SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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July 16, 2002 (Date of earliest event reported)
July 16, 2002 (Date of Report)
RADIOSHACK CORPORATION
(Exact name of registrant as specified in charter)
Delaware 1-5571 75-1047710
(State or other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
100 Throckmorton Street, Suite 1800, Fort Worth, Texas 76102
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (817) 415-3700
Item 5. OTHER EVENTS
On July 16, 2002 RadioShack Corporation issued a press release set forth
below. The title, first, second, fourth and sixth paragraphs of that press
release set forth below are filed and incorporated herein by reference.
Item 9. REGULATION FD DISCLOSURE
The paragraph entitled "For further information contact:" and the third,
fifth, and seventh paragraphs of the press release set forth below are not filed
but are furnished pursuant to Regulation FD.
For further information contact:
Laura Moore James Grant
Senior Vice President Senior Director
Public Relations and Investor Relations
Corporate Communications (817) 415-7833
(817) 415-3300 investor.relations@radioshack.com
media.relations@radioshack.com
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FOR IMMEDIATE RELEASE RSH-2002-027
RadioShack Corporation Settles Lawsuits
Fort Worth, Texas - July 16, 2002 -- RadioShack Corporation (NYSE: RSH) today
announced that it has reached a tentative settlement in a class action lawsuit
filed in March 2000. The lawsuit, captioned Omar Belazi, et al vs. Tandy
Corporation, et al, alleged that certain current and former RadioShack store
managers in California were improperly classified as exempt from overtime wages
based on California law. RadioShack denied liability and asserted that its
managers were properly classified. Hundreds of similar class action lawsuits
have been filed against retailers, restaurants and other employers in California
over the past two years.
The company has agreed to the settlement to avoid protracted litigation that
could be a distraction to its business. According to the tentative settlement,
RadioShack will pay up to $29.9 million to approximately 1,300 current and
former store managers employed in California between March 27, 1996 and the
present. The settlement payment will also be used to pay the plaintiffs'
attorneys' fees and costs, and administrative expenses. The tentative settlement
is subject to court approval.
"We deny any wrongdoing in this case," said Mark Hill, senior vice president,
corporate secretary and general counsel of RadioShack Corporation. "In fact, we
have fought these types of wage and hour claims in the past and been completely
successful in our defense. However, proceeding to trial could have been a
distraction to our business during the third and fourth quarters, which are our
most productive times of the year. It was clearly in the best interest of the
company to put this matter behind us."
In a separate and unrelated matter, RadioShack also announced that it has
negotiated a favorable settlement of $27.7 million in the Tandy Corporation and
T.E. Electronics, Inc. vs. O'Sullivan Industries Holdings, Inc. lawsuit. This
lawsuit, filed on June 29, 1999, arose over a contractual dispute regarding a
tax sharing agreement.
The settlement of these two lawsuits will not have a material financial impact
on the company. The company's second quarter earnings-per-share guidance is
unaffected due to the unusual gain and unusual loss to be booked in the second
fiscal quarter. In addition, the company anticipates no affect on its cost
structure in California.
Statements made in this press release which are forward-looking statements
involve risks and uncertainties and are indicated by words such as " will," "
anticipates," and other similar words or phrases. These uncertainties include,
but are not limited to, economic conditions, product demand, competitive
products and pricing, availability of products, the regulatory environment and
other risks indicated in filings with the Securities and Exchange Commission
such as RadioShack's most recent Form 10-K and 10-Q.
About RadioShack Corporation
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Fort Worth-based RadioShack Corporation (NYSE: RSH) is the nation's most trusted
consumer electronics specialty retailer of wireless communications, electronic
parts, batteries and accessories as well as other digital technology products
and services. With more than 7,200 stores nationwide, it is estimated that 94
percent of all Americans live or work within five minutes of a RadioShack store
or dealer. The company's knowledgeable sales associates and brand position,
"You've Got Questions, We've Got Answers," supports RadioShack's mission to
demystify technology in every neighborhood in America. For more information on
the company, visit the RadioShack Corporation Web site at
www.radioshackcorporation.com. For more information on RadioShack products and
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services, visit its e-commerce Web site at www.radioshack.com.
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END OF TEXT OF PRESS RELEASE
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 thereunto duly authorized this 16th day of July, 2002.
RADIOSHACK CORPORATION
(Registrant)
Date July 16, 2002 /s/ Mark C. Hill
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Mark C. Hill
Senior Vice President, Corporate Secretary
and General Counsel