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As a result of the settlement related to the 2018 performance test failure, the Company recorded a gain of approximately $868,000 for the three months ended March 31, 2022, that is recorded as a reduction of management fees and included in “management fees” on the Company’s condensed consolidated statements of operations.
−Removed: As of March 31, 2022, no amounts have been accrued.
−Removed: One of the Company’s hotel management companies is currently involved in litigation regarding its employment policies and practices at multiple California hotels, including one of the Company’s hotels.
−Removed: On January 28, 2022, the Court approved a settlement of this litigation.
−Removed: The resulting loss to the Company was approximately $448,000;
−Removed: although it was entitled to indemnification in the amount of approximately $291,000, based on the respective periods of ownership of the Company’s hotel.
−Removed: As of March 31, 2022, approximately $500,000 was accrued.
−Removed: The settlement amount was paid subsequent to March 31, 2022 and the matter is now closed.
On December 20, 2016, a class action lawsuit was filed against one of the Company’s hotel management companies in the Superior Court of the State of California in and for the County of Contra Costa alleging violations of certain California employment laws, which class action affects two hotels owned by subsidiaries of the Company.
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however, the total number of employees in the class has not been definitively determined and is the subject of continuing discovery.
−Removed: While we believe it is reasonably possible that we may incur a loss associated with this litigation, because there remains uncertainty under California law with respect to a significant legal issue, discovery relating to class members continues, and the trial judge retains discretion to award lower penalties than set forth
−Removed: in the applicable California employment laws, we do not believe any potential loss to the Company is reasonably estimable at this time.
−Removed: As of March 31, 2022, no amounts have been accrued.
+Added: While we believe it is reasonably possible that we may incur a loss associated with this litigation, because there remains uncertainty under California law with respect to a significant legal issue, discovery relating to class members continues, and the trial judge retains discretion to award lower penalties than set forth in the applicable California employment laws, we do not believe any potential loss to the Company is reasonably estimable at this time.
+Added: As of June 30, 2022, no amounts have been accrued.
We are also engaged in other legal proceedings that have arisen but have not been fully adjudicated.
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We recognize a loss when we believe the loss is both probable and reasonably estimable.
−Removed: Based on the information available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations, or cash flow.
+Added: Based on the information
+Added: available to us relating to these legal proceedings and/or our experience in similar legal proceedings, we do not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect on our consolidated financial position, results of operations, or cash flow.
However, our assessment may change depending upon the development of these legal proceedings, and the final results of these legal proceedings cannot be predicted with certainty.
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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.