Hilton Grand Vacations Inc. 10-Q

Item 1. Legal Proceedings Currently, and from time to time, we are subject to claims in legal proceedings arising in the normal course of business, including, among others, legal proceedings for which we accrue liabilities as discussed in Note 18: Commitments and Contingencies , to our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. Related to the Legacy-Diamond business, an appeal for judgment was rendered in favor of the plaintiffs in November 2023 (with the California Supreme Court rejecting further appeals in February 2024) related to a personal injury lawsuit, O’Malley et al. v. Diamond Resorts Management, Inc ., which was filed against Diamond in 2015. As of March 31, 2024, the judgment of approximately $104 million was satisfied. Of this $104 million, we made a payment of approximately $50 million and our insurance policies covered the remaining $54 million. While we presently believe that the ultimate outcome of any currently known proceedings, individually and in the aggregate, will not materially harm our financial position, cash flows, or overall trends in results of operations, legal proceedings are inherently uncertain, and unfavorable rulings could, individually or in the aggregate, have a material adverse effect on our business, financial condition, or operating results.