Commitments and Contingencies

9 Months Ended

May 31, 2024

Commitments and Contingencies.

Commitments and Contingencies

Note 9.    Commitments and Contingencies

From time to time, the Company may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject the Company to damages or equitable remedies, and divert management and key personnel from core business operations.

In January 2023, a class action lawsuit was filed with the Los Angeles County Superior Court against Bisco, alleging wage and hour violations and related claims. The class action covers a class of former and current employees of Bisco who were employed between January 13, 2019 and the present time. In March 2023, Plaintiff filed a First Amended Complaint that added claims under the California Private Attorneys General Act (“PAGA”). Both parties requested to stay the litigation pending mediation, which mediation commenced in April 2024. As a result of the mediation, the parties agreed in principle to settle this matter. The Company is currently negotiating a settlement agreement and expects in the aggregate settlement amount to be $7.5 million, which settlement agreement when finalized will be subject to court approval. The Company accrued $7.2 million in the current quarter in anticipation of this settlement.