Item 3. Legal Proceedings
ITEM 3. LEGAL PROCEEDINGS
From time to time, we may become involved in various
lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an
adverse result in these or other matters may arise from time to time that may harm our business. Except as set forth below, we are currently
not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business,
financial condition or operating results.
Skube v. WHE Agency Inc., et al
A complaint against WHE, Creatd and Jeremy Frommer filed December 22, 2022, was filed in the Supreme Court of the State of New York, New
York County, by Jessica Skube, making certain claims alleging conversion, trespass to chattel, unjust enrichment, breach of contract,
fraud in the inducement, seeking damages of $161,000 and punitive damages of $500,000. Skube filed an Order to Show Cause, which the Company
opposed, which is currently pending. Given the premature nature of this case, it is still too early for the Company to make an assessment
as to
liability, but the $161,000 figure is far more likely than the $500,000.
Lind Global v. Creatd, Inc.
A complaint against Creatd dated September 21, 2022, has been filed in the Supreme Court of the State of New York, New York County, by
Lind Global Macro Fund LP and Lind Global Fund II LP, making certain claims alleging breach of contract related to two Securities Purchase
Agreements executed on May 31, 2022, seeking damages in excess of $920,000. The Company filed a Motion to Dismiss, which is currently
pending. Given the premature nature of this case, it is still too early for the Company to make an assessment as to liability.
Laurie Weisberg v. Creatd, Inc.
A confession of judgment against Creatd dated September 2, 2022, has
been filed in the Supreme Court of the State of New York, New York County, by Laurie Weisberg, making certain claims alleging breach of
contract related to an executive separation agreement also dated September 2, 2022, seeking damages of approximately $415,000 and legal
fees amounting to approximately $5,000. The Company and Ms. Weisberg are actively negotiating in an attempt to resolve the dispute. Given
the premature nature of this matter, is still too early for the Company to make an assessment as to liability.
ITEM 4. MINE SAFETY DISCLOSURES
Not Applicable.
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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.