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Litigation, Commitments and Contingencies
9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Litigation, Commitments and Contingencies

Note 13 — Litigation, Commitments and Contingencies

 

Plaintiff Cypress Holdings, III L.P. (“Cypress”) filed an action against the Company in New York Supreme Court, which was removed to the United States District Court, Southern District of New York, on February 14, 2022, captioned Cypress Holdings, III L.P. v. Sport-BLX, Inc. et al., 1:22-cv-01243-LGS (S.D.N.Y.). In its Second Amended Complaint, Cypress purports to assert claims against SportBLX, Mr. Hall, and Mr. De Perio for securities fraud and related issues and seeks compensatory damages, punitive damages and attorneys’ fees, in connection with solicitations of investments in SportBLX. Cypress also purports to allege that the Company is liable for unjust enrichment, tortious interference with contract, aiding and abetting a breach of fiduciary duty and minority shareholder oppression. Cypress also purports to assert claims against Messrs. Strauss and Ruchalski for breach of fiduciary duty and corporate waste, as well as additional claims against Clinton Group Inc., Cesar Baez, Christopher Johnson, and Sport-BLX Securities, Inc. arising from solicitations of investments in SportBLX.

 

The Company along with Messrs. Strauss and Ruchalski, intend to defend themselves vigorously. As of December 31, 2021, GlassBridge Enterprises, Inc. sold all of its interest in SportBLX and SportBLX ceased to be a subsidiary.

 

As of September 30, 2023, the Company believes that an outcome resulting in a loss is remote and does not have any accruals related to the matter.

 

Jimmie D. Dean and Evelyn Dean filed an action against the Company and dozens of other defendants in the 12th Judicial Circuit Court, St. Clair County Illinois (23 LA 0395) asserting claims related to asbestos. Plaintiff alleged that the Company negligently constructed and/or maintained its premises and that Plaintiff was wrongfully exposed to asbestos-containing products while on its premises. Plaintiff further alleged that such activity was a direct and proximate cause of his development and contraction of an asbestos-related disease, including Lung Cancer. Damages alleged are in excess of $50,000.

 

 

The claim was being made against the Company due to its acquisition of certain assets of Memorex International Inc. in 2006. Such acquisition specifically excluded any undisclosed and contingent liabilities including any litigation that was commenced after closing, and on September 11, 2023, the Company was dismissed as a defendant to the action.

 

Indemnification Obligations

 

In the normal course of business, we periodically enter into agreements that incorporate general indemnification language. Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a supportable third-party claim. There has historically been no material losses related to such indemnifications. As of September 30, 2023 and December 31, 2022, estimated liability amounts associated with such indemnifications were not material.