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Subsequent Events
6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events

20. Subsequent Events

 

Settlement of Insurance Claim

 

In July 2024, pursuant to a previously filed business interruption claim, the Company received the remaining settlement amount of $7.3 million. The Company recorded the payment received as other income, net in the third quarter of 2024.

 

Class Action Lawsuits

 

On July 15, 2024, the Company entered into a settlement agreement (the “Settlement Agreement”) with the plaintiffs in connection with the Class Action Lawsuit. Pursuant to the Settlement Agreement, the Company will make a cash payment upon the receipt of an executed release of all claims by the plaintiffs. The payment will have no material impact on results of operations, financial condition or cash flow of the Company. The Settlement Agreement is subject to approval by the United States District Court for the Northern District of California. If the court does not grant final approval of the Settlement Agreement, or the settlement does not otherwise become final or effective, proceedings in the Class Action Lawsuit will continue. See Note 13 - Commitments and Contingencies - Legal Proceedings for further discussion of the Class Action Lawsuit.

 

On July 24, 2024, a former part-time employee filed a class action lawsuit against Purple LLC in California Superior Court in the County of Alameda alleging failure to pall all wages, failure to pay overtime pay rate, failure to provide all meal periods, and other employment-related causes of action. The suit seeks damages, interest, attorneys’ fees, costs and other relief on behalf of all non-exempt California employees of Purple LLC during the applicable statutory periods.