Causing suffering and permanent organ damage

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DTSS has been implicated in a lawsuit were consumers accuse the company of causing suffering and permanent organ damage because of salmonella related food poisoning. Legal proceedings against DTSS commenced in March 2019, and the complainants seek compensation worth $20 million for damages. DTSS is self-insured; therefore, the case presents significant liability risks/concerns for the company. The company's legal counsel believes DTSS will likely be found liable in the case and required to compensate the affected customers. In this regard, the legal team estimates that DTSS will pay approximately $2 million to $3 million in damages. Any amount within their range would be probable, but it is unclear which number would be the most probable. The company needs to account for this cost in line with the audit requirements from the company's financial partners. The case assumes that DTSS will be found liable, and liability will not exceed $ million.

Reference no: EM133905019

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