Legal Proceedings

The Fund is subject to claims and suits that arise from
time to time in the ordinary course of business.  A
court-appointed trustee on behalf of the unsecured
creditors of Tribune Co. (the" Trustee"), together with
certain individual creditors of the company (the
"Individual Creditors") filed actions against former
Tribune shareholders who tendered their shares when
Tribune went private in 2007 as part of a leveraged
buyout ("LBO").  These cases are consolidated in Multi-
District Litigation ("MDL") in the U.S. District Court for
the Sothern District of New York.  There were
thousands of defendants in the MDL, including the
Value Line Capital Appreciation Fund, Inc.  The suits all
sought the same thing: disgorgement of the amounts
received by the former Tribune shareholders as part of
the LBO, but by different legal theories.  During the year
ended December 31, 2019, Fund management accepted
an offer to settle the MDL and the Fund paid $137,355
to settle the claim.