"May 25, 2017, The Brewer Group, Inc. filed a complaint against the Company in the Circuit Court of the 17th Judicial Circuit in Broward County Florida alleging breach of contract and fraud relating to four promissory notes previously issued by the Company. The complaint seeks a monetary judgment from the Company of approximately $450,000. The Company is currently engaged in settlement discussions in an attempt to resolve this complaint without protracted litigation.
On May 30, 2017, The Office of the District Attorney of the 32nd Judicial District of the State of Texas filed a complaint against several parties, including the Company, in the 32nd Judicial District Court of Nolan County, Texas alleging breach of contract, common law fraud and deceptive trade practices. The complaint alleges damages of approximately $240,000. An agreement between the parties has been reached abating this litigation until August 18, 2017, pending ongoing efforts to resolve the complaint.
On June 1, 2017, the Company was notified by the United States Department of Labor (“ DOL ”) of an investigation into the (i) delayed and missed payrolls described in Item 2.03 of this Current Report on Form 8-K; (ii) classification of Company employees as exempt and/or non-exempt; and (iii) time required of Company employees during a regular work week. The DOL investigation is ongoing and the Company intends to cooperate with DOL to the fullest extent possible.
On June 5, 2017, the Company was notified by the Financial Industry Regulatory Authority (“ FINRA ”) of the continuation of an investigation and review into trading activity in the Common Stock on January 6, 2017. The FINRA investigation is ongoing and the Company intends to cooperate with FINRA to the fullest extent possible.
The Company has been notified by the Staff of the Division of Enforcement of the Securities and Exchange Commission (the “ Staff ”) that it is undertaking a review of certain issues relating to the Company. The Company intends to cooperate fully with the Staff." Per 8-K worst ever.
