Lumber Liquidators 2010 Annual Report Download - page 27

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breaks, compensate for unused vacation time, reimburse for certain expenses and maintain required employment records. The
Plaintiffs also claim that LLI did not calculate and pay overtime wages properly for certain of LLI’s non-exempt employees,
both in and out of California, in violation of federal law. In their suit, the Plaintiffs seek compensatory damages, certain
statutory penalties, costs, attorney’s fees and injunctive relief. LLI removed the case to the United States District Court for
the Northern District of California. No class has been certified with regard to any of the alleged causes of action. LLI is
vigorously defending the claims in this suit including class certification. While there is a reasonable possibility that a
material loss may be incurred, we cannot estimate the loss or range of loss, if any, to us at this time.
On or about September 7, 2010, a former store manager filed an action against LLI in the United States District Court
for the Middle District of Florida. In the complaint, the former store manager alleges that LLI breached an alleged contract
for the payment of a commission and violated the Fair Labor Standards Act (“FLSA”) by failing to pay him for overtime
hours worked. In addition, he asserts a purported collective action on behalf of similarly situated LLI employees alleging that
LLI denied them overtime wages in violation of the FLSA. No class has been certified with regard to the purported collective
action. LLI intends to defend the claims in this suit vigorously including collective action certification. While there is a
reasonable possibility that a material loss may be incurred, we cannot estimate the loss or range of loss, if any, to us at this
time.
We also are, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of
management, while the outcome of any such claims and disputes cannot be predicted with certainty, our ultimate liability in
connection with these matters is not expected to have a material adverse effect on our results of operations, financial position
or cash flows.
Item 4. (Removed and Reserved).
21