What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2024-09-20 compared with 2023-10-19 · 44 added, 13 removed, 4 unchanged (93% of the section changed)

Legal Proceedings.

Alliance is currently involved in, and may in the future be involved in, legal proceedings, claims, and government investigations in the ordinary course of business.

These include proceedings, claims, and investigations relating to, among other things, regulatory matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal injury, and property rights.

Depending on the nature of the proceeding, claim, or investigation, the Company may be subject to monetary damage awards, fines, penalties, or injunctive orders.

Furthermore, the outcome of these matters could materially adversely affect Alliance’s business, results of operations, and financial condition.

The outcomes of legal proceedings, claims, and government investigations are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters.

In fiscal year 2023, a class action complaint, titled Matthew McKnight v.

is currently involved in, and may in the future be involved in, legal proceedings, claims, and government investigations in the ordinary

course of business.

These include proceedings, claims, and investigations relating to, among other things, regulatory matters, commercial

matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal injury, and property

on the nature of the proceeding, claim, or investigation, the Company may be subject to monetary damage awards, fines, penalties, or

injunctive orders.

Furthermore, the outcome of these matters could materially adversely affect Alliance’s business, results of

operations, and financial condition.

The outcomes of legal proceedings, claims, and government investigations are inherently unpredictable

and subject to significant judgment to determine the likelihood and amount of loss related to such matters.

March 31, 2023, a class action complaint, titled Matthew McKnight v.

Alliance Entertainment Holding Corp.

f/k/a Alliance Acquisition Corp., Alliance Sponsor LLC, Thomas Finke, Paul G.

f/k/a Adara Acquisition Corp.,

Adara Sponsor LLC, Thomas Finke, Paul G.

Porter, Beatriz Acevedo-Greiff, W.

Tom Donaldson III, Dylan Glenn, and Frank Quintero , was filed in the Delaware Court of Chancery against our pre-Business Combination board of directors and executive officers and the Sponsor, alleging breaches of fiduciary duties by purportedly failing to disclose certain information in connection with the Business Combination and by approving the Business Combination.

We intend to vigorously defend the lawsuit.

There can be no assurance, however, that we will be successful.

The Company has accrued $150,000 as of June 30, 2023, based on the expected loss.

While it is not possible to determine the outcomes, the Company believes based on its current knowledge that the resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on the business, results of operations, cash flows or financial condition.

Tom Donaldson III, Dylan Glenn, and Frank Quintero, was filed

in the Delaware Court of Chancery against our pre-Business Combination board of directors and executive officers and Adara Sponsor LLC,

alleging breaches of fiduciary duties by purportedly failing to disclose certain information in connection with the Business Combination

and by approving the Business Combination.

On August 8, 2024, the Company entered into a settlement agreement regarding pending litigation.

A settlement hearing

is scheduled for November 25, 2024.

has accrued $511,000 and $150,000 as of June 30, 2024, and June 30, 2023, respectively, based on the expected loss.

June 6, 2024, Office Create Corporation filed a complaint against COKeM International Ltd.

(“COKeM”) in the United States

District Court for the District of Minnesota alleging contributory trademark infringement, contributory false designation of origin and

unjust enrichment relating to COKeM’s alleged] distribution of a specific video game, Cooking Mama:

Plaintiff is seeking

damages of no less $20,913,200, plus interest of 9% accruing from October 3, 2022.

On August 29, 2024, COKeM filed a response denying

all allegations.

COKeM intends to vigorously defend the lawsuit.

At this time, we are unable to estimate potential losses, if any, related

to this lawsuit.

August 8, 2024, a class action complaint, Feller v.

Alliance Entertainment, LLC and DirectToU, LLC , was filed under the Video

Privacy Protection Act (“VPPA”).

The complaint alleges that the Company violated the VPPA by disclosing users’ personally

identifiable information, as well as information regarding videos they viewed on the Company’s website, to Facebook through the

use of Facebook Pixel.

The Company is evaluating the claims and intends to defend against the allegations vigorously.

At this time, the

potential outcome or range of financial impact cannot be reasonably estimated.

it is not possible to determine the outcomes, the Company believes based on its current knowledge that the resolution of all such pending

matters will not, either individually or in the aggregate, have a material adverse effect on the business, results of operations, cash

flows or financial condition.

Mine Safety Disclosures.

Not applicable.

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.

What changed 10-K

Item 3. Legal Proceedings