Cash America 2008 Annual Report Download - page 113

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
90
America's previously filed motion to compel arbitration) was upheld by the Georgia Court of Appeals, and
on September 24, 2007, the Georgia Supreme Court declined to review the decision. The case has been
returned to the State Court of Cobb County, Georgia, where Cash America filed a motion requesting that the
trial court rule on Cash America’s pending motion to compel arbitration and stay the State Court
proceedings. The Court denied the motion to stay and ruled that the motion to compel arbitration was
rendered moot after the Court struck Cash America’s affirmative defenses based on arbitration. The Georgia
Supreme Court declined to review these orders and remanded the case to the State Court of Cobb County,
Georgia where discovery relating to the propriety of class certification is underway. The State Court issued a
Scheduling Order Regarding Class Certification setting a hearing on the propriety of class certification for
June 29, 2009. The Court ordered that discovery directed at the merits of Plaintiff's claims be stayed until
the Court issues its written decision regarding class certification. Cash America believes that the Plaintiffs’
claims in this suit are without merit and is vigorously defending this lawsuit.
Cash America and CSB also commenced a federal lawsuit in the U.S. District Court for the
Northern District of Georgia seeking to compel Plaintiffs to arbitrate their claims against Cash America and
CSB. The U.S. District Court dismissed the federal action for lack of subject matter jurisdiction, and Cash
America and CSB appealed the dismissal of their complaint to the U.S. Court of Appeals for the 11th
Circuit. The 11th Circuit issued a panel decision on April 27, 2007 reversing the district court’s dismissal of
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 was granted. The en banc rehearing took place on February 26, 2008. The 11th Circuit has
stayed consideration of this matter pending the resolution of the United States Supreme Court case, Vaden v.
Discover Bank (“Vaden”). Oral arguments in the Vaden case were heard by the United States Supreme
Court in October 2008 and an opinion is expected to be issued in early 2009. 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.
The Company is also 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.
11. Stockholders’ Equity
During 2008 and 2007, the Company received net proceeds totaling $687,000 and $761,000 from
the exercise of stock options for 56,805 and 69,854 shares, respectively.
The Company received 23,901 shares, 9,794 shares and 7,379 during 2008, 2007 and 2006,
respectively, of its common stock valued at $751,000, $408,000 and $188,000, respectively, as partial payment
of taxes for shares issued under stock-based compensation plans.
On April 20, 2005, the Company’s Board of Directors authorized management to purchase up to a
total of 1,500,000 shares of its common stock from time to time in open market transactions and terminated
the existing open market purchase authorization established on July 25, 2002. On October 24, 2007, the
Board established a new authorization for the repurchase of up to a total of 1,500,000 shares of its common
stock and ended the 2005 authorization. The following table summarizes the aggregate shares purchased
under these plans during each of the three years ended December 31: