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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) FEBRUARY 17, 2000
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CONSUMERS U.S., INC.
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(Exact Name of Registrant as Specified in its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
333-31363-01 22-2874087
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(Commission File Number) (I.R.S. Employer Identification No.)
3140 WILLIAM FLINN HIGHWAY, ALLISON PARK, PENNSYLVANIA 15101
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(Address of Principal Executive Offices) (Zip Code)
(412) 486-9100
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(Registrant's Telephone Number, Including Area Code)
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ITEM 5. OTHER EVENTS.
On February 17, 2000, Owens-Brockway Glass Container Inc. ("Owens")
commenced an action against Consumers U.S., Inc.'s majority-owned subsidiary
Anchor Glass Container Corporation (the "Company") and certain of its
affiliates in the United States District Court for the Southern District of New
York. Owens alleges violations of the Technical Assistance and License
Agreement ("Technical Assistance Agreement") resulting in its termination.
Owens is seeking various forms of relief including (1) a permanent injunction
restraining the Company from infringing Owens' patents and using or disclosing
Owens' trade secrets and (2) damages for breaches of the Technical Assistance
Agreement. The Court will hear Owens' motion for a preliminary injunction on
April 12, 2000, which motion the Company has opposed.
The Company and its affiliates filed a demand for arbitration with the
American Arbitration Association on February 24, 2000. On March 15, 2000, the
Court ruled that the dispute as to whether there was a valid termination of the
Technical Assistance Agreement is subject to arbitration. The Company has moved
to dismiss or stay the action pending arbitration. On March 31, 2000, Owens
submitted its answer and counterclaims in the arbitration. Owens has asserted
the position that (i) the Court referred to arbitration only the question
whether there was a valid termination of the Technical Assistance Agreement and
(ii) certain of Owens' claims are not arbitrable.
The Company believes that it has meritorious defenses to Owens' claims
in the action and Owens' counterclaims in the arbitration and intends to
conduct a vigorous defense. An unfavorable outcome in this matter could have a
material and adverse effect on the Company's business prospects and financial
condition. In addition, even if the ultimate outcome of the matter is resolved
in favor of the Company, the defense of such matter may involve considerable
cost, which could be material, and could divert the efforts of management.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
CONSUMERS U.S., INC.
By: /s/ C. Kent May
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Name: C. Kent May
Title: Secretary
Date: April 4, 2000
