E11-7 Vanguard Security Systems is a defendant in lawsuits brought against the market- ing and distribution of its products. Damages of $9.1 million are claimed against Vanguard, but the company denies the charges and is vigorously defending itself. In a recent press conference, the president of the company said management does not believe that any actual liabilities resulting from the lawsuits will significantly affect the company's financial position. Required Write Note X to describe the contingency.