RE:Contingent liabilty note change F/S AE lawsuit:No insurance?besttobe wrote: Per year end F/S note 12.
In September 2018, the Company received a statement of claim from a former employee. The Company is in the process of reviewing the claim and preparing its defence, but views the claim as unmeritorious.
Per Dec 2018 interim statment note 11.
e) Contingent liabilities
In September 2018, the Company received a statement of claim from a former employee. The Company is in the process of reviewing the claim and preparing its defence, but views the claim as unmeritorious. The Company carries adequate insurance coverage to defend against this type of claim.
Why was this note changed?
The lawyers for the insurance company have most likely provided a written opinion that the issue is not covered. I pointed that out long ago, an intentional breach of a written employment contract is not protected by insurance. The disclosure here is inadequate. The purpose of an MD&A is to clarify, not to obfuscate.