Item 8.01 Other Events
As we previously disclosed in our Quarterly Report for the Quarter Ending
September 30, 2022 (the "10-Q"), on February 15, 2021, Maiden Biosciences, Inc.
("Maiden") commenced an action against DSS, Inc. ("DSS"), Decentralized Sharing
Systems, Inc. ("Decentralized"), HWH World, Inc. ("HWH"), RBC Life
International, Inc. ("RBC International") (together, the "DSS Defendants"),
Frank D. Heuszel ("Heuszel"), RBC Life Sciences, Inc ("RBC"), Steven E. Brown,
Clinton Howard, and Andrew Howard (collectively, "Defendants"). The lawsuit is
currently pending in the United States District Court Northern District of
Texas, Dallas Division, and is styled and numbered Maiden Biosciences, Inc. v.
Document Security Systems, Inc., et al., Case No. 3:21-cv-00327.
The 10-Q disclosed the procedural details in this matter. The trial in this
matter began on December 12, 2022. The jury returned a verdict in favor of
Maiden, and the Court entered a judgment on December 20, 2022 awarding Maiden
judgment from DSS, Inc., Decentralized Sharing Systems, Inc., and HWH World,
Inc., jointly and severally, in the principal sum of $4,244,659.50, together
with prejudgment interest of $514,735.00 and post-judgment interest of
$146,810.00; prejudgment interest from February 15, 2021 to December 19, 2022 on
all the foregoing sums at the rate of 7.5% per annum; post-judgment interest on
all the foregoing sums at the rate of 4.76% per annum; and Maiden's taxable
costs of court; plus attorneys' fees. The judgment also awarded Maiden exemplary
damages from Decentralized in the sum of $2,500,000, from HWH in the sum of
$2,500,000, and from DSS in the sum of $5,000,000.
The DSS Defendants intend to file post-judgment motions seeking reversal of the
judgment for several reasons, including that: (1) the evidence does not support
Maiden's claim against the Company; (2) recovery of exemplary damages under
TUFTA is unsupported; and (3) the evidence established that the DSS Defendants
are entitled to judgment in their favor on their affirmative defenses. The DSS
Defendants intend to appeal the Court's judgment, if necessary.
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