Item 5. OTHER INFORMATION
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Item 5. OTHER INFORMATION
(a) A putative stockholder class action complaint, styled as Colleen Witmer v. J. Scott Kirby, et al., C.A. No. 2024-0375-PAF was filed on April 10, 2024 in the Delaware Court of Chancery (the "Action"). The plaintiff alleged, among other things, that the board of directors of the Company (the "Board") breached its fiduciary duties by adopting Amendment No. 2 to the Company’s Tax Benefits Preservation Plan (the "Plan"). The Company believes that the plaintiff’s claims were not meritorious when filed because the Plan was a reasonable response to the threat that the Company’s net operating loss carryforwards could be permanently limited or lost under Section 1.382-3(a)(1) of the Treasury Regulations. On May 8, 2024, the parties stipulated to dismissal, which the court so ordered, based on their agreement that the Board would approve and disclose an amendment to the Plan. On April 23, 2024, the Company filed a Current Report on Form 8-K disclosing Amendment No. 3 to the Plan, which revised the definitions of "Beneficial Owner," "Beneficially Own" and "Beneficial Ownership" under the Plan (and made other conforming changes). The Company disputes that these changes caused any benefit to the Company or its stockholders. On May 8, 2024, the court dismissed the action as moot and retained jurisdiction solely for the purpose of deciding any application by the plaintiff's counsel for an award of attorneys' fees and expenses. To avoid the cost, burden, and uncertainty inherent in litigation, the Company has agreed to pay $600,000 in fees and expenses to the plaintiff's counsel. On October 14, 2024, the court entered a stipulation and order providing that the Action will be dismissed with prejudice and the case will be closed, subject to the Company filing an affidavit with the court confirming that this notice has been disclosed in this Quarterly Report on Form 10-Q. In entering the order, the court was not asked to review, and did not pass judgment on, the amount or reasonableness of the attorneys' fees and expenses. The plaintiff's counsel is Christoper J. Orrico of Bernstein Litowitz Berger & Grossmann LLP, (212) 544-1400, and the Company's counsel is Rudolf Koch of Richards, Layton & Finger, P.A., (302) 651-7700.
(b) None.
(c) During the three months ended September 30, 2024, no director or "officer" (as defined in Rule 16a-1(f) under the Exchange Act) of the Company or United informed the Company or United of the adoption, modification or termination of a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K under the Exchange Act.
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