{"url_path":"/sec/lbra/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 LEGAL PROCEEDINGS.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1599407/0001213900-26-057499-index.html","accession_number":"0001213900-26-057499","cik":"0001599407","ticker":"LBRA","issuer_name":"1847 Holdings LLC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1599407/0001213900-26-057499-index.html","primary_entity_key":"0001599407","primary_entity_name":"1847 Holdings LLC"},"word_count":744,"has_tables":true,"body_markdown":"** **\n\n**ITEM 1. LEGAL PROCEEDINGS.**\n\n \n\nFrom time to time, we may become involved in\nvarious lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties,\nand an adverse result in these, or other matters, may arise from time to time that may harm our business. Except as set forth below,\nwe are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business,\nfinancial condition or operating results.\n\n \n\nOn September 4, 2025, Alpha Capital Anstalt, or Alpha\nCapital, filed a complaint in the Supreme Court of the State of New York, County of New York against our company, in an action captioned\n*Alpha Capital Anstalt v. 1847 Holdings LLC, Index No. 655245/2025*. The complaint asserts a claim for breach of contract against\nour company based on its alleged breach of a securities purchase agreement it entered into with Alpha Capital on December 14, 2024, or\nthe SPA. Alpha Capital alleges that we breached the implied covenant of good faith and fair dealing and Section 4.10 in the SPA by failing\nto take steps to have our common shares listed on another trading market after it was delisted from NYSE American. Alpha Capital alleges\nthat, as a result of our alleged failure in that regard, it has not been able to sell or exercise the securities it acquired under the\nSPA and in a subsequent transaction. Alpha Capital seeks damages of at least $2 million plus its attorney’s fees, costs, and pre-\nand post-judgment interest and, alternatively, an order requiring us to get our common shares listed on a trading market. On October 8,\n2025, we filed an answer to the complaint denying the material allegations in the complaint and asserting several affirmative defenses.\nWe amended our answer on April 2, 2026, and the amended answer includes a demand for our costs and attorney’s fees incurred in defending\nthe action pursuant to the provision in SPA providing that the prevailing party in litigation is to be awarded its fees and costs from\nthe other party. On January 22, 2026, the court held a Preliminary Conference and set September 18, 2026 as the deadline for Alpha Capital\nto file a note of issue/certificate of readiness, and the court will thereafter set a trial date. Discovery commenced on February 27,\n2026 and is ongoing. We believe we have meritorious defenses to Alpha Capital’s claims, including because our common shares commenced\ntrading on the OTCID market on October 15, 2025. Our company intends to vigorously defend itself against Alpha Capital’s claims.\nDue to this litigation being at an early stage, we cannot reasonably estimate at this time the potential loss or range of loss, if any,\nin the event of an adverse outcome in this matter. It is possible an adverse outcome could materially adversely affect our financial condition,\nresults of operations, and cash flows. No accrual has been recorded with respect to this legal matter.\n\n \n\nOn October 17, 2025, Matthew Miller, individually\nand as principal of Strategic Risk, LLC, or the Plaintiff, filed a complaint in the U.S. District Court for the Southern District of New\nYork in an action captioned *Matthew Miller v. 1847 Holdings LLC; 1847 Partners LLC; Ellery W. Roberts; Louis Bevilacqua; Bevilacqua\nPLLC; Joseph D. Wilson; Eric Van Dam; Vernice Howard; Edward Tobin; Glyn Milburn; and Does 1-10, case no. 1:25-cv-08606-LAK*. On October\n24, 2025, Plaintiff filed an amended complaint that also named Spartan Capital Securities LLC; and Sichenzia Ross Ference Carmel LLP as\ndefendants. On October 28, 2025, the Court *sua sponte* dismissed the amended complaint without prejudice and with leave to replead.\nOn November 24, 2025, the Plaintiff filed a second amended complaint naming 1847 Holdings, LLC, 1847 Partners, LLC, Ellery W. Roberts,\nLouis A. Bevilacqua, Bevilacqua PLLC, and Vernice Howard as defendants and alleging claims for securities fraud, scheme liability, control\nperson liability, and common law fraud. On February 17, 2026, 1847 Holdings, 1847 Partners, Mr. Roberts, and Ms. Howard filed a motion\nto dismiss the second amended complaint. On April 18, 2026, the Court entered an order dismissing the second amended complaint. The\ndismissal is with prejudice with respect to all of the Plaintiff’s claims, with the exception of the common law fraud claim, with\nthe Court exercising its discretion not to proceed with that claim. On April 20, 2026, the Court entered a judgment in favor of the defense."}