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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): June 13, 1996
CHECKERS DRIVE-IN RESTAURANTS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-19649 58-1654960
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
600 Cleveland Street, 8th Floor
Clearwater, Florida 34615
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 813-441-3500
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This Instrument contains 7 pages.
The Exhibit Index appears on Page 5.
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ITEM 5. OTHER EVENTS.
On June 13, 1996, Checkers Drive-In Restaurants, Inc. ("Checkers" or
the "Registrant") was notified of the existence of a default judgment entered
against it in the U. S. District Court for the Northern District of Illinois,
Eastern Division, in a proceeding entitled Ihor Kleban v. Checkers Drive-In
Restaurants, Inc., Meridian Restaurant Group, Inc., Burling Bank, S.Y.S.
Restaurant Management Inc., International Double Drive-Thru, Inc., Andrew Sun,
John Young, Thomas J. Singer, John D. Terzakis, individually and d/b/a Midwest
Properties, Willowbrook Restaurant Corporation, Illinois Petroleum Co.,
Restaurant Development Corporation, James W. Thompson, Jr., Joseph P. Tedesco,
Jr., John A. Garrity III, Esq., and Greenscape Landscaping, Inc., Case number
95 C 2920. The case involves a dispute between a Checkers franchisee and one
of its investors. The complaint filed in the case alleges common law fraud,
negligent misrepresentation and violation of various state and federal
securities laws by the franchisee in connection with the sale of interests in
the partnership, as well as conversion of partnership funds by the franchisee.
It alleges that Checkers knew about, supported or helped the franchisee engage
in its alleged illegal schemes, and also alleges violation of the Racketeer
Influenced and Corrupt Organizations Act ("RICO") by Checkers and the other
defendants.
Checkers was served with a copy of the complaint in the case on
February 7, 1996. Checkers believed that the suit against Checkers was
baseless and without merit, and it promptly instructed its counsel in Chicago,
which was already working on other matters relating to the bankruptcy of the
franchisee in question, to defend the suit. Due to miscommunications between
Checkers and such counsel, no answer to the complaint was filed, and the court
entered a default judgment against Checkers in the amount of $4.1 million
dollars on June 7, 1996.
On June 21, 1996, Checkers filed a motion in the U.S. District Court
for the Northern District of Illinois, Eastern Division, to vacate and set
aside the default judgment. The motion was heard by the court on June 28,
1996, and the court found in Checkers' favor and vacated the default judgment.
Checkers continues to believe that the suit against it is baseless and without
merit and it intends to vigorously defend the suit.
Checkers was notified on June 25, 1996, that writs of garnishment had
been issued by the U. S. District Court for the Southern District of Florida
based upon the default judgment and that the writs had been served upon banks
in which Checkers maintains significant depository accounts. Later that same
day, Checkers obtained a temporary restraining order from the U.S. District
Court for the Northern District of Illinois, Eastern Division, enjoining any
attempted enforcement of the default judgment by the plaintiff until after the
court ruled on Checkers' motion to vacate the default judgment. On June 26,
1996, Checkers obtained an order from the U. S. District Court for the Southern
District of Florida quashing the writs of garnishment. As stated above, on
June 28, 1996, the default judgment against Checkers was vacated by the U.S.
District Court for the Northern District of Illinois, Eastern Division.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of Businesses Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
<TABLE>
<CAPTION>
Exhibit
Number Exhibit Description
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<S> <C>
99.1 Press Release of the Registrant dated June 26, 1996.
99.2 Press Release of the Registrant dated July 1, 1996.
</TABLE>
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned thereunto duly authorized.
CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ Albert J. DiMarco
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Albert J. DiMarco
President and Chief Executive Officer
Dated: July 2, 1996
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Pagination By
Exhibit Sequential
Number Exhibit Description Numbering System
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<S> <C> <C>
99.1 Press Release of the Registrant dated June 26, 1996. 6
99.2 Press Release of the Registrant dated July 1, 1996. 7
</TABLE>
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
JUNE 26, 1996
CHECKERS DRIVE-IN RESTAURANTS, INC. (CHKR:NASDAQ)
CHECKERS SEEKS TO VACATE JUDGEMENT
FOR MORE INFORMATION PLEASE CONTACT:
JAMES T. HOLDER, VICE PRESIDENT, CHIEF FINANCIAL OFFICER AND GENERAL COUNSEL
813-441-3500
CLEARWATER, FL -- JUNE 26, 1996 -- CHECKERS DRIVE-IN RESTAURANTS, INC.
(CHKR:NASDAQ) today announced that it was notified on June 13, 1996, of the
existence of a default judgment entered against it in the United States
District Court for the Northern District of Illinois, Eastern Division, in a
case involving a dispute between a Checkers franchisee and one of the
franchisee's investors. Due to miscommunications, no responsive pleading to
the lawsuit was filed and the court entered a default judgment against Checkers
in the amount of $4.1 million. Checkers filed a motion to vacate and set aside
the default judgment on June 21, 1996 and a hearing on that motion is set to be
heard on June 28, 1996.
On June 25, 1996, Checkers was notified that several writs of garnishment were
issued by the United States District Court for the Southern District of Florida
based upon the default judgment and that the writs were served on banks
maintaining significant Checkers' depository accounts. Checkers immediately
obtained a temporary restraining order from the Illinois court enjoining any
attempted enforcement of the judgment by the plaintiff and Checkers will file a
motion to dissolve the writs of garnishment in the Florida court today.
Checkers believes that both legal and factual grounds exist to cause the court
to vacate and set aside the judgment, and Checkers continues to believe that
the claims against it are baseless and without merit and it intends to
vigorously defend the suit.
Checkers Drive-In Restaurants, Inc., celebrating its 10th Anniversary this
year, is one of the largest double drive-thru restaurant chains in the United
States. Checkers develops, owns, operates and franchises restaurants that
offer high-quality food, fast service and everyday value prices. Checkers is
headquartered in Clearwater, Florida and is traded on the Nasdaq Stock Market
under the symbol "CHKR".
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EXHIBIT 99.2
FOR IMMEDIATE RELEASE
JULY 1, 1996
CHECKERS DRIVE-IN RESTAURANTS, INC. (CHKR:NASDAQ)
COURT VACATES JUDGMENT AGAINST CHECKERS
FOR MORE INFORMATION PLEASE CONTACT:
JAMES T. HOLDER, VICE PRESIDENT, CHIEF FINANCIAL OFFICER AND GENERAL COUNSEL
813-441-3500
CLEARWATER, FL -- JULY 1, 1996 -- CHECKERS DRIVE-IN RESTAURANTS, INC.
(CHKR:NASDAQ) today announced that on Friday, June 28, 1996, the United States
District Court for the Northern District of Illinois, Eastern Division, vacated
the default judgment previously entered against Checkers in a case involving a
dispute between a Checkers franchisee and one of the franchisee's investors.
Checkers Drive-In Restaurants, Inc., celebrating its 10th Anniversary this
year, is one of the largest double drive-thru restaurant chains in the United
States. Checkers develops, owns, operates and franchises restaurants that
offer high-quality food, fast service and everyday value prices. Checkers is
headquartered in Clearwater, Florida and is traded on the Nasdaq Stock Market
under the symbol "CHKR".
