Company: IPSI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110820
Chunk: 357

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 357
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 become inadequate because of changes in conditions, or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements
due to error or fraud may occur and may not be detected. However, these inherent limitations are known features of the financial reporting
process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

38

Part II. Other Information

Item 1. Legal Proceedings.

From time to time, we may
become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Below is a description of outstanding
pending litigation matters. As also noted previously, litigation is subject to inherent uncertainties and an adverse result in the below
described or other matters may arise from time to time that may harm our business. Other than as set forth below, we are not presently
a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect
on our business, operating results, financial condition or cash flows.

Voloshin, et al., v. Innovative Payment Solutions, Inc., et al.

On October 20, 2021, a complaint
was filed against our Company and certain of its officers and directors with the Occupational Safety and Health Administration of the
United States Department of Labor (“OSHA”), captioned Naum Voloshin, Yulia Rey, Alexander Voloshin, Andrey Novikov, and Frank
Perez v. Innovative Payment Solutions, Inc., William Corbett, Richard Rosenblum, Madisson Corbett, Jim Fuller, Cliff Henry and David Rios.
The complaint generally alleged that complainants, four former employees (or independent consultants) of our Company and one employee
who was on suspension, did not receive compensation to which they claim they were entitled and that they were wrongfully terminated for
engaging in protected activities in violation of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1514A. The complaint sought reinstatement
of complainants’ employment, monetary damages including back pay, raises, bonuses, benefits, overtime, emotional distress and loss
of reputation, orders of abatement and injunctive relief, and costs of litigation.

In early 2022, OSHA dismissed
the claims of Ms. Rey and Mr. Perez, and they appealed that decision. Prior counsel moved to dismiss the remaining claims and