LEGAL PROCEEDINGS
−Removed: The Company is aware of two lawsuits that have been filed on behalf of purported CSI shareholders relating to the registration statement on S-4 that we filed on November 12, 2021 (“Registration Statement”) in connection with the Pineapple Merger Transaction, among other matters.
−Removed: The first complaint was filed on December 13, 2021 by Bashir Rivera in the United States District Court for the Southern District of New York and is captioned Rivera v.
−Removed: Communications Systems, Inc., et al.
−Removed: 1:21-cv-10637-NRB.
−Removed: The second complaint was filed on December 28, 2021 by Allen Chaidez in the United States District Court for the Eastern District of New York and is captioned Chaidez v.
−Removed: Communications Systems, Inc., et al.
−Removed: 1:21-cv-07155-MKB-VMS.
−Removed: The Rivera action was subsequently voluntarily dismissed on February 24, 2022.
−Removed: Both complaints name CSI and all of its current directors as defendants.
−Removed: Both complaints allege violations of Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder and claim that the Registration Statement omits material information with respect to the Pineapple Merger Transaction.
−Removed: The plaintiffs in the actions purport to seek equitable relief and damages.
−Removed: Additionally, CSI has received seven letters from individuals purporting to be shareholders of the Company (which we refer to collectively as the “Demands”) which also generally allege that the Registration Statement omits material information with respect to the Pineapple Merger Transaction.
−Removed: In addition, one of the Demands seeks certain books and records of the Company.
−Removed: The Company intends to vigorously defend the lawsuits and Demands.
−Removed: Further, we have vigorously denied, and continue to vigorously deny, that we have committed or aided and abetted in the commission of any violation of law or duties or engaged in any of the wrongful acts that were alleged in the Rivera or Chaidez complaints and the Demands.
−Removed: CSI is subject to claims and lawsuits in the ordinary course of business.
+Added: The Company is subject to claims and lawsuits that have been filed in the ordinary course of business.
From time to time, the Company brings suit against others to enforce contract rights or property rights, or to collect debts in the ordinary course of business.
3 unchanged sentences
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.