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): August 3, 1995
Maytag Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-655 42-0401785
(State or other (Commission (IRS Employer
jurisdiction of file Number) Identification No.)
incorporation)
403 West 4th Street North, Newton, Iowa 50208
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (515) 792-8000
N/A
(Former name or former address, if changed since last report.)
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Item 5. Other Events
The Company announced on August 3, 1995 that it has reached a settlement in
a class action lawsuit brought by former employees at its Dixie-Narco production
facility in Ranson, West Virginia, which was closed in 1991. The settlement,
which has received preliminary court approval but is subject to final court
approval, is $16.5 million or $9.9 million after tax and will be reported as a
charge in the third quarter of 1995.
A copy of the Company's press release issued August 3, 1995 is attached as
Exhibit 99(a) and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
The exhibits accompanying this report are listed in the accompanying
Exhibit Index.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Maytag Corporation
(Registrant)
By: s/s E. J. Bennett
E. J. Bennett
Secretary & Assistant
General Counsel
August 3, 1995
(Date)
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EXHIBIT INDEX
The following exhibit is filed herewith.
Exhibit No. Exhibit
99(a) Press Release.
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MAYTAG ANNOUNCES OUT-OF-COURT SETTLEMENT IN CLASS-ACTION SUIT
NEWTON, IOWA--(August 3, 1995)--Maytag Corporation today announced the
settlement of a class-action lawsuit brought by former employees at its Dixie-
Narco production facility in Ranson, W. Va., which was closed in 1991. Dixie-
Narco, a business unit of Maytag Corporation, manufactures vending machines.
The suit alleged Maytag promised not to close the Ranson plant. Maytag
maintained no promise was made to keep the plant open.
The class-action suit involved approximately 800 individuals. The
settlement amount is $16.5 million, or approximately $9.9 million after tax,
which will be reported as a charge in the third quarter of approximately 9 cents
per share. Other terms of the settlement were not announced.
Although agreeing to the financial settlement, there was no acknowledgement
by either Maytag Corporation or Dixie-Narco that their actions entitle any of
the class claimants to a right to recover payment from the companies as a result
of their employment by Dixie-Narco, or that the companies violated any
agreements with employees, or acted in ways the law does not allow.
"The original plant closing was not what we desired, but it's what was
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required by economic and business realities," said Edward H. Graham, vice
president and general counsel at Maytag. "We reluctantly agreed to settle this
case even though we believe our actions in closing the plant were lawful,
prudent, and reasonable. Yet, as the facts and circumstances evolved, the
potential risks associated with a jury trial in Jefferson County, West Virginia,
exceeded our earlier evaluation. This case was being tried in the home town of
many former employees and local feelings and prejudices ran high against the
companies. The West Virginia venue for the case amounted to a hostile and
adverse environment in which we were forced to defend ourselves, and the civil
justice system in West Virginia can be unpredictable. That's not meant to be a
criticism of the court or the jury selected to hear the case; we have no reason
to question their fairness.
"Yet, our assessment of the situation led us to settle because we were not
willing to continue to divert management attention and financial resources
indefinitely to a long, drawn-out court battle, and additional trials and
appeals, and we were not willing to expose the corporation to additional and
unpredictable risk.
"As we bring this issue to a close and move ahead, we recognize again the
personal difficulties experienced after a plant closing such as occurred here,
and wish the former employees, citizens, and community well in the future."
Maytag Corporation, headquartered in Newton, Iowa, is the leading North
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American producer of premium brand appliances, Maytag and Jenn-Air brands, and
the leading North American producer of floor care products under the Hoover
brand. The corporation also produces and markets major appliances under the
Magic Chef and Admiral brands, and under private label brands. Dixie-Narco is
the corporation's vending equipment manufacturer.
Contact Tom Schwartz at Maytag 515-791-6342<PAGE>
