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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: April 6, 1998
Insurance Auto Auctions, Inc.
(Exact name of registrant as specified in its charter)
95-3790111
Illinois 0-19594 (IRS Employer
(State of Incorporation) (Commission File No.) Identification No.)
850 E. Algonquin Road, Suite 100, Schaumburg, Illinois 60173
(Address of principal executive offices)
1270 W. Northwest Highway, Palatinc, IL 60067
(Former address changed since last report of form 8-K)
Registrant's telephone number, including area code: (847) 839-3939
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Item 5. Other Events
Insurance Auto Auctions, Inc. ("IAA") has entered into a settlement
agreement resolving all outstanding disputes between IAA and Bradley Scott, who
has resigned as Chairman of the Board and a Director of IAA.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
(99.1) IAA Press Release dated April 2, 1998.
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.
Insurance Auto Acutions, Inc.
By: /s/ Gaspare G. Ruggirello
-----------------------------
Gaspare G. Ruggirello
Vice President and Assistant Secretary
Dated: April 6, 1998
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EXHIBIT INDEX
(99.1) IAA Press Release dated April 2, 1998.
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[INSURANCE AUTO AUCTIONS LOGO]
Exhibit (99.1)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Linda C. Larrabee General Inquiries Analyst Inquires Media Inquires
Sr. VP/CFO Jim Berger Janine Warell Laura Kuhlmann-Doerer
(847)839-4132 (312)640-6692 (312)640-6775 (312)640-6727
www.iaai.com
FOR IMMEDITE RELEASE
INSURANCE AUTO AUCTIONS AND
FORMER CHAIRMAN SETTLE DISPUTE
SCHAUMBURG, ILL., APRIL 2, 1998 - INSURANCE AUTO AUCTIONS, INC. (NASDAQ:IAAI),
a leading provider of automotive salvage and claims processing services in the
United States, announced it has entered into a settlement agreement resolving
all outstanding disputes between the company and Bradley Scott, who has
resigned as chairman of the board and a director of the company.
As previously reported, Scott was a defendant in a lawsuit relating to his sale
of stock in Los Angeles Auto Salvage, Inc., a corporate predecessor of
Insurance Auto Auctions, and notified the company of his intent to seek
indemnification from Insurance Auto Auctions for any amounts paid in connection
with the adjudication or settlement of the lawsuit. The company denied any
right to indemnification. Scott recently settled his lawsuit.
In the settlement agreement between the company and Scott, Scott resigned from
his positions with Insurance Auto Auctions and agreed not to pursue his claim
for indemnification, the parties terminated various agreements (including
agreements providing for compensation and certain benefits through June 30,
1999, and all outstanding stock options), and the company made a lump sum
payment of $700,000 to Scott, which included a bonus payment for 1997 of
$126,000 pursuant to a 1996 agreement between the company and Scott.
"The company wishes Bradley Scott the best in his future endeavors and is
appreciative of his past efforts in founding and helping to build Insurance
Auto Auctions into the largest salvage services firm in the United States,"
said James P. Alampi, president and chief executive officer.
Founded in 1982, Insurance Auto Auctions, Inc. is the largest provider of
automotive and specialty salvage services in the United States, providing
insurance companies with cost-effective, turnkey solutions to process and sell
total loss and recovered theft vehicles, a $3 billion per year industry. The
company has 48 auction sites across the United States.
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