Item 1. Legal Proceedings
Item 1. 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.
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, seeking to enforce
payment of approximately $415,000 under an executive separation agreement also dated September 2, 2022. Ms. Weisberg also seeks payment
of legal fees amounting to approximately $5,000. The Company and Ms. Weisberg are actively negotiating in an attempt to resolve the dispute.
The Company does not expect the liability to exceed $420,000.
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