8-KOther Events

Fidelity National Information Services, Inc. 8-K Report (Nov 12, 2002)

Filed November 12, 2002For Securities:FIS

Summary

This 8-K filing from Certegy Inc. (formerly Fidelity National Information Services, Inc., based on context of filings around this time, though the report specifies Certegy Inc. as the registrant) on November 12, 2002, primarily discloses a settlement for a class action lawsuit. The company has reached an agreement to pay $3.975 million to resolve claims related to the improper assessment of service charges on unpaid checks between August 1992 and December 31, 1996. This settlement, if approved by the court, would fully and finally release Certegy from all asserted claims. The financial impact of this settlement will be recognized as a pre-tax charge of $3.975 million, equating to $0.035 per diluted share, as of September 30, 2002. This accounting treatment is in accordance with GAAP (FASB Statement No. 5 and AICPA SAS No. 1), as the settlement provides evidence of conditions existing at the reporting date and became available prior to the issuance of the quarterly financial statements. The filing also references an updated Consolidated Statement of Income for the periods ending September 30, 2002, as an exhibit.

Key Highlights

  • 1Certegy Inc. has agreed to a $3.975 million settlement to resolve a class action lawsuit concerning service charges on unpaid checks.
  • 2The lawsuit alleged violations of the Federal Fair Debt Collection Practices Act and California's Unfair Business Practices Act.
  • 3The settlement covers alleged improper service charges assessed between August 1992 and December 31, 1996.
  • 4The company will record a pre-tax charge of $3.975 million as of September 30, 2002.
  • 5The charge is estimated to reduce diluted earnings per share by $0.035.
  • 6The settlement is contingent upon court approval and provides a full and final release of all claims.
  • 7An updated Consolidated Statement of Income for Q3 2002 is provided as an exhibit.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a material event: Certegy Inc.'s agreement to settle a class action lawsuit for $3.975 million. This settlement resolves claims related to the company's assessment of service charges on unpaid checks.

Certegy Inc. will record a pre-tax charge of $3.975 million as of September 30, 2002. This charge is expected to reduce the company's diluted earnings per share by $0.035.

The lawsuit alleged that Certegy Inc. improperly assessed a service charge on unpaid checks between August 1992 and December 31, 1996, which plaintiffs claimed violated the Federal Fair Debt Collection Practices Act and California's Unfair Business Practices Act.

The settlement is outlined in a Memorandum of Understanding (MOU) and is subject to court approval. If approved, it will result in a full and final release of all claims asserted in the lawsuit against Certegy Inc.