Item 1. Legal Proceedings
Item
1. Legal Proceedings
From
time to time we may be subject to litigation and arbitration claims incidental to the Company’s business. Such claims may not be
covered by our insurance coverage, and even if they are, if claims against us are successful, they may exceed the limits of applicable
insurance coverage.
The
Company and its Chief Executive Officer are parties to civil complaints filed in the Superior Court for the State of California, County
of Orange by a former employee, Robert Rankin, who resigned as the Company’s Chief Financial Officer, Secretary, and Treasurer
on March 30, 2020. Originally filed as two separate complaints, Rankin v. Hancock Jaffe Laboratories, Inc. et al., Case No. 30-2020-01146555-CU-WR-CJC
and Rankin v. Hancock Jaffe Laboratories, Inc. et al., Case No. 30-2020-01157857, they have now been consolidated and will be tried concurrently.
The
complaints assert causes of action alleging constructive discharge in violation of public policy, failure to timely pay Mr. Rankin’s
accrued and unused vacation and three months’ severance under his July 16, 2018 employment agreement, retaliation under Labor Code
Section 1102.5, unfair competition, defamation, and sex-based discrimination, and seeks damages for back pay, lost and unpaid wages,
emotional and mental distress, consequential damages, punitive damages, compensatory damages and attorney’s fees and costs.
The
Company denies all claims in these matters, is vigorously defending same, and has asserted counterclaims against Mr. Rankin contending
that he breached his fiduciary duty and employment agreement with the Company and the Company incurred damages as a result. The Company
continues to believe it has meritorious defenses to these matters, which are currently set for trial on August 12, 2024.
Item
1A. Risk Factors
As
a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required
by this Item. Our current risk factors are set forth in our Form 10-K, filed with the SEC on February 29, 2024.
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item
3. Defaults upon Senior Securities
None.
Item
4. Mine and Safety Disclosure
Not
applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.