Avis 2012 Annual Report Download - page 33

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26
regarding meal breaks taken by our employees. A second similar suit pending against us in California is no longer being
pursued as a class action. We intend to continue to vigorously defend against these suits.
In January 2013, six putative class actions were filed in the Delaware Chancery Court and two putative class actions were
filed in Massachusetts state court arising out of the proposed acquisition of Zipcar by the Company. The complaints all
generally allege that Zipcar’s board of directors breached its fiduciary duties of care and loyalty by failing to take steps to
maximize the value of Zipcar for its public shareholders and the complaints further allege that the Company aided and
abetted the breaches of fiduciary duties by Zipcar’s board of directors. The complaints seek injunctive relief or rescission of
the transaction (in the event the proposed transaction has already been consummated) and other compensatory damages, as
well as costs and disbursements, including reasonable attorneys’ and experts’ fees. The Delaware cases have been
consolidated into a single case, and plaintiffs in the Massachusetts cases have agreed to seek any pre-closing relief in the
Delaware Chancery Court. No discovery has yet taken place with respect to this litigation.
Additionally, we are involved in other claims, legal proceedings and governmental inquiries related, among other things, to
our vehicle rental operations, including, among others, contract and licensee disputes, employment and wage-and-hour
claims, competition matters, insurance claims, intellectual property claims and other regulatory, environmental, commercial
and tax matters. The Company believes that it has adequately accrued for such matters as appropriate. However, litigation is
inherently unpredictable and, although the Company believes that its accruals are adequate and/or that it has valid defenses in
these matters, unfavorable resolutions could occur, which could adversely impact the Company’s financial position, results of
operations or cash flows.
Not applicable.