Note 15. Commitments and Contingencies Legal Proceedings The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is managements opinion, based upon the information available at this time, that the expected outcome of these matters, individually and in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company. As a result, the liability for the cases listed below is remote. Loyalty Memberships and Magazine Subscriptions Class Action On November 14, 2018, three consumers filed a punitive class action complaint against the Company and Synapse Group, Inc. in the United States District Court for the District of Massachusetts, Boston Division (Case No.1:18-cv-12377-DPW) concerning enrollment in the Companys Backstage Pass VIP loyalty program and associated magazine subscriptions. The complaint alleged, among other things, that the Companys negative option marketing misled consumers into enrolling for membership and subscriptions without obtaining the consumers consent. The complaint sought to represent a nationwide class of all persons in the United States who were enrolled in and/or charged for Backstage Pass VIP memberships and/or magazine subscriptions, and to obtain statutory and actual damages on their behalf. On April 11, 2019, the plaintiffs voluntarily dismissed their lawsuit. On May 8, 2019, two of the plaintiffs from the dismissed lawsuit filed a similar punitive class action in Massachusetts state court (Civ. Act. No. 197CV00331, Mass. Super. Ct. Hampden Cty.), based on the same allegations, but this time seeking to represent only a class of FYE customers in Massachusetts who were charged for VIP Backstage Pass Memberships and/or magazine subscriptions. The Company believes it has meritorious defenses to the plaintiffs claims and, if the new case is not dismissed in full, the Company intends to vigorously defend the action. Store Manager Class Actions There are two pending class actions. The first, Spack v. Trans World Entertainment Corp. was originally filed in the District of New Jersey, April 2017 (the Spack Action). The Spack Action alleges that the Company misclassified Store Managers (SMs) as exempt nationwide. It also alleges that Trans World improperly calculated overtime for Senior Assistant Managers (SAMs) nationwide, and that both SMs and SAMs worked off-the-clock. It also alleges violations of New Jersey and Pennsylvania State Law with respect to calculating overtime for SAMs. The second, Roper v. Trans World Entertainment Corp., was filed in the Northern District of New York, August 2017 (the Roper Action). The Roper Action also asserts a nationwide misclassification claim on behalf of SMs. Both actions were consolidated into the Northern District of New York, with the Spack Action being the lead case. The Company has reached a settlement with the plaintiffs for both store manager class actions. The Company reserved $425,000 for the settlement as of October 31, 2020. Contingent Value Rights On March 30, 2020, the Company entered into the Contingent Value Rights Agreement (the CVR Agreement), pursuant to which the Related Party Entities received contingent value rights (CVRs) representing the contractual right to receive cash payments from the Company in an amount equal, in the aggregate, to 19.9% of the proceeds (10.35% for Alimco, 1.90% for Kick-Start, and 7.64% for RJHDC) received by the Company in respect of certain intercompany indebtedness owing to it by Kaspien and/or its equity interest in Kaspien. The Company does not anticipate these contingencies being met in fiscal 2020.