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CONTINGENCY
 3 Months Ended
Mar. 31, 2016
CONTINGENCY  
CONTINGENCY

NOTE 7 – CONTINGENCY

 

On November 19, 2015, Family Medicine Pharmacy, LLC filed a class-action claim against Trxade Group, Inc. and its wholly owned subsidiary Westminster Pharmaceutical, LLC, Inc. (Family Medicine Pharmacy, LLC v. Trxade Group, Inc. and Westminster, Inc., Case No.: 1:15-CV-00590-KD-B, United States District Court, Southern District of Alabama, Mobile Division). Family Medicine has served Trxade for allegedly utilizing a “junk fax” advertising program. Family Medicine seeks statutory damages on behalf of a class of similarly situated entities throughout the United States. The litigation is in its preliminary stages, and discovery has not yet commenced. Although management denies any material liability and the propriety of class certification in this lawsuit, the litigation could have a lengthy duration, it is more likely than not that damages and/or settlement costs will be incurred, and the ultimate outcome cannot be predicted at this time. Therefore under ASC 450”loss on contingencies”, no accrual is recorded as of March 31, 2016.