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) January 30, 1997
Mercury Finance Company
(Exact name of registrant as specified in charter)
Delaware 1-10176 36-3627010
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
100 Field Drive, Lake Forest, Illinois 60045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 295-8600
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
The Company has been named as a defendant in a variety of lawsuits
generally arising from the Company's announcement on January 29, 1997 that it
would restate its earnings for fiscal years ended December 31, 1993 through
December 31, 1996 as a result of accounting irregularities. To date, twenty-six
actions have been filed in federal court in Chicago, one has been filed in
federal court in Grand Rapids, Michigan, three have been filed in Illinois state
court, and seven have been filed in Delaware state court. The captions and case
numbers for each of these cases is set forth on Exhibit 99.1.
Each of the federal lawsuits is a class action which alleges claims under
Section 10 of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. These lawsuits name one or more officers or directors of the
Company as additional defendants, and some of the lawsuits name the Company's
previous independent accountant, KPMG Peat Marwick LLP ("KPMG"), as an
additional defendant. Two of the Illinois state court actions are class actions
alleging claims under the Illinois Securities Act, the Illinois Consumer Fraud
and Deceptive Business Practices Act and common law claims of fraud and
negligent misrepresentation. The third Illinois state court action is a
derivative action which seeks to recover damages on behalf of the Company from
certain of the Company's officers and directors. Each of the seven Delaware
state court actions is a derivative action which seeks to recover damages on
behalf of the Company from certain of the Company's officers and directors.
Some of the Delaware actions also name KPMG as an additional defendant.
The Securities and Exchange Commission is investigating the events giving
rise to the accounting irregularities. Those events are also under
investigation by the United States Attorney for the Northern District of
Illinois and the Federal Bureau of Investigation, which executed a search
warrant on the Company's premises on February 3, 1997. The Company is
cooperating fully in these investigations.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description of Document
99.1 Captions and case numbers of certain pending
litigation.
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.
Mercury Finance Company
Date: March 5, 1997 By: Bradley Vallem
Its: AVP & Treasurer
Exhibit 99.1
1. Daniel Raftery, individually and on behalf of all others
similarly situated v. Mercury Finance Co., John N. Brincat, James
A. Doyle and Bradley S. Vallem, No. 97 C 0624 (N.D. Ill.);
2. Jay Levin, on behalf of himself and all others similarly situated
v. John N. Brincat, James A. Doyle and Mercury Finance Co., No.
97 C 0630 (N.D. Ill.);
3. Anne Shapiro, on her own behalf and on behalf of all others
similarly situated v. Mercury Finance Co., John N. Brincat, James
A. Doyle and Bradley S. Vallem, No. 97 C 0631 (N.D. Ill.);
4. Doris Chen, on behalf of herself and all others similarly
situated v. Mercury Finance Co., John N. Brincat, James A. Doyle,
Charley Pond, and Bradley S. Vallem, No. 97 C 0634 (N.D. Ill.);
5. Mendel Bernstein, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John N. Brincat, James A. Doyle,
Charley A. Pond and Bradley S. Vallem, No. 97 C 0648 (N.D. Ill.);
6. James Robinson, Jr., on behalf of himself and all others
similarly situated v. Mercury Finance Co., John N. Brincat, James
A. Doyle and Bradley S. Vallem, No. 97 C 0650 (N.D. Ill.);
7. Multi-Measurements Inc. Pension Plan, John LaReddola, Trustee v.
Mercury Finance Co., John N. Brincat, James A. Doyle and KPMG
Peat Marwick, LLP, No. 97 C 0653 (N.D. Ill.);
8. David Greenberg, on behalf of himself and all others similarly
situated v. John N. Brincat, John N. Brincat, Jr., James A.
Doyle, William C. Croft, Mercury Finance Co., and KPMG Peat
Marwick, No. 97 C 0654 (N.D. Ill.);
9. William Holder, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John N. Brincat, John N.
Brincat, Jr., James A. Doyle, Clifford R. Johnson, Andrew McNally
IV and Phillip J. Wicklander, Fred G. Steingrabber, No. 97 C 0655
(N.D. Ill.);
10. Harold Baron and Arnold Malakoff, on behalf of themselves and all
others similarly situated v. Mercury Finance Co., John N.
Brincat, James A. Doyle and Bradley S. Vallem, No. 97 C 0687
(N.D. Ill.);
11. Margery Harwood, individually and on behalf of all others
similarly situated v. Mercury Finance Co., John N. Brincat, James
A. Doyle and Bradley S. Vallem, No. 97 C 0702 (N.D. Ill.);
12. Edward Heldenbrand and Rick Montejano, on behalf of themselves
and all others similarly situated v. John N. Brincat, John N.
Brincat, Jr., James A. Doyle, William C. Croft, Mercury Finance
Co., and KPMG Peat Marwick, No. 97 C 0705 (N.D. Ill.);
13. Eugene Lyman, on his behalf and behalf of all others similarly
situated v. Mercury Finance Co., John N. Brincat, James A. Doyle
and Bradley S. Vallem and KPMG Peat Marwick, LLP, No. 97 C 0709
(N.D. Ill.);
14. Johannes P. Hofer, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John N. Brincat, James A. Doyle
and Bradley S. Vallem, No. 97 C 0715 (N.D. Ill.);
15. Jerome H. Berkowitz and Edythe Berkowitz, on behalf of themselves
and all others similarly situated v. Mercury Finance Co., John N.
Brincat, James A. Doyle, Charley A. Pond and Bradley S. Vallem,
No. 97 C 0758 (N.D. Ill.);
16. Raymond M. Duttmers Trust, by Raymond M. Duttmers, individually
and on behalf of all others similarly situated v. Mercury Finance
Co., John N. Brincat and James A. Doyle, No. 97 C 0768 (N.D.
Ill.);
17. Dudley Davis, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John N. Brincat, Bradley S.
Vallem and James A. Doyle, No. 97 C 0783 (N.D. Ill.);
18. Elizabeth Bozza, on behalf of herself and all others similarly
situated v. John N. Brincat, John N. Brincat, Jr., James A.
Doyle, William C. Croft, Mercury Finance Co., and KPMG Peat
Marwick, No. 97 C 0784 (N.D. Ill.);
19. Robert Angler, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John H. Brincat, James A. Doyle,
John N. Brincat, Jr., and KPMG Peat Marwick, No. 97 C 0803 (N.D.
Ill.);
20. David Deradorian, Trustee for the David Deradorian Living Trust
and others similarly situated v. John N. Brincat, James A. Doyle,
and Mercury Finance Co., No. 97 C 0819 (N.D. Ill.);
21. Ralph M. Walser, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John N. Brincat and James A.
Doyle, No. 97 C 0822 (N.D. Ill.); and
22. Joseph H. Schiff and Paul Y. Feng, individually and on behalf of
all others similarly situated v. Mercury Finance Co., John N.
Brincat and James A. Doyle, No. 97 C 0875 (N.D. Ill.);
23. Michael M. Massarelli and Terri J. Small, on behalf of themselves
and all others similarly situated v. Mercury Finance Co., John N.
Brincat, John N. Brincat, Jr., James A. Doyle, Charley A. Pond,
Bradley S. Vallem, and KPMG Peat Marwick, No. 97 C 0938 (N.D.
Ill.);
24. Joseph C. Sherrill, on behalf of himself and all others similarly
situated v. Mercury Finance Co., John N. Brincat, James A. Doyle,
Bradley S. Vallem, and Charley A. Pond, No. 97 C 0955 (N.D.
Ill.);
25. Retsky Family Limited Partnership, on behalf of itself and all
others similarly situated v. Mercury Finance Co., John N.
Brincat, James A. Doyle, and Bradley S. Vallem, No. 97 C 0959
(N.D. Ill.);
26. Kim Charles Meyers v. Mercury Finance Co., John N. Brincat, John
A. Doyle, and KPMG Peat Marwick, No. 97 C 1001 (N.D. Ill.);
27. Theodore Chabraja, Manuel Plotkin, Morris Ruttenberg and Robert
Waring, individually and for a class similarly situated persons
v. Mercury Finance Co., KPMG Peat Marwick LLP, James A. Doyle and
John Brincat, No. 97 CH 1277 (Cook Co. Cir. Ct.);
28. Keith H. Thorp, Jr., Kay R. Thorp, Beatrice Borre and Stanley
Manne, derivatively on behalf of Mercury Finance Co. v. Mercury
Finance Co., John N Brincat, Dennis H. Chookaszian, William C.
Croft, Clifford R. Johnson, Andrew McNally IV, Bruce I. McPhee,
Fred G. Steingraber, Philip J. Wicklander, James A. Doyle,
Charley A. Pond, Richard P. Bosson, and John J. Pratt, No. 97 CH
1440 (Cook Co. Cir. Ct.);
29. Crandon Capital Partners v. John N. Brincat, James A. Doyle and
Mercury Finance Co., No. 97 CH 1491 (Cook Co. Cir. Ct.);
30. Annalee Wexler, derivatively on behalf of Mercury Finance Co. v.
John N. Brincat, Dennis H. Chookazian, William C. Croft, Clifford
R. Johnson, Andrew McNally, IV, Bruce I. McPhee, Fred G.
Steingraber, Phillip J. Wicklander, KPMG Peat Marwick, and
Mercury Finance Co., No. 15512-NC (Del. Ch.);
31. Mark Krasnow, derivatively on behalf of Mercury Finance Co. v.
John N. Brincat, Dennis H. Chookazian, William C. Croft, Clifford
R. Johnson, Andrew McNally, IV, Bruce I. McPhee, Fred G.
Steingraber, Phillip J. Wicklander, KPMG Peat Marwick, and
Mercury Finance Co., No. 15525-NC (Del. Ch.).
32. Michael R. Trauscht, Trustee v. John N. Brincat, William C.
Croft, Clifford R. Johnson, Andrew McNally IV, Fred G.
Steingraber, Philip J. Wicklander, Bruce McPhee and Dennis H.
Chookaszian, and Mercury Finance Company, C.A. No. 15524-NC (Del.
Ch.)
33. Charles W. Damaskus v. John N. Brincat, William C. Croft,
Clifford R. Johnson, Andrew McNally IV, Fred G. Steingraber,
Philip J. Wicklander, Bruce McPhee and Dennis H. Chookaszian, and
Mercury Finance Company, C.A. No. 15546-N.C. (Del. Ch.)
34. Mindy Schwartz v. John N. Brincat, Dennis H. Chookaszian, William
C. Croft, Clifford R. Johnson, Andrew McNally IV, Bruce I.
McPhee, Fred G. Steingraber, Philip J. Wicklander, James A.
Doyle, John M. Brincat, Jr. and KPMG Peat Marwick LLP, No. CA
15567 (Del. Ch.)
35. Richard G. Grinnell v. John N. Brincat, Dennis H. Chookaszian,
William C. Croft, Clifford R. Johnson, Andrew McNally IV, Bruce
I. McPhee, Fred G. Steingraber, Philip J. Wicklander, James A.
Doyle, John M. Brincat, Jr. and KPMG Peat Marwick, LLP, No. CA
15568-NC (Del. Ch.)
36. Judith V. Cumming v. John N. Brincat, Dennis H. Chookaszian,
William C. Croft, Clifford R. Johnson, Andrew McNally IV, Bruce
I. McPhee, Fred G. Steingraber, Philip J. Wicklander, James A.
Doyle, John M. Brincat, Jr. and KPMG Peat Marwick, LLP, No. CA
15569 (Del. Ch.)
37. Norman Rautiola, individually and on behalf of all others
similarly situated individuals v. Mercury Finance Co., a Delaware
corporation, John N. Brincat, James A. Doyle, and KPMG Peat
Marwick LLP, a New Jersey Corporation, No. 97 CV 107 (W.D.Mich.)
