a hearing will be held in the future regarding the adequacy and fairness of the proposed settlement.

April 27, 1999

Class Action Suit Against Goodys Family Clothing Inc for Discrimination

Employees of the Goodys Family Clothing's retail stores brought a case against the company claiming discrimination with respect to employment opportunities, including, among other things, discrimination through their constructive discharge, failure to be promoted and failure to be paid wages equal to white employees.

The second lawsuit was then later filed also claiming discrimination! The case claims that Goodys Family Clothing discriminated against a class of African-American employees at its retail stores through the use of discriminatory selection and compensation procedures, and by maintaining unequal terms and conditions of employment and that Goodys Family Clothing maintained a racially hostile working environment. The case is seeking to have this action certified as a class action.

By way of damages, the plaintiffs in these actions are seeking, among other things, injunctive relief, back pay and other monetary relief.