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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
79
the action and remanding the action to the district court for a determination of the issue of the enforceability
of the parties’ arbitration agreements. Plaintiff requested the 11th Circuit to review this decision en banc
and this request has been granted. The en banc rehearing took place on February 26, 2008. The Strong
litigation is still at an early stage, and neither the likelihood of an unfavorable outcome nor the ultimate
liability, if any, with respect to this litigation can be determined at this time.
On October 23, 2007, a complaint, styled Ryan Bonner, individually and on behalf of all others
similarly situated, v. Cash America International, Inc., Cash America Net of Nevada, LLC, Cash America
Net of Pennsylvania, LLC and Cash America of PA, LLC, d/b/a CashNetUSA.com (collectively,
“CashNetUSA”), was filed in the United States District Court for the Eastern District of Pennsylvania,
alleging, on behalf of a purported class, that the defendants located outside Pennsylvania had engaged in
unfair or deceptive acts or practices by making loans to Pennsylvania consumers in violation of
Pennsylvania law, including its usury, fair credit extension, and unfair trade practices and consumer
protection laws. The complaint also alleges that the arbitration, class action waiver and dispute resolution
provisions contained in the loan documents involved in these loans are unenforceable. The complaint seeks
a declaratory judgment that the lending business conducted by CashNetUSA is illegal under Pennsylvania
law and a declaration that loan agreements with Pennsylvania residents are void and unenforceable, an
injunction barring continuing alleged violations (including enjoining collection on loans currently
outstanding from Pennsylvania residents) and an award of monetary damages (including treble damages),
penalties, costs and attorneys’ fees. CashNetUSA believes that the plaintiff’s claims in this suit are without
merit and plans to vigorously defend against all of the asserted allegations. CashNetUSA has filed a Motion
to Compel Arbitration seeking to compel individual arbitration of the plaintiff’s claims and is presently
awaiting plaintiff’s response to this motion.
The Company is a defendant in certain lawsuits encountered in the ordinary course of its business.
Certain of these matters are covered to an extent by insurance. In the opinion of management, the resolution
of these matters will not have a material adverse effect on the Company’s financial position, results of
operations or liquidity.