What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2025-03-12 compared with 2024-03-15 · 20 added, 35 removed, 127 unchanged (30% of the section changed)

16 unchanged sentences

Nevertheless, in August 2021, the court denied our motion to compel arbitration, without opinion.

In April 2022, a motion for certification of a class was filed but has not been ruled upon.

It is reasonable to expect that resolution

of these claims will be on a class basis.

In April 2024 a motion for certification of a class was filed.

Prior to the motion being ruled upon, summary judgment was granted in our

favor, disposing of the claims against CPS.

An appeal of the summary judgment ruling was filed on October 25, 2024 and a cross appeal

of the denial of the motion to compel arbitration was filed on October 31, 2024.

Wage and Hour Claim.

2 unchanged sentences

other employee protective provisions of California and federal law.

The complaint seeks injunctive relief, an award of unpaid wages, liquidated

damages, and attorney fees and interest.

The plaintiff purports to act on behalf of a class of similarly situated employees and ex-employees.

The complaint sought injunctive relief, an award of unpaid wages,

liquidated damages, and attorney fees and interest.

The plaintiff purported to act on behalf of a class of similarly situated employees

and ex-employees.

We believe that our compensation practices with respect to our sales representatives are compliant with applicable law.

In August 2023,

the parties settled by agreement the claims of the plaintiff and a California settlement class for $1.1 million and the settlement remains

subject to final court approval.

Massachusetts Civil Investigative

In September 2021, we received a civil investigative demand from the Office of the Attorney General of the Commonwealth of

Massachusetts relating to the Company’s communications with and repossession notices sent to Massachusetts customers.

28, 2023 and without admitting any wrongdoing, the Company entered into an assurance of discontinuance with the Office of the Attorney

General of the Commonwealth of Massachusetts, reflecting the parties’ agreements to settle and fully resolve allegations of the Company’s

noncompliance with Massachusetts law.

The Company agreed to make a payment in the total amount of $1.24 million to an independent trust

for the purposes of making payments to eligible consumers, paying costs of implementation, and paying the Attorney General’s costs

of investigation.

In addition, the Company agreed to pay $75,000 for the fees and costs of a trustee to oversee the trust.

In August 2023, the parties settled by agreement the claims of the plaintiff and a California settlement class for $1.1 million.

The settlement

was approved by the court on October 9, 2024.

Under the settlement, the Company paid, after September 30, 2024, $1.1 million to the settlement

administrator.

be no assurance as to the outcomes of the matters described or referenced above.

3 unchanged sentences

However, based on such information as is available

to us, we believe that the total of probable incurred losses for legal contingencies as of December 31, 2023 is $3.6 million, and that

the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described or identified above,

as of December 31, 2023 does not exceed $5.6 million.

to us, we believe that the range of reasonably possible losses for the legal proceedings and contingencies we face, including those described

or identified above, as of December 31, 2024 does not exceed $3.2 million.

Accordingly, we believe that

22 unchanged sentences

Lavin was previously engaged as an associate at a large law firm and a spin off start up law firm.

Danny Bharwani , 56, has

been Chief Financial Officer since September 2022 and Executive Vice President – Finance since December 2022.

Previously, he was

our Senior Vice President – Finance from April 2016 to December 2022 and Vice President – Finance from June 2002 to April

Danny Bharwani , 57,

has been Chief Financial Officer since September 2022 and Executive Vice President – Finance since December 2022.

Previously, he

was our Senior Vice President – Finance from April 2016 to December 2022 and Vice President – Finance from June 2002 to April

He joined us as Assistant Controller in August 1997.

22 unchanged sentences

Robinson held an administrative position at Greco &

Straten, 57 ,

has been Executive Vice President of Servicing since December 2022.

Prior to that, she was our Senior Vice President of Servicing

from August 2013 to December 2022 and Senior Vice President of Asset Recovery from April 2013 to August 2013, and before that she held

the position of Vice President of Asset Recovery starting in April 2005.

She started with the Company in March 1996 as a bankruptcy specialist

and took on more responsibility within Asset Recovery over time.

Prior to joining CPS she worked for the FDIC and served in the

United States Marine Corps.

Michele Baumeister ,

51 unchanged sentences

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