Your interpretation is wrong. It doesn't say what you claim it says. It merely says that final distribution documents must be provided if they exist. Nowhere does it say that a company cannot have any lawsuits against it. It does not say that anywhere in that rule. In fact, by asking the question on the application it assumes that companies have lawsuits against them all the time. They could have easily said that you can't uplist if you have any pending lawsuits, but they don't say that because that's not the rule. Your post amounts to distortion.