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CONTIGENCY
 6 Months Ended
Jun. 30, 2016
CONTIGENCY  
CONTIGENCY

NOTE 8– CONTIGENCY

 

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. On June 6, 2016, we entered into a binding memorandum of understanding with the plaintiff related to this litigation to resolve all claims in exchange for Trxade funding a settlement fund in the amount of $200,000. Pending objections and/or resolutions, we are currently waiting for the court’s final approval of the settlement. We believe this case will settle under the proposed settlement, therefore, under ASC 450 – “Contingencies”, an accrual of $200,000 is recorded as of June 30, 2016.