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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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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 11, 1999
COMMISSION FILE NUMBER: 0-26040
COMPUTER LEARNING CENTERS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 36-3501869
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11350 RANDOM HILLS ROAD, SUITE 240
FAIRFAX, VIRGINIA 22030
(Address of principal executive offices) (Zip Code)
(703) 359-9333
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On January 11, 1999, Computer Learning Centers, Inc. ("CLC") issued a press
release announcing that it had entered into a memorandum of understanding to
settle a previously disclosed class-action shareholder lawsuit filed against CLC
in early 1998. A copy of the press release is being filed herewith as an
exhibit.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated January 11, 1999.
SIGNATURE
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.
COMPUTER LEARNING CENTERS, INC.
By: /s/ Charles L. Cosgrove
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Dated: January 19, 1999 Charles L. Cosgrove
Chief Financial Officer & Secretary
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EXHIBIT 99.1
Computer Learning Centers Announces Settlement of Class Action Lawsuit
FAIRFAX, Va.--(BUSINESS WIRE)--Jan. 11, 1999--Computer Learning Centers, Inc.
(Nasdaq National Market: CLCX - news; "CLC") today announced that it has
entered into a memorandum of understanding to settle in the previously disclosed
class-action shareholder lawsuit filed against CLC in early 1998 in the U.S.
District Court for the Eastern District of Virginia. The Virginia action had
consolidated all of the outstanding shareholder lawsuits.
Terms of the settlement, which are subject to the signing of a definitive
agreement and final judicial approval, call for the payment of $3.0 million in
cash (of which $2.350 million is covered by CLC's insurance) and the issuance of
550,000 shares of CLC common stock, $.01 par value, subject to certain price
protection features to guarantee a total settlement of $7.5 million.
In settling the case, the Company continued to deny all of the allegations
contained in the lawsuit. The Company said this agreement will enable management
to again devote its full attention to the business of providing the highest
quality of technical education and to enhancing long-term shareholder value. CLC
estimates that this settlement, upon its approval, would result in an after-tax
charge against fiscal 1999 fourth quarter earnings of approximately $0.18 per
share.
Computer Learning Centers provides information and computer-related education
and training at 26 Learning Centers in the United States and Canada. The Company
designs programs and courses to meet current information technology education
needs, offering instruction focused on client/server systems and applications
programming, networking administration and management, help desk operations and
computer technical support.
This press release contains forward-looking statements. The words "believe,"
"expect," "intend," "anticipate," and "project," and similar expressions
identify forward-looking statements, which speak only as of the date the
statement was made. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward looking statements are inherently subject
to risks and uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from those set forth
in, contemplated by, or underlying the forward-looking statements. The risks and
uncertainties to which forward-looking statements are subject include, but are
not limited to, the effect of government regulation, competition and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission.
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Contact:
Computer Learning Centers, Inc.
Charles Cosgrove
Chief Financial Officer
703/359-7702
