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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) December 24, 1998
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National TechTeam, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-16284 38-2774613
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
835 Mason Street, Suite 200 Dearborn, MI 48224
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(Address of principal executive offices) (City, State) (Zip Code)
Registrant's telephone number, including area code (313) 277-2277
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(Former name of former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On December 24, 1998, the Company issued the press release attached as Exhibit
2.1 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
2.1 Press release dated on December 24, 1998 "NATIONAL TECHTEAM, INC. ANNOUNCES
AGREEMENT TO SETTLE CLASS ACTION LAWSUIT"
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.
NATIONAL TECHTEAM, INC.
Dated: December 28, 1998 By: /s/ Lawrence A. Mills
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Lawrence A. Mills
Vice President, Chief Financial
Officer, and Treasurer
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
2.1 News Release
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EXHIBIT 2.1
[TECHTEAM LOGO] NEWS RELEASE
FOR IMMEDIATE RELEASE - DECEMBER 24, 1998 International Provider of Computer
Services
National TechTeam, Inc.
835 Mason Street, Suite 200
Dearborn, Michigan 48124 NASDAQ/NM - "TEAM"
CONTACT:
NATIONAL TECHTEAM, INC. NATIONAL TECHTEAM, INC. NATIONAL TECHTEAM, INC.
William F. Coyro, Jr. Harry A. Lewis Lawrence A. Mills
Chief Executive Officer President and Chief Financial Officer
(313)277-2277 Chief Operating Officer (313)277-2277
(313)277-2277
NATIONAL TECHTEAM, INC. ANNOUNCES
AGREEMENT TO SETTLE CLASS ACTION LAWSUIT
DEARBORN, MICHIGAN, December 24, 1998...NATIONAL TECHTEAM, INC., NASDAQ symbol
("TEAM") announced today that it has reached an agreement in principle to settle
all of the consolidated class action lawsuits that were brought against the
Company and certain of its current and former officers and directors in the
United States District Court for the Eastern District of Michigan. The terms
of the proposed settlement include a payment by the Company's insurance carrier
of $11 million to the plaintiff class. The settlement is subject to certain
contingencies, including, but not necessarily limited to, the signing of a
definitive agreement and final court approval.
In connection with this settlement, the Company expects to take a one time
charge in the Fourth Quarter 1998 of approximately $3.3 million dollars for
legal and settlement expenses.
"While TechTeam continues to believe that the Company would ultimately prevail
in each of these cases, we feel that settlement at this time is in the
Company's best interests in light of the expense, time, risk, and distraction
involved in defending the consolidated lawsuit. Focusing the Company's efforts
on increasing shareholder value is the top priority of management and all the
employees of National TechTeam," said William F. Coyro, Jr., the Company's
Chairman and CEO.
NATIONAL TECHTEAM, INC. is a leading provider of information technology
outsourcing support services to large national and multi-national corporations,
government agencies and service organizations. The Company offers its services
through three global units: (i) CORPORATE SERVICES, which provides corporations
with help desk support, technical staffing, systems integration, and
instructor-led and computer-based training; (ii) OEM CALL CENTER SERVICES,
which provides end user customers of its clients with inbound telephone support
for their computer products; and (iii) TECHTEAM CAPITAL GROUP, which consists
primarily of leasing computer-related hardware and integrated services to
corporate customers. National TechTeam is traded under the symbol "TEAM".
-more-
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[TECHTEAM LOGO]
NEWS RELEASE
The foregoing contains forward-looking statements including those relating to
management's expectations regarding the likelihood of consummation of the
settlement and the costs to be incurred by the Company in connection
therewith. The matters expressed in such statements are subject to numerous
uncertainties and risks including, but not limited to, satisfaction of the
contingencies provided for in the settlement agreement including court approval
and other conditions, as well as current expectations of TechTeam and its
management regarding completion of the settlement. Should one or more of those
uncertainties or risks materialize, or should underlying assumptions prove
incorrect, the outcome of the settlement negotiations and the settlement
agreement may vary materially from that described as forward-looking
statements. TechTeam does not necessarily intend to update those
forward-looking statements.
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