Item 3. Legal Proceedings
Item
3. Legal Proceedings
From
time to time, we may be subject to claims and litigation arising in the ordinary course of business. Except as described in Note 27, Commitments
and Contingencies to our accompanying consolidated financial statements under Item 8 of this Annual Report, as of the date of
this Annual Report, we are not currently subject to any pending or threatened legal proceedings that we believe would reasonably be
expected to have a material adverse effect on our business, financial condition, results of operations or cash flows.
On January 30, 2024, our former President of
Media filed an action against us and Manoj Bhargava, alleging claims for breach of contract, failure to pay wages and defamation, among
other things, in the United States District Court of the Southern District of New York, and seeking damages in an unspecified amount.
We believe that we have strong defenses to these claims and intend to vigorously defend ourselves and the allegations made
in this lawsuit.
On March 21, 2024, our former CEO and Chairman of
the Board filed an action against us, members of the Board of directors and Simplify, alleging claims for retaliation, breach of contract,
wrongful termination and age discrimination, among other things, in the Superior Court of the State of California seeking damages in an
amount of $20 million. We believe that we have strong defenses to these claims and intend to vigorously defend ourselves and
the allegations made in this lawsuit.
Item
4. Mine Safety Disclosure
Not
applicable.
25
Part
II.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.