Legal Proceedings.
−Removed: Other than as disclosed below under "Certain Legal Matters," the Company is not currently a party to any legal proceeding, investigation or claim which, in the opinion of the Company's management, is likely to have a material adverse effect on the business, financial condition, results of operations or cash flows of the Company.
−Removed: Legal fees associated with such legal proceedings are expensed as incurred.
−Removed: We review legal proceedings and claims on an ongoing basis and follow appropriate accounting guidance, including Financial Accounting Standards Board Accounting Standards Codification 450 ("ASC 450"), Contingencies , when making accrual and disclosure decisions.
−Removed: We establish accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading.
−Removed: To estimate whether a loss contingency should be accrued by a charge to income, we evaluate, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of such loss.
−Removed: We do not accrue liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated.
−Removed: In addition, we may be involved in litigation from time to time in the ordinary course of business.
−Removed: We do not believe that the ultimate resolution of any such matters will have a material adverse effect on our business, financial condition, results of operations or cash flows.
−Removed: However, the results of such matters cannot be predicted with certainty, and we cannot assure you that the ultimate resolution of any legal or administrative proceeding or dispute will not have a material adverse effect on our business, financial condition, results of operations and cash flows.
−Removed: Certain Legal Matters
−Removed: The Company had been involved in a Telephone Consumer Protection Act class action, Daniel Berman v.
−Removed: Freedom Financial Network , which was originally filed in the Northern District of California in 2018.
−Removed: On May 31, 2023, the parties entered into an Amended Class Action Settlement Agreement (the "Berman Settlement Agreement"), which included injunctive provisions and payment to plaintiffs of $9.75 million for legal fees and a consumer redress fund, of which the Company was responsible for $3.1 million due upon final approval of the settlement.
−Removed: That amount had been accrued as of December 31, 2022.
−Removed: On July 28, 2023, the Court preliminarily approved the Berman Settlement Agreement.
−Removed: The final approval of the Berman Settlement Agreement was filed on February 23, 2024.
−Removed: The Company made a cash payment of $1.1 million on March 15, 2024 and entered into a $2.0 million interest-bearing note provided by co-defendant, Freedom Financial Network, as discussed in Note 5, Long-term debt, net , to its consolidated financial statements, to satisfy its obligations under the Berman Settlement Agreement.
+Added: From time to time, we may be subject to litigation and claims arising in the ordinary course of business.
+Added: We are not currently a party to any material legal proceedings and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results, cash flows, or financial condition.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.