RE:RE:RE:RE:RE:RE:LawsuitGood catch. Just saw this in the financial filing as well. The highlighted part makes me feel much better about this. Companies will almost never downplay a risk unless they are confident about what they are saying. Otherwise they leave themselves open to additonal litigation down the road - i.e. if the claim goes against them and it does have a "material effect", shareholders could easily sue for misleading statements/etc. If it truly was a risk, they would just simply say "effects are uncertain" - this is assuming they have a good lawyer
In October 2019, the Company was served with a statement of claim filed in the Ontario Superior Court of Justice against the Company and two Officers. The case pertains to alleged breaches of non-competition agreements by these Officers and claims damages and an injunction against them and the Company. The Company’s lawyers are managing the claim and are vigorously defending against this action.
The Company cannot reasonably predict the likelihood or outcome of these activities. The Company does not believe that adverse decisions in any ending or threatened proceedings related to any matter, or any amount which may be required to be paid by reasons thereof, will have a material effect on the financial condition or future results of operations.