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Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 12. Commitments and Contingencies Legal Proceedings From time to time, the Company may become involved in litigation or other legal proceedings. The Company is routinely named in litigation involving claims from policyholders. Legal proceedings relating to claims are reserved in the normal course of business. The Company does not believe it is a party to any pending litigation or other legal proceedings that is likely to have a material adverse effect on the Company’s business, financial condition or results of operations. Regardless of outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. The Company does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote or where the estimated loss would not be material. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the Company’s liquidity, results of operations, business, or financial condition On November 19, 2021, Hippo and Assaf Wand were named in a civil action in San Francisco Superior Court brought by Eyal Navon. Mr. Navon alleged six claims against Mr. Wand for breach of fiduciary duty, breach of contract, promissory estoppel, fraud, negligent misrepresentation, and constructive fraud surrounding a loan and call option entered into between Innovius Capital Canopus I, L.P. (“Innovius”) and Mr. Navon, as well as alleged promises made by Mr. Wand to Mr. Navon while Mr. Navon was an employee of Hippo. Innovius was an investor in the Company prior to its transaction with Mr. Navon. Mr. Navon filed a Fourth Amended Complaint on February 2, 2024, in which he alleged 19 claims for relief and sought treble damages in connection with certain of the claims. Hippo has engaged counsel to defend both Hippo and Mr. Wand. On February 16, 2024, Hippo and Mr. Wand filed an answer to the Fourth Amended Complaint, and filed a cross-complaint against Mr. Navon for fraud, negligent misrepresentation, fraudulent inducement, and breach of contract. Additionally, on February 16, 2024, Innovius also filed an amended cross-complaint naming Mr. Navon, Hippo, and Mr. Wand as cross-defendants.  Innovius alleged that Hippo and Mr. Wand aided and abetted Mr. Navon’s fraud against Innovius. The cross-complaint also included a breach of contract claim. Hippo and Mr. Wand have filed a Motion for Summary Judgment against each of the claims filed by Mr. Navon and Innovius, and Mr. Navon filed a Motion for Summary Judgment on Hippo’s cross complaint against him. A hearing on the Motions for Summary Judgment was held on June 7, 2024, and a final order on the motion was issued by the court on July 1, 2024. The court granted in part and denied in part Hippo’s and Mr. Wand’s motions. Specifically, the court (i) dismissed all of Mr. Navon’s claims against Hippo such that none of Mr. Navon’s claims against Hippo remain; (ii) dismissed all of Mr. Navon’s claims against Mr. Wand, with the exception of the promissory estoppel claim; (iii) dismissed all of Innovius’ claims against Hippo and Mr. Wand, with the exception of one claim of breach of contract against Hippo; and (iv) denied Mr. Navon’s Motion for Summary Judgment on Hippo and Mr. Wand’s claims against Mr. Navon, such that all of those claims survive. Although the court had set a trial date of September 9, 2024, on July 23, 2024, Mr. Navon filed a petition for a writ of mandate, seeking appellate review of the court’s orders on the Motion for Summary Judgment and requesting that the September 9, 2024 trial date be stayed. The court rescheduled the trial date to February 10, 2025, and required the parties to mediate the claim prior to the trial. Any potential losses associated with the ongoing dispute with Mr. Navon cannot be estimated at this time.

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