Lumber Liquidators 2010 Annual Report Download - page 61

Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements—(Continued)
(amounts in thousands, except share data and per share amounts)
The following have been excluded from the computation of Weighted Average Common Shares Outstanding—Diluted
because the effect would be anti-dilutive:
As of December 31,
2010 2009 2008
Stock Options ............................................. 287,857 10,436 435,760
Restricted Stock Awards ..................................... — — 5,800
NOTE 10. RELATED PARTY TRANSACTIONS
As described in Note 5, the Company leases a number of its store locations and Corporate Headquarters from ANO and
Related Companies.
NOTE 11. COMMITMENTS AND CONTINGENCIES
The Company is, 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, the ultimate
liability of the Company in connection with these matters is not expected to have a material adverse effect on the Company’s
results of operations, financial position or cash flows.
On September 3, 2009, a former store manager and a current assistant store manager at the time (together, the
“Plaintiffs”) filed a putative class action suit against LLI in the Superior Court of California in and for the County of
Alameda. The Plaintiffs allege that with regard to certain groups of current and former employees in LLI’s California stores,
LLI violated California law by failing to calculate and pay overtime wages properly, provide meal 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,
the Company cannot estimate the loss or range of loss, if any, to the Company 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 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, the Company cannot estimate the loss or range of loss, if any, to the Company at this time.
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