Item 3. Legal Proceedings
ITEM
3. LEGAL PROCEEDINGS.
On
November 14, 2022, Ozop Energy Systems, Inc. filed a complaint in the Superior Court for County of San Diego, State of California, Ozop
Energy Systems, Inc. v. Serna, et al ., Case No. 37-2022-00046102-CU-BT-NC, against five former employees, and a corporation owned
by two of those defendants, Your Home Solution Corp. (“YHS”), which asserts claims for (1) fraud and deceit; (2) breach of
duty of loyalty; (3) intentional interference with prospective economic advantage; (4) violation of Penal Code section 496; (5) violation
of Business and Professions Code section 17200, et. seq.; (6) and accounting. The Complaint alleges that the individual defendants, while
working for Ozop Energy Systems, Inc., illegally diverted customers and profits that belonged to Ozop Energy Systems, Inc. The Complaint
seeks damages in the form of past and future profits, restitution of compensation, and punitive damages.
Other
than the above, we know of no legal proceedings to which we are a party or to which any of our property is the subject, which are pending,
threatened or contemplated or any unsatisfied judgments against the Company.
ITEM
4. MINE SAFETY DISCLOSURES.
Not
applicable.
PART
II
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.