3 unchanged sentences
Where a liability is probable and there is a range of estimated loss with no best estimate in the range, we record the minimum estimated liability related to the claim.
−Removed: As additional information becomes available, we assess the potential liability related to our pending litigation and revise our estimates.
−Removed: A purported class action lawsuit was filed on November 10, 2020 in the United States District Court for the District of Delaware (Brown v.
−Removed: JAKKS Pacific, Inc.
−Removed: 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.
−Removed: The purported class action seeks damages in an unspecified amount, alleging breach of fiduciary duties by our directors.
−Removed: We intend to vigorously defend the lawsuit.
−Removed: Since the action was recently commenced, however, we cannot assure you of its outcome and cannot estimate the range of any potential damage award.
−Removed: 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.
−Removed: We intend to seek settlement and dismissal of the lawsuit.
+Added: As additional information becomes available, we assess the potential liability related to its pending litigation and revises our estimates.
A putative class action lawsuit was filed on May 18, 2021 in the Superior Court of the State of California for the County of Los Angeles (Isaiah Villarica v.
5 unchanged sentences
Plaintiff seeks unpaid wages, meal and rest period premiums, interest, various statutory penalties, attorneys’ fees, and costs, all in unspecified amounts.
−Removed: We intend to vigorously defend the lawsuit.
−Removed: 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: Workforce Enterprises has also been named as a defendant in this matter.
+Added: The same counsel in the Villarica matter filed a related lawsuit on February 15, 2022 in the same court (Matthew Cordova v.
+Added: JAKKS Pacific, Inc).
+Added: Plaintiff also formerly worked in one of our warehouses and was retained via Workforce Enterprises, a provider of temporary employees.
+Added: The lawsuit alleges that we committed wage and hour violations under the California Private Attorneys General Act, including failing to provide compliant meal and rest periods, properly calculate and pay all minimum and overtime wages, provide accurate wage statements, provide all wages due at separation of employment, provide sick leave, maintain accurate payroll records, or reimburse business expenses.
+Added: Plaintiff seeks to collect civil penalties on behalf of the State of California under the Private Attorneys General Act for each violation experienced by “aggrieved employees,” defined as all individuals who have worked for us—either directly or through a staffing agency—in California since December 8, 2020 and who were classified as non-exempt.
+Added: At a mediation between us, counsel to three temporary providers who provided temporary employees to us during the relevant time periods, and counsel for both lawsuits occurred on March 24, 2022.
+Added: We are responsible for our own fees related to the lawsuits and have demanded and are in the process of obtaining indemnification for the settlement amounts for both of these matters from the three temporary employee providers who supplied temporary employees to us during the relevant time periods at issue in the lawsuits.
+Added: Following mediation in March 2022, we agreed to settlement terms with respect to both cases and are currently waiting for the settlement paperwork to be finalized.
+Added: We currently expect to incur only a nominal amount to settle both cases.
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.
2 unchanged sentences
For the past five years, costs related to director and officer indemnifications have not been significant.
−Removed: Other than certain liabilities recorded in the normal course of business related to royalty payments due our licensors, no liabilities have been recorded for indemnifications and/or other commitments.
+Added: Other than certain liabilities recorded in the normal course of business related to royalty payments due to our licensors, no liabilities have been recorded for indemnifications and/or other commitments.
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.