What changed in this filing

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Item 3. Legal Proceedings

2022-02-28 compared with 2021-03-04 · 6 added, 38 removed, 3 unchanged (94% of the section changed)

LEGAL PROCEEDINGS

The Company is subject

to certain legal and other claims that arise in the ordinary course of its business.

In particular, the Company and its subsidiaries

are named in and subject to various proceedings and claims arising primarily from our securities business activities, including

lawsuits, arbitration claims, class actions, and regulatory matters.

Some of these claims seek substantial compensatory, punitive,

or indeterminate damages.

The Company and its subsidiaries are also involved in other reviews, investigations, and proceedings

by governmental and self-regulatory organizations regarding our business, which may result in adverse judgments, settlements, fines,

penalties, injunctions, and other relief.

In view of the number and diversity of claims against our company, the number of jurisdictions

in which litigation is pending, and the inherent difficulty of predicting the outcome of litigation and other claims, we cannot

state with certainty what the eventual outcome of pending litigation or other claims will be.

Notwithstanding this uncertainty,

the Company does not believe that the results of these claims are likely to have a material effect on its financial position or

results of operations.

On January 5, 2017, complaints

filed in November 2015 and May 2016 naming MLV & Co.

(“MLV”), a broker-dealer subsidiary of B.

Riley Securities

(fka FBR), as a defendant in putative class action lawsuits alleging claims under the Securities Act, in connection with the offerings

of Miller Energy Resources, Inc.

(“Miller”) have been consolidated.

The Master Consolidated Complaint, styled Gaynor

Miller et al., is pending in the United States District Court for the Eastern District of Tennessee, and, like its predecessor

complaints, continues to allege claims under Sections 11 and 12 of the Securities Act against nine underwriters for alleged material

misrepresentations and omissions in the registration statement and prospectuses issued in connection with six offerings (February

June 28, 2013;

September 26, 2013;

October 17, 2013 (as to MLV only) and August 21, 2014) with an alleged

aggregate offering price of approximately $151,000.

The Court ordered mediation before a federal magistrate took place on August

6, 2019, with no resolution.

In December 2019, the Court remanded the case to state court.

In July 2020, the Company signed a binding

term sheet to settle this matter, subject to court approval which is expected to be received in early 2021.

An accrual for the

settlement is included in the accompanying consolidated financial statements.

The Company is subject to certain legal and other claims that arise in the ordinary course of its business.

In particular, the Company and its subsidiaries are named in and subject to various proceedings and claims arising primarily from our securities business activities, including lawsuits, arbitration claims, class actions, and regulatory matters.

Some of these claims seek substantial compensatory, punitive, or indeterminate damages.

The Company and its subsidiaries are also involved in other reviews, investigations, and proceedings by governmental and self-regulatory organizations regarding our business, which may result in adverse judgments, settlements, fines, penalties, injunctions, and other relief.

In view of the number and diversity of claims against our company, the number of jurisdictions in which litigation is pending, and the inherent difficulty of predicting the outcome of litigation and other claims, we cannot state with certainty what the eventual outcome of pending litigation or other claims will be.

Notwithstanding this uncertainty, the Company does not believe that the results of these claims are likely to have a material effect on its financial position or results of operations.

MINE SAFETY DISCLOSURES

1 unchanged sentence

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