Cerebain Biotech Corp (fka CBBT) (CBBT)

[StockProfit]

This item was settled and disclosed in the 10Q dated May 11 2017

https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12059626#CBBT_10Q_HTM_ITEM 1_ LEGAL PROCEEDINGS






PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On July 21, 2016, we were sued in the United States District Court for the Eastern District of Pennsylvania ( Miriam Weber Miller v. Cerebain Biotech Corp. and Eric Clemons , Civil Action No. 16-3943) by Miriam Weber Miller. According to the Complaint, the Plaintiff alleges: (i) she was hired by us to perform public relations, investor relations, corporate growth strategies, and was to be an advisor to our Chief Executive Officer, (ii) she performed services, and (iii) that she was not fully compensated for those services. The Complaint claims causes of action for breach of contract, violation of the Pennsylvania wage payment and collection law, and unjust enrichment, and seeks damages of approximately $400,000. On April 3, 2017, without admitting fault or liability, and still denying the same, we made a business decision to resolve the lawsuit and it is now settled, effectively ending the litigation. In consideration for signing the agreement, we agreed to pay Ms. Miller no more than $120,000 in total and no less than $100,000 in total, the terms of such alternative payment options are as follows:

1) We could pay Ms. Miller the total gross amount of one hundred twenty thousand dollars ($120,000) as follows:


a) One payment of twenty thousand dollars ($20,000) within thirty (30) days after March 29, 2017; and




b) Beginning within ninety (90) days after March 29, 2017, we would make monthly payments of fifteen thousand dollars ($15,000) to Ms. Miller’s representative until such time that Ms. Miller and her representative has received the gross amount of $120,000, OR

2) We could pay Ms. Miller the total gross amount of one hundred thousand dollars ($100,000) as follows:


a) One payment of twenty thousand dollars ($20,000) within thirty (30) days after March 29, 2017.




b) One payment of eighty thousand dollars ($80,000) within sixty (60) days after March 29, 2017, OR

3) We could pay Ms. Miller the total gross amount of one hundred ten thousand dollars ($110,000) as follows:


a) One payment of twenty thousand dollars ($20,000) within thirty (30) days after March 29, 2017.




b) One payment of fifteen thousand dollars ($15,000) within sixty (60) days after March 29, 2017.




c) One payment of seventy-five thousand dollars ($75,000) within ninety (90) days after March 29, 2017.

Upon all payments being made pursuant to the terms set forth in the agreement, Ms. Miller has agreed to knowingly and voluntarily release and discharge us of and from all claims, demands, liabilities, obligations, promises, controversies, compensation, wages, bonuses, commissions, damages, rights, actions and causes of action known and unknown, at law or in equity, which Ms. Miller has or may have against us as of the date of execution of the settlement agreement.

We have recognized an accrual in Accounts Payable for payment of the agreed upon settlement, but no accrual has been made for additional legal contingencies in the consolidated financial statements as of March 31, 2017. In April 2017, we paid Ms. Miller twenty thousand dollars ($20,000) as agreed in the settlement agreement.