Ccc Information Services (NASDAQ:CCCG)
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From May 2019 to May 2024
Settlement calls for resolution of class action suits
against the Company in Madison County involving its
valuation product but includes no admission of fault
CCC Information Services Inc., a subsidiary of CCC Information
Services Group Inc. (Nasdaq:CCCG), today announced it and 15 of its
customers signed a settlement agreement with the plaintiffs in various
class action suits pending in Madison County, Illinois. These
consolidated suits, In re Total Loss Class Action Litigation, Case
Nos. 01 L 157, et al., relate to the valuation of vehicles that have
been declared total losses by insurers. This settlement includes no
admission of liability or wrongdoing by CCC or its customers. The
proposed classes represent all customers of the settling carriers who
had a total loss claim from January 28, 1989 to the present, for which
CCC's product and service (now called CCC Valuescope(R)) were used to
perform the valuation.
The settlement itself is subject to Court approval, and a motion
seeking preliminary approval of the settlement was filed with the
Court today. Notice to members of the settling classes will then be
issued, and the Company anticipates that a final approval hearing will
take place before the end of the year.
"We are pleased that we have been able to work with our
participating insurance company customers and agree upon terms that
are equitable for all involved," said Robert S. Guttman, Senior Vice
President and General Counsel for CCC. "The Company has a strong
belief in the integrity and accuracy of our valuation product and
service. We concluded, however, that settlement of these suits is the
best course of action in order to avoid further protracted litigation,
expense and distraction."
Terms of the settlement agreement will require CCC to pay notice
and administration fees and other costs associated with the
settlement. The Company estimates that these costs will total
approximately $8 million, and including available insurance proceeds
of $1.8 million, the Company is fully reserved for these payments.
Other settlement costs, including claims by class members, will be
paid by the insurance companies that are participating in the
settlement. In addition to its settlement contribution, CCC will also
engage the services of an independent, third party as a
Court-appointed monitor to periodically review CCC Valuescope's
methodology for five years following settlement and to oversee the
performance of various product validation studies.
About CCC
CCC Information Services Group Inc. (NASDAQ: CCCG), headquartered
in Chicago, is a leading supplier of advanced software, communications
systems, Internet and wireless-enabled technology solutions to the
automotive claims and collision repair industries. Its
technology-based products and services optimize efficiency throughout
the entire claims management supply chain and facilitate communication
among approximately 21,000 collision repair facilities, 350 insurance
companies, and a range of industry participants. For more information
about CCC Information Services, visit CCC's Web site at www.cccis.com.
This release contains statements that constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934 and are
subject to the safe harbor provisions of those sections and the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that any such forward-looking statements are not guarantees
of future performance and involve risks and uncertainties, including
those described in the Company's filings with the SEC, and that actual
results or developments may differ materially from those in the
forward-looking statements. Specific factors that might cause actual
results 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 sales
and implementation cycles of some of the Company's new products, the
ability to protect trade secrets and proprietary information, the
ability to generate the cash flow necessary to meet the Company's
obligations, the outcome of certain legal proceedings including court
approval of class action litigation and negotiation of settlement
documentation, and other factors. The Company cannot predict whether
other existing cases relating to total loss valuations can be resolved
on comparable terms or whether additional suits may be filed in the
future. Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis,
judgment, belief or expectation only as of the date hereof. The
Company has based these forward-looking statements on information
currently available and disclaims any intention or obligation to
update or revise any forward-looking statement.