Item 3. Legal Proceedings
Item 3. Legal Proceedings
We are, and from time to time
may become, involved in various legal proceedings arising in the normal course of our business activities, such as copyright infringement
and tort claims arising from user-uploaded content, patent infringement claims, breach of contract claims, government demands, putative
class actions based upon consumer protection or privacy laws and other matters. The amounts that may be recovered in such matters may
be subject to insurance coverage.
In January 2021, we filed
an antitrust lawsuit against Google in the United States District Court for the Northern District of California, alleging that Google
unlawfully gives an advantage to its YouTube platform over Rumble in search engine results and in the mobile phone market. In June 2021,
Google filed a partial motion to dismiss the lawsuit and a motion to strike; in July 2022, the court denied Google’s motion. The
case is currently in discovery, with trial scheduled for May 2025.
In January 2022, we received
notification of a lawsuit filed by Kosmayer Investment Inc. (“KII”) against Rumble and Mr. Pavlovski in the Ontario Superior
Court of Justice, alleging fraudulent misrepresentation in connection with KII’s decision to redeem its shares of Rumble in August
2020. KII is seeking rescission of such redemption such that, following such rescission, KII would own 20% of the issued and outstanding
shares of Rumble or, in the alternative, damages for the lost value of the redeemed shares, which KII has alleged to be worth $419.0 million
(based on the value ascribed to the shares of Rumble in the Business Combination), together with other damages including punitive damages
and costs. The case is currently in discovery. Although we believe that the allegations are meritless and intend to vigorously defend
against them, the result or impact of such claims is uncertain, and could result in, among other things, damages, and/or awards of attorneys’
fees or expenses.
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In August 2022, we received
notification of a patent infringement lawsuit in the United States District Court for the Middle District of Florida by Interactive Content
Engines LLC (“ICE”), a non-practicing entity. We agreed to settle the lawsuit in March 2024; the material terms of the settlement
include no payment by Rumble to ICE and a covenant by ICE not to sue any current Rumble entity for patent infringement.
In October 2022 and December
2023, we received notifications of two putative class action lawsuits alleging violations of the Video Privacy Protection Act (VPPA).
In December 2023, the U.S. District Court for the Middle District of Florida dismissed the first VPPA lawsuit based on the forum selection
clause in our terms and conditions. Shortly thereafter, the plaintiff in the second VPPA lawsuit voluntarily dismissed his complaint.
The plaintiff in the first VPPA lawsuit appealed the district court’s decision to the U.S. Court of Appeals for the Eleventh Circuit;
in March 2024, the parties agreed to the voluntary dismissal of the appeal, with each party bearing its own costs and no consideration
being exchanged.
Along with co-plaintiff Eugene
Volokh, in December 2022, we filed a lawsuit in the U.S. District Court for the Southern District of New York to block the enforcement
of New York State’s Social Media Law. In February 2023, the court granted our motion for a preliminary injunction, halting enforcement
of the law. The New York Attorney General appealed that decision to the U.S. Court of Appeals for the Second Circuit; that appeal remains
pending.
In February 2023, we filed
a petition in the Court of Chancery under 8 Del. C. §205, or Section 205 of the Delaware General Corporation Law (the “Petition”)
to resolve potential uncertainty with respect to our authorized share capital that was introduced by the holding in Garfield v. Boxed,
Inc. , 2022 WL 17959766 (Del. Ch. Dec. 27, 2022). The Court of Chancery granted our petition in March 2023 and entered an order under
8 Del. C. §205 (1) declaring our current certificate of incorporation (the “Current Certificate of Incorporation”), including
the filing and effectiveness thereof, as validated and effective retroactive to the date of its filing with the Office of the Secretary
of State of the State of Delaware on September 15, 2022, and all amendments effected thereby and (2) ordering that our securities (and
the issuance of the securities) described in the Petition and any other securities issued in reliance on the validity of the Current Certificate
of Incorporation are validated and declared effective, each as of the original issuance dates.
In November 2023, we filed
a defamation lawsuit in the U.S. District Court for the Middle District of Florida against Nandini Jammi and Claire Atkin, co-founders
of an organization that targets news outlets and platforms that do not adhere to their political worldview. The lawsuit seeks actual,
presumed, and punitive damages against Jammi and Atkin for their defamatory statements about Rumble, in addition to all costs and fees
associated with the case. We have also asked the court to prohibit the defendants from repeating their false statements. Jammi and Atkin’s
response to the complaint is due in April 2024.
Item 4. Mine Safety Disclosures
Not Applicable.
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Part
II