UNITED STATES
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 7, 1997
POLICY MANAGEMENT SYSTEMS CORPORATION
(Exact Name of registrant as specified in Charter)
South Carolina 1-10557 57-0723125
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
One PMSC Center (P.O. Box Ten)
Blythewood, SC (Columbia, SC) 29016 (29202)
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (803) 735-4000
<PAGE>
Item 5. Other Events
On February 7, 1997, Policy Management Systems Corporation issued a press
release, a copy of which is attached as Exhibit 99 to this Form 8-k and
incorporated herein by reference.
Item 7. Exhibits
Exhibit Number Description
99 Press Release dated February 6, 1997 issued by
the registrant.<PAGE>
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.
POLICY MANAGEMENT SYSTEMS CORPORATION
(Registrant)
Date: February 7, 1997 By: Timothy V. Williams
Executive Vice President
(Chief Financial Officer)<PAGE>
EXHIBIT 99
PMSC ANNOUNCES MIXED JURY VERDICT IN LAWSUIT
WITH SECURITY LIFE OF DENVER
Columbia, SC, February 7, 1997: Policy Management Systems Corporation
(NYSE:PMS)(PMSC) previously reported that Security Life of Denver Insurance
Company brought suit against PMSC in alleging claims in excess of $80 million
arising out of certain contract and other disputes.
Late Wednesday, in a mixed result a federal court jury in Denver, Colorado
returned a verdict of $3.5 million against PMSC. The company believes that the
facts presented at trial do not support the verdict for breach of contract or
the award of any damages and may apply to the trial judge for post-trial relief
and, of necessary, appeal to the United States Court of Appeals.
The same jury found that Security Life was still using PMSC's systems to
process its life insurance business and found Security Life responsible for
knowingly misappropriating PMSC's trade secrets. PMSC also noted that the court
and the jury entered judgements in favor of PMSC against Security Life's claims
of fraud and unfair trade practices. Still pending before the US District Court
is PMSC's request for a court order requiring the immediate return of all PMSC
trade secret materials and ordering Security Life to immediately cease any
further use of PMSC systems.
"We feel somewhat vindicated by the jury's verdict. Of course we are
disappointed with the fact that any damages were awarded. However, we had tried
for years to resolve this dispute on a rational business basis," said Stephen G.
Morrison, executive vice president and general counsel. "We are pleased that the
jury awarded only a very small percentage of the claims sought by Security Life,
and that it entered judgements in our favor on a number of important points.
Furthermore, the verdict does not have a material effect on the company's
overall financial position,"
PMSC is currently reviewing the verdict to determine what special charge
impact, if any, this verdict may have on its 1996 financial statements. PMSC is
vigorously pursuing a claim against its own insurance carrier for coverage in
the Security Life matter.
PMSC, headquartered in Columbia, South Carolina, is a leading provider of
application software, related automation support and information services
designed to meet the needs of the global insurance and financial services
industries.
