Item 1. Legal Proceedings
Item 1. Legal Proceedings
On April 22, 2020, Paycom Payroll, LLC (“Payroll”), a wholly owned subsidiary of the Company, filed a petition against the Oklahoma Council for Public Affairs, Inc. (the “OCPA”), Paycom Payroll, LLC v. Oklahoma Council for Public Affairs, Inc. , Okla. Cty. Dist. Ct., Case No. CJ-2020-1950 and Appeal Case No. DF-119344, seeking monetary damages for defamation and tortious interference with contract in connection with the OCPA’s alleged dissemination of false statements. The OCPA filed two motions to dismiss, seeking dismissal of the lawsuit with prejudice and also seeking the OCPA’s attorneys’ fees and costs, and sanctions. On December 30, 2020, the Court granted dismissal of all of Payroll’s claims on grounds that Payroll failed to sufficiently establish proof of malice and or special damages. On January 29, 2021, Payroll appealed the trial court’s December 30, 2020 ruling and the appeal remains pending in the Supreme Court of the State of Oklahoma. Payroll anticipates that it will incur attorneys’ fees and sanctions liability if the trial court’s December 30, 2020 ruling is not reversed on appeal. The OCPA has filed Motions to Assess attorneys’ fees and sanctions that may be heard and decided by the trial court prior to a ruling on the appeal. Any amount of attorneys’ fees and costs, and sanctions awarded by the trial court would be subject to the pending appeal and cannot reasonably be estimated at this time .
From time to time, we are involved in various disputes, claims, suits, investigations and legal proceedings arising in the ordinary course of business. We believe that the resolution of current pending legal matters will not have a material adverse effect on our business, financial condition, results of operations or cash flows. Nonetheless, we cannot predict the outcome of these proceedings, as legal matters are subject to inherent uncertainties, and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on our business, financial condition, results of operations or cash flows.
Item 1A. Risk Factors
There have been no material changes from the information set forth in “Item 1A. Risk Factors” in the Form 10-K filed with the SEC on February 18, 2021.
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