3 unchanged sentences
See Note 11 in the accompanying condensed consolidated financial statements for a complete listing of legal proceedings, which include:
−Removed: ● On March 25, 2020, a Bailey’s product vendor filed a lawsuit against Bailey for non-payment of trade payables totaling $492,390.
−Removed: Approximately the same amount was held in accounts payable for this vendor in the accompanying consolidated balance sheets and the Company does not believe it is probable that losses in excess of such trade payables will be incurred.
−Removed: The Company and product vendor have entered into a settlement, which will require the Company make ten monthly payments of approximately $37,000, starting in May 2021.
−Removed: Upon completion of the payment schedule, any remaining amounts will be forgiven.
−Removed: If the Company fails to meet its obligations based on the prescribed time frame, the full amount will be due with interest, less payments made.
−Removed: The payment schedule was completed in 2022.
+Added: On March 21, 2023, a vendor filed a lawsuit against Digital Brands Group related to trade payables totaling approximately $43,501.
+Added: Such amounts include interest due, and are included in accounts payable, net of payments made to date, in the accompanying consolidated balance sheets.
+Added: The Company does not believe it is probable that the losses in excess of such trade payables will be incurred.
+Added: On February 7, 2023, a vendor filed a lawsuit against Digital Brands Group related to trade payables totaling approximately $182,400.
+Added: Such amounts include interest due, and are included in accounts payable, net of payments made to date, in the accompanying consolidated balance sheets.
+Added: The Company does not believe it is probable that the losses in excess of such trade payables will be incurred.
+Added: On November 9, 2022, a vendor filed a lawsuit against Digital Brand’s Group related to prior services rendered.
+Added: The claims (including fines, fees, and legal expenses) total an aggregate of $50.190.
+Added: The matter was settled in January 2023 and are on payment plans which will be paid off in April 2023.
+Added: In August 2020 and March 2021, two lawsuits were filed against Bailey’s by third-party’s related to prior services rendered.
+Added: The claims (including fines, fees, and legal expenses) total an aggregate of $96,900.
+Added: Both matters were settled in February 2022 and are on payment plans which will be paid off in July and September of 2023.
On December 21, 2020, a Company investor filed a lawsuit against DBG for reimbursement of their investment totaling $100,000.
1 unchanged sentence
The Company is actively working to resolve this matter.
−Removed: ● In August 2020 and March 2021, two lawsuits were filed against Bailey’s by third-party’s related to prior services rendered.
−Removed: The claims (including fines, fees, and legal expenses) total an aggregate of $96,900.
−Removed: One matter was settled in February 2022 and the other matter is being actively worked on to achieve settlement.
−Removed: ● On September 24, 2020 a Bailey’s product vendor filed a lawsuit against Bailey’s non-payment of trade payables totaling approximately $481,000 and additional damages of approximately $296,000.
−Removed: Claimed amounts for trade payables are included in accounts payable in the accompanying consolidated balance sheets, net of payments made.
−Removed: In December 2021, the Company reached a settlement;
−Removed: however, the settlement terms were not met and a judgement was entered against the Company in the amount of $469,000.
−Removed: ● All claims above, to the extent management believes it will be liable, have been included in accounts payable and accrued expenses and other liabilities in the consolidated balance sheet as of September 30, 2022.
+Added: A vendor filed a lawsuit against Bailey 44 related to a retail store lease in the amount of $1.5 million.
+Added: The Company is disputing the claim for damages and the matter is ongoing.
+Added: The vendor has recently updated the claim to now be $450,968 after signing a long-term lease with another brand for this location.
+Added: The Company is disputing this new amount after review of the lease.
+Added: The Company has been involved in a dispute with the former owners of H&J regarding its obligation to “true up” their ownership interest in our company further to that membership interest purchase agreement dated May 18, 2021 whereby we acquired all of the outstanding membership interests of H&J (the “H&J Purchase Agreement”).
+Added: Further to the H&J Purchase Agreement, we agreed that if, at May 18, 2022, the one year anniversary of the closing date of our initial public offering, the product of the number of shares of our common stock issued at the closing of such acquisition multiplied by the average closing price per share of our shares of common stock as quoted on the NasdaqCM for the thirty (30) day trading period immediately preceding such date plus the gross proceeds, if any, of shares of our stock issued to such sellers and sold by them during the one year period from the closing date of the offering does not exceed the sum of $9.1 million, less the value of any shares of common stock cancelled further to any indemnification claims or post-closing adjustments under the H&J Purchase Agreement, then we shall issue to the subject sellers an additional aggregate number of shares of common stock equal to any such valuation shortfall at a per share price equal to the then closing price per share of our common stock as quoted on the NasdaqCM.
+Added: We did not honor our obligation to issue such shares and the former owner of H&J have claimed that they were damaged as a result.
+Added: As part of a proposed settlement with such holders, the Company has tentatively agreed to the following:
+Added: (i) to transfer all membership interests of H&J back to the original owners, (ii) to pay such owners the sum of $229,000, (iii) issue the former owners of H&J an aggregate of $1,400,000 worth of our common stock to be issued on May 16, 2023 based on the lower of (a) the stock closing price per share on May 15, 2023, and (b) the average common stock closing price based on the average of the 5 trading days preceding May 16, 2023, with the closing price on May 9, 2023.
+Added: Such tentative terms are to be memorialized in definitive purchase agreements and as such there is no assurance that such arrangements will be finalized.
+Added: All claims above, to the extent management believes it will be liable, have been included in accounts payable and accrued expenses and other liabilities in the accompanying consolidated balance sheet as of March 31, 2023.
Except as may be set forth above the Company is not a party to any legal proceedings, and the Company is not aware of any claims or actions pending or threatened against us.
In the future, the Company might from time to time become involved in litigation relating to claims arising from its ordinary course of business, the resolution of which the Company does not anticipate would have a material adverse impact on our financial position, results of operations or cash flows.
+Added: Except as may be set forth above the Company is not a party to any legal proceedings, and the Company is not aware of any claims or actions pending or threatened against us.
+Added: In the future, the Company might from time to time become involved in litigation relating to claims arising from its ordinary course of business, the resolution of which the Company does not anticipate would have a material adverse impact on our financial position, results of operations or cash flows.
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.