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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
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 7, 1998
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Borders Group, Inc.
(Exact name of registrant as specified in its charter)
Michigan 1-13740 38-3196915
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(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification (No.)
500 East Washington Street, Ann Arbor, Michigan 48104
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 734-477-1100
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(Former name or former address, if changed since last report.)
(End of cover page)
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Item 5. Other Events
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The Intimate Bookshop, Inc. and its owner, Wallace Kuralt, have filed a lawsuit
in the United States District Court for the Southern District of New York
against the Company, Barnes & Noble, Inc., Amazon, Inc., certain publishers and
others alleging violation of the Robinson-Patman Act and other federal law, New
York statutes governing trade practices and common law. The Complaint seeks
certification of a class consisting of all retail booksellers in the United
States, whether or not currently in business, which were in business and were
members of the American Booksellers Association ("ABA") at any time during the
four year period preceding the filing of the Complaint. The Complaint alleges
that the named plaintiffs have suffered damages of $11,250,000 or more and
requests treble damages on behalf of the named plaintiffs and each of the
purported class members, as well as of injunctive and declaratory relief
(including an injunction requiring the closure of all of defendants' stores
within 10 miles of any location where plaintiff either has or had a retail
bookstore during the four years preceding the filing of the Complaint, and
prohibiting the opening by defendants of any bookstore in such areas for the
next 10 years), disgorgement of alleged discriminatory discounts, rebates,
deductions and payments, punitive damages, interest, costs, attorneys fees and
other relief. Many of the allegations in the Complaint are similar to those
contained in an action instituted by the ABA and 26 bookseller plaintiffs
against the Company and Barnes & Noble in March of 1998. The Company denies
any liability to the named plaintiffs or members of the purported class and
intends to vigorously defend the action.
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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 thereto duly authorized.
BORDERS GROUP, INC.
(Registrant)
Date: August 10, 1998 By: /s/ Kenneth E. Scheve
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Kenneth E. Scheve
Senior Vice President and Chief
Financial Officer
(Principal Financial and
Accounting Officer)
