ACE Cash Express Announces Approval By Court of Settlement of Short-Term Loan Lawsuit
16 December 2003 - 6:55AM
PR Newswire (US)
ACE Cash Express Announces Approval By Court of Settlement of
Short-Term Loan Lawsuit DALLAS, Dec. 15 /PRNewswire-FirstCall/ --
ACE Cash Express, Inc. announced today that the U. S. District
Court in Dallas, Texas has approved the settlement agreement ACE
signed on May 13, 2003, regarding the nationwide class-action
lawsuit Purdie v. ACE Cash Express, Inc. and Goleta National Bank.
The settlement agreement provides for the release of substantially
all of the claims that were asserted or could have been asserted in
the Purdie lawsuit and/or in other pending lawsuits against ACE
regarding the former offering of Goleta National Bank (GNB)
short-term loans at ACE stores. The settlement agreement provides
that within 60 days of the lapse of the period for filing an appeal
of the court's approval order, ACE must pay certain amounts and
must begin to comply with other, continuing obligations under the
settlement agreement, the terms of which have most recently been
described in ACE's Form 10-K filed with the Securities and Exchange
Commission on September 26, 2003. ACE established a reserve in the
third quarter of fiscal 2003 and most of the expected payments have
been funded by $4.7 million paid by two insurers. Forward-looking
Statements This release contains certain "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements are generally identified by
the use of words such as "expect," "anticipate," "estimate,"
"believe," "intend," "plan," "target," "goal," "should," "would,"
and terms with similar meanings. Although ACE believes that the
current views and expectations reflected in these forward-looking
statements are reasonable, those views and expectations, and the
related statements, are based on the assumptions of ACE's
management and are inherently subject to risks, uncertainties, and
other factors, many of which are not under ACE's control and may
not even be predictable. Any inaccuracy in the assumptions, as well
as those risks, uncertainties, and other factors, could cause the
actual results to differ materially from those projected in the
forward-looking statements. There is a risk that the order
approving the Purdie settlement agreement will be appealed and
that, if appealed, the approval order will be reversed. Other
risks, uncertainties, and factors bearing upon ACE, its financial
condition and its financial results include, but are not limited
to, matters described in ACE's reports filed with the Securities
and Exchange Commission, such as: -- Competition within the
check-cashing industry as well as from banks, saving and loans,
short-term consumer lenders, and other similar financial services
entities and from other retail businesses that offer products and
services offered by ACE; -- Maintenance of relationships with
providers of financing for ACE and with key providers of products
and services either offered by ACE to its customers or used by ACE
in its business; -- Changes in laws, regulations or accounting
standards and decisions or actions taken by courts, regulators and
governmental authorities; -- Availability of financing, suitable
locations, acquisition opportunities and experienced management to
implement ACE's growth strategy; -- Increases in interest rates,
which would increase ACE's borrowing costs; -- Lawsuits and
regulatory proceedings and their respective results, including
settlements. ACE does not assume, but expressly disclaims, any
obligation to update or revise any of these forward-looking
statements, whether because of future events, new information, a
change in ACE's views or expectations, or otherwise. ACE makes no
prediction or statement about the performance of ACE's Common
Stock. About the Company ACE Cash Express, Inc. is headquartered in
Irving, Texas and is the largest owner, operator and franchiser of
check-cashing stores in the United States. Founded in 1968, the
Company had a total network of 1,174 stores, consisting of 968
company-owned stores and 206 franchised stores in 36 states and the
District of Columbia as of September 30, 2003. ACE also operates
self-service machines, which provide check-cashing or other
financial services without the need for a service associate, at 20
company-owned store locations, 22 third-party bill-payment
locations, and, during the tax season, ACE plans to place
approximately 220 machines at H&R Block retail offices. ACE
offers a broad range of check-cashing and other consumer financial
services. ACE is one of the largest providers of MoneyGram wire
transfer transactions, and it offers money orders, bill payment
services, and prepaid local and long distance telecommunication
services. Small, short-term consumer loans are also available to
customers at various ACE company-owned stores. The Company's
website is found at http://www.acecashexpress.com/ . DATASOURCE:
ACE Cash Express, Inc. CONTACT: Eric Norrington, Vice President of
Communications, +1-972-550-5032, or , or Darla Ashby, Director of
Public Affairs, +1-972-550-5037, or , both of ACE Cash Express,
Inc. Web site: http://www.acecashexpress.com/
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