LEGAL PROCEEDINGS
−Removed: As previously reported, since November 2017 the Securities & Exchange Commission (the “SEC”) had been conducting an investigation into the Company’s historical quarterly earnings per share calculations and rounding practices during the period 2014-2017.
−Removed: In the third quarter of 2020, the Company successfully reached a settlement with the SEC in this matter.
−Removed: The Company consented to the entry of an order by the SEC which states, among other things, that the Company was negligent in making certain accounting entries in 2015 and 2016.
−Removed: As part of the settlement, the Company did not admit or deny any wrongdoing.
−Removed: The Company paid a $5 million fine to resolve the matter, and was ordered to cease-and-desist from violating certain federal securities laws.
From time to time, we are a party to legal proceedings, whether arising in the ordinary course of business or otherwise.
−Removed: The disclosure under the heading “Lawsuit by Former CEO in Connection with Termination” set forth in Note 17 to the consolidated financial statements included in Item 8 of the December 29, 2019 Annual Report on Form 10-K is incorporated by reference herein.
+Added: The disclosure under the headings “Lawsuit by Former CEO in Connection with Termination” and “Putative Class Action Lawsuit” set forth in Note 18 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended January 3, 2021 is incorporated by reference herein.
+Added: In the putative class action lawsuit, the Court has appointed a lead plaintiff, which recently filed an Amended Complaint that, among other things, added the Company’s former chief financial officer as a defendant.
+Added: As in the original complaint, the allegations in the Amended Complaint relate to the subject matter of the concluded SEC investigation described in Note 18 to the consolidated financial statements included in Item 8 of the Annual Report on Form 10-K for the fiscal year ended January 3, 2021.
+Added: The Company is evaluating the Amended Complaint, but believes that it is without merit and that the Company has good defenses to it.
+Added: The Company intends to defend itself vigorously against the action.
+Added: In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year ended January 3, 2021.
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.