Avis 2013 Annual Report Download - page 45

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35
ITEM 3. LEGAL PROCEEDINGS
The Company is involved in various legal proceedings related to wage and hour and employee classification
claims that involve allegations that we violated the Fair Labor Standards Act and various other state labor laws by
misclassifying certain management employees as exempt from receiving overtime compensation. The relief
sought in these cases varies but most cases typically seek to recover payment for alleged unpaid overtime
compensation and attorneys’ fees and costs. These matters are at various stages in the litigation process and we
intend 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 acquisition of Zipcar by the Company. The
complaints all generally alleged 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 that the Company aided and
abetted the breaches of fiduciary duties by Zipcar’s board of directors. The parties executed a stipulation of
settlement in October 2013, which the Delaware Chancery Court reviewed and approved in February 2014, and
which resulted in this matter being fully dismissed.
Additionally, we are involved in other claims, legal proceedings and governmental inquiries related, among other
things, to our vehicle rental and car sharing operations, including, among others, business practice disputes,
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.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.