Item 3. Legal Proceedings
Item 3. LEGAL PROCEEDINGS.
Legal Proceedings
From time to time, we are a party to or
otherwise involved in legal proceedings, claims and other legal matters, arising in the ordinary course of our business or
otherwise. During 2021, Forta had over 20 FINRA arbitrations that were pending. The claims arise from the sale to clients of
alternative investments (REITs, Business Development Loan Funds, and Oil and Gas securities). Most of the claims arise from
investments prior 2015. None of the registered representatives that recommended these alternative investments is currently
associated with Forta. Many of the claims have been settled, and most of the remaining claims are in settlement discussions. The
total amount of the currently pending claims may exceed the amount of insurance available. Forta no longer generates significant
revenue from brokerage activity like the sale of alternative investments. As part of its annual review of performance of its
subsidiaries, Company has decided to discontinue Forta’s broker/dealer operations and that transition is now in progress.
Item 4. MINE SAFETY DISCLOSURES.
Not applicable.
6
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.