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Accordingly, we review the adequacy of accruals and disclosures each quarter in consultation with legal counsel, and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements.
−Removed: On July 14, 2017, a current hourly employee filed a class action lawsuit alleging that the Company failed to provide required meal breaks and rest periods and failed to reimburse business expenses, among other claims.
−Removed: The case is styled Manuel Vigueras v.
−Removed: Red Robin International, Inc.
−Removed: and is currently pending before the United States District Court in Santa Ana, California.
−Removed: Trial is expected to commence on or about February 25, 2020.
−Removed: In a related action, on September 21, 2017, a companion case, styled Genny Vasquez v.
−Removed: Red Robin International, Inc.
−Removed: was filed and is currently pending in California Superior Court in Santa Ana, California and involves claims under the California Private Attorneys’ General Act (“PAGA”) that partially overlap in the claims made in the Vigueras matter.
−Removed: Trial for that case is expected to commence on April 13, 2020.
−Removed: We believe we have meritorious defenses to each of the claims in these lawsuits and intend to defend vigorously these allegations.
−Removed: However, there can be no assurance we will be successful, and an adverse resolution of any one of these cases could have a material adverse effect on our consolidated financial position and results of operations in the period in which the case is resolved.
+Added: In July 2017, an hourly Team Member filed a class action lawsuit before the United States District Court in Santa Ana, California (Vigueras v.
+Added: Red Robin International, Inc.) alleging that the Company failed to provide required meal breaks and rest periods and failed to reimburse business expenses, among other claims.
+Added: In the first quarter of 2020, the Company reached a tentative settlement agreement resolving all claims in both cases for an aggregate $ 8.5 million.
+Added: An additional $ 4.5 million was accrued during the Company's first fiscal quarter of 2020 to fully reserve the $ 8.5 million settlement amount, which was paid out in January 2021.
In the normal course of business, there are various claims in process, matters in litigation, and other contingencies.
These include employment related claims and claims from Guests or Team Members alleging illness, injury, food quality, health, or operational concerns.
−Removed: To date, no claims of these types of litigation, certain of which are covered by insurance policies, have had a material effect on the Company.
+Added: To date, none of these claims, certain of which are covered by insurance policies, have had a material effect on the Company.
While it is not possible to predict the outcome of these suits, legal proceedings, and claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the financial statements and that the ultimate resolution of these matters will not have a material adverse effect on our financial position and results of operations.
+Added: However, a significant increase in the number of these claims, or one or more successful claims resulting in greater liabilities than we currently anticipate, could materially and adversely affect our business, financial condition, results of operations, and cash flows.
+Added: Including the accrued liabilities related to the Vigueras settlement, as of December 27, 2020, we had a balance of $ 10.5 million for loss contingencies on our consolidated balance sheets.
+Added: We ultimately may be subject to greater or less than the accrued amount.
Mine Safety Disclosures
Not applicable.
+Added: Tabl e of Contents
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.