Question: Vita Technologies is involved in cancer research. Vita is involved in a number of lawsuits related to their operations. For each case, indicate the disclosure that should be provided by Vita Technologies in the annual financial statement.
(1) One of their drugs, Hypothiaman, resulted in dangerous side effects of which Vita was unaware. As a result, a class action lawsuit has been filed against Vita. Vita's attorneys feel it is probable that the company will lose the suit, and the amount can be reasonably estimated.
(2) An employee of Vita is suing the company alleging that his seizures are a result of the working environment at Vita. Vita's attorneys feel the suit is without merit.
(3) A competitor, Mancro Drugs, has filed suit against Vita alleging patent infringement. Vita's attorneys are unsure as to the outcome of the suit.