Thrifty Car Rental 2007 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2007 Thrifty Car Rental annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

ITEM 3. LEGAL PROCEEDINGS
On July 20, 2007, a purported class action lawsuit was filed against DTG Operations, Inc. and the
Company in the Superior Court for Los Angeles County, California by Marquis Smith, on his behalf and
on behalf of all others similarly situated, seeking to recover amounts alleging overcharges to California
renters for loss damage waivers on complimentary upgrade rentals and for the issuance of a permanent
injunction. The Company intends to vigorously defend this matter.
On September 23, 2007, a purported class action was filed against the Company and DTG Operations,
Inc., et al., by Maria Albayero, individually and on behalf of all similarly situated employees in California,
in the Superior Court for Orange County, California. This lawsuit is an action for alleged violations of
wage and hour laws including not providing and/or compensating for missed meal and rest periods,
failure to reimburse uniform maintenance, as well as other things. The suit seeks payment of wages,
damages, penalties and injunctive relief. The Company intends to vigorously defend this matter.
On November 14, 2007, a purported class action was filed against the Company, by Michael Shames and
Gary Gramkow, individually and on behalf of all others similarly situated, in the Southern District Court of
California. This lawsuit is an action claiming that the pass through of the California Trade and Tourism
Commission and Airport Concession Fees authorized by legislation effective in January 2007 constitute
antitrust violations of the Sherman Act and the California Unfair Competition Act. The suit seeks
injunctive and equitable relief to stop the pass through, restitution, damages and fees. The Company
intends to vigorously defend this matter.
On December 13, 2007 and December 14, 2007, purported class actions were filed against the
Company, by Thomas Comisky and Isabel Cohen, respectively, individually and on behalf of all others
similarly situated, in the Central District Court of California. These lawsuits are actions claiming a
violation of rights guaranteed under the Free Speech and Free Association Clauses by compelling out-of-
state visitors to subsidize the Passenger Car Rental Tourism Assessment Program, that the Program
violates the Interstate Commerce Clause of the US Constitution by limiting the assessment to airport
locations renting to out-of-state travelers and a violation of the California Constitution by not maintaining
segregated accounts for the pass through funds. These suits seek injunctive relief to stop the pass
through, a refund of all assessments, damages and fees. The Company intends to vigorously defend
these matters.
As these cases are in the early stages of the legal process, and given the inherent uncertainties of
litigation, the ultimate outcome cannot be predicted at this time, nor can the amount of ultimate loss, if
any, be reasonably estimated.
Various other legal actions, claims and governmental inquiries and proceedings are pending or may be
instituted or asserted in the future against the Company. Litigation is subject to many uncertainties, and
the outcome of the individual litigated matters is not predictable with assurance. It is possible that certain
of the actions, claims, inquiries or proceedings could be decided unfavorably to the Company. Although
the final resolution of any such matters could have a material effect on the Company's consolidated
operating results for the particular reporting period in which an adjustment of the estimated liability is
recorded, the Company believes that any resulting liability should not materially affect its consolidated
financial position.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter ended December 31,
2007.
22