* To increase reserve following Canada court ruling
* Had earlier set aside C$4 mln related to lawsuit
* To appeal court ruling
June 25 (Reuters) - Dunkin’ Brands Group Inc, the parent of Dunkin’ Donuts cafes and Baskin-Robbins ice cream shops, said it would increase its legal reserve in the current quarter following a court ruling against it in Canada.
A group of Dunkin’ Donuts franchisees in Quebec had filed a lawsuit against the company in 2003 on a variety of claims.
The Quebec Superior Court ruled against Dunkin’ Brands on Friday and ordered the company to pay C$16.4 million plus costs and interest to compensate the loss incurred by the franchises.
Dunkin’ Brands, which operates in nearly 60 countries, said it had earlier reserved C$4 million for the potential loss.
The company said the damages awarded were unwarranted and it intends to appeal the decision.
Shares of the company closed at $34.72 on Friday on the Nasdaq.