Item 3. Legal Proceedings
Item 3. LEGAL PROCEEDINGS
On April 13, 2020, Ian Patterson resigned from
his position as Chief Operations Officer of AVX. On May 5, 2020, Mr. Patterson filed an action in the Superior Court for the County of
Los Angeles, State of California, against the Company et al. We believe neither the Company nor Dr. Wang has been served properly and
venue is improper. The complaint alleges claims including wrongful termination, retaliation and various other provisions of the California
Labor Code, and various other claims under California state law. The complaint seeks unspecified economic and non-economic losses, as
well as attorneys’ fees. The Company is investigating and intends to vigorously defend itself in the foregoing matter. We have completed
written discovery and non-expert discovery. Trial is set for May 31, 2022. AVX intends to vigorously contest this matter. Further, AVX
disputes that the other defendants are proper parties to the litigation. However, litigation and investigations are inherently uncertain.
Accordingly, the Company cannot predict the outcome of this matter.
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On April 13, 2020, AVX terminated an employee
from her position as Sales and Marketing Director. On May 13, 2020, she filed an action in the Superior Court for the County of Los Angeles,
State of California. The Complaint alleges claims including wrongful termination, retaliation and various other provisions of the California
Labor Code, and various other claims under California state law. The complaint seeks unspecified economic and non-economic losses, as
well as attorneys’ fees. The Company is investigating and intends to vigorously defend itself in the foregoing matters. In response
to the Complaint, defendants filed a motion to compel arbitration asking the court to order Plaintiff to submit her claims to binding
individual arbitration based on an arbitration agreement signed by Plaintiff at the outset of her employment. The motion was denied, and
in response, defendants filed an appeal which is currently pending. The appeal is anticipated to take the majority of 2022 before it is
resolved. AVX intends to vigorously contest this matter. Further, AVX disputes that the other defendants are proper parties to the litigation.
However, litigation and investigations are inherently uncertain, but the outcome could have a material impact on the Company.
Item 4. MINE SAFETY DISCLOSURES
Not applicable to our Company.
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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.