Hi Samuel,
A company facing material litigation means that the company is facing a legal battle that could significantly affect the company’s business or performance. Very often, this could mean that it may eat into the company’s profitability, but sometimes it may be nothing. There are also certain scenarios where companies must account for possible losses due to the legal case. These are more towards legal questions, of which, I am not fully equipped to answer. However, generally speaking, I try to stay away from companies who are involved in complicated lawsuits.
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