LEGAL PROCEEDINGS
+Added: On March 17, 2021, the Company received a complaint from the National Labor Relations Board (the “NLRB”) based on charged alleged by the International Brotherhood of Teamsters against four of the Company’s operating subsidiaries.
+Added: The charges stem from the Company’s decision to close underperforming operations in California in December 2019.
+Added: The Teamsters allege, among other things, that the Company’s subsidiaries engaged in unfair labor practices and failure to negotiate in good faith and is seeking reinstatement of terminated individuals with back pay.
+Added: The gross amount of the claim for back pay is approximately $5.9 million.
+Added: The amount of the back pay does not, however, take into consideration any of the offsetting earnings made by terminated individuals since their separation from the Company.
+Added: In April 2021, the Company answered the complaint by denying it engaged in any unfair labor practices and maintaining that the Company closed the underperforming California terminal due to financial reasons.
+Added: In June 2021, the Company participated in the first phase of hearings with the NLRB.
+Added: The hearing will be continued in late July and is expected to be completed shortly thereafter.
+Added: The Company currently estimates the possible range of financial exposure in the matter to be between $0.8 million and $5.9 million.
+Added: Based on the Company’s best estimate of the liability at this time, the Company has recorded an accrued liability for this matter of $1.9 million.
+Added: While the outcome of these claims cannot be predicted with any certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations or cash flows.
The Company is involved in certain other claims and pending litigation arising from the ordinary conduct of business.
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