1 unchanged sentence
time to time, we may be subject to claims and litigation arising in the ordinary course of business.
−Removed: Except as described in Note 27, Commitments
−Removed: and Contingencies to our accompanying consolidated financial statements under Item 8 of this Annual Report, as of the date of
−Removed: this Annual Report, we are not currently subject to any pending or threatened legal proceedings that we believe would reasonably be
−Removed: expected to have a material adverse effect on our business, financial condition, results of operations or cash flows.
−Removed: On January 30, 2024, our former President of
−Removed: Media filed an action against us and Manoj Bhargava, alleging claims for breach of contract, failure to pay wages and defamation, among
−Removed: other things, in the United States District Court of the Southern District of New York, and seeking damages in an unspecified amount.
−Removed: We believe that we have strong defenses to these claims and intend to vigorously defend ourselves and the allegations made
+Added: The outcome of any litigation is
+Added: inherently uncertain.
+Added: Based on the Company’s current knowledge it believes that the final outcome of the matters discussed below
+Added: will not likely, individually or in the aggregate, have a material adverse effect on its business, financial position, results of operations
+Added: or cash flows;
+Added: however, in light of the uncertainties involved in such matters, there can be no assurance that the outcome of each case
+Added: or the costs of litigation, regardless of outcome, will not have a material adverse effect on the Company’s business.
+Added: January 30, 2024, the former President, Media filed an action against the Company and Manoj Bhargava, the former interim CEO and a principal
+Added: stockholder, alleging claims for breach of contract, failure to pay wages and defamation, among other things, in the United States District
+Added: Court of the Southern District of New York, seeking damages in an unspecified amount.
+Added: On November 15, 2024, the Company has executed
+Added: a confidential settlement agreement with the former President, Media which fully resolved the matter to the satisfaction of the parties
+Added: to the litigation.
+Added: March 21, 2024, the former CEO and Chairman of the board of directors filed an action against the Company, members of its board of directors
+Added: and Simplify, alleging claims for retaliation, breach of contract, wrongful termination and age discrimination, among other things, in
+Added: the Superior Court of the State of California seeking damages in an amount of $20.0 million.
+Added: The Company and board member Carlo Zola
+Added: filed a Cross Complaint and Answer on June 20, 2024.
+Added: Apart from Mr.
+Added: Zola, the remaining individual board member defendants successfully
+Added: filed a Motion to Quash Service of Summons based on lack of jurisdiction, and they have been dismissed from the case.
+Added: On September 13,
+Added: 2024, the former CEO and Chairman filed an Answer to the Company’s Cross Complaint.
+Added: April 8, 2025, the former CEO and Chairman, the Company, and Mr.
+Added: Zola filed a Stipulation to allow the former CEO and Chairman to file
+Added: a First Amended Complaint, which adds a new cause of action for alleged breach of contract based upon the Company’s refusal to
+Added: advance certain attorneys’ fees to him.
+Added: The Court has not yet approved the filing of the First Amended Complaint, and the Company
+Added: will respond to the First Amended Complaint in due course.
+Added: The Company intends to vigorously defend itself against the allegations made
in this lawsuit.
−Removed: On March 21, 2024, our former CEO and Chairman of
−Removed: the Board filed an action against us, members of the Board of directors and Simplify, alleging claims for retaliation, breach of contract,
−Removed: wrongful termination and age discrimination, among other things, in the Superior Court of the State of California seeking damages in an
−Removed: amount of $20 million.
−Removed: We believe that we have strong defenses to these claims and intend to vigorously defend ourselves and
−Removed: the allegations made in this lawsuit.
+Added: April 1, 2024, Authentic Brands Group, LLC, ABG-SI, LLC, and ABG Intermediate Holdings 2 LLC (collectively referred to as the “ABG
+Added: Group”) filed an action against the Company and Manoj Bhargava, the former interim CEO of the Company and a principal stockholder,
+Added: alleging, among other things, breach of contract in the United States District Court of the Southern District of New York seeking damages
+Added: in the amount of $48.8 million (the alleged and disputed $3.8 million royalty fee liability and $45.0 million termination fee liability
+Added: as reflected in current liabilities from discontinued operations).
+Added: June 7, 2024, the Company filed a response denying ABG Group’s alleged breach of contract action and filed a counterclaim against
+Added: ABG Group and Minute Media, Inc.
+Added: alleging, among other things, unfair competition, misappropriation of trade secrets, unjust enrichment,
+Added: breach of contract and tortious interference with contract.
+Added: On August 2,2024, ABG Group filed an amended complaint which the Company
+Added: responded to on August 22, 2024 and subsequently filed counterclaims against ABG Group and Sportority, Inc.
+Added: d/b/a Minute Media.
+Added: conference was held on December 4, 2024.
+Added: On March 4, 2025, ABG Group filed a Second Amended Complaint adding allegations and additional
+Added: claims against Mr.
+Added: The allegations and claims asserted against the Company remain substantially the same as those in ABG Group’s
+Added: original complaint filed April 1, 2024.
+Added: On August 30, 2024, each of ABG, Minute Media, Inc., and Mr.
+Added: Bhargava filed respective motions
+Added: to dismiss, which motions were fully briefed as of November 1, 2024.
+Added: The motions remain pending with Mr.
+Added: Bhargava’s motion needing
+Added: to be restated and briefed after the subsequent filing of the Second Amended Complaint.
+Added: The Company intends to vigorously defend itself
+Added: against the allegations made in this lawsuit.
Mine Safety Disclosure
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.