FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
DATED: NOVEMBER 17, 1998
EMPLOYEE SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
ARIZONA 0-22600 86-0676898
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
6225 N. 24TH STREET, PHOENIX, ARIZONA 85016
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (602) 955-5556
<PAGE>
ITEM 5. OTHER EVENTS
Employee Solutions, Inc., an Arizona corporation (the "Company")
recently announced that it has reached an agreement to settle all of the
securities class action lawsuits currently pending against the Company.
The agreement is subject to the signing of a formal settlement agreement
and court approval.
For additional information, please refer to the press release dated
November 17, 1998, which is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
1. Exhibits. See exhibit index attached hereto.
2. Financial Statements. None.
<PAGE>
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 thereunto duly authorized.
EMPLOYEE SOLUTIONS, INC.
Date: November 18, 1998 By: /s/ James E. Gorman
------------------ ---------------------------------
James E. Gorman
Chief Executive Officer
<PAGE>
EMPLOYEE SOLUTIONS, INC.
FORM 8-K
DATED: NOVEMBER 17, 1998
EXHIBIT INDEX
Exhibit No. Description Filed Herewith
- ----------- ----------- --------------
99 Press release dated November 17, 1998, X
"Employee Solutions Announces Agreements to
Settle Securities Class Action Lawsuits."
Exhibit 99
Contact: Carole J. McLeod
Vice President of Communications
602-522-5315
EMPLOYEE SOLUTIONS ANNOUNCES AGREEMENT TO SETTLE
SECURITIES CLASS ACTION LAWSUITS
PHOENIX--November 17, 1998--Employee Solutions, Inc. (NASDAQ: ESOL)
announced today that an agreement has been reached to settle all of the
securities class action lawsuits currently pending against the Company.
Under the terms of the settlement, which is subject to the signing of a
formal settlement agreement and court approval, the claims against Employee
Solutions and all other defendants will be dismissed with prejudice without
presumption or admission of any liability or wrongdoing. The settlement calls
for payment to the plaintiffs of $13.5 million in cash and $1 million in
Employee Solutions Common Stock. A substantial majority of both the cash portion
of the settlement and litigation-related expenses will be paid by the Company's
directors and officers' insurance carriers. James E. Gorman, president and CEO
of Employee Solutions, commented, "Today's announcement reflects our continuing
follow-through on our commitment to reduce the amount of litigation affecting
the Company. We view the settlement as a very positive step for the Company. It
is in the best interest of our business and our shareholders to put these issues
behind us and focus the Company's efforts on meeting the needs of our customers
and implementing our plan to maximize shareholder value."
Employee Solutions provides employers throughout the United States with
comprehensive payroll, human resources and benefits outsourcing services.
###
This press release contains forward-looking statements relating to the
financial impact of the settlement, the final settlement of the lawsuits and the
expected impact on the Company should the litigation continue. Actual results
could differ materially from those set forth in the forward-looking statements
as a result of factors such as the inability to negotiate a formal settlement
agreement, the decision of the court not to approve the settlement, or any
unfulfilled contingency, which may cause the settlement to terminate. Investors
are strongly encouraged to review the information set forth under the heading:
"Outlook: Issues and Risks" in the Company's Report on Form 10-Q for the quarter
ended September 30, 1998.
