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Commitments and Contingencies
9 Months Ended
Sep. 30, 2020
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
Note 16 - Commitments and Contingencies

Joyce v. Absolute Consulting, Inc.

On March 29, 2019, a former employee of Absolute Consulting, Inc., filed a putative class action against Absolute and the Company, Joyce v. Absolute Consulting Inc., case number 1:19 cv 00868 RDB, in the United States District Court for the District of Maryland. The lawsuit alleged that the plaintiff and certain other employees were not properly compensated for overtime hours worked. The Company was subsequently dismissed from the case, leaving Absolute as the sole defendant.

On August 17, 2020, Absolute entered into a Settlement Agreement with the plaintiffs, with a maximum settlement amount of $1.5 million, which required Court approval. On September 8, 2020, the Settlement Agreement between Absolute and the plaintiffs was ratified by the Court, and the case was dismissed, although the parties remain bound by the terms of the settlement agreement. Following Court approval, Absolute made an initial payment toward the settlement amount, including legal fees, of $625 thousand. The Company’s best estimate of liability pursuant to the settlement agreement, including the initial payment plus estimated claim amounts of known plaintiffs, is $861 thousand. The Company provisioned for this amount in its quarterly financial statements for the period ended June 30, 2020 within selling, general and administrative expenses. Depending upon the final number of claims asserted, the settlement agreement may require Absolute to pay up to an additional $639 thousand beyond the Company’s provision in additional claims, for a total potential liability not to exceed $1.5 million. Because the process of notifying potential class members is currently ongoing, as of September 30, 2020, and as of the date the financial statements were available or issuance, the Company has not been notified of any other claims and has recorded no additional settlement expense during the three months ended September 30, 2020.

On September 29, 2020, the Company received $952 thousand from a general escrow account, originally set up as part of the Company’s purchase of Absolute during fiscal 2017. The Company presented the gain on Joyce legal settlement and the benefit from the proceeds from the release of escrow from the Absolute transaction in selling, general and administrative expenses, in the amount of $91 thousand for the three and nine months ended September 30, 2020.

Per ASC 450 Accounting for Contingencies, the Company reviews potential items and areas where a loss contingency could arise. In the opinion of management, we are not a party to any legal proceeding, the outcome of which, in management's opinion, individually or in the aggregate, would have a material effect on our consolidated results of operations, financial position or cash flows, other than as noted above. We expense legal defense costs as incurred.