1 unchanged sentence
From time to time, we are involved in ordinary routine litigation incidental to the conduct of our business, including matters that may be certified as class or collective actions.
−Removed: On June 1, 2021, the Company received a subpoena issued by the staff of the Division of Enforcement of the Securities and Exchange Commission (the “SEC Staff”) requesting certain documentation and information relating to the Company and to its commission and agent compensation practices during 2018 and 2019.
−Removed: The Company is fully cooperating with the SEC Staff regarding this non-public, fact-finding inquiry.
−Removed: The SEC Staff has informed the Company that this inquiry should not be construed as an indication that any violations of law have occurred or that the SEC Staff has formed an opinion concerning the Company’s agent compensation practices.
−Removed: The Company does not believe that the inquiry will have a material impact on the Company’s financial condition, results of operations or cash flow, but can provide no assurance concerning the timing or outcome of the inquiry.
−Removed: There are no other legal proceedings pending or, to our knowledge, threatened that we believe could have a material adverse impact on our business, reputation, results of operations or financial condition.
−Removed: There were no material changes to the risk factors reported in Part I, “Item 1A.
−Removed: Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020.
+Added: The Company believes that it has adequately and appropriately accrued for legal matters.
+Added: We recognize expense for legal claims when payments associated with the claims become probable and can be reasonably estimated.
+Added: Litigation and other legal matters are inherently unpredictable and subject to substantial uncertainties and adverse resolutions could occur.
+Added: In addition, litigation and other legal matters, including class action lawsuits, government investigations and regulatory proceedings can be costly to defend and, depending on the class size and claims, could be costly to settle.
+Added: As such, the Company could incur judgments, penalties, sanctions, fines or enter into settlements of claims with liability that are materially in excess of amounts accrued and these settlements could have a material adverse effect on the Company’s financial condition, results of operations or cash flows in any particular period.
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.