Item 3. Legal Proceedings
Item 3. 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, we actively pursued legal remedies to enforce
our intellectual property rights and to stop unauthorized use of our technology. In March 2024, the Company received a notice of petition
of a filed action seeking relief related to the March 2024 affiliates of new registered representatives. 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.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
23
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.