Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS
Vivakor, Inc. v. Al-Dali International General
Trading and Contracting Company, et al ., Case No. JDFC603 251052410 (Kuwait Court of First Instance, Mar. 25, 2025)—Plaintiff
has asserted claims for breach of contract, unjust enrichment, and injunctive relief against Defendants Al-Dali Global Trading and Contracting
Company, Al-Sayer Construction General Trading and Contracting Company, and Kuwait Oil Company relating to the placement and operation
of oilfield remediation processing equipment in Kuwait. Plaintiff seeks total damages in excess of $15,000,000.00.
AE Systems, LLC v. VivaVentures Remediation Corporation , ( In re AE Systems, LLC) Ch. 7 Case No. 25-30186, Adv. No. 460285 (Bankr. S.D. Tex., filed Aug. 8, 2025)—Debtor claims breach of contract and damages of $156,356.00 for goods provided and services performed at Defendant’s site in Harris County, Texas. Defendant has contested the amount due on grounds that Debtor materially breached with their contract. Defendant has contested Debtor’s claims. No amount has been reserved in connection with the dispute.
Blondo Constructors, Inc. v. VivaVentures Remediation Corporation, et al. , American Arbitration Association (Case No. 01-24-0005-5102—May 17, 2024)—Claimant demanded arbitration for claims relating to breach of contract by Respondent VivaVentures Remediation Corporation (“ VRC ”) and damages in excess of $545,695.05, plus attorneys fees and costs. Respondents other than VRC were dismissed on July 26, 2024. On November 8, 2024, the parties executed a Confidential Settlement Agreement to resolve the dispute. On December 20, 2024, Claimant filed a First Amended Demand for Arbitration asserting new claims, including for breach of the settlement agreement for failure to remit the agreed settlement payment. On January 26, 2025, Respondent remitted the settlement payment and Claimant confirmed receipt. Claimant’s new claims are still pending before the arbitrator, and the arbitrator has yet to issue an award or dismiss the proceeding. Respondent has not reserved additional sums for this proceeding.
Echo Contracting, LLC v. CPE Gathering Midcon, LLC, et al ., Case No. CJ-2025-73 (Dist. Ct., Blaine Cty., Okla.—Feb. 14, 2025)—Plaintiff Echo Contracting asserted claims of breach of contract, quantum meriut, and foreclosure of mechanics and materialmen’s lien filed in Blaine County against properties of Defendants. Defendants CPE Gathering Midcon, LLC and Vivakor, Inc. settled such claims pursuant to confidential agreement on March 28, 2025, and such claims are pending dismissal and such liens are pending release. Co-Defendant Validus Energy II Midcon, LLC prevailed upon a motion to consolidate Case No. CJ-2025-7 with another the proceeding. Defendant and Cross-Plaintiff Validus Energy II Midcon, LLC has levied claims for breach of contract, declaratory judgment, indemnification, contribution, and unjust enrichment against Defendants CPE Gathering Midcon, LLC and Vivakor, Inc. and seeks damages of more than $500,000.00, plus attorneys fees and costs of court. Defendants CPE Gathering Midcon, LLC, Vivakor, Inc., and Validus Energy II Midcon, LLC prevailed on motions against Plaintiff to remove liens against property of Validus Energy II Midcon, LLC and compel arbitration against Defendants CPE Gathering Midcon, LLC and Vivakor, Inc. Claims of Plaintiff against Defendants CPE Gathering Midcon, LLC and Vivakor, Inc. are stayed pending arbitration, while claims of Defendant and Cross-Plaintiff Validus Energy II Midcon, LLC are proceeding.
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Espri L’Heureux v. Vivakor, Inc., et al. Case No. 30-2022-01284070-CU-WT-CJC (Sup. Ct. Orange Cty., Cal.—Sept. 29, 2022)—Plaintiff asserted claims for misclassification as an exempt employee, failure to provide meal and rest periods, pregnancy/sex discrimination under the Fair Employment and Housing Act, discrimination under the California Fair Employment and Housing Act (“ CFRA ”), retaliation under the CFRA, wrongful termination, an unfair business practices under the California Business and Professions Code §§ 17200 et seq ., among other derivative claims. Plaintiff seeks more than $1,000,000.00 in damages. Defendants dispute liability on the grounds Plaintiff was properly classified as an independent contractor, was not discriminated against, and was not terminated at all, much less for a discriminatory or retaliatory reason. Defendants filed their answer on November 21, 2022, and removed the action to federal district court on July 22, 2023. The parties have reached a settlement and are in the process of drafting the necessary paperwork, which, if successful, will dismiss this lawsuit with prejudice.
Great Lakes Petroleum Co. v. Vivakor, Inc., as successor in interest of Equipment Transport, LLC, et al. , Case No. 25-CVS-011392-590 (Sup. Ct., Mecklenburg Cty. N. Car.—Mar. 5, 2025)—Plaintiff alleged breach of contract, quantum meruit, and unjust enrichment for fuel sold and tank services provided. A default judgment for $183,808.77, plus post-judgment interest at a rate of eight percent (8%) per annum, was entered on May 23, 2025. Vivakor is in the process of attempting to settle this matter outside of the litigation.
James Samuelson v. Vivakor, Inc., James Ballengee, et al. , Case No. 30-2025-01496877-CU-OE-CJC (Sup. Ct. Orange Cty., Cal.—July 14, 2025)—Plaintiff asserts claims for failure to pay wages, employment misclassification, breach of contract, promissory estoppel, unjust enrichment, constructive discharge, and tortious interference with contract seeking damages of $1,277,499.95 plus pre- and post-judgment interest, attorneys fees, and costs of court. As disclosed in the Company’s Current Report on Form 8-K filed with the Commission on October 23, 2025, the a parties to this litigation settled this lawsuit under the terms of a Settlement Agreement dated October 17, 2025 and all dates and deadlines related to this lawsuit have been taken off calendar by the Court, which will retain jurisdiction of this lawsuit through the final payment of the Settlement Agreement consideration.
Julie Ridenhour Tonroy, as Personal Representative
of the Estate of John Ridenhour, Deceased, v. Endeavor Crude, LLC, et al. , Case No. CJ-2024-40 (Dist. Ct., Blaine Cty., Okla.—March 21,
2024)—Plaintiff asserts claims of negligence, respondeat superior , and wrongful death of decedent related to a motor vehicle
accident involving a driver for Endeavor Crude, LLC while operating motor vehicle equipment owned or leased by Meridian Equipment Leasing,
LLC. Endeavor Crude is a subsidiary of Vivakor, Inc. and Meridian Equipment Leasing, LLC is a former subsidiary of Vivakor, Inc. The
Plaintiff sought damages in excess of $75,000. This lawsuit was settled through mediation. A settlement agreement has been entered and
a Motion to Approve Settlement will be filed with the Court.
Kellie Yates v. Endeavor Crude, LLC et al. , No. 656,058 (1st Jud. Dist. Ct., Caddo Parish, La.—Mar. 14, 2025)—Plaintiff asserts claims of negligence, lost wages, quantum meruit, and unjust enrichment relating to a May 28, 2024 motor vehicle accident, and seeks damages of $50,000 to $1,000,000.
Kush Properties, LLC d/b/a Motel 6 – Floresville d/b/a Eagle Ford Inn, et al., v. Endeavor Crude, LLC, et al Case No. CVW2505285 (81st Dist . Ct. Wilson Cty., Tex.—May 8, 2025) —Plaintiff alleges breach of contract, unjust enrichment, suit on sworn account, fraud, fraudulent inducement, and negligent misrepresentation relating to lodging charges for truck drivers, seeking $256,070.00, plus attorneys fees, costs of court, and pre- and post-judgment interest. Defendants’ are vigorously contesting the claims.
Mikasa McKnight v. Endeavor Crude, LLC, et al. , Case No. 202422195 (190th Dist. Ct., Harris Cty., Tex.—Jul. 2, 2024)—Plaintiff alleges negligence, negligent hiring, negligent entrustment, and respondeat superior relating to a motor vehicle accident involving a tractor-trailer operated under the motor carrier authority of Defendant EC, and seeks damages in excess of $1,000,000. Defendant EC has vigorously contested the case.
Misty Kitson, Blaine County Assessor v. Meridian
Equipment Leasing, LLC , Case No. EQ-2023-57 (Ct. of Tax Review, Okla.—Aug. 2, 2023)—Plaintiff governmental taxing authority
seeks appeal of Defendant’s fair cash value valuation of certain personal property in Blaine County, Oklahoma. Plaintiff seeks
a property tax valuation of $27,463,542.00 in contrast to Defendant’s valuation of $4,000,000.00, and overdue taxes in excess of
$1,126,005.22, plus statutory interest, penalties, and fees. The case is in discovery and on-going.
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MV Purchasing, LLC et al., v. Endeavor Crude, LLC, et al., v. Unique Funding Solutions, LLC, et al. , No. 3:25-cv-01112-K (U.S. Dist. Ct.—N. Tex.)—Plaintiffs Endeavor Crude, LLC, et al ., assert claims for fraud, fraudulent misrepresentation, unjust enrichment, and declaratory relief for more than $1.5 million relating to an accounts receivable factoring contract. Cross-plaintiffs MV Purchasing, LLC and Echo Canyon Energy Products Supply, LLC assert claims for declaratory relief. Cross-plaintiffs and Defendants Unique Funding Solutions, LLC, Rocket Capital NY LLC, and Regain Group LLC assert claims of breach of contract against Defendants Endeavor Crude, LLC, et al ., seek declaratory relief against Cross-plaintiffs MV Purchasing, LLC and Echo Canyon Energy Products Supply, LLC, and collectively seek damages in excess of $3,000,000. Defendants Endeavor Crude, LLC, et al ., are vigorously defending the case.
Novella Strmiska v. Endeavor Crude, LLC, et
al ., Case No. 25-01-00013-CVK (81st Dist. Ct., Karnes Cty., Tex.—Jan. 27, 2025)—Plaintiff obtained a default judgment
for breach of contract, trespass to land, trespass to chattels, negligence, and unjust enrichment, for $256,717.00 USD, plus post-judgment
interest, attorneys fees, and costs of court. Endeavor Crude, LLC is currently exploring its options related to the entry of default
judgment.
Rocket Capital NY LLC v. Silver Fuels Processing, LLC, et al. , Case No. E2025013794 (Sup. Ct. of N.Y., Monroe County, N.Y.—Jun. 23, 2025)—Plaintiff has obtained a default judgment for $1,514,619.08 for breach of contract jointly and severally against affiliates Meridian Equipment Leasing, LLC, Silver Fuels Processing, LLC, Silver Fuels Delhi, LLC, White Claw Colorado City, LLC, Vivakor, Inc., Equipment Transport, LLC, and James Ballengee, among others. Vivakor is in the process of attempting to settle this matter outside of the litigation.
Texas Premier Resources, LLC et al., v. Vivakor, Inc., et al ., Cause No. 2025-39438 (190th Dist. Ct., Harris Cty., Tex.—Jun. 16, 2025)—Plaintiffs have asserted claims for breach of contract, fraud, fraudulent misrepresentation, and alter ego, and seek damages in excess of $5,000,000.00, plus attorneys fees and costs of court, and injunctive relief to compel the purchase of Plaintiff’s business and property. Defendants are vigorously contesting the case.
Vincent Smith, et al., v. Meridian Transport,
LLC, et al ., Cause No. 25-CV-0664 (122d Dist. Ct., Galveston Cty., Tex.—Apr. 23, 2025)—Plaintiffs alleges gross negligence
relating to a motor vehicle accident, and seek damages of up to $1,000,000, plus attorneys fees and costs of court. Defendants are vigorously
contesting this case.
Viva Wealth Fund I, LLC v. Vivakor, Inc., et
al ., Case No. 30-2025-01469418-CU-FR-WJC (Sup. Ct., Orange Cty., Cal.—Mar. 21, 2025)—Plaintiff alleges fraud, conversion,
unfair competition, tortious interference in contractual relations, interference with prospective economic advantage, money had and received,
breach of contract, constructive fraudulent transfer, among other counts, and seeks declaratory relief and damages in excess of $50 million
relating to equipment purchased by Plaintiff and leased to Defendant VivaVentures Remediation Corporation. Defendants are vigorously contesting
this case.
Tyler Nelson v. Vivakor, Inc., et al ., Case No. 30-2025-01503021-CU-OE-CJC (Sup. Ct. Orange Cty., Cal.—Aug. 11, 2025)—Plaintiff, former Chief Financial Officer of the Company, its subsidiary, and certain unnamed defendants for claims of breach of contract, breach of implied covenant in contract, and claims related to failure to pay wages, alleging total damages of $2,154,158.47, plus interest, attorneys fees, and costs of court. As disclosed in the Company’s Current Report on Form 8-K filed with the Commission on November 12, 2025, the a parties to this litigation settled this lawsuit under the terms of a Settlement Agreement dated November 5, 2025 and all dates and deadlines related to this lawsuit have been taken off calendar by the Court, which will retain jurisdiction of this lawsuit through the final payment of the Settlement Agreement consideration.
SRAX, Inc. v. Vivakor, Inc. , Case No.
A-25-921524-F (8th Jud. Dist. Ct., Clark Cty., Nev.—Aug. 18, 2025)—Plaintiff filed an emergency ex parte application for
an order immediately requiring transfer of 536,666 shares of Defendant’s common stock. Defendant is in settlement negotiations
at this time in an attempt to settle this matter.
From time to time, we may become involved in various legal actions that arise in the normal course of business. We intend to defend vigorously against any future claims and litigation. We are not currently involved in any material disputes and do not have any material litigation matters pending.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.