ITEM 3. LEGAL PROCEEDINGS
During the year, the Company’s former consultants and an executive officer claimed money owed to them for consulting work performed in fiscal 2010. The Company entered into a settlement agreement on February 28, 2011 to pay the consultants and the former executive officer the sum of $312,500. The Company paid $200,000 immediately in cash and issued a note payable for the remaining settlement amount of $112,500 (Note 9(b)). At December 31, 2010, the Company accrued consulting fees of $312,500 in the consolidated financial statements.
In August 2010, a former employee filed a complaint against the Company’s subsidiary alleging wrongful dismissal and seeking compensatory damages. The Company denied the validity of the contract which was signed by the former employee as employee and president of the subsidiary. The Company entered into negotiations with the former employee to trade-off some of the benefits of the alleged employment agreement in return for repayment of debts to the company incurred by the former employee while in the employment of the Company’s subsidiary. The debt in the amount of $346,386 was written off and an estimated settlement of $26,000 has been accrued in the consolidated financial statements.
During the year, the former owner of one of the Company’s subsidiaries filed a complaint against the Company’s subsidiary alleging wrongful termination of his employment contract and seeking compensatory damages. The Company has made an offer to settle this claim. An estimated settlement of $40,000 has been accrued in the consolidated financial statements.
In September 2010, an investor filed a lawsuit against the Company for failure to timely remove restrictive legends from his shares in the Company. The outcome of this claim is not determinable at the time of issue of these consolidated financial statements and the costs, if any, will be charged to income in the period(s) in which they are reasonably determinable.
In March 2011, a former employee filed a complaint against the Company and its subsidiaries alleging wrongful dismissal and seeking compensatory damages. The outcome of this claim is not determinable at the time of issue of these consolidated financial statements and the costs, if any, will be charged to income in the period(s) in which they are reasonably determinable.
JBI, INC.- FORM 10-K - Filing Date 2011-04-20[
sec.gov
And from the peanut gallery -
BRIG_88 Share Wednesday, April 20, 2011 8:12:04 PM
Re: scion post# 102489 Post # of 102492
ROFL!! so much for any lawsuits breaking the financial back of JBII....got any pacer docs for us?.....these amounts are peanuts.....hilarious....
siliconinvestor.com |
