/------------------------------/
/ OMB APPROVAL /
/------------------------------/
/ OMB Number: 3235-0060 /
/ Expires: May 31, 2000 /
/ Estimated average burden /
/ hours per response......5.00 /
/------------------------------/
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 13, 2000
--------------------------------
Stamps.com Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 000-26427 77-0454966
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
3420 Ocean Park Boulevard, Suite 1040,
Santa Monica, California 90405
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (310) 581-7200
------------------------------
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
Item 5. Other Events.
On August 23, 2000, DraftWorldwide, Inc., which formerly served as one
of our advertising and promotions agencies, sued us for alleged breach of
contract in the Circuit Court of Cook County, Illinois. The suit alleges that
we improperly terminated our contract with DraftWorldwide and seeks damages of
approximately $3.9 million plus interest and costs associated with the lawsuit.
The alleged damages consist primarily of monthly retainers that DraftWorldwide
claims to be due and owing as a result of the alleged improper termination for
the seven month period beginning June 2000 and ending December 2000. We believe
that the agreement was terminated effective June 1, 2000, which termination
resulted from our belief that DraftWorldwide failed to perform adequately under
the contract, among other reasons. We are currently evaluating the claims
against us as well as potential counterclaims, and have not responded to the
suit.
On September 18, 2000, Pitney Bowes filed an action for alleged patent
infringement in the United States District Court for the Eastern District of
Texas. The complaint alleges that we are infringing four patents owned by Pitney
Bowes related to tracking of parcels and other related items. The complaint does
not identify which of our products or services allegedly infringe the asserted
patents or which claims of the asserted patents are allegedly infringed. The
suit seeks unspecified damages and a permanent injunction from further alleged
infringement. We have just commenced our investigation of the claims against us
and have not responded formally to the suit. As with pending patent litigation
that we have with Pitney Bowes in Delaware, this suit could result in
significant litigation expenses and diversion of management time and other
resources. Further, if Pitney Bowes prevails in this suit, then, depending upon
which of our products or services are covered, our financial condition and
operations could be impacted severely. As with our existing patent litigation,
this new Pitney Bowes suit could result in limitations on how we implement our
services, delays and costs associated with redesigning our services, payments of
license fees and other payments.
As with lawsuits previously reported in our filings with the
Securities and Exchange Commission, the outcome of both lawsuits described above
is uncertain. Therefore, we can give no assurance that we will successfully
defend ourselves or that the lawsuits described above or in our other filings
with the Securities and Exchange Commission will not result in significant
damages or costs to us.
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.
Stamps.com Inc.
-----------------------------------------
(Registrant)
September 25, 2000 /s/ John W. LaValle
- ----------------------------------- -----------------------------------------
Date John W. LaValle
Executive VP and Chief
Financial Officer