What changed in this filing

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Item 1. Legal Proceedings

2020-11-16 compared with 2020-08-13 · 39 added, 20 removed, 29 unchanged (67% of the section changed)

26 unchanged sentences

in his individual capacity.

On June 29, 2020, an attorney entered an appearance for Mr.

and filed (i) a motion to substitute Jacksonville Injury Center, LLC as the plaintiff and (ii) a motion for leave to file an amended

All of the defendants have filed oppositions to the motion to substitute and motion for leave to amend.

new complaint continues to allege fraud, but also purports to plead a shareholder derivative lawsuit in connection with a claim

of an improper transfer of assets to the Company.

The new proposed complaint also names the Company as a new defendant.

in the matter has been stayed since July of 2019.

The matter is set for trial in September of 2020, but we do not expect the trial

to go forward given the pending motions to dismiss and stay of discovery.

We believe the lawsuit has no merit, and we intend to

vigorously defend our position.

June 29, 2020, an attorney entered an appearance for Mr.

Meide and filed (i) a motion to substitute Jacksonville Injury Center,

LLC as the plaintiff and (ii) a motion for leave to file an amended complaint.

All of the defendants have filed oppositions to

the motion to substitute and motion for leave to amend.

The proposed new complaint continues to allege fraud, but also purports

to plead a shareholder derivative lawsuit in connection with a claim of an improper transfer of assets to the Company.

proposed complaint also names the Company as a new defendant.

Discovery in the matter has been stayed since July of 2019.

matter is set for trial in September of 2020, but we do not expect the trial to go forward given the pending motions to dismiss

and stay of discovery.

We believe the lawsuit has no merit, and we intend to vigorously defend our position.

September 4, 2020, the court entered an order dismissing with prejudice Mr.

Meide’s claim for federal securities fraud.

In its order, the court directed the clerk of court to enter judgment in favor of PEC and related defendants on Mr.

Meide’s

claim for federal securities fraud.

The court also denied Mr.

Meide’s attempt to file a third amended complaint or substitute

plaintiffs in the action.

The court dismissed without prejudice the remaining state law claims on the ground that the court declined

to exercise supplemental jurisdiction over them.

The state law claims may be reasserted in state court.

The court also reserved

jurisdiction to determine whether an award of sanctions against Mr.

Meide is appropriate.

The court has ordered the parties to

mediation with respect to the issue of sanctions and, in the event that the mediation is unsuccessful, the court has indicated

that it will set a deadline for the filing of any motions for an award of sanctions against Mr.

The court-ordered mediation

is set for December 10, 2020.

Kriss and Eric Lerner vs.

FaceBank Group, Inc.

On June 8, 2020, Andrew Kriss and Eric Lerner (the “Plaintiffs”)

filed a Summons with Notice in the Supreme Court of the State of New York, Nassau County naming as defendants FaceBank Group, Inc.,

John Textor and Frank Patterson, among others (Index No.

The Notice lists claims for breach of express contract and

implied duties, fraud, aiding and abetting fraud, fraud in the inducement, fraudulent misrepresentation, fraudulent concealment,

fraudulent conveyance, unjust enrichment and declaratory relief, and states that the Plaintiffs seek monetary damages in an amount

to be proven at trial, but not less than six million dollars ($6,000,000) on the breach of contract claim with interest from the

date of the alleged breach on September 9, 2014.

As of August 13, 2020, the Company had not been served.

June 8, 2020, Andrew Kriss and Eric Lerner (the “Plaintiffs”) filed a Summons with Notice in the Supreme Court of

the State of New York, Nassau County naming as defendants Company, Inc., PEC, John Textor and Frank Patterson, among others (Index

On November 12, 2020, Plaintiffs filed a Complaint, which asserts claims for breach of express contract and implied

duties, fraud in the inducement, unjust enrichment, conversion, declaratory relief, fraud and fraudulent conveyance.

arise from an alleged relationship between Plaintiffs and defendant PEC.

Plaintiffs seek monetary damages in an amount to be proven

at trial, but not less than six million dollars ($6,000,000).

The Company intends to vigorously defend this litigation.

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.

What changed 10-Q

Item 1. Legal Proceedings