Commitments And Contingencies

3 Months Ended

Aug. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

12.   COMMITMENTS AND CONTINGENCIES

We are involved in various legal actions that arise in the normal course of business.Although ultimate liability cannot be determined at the present time, based on available information, we do not believe the resolution of these matters will have a material adverse effect on our results of operations and financial condition.However, it is possible that future litigation could arise, or that developments could occur in existing litigation, that could have a material adverse effect on our results of operations and financial condition.

We are engaged in litigation concerning advertising statements relating to our Move Free Advanced products.In a case filed in May 2011 and pending in the United States District Court for the Southern District of California (“Lerma”), the plaintiff has brought two California statutory claims (under the Consumer Legal Remedies Act and the Unfair Competition Law) and a common law breach of express warranty claim, each of which alleges false or misleading advertising by us.The plaintiff seeks to certify a class, which would consist of all California residents who purchased Move Free Advanced within the class period.The plaintiff seeks actual damages, punitive damages and injunctive relief on behalf of this purported class.In another case filed in December 2011 in the United States District Court for the Northern District of Illinois, Eastern Division (“Pearson”), the plaintiff alleged violations of the Illinois Consumer Fraud Act and similar consumer fraud statutes of certain other states relating to our advertising for Move Free Advanced, as well as personal injury and negligence claims.In Pearson, the plaintiff sought to certify a class consisting of purchasers of Move Free Advanced within the applicable statute of limitations period or, alternatively, all Illinois residents who purchased these products within the applicable limitations period.The plaintiff also sought actual damages, medical monitoring and attorneys' fees.In February 2012, Pearson was voluntarily dismissed.In March 2012, the plaintiff in Lerma was granted leave of court to add the Pearson named plaintiff and his allegations and claims to the Lerma case.All of the plaintiffs' claims on behalf of respective proposed classes are now pending in Lerma.  We dispute the plaintiffs' allegations and intend to vigorously defend ourselves in the litigation.At this time, however, we are unable to determine the amount of loss, if any, from these matters.

We establish liabilities when a particular contingency is probable and estimable.As of August 31, 2012, it is reasonably possible that exposure to loss exists in excess of amounts accrued.However, such amount, if any, cannot be currently estimated.