Circuit City 2008 Annual Report Download - page 20

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Table of Contents
Item 3. Legal Proceedings.
Kevin Vukson v. TigerDirect, Inc., OnRebate.com Inc. and Systemax Inc.
On October 18, 2007, Kevin Vukson filed a national class action complaint in U.S. District Court against TigerDirect, Inc., OnRebate.com Inc.
and Systemax Inc. on behalf of himself and all OnRebate customers whose rebates were denied or delayed. (OnRebate.com Inc. is a rebate
processing company owned by Systemax.). Vukson’s complaint (as amended) alleges that since 2004 Systemax, TigerDirect and OnRebate
engaged in a conspiracy to engage in deceptive and unfair rebate practices. Vukson alleges counts for violation of state consumer protection
statutes, conspiracy, and unfair rebate practices. On February 11, 2009 the Court dismissed Vukson’s complaint with leave to file an amended
complaint by February 19, 2009 but ordered that any amended complaint not include a request for punitive damages. On February 19, 2009
Vukson filed an amended complaint with no request for punitive damages, as ordered by the Court. The Company will continue to vigorously
defend this case.
State of Florida, Office of the Attorney General Subpoena
On January 2, 2008 the Company received a subpoena for documents from the Florida Attorney General’s Office relating to the payment and
processing of rebates by the Company. The Company received subpoenas for additional documents on January 30, 2008 and on August 25,
2008. The Company is cooperating with the Florida Attorney General’s investigation and has provided a substantial number of documents in
response to the subpoenas.
Other Matters
Systemax is a party to various pending legal proceedings and disputes arising in the normal course of business, including those involving
commercial, employment, tax and intellectual property related claims, none of which, in management’s opinion, is anticipated to have a material
adverse effect on our consolidated financial statements.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
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