Lumen OHM Assessment

Which of the following should be recorded as a liability?

A lawsuit against the company for $100,000 that will likely be settled out of court for an amount yet to be determined.
A potential lawsuit for $100,000 that has not been filed yet.
A lawsuit against the company for $100,000 that legal counsel feels is frivolous but still needs to be defended against.
A lawsuit against the company that will likely be settled soon for $100,000.