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Litigation
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
LITIGATION

NOTE 11 – LITIGATION

 

The Company is involved in various lawsuits related to the operations of its subsidiaries which arise in the normal course of business. Management believes that it has adequate insurance coverage and/or has appropriately accrued for the settlement of these claims. If applicable, claims that exceed amounts accrued and/or that are covered by insurance, management believes they are without merit and intends to vigorously defend and resolve and does not expect any material impact on financial condition.

 

On June 15, 2018, the plaintiff in a lawsuit styled Rampey Enterprises, Inc. v. LGMG, LLC, District Court of Tulsa County, Oklahoma, Case No. CJ-2017-1908, filed a motion to have the Company substituted as the defendant on the grounds the Company had “merged” with LGMG, LLC, and therefore should be held liable for all of such plaintiff’s claims against LGMG, LLC. No such merger has ever occurred. The Company is the sole shareholder of MSTI, which in turn is the sole member of WelNess, which in turn is the majority member of LGMG. LGMG has filed, and the Company is in the process of filing, an objection to said motion. The Company intends to vigorously defend this action. Management is unable to characterize or evaluate the probability of any outcome at this time.