VERRA MOBILITY Corp 10-Q

Item 1. Legal Proceedings On November 2, 2020, PlusPass, Inc. (“ PlusPass ”) commenced an action in the United States District Court, Central District of California, against Verra Mobility Corporation (“ Verra Mobility ”), The Gores Group LLC, Platinum Equity LLC, and ATS Processing Services, Inc., alleging civil violations of federal antitrust statutes: Section 7 of the Clayton Act, and Sections 1 and 2 of the Sherman Act. On November 20, 2020, PlusPass filed a First Amended Complaint. On February 9, 2021, the defendants filed motions to dismiss, and PlusPass subsequently abandoned various theories and claims and dismissed The Gores Group LLC, Platinum Equity LLC, and ATS Processing Services, Inc. On April 27, 2021, PlusPass filed a Second Amended Complaint (“ SAC ”), alleging that Verra Mobility violated Section 7 of the Clayton Act through the merger of Highway Toll Administration, LLC (“ HTA ”) and American Traffic Solutions, Inc. (“ ATS ”) in 2018, and that Verra Mobility violated Sections 1 and 2 of the Sherman Act by using exclusive agreements in restraint of trade and other allegedly anticompetitive means to acquire and maintain monopoly power in the market for the administration of electronic toll payment collection for rental cars. PlusPass seeks injunctive relief, divestiture by Verra Mobility of HTA, damages in an amount to be determined, and attorneys’ fees and costs. On May 28, 2021, Verra Mobility filed a motion to dismiss the SAC in its entirety. On July 29, 2021, the court issued a tentative ruling denying the motion to dismiss. The parties appeared before the court and presented oral argument on July 30, 2021 and are awaiting the court’s final ruling on the motion to dismiss. Verra Mobility believes that all of PlusPass’s claims are without merit and it intends to defend itself vigorously in this litigation should the case continue beyond the motion to dismiss stage.