LEGAL PROCEEDINGS

12 Months Ended

Dec. 31, 2015

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS

NOTE 15: LEGAL PROCEEDINGS

        We are at times involved in litigation and other legal claims in the ordinary course of business. When appropriate in management's estimation, we may record reserves in our financial statements for pending litigation and other claims. Although it is not possible to predict with certainty the outcome of litigation, we do not believe that any of the current pending legal proceedings to which we are a party will have a material impact on our results of operations, financial condition or cash flows.

Villere Litigation

        On December 11, 2015, a petition was filed by Villere and George Young against Epiq and the following eight directors: Tom W. Olofson, Brad D. Scott, W. Bryan Satterlee, Edward M. Connolly, Jr., Charles C. Connely, IV, James A. Byrnes, Joel Pelofsky and Douglas M. Gaston, in the Circuit Court of Jackson County, Missouri. On January 5, 2016, the Plaintiffs amended the petition. The amended petition concerns Villere's December 7, 2015 purported nomination of six directors, which Epiq rejected, because, among other things, Villere is prohibited from nominating directors under the terms of the Director Appointment Agreement. In addition, Villere's purported nomination failed to comply with our amended and restated bylaws. Villere's amended petition includes claims for: (1) injunctive relief and (2) a declaratory judgement that its purported nomination was proper so that Villere can then submit such nominations for a vote at the annual meeting of shareholders in 2016. Epiq filed counterclaims against the Plaintiffs, and later amended such counterclaims to include certain clients of Villere on whose behalf Villere is purportedly operating. The Company's counterclaims include claims for (1) injunctive relief; (2) declaratory judgments that the Director Appointment Agreement was not validly terminated and Epiq's rejection of the purported nominations was proper; (3) breach of contract against Villere and certain of its clients in connection with the Director Appointment Agreement, and damages related thereto as a result of, among other things, Villere making numerous unauthorized public statements about Epiq; and (4) specific performance. Trial is scheduled to begin on April 4, 2016, relating to all claims and counterclaims except for Epiq's damages against Villere and certain of its clients for breach of the Director Appointment Agreement, which will be heard at a later date. Discovery is proceeding in the matter. See Item 1A "Risk Factors."