I will respectfully disagree as a business CEO who hires a third party auditor annually, they are legally obligated to note any legal proceedings during that period regardless of risk factor. Just because there is minimal risk in this lawsuit doesn’t give the auditor the right not to disclose it. Something is not right with that. Perhaps the actual legal proceedings did not start until after the end of the quarter. Or perhaps they being fully represented by another company (this may possibly allow the non-disclosure, but am not sure on that). Otherwise it should be disclosed.
Actually, the quarterly statements are unaudited, so this is likely the reason for the non-disclosure. It will need to be reported in the year end audited financials.
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