{"url_path":"/sec/hcmc/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/844856/0001493152-26-022965-index.html","accession_number":"0001493152-26-022965","cik":"0000844856","ticker":"HCMC","issuer_name":"Healthier Choices Management Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/844856/0001493152-26-022965-index.html","primary_entity_key":"0000844856","primary_entity_name":"Healthier Choices Management Corp."},"word_count":318,"has_tables":true,"body_markdown":"**ITEM\n1. LEGAL PROCEEDINGS.**\n\n \n\nThere\nwere two lawsuits in connection with alleged claimed battery defects for an electronic cigarette device. One had been dismissed by the\ncourt wherein the plaintiff settled with the Company’s insurance carrier with no economic impact to the Company. In the second\nlawsuit, as of December 31, 2023, the Company had reached an arrangement with the plaintiff to resolve the matter, limiting potential\nexposure of the Company to $1.5 million which was reflected in accounts payable and accrued expenses, representing management’s\nestimate of the probable settlement amount based on the current status of discussions. This arrangement was formalized by a signed agreement\non July 1, 2024 and the Company accrued $1.5 million at June 30, 2024. As of May 31, 2025, the Company already paid $1,500,000 in full.\n\n \n\nOn\nSeptember 26, 2023, HCMC filed a patent infringement lawsuit against R.J. Reynolds Vapor Company (“RJR”) in the U.S. District\nCourt for the Middle District of North Carolina in connection with HCMC’s assertions that RJR’s Vuse electronic cigarette\ninfringes one of HCMC’s patents.\n\n \n\nOn\nNovember 17, 2023, RJR filed a motion to dismiss the action. HCMC opposed on December 22, 2023.\n\n \n\nOn\nSeptember 18, 2024, RJR filed an inter partes review of the patent-in-suit at the United States Patent and Trademark Office (“USPTO”).\n\n \n\nIn March 2026, the Patent Trial and Appeal Board issued a decision in favor of RJR in the ongoing patent dispute.\nThe Company is currently evaluating its options and expects to file an appeal of the ruling.\n\n \n\nFrom\ntime to time the Company is involved in legal proceedings arising in the ordinary course of our business. We believe that there is no\nother litigation pending that is likely to have, individually or in the aggregate, a material adverse effect on our financial condition\nor results of operations as of March 31, 2026. With respect to legal costs, we record such costs as incurred."}