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As additional information becomes available, we assess the potential liability related to our pending litigation and revise our estimates.
−Removed: See Note 18 - Subsequent Events, to the Condensed Consolidated Financial Statements for disclosure with respect to a recently filed purported Class Action.
+Added: A purported class action lawsuit was filed on November 10, 2020 in the United States District Court for the District of Delaware (Brown v.
+Added: JAKKS Pacific, Inc.
+Added: et al) alleging that the Proxy Statement issued in connection with the shareholder meeting held in June 2020 contained misstatements regarding the manner in which broker votes would be counted and that such votes were improperly included in approving our Reverse Stock Split at the meeting.
+Added: The purported class action seeks damages in an unspecified amount, alleging breach of fiduciary duties by our directors.
+Added: We intend to vigorously defend the lawsuit.
+Added: Since the action was recently commenced, however, we cannot assure you of its outcome and cannot estimate the range of any potential damage award.
+Added: On April 30, 2021, we held a Special Meeting of the Shareholders to obtain shareholder ratification of the filing of the Certificate of Amendment to our Certificate of Incorporation effecting the Reverse Stock Split, in accordance with ratification procedures under Delaware law, which approval was obtained.
+Added: We intend to seek settlement and dismissal of the lawsuit.
In the normal course of business, we may provide certain indemnifications and/or other commitments of varying scope to a) our licensors, customers and certain other parties, including against third party claims of intellectual property infringement, and b) our officers, directors and employees, including against third party claims regarding the periods in which they serve in such capacities with us.
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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.