Item 3. Legal Proceedings
Item 3. LEGAL PROCEEDINGS
On or about April 13, 2020, Ian Patterson, the
Chief Operations Officer of AVX resigned from his position. 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. The complaint alleges claims including discrimination, 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. In response to the Complaint, defendants
filed a motion to compel arbitration asking the court to order Plaintiff to submit his claims to binding individual arbitration based
on an arbitration agreement signed by Plaintiff at the outset of his employment. The motion was unfortunately denied, and in response,
defendants filed an appeal. The appeal was also denied. Trial for this matter is not set, nor has discovery been conducted.
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.
On or about April 14, 2020, Devesa Sarria, the
Sales and Marketing Director, was terminated. 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 discrimination, 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. We have completed written discovery and most of the non-expert discovery. Trial is set
for October 11, 2023. 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.