DIXIE GROUP INC

We have been sued together with 15 other defendants in a civil action filed January 22, 2024, in the Superior Court of Gordon County Georgia. The case is styled: Moss Land Company, LLC and Revocable Living Trust of William Darryl Edwards, by and through William Darryl Edwards, Trustee vs. City of Calhoun et al., Civil Action Number 24CV73929. The plaintiffs are two landowners located in Gordon County Georgia. The relief sought is compensation for alleged damages to the plaintiffs’ real property, an injunction from alleged further damage to their property and abatement of alleged nuisance related to the presence of PFAS and related chemicals on their property. The Plaintiffs allege that such chemicals have been deposited on their property by the City of Calhoun as a byproduct of treating water containing such chemicals used by manufacturing operations in and around Calhoun Georgia. The defendants include the City of Calhoun Georgia, several other carpet manufacturers, and certain manufacturers and sellers of chemicals containing PFAS. No specific amount of damages has been demanded. We have filed an answer denying liability and are vigorously defending the matter.

On March 1, 2024, the City of Calhoun Georgia served an answer and crossclaim for Damages and injunctive relief in the pending matter styled: In re: Moss Land Company, LLC and Revocable living Trust of William Darryl Edwards by and through William Darryl Edwards, Trustee v. The Dixie Group, Inc. in the Superior Court of Gordon County Georgia, case Number: 24CV73929. In its Answer and Crossclaim defendant Calhoun sues The Dixie Group, Inc. and other named carpet manufacturing defendants for unspecified monetary damages and other injunctive relief based on injury claimed to have resulted from defendant’s use and disposal of chemical wastewater containing PFAS chemicals. We have filed an answer denying liability and are vigorously defending the matter.

On May 7, 2024, we were sued, together with 15 other named defendants, in a matter styled William Hartwell Brooks, et al v the City of Calhoun Georgia, in the Superior Court of Gordon County Georgia, civil action number 24CV74289. The case seeks unspecified monetary and other damages alleged to have been suffered by plaintiffs as landowners by the discharge of PFAS chemicals in proximity to or directly adjacent to their properties. We have filed an answer denying liability and are vigorously defending the matter.

On July 25, 2024, the City of Calhoun, Georgia served an answer and crossclaim for damages and injunctive relief in the pending matter styled: William Hartwell Brooks, et al v the City of Calhoun Georgia, in Superior Court of Gordon County Georgia, civil action number 24CV74289. In its Answer and Crossclaim, defendant Calhoun sues us and other named carpet manufacturing defendants for unspecified monetary damages and other injunctive relief based on injury claimed to have resulted from defendant's use and disposal of chemical waste water containing PFAS chemicals. We have filed an answer denying liability and are vigorously defending the matter.

On January 28, 2025, we were sued along with 15 other named defendants in a matter styled: Stephens v the Dixie Group, Inc. et al., in the Superior Court of Gordon County, Georgia, case number 25CV7507. The case seeks unspecified monetary and other damages alleged to have been suffered by plaintiffs as landowners by the discharge of PFOA, PFOS and related chemicals in proximity to or directly adjacent to their property. We have filed an answer denying liability and are vigorously defending the matter.

On June 27, 2025, pursuant to plaintiffs’ second amended complaint, we were sued along with 21 other named defendants in a matter styled: The City of Chatsworth, Georgia v. 3M Company, et al., in the Superior court of Murray County, Georgia, case No. 25C10245. The case seeks unspecified monetary and other damages alleged to have been suffered by plaintiffs as a result of the manufacture, use and discharge of PFOA, PFOS, and related chemicals by defendants in Murray County, and the consequent alleged pollution of ground and surface waters in said County. We have answered the complaint, denied liability, and are defending the matter vigorously.