Western Union 2013 Annual Report Download - page 158

2013 FORM 10-K
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ITEM 2. PROPERTIES
Properties and Facilities
As of December 31, 2013, we have offices in over 50 countries, which includes five owned facilities and approximately 20
United States and over 400 international leased properties. Our owned facilities include our corporate headquarters located in
Englewood, Colorado.
Our owned and leased facilities are used for operational, sales and administrative purposes in support of our Consumer-to-
Consumer, Consumer-to-Business, and Business Solutions segments and are all currently being utilized. In certain locations, our
offices include customer service centers, where our employees answer operational questions from agents and customers. Our office
in Dublin, Ireland serves as our international headquarters.
We believe that our facilities are suitable and adequate for our current business; however, we periodically review our facility
requirements and may acquire new facilities and update existing facilities to meet the needs of our business or consolidate and
dispose of or sublet facilities which are no longer required.
ITEM 3. LEGAL PROCEEDINGS
On December 10, 2013, the City of Taylor Police and Fire Retirement System filed a purported class action complaint in the
United States District Court for the District of Colorado against The Western Union Company, its President and Chief Executive
Officer, and a former executive officer of the Company, asserting claims under sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 (“Exchange Act”) and Securities and Exchange Commission Rule 10b-5 against all defendants, and under Section
20(a) of the Exchange Act against the individual defendants. Plaintiff alleges that during the alleged class period, February 7, 2012
through October 30, 2012, defendants made false or misleading statements or failed to disclose adverse facts known to them,
including: (1) the Company was experiencing difficulties in complying with its increased duties required by the Southwest Border
Agreement and that the State of Arizona was dissatisfied with the Company’s efforts; (2) the Company was spending significantly
more than forecast on its efforts to satisfy the compliance and monitoring program; (3) the Company had downplayed the impact
that changes in its compliance and regulatory environment were having on its operations, including its operations in Mexico and
Latin America; (4) the scope of the Monitor’s review was being expanded to include Western Union Business Solutions, which
would increase compliance costs; and (5) the Company’s ability to charge a premium for its core money transfer product was
under competitive pressure, which would require drastic price reductions to stem market share losses. On January 30, 2014, another
shareholder, Norma A. Garavaglia, filed a second purported class action complaint in the United States District Court for the
District of Colorado that names the same defendants and contains allegations which are substantially similar to those made in the
City of Taylor Police and Fire Retirement System lawsuit.
On January 13, 2014, Natalie Gordon served the Company with a Verified Shareholder Derivative Complaint and Jury Demand
that was filed in District Court, Douglas County, Colorado naming the Company’s President and Chief Executive Officer, one of
its former executive officers, and all of its current directors as individual defendants and the Company as a nominal defendant.
The complaint asserts claims for breach of fiduciary duty and gross mismanagement against all individual defendants and unjust
enrichment against the President and Chief Executive Officer and the former executive officer based on allegations that between
February 12, 2012 to October 30, 2012, the individual defendants made or caused the Company to issue false and misleading
statements or failed to make adequate disclosures regarding the effects of the Southwest Border Agreement, including regarding
the anticipated costs of compliance with the Southwest Border Agreement, potential effects on business operations, and Company
projections. Plaintiff also alleges that the individual defendants caused or allowed the Company to lack requisite internal controls,
caused or allowed financial statements to be misstated, and caused the Company to be subject to the costs, expenses and liabilities
associated with the City of Taylor Police and Fire Retirement System lawsuit. Plaintiff further alleges that the Company’s President
and Chief Executive Officer and a former executive officer received excessive compensation based on the allegedly inaccurate
financial statements.