Statement by the Thomson Corporation (the parent of the West Publishing Co.)
At December 31, 2005, the Company was a defendant in two separate class action lawsuits involving the BAR/BRI business, which is part of the Legal & Regulatory segment. Each alleges violations of the U.S. federal antitrust laws. The plaintiff in Park v. Thomson Corporation and Thomson Legal & Regulatory, Inc., which was filed in the U.S. District Court for the Southern District of New York, alleges that BAR/BRI has illegally leveraged its market position in state-specific bar examination preparation courses into multi-state courses and that an unlawful tying arrangement exists, which should be remedied, in part, by restructuring BAR/BRI's review courses into separate state-specific and mutli-state courses. The plaintiff in Rodriguez v. West Publishing Corp. and Kaplan, Inc., which was filed in the U.S. District Court for the Central District of California, alleges, among other things, that the Company and Kaplan, Inc. (a subsidiary of The Washington Post Company) unlawfully agreed in 1997 to divide markets and not compete against one another. Discovery proceedings are underway in both lawsuits. The Company intends to defend itself vigorously in both cases.