Goldberg Financials The Following Footnote Accompanied This Company’s Financial Statements

question 74

Essay

Goldberg Financials

The following footnote accompanied this company’s financial statements:

Note 7 ? Litigation

On December 2, 2019, the Company was served with a class action complaint filed in federal court filed in Covington, Kentucky. The complaint, captioned Bradford Haynes vs. The Company, was filed by a shareholder of the Company on behalf of himself and other shareholders who purchased the Company's common stock during the period of March 31, 2018, through December 31, 2018. The plaintiff alleges that the Company violated federal securities laws by making untrue statements of material facts and omitting material facts concerning the Company's construction and start-up of its new manufacturing facility in Plano, Texas. Also named as defendants in the complaint are certain officers and directors of the Company. The Plaintiff is seeking an unspecified amount of monetary damages. While this action is in its preliminary stages, management believes that the allegations are without merit and the Company intends to defend the lawsuit vigorously.

-Refer to Goldberg Financials. What type of liability is presented in this disclosure?

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Definitions:

Correlation Coefficient

A numerical measure that represents the strength and direction of a relationship between two variables, ranging from -1 to 1.

Placebo Effect

A phenomenon in which a person's condition improves because they believe they are receiving treatment, even though the treatment has no therapeutic value.

Participant Bias

A type of bias that occurs when participants in a study act or respond differently because they know they are being observed.

Double-Blind Experiments

Double-Blind Experiments are studies where neither the participants nor the experimenters know who has been administered the treatment or the placebo, reducing biases.