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EQUIFAX INTENSIFIES LEGAL CASE AGAINST CALIFORNIA STATE LOTTERY

 ATLANTA, Sept. 3 /PRNewswire/ -- Equifax Inc. (NYSE: EFX) announced today that its will intensify its legal case against the California State Lottery (CSL), since the parties have been unable to agree on settlement terms after months of negotiations.
 Equifax also plans to take a third quarter charge against earnings of approximately $48 million pretax ($0.41 per share after tax) to write down the assets of its subsidiary, High Integrity Systems, Inc. (HISI) and accrue for related costs. The write down recognizes the decline in value of those assets related to HISI's contract with the CSL which was terminated by the CSL on April 21.
 Daniel W. McGlaughlin, Equifax president and chief operating officer, said: "In the four months since the CSL canceled our 5-year contract to provide an automated instant ticket gaming system, we engaged in negotiations with the CSL and tried, unsuccessfully, to reach a satisfactory resolution. We believe we have a strong legal case, and we are intensifying our litigation against the CSL to recover our costs and lost profits."
 McGlaughlin added: "We have worked to be responsive to the needs of the CSL both during our project implementation and in our negotiations. We remain confident in our position that we compiled with the provisions of the contract and fully expect that our aggressive legal action will succeed."
 Donald U. Hallman, Equifax senior vice president and chief financial officer, said: "Because we anticipate a lengthy legal process and because the outcome of the process is uncertain, we believe this write down of assets is required by generally accepted accounting principles. Nevertheless, we stand firm in our belief that Equifax has a strong legal position and is likely to recover these costs in the future."
 On July 23, 1992, High Integrity Systems, Inc. signed a five-year contract with the California State Lottery to provide an automated instant ticket gaming system. On April 21, 1993, HISI was notified that the CSL had terminated the contract with HISI. On April 26, the CSL sued HISI for breach of contract, alleging that HISI failed to deliver a working system. On May 10, HISI filed a cross complaint against the CSL for breach of contract, asserting that HISI had complied with the contract and had delivered on time a working system ready for CSL acceptance testing.
 Equifax Inc. is the leading provider of information for consumer financial transactions. Employing more than 12,000 people throughout North America and the United Kingdom, Equifax's information services and systems help its customers grant credit, insure lives and property, authorize checks, process credit card transactions, market products, control healthcare costs, and complete other transactions that benefit the economy, business and consumers. Equifax's revenues for the year ending Dec. 31, 1992, were more than $1.1 billion.
 -0- 9/3/93
 /CONTACT: John A. Ford, APR, vice president, Corporate Public Affairs of Equifax, 404-885-8309 or, home, 404-297-1879/
 (EFX)


CO: Equifax Inc.; California State Lottery; High Integrity Systems,
 Inc. ST: Georgia, California IN: SU:


BR-BR -- AT001 -- 8722 09/03/93 09:14 EDT
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Publication:PR Newswire
Date:Sep 3, 1993
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