Item 3. Legal Proceedings
ITEM 3. LEGAL PROCEEDINGS
From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of its business. Although the Company cannot accurately predict the amount of any liability that may ultimately arise with respect to any of these matters, it makes provision for potential liabilities when it deems them probable and reasonably estimable. These provisions are based on current information and legal advice and may be adjusted from time to time according to developments.
The following parties have filed claims against Hammer Fiber Optics Investments Ltd and are not secured:
Calvi Electric v. Hammer Fiber Optics Inv, Ltd.
$
9209.69
Horizon Blue Cross v. Hammer Fiber Optics Inv, Ltd.
$
17,308.58
Cross River Fiber v. Hammer Fiber Optics Inv, Ltd.
$
273,220
The matter of 15 Corporate Place, LLC v. Open Data Centers, LLC settled for $25,000 plus acceptance of the security deposit which has already been written down in assumption of this outcome. The final settlement was less than the $35,000 originally offered.
Cross River Fiber has advanced its claim against Hammer Fiber Optics Investments, Ltd. Cross River Fiber has expanded its claim to include Hammer Fiber Optics Holdings Corp, 1stPoint Communications, LLC, Endstream Communications, LLC, Open Data Centers, LLC, Manhattan Carrier Company, LLC, Erik Levitt personally, Local Telecommunications Services – FL, LLC, Local Telecommunications Services – NY, LLC, American Network Inc and Hammer Wireless Corporation. There never was, nor has there ever been, a contract between any of these entities or Mr. Levitt personally and Cross River Fiber, nor is there any security under the agreement between Cross River Fiber and Hammer Fiber Optics Investments, Ltd. After discovery in the claim against Hammer Fiber Optics Holdings Corp and its subsidiaries, Hammer has made a motion for Summary Judgement to dismiss the claim on the basis of the lack of evidence that any entity other than Hammer Fiber Optics Investments, Ltd. was a party to the claim. The claims in this matter are similar to those made by Zayo Group and Crown Castle Fiber, which were both settled.
As all of these matters are either not advancing, nor do we expect an unfavorable outcome of any of these matters, we have not made any further accruals or adjustments to our assets, liabilities, equity or expense as a result of these claims.
ITEM 4. [RESERVED]
9
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.