C$.$ U$.$ InCourt is being sued by at least $10$ former customers for injuries caused by one of the company's products. The plaintiffs are seeking damages and penalties that represent a material amount for CUI. As of $31$ December, the company's fiscal year end, all $10$ lawsuits are in progress, but remain undecided. Briefly explain in your own words what steps CUI must take to report, disclose, or ignore these lawsuits appropriately for financial statement purposes. In your answer, be sure to explain the reporting and disclosure requirements.