CCC Announces Signing Of Settlement Agreement In National Class Action Litigation Pending in Madison County, IL
July 13 2005 - 9:00PM
Business Wire
Settlement calls for resolution of class action suits against the
Company in Madison County involving its valuation product but
includes no admission of fault CCC Information Services Inc., a
subsidiary of CCC Information Services Group Inc. (Nasdaq:CCCG),
today announced it and 15 of its customers signed a settlement
agreement with the plaintiffs in various class action suits pending
in Madison County, Illinois. These consolidated suits, In re Total
Loss Class Action Litigation, Case Nos. 01 L 157, et al., relate to
the valuation of vehicles that have been declared total losses by
insurers. This settlement includes no admission of liability or
wrongdoing by CCC or its customers. The proposed classes represent
all customers of the settling carriers who had a total loss claim
from January 28, 1989 to the present, for which CCC's product and
service (now called CCC Valuescope(R)) were used to perform the
valuation. The settlement itself is subject to Court approval, and
a motion seeking preliminary approval of the settlement was filed
with the Court today. Notice to members of the settling classes
will then be issued, and the Company anticipates that a final
approval hearing will take place before the end of the year. "We
are pleased that we have been able to work with our participating
insurance company customers and agree upon terms that are equitable
for all involved," said Robert S. Guttman, Senior Vice President
and General Counsel for CCC. "The Company has a strong belief in
the integrity and accuracy of our valuation product and service. We
concluded, however, that settlement of these suits is the best
course of action in order to avoid further protracted litigation,
expense and distraction." Terms of the settlement agreement will
require CCC to pay notice and administration fees and other costs
associated with the settlement. The Company estimates that these
costs will total approximately $8 million, and including available
insurance proceeds of $1.8 million, the Company is fully reserved
for these payments. Other settlement costs, including claims by
class members, will be paid by the insurance companies that are
participating in the settlement. In addition to its settlement
contribution, CCC will also engage the services of an independent,
third party as a Court-appointed monitor to periodically review CCC
Valuescope's methodology for five years following settlement and to
oversee the performance of various product validation studies.
About CCC CCC Information Services Group Inc. (NASDAQ: CCCG),
headquartered in Chicago, is a leading supplier of advanced
software, communications systems, Internet and wireless-enabled
technology solutions to the automotive claims and collision repair
industries. Its technology-based products and services optimize
efficiency throughout the entire claims management supply chain and
facilitate communication among approximately 21,000 collision
repair facilities, 350 insurance companies, and a range of industry
participants. For more information about CCC Information Services,
visit CCC's Web site at www.cccis.com. This release contains
statements that constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and are subject to the
safe harbor provisions of those sections and the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that any
such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, including those
described in the Company's filings with the SEC, and that actual
results or developments may differ materially from those in the
forward-looking statements. Specific factors that might cause
actual results to differ from expectations include, but are not
limited to, competition in the automotive claims and collision
repair industries, the ability to develop new products and
services, the prolonged sales and implementation cycles of some of
the Company's new products, the ability to protect trade secrets
and proprietary information, the ability to generate the cash flow
necessary to meet the Company's obligations, the outcome of certain
legal proceedings including court approval of class action
litigation and negotiation of settlement documentation, and other
factors. The Company cannot predict whether other existing cases
relating to total loss valuations can be resolved on comparable
terms or whether additional suits may be filed in the future.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis,
judgment, belief or expectation only as of the date hereof. The
Company has based these forward-looking statements on information
currently available and disclaims any intention or obligation to
update or revise any forward-looking statement.
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