Shutterfly 2014 Annual Report Download - page 47

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ITEM 3. LEGAL PROCEEDINGS.
We are subject to the various legal proceedings and claims discussed below as well as certain other
legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course
of business. Although adverse decisions (or settlements) may occur in one or more of these proceedings, it
is not possible to estimate the possible loss or losses from each of these proceedings. The final resolution
of these proceedings, individually or in the aggregate, is not expected to have a material adverse effect on
our business, financial position or results of operations. Cases that previously were disclosed may no longer
be described because of rulings in the case, settlements, changes in our business or other developments
rendering them, in our judgment, no longer material to our business, financial position or results of
operations. No material legal proceeding was terminated during the fourth quarter of 2014.
The State of Delaware v. Shutterfly, Inc.
On May 1, 2014, the State of Delaware filed a complaint against us for alleged violations of the
Delaware False Claims and Reporting Act, 6 Del C. § 1203(b)(2). The complaint asserts that we failed to
report and remit to Delaware cash equal to the balances on unused gift cards under the Delaware Escheats
Law, 12 Del. C. § 1101 et seq. We believe the suit is without merit.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable
46