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Some of these legal matters purport or may be determined to be class and/or representative actions or seek substantial damages or penalties.
−Removed: Some of these legal matters relate to disputes regarding acquisitions.
+Added: Some of these legal matters
+Added: relate to disputes regarding acquisitions.
In connection with certain of the below matters and other legal matters, we have accrued amounts that we believe are appropriate.
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Commercial Matters
−Removed: We have been involved in various litigation matters and arbitrations with respect to commercial matters arising with clients, vendors and third-party sellers of businesses.
−Removed: We have retained outside counsel to represent us in these matters and we are vigorously defending our interests.
+Added: We have been involved in various litigation matters and arbitrations with respect to commercial matters arising with various vendors, clients and third parties.
Employment-Related Matters
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Fair Labor Standards Act, California Labor Code and Private Attorneys General Act.
−Removed: Many involve allegations
−Removed: for allegedly failing to pay wages and/or overtime, failing to provide meal and rest breaks and failing to pay reporting time pay, waiting time penalties and other penalties.
−Removed: Proceedings Relating to Take 5
+Added: Many involve allegations for allegedly failing to pay wages and/or overtime, failing to provide meal and rest breaks and failing to pay reporting time pay, waiting time penalties and other penalties.
+Added: Legal Matters Related to Take 5
In April 2018, we acquired the business of Take 5 Media Group (“Take 5”).
As a result of an investigation into that business in 2019 that identified certain misconduct, we terminated all operations of Take 5 in July 2019 and offered refunds to clients of collected revenues attributable to the period after our acquisition.
−Removed: We refer to the foregoing as the “Take 5 Matter.” We voluntarily disclosed to the United States Attorney’s Office and the Federal Bureau of Investigation certain misconduct occurring at Take 5.
−Removed: We intend to cooperate in this and any other governmental investigations that may arise in connection with the Take 5 Matter.
−Removed: In October 2022, an arbitrator made a final award in our favor.
−Removed: We are actively pursuing the collection of this award.
−Removed: We are currently unable to estimate if or when we will be able to collect any amounts associated with this arbitration.
−Removed: The Take 5 Matter may result in additional litigation against us, including lawsuits from clients, or governmental investigations, which may expose us to potential liability in excess of the amounts we previously offered as refunds to Take 5 clients.
−Removed: We are currently unable to determine the amount of any potential liability, costs or expenses that may result from any lawsuits or investigations associated with the Take 5 Matter or determine whether any such issues will have any future material adverse effect on our financial position, liquidity, or results of operations.
−Removed: Although we have insurance covering certain liabilities, we cannot be certain that the insurance will be sufficient to cover any potential liability or expenses associated with the Take 5 Matter.
+Added: We refer to the foregoing as the “Take 5 Matter.” We voluntarily disclosed to the United States federal government certain misconduct occurring at Take 5.
+Added: In October 2022, an arbitrator made a final award in our favor against the seller of the Take 5 business and certain beneficial owners.
+Added: During the three months ended December 31, 2025, we entered into separate agreements with two of the beneficial owners (and certain other parties) each of which provides for payments of certain specified amounts to us.
+Added: We have collected more than $16 million in aggregate payments from the beneficial owners that settled, but we are currently unable to estimate if or when it will be able to collect any amounts from an additional beneficial owner that did not settle.
+Added: The Take 5 Matter may result in additional litigation expenses for us as we pursue collection against this additional beneficial owner and his related parties.
Mine Safety Disclosures.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.