Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation

In the ordinary course of our business, we are subject to claims and administrative proceedings, none of which we believe are material or would be expected to have, individually or in the aggregate, a material adverse effect on our business, financial condition, cash flows or results of operations.

In accordance with ASC 450, we recorded $38.9 million of settlement expense within general and administrative expense within our Consolidated Statement of (Loss) Income during the first quarter of 2022, related to the settlement of that certain shareholder class action previously filed in the U.S. District Court for the Eastern District of Arkansas under the caption In re Uniti Group Inc. Securities Litigation (the “Class Action”). On June 17, 2022, the parties signed a stipulation of settlement related to the Class Action and plaintiffs moved for preliminary approval of the settlement. On November 7, 2022, the court granted final approval of the settlement. As the amount was not paid until the first quarter of 2024, it is recorded within accounts payable, accrued expenses and other liabilities, net within our Consolidated Balance Sheets as of December 31, 2023. Additionally, we recorded the probable insurance recovery of $38.9 million as a reduction to general and administrative expense during the first quarter of 2022 within our Consolidated Statement of (Loss) Income. As the recovery was not received until the first quarter of 2024, it is recorded within other assets on the Consolidated Balance Sheets as of December 31, 2023.

On August 17, 2021, shareholders filed a derivative action on behalf of the Company in the Circuit Court for Baltimore City, Maryland, under the caption Mayer et al. v. Gunderman et al. (the “Mayer Derivative Action”). On February 11, 2022, a shareholder filed a derivative action on behalf of the Company in the federal District Court for the District of Maryland, under the caption Guzzo et al. v. Gunderman et al. (the “Guzzo Derivative Action” and together, with the Mayer Derivative Action, the "Derivative Actions"). Various members of the Company's board of directors and management team were named as defendants in the Derivative Actions. The allegations in the Derivative Actions are similar to those in the Class Action, and both sought unspecified damages, equity relief and related costs and fees. On March 3, 2023, the parties to the Derivative Actions signed a stipulation of settlement agreeing to settle the actions in exchange for non-monetary damages, and also agreeing to an award of attorney’s fees and expenses to plaintiffs’ counsel in both actions in the amount of $0.8 million. The court in the Mayer Derivative Action granted final approval to the settlement on May 9, 2023 and dismissed the action. On May 11, 2023, the parties to the Guzzo Derivative Action filed a stipulation and order of dismissal in the action based on the final approval of the settlement in the Mayer Derivative Action, which was entered on May 25, 2023.

We maintain insurance policies that would provide coverage to various degrees for potential liabilities arising from the legal proceedings described above.