IKON/GE Sued for Restraint of Trade/Unfair Competition

IKON Office Solutions, reportedly the world's largest independent channel for document management systems and services, has announced that William S. Urkiel, the Company's Senior Vice President and Chief Financial Officer, plans to retire in 2005. IKON has outlined a transition plan for the Chief Financial Officer position, whereby Mr. Urkiel will remain in the CFO position through the search process, followed by a transition period during which he will be available to support the new CFO.

In the meantime, Leasing News has learned on June 25, 2004, NewCal Industries, a California corporation, Pinnacle Document Systems, a California corporation, Pacific Automation, an Oregon Corporation, and Kearns Business Solutions, a South Carolina Corporation has filed a civil complaint in the Northern District of

California against Ikon Office Solutions, an Ohio Corporation and Kearns Business Solutions.

The civil case claims “unreasonable restraint of trade,”  “unfair

competition,” “unlawful, unfair and fraudulent business relations,”

as well as “unfair, deceptive, untrue and misleading advertising,”

laying out the foundation of there charges in this filing.

http://www.two.leasingnews.org/loose_files/P001Complaint%20(2).pdf

None of the parties contacted  would make a comment to Leasing News and referred us to public relations personnel, who have not returned our telephone calls.

A July 29^th press release stated:

“Finance income from the U.S. and Canadian portfolios declined by 61% from the prior year and is expected to decline primarily over the next 24 months, as the Company completes its previously announced transition out of captive lease financing in the U.S. and Canada.

“Revenues for the third quarter were $1.16 billion, declining 1.3% compared to the prior year. Growth in targeted revenue streams was offset by the decline in finance revenues as the Company began its transition out of captive lease financing in North America.

“Targeted revenue streams, which represent 95% of total revenues and exclude revenues from U.S. and Canadian lease financing and computer-related technology hardware, grew by 4% compared to the same period a year ago.

“This strategic shift includes the funding of new lease originations by IKON Financial Services(SM), a strategic alliance under GE Commercial Finance ("GE"). Foreign currency translation provided a 1.1% benefit to total revenues.”

According to the present release, “IKON Office Solutions (www.ikon.com) integrates imaging systems and services that help businesses manage document workflow and increase efficiency. As the world's largest independent distribution channel for copier and printer technologies, IKON offers best-in-class systems from leading manufacturers such as Canon, Ricoh and HP and service support through its team of 7,000 service professionals worldwide. IKON also represents the industry's broadest portfolio of document management services: outsourcing and professional services, on-site copy and mailroom management, fleet management, off-site digital printing solutions, and customized workflow and imaging application development, as well as equipment lease financing. With Fiscal 2003 revenues of $4.7 billion, IKON has approximately 600 locations throughout North America and Europe.”