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): SEPTEMBER 29, 2003
FRIEDMAN'S INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-22356 58-20583
(State or other jurisdiction (Commission File Number) (IRS Employer Identification No.)
of incorporation)
171 CROSSROADS PARKWAY
SAVANNAH, GEORGIA 31422
(Address of principal executive offices)
(912) 233-9333
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS AND REQUIRED REGULATION FD DISCLOSURE.
Friedman's Inc. is disclosing a development relating to its relationship
with a former vendor, Cosmopolitan Gem Corporation, and the lawsuit filed by
Cosmopolitan's former factor, Capital Factors, Inc.
As previously reported, on August 13, 2003, Capital Factors, a receivables
factoring company that factored the accounts receivable of Cosmopolitan, filed
suit against Friedman's, along with 13 other defendants, including Crescent
Jewelers and Whitehall Jewellers. Capital Factors alleges that the defendants
intentionally or negligently participated with Cosmopolitan in the
misrepresentation of the balance of Cosmopolitan's accounts receivable, the
effect of which was to induce Capital Factors to continue to advance funds to
Cosmopolitan. Capital Factors also alleges that Cosmopolitan's customers
improperly made payments on accounts with Cosmopolitan directly to Cosmopolitan.
In general, Capital Factors alleges damages against all defendants of not less
than $30 million and seeks punitive damages. Friedman's intends to vigorously
defend the claims.
Friedman's also previously reported that on September 8, 2003, Friedman's,
Crescent and at least one other defendant, Whitehall Jewellers, were contacted
by the SEC, which has opened an informal inquiry into the allegations contained
in the Capital Factors lawsuit. Friedman's intends to fully cooperate with the
SEC and provide the SEC with any information that it may request from the
company in that regard.
On Monday, September 29, 2003, Friedman's was notified by the U.S.
Department of Justice that the Department was conducting an investigation
relating to the allegations asserted in the Capital Factors lawsuit. The Audit
Committee of the Board of Directors of Friedman's, comprised of independent
directors, has initiated an internal investigation into the matter. Friedman's
and the Audit Committee intend to fully cooperate with the Department of Justice
and provide the Department with any information that it may request from the
company in that regard.
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.
FRIEDMAN'S INC.
(Registrant)
Date: October 1, 2003 By: /s/ Victor M. Suglia
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Victor M. Suglia
Senior Vice President,
Chief Financial Officer,
Treasurer and Secretary