I don't think you have to worry about the SEC shutting this down for not disclosing the lawsuit. They won't even know about it, unless someone files a complaint. In the grand scheme of things, this is a pretty minor omission. It could however result in a shareholder lawsuit for not disclosing material information, it it results in a large settlement.
As I read the proceedings, the court has ordered PNTV to put stock up to be held until the matter is settled. No idea how much, but that is definitely something that should be disclosed to shareholders. Hard to hide behind the "we don't know what the effect will be" when there's some sort of escrow already established.
I suspect their bigger issue is getting funds to keep the operations going. The Kodiak announcement suggests there's another toxic loan out there, on top of the already disclosed toxic notes, free shares and in-the-money warrants.
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