Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 70

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 L. Ellis, Malcolm R. Fobes, III, and Peter M. Robinson in the U.S.
District Court for the Southern District of New York at Civil Action No. 1:20-cv-06974 (the “Cantrell Action”) and Civil
Action No. 1:20-cv-06981 (the “AML Action”), respectively.

The
complaints in the Cantrell and AML Actions are nearly identical. They each allege violations of Sections 10(b), 20(a) and 21D of the
Securities Exchange Act, Rule 10b-5 thereunder, and common law claims of breach of fiduciary duties, unjust enrichment, abuse of control,
gross mismanagement, and waste of corporate assets. These allegations stem from USO’s disclosures and defendants’ alleged
actions in light of the extraordinary market conditions in 2020 that caused demand for oil to fall precipitously, including the COVID-19
global pandemic and the Saudi Arabia-Russia oil price war. The complaints seek, on behalf of USO, compensatory damages, restitution,
equitable relief, attorney’s fees, and costs. The plaintiffs in the Cantrell and AML Actions have marked their actions as related
to the Lucas Class Action.

The
Court consolidated the Cantrell and AML Actions under the caption In re United States Oil Fund, LP Derivative Litigation, Civil
Action No. 1:20-cv-06974 and appointed co-lead counsel. All proceedings in In re United States Oil Fund, LP Derivative Litigation
are stayed pending disposition of the motion(s) to dismiss in In re: United States Oil Fund, LP Securities Litigation.

USCF
LLC, USO, and the other defendants intend to vigorously contest the claims in In re United States Oil Fund, LP Derivative Litigation.

    18

No
accrual or reserve has been made with respect to the above legal matters as of the period ended December 31, 2024, or the year ended
June 30, 2024. We are currently unable to predict the timing or outcome of, or reasonably estimate the possible losses or range of
possible losses resulting from these matters. Although we are vigorously contesting the litigation claims discussed above, in the
near term it is reasonably possible that we may be required to establish a reserve or an accrual in the future depending upon
the outcome of any of the foregoing litigation matters. An adverse