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 21, 2000
ELECTRONIC CLEARING HOUSE, INC.
(Exact name of registrant as specified in its charter)
NEVADA 0-15245 93-0946274
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
28001 Dorothy Drive, Agoura Hills, California 91301
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (818) 706-8999
(Former name or former address, if changes since last report)
ITEM 5. OTHER EVENTS
On August 21, 2000, the California Superior Court, County of Los
Angeles, Central Judicial District, granted the Company's demurrers
to four of the seven causes of action in a lawsuit filed against the
Company by Premiere Lifestyles International Corporation. The
surviving causes of action for alleged damages of $10 million
include claims for breach of fiduciary duty, tortious interference
with business relations, and tortious interference with contract.
Management believes the lawsuit is without merit and intends to
defend against it vigorously. A similar lawsuit was previously filed
in Texas and subsequently withdrawn by the plaintiff upon filings of
motions to dismiss by the Company. The California lawsuit is
currently in discovery and, based upon discovery to date, legal
counsel representing the Company has informed management that there
does not appear to be sufficient facts to support or justify
liability against the Company. Legal counsel is conducting
additional discovery and investigation.
ITEM 7. EXHIBITS
Exhibit
Number Description of Document
99.1 Press release issued and dated September 1, 2000.
SIGNATURES
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.
ELECTRONIC CLEARING HOUSE, INC.
(Registrant)
By \s\ Alice L. Cheung
Alice L. Cheung, Treasurer &
Chief Financial Officer
Dated: September 1, 2000
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
September 1, 2000
PREMIER LIFESTYLES INTERNATIONAL CORPORATION
AND ELECTRONIC CLEARING HOUSE, INC. IN LAWSUIT
Agoura Hills, Calif.-- Electronic Clearing House, Inc. (NASDAQ:ECHO)
announced that on August 21, 2000, the California Superior Court, County of
Los Angeles, Central Judicial District, granted ECHO's demurrers to four of
the seven causes of action in a lawsuit filed against the Company by Premiere
Lifestyles International Corporation of Newhall, California. The surviving
causes of action for alleged damages of $10 million include claims for breach
of fiduciary duty, tortious interference with business relations, and tortious
interference with contract. Management believes the lawsuit is without merit
and intends to defend against it vigorously.
A similar lawsuit was previously filed in Texas and subsequently withdrawn
by the plaintiff upon filings of motions to dismiss by ECHO. The California
lawsuit is currently in discovery and, based upon discovery to date, legal
counsel representing ECHO has informed management that there does not appear
to be sufficient facts to support or justify liability against the Company.
Legal counsel is conducting additional discovery and investigation.
Electronic Clearing House, Inc. provides credit card processing, cash
advance services, check guarantee, check verification, check conversion,
inventory tracking and/or various Internet services to over 41,000 retail
merchants, and U-Haul dealers across the nation. ECHO also designs, develops
and integrates software and point-of-sale hardware that is utilized as credit
card processing terminals, automated money order dispensers, inventory
tracking devices, and cash advance systems.
To take advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, you are hereby cautioned that this release
contains forward-looking statements that are based upon current expectations
and involve a number of risks and uncertainties. Actual operations and
results may differ materially from those expressed in the forward-looking
statements made by the Company.
# # #
Media Contact:
Donna Rehman, Corporate Secretary URL:http://www.echo-inc.com
818-706-8999, ext. 3033 E-MAIL: [email protected]
Electronic Clearing House, Inc.
Agoura Hills, Calif.
