21.12.2005 00:00:00
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CCC Announces Final Approval in National Class Action Litigation in Madison County, IL
CCC Information Services Inc., a subsidiary of CCC InformationServices Group Inc. (Nasdaq:CCCG), today announced that the IllinoisCircuit Court for Madison County, Illinois has issued an ordergranting final approval of the settlement agreed to by the company, 15of its customers and the plaintiffs in various class actionsconsolidated in Madison County, Illinois, In re Total Loss ClassAction Litigation Case Nos. 01 L 157, et al. The settlement includesno admission of liability or wrongdoing by CCC or its customers.
The Honorable Judge Ralph Mendelsohn entered an order today givingfinal approval to the settlements and directing the implementation oftheir final terms. In July 2005, the Company announced that it hadreceived the Court's preliminary approval for settlement of thesecases, which relate to the valuation of vehicles that have beendeclared a total loss by insurers.
"We are very pleased to see this matter near a close," saidGithesh Ramamurthy, Chairman and Chief Executive Officer of CCC. "TheCourt's decision confirms that the settlement terms are equitable forall parties. We, in turn, believe that this is a very good result forCCC and its customers."
The settlement requires CCC to pay notice and administration feesand other costs associated with the settlement. The administrativeprocess is underway, and the Company estimates that these costs willtotal approximately $8 million, including available insurance proceedsof $1.8 million. The Company is fully reserved for these payments. CCCwill also engage the services of an independent, third party as aCourt-appointed monitor for five years following settlement. Themonitor will periodically review the methodology used in CCC'svaluation product and oversee the performance of various productvalidation studies.
About CCC
CCC Information Services Group Inc. (NASDAQ:CCCG), headquarteredin Chicago, is a leading supplier of advanced software, communicationssystems, Internet and wireless-enabled technology solutions to theautomotive claims and collision repair industries. Itstechnology-based products and services optimize efficiency throughoutthe entire claims management supply chain and facilitate communicationamong approximately 21,000 collision repair facilities, 350 insurancecompanies, and a range of industry participants. For more informationabout CCC Information Services, visit CCC's Web site at www.cccis.com.
This release contains statements that constitute forward-lookingstatements within the meaning of Section 27A of the Securities Act of1933 and Section 21E of the Securities Exchange Act of 1934 and aresubject to the safe harbor provisions of those sections and thePrivate Securities Litigation Reform Act of 1995. Investors arecautioned that any such forward-looking statements are not guaranteesof future performance and involve risks and uncertainties, includingthose described in the Company's filings with the SEC, and that actualresults or developments may differ materially from those in theforward-looking statements. Specific factors that might cause actualresults to differ from expectations include, but are not limited to,competition in the automotive claims and collision repair industries,the ability to develop new products and services, the prolonged salesand implementation cycles of some of the Company's new products, theability to protect trade secrets and proprietary information, theability to generate the cash flow necessary to meet the Company'sobligations, the outcome of certain legal proceedings, and otherfactors. The Company cannot predict whether other existing casesrelating to total loss valuations can be resolved on comparable termsor whether additional suits may be filed in the future. Readers arecautioned not to place undue reliance on these forward-lookingstatements, which reflect management's analysis, judgment, belief orexpectation only as of the date hereof. The Company has based theseforward-looking statements on information currently available anddisclaims any intention or obligation to update or revise anyforward-looking statement.
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