Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2019
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||COMMITMENTS AND CONTINGENCIES
In the ordinary course of its business, the Company is involved in various legal proceedings involving a variety of matters. The Company does not believe there are any pending legal proceedings that will have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties.
On August 2, 2019, in an action entitled Tyrell v. Greenlane Holdings, Inc. et al., a purported stockholder of the Company filed a purported class action lawsuit in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, against the Company, officers and directors of the Company, and the underwriters related to the Company’s initial public offering. The complaint alleges, among other things, that the Company’s registration statement related to its initial public offering contained untrue statements of material fact and, or omitted to state material facts necessary to make the statements in the registration statement not misleading, in violation of Sections 11, 12 and 15 of the Securities Act of 1933, as amended. Since August 2, four additional purported class action lawsuits have been filed making substantially similar allegations; two of these additional lawsuits were filed in the same court as the Tyrell action and two were filed in the United States District Court for the Southern District of Florida. The lawsuits in federal court are entitled Hammond v. Greenlane Holdings, Inc. et al. and Mayer v. Greenlane Holdings Inc. et al. At this time, a class has not been certified in either state or federal court in any of the actions referenced above and the Company cannot estimate the amount of damages (if any) being sought by the plaintiffs. The Company can provide no assurances as to the outcome of these lawsuits or as to the costs associated with them. However, the Company believes the claims are without merit and intends to vigorously defend itself.
See “Note 6—Leases” for details of the Company’s future minimum lease payments under finance lease liabilities and operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of September 30, 2019.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef