3 unchanged sentences
The District of Columbia is seeking monetary damages, equitable relief, attorneys’ fees, interest and costs.
−Removed: While we intend to vigorously defend against this lawsuit, we are unable to predict the outcome or estimate the amount of loss, if any, that may result from the lawsuit.
+Added: While we continue to vigorously defend against this lawsuit, we are unable to predict the outcome or estimate the amount of loss, if any, that may result from the lawsuit.
While we do not believe that these proceedings will have a material adverse effect on our financial condition, we cannot give assurance that the proceedings will not have a material effect on our results of operations or cash flows in the event of a negative outcome.
1 unchanged sentence
The lawsuit was filed by the Wardman Tower Residential Condominium Unit Owners Association in the Superior Court of the District of Columbia on November 25, 2020.
−Removed: The lawsuit seeks damages resulting primarily from alleged construction and design deficiencies, alleged misrepresentations and claims alleged under the D.C.
−Removed: The lawsuit seeks $185.0 million in compensatory damages, plus treble damages related to the CPPA claims, and attorneys' fees and costs.
−Removed: The bench trial began on November 10, 2025 and concluded on March 5, 2026.
−Removed: The court has not issued a ruling as of the date of this filing.
−Removed: The Wardman Tower project was designed and constructed by other parties and achieved substantial completion prior to our formation.
−Removed: We were not involved in any way with the project but one of our subsidiary entities, that was recently made a defendant in the litigation, had previously entered into a project management agreement with the project owner.
−Removed: We deny liability for the claims asserted and have vigorously defended ourselves against the claims alleged in the litigation.
−Removed: However, no assurance can be given that the matter will be resolved favorably.
+Added: The lawsuit seeks damages resulting primarily from alleged construction and design deficiencies, and alleged misrepresentations and omissions, including claims under the CPPA.
+Added: The Wardman Tower project was designed and constructed by other parties and was substantially complete prior to our formation.
+Added: We have never had any ownership interest in the project.
+Added: One of our subsidiary entities, which was only made a defendant in the litigation during the trial, had acted under a project management agreement with the project owner.
+Added: The lawsuit sought compensatory damages and asked that those damages be trebled under the CPPA, plus attorneys' fees.
+Added: The bench trial began on November 10, 2025, and the last witness testified on March 5, 2026.
+Added: On July 31, 2026, the Court entered judgment in favor of Wardman Tower Residential Condominium Unit Owners Association, found damages in the amount of $118.7 million, and ordered the defendants, which include us, to pay treble that amount, or approximately $356.1 million in damages, plus attorneys’ fees in an amount to be determined.
+Added: We believe the judgment against us, including its conclusion that we are liable for acts of employees of a subsidiary providing services under a project management agreement between the project owner and another subsidiary, is not supported by the facts of the case or applicable law regarding corporate separateness.
+Added: We believe there are substantial grounds to challenge both the liability findings against us and the size and trebling of the award, and intend to appeal the judgment promptly, and continue to defend ourselves vigorously in this matter.
+Added: The timing and success of any appeal is uncertain, and we cannot be certain of the ultimate outcome of the case.
+Added: In assessing whether we should accrue a liability in our financial statements as a result of the judgment, we considered various factors, including the legal and factual circumstances of the case, the trial record, applicable law, the views of legal counsel and the likelihood of successful appeals.
+Added: As a result of this review, we concluded that a loss attributable to us from this case is not probable at this time and, therefore, a liability has not been recorded with respect to this case as of June 30, 2026.
+Added: While we believe it is not probable a loss will occur, the existence of the judgement indicates that it is reasonably possible that a loss could occur.
+Added: The estimate of the possible range of loss is $0 to the $356.1 million judgment, plus attorneys’ fees in an amount to be determined and post-judgment interest that will accrue during the appeal.
+Added: Additional developments in the lawsuit could affect these assumptions, and therefore, the amount of any accrual.
+Added: We anticipate that one or more bonds will be posted by the defendants to stay enforcement of the judgment pending the expected appeal, and to the extent we are required to collateralize any portion of the bonds, it may impact our liquidity.
There are various other legal actions arising in the ordinary course of business.
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Actual losses may differ materially from amounts recorded and the ultimate outcome of these legal proceedings is generally not yet determinable.
+Added: There have been no material changes to the risk factors previously disclosed in our Annual Report and in our Quarterly Report on Form 10-Q, filed on May 5, 2026.
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.