TTEC » Topics » Legal Proceedings

These excerpts taken from the TTEC 10-K filed Feb 23, 2009.
ITEM 3.  LEGAL PROCEEDINGS
 
From time to time, we have been involved in claims and lawsuits, both as plaintiff and defendant, which arise in the ordinary course of business. Accruals for claims or lawsuits have been provided for to the extent that losses are deemed both probable and estimable. Although the ultimate outcome of these claims or lawsuits cannot be ascertained, on the basis of present information and advice received from counsel, we believe that the disposition or ultimate resolution of such claims or lawsuits will not have a material adverse effect on our financial position, cash flows or results of operations.
 
Securities Class Action
 
On January 25, 2008, a class action lawsuit was filed in the United States District Court for the Southern District of New York entitled Beasley v. TeleTech Holdings, Inc., et al. against TeleTech, certain current directors and officers and others alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act, Section 10(b) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder and Section 20(a) of the Securities Exchange Act. The complaint alleges, among other things, false and misleading statements in the Registration Statement and Prospectus in connection with (i) a March 2007 secondary offering of common stock and (ii) various disclosures made and periodic reports filed by us between February 8, 2007 and November 8, 2007. On February 25, 2008, a second nearly identical class action complaint, entitled Brown v. TeleTech Holdings, Inc., et al., was filed in the same court. On May 19, 2008, the actions described above were consolidated under the caption In re: TeleTech Litigation and lead plaintiff and lead counsel were approved. TeleTech and the other individual defendants intend to defend this case vigorously. Although we expect the majority of expenses related to the class action lawsuit to be covered by insurance, there can be no assurance that all of such expenses will be reimbursed.
 
Derivative Action
 
On July 28, 2008, a shareholder derivative action was filed in the Court of Chancery, State of Delaware, entitled Susan M. Gregory v. Kenneth D. Tuchman, et al., against certain of TeleTech’s former and current


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officers and directors alleging, among other things, that the individual defendants breached their fiduciary duties and were unjustly enriched in connection with: (i) equity grants made in excess of plan limits; and (ii) manipulating the grant dates of stock option grants from 1999 through 2008. TeleTech is named solely as a nominal defendant against whom no recovery is sought. Although we expect the majority of expenses related to the shareholder derivative action to be covered by insurance, there can be no assurance that all such expenses will be reimbursed.
 
ITEM 3.  LEGAL
PROCEEDINGS



 



From time to time, we have been involved in claims and lawsuits,
both as plaintiff and defendant, which arise in the ordinary
course of business. Accruals for claims or lawsuits have been
provided for to the extent that losses are deemed both probable
and estimable. Although the ultimate outcome of these claims or
lawsuits cannot be ascertained, on the basis of present
information and advice received from counsel, we believe that
the disposition or ultimate resolution of such claims or
lawsuits will not have a material adverse effect on our
financial position, cash flows or results of operations.


 




Securities
Class Action



 



On January 25, 2008, a class action lawsuit was filed in
the United States District Court for the Southern District of
New York entitled Beasley v. TeleTech Holdings, Inc., et
al.
against TeleTech, certain current directors and officers
and others alleging violations of Sections 11, 12(a)(2) and
15 of the Securities Act, Section 10(b) of the Securities
Exchange Act and
Rule 10b-5
promulgated thereunder and Section 20(a) of the Securities
Exchange Act. The complaint alleges, among other things, false
and misleading statements in the Registration Statement and
Prospectus in connection with (i) a March 2007 secondary
offering of common stock and (ii) various disclosures made
and periodic reports filed by us between February 8, 2007
and November 8, 2007. On February 25, 2008, a second
nearly identical class action complaint, entitled
Brown v. TeleTech Holdings, Inc., et al., was filed
in the same court. On May 19, 2008, the actions described
above were consolidated under the caption In re: TeleTech
Litigation
and lead plaintiff and lead counsel were
approved. TeleTech and the other individual defendants intend to
defend this case vigorously. Although we expect the majority of
expenses related to the class action lawsuit to be covered by
insurance, there can be no assurance that all of such expenses
will be reimbursed.


 




Derivative
Action



 



On July 28, 2008, a shareholder derivative action was filed
in the Court of Chancery, State of Delaware, entitled Susan
M. Gregory v. Kenneth D. Tuchman, et al.
, against
certain of TeleTech’s former and current





17





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officers and directors alleging, among other things, that the
individual defendants breached their fiduciary duties and were
unjustly enriched in connection with: (i) equity grants
made in excess of plan limits; and (ii) manipulating the
grant dates of stock option grants from 1999 through 2008.
TeleTech is named solely as a nominal defendant against whom no
recovery is sought. Although we expect the majority of expenses
related to the shareholder derivative action to be covered by
insurance, there can be no assurance that all such expenses will
be reimbursed.


 




Legal Proceedings
 
On January 25, 2008, a class action lawsuit was filed in the United States District Court for the Southern District of New York entitled Beasley v. TeleTech Holdings, Inc., et al. against TeleTech, certain current directors and officers and others alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act, Section 10(b) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder and Section 20(a) of the Securities Exchange Act. The complaint alleges, among other things, false and misleading statements in the Registration Statement and Prospectus in connection with (i) a March 2007 secondary offering of common stock and (ii) various disclosures made and periodic reports filed by the Company between February 8, 2007 and November 8, 2007. On February 25, 2008, a second nearly identical class action complaint, entitled Brown v. TeleTech Holdings, Inc., et al., was filed in the same court. On May 19, 2008, the actions described above were consolidated under the caption In re: TeleTech Litigation and lead plaintiff and lead counsel were approved. TeleTech and the other individual defendants intend to defend this case vigorously. Although the Company expects the majority of expenses related to the class action lawsuit to be covered by insurance, there can be no assurance that all of such expenses will be reimbursed.
 
On July 28, 2008, a shareholder derivative action was filed in the Court of Chancery, State of Delaware, entitled Susan M. Gregory v. Kenneth D. Tuchman, et al., against certain of TeleTech’s former and current officers and directors alleging, among other things, that the individual defendants breached their fiduciary duties and were unjustly enriched in connection with: (i) equity grants made in excess of plan limits; and (ii) manipulating the grant dates of stock option grants from 1999 through 2008. TeleTech is named solely as a nominal defendant against whom no recovery is sought. Although the Company expects the majority of expenses related to the shareholder derivative action to be covered by insurance, there can be no assurance that all such expenses will be reimbursed.
 
From time to time, the Company has been involved in claims and lawsuits, both as plaintiff and defendant, which arise in the ordinary course of business. Accruals for claims or lawsuits have been provided for to the extent that losses are deemed both probable and estimable. Although the ultimate outcome of these claims or lawsuits cannot be ascertained, on the basis of present information and advice received from counsel, the Company believes that the disposition or ultimate resolution of such claims or lawsuits will not have a material adverse effect on the Company or its Consolidated Financial Statements.
 
(16)   LEASES
 
Legal
Proceedings



 



On January 25, 2008, a class action lawsuit was filed in
the United States District Court for the Southern District of
New York entitled Beasley v. TeleTech Holdings, Inc., et
al.
against TeleTech, certain current directors and officers
and others alleging violations of Sections 11, 12(a)(2) and
15 of the Securities Act, Section 10(b) of the Securities
Exchange Act and
Rule 10b-5
promulgated thereunder and Section 20(a) of the Securities
Exchange Act. The complaint alleges, among other things, false
and misleading statements in the Registration Statement and
Prospectus in connection with (i) a March 2007 secondary
offering of common stock and (ii) various disclosures made
and periodic reports filed by the Company between
February 8, 2007 and November 8, 2007. On
February 25, 2008, a second nearly identical class action
complaint, entitled Brown v. TeleTech Holdings, Inc., et
al.,
was filed in the same court. On May 19, 2008, the
actions described above were consolidated under the caption
In re: TeleTech Litigation and lead plaintiff and lead
counsel were approved. TeleTech and the other individual
defendants intend to defend this case vigorously. Although the
Company expects the majority of expenses related to the class
action lawsuit to be covered by insurance, there can be no
assurance that all of such expenses will be reimbursed.


 



On July 28, 2008, a shareholder derivative action was filed
in the Court of Chancery, State of Delaware, entitled Susan
M. Gregory v. Kenneth D. Tuchman, et al.
, against
certain of TeleTech’s former and current officers and
directors alleging, among other things, that the individual
defendants breached their fiduciary duties and were unjustly
enriched in connection with: (i) equity grants made in
excess of plan limits; and (ii) manipulating the grant
dates of stock option grants from 1999 through 2008. TeleTech is
named solely as a nominal defendant against whom no recovery is
sought. Although the Company expects the majority of expenses
related to the shareholder derivative action to be covered by
insurance, there can be no assurance that all such expenses will
be reimbursed.


 



From time to time, the Company has been involved in claims and
lawsuits, both as plaintiff and defendant, which arise in the
ordinary course of business. Accruals for claims or lawsuits
have been provided for to the extent that losses are deemed both
probable and estimable. Although the ultimate outcome of these
claims or lawsuits cannot be ascertained, on the basis of
present information and advice received from counsel, the
Company believes that the disposition or ultimate resolution of
such claims or lawsuits will not have a material adverse effect
on the Company or its Consolidated Financial Statements.


 















(16)  

LEASES


 




Legal Proceedings
 
On January 25, 2008, a class action lawsuit was filed in the United States District Court for the Southern District of New York entitled Beasley v. TeleTech Holdings, Inc., et. al. against TeleTech, certain current directors and officers and others alleging violations of Sections 11, 12(a) (2) and 15 of the Securities Act, Section 10(b) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder and Section 20(a) of the Securities Exchange Act. The complaint alleges, among other things, false and misleading statements in the Registration Statement and Prospectus in connection with (i) a March 2007 secondary offering of its common stock and (ii) various disclosures made and periodic reports filed by us between February 8, 2007 and November 8, 2007. On February 25, 2008, a second nearly identical class action complaint, entitled Brown v. TeleTech Holdings, Inc., et al., was filed in the same court. On May 19, 2008, the actions described above were consolidated under the caption In re: TeleTech Litigation and lead plaintiff and lead counsel were approved by the court. TeleTech and the other individual defendants intend to defend this case vigorously. Although the Company expects the majority of expenses related to the class action lawsuit to be covered by insurance, there can be no assurance that all of such expenses will be reimbursed.
 
From time-to-time, the Company has been involved in claims or lawsuits, both as plaintiff and defendant, that arise in the ordinary course of business. Accruals for claims or lawsuits have been provided to the extent that losses are deemed both probable and estimable. Although the ultimate outcome of these claims or lawsuits cannot be ascertained, on the basis of present information and advice received from counsel, the Company believes that the disposition or ultimate resolution of such claims or lawsuits will not have a material adverse effect on the Company.
 
The Company expenses legal costs as incurred and includes these costs in Selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income.
 
(18)   LEASES
 
Legal
Proceedings



 



On January 25, 2008, a class action lawsuit was filed in
the United States District Court for the Southern District of
New York entitled Beasley v. TeleTech Holdings, Inc.,
et. al.
against TeleTech, certain current directors and
officers and others alleging violations of Sections 11,
12(a) (2) and 15 of the Securities Act, Section 10(b)
of the Securities Exchange Act and
Rule 10b-5
promulgated thereunder and Section 20(a) of the Securities
Exchange Act. The complaint alleges, among other things, false
and misleading statements in the Registration Statement and
Prospectus in connection with (i) a March 2007 secondary
offering of its common stock and (ii) various disclosures
made and periodic reports filed by us between February 8,
2007 and November 8, 2007. On February 25, 2008, a
second nearly identical class action complaint, entitled
Brown v. TeleTech Holdings, Inc., et al., was filed
in the same court. On May 19, 2008, the actions described
above were consolidated under the caption In re: TeleTech
Litigation
and lead plaintiff and lead counsel were approved
by the court. TeleTech and the other individual defendants
intend to defend this case vigorously. Although the Company
expects the majority of expenses related to the class action
lawsuit to be covered by insurance, there can be no assurance
that all of such expenses will be reimbursed.


 



From
time-to-time,
the Company has been involved in claims or lawsuits, both as
plaintiff and defendant, that arise in the ordinary course of
business. Accruals for claims or lawsuits have been provided to
the extent that losses are deemed both probable and estimable.
Although the ultimate outcome of these claims or lawsuits cannot
be ascertained, on the basis of present information and advice
received from counsel, the Company believes that the disposition
or ultimate resolution of such claims or lawsuits will not have
a material adverse effect on the Company.


 



The Company expenses legal costs as incurred and includes these
costs in Selling, general and administrative expenses in the
Consolidated Statements of Operations and Comprehensive Income.


 















(18)  

LEASES


 




This excerpt taken from the TTEC 10-K filed Feb 7, 2007.
Legal Proceedings
 
From time to time, the Company may be involved in claims or lawsuits that arise in the ordinary course of business. Accruals for claims or lawsuits have been provided for to the extent that losses are deemed both probable and estimable. Although the ultimate outcome of these claims or lawsuits cannot be ascertained, on the basis of present information and advice received from counsel, it is management’s opinion that the disposition or ultimate determination of such claims or lawsuits will not have a material adverse effect on the Company.


F-31


 

 
TELETECH HOLDINGS, INC. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
As of and for the Years Ended December 31, 2006, 2005 and 2004

 
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