Casualty Focus Toys"R"
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Client Report – Casualty Focus Toys"R"Us, Inc. _________________________________________________________________________ Company Profile Credit Details Location 1 Geoffrey Way Overall Credit Risk High Risk Wayne, NJ www.toysrusinc.com Number of Legal Derogatory 140 Company Type Private Items Liability Amount $117,166.00 Formerly Known As N/A SIC Code 5945 Experian Intelliscore 2.00 SIC Code Description Hobby, Toy, And Game Shops Experian Intelliscore Percentile 1.00 % of companies score lower and have higher credit risk Established 1992 Experian Commercial IntelliscoreSM is an all-industry commercial model using business information to predict business risk. Its Sales (in millions) $13,909.00 predictiveness is among the best on the market today The objective of the Commercial Intelliscore Model is to predict seriously Employees 70000 derogatory payment behavior. Possible score range from 0 to 100, where 0 is high risk and 100 is low risk Total OSHA Violations 28 -Liability Amount is the total dollar amount of debtor’s legal liability, OSHA is an arm of the Department of Labor that conducts inspections of company including accounts in collection, tax liens,judgments and/or bankruptcies facilities with the goal of preventing work-related injuries, illnesses and deaths. -The Number of Legal Derogatory items are the sum of Tax-Lien Worksites that do not meet health and/or safety standards at the time of inspection Count, Bankruptcy,Judgment, Collection-Counter and UCC Derog may receive an OSHA violation. Business Description Toys"R"Us, Inc. is the world's leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 872 Toys"R"Us and Babies"R"Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand's flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toys and baby products. The company also operates Toys.com, which offers customers exclusive deals from the company's e-commerce sites. Litigation and Losses Top Company Casualty Cases by Settlement Amount Company Acc/Filing Amount Category Subtype Docket Number Court State Date (in millions) Toys 'R' Us, Inc. 12/9/1995 $9.500 Services & Operations Undetermined/Other 97-CVS-2928 North Carolina Premises liability - employee of shopping center was attacked while going to her care from work at 9 p.m. on December 9, 1995. Ms. Marker was hit in the head about 20 times and lost a great amount of blood. At the time of attack, Plaintiff was pregnant with her first child and only child. Despite her condition, her doctors induced labor and delivered her son. She remained in a coma for many months. She is instutionalized and her injuries are permanent. She cannot talk, walk or swallow and is fed through a tube. Her medicals were over $1.5 million. She was 33-years-old and was making about $30,000 a year as the manager of the Silk Plant Forest. Ms. Marker's attorneys alleged that defendants provided inadequate security when they knew that there had been repeated criminal activity in the area. The shopping center had hired The Wackenhut Corporation to provide one armed security gaurd from 8 p.m. to 4 a.m. For more information contact your Advisen rep at +1.212.897.4800, email [email protected], or visit www.advisen.com 1 Toys "R" Us, Inc. 6/1/1998 $0.900 Cyber/Identity Risks Identity Theft/Fraudulent MDL 1381 California Use or Access MDL 1381 - In August 2000, eleven purported class action lawsuits were against Toys R Us Inc (Company) and its affiliates Toysrus.com, Inc. and Toysrus.com, LLC. In September 2000, three additional purported class action lawsuits were filed. These actions generally purport to bring claims on behalf of all persons who have visited one or more of the company's web sites and either made an online purchase or allegedly had information about them unlawfully "intercepted," "monitored," "transmitted," or "used." All the suits (except one filed in the United States District Court for the District of New Jersey) also named Coremetrics, Inc., as a defendant. These lawsuits assert various claims under the federal privacy and computer fraud statutes, as well as under state statutory and common law, arising out of an agreement between the company and Coremetrics, alleging that the company tracks its web site users' activities online and shares that information with third parties in violation of the law. These suits seek damages in unspecified amounts and other relief under state and federal law. The company and Coremetrics filed a joint application with the Multidistrict litigation panel to have all of the federal actions consolidated and transferred to the United States District Court for the Northern District of California (IN RE: Toys R Us, Inc., Privacy Litigation). The Consolidated Complaint charges violations of the Federal Trade Commission's (FTC) Fair Information Practice Principles, the Electronic Communications Privacy Act (Interception of Electronic Communications), the Computer Fraud and Abuse Act, the California Invasion of Privacy Act, as well as California and New Jersey consumer protection and fraud statutes. It also included an unjust enrichment count, alleging that the defendants misappropriated the economic value of the class members, who have a right to sell personal information to third parties. Among the interesting aspects of this complaint are: 1) its characterization of Coremetrics and Toys R Us as co-conspirators who specifically intended to violate the privacy rights of consumers, 2) the proposition that the undisclosed use of cookies and Web Bugs is almost per se a violation of privacy, and 3) collecting personal information in this manner has resulted or will result in unjust enrichment of these companies at the consumer's expense. A hearing on that application was held on November 17, 2000, and all matters have now been consolidated in the United States District Court for the Northern District of California. The court granted the company's motion for stay on May 22, 2001. On October 16, 2001, plaintiffs filed an amended complaint in the United States District Court for the Northern District of California. The company believes that it has substantial defenses to all of these claims. On November 13, 2002, the company entered into a settlement agreement with plaintiffs in connection with all causes of action. The settlement agreement requires Toys R Us to pay $900,000 and Coremetrics $400,000 to settle the case. The agreement also includes specific obligations on both parties with respect to privacy notices and practices. On February 21, 2003, a Notice of Entry of Final Judgment and an Order of Dismissal of Class Action was issued by the Court, along with an Order of Dismissal of Class Action and Final Judgment. Toys"R"Us, Inc. 12/5/2008 $0.768 Employment Wage and Hour 2009 CV 00025 California On January 7, 2009, a class action lawsuit was filed in the United States District Court, Central District of California by Warren Sumner individually and on behalf of other members of the general public similarly situated against Toys R Us Inc ( TRU) for the alleged unpaid overtime, wage not paid upon termination, improper wage statements, unpaid missed meal breaks, and unpaid missed rest breaks. The lawsuit was previously filed on December 5, 2008 in the Superior Court of the State of California in and for the County of Orange. Plaintiff sought to represent himself and all other persons similarly situated in the State of California within the relevant time period that held or hold the positions of Store Manager. Because the lawsuit includes a claim under Business & Professions Code 17200, the relevant time period extends back to 4 years prior to the filing of the lawsuit. On September 17, 2009, plaintiff filed First Amended Class Action Complaint. On October 7, 2009, defendant filed Answer to the Amended Complaint. On November 22, 2010, plaintiff filed Notice of Motion and Motion for Settlement Approval of Preliminary Approval of Class Action Settlement. On February 11, 2011, the court judge denied the Motion. The judge ruled that the parties shall be present for a mandatory settlement conference with a mediator of their choice on February 16, 2011 to March 7, 2011. On March 22, 2011, plaintiff filed another Notice of Motion and Motion for Preliminary Approval of Class Action Settlement. Approval of the settlement will resolve all claims that had been brought in the class action, and TRU has agreed to pay up to $768,000 to settle all claims. Kawahito Shraga & Westrick LLP (Class Counsel) will seek a $192,000 attorney' fees award. Class Counsel will also seek reimbursement of litigation costs. Toys"R"Us, Inc. 11/1/2007 $0.175 General Litigation Undetermined/Other hree major retailers have agreed to pay nearly half a million dollars to settle a lawsuit stemming from the companies' sale of toys containing excessive amounts of lead, the state attorney general's office said Thursday. Under the agreement, Target Corp., Toys R Us Inc. and Kmart will pay a total of $454,000 in civil penalties and other fines. The retailers, along with several manufacturers, including Mattel Inc., were sued by the California attorney general's office and the Los Angeles city attorney's office in November 2007 after the companies were found to have sold or made toys with unsafe levels of lead paint.