Company Hufflepuff is sued. During pending litigation, the maximum judgmentt that can potentially be rendered is decided to be about $1 million. The attorney believe, however that the probability of losing the case to be remote. What is the proper disclosure of the pending litigation?
Disclose in footnote that Hufflepuff has no material probable litigation losses.
Disclose in footnote that Hufflepuff is party to the litigation with a possible liability of up to $1 Million.
Disclose in footnote that Hufflepuff is party to the litigation but without disclosing an amount.

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The answer is A Disclose in a footnote that Hufflepuff has no mater... View the full answer