What changed in this filing

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Item 3. Legal Proceedings

2023-04-14 compared with 2022-03-18 · 41 added, 46 removed, 4 unchanged (96% of the section changed)

LEGAL PROCEEDINGS

August 7, 2018, we commenced an action against North Empire LLC, or North Empire, in the Supreme Court of the State of New York, County

of New York for breach of a Securities Purchase Agreement or Agreement in which we are seeking damages in an amount to be determined

at trial, but in no event less than $616,000.

On August 2, 2018, North Empire filed a Summons with Notice against us, also in the same

Court, in which they allege damages in an amount of $11.4 million arising from an alleged breach of the Agreement.

time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.

litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may

harm our business.

August 7, 2018, we commenced an action against North Empire LLC, or North Empire, in the Supreme Court of the State of New York,

County of New York for breach of a Securities Purchase Agreement or Agreement in which we are seeking damages in an amount to be

determined at trial, but in no event less than $616,000.

On August 2, 2018, North Empire filed a Summons with Notice against us,

also in the same Court, in which they allege damages in an amount of $11.4 million arising from an alleged breach of the Agreement.

On September 6, 2018, North Empire filed a Notice of Discontinuance of the action it had filed on August 2, 2018.

On September 27,

North Empire filed a Notice of Discontinuance of the action it had filed on August 2, 2018.

On September 27, 2018, North Empire filed

an answer and asserted counterclaims in the action commenced by us against them, alleging that we failed to deliver stock certificates

to North Empire causing damage to North Empire in the amount of $10,958,589.

North Empire also filed a third-party complaint against

our CEO and now former Chairman of the Board asserting similar claims against them in their individual capacities.

On October 17, 2018,

we filed a reply to North Empire’s counterclaims.

On November 15, 2018, our CEO and now former Chairman of the Board filed a motion

to dismiss North Empire’s third-party complaint.

On January 6, 2020, the Court granted the motion and dismissed the third-party

Discovery has been completed and both parties have filed motions for summary judgment in connection with the claims and counterclaims.

On December 30, 2021, the Court denied both My Size and North Empire’s motions for summary judgment, arguing there were factual

issues to be determined at trial.

On January 26, 2022, the Company filed a notice of appeal of the summary judgment decision.

must be fully perfected and filed by July 26, 2022.

On February 3, 2022, the Company filed a motion to reargue the Court’s decision

denying the Company’s motion for summary judgment.

North Empire will file its opposition papers on or before March 31, 2022, and

the Company will file reply papers on April 29, 2022.

The return date on the motion to reargue is scheduled for May 2, 2022.

2018, North Empire filed an answer and asserted counterclaims in the action commenced by us against them, alleging that we failed to

deliver stock certificates to North Empire causing damage to North Empire in the amount of $10,958,589.

North Empire also filed a

third-party complaint against our CEO and now former Chairman of the Board asserting similar claims against them in their individual

On October 17, 2018, we filed a reply to North Empire’s counterclaims.

On November 15, 2018, our CEO and now

former Chairman of the Board filed a motion to dismiss North Empire’s third-party complaint.

On January 6, 2020, the Court

granted the motion and dismissed the third-party complaint.

Discovery has been completed and both parties have filed motions for

summary judgment in connection with the claims and counterclaims.

On December 30, 2021, the Court denied both My Size and North

Empire’s motions for summary judgment, arguing there were factual issues to be determined at trial.

On January 26, 2022, the

Company filed a notice of appeal of the summary judgment decision.

On February 3, 2022, the Company filed a motion to reargue the

Court’s decision denying the Company’s motion for summary judgment.

On or about September 12, 2022, the Court issued its

Decision and Order denying the Company’s motion to reargue.

North Empire filed its opposing brief on December 7, 2022.

sides were given an opportunity to file a reply brief.

We filed our reply brief on January 4, 2023 and North Empire filed its reply

brief on January 13, 2023.

Oral argument was held before the Appellate Court on February 7, 2023.

On or about February 28, 2023, the

Appellate Court filed its Decision and Order, which affirmed the lower court’s decisions regarding both My Size and North

Empire’s motions for summary judgment and sent the case back to the Supreme Court.

On or about March 13, 2023, the Supreme

Court referred the case to its Alternative Dispute Program and ordered the cases to mediate.

A date for the mediation has not yet

We intend to vigorously defend any claims made by North Empire.

Venture Capital Ltd

5, 2021, we were served with a legal complaint filed by Fidelity Venture Capital Ltd.

and Dror Atzmon in the Magistrate’s

Court in Tel Aviv for a monetary award in an amount of NIS 1,436,679 (approximately $450,000) and a declaratory relief.

The plaintiffs

allege that we breached our contractual obligations to pay them for services allegedly rendered to the us by the plaintiffs under a certain

consulting agreement dated July 2, 2014, in an amount of NIS 819,000 (approximately $256,000).

Additionally, the plaintiffs allege that

the we should compensate them for losses allegedly incurred by them following their investment in the sour shares issued under a certain

private offering.

In the alternative, the plaintiffs move that the court will declare the investment agreement void with full restitution

of plaintiffs’ original investment in an amount of NIS 1,329,650 (approximately $415,000).

We filed our statement of defense on

October 25, 2021.

The first preliminary court hearing of the case is scheduled for January 23, 2022.

The first court preliminary hearing

was held on March 1, 2022.

Following the first preliminary hearing and the Court’s comments and recommendation, the Plaintiffs

filed a motion to strike out the claim without prejudice.

On March 8, 2022 the Court ordered dismissal without prejudice of the claim.

We believe it is more likely than not that the

counterclaims will be denied.

MINE SAFETY DISCLOSURES

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.

What changed 10-K

Item 3. Legal Proceedings