Item 1. Legal Proceedings
Item 1. Legal Proceedings
Many aspects of the Company’s business involve
substantial risks of liability. In the ordinary course of business, the Company may be named as defendant or co-defendant in various legal
actions, including arbitrations, class actions and other litigation, which could create substantial exposure and periodic expenses. The
Company may also be involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental
and self-regulatory agencies regarding the Company’s business, which may result in expenses, adverse judgments, settlements, fines,
penalties, injunctions or other relief. In the past in the ordinary course of business, the Company has actively pursued legal remedies
to enforce its intellectual property rights and to stop unauthorized use of its technology.
In March 2024, the Company received a notice of
petition of a filed action seeking relief related to the hiring in March 2024 of new registered representatives from the representatives’
former employer. This notice was filed against the Company’s subsidiary Dominari Securities. The Company does not agree with the
claim of the plaintiff and will defend itself accordingly. While the Company intends to defend itself vigorously from this claim, it is
unable to predict the outcome of such legal proceeding. Any potential loss as a result of this legal proceeding cannot be reasonably estimated.
As a result, the Company has not recorded a loss contingency for the aforementioned claim.
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