UNITED STATES
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
Date of Report: March 27, 2009
MIDAS, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
01-13409 36-4180556
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(Commission File Number) (IRS Employer Identification No.)
1300 Arlington Heights Road, Itasca, Illinois 60143
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (630) 438-3000
Item 7.01 Regulation FD disclosure
As previously reported, in May 2007, two Midas franchisees in Canada
filed a lawsuit in Ontario Superior Court of Justice against Midas Canada, Inc.
("Midas Canada"), and Midas International Corporation ("Midas International"),
claiming, among other things, that Midas Canada breached its franchise agreement
when it closed its manufacturing and distribution operations in 2003. The
plaintiffs--Landsbridge Auto Corporation and 405341 Ontario Limited--sought
class certification.
On March 26, 2009, the court released its decision regarding
certification of the action as a class proceeding. As expected, the court
certified certain of the plaintiffs' claims. However, of the many and varied
claims that were asserted by the plaintiffs, the only claims that the plaintiffs
will be allowed to advance as a class are whether Midas Canada breached its
common law and statutory duties of good faith/fair dealing when Midas Canada
implemented its new supply chain in 2003, and, if so, whether Midas Canada could
properly maintain the same royalty structure after ceasing to supply products to
franchisees. All other causes of action against Midas Canada and Midas
International, and proposed common issues based on those causes of action, were
rejected by the court.
In its decision, the court ruled that Midas Canada did not breach its
franchise agreement when it closed its manufacturing and distribution operations
in 2003 or accepted rebates from its supplier. The court also held that
Landsbridge is not a proper plaintiff in the proceeding and that the class
definition is limited to only those franchisees who were part of the Midas
system before the new supply chain was implemented and continued as franchisees
through the date of the claim. There are no class claims remaining against Midas
International.
Midas continues to believe that the plaintiffs' case is without merit
and will vigorously defend these remaining claims at trial.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused the report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: March 27, 2009 MIDAS, INC.
By: /s/ William M. Guzik
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William M. Guzik
Chief Financial Officer