Note 8—Commitments and Contingencies

In April 2015, the Company entered into a lease agreement for office space which the Company extended in January 2019 through July 31, 2020. The lease commenced on June 1, 2015 and had an initial monthly payment of $10,032, which increased to $10,200 in June 2016 and $10,366 in June 2017, with annual increases thereafter. As of September 30, 2019, future minimum lease payments are as follows:


($ in thousands)	Future rental
Year Ending December 31,	payments
2019 (remaining three months)	$	32
2020		75
2021		—
2022		—
2023		—
Thereafter		—
	$	107

Litigation

The Company may become party to legal proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to the Company’s consolidated financial position or liquidity. Other than as described below, the Company does not believe that there is any other pending litigation that could have a significant adverse impact on its consolidated financial position, liquidity or results of operations.

On July 11, 2018, a purported shareholder class action lawsuit, captioned Kachmar v. Farmland Partners, Inc. (the Kachmar Action”), was filed in the United States District Court for the District of Colorado against the Company and certain of our officers by a purported Company stockholder. The complaint alleges, among other things, that our disclosures related to the FPI Loan Program were materially false and misleading in violation of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. On August 17, 2018, a second purported class action, then-captioned Mariconda v. Farmland Partners Inc. (the “Turner Action”) was filed in the United States District Court for the District of Colorado, alleging substantially identical claims as the Kachmar Action. On November 20, 2018, the court appointed The Turner Insurance Agency, Inc., and Cecilia Turner as lead plaintiffs in the Turner Action and re-captioned the case as The Turner Insurance Agency, Inc. v. Farmland Partners, Inc. On March 11, 2019, the court-appointed lead plaintiffs and additional plaintiff Obelisk Capital Management filed an amended complaint in the Turner Action. On April 15, 2019, the defendants moved to dismiss the amended complaint in the Turner Action. On June 18, 2019, the court denied the defendants’ motion to dismiss the amended complaint in the Turner Action. The defendants answered the amended complaint on July 2, 2019. The Turner Action is now in the discovery phase of litigation. At this time, no class has been certified in the Turner Action and we do not know the amount of damages or other remedies being sought by the plaintiffs. The Company can provide no assurances as to the outcome of this litigation or provide an estimate of related expenses at this time. The Company believes that a substantial portion of the costs associated with the stockholder class action litigation will be covered by insurance.

On May 14, 2019, a purported shareholder filed a complaint derivatively on behalf of the Company and against certain of our officers in the United States District Court for the District of Colorado (the “Winter Action”). The Winter Action complaint makes similar claims to the Turner Action. The Winter Action has been stayed pending further proceedings in the Turner Action.

On October 1, 2019, another purported shareholder filed a complaint derivatively on behalf of the Company and against certain of our officers in the United States District Court for the District of Colorado (the “Luger Action”). The Luger Action complaint makes similar claims to those in the Turner and Winter Actions. None of the defendants have yet been served in the Luger Action.

The Company believes that a substantial portion of the costs associated with the Turner Action, the Winter Action, and the Luger Action in excess of $0.35 million will be covered by insurance. However, because the Company is still in negotiations with its insurance carrier regarding the coverage of defense costs incurred to date, the Company has not recognized any receivable for insurance recoveries that the Company believes it will be entitled to upon completion of the claim review process.

On July 24, 2018, we filed a lawsuit in the District Court, Denver County, Colorado, against “Rota Fortunae” (a pseudonym) and numerous co-conspirators (collectively, “Wheel of Fortune”) in response to an article posted on Seeking Alpha that makes numerous allegations about the Company that we believe to be false or materially misleading. We believe that as a consequence of Wheel of Fortune’s internet posting and related postings on social media, the trading price of our common stock declined by approximately 40%. We believe that Wheel of Fortune’s internet posting was made in connection with a “short and distort” scheme to profit from a decline in our stock price based on false and misleading information. The lawsuit that we filed alleges that Wheel of Fortune disseminated material false, misleading and defamatory information about us that has harmed us and our stockholders. We do not expect insurance proceeds to cover a substantial portion of the costs related to the lawsuit we filed against Wheel of Fortune and are currently in negotiations with our insurance carrier with respect to coverage. Accordingly, we cannot estimate the costs that may be reimbursed by our insurance carrier at this time.