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Commitments and Contingencies
6 Months Ended
Jun. 25, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
We are subject to various claims, possible legal actions, and other matters arising out of the normal course of business. While it is not possible to predict the outcome of these issues, management is of the opinion that adequate provision for potential losses has been made in the accompanying condensed consolidated financial statements and that the ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.
Litigation Related to the Merger
On July 25, 2019, a complaint was filed, captioned Sabatini v. Del Frisco’s Restaurant Group, Inc. et al., Case No. 1:19-cv-01385-LPS (the “Sabatini Complaint”). The Sabatini Complaint generally alleges that the Company and the members of its Board of Directors violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder by omitting material information from the Proxy Statement rendering it false and misleading and seeks, among other things, an injunction against the Merger, or in the event the Merger is consummated, rescission and rescissory damages, additional disclosure of facts in the Proxy Statement relating to the Merger, a declaration from the court that the defendants violated federal securities laws, and costs (including attorneys’ and experts’ fees).
On July 29, 2019, a complaint was filed, captioned Stein v. Del Frisco’s Restaurant Group, Inc. et al., Case No. 1:19-cv-01412-LPS (the “Stein Complaint”). The Stein Complaint generally alleges that the Company and the members of its Board of Directors violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder by omitting material information from the Proxy Statement rendering it false and misleading and seeks, among other things, an injunction against the Merger, or in the event the Merger is consummated, rescission and rescissory damages, additional disclosure of facts in the Proxy Statement relating to the Merger, a declaration from the court directing the defendants to account to plaintiff for all damages suffered as a result of their wrongdoing, and costs and disbursements (including attorneys’ and experts’ fees and expenses).
On August 2, 2019, a complaint was filed, captioned Kyle T. Karmazyn v. Del Frisco’s Restaurant Group, Inc., et al., Case No. 1:19-cv-07193 (LAP) (the “Karmazyn Complaint”). The Karmazyn Complaint alleges generally that the Company and the members of its Board of Directors violated Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder by omitting material information from the Proxy Statement and seeks, among other things, an injunction against the Merger unless and until the Company makes additional disclosure of facts in the Proxy Statement relating to the Merger, the court to direct the defendants to account to plaintiff for all alleged damages sustained as a result of their alleged wrongdoing, and costs and disbursements (including attorneys’ and experts’ fees and expenses).
Credit Commitments
At June 25, 2019 and December 25, 2018, we had outstanding letters of credit of $1.6 million, which were drawn on our 2018 Credit Facility (see Note 7, Long-Term Indebtedness). The letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions.