Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 121

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 121
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 or our institutions. If the results of any such audits, reviews, inquiries, investigations, claims, or
actions are unfavorable to us, we may be required to pay monetary damages or be subject to fines, operational limitations, loss of federal
funding, injunctions, undertakings, additional oversight and reporting, or other civil or criminal penalties.

Even
if we maintain compliance with applicable governmental and accrediting body regulations, regulatory scrutiny or adverse publicity arising
from allegations of non-compliance may increase our costs of regulatory compliance and adversely affect our financial results, growth
rates and prospects. For example, Congressional hearings and investigations by state attorneys general, CFPB, FTC, or other federal,
state, or accrediting agencies affecting for-profit institutions may spur plaintiffs’ law firms or others to initiate additional
litigation against us and other for-profit education providers.

We
are subject to a variety of other claims and litigation that arise from time to time alleging non-compliance with or violations of state
or federal regulatory matters including, but not limited to, claims involving students, graduates and employees. In the event the extensive
changes in the overall federal and state regulatory construct results in additional statutory or regulatory bases for these types of
matters, or other events result in more of such claims or unfavorable outcomes to such claims, there exists the possibility of a material
adverse impact on our business, reputation, financial position, cash flows and results of operations for the periods in which the effects
of any such matter or matters becomes probable and reasonably estimable. In addition, federal and other regulatory limitations on the
use of pre-dispute resolution clauses and class action waivers in student enrollments agreements may result in increased litigation costs.

We
cannot predict the ultimate outcome of these and future matters and may incur significant defense costs and other expenses in connection
with them. We may be required to pay substantial damages or settlement costs in excess of our insurance coverage related to these matters.
Government investigations and any related legal and administrative proceedings may result in the institution of administrative, civil
injunctive or criminal proceedings against us and/or our current or former directors, officers or employees, or the imposition of significant
fines, penalties or suspensions, or other remedies and sanctions. Any such costs and expenses could have a material adverse effect on
our financial condition and results of operations and the market price of our common stock.

72

Our
future financial condition and results of operations could be materially adversely affected if we are required to write down the carrying