Litigation |
6 Months Ended |
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Jun. 30, 2017 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Litigation |
Litigation:
[The Company is party to claims in lawsuits incidental to its business. In the opinion of management, the ultimate outcome of such matters, individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.
In November 2015, certain employees filed a class action lawsuit against related parties of the Company and Bagatelle La Cienega, LLC (“Bagatelle – Los Angeles”), an equity investee of the Company, which has since ceased operations, (collectively, the “Defendants”) alleging that the Defendants neglected to conform to California state and local rest and meal period requirements as well as other employment-related allegations. In April 2017, the Defendants agreed with the plaintiffs to propose court approval of a class action settlement for $350,000 to avoid the uncertainty and risk associated with continued litigation. Such settlement agreement was preliminarily approved by the court. Accordingly, in the second quarter of 2017, the Company accrued $245,000 under general and administrative expenses, which represents its share in the settlement costs. In addition, through Bagatelle Investors, the Company recognized its equity in Bagatelle – Los Angeles’ share of the settlement costs, of approximately [$52,500]. Final approval by the court of this settlement agreement is pending and is expected to be completed by the close of 2017.
In May 2016, certain employees filed a class action lawsuit against related parties of the Company and Bagatelle NY, an equity investee of the Company, (collectively, the “Defendants”) alleging that the Defendants improperly took tip credits due to these employees and other employment-related allegations. In May 2017, the Defendants reached a settlement agreement for up to a maximum of $1,100,000 with the plaintiffs to avoid the uncertainty and risk associated with continued litigation. Such settlement agreement was preliminarily approved by the court. Accordingly, in the second quarter of 2017, the Company accrued $550,000 under general and administrative expenses, which represents its share in the settlement costs. In addition, through Bagatelle Investors the Company recognized its equity in Bagatelle NY’s share of the settlement costs, of approximately $275,000. Final approval by the court of this settlement agreement is not scheduled to occur until October 2017.]
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