11 unchanged sentences
The Wells Notices related to, among other things, the Company’s reporting of its financial performance for its fiscal year ended September 30, 2016, certain disclosures related to executive compensation, and its previous acquisition of ApplianceSmart.
−Removed: On August 2, 2021, the SEC filed a civil complaint (the “SEC Complaint”) in the United States District Court for the District of Nevada naming the Company and two of its executive officers as defendants (collectively, the "Defendants").
+Added: On August 2, 2021, the SEC filed a civil complaint (the “SEC Complaint”) in the United States District Court for the District of Nevada naming the Company and two of its executive officers as defendants (collectively, the “Defendants”).
The SEC Complaint alleges various financial, disclosure, and reporting violations related to income and earnings per share, purported undisclosed stock promotion and trading, and undisclosed executive compensation from 2016 through 2018.
6 unchanged sentences
The Company continues to assert that the SEC’s pursuit of this matter will not result in any benefit to investors and instead will only serve as a distraction from its core business activities.
−Removed: On October 1, 2021, the Company, filed a motion with the court to dismiss the complaint.
−Removed: The SEC filed its response opposing the motion on November 1, 2021.
+Added: On October 1, 2021, the Defendants, filed their motions with the court to dismiss the complaint.
+Added: The SEC filed its response opposing the motions on November 1, 2021.
The Defendants filed their reply to the SEC’s opposition on November 15, 2021.
The motions to dismiss are now under submission and the court has not yet scheduled a hearing date.
−Removed: Pursuant to the automatic stay of proceedings under the Private Securities Litigation Reform Act, all discovery has been stayed pending the motions to dismiss.
+Added: Pursuant to the automatic stay of proceedings under the Private Securities Litigation Reform Act, all discovery has been stayed pending a ruling on the motions to dismiss.
The Defendants strongly dispute and deny the allegations and intend to continue to defend themselves vigorously against the claims.
5 unchanged sentences
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.