{"url_path":"/sec/game/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 LEGAL PROCEEDINGS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1714562/0001493152-26-023145-index.html","accession_number":"0001493152-26-023145","cik":"0001714562","ticker":"GAME","issuer_name":"GameSquare Holdings, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1714562/0001493152-26-023145-index.html","primary_entity_key":"0001714562","primary_entity_name":"GameSquare Holdings, Inc."},"word_count":295,"has_tables":true,"body_markdown":"**ITEM\n1. LEGAL PROCEEDINGS**\n\n \n\nReid v. GameSquare Holdings, Inc., et al. –\nA Complaint was filed on December15, 2025, in the United States District Court, Northern District of Texas by Kevin Reid against GameSquare\nHoldings, Inc., its former President, Louis Schwartz and its Chief Executive Officer, Justin Kenna. The plaintiff alleges that he was\ninduced by the defendants’ misrepresentations about the Company to purchase GameSquare stock and seeks damages of approximately\n$5 million under Texas law. The Company does not believe the claims have merit and intends to vigorously defend the matter. The Company\nis also indemnifying Mr. Schwartz in this matter, who is represented by separate counsel.\n\n \n\nA motion\nto dismiss Mr. Reid’s complaint was filed on behalf of Mr. Kenna and a partial motion to dismiss Mr. Reid’s complaint was\nfiled on behalf of GameSquare. Mr. Schwartz has also filed a motion to dismiss the complaint. Briefing on these motions has not yet been\ncompleted.\n\n \n\nThe Company is subject to various other claims, lawsuits\nand other complaints arising in the ordinary course of business. The Company records provisions for losses when claims become probable,\nand the amounts are estimable.\n\n \n\nThe outcomes of pending litigations in which the Company\nis involved are necessarily uncertain as are the Company’s expenses in prosecuting and defending these actions. From time to time\nthe Company may modify litigation strategy and/or the terms on which it retains counsel and other professionals in connection with such\nactions, which may affect the outcomes of and/or the expenses incurred in connection with such actions. Although the outcome of such matters\ncannot be determined, it is the opinion of management that the final resolution of these matters will not have a material adverse effect\non the Company’s financial condition, operations, or liquidity.\n\n \n\n41"}