second life - complaint without exhibits

8/14/2019 Second Life - Complaint Without Exhibits

1/36

,???FRPSODLQWGRF

0(6&+.2:*5(6+$03/&-RUGDQ00HVFKNRZ$=%DU1R/RZHOO:*UHVKDP$=%DU1R*RXUL*1DLU$=%DU1R1RUWK6HYHQWK6WUHHW6XLWH

3KRHQL[$=7HOHSKRQH)DFVLPLOH(PDLOV0HMP#SDWHQWPJFRPJQ#SDWHQWPJFRPPJ#SDWHQWPJFRP

7$6(5,QWHUQDWLRQDO,QF+ROO\/*LEHDXW$=%DU1R1WK6WUHHW6FRWWVGDOH$UL]RQD7HOHSKRQH)D[(PDLOOHJDO#WDVHUFRP$WWRUQH\VIRU3ODLQWLII

81,7('67$7(6',675,&7&2857

',675,&72)$5,=21$

7DVHU ,QWHUQDWLRQDO ,QF DQ $UL]RQD&RUSRUDWLRQ

3ODLQWLII

Y

/LQGHQ5HVHDUFK,QFDQHQWLW\RIXQNQRZQRULJLQ /LQGHQ /DE DQ HQWLW\ RI XQNQRZQRULJLQ 3KLOLS 5RVHGDOH 0DUN .LQJGRQ)UDQN$PEURVH 6DQG\*RXOG7RP+DOH+RZDUG/RRN%ULDQ0LFKRQ -RH 0LOOHU0DUW\5REHUWV&\Q6N\EHUJ-XG\:DGH*LQVX


2/36

,???FRPSODLQWGRF

3ODLQWLII7DVHU ,QWHUQDWLRQDO,QF IRU LWV &RPSODLQW DJDLQVW /LQGHQ 5HVHDUFK,QF

/LQGHQ /DE 3KLOLS 5RVHGDOH 0DUN .LQJGRQ )UDQN $PEURVH 6DQG\ *RXOG 7RP +DOH

+RZDUG/RRN%ULDQ0LFKRQ-RH0LOOHU0DUW\5REHUWV&\Q6N\EHUJ-XG\:DGH*LQVX


3/36

,???FRPSODLQWGRF

WKHUHIRUH GRLQJ EXVLQHVV LQ WKLV GLVWULFW DQG KDYH FRPPLWWHG PDQ\ DQG YDULHG DFWV RI

LQIULQJHPHQWRIDWOHDVWWKH7$6(5WUDGHPDUNVXHGXSRQKHUHLQLQWKLVGLVWULFW

8SRQ LQIRUPDWLRQ DQG EHOLHI DOO WKH 'HIHQGDQWV DUH DGYHUWLVLQJ RU KDYH

FDXVHGRUDOORZHGWKHLUUHVSHFWLYHJRRGVDQGEXVLQHVVWREHDGYHUWLVHGVROGDQGRURIIHUHG

IRUVDOHDQGWKH\KDYHGLUHFWHGVDOHVRIZHDSRQU\SURGXFWVWREHVROGZLWKLQWKLVGLVWULFW

7+(3$57,(6

7DVHU,QWHUQDWLRQDO,QFDOVRNQRZQDV7,,KHUHDIWHU7,, RU3ODLQWLIILVD

'HODZDUHFRUSRUDWLRQDXWKRUL]HGWRGREXVLQHVVLQ$UL]RQD

'HIHQGDQW /LQGHQ 5HVHDUFK ,QF LV DQ HQWLW\ RI XQNQRZQ RULJLQ ZLWK LWV

SULQFLSDOSODFHRIEXVLQHVVLQ6DQ)UDQFLVFR&$DQGGRHVEXVLQHVVZLWKLQWKLVGLVWULFW7,,

LVLQIRUPHGDQGEHOLHYHVWKLV'HIHQGDQWKDVLWVEXVLQHVVDGYHUWLVHGRQWKHLQWHUQHWLQWKLV

GLVWULFWRQLWVZHEVLWHDWKWWSZZZOLQGHQODEFRPXQGHUWKHQDPH/LQGHQ5HVHDUFK,QF

KHUHDIWHU/5,RU'HIHQGDQW/5, See([KLELW,WDOVRGLVWULEXWHVDQDSSOLFDWLRQQDPHG

6HFRQG/LIHIRUIUHHXVHRUZLWKSDLGPHPEHUVKLSXVHVRWKDWLWPD\VHOODQGSURILWIURP

DFFHVVRULHV IRU VXFK DSSOLFDWLRQ 6RPH RI WKHVH DFFHVVRULHV FOHDUO\ LQIULQJH XSRQ

3ODLQWLIIVWUDGHPDUNULJKWV 2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQW /LQGHQ /DE LVDQHQWLW\RIXQNQRZQ

RULJLQZLWKLWVSULQFLSDOSODFHRI EXVLQHVVLQ6DQ)UDQFLVFR&$DQGGRHVEXVLQHVVZLWKLQ

WKLV GLVWULFW ,Q WKH DOWHUQDWLYH 'HIHQGDQW /LQGHQ /DE LV D GRLQJ EXVLQHVV QDPH RI

'HIHQGDQW/5,

2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV /5, DQG /LQGHQ /DE DOVR RZQ DQG

RSHUDWHWZRRWKHUZHEVLWHVDYDLODEOHDQGDGYHUWLVHGRQWKHLQWHUQHWLQWKLVGLVWULFWRQ WKHLU

ZHEVLWHDWKWWSVHFRQGOLIHFRPDQGKWWSVZZZ[VWUHHWVOFRPSee([KLELWVDQG

2QLQIRUPDWLRQDQGEHOLHIRQWKHLUZHEVLWHV'HIHQGDQWV/5,DQG/LQGHQ/DE

VHOO YLUWXDO ZHDSRQU\ XVLQJ WKH QDPH 7$6(5 WR XVH LQ YLUWXDO FRPSXWHU DQLPDWLRQV

SURYLGHGE\WKHVH'HIHQGDQWVLQWKLVGLVWULFWRQWKHLUZHEVLWHDW KWWSVHFRQGOLIHFRP$


4/36

,???FRPSODLQWGRF

FRS\ RI UHOHYDQW ZHESDJHV IRU 'HIHQGDQWV /5, DQG /LQGHQ /DEV VKRZLQJ XVH RI WKH

7$6(5PDUNIRUYLUWXDOZHDSRQU\LVDYDLODEOHLQWKLVGLVWULFWLVLQFOXGHGLQ([KLELW

8SRQ LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV 3KLOLS 5RVHGDOH 0DUN .LQJGRQ

)UDQN$PEURVH6DQG\*RXOG7RP+DOH+RZDUG/RRN%ULDQ0LFKRQ-RH0LOOHU0DUW\

5REHUWV&\Q6N\EHUJ -XG\ :DGH *LQVX


5/36

,???FRPSODLQWGRF

8SRQLQIRUPDWLRQDQGEHOLHIDOORIWKH'HIHQGDQWVWKDWVHOOYLUWXDOZHDSRQU\

OLNH3ODLQWLIIVUHDORQHVXQGHUWKHPDUN7$6(5IRUXVHLQWKH6HFRQG/LIHSURJUDPVDQG

JULGV DOVR VHOO DGXOWRQO\ H[SOLFLW LPDJHV DQG VFHQHV DWWDFKHG ZLWKLQ ([KLELW WKXV

DWWDFKLQJVXFKFRQWHQWWRWKH7$6(5PDUNSee([KLELWVDQG

8SRQLQIRUPDWLRQDQGEHOLHIDOORIWKH'HIHQGDQWVWKDWVHOOYLUWXDOZHDSRQU\

OLNH3ODLQWLIIVUHDORQHVXQGHUWKHPDUN7$6(5IRUXVHLQWKH6HFRQG/LIHSURJUDPVDQG

JULGVDOVRVHOOXQODZIXOGUXJPDWHULDOVseeUHIHUHQFHWRFUDFNGHQLQ([KLELWSDJH

WKXVDWWDFKLQJVXFKFRQWHQWWRWKH7$6(5PDUN

8SRQ LQIRUPDWLRQ DQG EHOLHI WKH 'HIHQGDQWV /5, /LQGHQ /DEV 9/& DQG

;6WUHHW6/DUHPDQDJHGRZQHGDQGRURSHUDWHGE\DQLQGLYLGXDODQGWKDWLQGLYLGXDOLV

SDUW RI D VSRXVDO UHODWLRQVKLS 8SRQ LQIRUPDWLRQ DQG EHOLHI DOO DFWLRQV RI HDFK RI WKH

'HIHQGDQWVWKDWDUHPDQDJHGRZQHGDQGRURSHUDWHGE\DQLQGLYLGXDODOOHJHGKHUHLQZHUH

RQEHKDOIRIWKDWLQGLYLGXDOVVSRXVDOFRPPXQLW\

3ODLQWLIISXUVXDQWWRWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHKHUHE\GHPDQGVD

WULDOE\MXU\LQWKLVPDWWHU

'(9(/230(172)7+(7$6(5%5$1'

3ODLQWLII7,, EHJDQRSHUDWLRQV DVD ZHDSRQU\PDQXIDFWXUHU DQG VHOOHU \HDUV

DJR

$VHDUO\DV 1RYHPEHU3ODLQWLII E\ DQG WKURXJK SUHGHFHVVRU HQWLWLHV

EHJDQ VHOOLQJ QRQOHWKDO ZHDSRQU\ XQGHU WKH PDUN 7$6(5 $Q HDUO\ UHJLVWUDWLRQ ODVW

RZQHGE\3ODLQWLIIZDVLVVXHGUHJLVWUDWLRQDVHDUO\DV$SULOXQGHU867UDGHPDUN

5HJLVWUDWLRQ1R$FRS\RIWKLVUHJLVWUDWLRQLVDWWDFKHGDV([KLELW

,Q-DQXDU\3ODLQWLIIEHJDQPDNLQJDQGVHOOLQJDQHZOLQHRIQRQOHWKDO

ZHDSRQU\ VR 3ODLQWLII ILOHG D QHZ WUDGHPDUN DSSOLFDWLRQ IRU WKDW OLQH RI QRQOHWKDO

ZHDSRQU\RQ-XQHDQGLWDOORZHG867UDGHPDUN5HJLVWUDWLRQ1RWR

ODSVH %\ 1RYHPEHU 3ODLQWLII KDG D QHZ 7$6(5 UHJLVWUDWLRQ 7UDGHPDUN

5HJLVWUDWLRQ 1R 3ODLQWLII ILOHG WR FRUUHFW WKH OLVWLQJ RI JRRGV LQ 7UDGHPDUN


6/36

,???FRPSODLQWGRF

5HJLVWUDWLRQ 1R DQG D FRUUHFWHG UHJLVWUDWLRQ ZDV SURYLGHG $ FRS\ RI WKH

FRUUHFWHG7UDGHPDUN5HJLVWUDWLRQ1RLVDWWDFKHGDV([KLELW

3ODLQWLII DOVR EHJDQ PDUNHWLQJ D ZHDSRQ PRGHO 0 PDUNHG DV WKH

$'9$1&(' 7$6(5 EHWZHHQ -XQH DQG 'HFHPEHU ,W ILOHG WR KDYH WKLV PDUN

UHJLVWHUHGDVZHOODQGWKH$'9$1&('7$6(5WUDGHPDUNUHJLVWHUHGRQ'HFHPEHU

$FRS\RIWKH7UDGHPDUN5HJLVWUDWLRQ1RLVDWWDFKHGDV([KLELW

$GGLWLRQDOO\ 3ODLQWLII EHJDQVHOOLQJ RWKHUZHDSRQU\ EHVLGHV DILUHDUPW\SH

LQRUDERXW'HFHPEHU2Q$SULO3ODLQWLIIUHFHLYHG7UDGHPDUN5HJLVWUDWLRQ

1R IRU WKH PDUN 7$6(5 IRU GDUW ODXQFKHUV DQG GDWD UHFRUGHUV IRU WKH

ODXQFKHUVSee ([KLELW

%\ YLUWXH RI LWV ILUVW XVH RI WKH PDUN 7$6(5 IRU FHUWDLQ ZHDSRQU\

3ODLQWLII 7,, EHFDPH WKH RZQHU RI WKH FRPPRQ ODZ WUDGHPDUN 7$6(5 ZKLFK ZDV ILUVW

XVHGLQFRPPHUFHRQRUDIWHU1RYHPEHU$GGLWLRQDOO\E\YLUWXHRI3ODLQWLIIVQHZHU

WUDGHPDUNULJKWV3ODLQWLIIREWDLQHGWDFNLQJULJKWVWRLWVHDUOLHUXVHSXUVXDQWWRVXFKFDVH

ODZ DV Brookfield Commc'ns, Inc. v. West Coast Entertainment Corporation )G

WK&LUKey Corp v. Key Bank & Trust)6XSSG1'

2KLRQQuiksilver Inc. v. Kymsta Corp.86$SS/(;,6WK

&LU

$QG DV 3ODLQWLII FRQWLQXHG WR XVH WKH 7$6(5 PDUN LW VHFXUHG UHJLVWUDWLRQ RI

VHYHUDO7$6(5PDUNVDQGPDUNHGDPRGHODVPRGHOQXPEHU;

3ODLQWLIIV FHUWLILFDWHV RI7UDGHPDUN5HJLVWUDWLRQ1RV

DQG HVWDEOLVKHV 3ODLQWLII LV WKH RZQHU RI WKH DFWLYH ZHDSRQU\ 7$6(5 DQG

$'9$1&('7$6(5UHJLVWUDWLRQVFXUUHQWO\RQWKH3ULQFLSDO5HJLVWHUSee ([KLELWV

DQG

(DFKRI 3ODLQWLIIVPDUNV VHWIRUWKKHUHLQKDVEHHQ LQFRQWLQXRXV XVHDQG LV

FXUUHQWO\LQXVHLQWKH8QLWHG6WDWHVLQFRQQHFWLRQZLWK7,,VVSHFLILHGJRRGV7,,VPDUNV

LQFOXGLQJFRPPRQODZULJKWVDQGULJKWVE\UHJLVWUDWLRQDUHFROOHFWLYHO\UHIHUUHGWR KHUHLQ

DVWKH7$6(5PDUN


7/36

,???FRPSODLQWGRF

7,, KDV HQMR\HG FRQWLQXRXV DQG VXEVWDQWLDOVDOHV RILWV JRRGVLQ FRQQHFWLRQ

ZLWKWKH7$6(5PDUNDQGWUDGHQDPHLQWKH8QLWHG6WDWHVDQGLQPXOWLSOHRWKHUFRXQWULHV

7,, KDV DOVR XVHG PRGHO QXPEHU 0 IRU KDQGKHOG HOHFWURQLF ZHDSRQV DV RI WKH IRXUWK

TXDUWHU RI DQG PRGHO QXPEHU ; IRU KDQGKHOG HOHFWURQLF ZHDSRQV DV RI WKH UG

TXDUWHURI

%\ UHDVRQ RI 7,,V ORQJVWDQGLQJ DQG H[WHQVLYH PDUNHWLQJ DGYHUWLVLQJ

SURPRWLRQ DQG UHVXOWLQJ VDOHV RI LWV JRRGV DQG VHUYLFHV LQ FRQQHFWLRQ ZLWK WKH 7$6(5

PDUNDQGWUDGHQDPHDQGWKHKLJKTXDOLW\RIWKRVHJRRGVWKH7$6(5PDUNDQGWUDGHQDPH

KDYHDFTXLUHGGLVWLQFWLYHQHVVUHFRJQLWLRQDQGIDPHDPRQJSXUFKDVHUVDQGWKHSXEOLFORQJ

EHIRUHDQ\RIWKH'HIHQGDQWVFDQFODLPDQ\SULRULW\LQLWV7$6(5PDUN

%\ UHDVRQRIWKH H[WHQVLYH PDUNHWLQJDGYHUWLVLQJSURPRWLRQDQGUHVXOWLQJ

VDOHVDQGSXEOLFUHFRJQLWLRQRI7,,VJRRGVLQFRQQHFWLRQZLWKWKH7$6(5PDUNDQGWUDGH

QDPHDQGWKHKLJKTXDOLW\RIWKRVHJRRGVWKH7$6(5PDUNDQGWUDGHQDPHKDYHFRPHWR

UHSUHVHQWH[WUHPHO\YDOXDEOHJRRGZLOOWR7,,

7KH'HIHQGDQWVDGRSWLRQDQGXVHRIWKH7$6(5PDUNKDVEHHQZLWKRXWWKH

FRQVHQWRUSHUPLVVLRQRI3ODLQWLII

8SRQLQIRUPDWLRQDQGEHOLHIWKH'HIHQGDQWVDGRSWLRQDQGXVHRILWV7$6(5

PDUNKDVEHHQZLWKDFWXDORUFRQVWUXFWLYHNQRZOHGJHRIWKHSULRUXVHRIDSSOLFDWLRQIRU

DQGUHJLVWUDWLRQRIWKH7$6(5PDUNDQGWUDGHQDPHLQFRQQHFWLRQZLWK7$6(5VJRRGV

DQGVHUYLFHV

3/$,17,))6',6&29(5


8/36

,???FRPSODLQWGRF

8SRQLQIRUPDWLRQDQGEHOLHIXQWLOYHU\ UHFHQWO\WKH9/&;6WUHHW6/DQG

-D\*HHVHPDQ'HIHQGDQWVVROGDQGDGYHUWLVHG7$6(5EUDQGYLUWXDOZHDSRQU\YLDWKHZHE

GLUHFWO\LQWRWKLVGLVWULFWDVZHOO

8SRQ LQIRUPDWLRQ DQG EHOLHI WKH 'HIHQGDQWV FRPPXQLFDWHG DPRQJVW

WKHPVHOYHV DQG RWKHUV YLD PDLO HPDLO WHOHSKRQH DQGRU WKURXJK RWKHU LQWHUVWDWH DQG

LQWUDVWDWHPHGLXPVVRDVWRSODQWRQDWLRQDOO\VHOODQGGLVWULEXWHWKHLUDSSOLFDWLRQVGLUHFWO\

LQWRWKLVGLVWULFWDQGWRSDVVRIIRQ7,,V7$6(5EUDQGZHDSRQU\DVWKHLURZQYLDWKHZHE

8SRQLQIRUPDWLRQDQGEHOLHIWKH'HIHQGDQWVDFWLRQVWRSDVVRII7$6(5ZHDSRQU\DVWKHLU

RZQ ZHUH IDOVH IUDXGXOHQW RUWR LQGXFH IUDXGZLWKLQ FRQVXPHUV ZKLFKFDXVHG KDUPWR

3ODLQWLIIE\DVVRFLDWLQJVXFKZHDSRQU\ZLWKDGXOWRULHQWHGQHDUO\RUDFWXDOO\SRUQRJUDSKLF

LPDJHVDQGUHIHUHQFHVWRLOOHJDOFUDFNGHQVROGRQWKHVDPHVLWHV8SRQLQIRUPDWLRQDQG

EHOLHIWKH'HIHQGDQWVDFWLRQVWRXVH7$6(5ZHDSRQU\DVWKHLURZQRUEHORQJLQJWR7KH

1HZPDQ *URXS IDOVHO\ DQG IUDXGXOHQWO\ PLVUHSUHVHQWHG 3ODLQWLII RZQHUVKLS RI WKH

H[FOXVLYHULJKWWRXVHWKHUHJLVWHUHG7$6(5PDUNLQFRPPHUFHRQRULQFRQQHFWLRQZLWK

WKHJRRGVRUVHUYLFHVVSHFLILHGLQWKHUHJLVWUDWLRQ7,,VW\SHRIZHDSRQU\SHU86&

DQG See ([KLELWV DQG DQG VSHFLILFDOO\ ([KLELW WR VHH ZKHUH

'HIHQGDQWVPDUNHW7$6(5EUDQGHGZHDSRQU\DVPDGHE\DFRPSDQ\QDPHG7KH1HZPDQ

*URXSFRPSOHWHZLWKDQ1*PDUNRILWVRZQ

8SRQ LQIRUPDWLRQ DQG EHOLHI QRZ DOO RI WKH 'HIHQGDQWV KDYH VROG YLUWXDO

ZHDSRQU\IRUWKH6HFRQG/LIHVLPXODWLRQVXQGHUWKH7$6(5PDUNWKXVDVVRFLDWLQJWKHLU

YLUWXDOZHDSRQU\ZLWK3ODLQWLIIDVWKHLURZQYLDWKHLQWHUQHWGLUHFWO\LQWRWKLVGLVWULFW

7KLVPDNHVDOORIWKHVH'HIHQGDQWVLQGLUHFWFRPSHWLWLRQ ZLWK3ODLQWLIIDQG

WKHDFWLRQVRIWKH'HIHQGDQWVSUHYHQW7,,IURPH[SDQGLQJRQLWVVXFFHVVZLWKLWV7$6(5

EUDQGV

%\DVLPSOHLQWHUQHWVHDUFKRIWKH7$6(5PDUN7,,IRXQGWKHDGYHUWLVLQJRI

WKHVH'HIHQGDQWVUHVHOOHUVRI7$6(5EUDQGHGZHDSRQU\HYHQLIYLUWXDOEHLQJVROGYLDWKH

LQWHUQHWGLUHFWO\LQWRWKLVGLVWULFWDQGRUEHLQJVROGGLUHFWO\LQWRWKLVGLVWULFWDWWKHKDQGVRI


9/36

,???FRPSODLQWGRF

WKHVH'HIHQGDQWVVDOHRILQIULQJLQJ7$6(5ZHDSRQU\([KLELWLVDQH[DPSOHRIDUHVXOW

RIVXFKDVHDUFK

&2817,

,QIULQJHPHQWRI)HGHUDOO\5HJLVWHUHG7UDGHPDUN1R

3ODLQWLII 7,, KHUHE\ LQFRUSRUDWHV E\ UHIHUHQFH WKH DOOHJDWLRQV FRQWDLQHG LQ

SDUDJUDSKVRIWKLV&RPSODLQWWRWKHVDPHH[WHQWDVLIWKH\ZHUHIXOO\UHVWDWHGKHUHLQ

&RQWLQXRXVO\VLQFHLWVDYDLODEOHSULRULW\GDWHRI1RYHPEHU3ODLQWLII7,,

E\ DQG WKURXJK LWV SUHGHFHVVRUV LQ LQWHUHVW KDV XVHG WKH 7$6(5 PDUN WR LGHQWLI\ LWV

ZHDSRQ SURGXFWV DQG WR GLVWLQJXLVK WKRVH SURGXFWV PDGH DQG VROG E\ RWKHUV E\ DPRQJ

RWKHUWKLQJVSURPLQHQWO\GLVSOD\LQJWKH7$6(5PDUNRQSURGXFWVSURGXFWSDFNDJLQJDQG

RQWKHOLNH,QDGGLWLRQ3ODLQWLIIKDVSURPLQHQWO\GLVSOD\HGWKH7$6(5PDUNLQXVHZLWK

LWVJRRGVWKURXJKGLUHFWPDLODGYHUWLVLQJLQSHULRGLFDOVGLVWULEXWHGWKURXJKRXWWKH8QLWHG

6WDWHVDQGRQWKHLQWHUQHW

7KH LQIULQJLQJ 'HIHQGDQWV FROOHFWLYHO\ DQG HDFK RI WKHP KDYH LQIULQJHG

3ODLQWLIIV7$6(5PDUNLQLQWHUVWDWHFRPPHUFHE\YDULRXVDFWVLQFOXGLQJVHOOLQJRIIHULQJ

IRUVDOHDQGDGYHUWLVLQJZHDSRQSURGXFWVXQGHUWKHQDPHDQG7$6(5PDUN7KHXVHRI

WKHQDPHDQGPDUNE\WKH,QIULQJLQJ'HIHQGDQWVZDVZLWKRXWSHUPLVVLRQRUDXWKRULW\RI

3ODLQWLIIDQGWKHXVHE\'HIHQGDQWVLVOLNHO\WRFDXVHFRQIXVLRQWRFDXVHPLVWDNHDQGWR

GHFHLYH

7KH LQIULQJLQJ 'HIHQGDQWV FROOHFWLYH DQG LQGLYLGXDO DFWV RI WUDGHPDUN

LQIULQJHPHQW DQG WKHLU XQIDLU FRPSHWLWLRQ KDYH EHHQ FRPPLWWHG ZLWK HLWKHU WKH LQWHQW WR

FDXVH FRQIXVLRQ PLVWDNH DQG WR GHFHLYH RU D UHFNOHVV GLVUHJDUG WKDW FDXVHG FRQIXVLRQ

PLVWDNHDQGWRGHFHLYH

)RU WKH ORQJHVW WLPH 3ODLQWLII 7,, KDV JLYHQ QRWLFH WKDW WKH WUDGHPDUN LV

UHJLVWHUHG LQ WKH 8QLWHG 6WDWHV 3DWHQW DQG 7UDGHPDUN 2IILFH E\ GLVSOD\LQJ ZLWK WKH

WUDGHPDUNWKHOHWWHU5HQFORVHGZLWKLQDFLUFOHWKXV(DFKRIWKH'HIHQGDQWVNQRZRI

3ODLQWLIIVULJKWVXQGHU86&DQGVKRXOGKDYHNQRZQWRFHDVHDQGGHVLVWIURP


10/36

,???FRPSODLQWGRF

WKHLUDFWVRIWUDGHPDUNLQIULQJHPHQWEXWWKHVH'HIHQGDQWVVHOOLQJ7$6(5EUDQGHGSURGXFW

KDYHUHIXVHGWRFHDVHVXFKDFWV

%\ UHDVRQ RI 'HIHQGDQWV DFWV DV DOOHJHG KHUHLQ 3ODLQWLII 7,, KDV DQG ZLOO

VXIIHUGDPDJHWRLWVEXVLQHVVUHSXWDWLRQDQGJRRGZLOODQGZLOOVXIIHUWKHORVVRIVXEVWDQWLDO

GROODUVLQVDOHVDQGSURILWVWKDW3ODLQWLIIRULWVOLFHQVHHVIUDQFKLVHHVZRXOGKDYHPDGHEXW

IRU'HIHQGDQWVDFWV

7KHLQIULQJLQJ'HIHQGDQWVWKUHDWHQWRFRQWLQXHWRGRWKHDFWVFRPSODLQHGRI

KHUHLQ DQG XQOHVV UHVWUDLQHG DQG HQMRLQHG ZLOO FRQWLQXH WR GR VR DOO WR 3ODLQWLIIV

LUUHSDUDEOHGDPDJH,WZRXOGEHGLIILFXOWWRDVFHUWDLQWKHDPRXQWRIFRPSHQVDWLRQZKLFK

FRXOG DIIRUG 3ODLQWLII 7,, DGHTXDWH UHOLHI IRU VXFK FRQWLQXLQJ DFWV DQG D PXOWLSOLFLW\ RI

MXGLFLDO SURFHHGLQJV ZRXOG EH UHTXLUHG 3ODLQWLIIV UHPHG\ DW ODZ LV QRW DGHTXDWH WR

FRPSHQVDWHLWIRUWKHWKUHDWHQHGLQMXULHV

:+(5()25( 3ODLQWLII 7,, SUD\V IRU MXGJPHQW DJDLQVW DOO WKH 'HIHQGDQWV DQG

HDFKRIWKHPDVIROORZV

D 7KDW WKLV &RXUW JUDQW DQ LQMXQFWLRQ SXUVXDQW WR WKH SRZHUV JUDQWHG LW XQGHU

86&HQMRLQLQJDQGUHVWUDLQLQJ'HIHQGDQWVDQGWKHLUDJHQWVVHUYDQWVDQG

HPSOR\HHV IURP GLUHFWO\ RU LQGLUHFWO\ XVLQJ WKH QDPH 7$6(5 RU DQ\ RWKHU PDUN

ZRUG RU QDPH VLPLODU WR 3ODLQWLIIV 0DUN ZKLFK LV OLNHO\ WR FDXVH FRQIXVLRQ

PLVWDNHRUWRGHFHLYH

E 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHUWKDW

DOO ODEHOV SDFNDJHV DGYHUWLVHPHQWV PHGLD DQG SURGXFW DV ZHOO DV VLJQV SULQWV

SDFNDJHVZUDSSHUVUHFHSWDFOHVDQGDGYHUWLVHPHQWVLQWKHSRVVHVVLRQRUFRQWURORI

'HIHQGDQWV EHDULQJ WKH PDUN 7$6(5 DQG DOO SODWHV PROGV HOHFWURQLF ILOHV

DSSOLFDWLRQ VRIWZDUH PDWULFHV DQG RWKHU PHDQV RI PDNLQJ WKH VDPH VKDOO EH

GHOLYHUHGXSDQGGHVWUR\HG

F 7KDW'HIHQGDQWVEHUHTXLUHGWRDFFRXQWWR3ODLQWLIIIRUDQ\DQGDOOSURILWVGHULYHGE\

'HIHQGDQWVIURPWKHVDOHRIWKHLUJRRGVDQGIRUDOOGDPDJHVVXVWDLQHGE\3ODLQWLII

E\UHDVRQRIWKHDFWVRILQIULQJHPHQWDQGXQIDLUFRPSHWLWLRQFRPSODLQHGRIKHUHLQ


11/36

,???FRPSODLQWGRF

G )RU DQ DZDUG RI SXQLWLYH GDPDJHV DJDLQVW 'HIHQGDQWV LQ DQ DPRXQW VXIILFLHQW WR

SXQLVK'HIHQGDQWVIRUWKHLUZURQJIXOFRQGXFWDQGWRGHWHURWKHUVIURPHQJDJLQJLQ

VLPLODUFRQGXFWLQWKHIXWXUH

H )RU DQ DZDUG RI WKH FRVWV LQFXUUHG E\ 3ODLQWLII LQ SXUVXLQJ WKLV DFWLRQ LQFOXGLQJ

UHDVRQDEOHDWWRUQH\VIHHVDQG

I )RUDOORWKHUUHOLHIGHHPHGSURSHUE\WKH&RXUWXQGHUWKHFLUFXPVWDQFHV

&2817,,




3ODLQWLII 7,, DGRSWHG WKH $'9$1&(' 7$6(5 PDUN IRU LWV HOHFWURQLF

KDQGKHOGZHDSRQVLQ

7KH LQIULQJLQJ 'HIHQGDQWV DQG HDFK RI WKHP KDYH LQIULQJHG 3ODLQWLIIV

$'9$1&(' 7$6(5 PDUN LQ LQWHUVWDWH FRPPHUFH E\ YDULRXV DFWV LQFOXGLQJ VHOOLQJ

RIIHULQJIRUVDOHDQGDGYHUWLVLQJZHDSRQSURGXFWVXQGHUWKHQDPHXVLQJWKH7$6(5PDUN

7KH XVH RI WKH QDPH DQG 7$6(5 PDUN E\ WKH ,QIULQJLQJ 'HIHQGDQWV ZDV ZLWKRXW

SHUPLVVLRQRUDXWKRULW\RI3ODLQWLIIDQGWKHXVHE\'HIHQGDQWVLVOLNHO\WRFDXVHFRQIXVLRQ

WRFDXVHPLVWDNHDQGWRGHFHLYH

7KH LQIULQJLQJ 'HIHQGDQWVDFWV RIWUDGHPDUN LQIULQJHPHQW DQG WKHLUXQIDLU

FRPSHWLWLRQ KDYH EHHQ FRPPLWWHG ZLWK WKH LQWHQW WR FDXVH FRQIXVLRQ PLVWDNH DQG WR

GHFHLYH

3ODLQWLII 7,, KDV JLYHQ QRWLFH WKDW WKH $'9$1&(' 7$6(5 PDUN LV

UHJLVWHUHGLQWKH8QLWHG6WDWHV3DWHQWDQG7UDGHPDUN 2IILFH E\GLVSOD\LQJZLWKWKH PDUN

WKHOHWWHU5HQFORVHGZLWKLQDFLUFOHWKXV(DFKRIWKH'HIHQGDQWVNQRZRI3ODLQWLIIV

ULJKWVXQGHU86&DQGVKRXOGKDYHNQRZQWRFHDVHDQGGHVLVWIURPWKHLUDFWVRI

WUDGHPDUN LQIULQJHPHQW EXW WKHVH 'HIHQGDQWV VHOOLQJ 7$6(5 EUDQGHG SURGXFW KDYH

UHIXVHGWRFHDVHVXFKDFWV


12/36

,???FRPSODLQWGRF




IRU'HIHQGDQWVDFWV








HDFKRIWKHPDVIROORZV

D 7KDW WKLV &RXUW JUDQW DQ LQMXQFWLRQ SXUVXDQW WR WKH SRZHUV JUDQWHG LW XQGHU


HPSOR\HHVIURPGLUHFWO\RULQGLUHFWO\XVLQJWKHQDPH$'9$1&('7$6(5RUDQ\

RWKHU PDUN ZRUG RU QDPH VLPLODU WR 3ODLQWLIIV 0DUN ZKLFK LV OLNHO\ WR FDXVH

FRQIXVLRQPLVWDNHRUWRGHFHLYH

E 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHUWKDW






F 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHUWKDW

WKH 'HIHQGDQWV FHDVH XVH RI DOO '9'V VHUYHU DSSOLFDWLRQV GDWDEDVHV YLGHR

DSSOLFDWLRQ VRIWZDUH DQGRU ZHE VLWH VRIWZDUH FRQWDLQLQJ WKH 7$6(5 PDUNV DQG

WKDWDOOSRUWDOVEHDULQJWKH7$6(5PDUNEHFORVHG


13/36

,???FRPSODLQWGRF

G 7KDW'HIHQGDQWVEHUHTXLUHGWRDFFRXQWWR3ODLQWLIIIRUDQ\DQGDOOSURILWVGHULYHGE\



H )RU DQ DZDUG RI SXQLWLYH GDPDJHV DJDLQVW 'HIHQGDQWV LQ DQ DPRXQW VXIILFLHQW WR



I )RU DQ DZDUG RI WKH FRVWV LQFXUUHG E\ 3ODLQWLII LQ SXUVXLQJ WKLV DFWLRQ LQFOXGLQJ


J )RUDOORWKHUUHOLHIGHHPHGSURSHUE\WKH&RXUWXQGHUWKHFLUFXPVWDQFHV

&2817,,,




6LQFH REWDLQLQJ 7UDGHPDUN 5HJLVWUDWLRQ 1R 3ODLQWLII DOVR ZDV

DZDUGHG 7UDGHPDUN 5HJLVWUDWLRQ 1R IRU OHVVOHWKDO HOHFWURQLF ZHDSRQU\

QDPHO\ODXQFKHUVIRUZLUHWHWKHUHGGDUWVFDUWULGJHVFRPSULVLQJZLUHWHWKHUHGGDUWVODXQFK

LQFLGHQWGDWDUHFRUGHUVIRULQVWDOODWLRQDVDFRPSRQHQWSDUWRIWKHODXQFKHU$FRS\RIWKLV

UHJLVWUDWLRQLVDWWDFKHGDV([KLELW

7KH LQIULQJLQJ 'HIHQGDQWV DQG HDFK RI WKHP DUH LQIULQJLQJ 3ODLQWLIIV

7$6(5PDUNLQLQWHUVWDWHFRPPHUFHE\YDULRXVDFWVLQFOXGLQJVHOOLQJRIIHULQJIRUVDOH

DQGDGYHUWLVLQJZHDSRQSURGXFWVXQGHUWKHQDPHDQG7$6(5PDUN7KHXVHRIWKHQDPH

DQG0DUN E\WKH,QIULQJLQJ'HIHQGDQWV ZDVZLWKRXW SHUPLVVLRQ RU DXWKRULW\ RI 3ODLQWLII

DQGWKHXVHE\'HIHQGDQWVLVOLNHO\WRFDXVHFRQIXVLRQWRFDXVHPLVWDNHDQGWRGHFHLYH

7KH LQIULQJLQJ 'HIHQGDQWV DFWV RI WUDGHPDUN LQIULQJHPHQW DQG WKHLUXQIDLU

FRPSHWLWLRQ KDYH EHHQ FRPPLWWHG ZLWK WKH LQWHQW WR FDXVH FRQIXVLRQ PLVWDNH DQG WR

GHFHLYH

3ODLQWLII7,,KDVJLYHQQRWLFHWKDWWKHPDUNLVUHJLVWHUHGLQWKH8QLWHG6WDWHV

3DWHQW DQG 7UDGHPDUN 2IILFH E\ GLVSOD\LQJZLWK WKH PDUNWKH OHWWHU 5 HQFORVHGZLWKLQ D


14/36

,???FRPSODLQWGRF

FLUFOH WKXV (DFK RIWKH'HIHQGDQWV NQRZRI3ODLQWLIIV ULJKWV XQGHU 86&

DQGVKRXOGKDYHNQRZQWRFHDVHDQGGHVLVWIURPWKHLUDFWVRI WUDGHPDUNLQIULQJHPHQWEXW

WKHVH'HIHQGDQWVVHOOLQJ7$6(5EUDQGHGSURGXFWKDYHUHIXVHGWRFHDVHVXFKDFWV




IRU'HIHQGDQWVDFWV








HDFKRIWKHPDVIROORZV

K 7KDW WKLV &RXUW JUDQW DQ LQMXQFWLRQ SXUVXDQW WR WKH SRZHUV JUDQWHG LW XQGHU


HPSOR\HHV IURP GLUHFWO\ RU LQGLUHFWO\ XVLQJWKH QDPH 7$6(5 RU DQ\ RWKHU PDUN

ZRUG RU QDPH VLPLODU WR 3ODLQWLIIV 0DUN ZKLFK LV OLNHO\ WR FDXVH FRQIXVLRQ

PLVWDNHRUWRGHFHLYH

L 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHUWKDW






M 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHUWKDW



15/36

,???FRPSODLQWGRF



N 7KDW'HIHQGDQWVEHUHTXLUHGWRDFFRXQWWR3ODLQWLIIIRUDQ\DQGDOOSURILWVGHULYHGE\



O )RU DQ DZDUG RI SXQLWLYH GDPDJHV DJDLQVW 'HIHQGDQWV LQ DQ DPRXQW VXIILFLHQW WR



P )RU DQ DZDUG RI WKH FRVWV LQFXUUHG E\ 3ODLQWLII LQ SXUVXLQJ WKLV DFWLRQ LQFOXGLQJ


Q )RUDOORWKHUUHOLHIGHHPHGSURSHUE\WKH&RXUWXQGHUWKHFLUFXPVWDQFHV

&2817,9

&RPPRQ/DZ7UDGHPDUN,QIULQJHPHQW

3ODLQWLIIKHUHE\LQFRUSRUDWHVE\UHIHUHQFHWKHDOOHJDWLRQVDERYHLQSDUDJUDSKV

WRWKHVDPHH[WHQWDVLIWKH\ZHUHIXOO\UHVWDWHGKHUHLQ

7,,ZDVWKHILUVWWRXVHWRXVHWKHPDUN7$6(5LQFRPPHUFHZLWKZHDSRQU\

DVRI1RYHPEHU

7,,KDVFRQWLQXRXVO\XVHGWKHPDUNV7$6(5DQGRU$'9$1&('7$6(5LQ

FRPPHUFHZLWKDWOHDVWHOHFWURQLFZHDSRQU\VLQFH

7,, KDV FRQWLQXRXVO\ XVHG WKH PRGHO QXPEHUV 0 DQG ; DV PDUNV LQ

FRQQHFWLRQ ZLWK 7$6(5 DQG $'9$1&(' 7$6(5 SURGXFWV LQ FRPPHUFH ZLWK DW OHDVW

HOHFWURQLFZHDSRQU\IRUPDQ\\HDUV

7KH 'HIHQGDQWVKDVDGYHUWLVHGWKHLUYLUWXDOZHDSRQU\DQGRIIHUHGVDPH IRU

VDOHXQGHUWKHPDUN7$6(5RYHUWKHZHEDVLIWKH\RSHUDWHLQWKHVDPHJHRJUDSKLFDUHDDV

3ODLQWLII IRU YLUWXDOO\ LGHQWLFDO JRRGV WR 3ODLQWLIIV XQGHU WKH 7$6(5 EUDQG QDPH DQG

PDUNDVZHOODVXVLQJWKHPRGHOQXPEHUV0DQG;


16/36

,???FRPSODLQWGRF

:LWK3ODLQWLIIXVLQJ7$6(5DQG$'9$1&('7$6(5PDUNVDQG0DQG

; PRGHO GHVLJQDWLRQV IRU LWV JRRGV DQG VHUYLFHV DQG 'HIHQGDQWV XVLQJ 7$6(5 RU

DQRWKHU GHULYDWLRQ WKHUHRI RU PRGHO GHVLJQDWLRQV 0 DQG ; IRU YLUWXDOO\ LGHQWLFDO

JRRGVDQGVHUYLFHVFRQIXVLRQDPRQJFXVWRPHUVDQGSRWHQWLDOFXVWRPHUVLVOLNHO\

$OO XVH RIWKH7$6(5 0DQGRU ; PDUNVE\ 'HIHQGDQWVLV FRPPRQ

ODZWUDGHPDUNLQIULQJHPHQWE\WKHPDQGDQ\FRPSDQ\RUDQ\RQHLQSULYLW\ZLWKWKHP

7KH JRRGV DQG VHUYLFHV WKH 'HIHQGDQWV XVH 3ODLQWLIIV 7$6(5 0 DQG

; PDUNV WKHUHZLWK DUH VLPLODU DQGRU FORVHO\ UHODWHG WR WKH JRRGV DQG VHUYLFHV 7,,

SURYLGHVLQFRQQHFWLRQZLWKLWV7$6(5DQGRWKHUPDUNVDQGLWVWUDGHQDPH

7KH JRRGV DQG VHUYLFHV WKH 'HIHQGDQWV XVH 3ODLQWLIIV 7$6(5 0 DQG

; PDUNV WKHUHZLWK DUH OLNHO\ WREHVROG WR WKH VDPH FXVWRPHUV DQG WKURXJK WKH VDPH

FKDQQHOVRIWUDGHLQZKLFK7$6(5SURYLGHVLWVJRRGVDQGVHUYLFHVZLWKLWV7$6(50

DQG;PDUNVDQGWUDGHQDPHVDV7,,VHOOVLWVZDUHVYLDZZZWDVHUFRP

7KH'HIHQGDQWV7$6(5PDUNZKROO\LQFRUSRUDWHV7,,V7$6(50DQG

;PDUNVDQGWUDGHQDPHVDQGWKH'HIHQGDQWVPDUNVDUHVXEVWDQWLDOO\DQGFRQIXVLQJO\

VLPLODUWR7,,V7$6(5PDUNDQGWUDGHQDPH


HDFKRIWKHPDVIROORZV

D (QMRLQLQJ'HIHQGDQWVIURPXWLOL]LQJWKHFRPPRQODZWUDGHPDUNV7$6(5 DQGRU

DQ\PDUNVFRQIXVLQJO\VLPLODUWKHUHWR

E (QMRLQLQJ 'HIHQGDQWV IURP XWLOL]LQJ WKH FRPPRQ ODZ WUDGHPDUNV 0 ;

DQGRUDQ\PDUNVFRQIXVLQJO\VLPLODUWKHUHWR

F 5HTXLULQJ 'HIHQGDQWV WR VXUUHQGHU IRU GHVWUXFWLRQ DOO SURGXFW OHWWHUKHDG

DGYHUWLVHPHQWV DQG DQ\ RWKHU DUWLFOHV VLJQV EURFKXUHV FDWDORJXHV DQG DOO RWKHU

PDWHULDOSURPRWLQJDQGOHDGLQJWRLQIULQJHPHQWRI3ODLQWLIIV7$6(5WUDGHPDUN

G 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHUWKDW



17/36

,???FRPSODLQWGRF



H 2UGHULQJWKDW 'HIHQGDQWVSD\ WKH GDPDJHVVXVWDLQHGE\3ODLQWLIIDVD UHVXOW RIWKH

DFWLRQVGHVFULEHGKHUHLQDQG

I 7RJHWKHU ZLWK VXFK RWKHU DQG IXUWKHU UHOLHI DV WR WKH &RXUW PD\ VHHP MXVW DQG

SURSHU

&28179

8QIDLU&RPSHWLWLRQ'LOXWLRQRI7UDGHPDUN5LJKWV



7KHDFWVRIWKH'HIHQGDQWVFRQVWLWXWHXQIDLUFRPSHWLWLRQDQGDQLQIULQJHPHQW

RI3ODLQWLIIVFRPPRQODZULJKWVLQWKH7$6(50DQG;PDUNV

&RQWLQXRXVO\ VLQFH DW OHDVW 3ODLQWLII KDV XVHG WKH 7$6(5 DQG

$'9$1&('7$6(5PDUNVDQG0DQG;PRGHOQXPEHUVWRLGHQWLI\LWVJRRGVDQG

VHUYLFHVDQGWRGLVWLQJXLVKWKHPIURPWKRVHJRRGVDQGVHUYLFHVRIIHUHGDQGVROGE\RWKHUV

LQDPRQJRWKHUWKLQJVDGYHUWLVLQJGLVWULEXWHGWKURXJKRXWWKH8QLWHG6WDWHVDQGLQIO\HUV

DQGEURFKXUHVGLVWULEXWHGWKURXJKRXWWKH8QLWHG6WDWHVRQORFDWLRQGLVSOD\VLQGLUHFWPDLO

DGYHUWLVLQJRQWHOHYLVLRQDQGRQWKHLQWHUQHWWKURXJKRXWWKH8QLWHG6WDWHV

3ODLQWLIIV JRRGVDQG VHUYLFHVDGYHUWLVLQJ KDYHEHHQ RIIHUHG DQG GLVWULEXWHG

LQ WKH WUDGH DUHD ZKHUH 'HIHQGDQWV DUH GRLQJ EXVLQHVV DQG KDYH QRZ FURVVHG RYHU WR

FKDOOHQJH 3ODLQWLIIV XVH $V D UHVXOW RI WKH VDOHV DQG DGYHUWLVLQJ E\ 3ODLQWLIIXQGHUWKH

7$6(5DQG$'9$1&('7$6(5PDUNVDQGWKHPRGHOQXPEHUV0DQG;WKHPDUNV

KDVGHYHORSHGDQGQRZKDVDVHFRQGDU\DQGGLVWLQFWLYHWUDGHPDUNPHDQLQJWRFXVWRPHUVLQ

3ODLQWLIIVWUDGHDUHD

$VDUHVXOWRIWKHDVVRFLDWLRQE\FXVWRPHUVRIHDFK'HIHQGDQWV7$6(5PDUN

DQG WKH PRGHO QXPEHUV 0 DQG ; IRUEUDQGHGJRRGV DQG VHUYLFHVZLWKWKH3ODLQWLII

'HIHQGDQWVXVHRIWKH7$6(5DQG$'9$1&('7$6(5PDUNVDQGWKHPRGHOQXPEHUV


18/36

,???FRPSODLQWGRF

0 DQG ; RU DQ\ RI WKHVH LQ D QDPH LV OLNHO\ WR FDXVH FRQIXVLRQ RQ WKH SDUW RI

3ODLQWLIIVDQG'HIHQGDQWVFXVWRPHUV

'HIHQGDQWV KDYH LQIULQJHG 3ODLQWLIIV ULJKWV LQ WKH 7$6(5 $'9$1&('

7$6(50DQG;PDUNVDVDOOHJHGKHUHLQZLWKWKHLQWHQWWRGHFHLYHWKHSXEOLFLQWR

EHOLHYLQJWKDWVXFKJRRGVDQGVHUYLFHVRIIHUHGE\'HIHQGDQWVDUHPDGHE\DSSURYHGE\

VSRQVRUHGE\RUDIILOLDWHGZLWKWKHRULJLQDWRURIWKHPDUNV7,,'HIHQGDQWVDFWVDVDOOHJHG

KHUHLQZHUHFRPPLWWHGZLWKWKHLQWHQWWRSDVVRIILWVVHUYLFHVDVWKHVHUYLFHVRI3ODLQWLIIDQG

ZLWKWKHLQWHQWWRGHFHLYHDQGGHIUDXGWKHSXEOLF

%\UHDVRQRI'HIHQGDQWVDFWVDVDOOHJHGKHUHLQ3ODLQWLIIKDVDQGZLOOVXIIHU

GDPDJH WRLWV EXVLQHVVUHSXWDWLRQ DQG JRRGZLOODQG LQWKH ORVV RIVDOHV DQG SURILWV WKDW

3ODLQWLII ZRXOG KDYH PDGH EXW IRU 'HIHQGDQWV DFWV %\ UHDVRQ RI 'HIHQGDQWV DFWV DV

DOOHJHG KHUHLQ 3ODLQWLIIV ULJKWV LQ WKH 7$6(5 $'9$1&(' 7$6(5 0 DQG ;

PDUNVDQG7,,V7$6(5WUDGHQDPHZLOODOVREHGLOXWHG

7,,VPDUNVDQGWUDGHQDPHDUHZLGHO\UHFRJQL]HGE\WKHJHQHUDOFRQVXPLQJ

SXEOLFRIWKH8QLWHG6WDWHVDVDGHVLJQDWLRQRIVRXUFHRI7,,VJRRGVDQGVHUYLFHV

7,,V7$6(5PDUNVDQGWUDGHQDPHDUHIDPRXVDVWKHWHUPLVGHILQHGLQ

86&F

7$6(5HOHFWURQLFZHDSRQU\LVVROGWRHQIRUFHPHQWDJHQFLHVDQGFRQVXPHUV

DWODUJH7KHPDUN7$6(5LVZHOONQRZQE\WKHSXEOLFIRUSURPRWLQJODZDQGRUGHUYLD

SROLFHZRUNDQGIRUFLWL]HQVHOIGHIHQVH

'HIHQGDQWVXVH RIWKH 7$6(5PDUN LVOLNHO\WRFDXVH GLOXWLRQE\ EOXUULQJ

DQGLPSDLUWKHGLVWLQFWLYHQHVVRI7,,VIDPRXV7$6(5PDUNZKHUHE\7,,ZLOOEHGDPDJHG

E\WKH'HIHQGDQWVXVHRIWKH7$6(5PDUN

'HIHQGDQWV XVH RI WKH 7$6(5 PDUN LV OLNHO\ WR FDXVH GLOXWLRQ E\

WDUQLVKPHQW DQG ZLOO GDPDJH WKH UHSXWDWLRQ RI 7,,VIDPRXV 7$6(5 PDUN ZKHUHE\ 7,,

ZLOOEHGDPDJHGE\WKH'HIHQGDQWVXVHRIWKH7$6(5PDUN

$V([KLELWVKRZV'HIHQGDQWVXVHRIWKH7$6(5PDUNDVVRFLDWHVWKHPDUN

ZLWKDFRPSDQ\QDPHG7KH1HZPDQ*URXSWKXVGDPDJLQJ7,,VEXVLQHVVUHSXWDWLRQDQG


19/36

,???FRPSODLQWGRF

JRRGZLOOZLOOUHVXOWLQWKHORVVRIVDOHVDQGSURILWVWKDW3ODLQWLIIZRXOGKDYHPDGHEXWIRU

'HIHQGDQWVDFWV

'HIHQGDQWV WKUHDWHQ WR FRQWLQXH WR GR WKH DFWV FRPSODLQHG RI KHUHLQ DQG

XQOHVVUHVWUDLQHGDQGHQMRLQHGZLOOFRQWLQXHWRGRVRDOOWR3ODLQWLIIVLUUHSDUDEOHGDPDJH

,W ZRXOGEH GLIILFXOW WRDVFHUWDLQ WKH DPRXQW RI FRPSHQVDWLRQ WKDW FRXOG DIIRUG 3ODLQWLII

DGHTXDWHUHOLHIIRUVXFKFRQWLQXLQJDFWVDQGWKHEUHDFKPDGHE\DOORIWKH'HIHQGDQWVDQG

D PXOWLSOLFLW\ RI MXGLFLDOSURFHHGLQJV ZRXOG EHUHTXLUHG3ODLQWLIIV UHPHG\ DWODZLVQRW

DGHTXDWHWRFRPSHQVDWHLWIRUWKHWKUHDWHQHGLQMXULHV

:+(5()25(3ODLQWLII7,,SUD\VIRUMXGJPHQWDJDLQVWDOORIWKH'HIHQGDQWVDQG

HDFKRIWKHPDVIROORZV

D 7KDWWKLV&RXUWJUDQWDQLQMXQFWLRQHQMRLQLQJDQGUHVWUDLQLQJ'HIHQGDQWVDQGWKHLU

DJHQWV VHUYDQWV DQG HPSOR\HHV IURP GLUHFWO\ RU LQGLUHFWO\ XVLQJ WKH ZRUG

7$6(5RUDQ\RWKHUPDUNZRUGRUQDPHVLPLODUWR7,,V7$6(5$'9$1&('

7$6(5 0 DQG ; PDUNV ZKLFK LV OLNHO\ WR FDXVH FRQIXVLRQ DQG

FRQWLQXLQJDQ\DQGDOODFWVRIXQIDLUFRPSHWLWLRQDVKHUHLQDOOHJHG

E 7KDWWKLV&RXUWJUDQWDQLQMXQFWLRQHQMRLQLQJDQGUHVWUDLQLQJ'HIHQGDQWVDQGWKHLU

DJHQWV VHUYDQWV DQG HPSOR\HHV IURP GLUHFWO\ RU LQGLUHFWO\ XVLQJ WKH ZRUG

7$6(5RUDQ\RWKHUPDUNZRUGRUQDPHVLPLODUWR7,,V7$6(5PDUNRULWV

0DQG;PDUNVQHDURUZLWKSRUQRJUDSKLFOHZGRUODVFLYLRXVLPDJHU\RU

QHDURUZLWKDQ\XQODZIXOGUXJUHODWHGPDWHULDO

F 7KDWWKLV&RXUWSXUVXDQWWRWKHSRZHUJUDQWHGLWXQGHU86&RUGHU

WKDWWKH'HIHQGDQWVFHDVHXVHRIDOO'9'VVHUYHUDSSOLFDWLRQVGDWDEDVHVYLGHR

DSSOLFDWLRQVRIWZDUHDQGRUZHEVLWHVRIWZDUHFRQWDLQLQJWKH7$6(5PDUNVDQG


G 7KDW'HIHQGDQWVEHUHTXLUHGWRDFFRXQWWR3ODLQWLIIIRUDQ\DQGDOOSURILWVGHULYHG

E\ 'HIHQGDQWV IURP WKH VDOH RI LWV VREUDQGHG JRRGV DQG VHUYLFHV DQG IRU DOO

GDPDJHVVXVWDLQHGE\3ODLQWLIIE\UHDVRQRIWKHDFWVRILQIULQJHPHQWDQGXQIDLU

FRPSHWLWLRQFRPSODLQHGRIKHUHLQ


20/36

,???FRPSODLQWGRF

H )RUDQDZDUGRISXQLWLYHGDPDJHVLQDQ DPRXQWVXIILFLHQWWRSXQLVK'HIHQGDQWV

IRUWKHLUZURQJIXOFRQGXFWDQGWRGHWHURWKHUVIURPHQJDJLQJLQVLPLODUFRQGXFWLQ

WKHIXWXUH

I )RUDQ DZDUGRIWKHFRVWVLQFXUUHGE\3ODLQWLIILQSXUVXLQJWKLVDFWLRQLQFOXGLQJ


J )RUDOORWKHUUHOLHIGHHPHGSURSHUE\WKH&RXUWXQGHUWKHFLUFXPVWDQFHV

&28179,

8QIDLU&RPSHWLWLRQ)DOVH'HVLJQDWLRQRI2ULJLQZLWK5HJDUGWR3URGXFW'HVLJQV



3ODLQWLII 7,, LV LQ WKH EXVLQHVV RI GHYHORSLQJ PDQXIDFWXULQJ DQG VHOOLQJ

ZHDSRQVRIWKHW\SHGLVFORVHGLQWKHDIRUHVDLGGHVLJQSDWHQWV

3ODLQWLIIKDVRYHUDSHULRGRIPDQ\\HDUVH[SHQGHGWLPHPRQH\DQGHIIRUW

LQSURPRWLQJZHDSRQVXQGHULWVSDWHQWHGGHVLJQ

8SRQ LQIRUPDWLRQ DQG EHOLHI SXUFKDVHUV DQG SRWHQWLDO SXUFKDVHUV RI WKHVH

ZHDSRQVUHFRJQL]HVDLGVKDSHVDQGIHDWXUHVDVWKRVHRULJLQDWLQJIURPDQGPDQXIDFWXUHGE\

3ODLQWLII

$V D UHVXOW RI VDLG DVVRFLDWLRQ E\ SXUFKDVHUV DQG SRWHQWLDO SXUFKDVHUV WKH

DSSHDUDQFH RI 3ODLQWLIIV ZHDSRQV UHSUHVHQWV EXVLQHVV SURSHUW\ DQG JRRGZLOO RZQHG E\

3ODLQWLII

8SRQ LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV IRU D WLPH KDYH FRSLHG WKH

DSSHDUDQFH RI 3ODLQWLIIV ZHDSRQU\ DQG KDYH VROG FRSLHV RI VXFK ZHDSRQU\ ZLWKLQ WKLV

MXULVGLFWLRQDQGHOVHZKHUHIRUWKHH[SUHVVSXUSRVHRISDVVLQJRIIWKHVHZHDSRQVDVWKRVHRI

3ODLQWLIIXQGHULWVH[FOXVLYHPDUNV

7KDWWKHVH DFWVRI XQIDLUFRPSHWLWLRQRI'HIHQGDQWVIDOOZLWKLQWKHPHDQLQJ

RI 86& D ZHUH GRQH WR GLYHUW DQG VHFXUH WR 'HIHQGDQWV WKH SURILWV DULVLQJ


21/36


22/36

,???FRPSODLQWGRF

&28179,,

9LRODWLRQRI/DQKDP$FW

3ODLQWLII KHUHE\ LQFRUSRUDWHV E\ UHIHUHQFH WKH DOOHJDWLRQV DERYH LQ

SDUDJUDSKVWRWKHVDPHH[WHQWDVLIWKH\ZHUHIXOO\UHVWDWHGKHUHLQ

'HIHQGDQWV KDYH FRQWLQXHG WR RIIHU WKHLU LGHQWLFDO RIIHULQJV RI YLUWXDO

SURGXFWV DQG VHUYLFHV WR HQWHU LQWR FRPPHUFH ZLWK WKH GHVLJQDWLRQV DQG UHSUHVHQWDWLRQV

7$6(50DQG;FRQQHFWHGWKHUHZLWK'HIHQGDQWVFRQWLQXHGXVHRI7,,V7$6(5

0DQG;PDUNVDUHIDOVHGHVLJQDWLRQVRIRULJLQZKLFKDUHOLNHO\WRFDXVHFRQIXVLRQ

WR FDXVH PLVWDNH DQG WR GHFHLYH DV WR WKH DIILOLDWLRQ FRQQHFWLRQ RU DVVRFLDWLRQ RI

'HIHQGDQWVZLWK3ODLQWLII7$6(50DQG;PDUNVDQGDVWRWKHRULJLQVSRQVRUVKLS

RUDSSURYDORIVXFKSURGXFWVDQGVHUYLFHVE\3ODLQWLII

7KHVHDFWV DUH LQYLRODWLRQRI 86& DLQWKDW'HIHQGDQWVKDYH

XVHG LQ FRQQHFWLRQ ZLWK JRRGV DQGRU VHUYLFHV D IDOVH GHVLJQDWLRQ RI RULJLQ D IDOVH RU

PLVOHDGLQJGHVFULSWLRQDQGUHSUHVHQWDWLRQVRIIDFWZKLFKDUHOLNHO\WRFDXVHFRQIXVLRQDQG

WR FDXVH PLVWDNH DQG WR GHFHLYH DV WR WKH DIILOLDWLRQ FRQQHFWLRQ RU DVVRFLDWLRQ RI

'HIHQGDQWVZLWK3ODLQWLIIDQGDVWRWKHRULJLQVSRQVRUVKLSDQGDSSURYDORI'HIHQGDQWV

VHUYLFHVDQGFRPPHUFLDODFWLYLWLHVE\3ODLQWLII

%\ UHDVRQ RI 'HIHQGDQWV DFWV DV DOOHJHG KHUHLQ 7,, WKH RULJLQDO DQG

FRQWLQXRXVXVHURIWKH7$6(50DQG;PDUNVKDVDQGZLOOVXIIHUGDPDJHWRLWV

EXVLQHVV UHSXWDWLRQ DQG JRRGZLOO DQG WKH ORVV RI IHHV VDOHV DQG SURILWV 3ODLQWLII ZRXOG

KDYHPDGHEXWIRU'HIHQGDQWVDFWV

:+(5()25(3ODLQWLII7,,SUD\VIRUMXGJPHQWDJDLQVWDOORIWKH'HIHQGDQWVDQG

HDFKRIWKHPDVIROORZV

D )RU DQ DZDUG RI WUHEOH WKH DPRXQW RI DFWXDO GDPDJHV VXIIHUHG E\ 3ODLQWLII

SXUVXDQWWR6HFWLRQDRIWKH/DQKDP$FW

E )RUDQ DZDUGRISXQLWLYHGDPDJHVLQDQ DPRXQWVXIILFLHQWWRSXQLVK'HIHQGDQWV

IRUWKHLUZURQJIXOFRQGXFWDQGWRGHWHURWKHUVIURPHQJDJLQJLQVLPLODUFRQGXFWLQ

WKHIXWXUH


23/36

,???FRPSODLQWGRF

F )RU DQDZDUG RIWKHFRVWV LQFXUUHGLQSXUVXLQJWKLVDFWLRQ LQFOXGLQJ UHDVRQDEOH

DWWRUQH\VIHHVDQG

G )RUDOORWKHUUHOLHIGHHPHGSURSHUE\WKH&RXUWXQGHUWKHFLUFXPVWDQFHV

&28179,,,

$UL]RQD&RPPRQ/DZ7UDGHPDUN,QIULQJHPHQW



'HIHQGDQWVXVHRIWKH7$6(5PDUNLVZLWKRXW3ODLQWLIIVFRQVHQW

'HIHQGDQWV XVH RI WKH 0 RU ; PRGHO QXPEHU PDUNV LV ZLWKRXW

3ODLQWLIIVFRQVHQW

7KHVH'HIHQGDQWVKDYHFRQVWUXFWLYHQRWLFHSHU86&DGYLVLQJDOO

'HIHQGDQWVWKDW3ODLQWLIIRZQVWKH7$6(5PDUNVPDNLQJDOORIWKHPLQIULQJLQJ7KHVH

'HIHQGDQWVKDYHUHIXVHGWRFKDQJHWKH7$6(50DQG;PDUNVRUWRVWRSDGYHUWLVLQJ

ZLWK3ODLQWLIIVQDPHRQLWDYDLODEOHLQWKLVGLVWULFW

'HIHQGDQWVXVHRIWKHPDUNLQWKLVVWDWHZLWKRXW3ODLQWLIIVFRQVHQWIRUWKH

LGHQWLFDOSURGXFWVLVOLNHO\WRFDXVHFRQIXVLRQFDXVHDPLVWDNHRUGHFHLYHDSHUVRQDVWR

HLWKHU WKHDIILOLDWLRQ FRQQHFWLRQ RU DVVRFLDWLRQ RI 3ODLQWLIIZLWKWKH'HIHQGDQWV DQGWKH

RULJLQ VSRQVRUVKLS RU DSSURYDO RI 'HIHQGDQWV VHUYLFHV RU FRPPHUFLDO DFWLYLWLHV E\

3ODLQWLIIDOOLQYLRODWLRQRI$UL]RQD5HYLVHG6WDWXWHVDQG

'HIHQGDQWV XVLQJ 3ODLQWLIIV UHJLVWHUHG PDUN ZLWK D GHVFULSWLYH PRGLILHU RU

DQ\RWKHUPRGLILHUVXFKDV/RQJ5DQJH7DVHU*XQRUORQJUDQJHDXWKHQWLFWDVHUJXQ

see ([KLELW SDJH LQ WKLV VWDWH ZLWKRXW 3ODLQWLIIV FRQVHQW LV OLNHO\ WR FDXVH

FRQIXVLRQFDXVHDPLVWDNHRUGHFHLYHDSHUVRQDVWRHLWKHUWKHDIILOLDWLRQFRQQHFWLRQRU

DVVRFLDWLRQ RI 3ODLQWLII ZLWK WKH 'HIHQGDQWV DQG WKH RULJLQ VSRQVRUVKLS RU DSSURYDO RI

'HIHQGDQWV VHUYLFHV RU FRPPHUFLDO DFWLYLWLHV E\ 3ODLQWLII DOO LQ YLRODWLRQ RI $UL]RQD

5HYLVHG6WDWXWHV


24/36

,???FRPSODLQWGRF

'HIHQGDQWV XVLQJ 3ODLQWLIIV FRPPRQ ODZ PDUNV 0 DQGRU ; LQ WKLV

VWDWHZLWKRXW3ODLQWLIIVFRQVHQWLVOLNHO\WRFDXVHFRQIXVLRQFDXVHDPLVWDNHRUGHFHLYHD

SHUVRQ DV WR HLWKHU WKH DIILOLDWLRQ FRQQHFWLRQ RU DVVRFLDWLRQ RI 3ODLQWLII ZLWK WKH

'HIHQGDQWVDQGWKHRULJLQVSRQVRUVKLSRUDSSURYDORI'HIHQGDQWVVHUYLFHVRUFRPPHUFLDO

DFWLYLWLHVE\3ODLQWLIIDOOLQYLRODWLRQRI$UL]RQD5HYLVHG6WDWXWHV

'HIHQGDQWV FRQWLQXHG XVH RI 3ODLQWLIIV PDUNV ZDV LQWHQWLRQDO DQG ZDV

WKHUHIRUHZLOOIXO

'HIHQGDQWV LJQRULQJ WKH ZDUQLQJV RI WKHLU FRQVWUXFWLYH QRWLFH DJDLQVW

FRQWLQXLQJWRXVH7$6(5LQLWVQDPHVKRZVWKDW'HIHQGDQWVFRQGXFWZDVLQWHQWLRQDODQG

PDOLFLRXV

'HIHQGDQWV /5, /LQGHQ /DEV DQG 3KLOLS 5RVHGDOH 0DUN .LQJGRQ )UDQN

$PEURVH 6DQG\ *RXOG 7RP +DOH +RZDUG /RRN %ULDQ 0LFKRQ -RH 0LOOHU 0DUW\

5REHUWV&\Q6N\EHUJ-XG\:DGH*LQVX


25/36

,???FRPSODLQWGRF

H 'HIHQGDQWV DUH RUGHUHG WR SD\ GDPDJHV WR 3ODLQWLII IRU WKH WUDGHPDUN

LQIULQJHPHQWFRPPLWWHGKHUHLQ

I 'HIHQGDQWV DUH RUGHUHG WR GHOLYHU XS WR WKLV &RXUW DQ\ UHSURGXFWLRQV FRSLHV

FRXQWHUIHLWVRUFRORUDEOHLPLWDWLRQRIWKHUHJLVWHUHGPDUNIRUGHVWUXFWLRQ

J 'HIHQGDQWV DUH RUGHUHG WR SD\ HOHYDWHG DQGRU SXQLWLYH GDPDJHV WR 3ODLQWLII

EHFDXVHWKHOLVWHG'HIHQGDQWVFRQGXFWZDVPDOLFLRXVDQGLQWHQWLRQDO

&2817,;

9LRODWLRQRI&LYLO5,&26XE6HFWLRQ%

3ODLQWLIIKHUHE\LQFRUSRUDWHVE\UHIHUHQFHDOOHJDWLRQVLQSDUDJUDSKVRI

WKLV)LUVW$PHQGHG&RPSODLQWWRWKHH[WHQWDVLIWKH\ZHUHIXOO\UHVWDWHGKHUHLQ

7LWOH86&EVWDWHVE,WVKDOOEHXQODZIXOIRUDQ\SHUVRQWKURXJKDSDWWHUQRIUDFNHWHHULQJDFWLYLW\RUWKURXJK FROOHFWLRQ RI DQ XQODZIXO GHEW WR DFTXLUH RU PDLQWDLQ GLUHFWO\ RULQGLUHFWO\DQ\LQWHUHVWLQRUFRQWURORIDQ\HQWHUSULVHZKLFKLVHQJDJHGLQRUWKHDFWLYLWLHVRIZKLFKDIIHFWLQWHUVWDWHRUIRUHLJQFRPPHUFH

7LWOH86&GVWDWHVG,WVKDOOEHXQODZIXOIRUDQ\SHUVRQWRFRQVSLUHWRYLRODWHDQ\RIWKHSURYLVLRQVRIVXEVHFWLRQDERUFRIWKLVVHFWLRQ

2QLQIRUPDWLRQDQG EHOLHI'HIHQGDQWVKDYHFROOHFWHG PRQLHVIURP VDOHVRI

LWV JRRGV DQG VHUYLFHV IUDXGXOHQWO\ LQ FRQQHFWLRQ ZLWK WKH 7$6(5 PDUN DQG 7$6(5

HOHFWURQLFZHDSRQGHVLJQV

'HIHQGDQWVKDYHIUDXGXOHQWO\PLVUHSUHVHQWHGLQFRPPHUFHWKDW7,,GRHVQRW

KROGH[FOXVLYHULJKWVWRXVHWKHUHJLVWHUHGPDUNLQFRPPHUFHRQRULQFRQQHFWLRQZLWKWKH

JRRGVRUVHUYLFHVVSHFLILHGLQWKHUHJLVWUDWLRQXQGHU86&WRFROOHFWPRQLHV

IURPVDOHVRILWVJRRGVDQGVHUYLFHV

2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV E\ DQG WKURXJK WKHLU FRQFHUWHGFRQGXFWKDYHYLRODWHGERWKEDQGGRI7LWOH'HIHQGDQWVKDYHRSHUDWHG/5,

/LQGHQ/DEV;675((76/DQG9LUWXDWUDGH//&LQFRQFHUWZLWK/5,DQG/LQGHQ/DEV

DVDQHQWHUSULVHLQYLRODWLRQRI WKH5DFNHWHHU,QIOXHQFHGDQG&RUUXSW2UJDQL]DWLRQV$FW

5,&286&F


26/36

,???FRPSODLQWGRF

&2817;

9LRODWLRQRI&LYLO5,&26XE6HFWLRQ&


WKLV)LUVW$PHQGHG&RPSODLQWWRWKHH[WHQWDVLIWKH\ZHUHIXOO\UHVWDWHGKHUHLQ

7LWOH86&FVWDWHVF ,W VKDOO EH XQODZIXO IRU DQ\ SHUVRQ HPSOR\HG E\ RU DVVRFLDWHG ZLWK DQ\HQWHUSULVH HQJDJHG LQ RU WKH DFWLYLWLHV RI ZKLFK DIIHFW LQWHUVWDWH RU IRUHLJQFRPPHUFHWRFRQGXFWRUSDUWLFLSDWHGLUHFWO\RULQGLUHFWO\LQWKHFRQGXFWRIVXFKHQWHUSULVHV DIIDLUV WKURXJK D SDWWHUQ RI UDFNHWHHULQJ DFWLYLW\ RU FROOHFWLRQ RIXQODZIXOGHEW

7LWOH86&GVWDWHVG,WVKDOOEHXQODZIXOIRUDQ\SHUVRQWRFRQVSLUHWRYLRODWHDQ\RIWKHSURYLVLRQVRIVXEVHFWLRQDERUFRIWKLVVHFWLRQ

2QLQIRUPDWLRQDQG EHOLHI'HIHQGDQWVKDYHFROOHFWHG PRQLHVIURP VDOHVRI

LWV JRRGV DQG VHUYLFHV IUDXGXOHQWO\ LQ FRQQHFWLRQ ZLWK WKH 7$6(5 PDUN DQG 7$6(5

HOHFWURQLFZHDSRQGHVLJQV

'HIHQGDQWVKDYHIUDXGXOHQWO\PLVUHSUHVHQWHGLQFRPPHUFHWKDW7,,GRHVQRW

KROGH[FOXVLYHULJKWVWRXVHWKHUHJLVWHUHGPDUNLQFRPPHUFHRQRULQFRQQHFWLRQZLWKWKH

JRRGVRUVHUYLFHVVSHFLILHGLQWKHUHJLVWUDWLRQXQGHU86&WRFROOHFWPRQLHV

IURPVDOHVRILWVJRRGVDQGVHUYLFHV 2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV E\ DQG WKURXJK WKHLU FRQFHUWHG

FRQGXFWKDYHYLRODWHGERWKFDQGGRI7LWOH

:+(5()25(3ODLQWLIISUD\VIRUMXGJPHQWDJDLQVWWKH'HIHQGDQWVDVIROORZV

D 'HFODULQJWKDWDQ\RI DOORIWKH'HIHQGDQWVYLRODWHGVXEVHFWLRQDERU

FRI7LWOH86&

E &LYLO'DPDJHVIRUDQ\RUDOORIWKH'HIHQGDQWVWKDWYLRODWHGVXEVHFWLRQD

ERUFRI7LWOH86&XQGHU7LWOH86&

F &ULPLQDO3HQDOWLHVIRUDQ\RUDOORIWKH'HIHQGDQWVWKDWYLRODWHGVXEVHFWLRQ

DERUFRI7LWOH86&XQGHU7LWOH86&


27/36

,???FRPSODLQWGRF

&2817;,

7UDGH'UHVV,QIULQJHPHQW


WKH&RPSODLQWWRWKHH[WHQWDVLIWKH\ZHUHIXOO\UHVWDWHGKHUHLQ 7KH DFWV RI WKH LQIULQJLQJ 'HIHQGDQWV FRQVWLWXWH XQIDLU FRPSHWLWLRQ DQG DQ

LQIULQJHPHQW RI 3ODLQWLIIV ULJKWV LQ WKH 7$6(5 0 DQGRU ; PDUNV DV ZHOO DV WKH

WUDGHGUHVV DQGRU WKH DSSHDUDQFH RI WKH 3ODLQWLIIV SURGXFWV 2Q LQIRUPDWLRQ DQG EHOLHI

WKHVH'HIHQGDQWVZHEVLWHVXVHLPDJHVRIZHDSRQU\DQGPRGHOQDPHVWKDWDUHWKHVDPHRU

KLJKO\VLPLODUWR3ODLQWLIIVZHDSRQU\DQGPRGHOQXPEHUVRIWKHVDPHXQGHUWKH7$6(5

0DQG;PDUNVDQGLVOLNHO\WRFDXVHFRQIXVLRQRQWKHSDUWRIFRQVXPHUV

&RQWLQXRXVO\VLQFH3ODLQWLIIE\DQGWKURXJKLWVSUHGHFHVVRUVKDVXVHG

WKH 7$6(5 PDUN WR LGHQWLI\ LWV JRRGV DQG VHUYLFHV DQG WR GLVWLQJXLVK WKHP IURP WKRVH

JRRGV DQG VHUYLFHV RIIHUHG DQG VROG E\ RWKHUV E\ DPRQJ RWKHU WKLQJV SURPLQHQWO\

GLVSOD\LQJ WKH 7$6(5 PDUN RQ LWV ZHEVLWH LQ EURFKXUHV DGYHUWLVHPHQWV IO\HUV ODEHOV

SURGXFWV DXGLR DQG YLGHR DQLPDWLRQV DQG RWKHUZLVH DVVRFLDWHG ZLWK WKH JRRGV DQG

VHUYLFHV,QDGGLWLRQ3ODLQWLIIKDVGLVSOD\HGLWVPDUNDQGSURGXFWSLFWXUHVGLUHFWLQJXVHUV

WR LWV ZHEVLWH LQ GLUHFW PDLO DGYHUWLVLQJ DQG LQ SHULRGLFDOV GLVWULEXWHG WKURXJKRXW WKH

8QLWHG6WDWHV

7KH JRRGV DQGVHUYLFHV RIIHUHGDQG DGYHUWLVLQJKDYHEHHQ GLVWULEXWHGLQWKH

WUDGHDUHDZKHUH'HIHQGDQWVDUHGRLQJEXVLQHVV$VDUHVXOWRIWKHVDOHVDQGDGYHUWLVLQJE\

3ODLQWLII RI SURGXFWV XQGHU WKH 7$6(5 PDUN WKH PDUNV DV ZHOO DV WKH SURGXFW GHVLJQV

KDYH GHYHORSHG DQG QRZ KDYH D VHFRQGDU\ DQG GLVWLQFWLYH WUDGHPDUN PHDQLQJ WR

SXUFKDVHUV LQ YDULRXV WUDGH DUHDV 7KH 7$6(5 PDUN DQG LWV SURGXFWV KDYH FRPH WR

LQGLFDWHWRWKHSXUFKDVHUVDPHDQLQJRIHOHFWURQLFZHDSRQU\DQGWUDLQLQJDQGUHJLVWUDWLRQVHUYLFHVRULJLQDWLQJRQO\ZLWK3ODLQWLII7KHPRGHOQXPEHUV0DQG;DVXVHGE\7,,

DOVRKDYHFRPHWRLQGLFDWHWRWKHSXUFKDVHUVDPHDQLQJRIHOHFWURQLFZHDSRQU\DQGWUDLQLQJ

DQGUHJLVWUDWLRQVHUYLFHVRULJLQDWLQJRQO\ZLWK3ODLQWLII


28/36

,???FRPSODLQWGRF

7KURXJK WKH UHJLVWHUHG EUDQG QDPH 7$6(5 3ODLQWLII DGRSWHG D SDUWLFXODU

GUHVVGHVLJQDQGFRPELQDWLRQRIIHDWXUHVWRSURGXFHDSDUWLFXODUYLVXDODSSHDUDQFHIRUWKH

SXUSRVHRISUHVHQWLQJLWVSURGXFWVJRRGVDQGVHUYLFHVWRWKHSXEOLF

'HIHQGDQWVKDYHDWWHPSWHGWRLPLWDWH7,,VSDUWLFXODUPDUNVSURGXFWGHVLJQV

PRGHOQXPEHUVSDFNDJLQJDQGGUHVVDVZHOODVDFRPELQDWLRQRIIHDWXUHVDVWKH\SHUWDLQ

WRWKHSURGXFWVRQWKHZHEVLWHVLWVHOOVLQVXFKDZD\DVWRPLVOHDGWKHSXEOLF

7KHPXOWLSOLFLW\RIVLPLODULWLHVEHWZHHQHDFKDQGHYHU\GHVLJQLQWKH7$6(5

OLQH RI SURGXFWV DQG WKH SURGXFW GHVLJQV RIIHUHG DQG VROG E\ 'HIHQGDQWV HYLGHQFH D

FRQVFLRXVLQWHQWE\'HIHQGDQWVWRFRS\DQGRULPLWDWHWKH7$6(5EUDQGWKH;DQG0

PRGHOGHVLJQDWLRQVDQG7,,

'HIHQGDQWVXVHRIVLPLODUQDPHVDQGPRGHOQXPEHUVIRULWVJRRGVVHUYLFHV

DQGVLPLODUSURGXFWDSSHDUDQFHVZKHQFRS\LQJDQGRULPLWDWLQJWKH7$6(5;DQGRU

0EUDQGJRRGVHYLGHQFHVDFRQVFLRXVLQWHQWRI'HIHQGDQWVWRLPLWDWHDQGFRS\7,,

'HIHQGDQWVDFWLRQVDUHLQWHQGHGDQGRURSHUDWHWRFRQIXVHWKHSXEOLF

7,,V VDOH RI LWV RZQ JRRGV DQG VHUYLFHV DQG H[SDQGLQJ WKH UHDFK RI LWV

SURGXFWVDVZHOODVLWVSURGXFWOLQHVLVSUHMXGLFHGE\'HIHQGDQWVLPLWDWLRQDQGFRS\LQJRI

WKH7$6(5EUDQGQDPHDQGWKH7$6(5ZHDSRQU\DOOWR7,,VLUUHSDUDEOHGDPDJH

$VD UHVXOWRI WKHDVVRFLDWLRQE\ XVHUVRI3ODLQWLIIVJRRGVDQGVHUYLFHVZLWK

WKH 3ODLQWLII DQ\ DQG DOO RI 'HIHQGDQWV XVH RI VLPLODU SURFHVVHV ZLWK VLPLODU QDPHV LV

OLNHO\WRFDXVHFRQIXVLRQRQWKHSDUWRIFRQVXPHUV

'HIHQGDQWV KDYH LQIULQJHG 3ODLQWLIIV WUDGHGUHVV LQLWV SURGXFW OLQHVVKRZQ

RQ LWV ZHEVLWH XQGHU WKH 7$6(5 PDUN DV DOOHJHG KHUHLQ ZLWK WKH LQWHQW WR GHFHLYH WKH

SXEOLFLQWREHOLHYLQJWKDWVHUYLFHVVROGE\'HIHQGDQWVDUHPDGHE\DSSURYHGE\VSRQVRUHG

E\RUDIILOLDWHGZLWK3ODLQWLII'HIHQGDQWVDFWVDVDOOHJHGKHUHLQZHUHFRPPLWWHGZLWKWKH

LQWHQWWRSDVVRII'HIHQGDQWVJRRGVDQGVHUYLFHVDVWKHJRRGVDQGVHUYLFHVRI3ODLQWLIIDQG

ZLWKWKHLQWHQWWRGHFHLYHDQGGHIUDXGWKHSXEOLF


29/36

,???FRPSODLQWGRF

%\UHDVRQRI 'HIHQGDQWVDFWVDVDOOHJHGKHUHLQ3ODLQWLIIKDVDQGZLOOVXIIHU

GDPDJH WRLWV EXVLQHVVUHSXWDWLRQ DQG JRRGZLOO DQG LQWKH ORVV RIVDOHV DQG SURILWV WKDW

3ODLQWLIIZRXOGKDYHPDGHEXWIRUGHIHQGDQWVDFWV

'HIHQGDQWV WKUHDWHQ WR FRQWLQXH WR GR WKH DFWV FRPSODLQHG RI KHUHLQ DQG

XQOHVVUHVWUDLQHGDQGHQMRLQHGZLOOFRQWLQXHWRGRVRDOOWR3ODLQWLIIVLUUHSDUDEOHGDPDJH

,WZRXOGEHGLIILFXOWWRDVFHUWDLQWKHDPRXQWRIFRPSHQVDWLRQZKLFKFRXOGDIIRUG3ODLQWLII

DGHTXDWHUHOLHIIRUVXFKFRQWLQXLQJDFWVDQGDPXOWLSOLFLW\RIMXGLFLDOSURFHHGLQJVZRXOGEH

UHTXLUHG 3ODLQWLIIV UHPHG\ DW ODZ LV QRW DGHTXDWH WR FRPSHQVDWH LW IRU WKH WKUHDWHQHG

LQMXULHV

:+(5()25( 3ODLQWLII SUD\V IRU MXGJPHQW DJDLQVW WKH 'HIHQGDQWV DQG HDFK RI

WKHPDQGHDFKRIWKHPDVIROORZV

D 7KDW WKLV &RXUWJUDQWDQLQMXQFWLRQHQMRLQLQJ DQG UHVWUDLQLQJGHIHQGDQWVDQG

WKHLU DJHQWV VHUYDQWV DQG HPSOR\HHV IURP GLUHFWO\ RU LQGLUHFWO\ XVLQJ D

ZHEVLWHZLWKRUZLWKRXWWKHZRUGV7$6(5RUDQ\RWKHUPDUNZRUGRUQDPH

VLPLODU WR 3ODLQWLIIV 7$6(5 PDUN RU ZLWK RU ZLWKRXW WKH SURGXFW

DSSHDUDQFHVRUDQ\RWKHUPDUNZRUGRUQDPHVLPLODUWR3ODLQWLIIVSURGXFWV

JRRGV DQG VHUYLFHV RQ DQ RSHUDWLQJ ZHEVLWH ZKLFK LV OLNHO\ WR FDXVH

FRQIXVLRQDQGFRQWLQXLQJDQ\DQGDOODFWVRI XQIDLUFRPSHWLWLRQDVKHUHLQ

DOOHJHG

E 7KDWWKLV&RXUW JUDQWDQLQMXQFWLRQHQMRLQLQJ DQG UHVWUDLQLQJ'HIHQGDQWVDQG

WKHLU DJHQWV VHUYDQWV DQG HPSOR\HHV IURP GLUHFWO\ RU LQGLUHFWO\ XVLQJ

ZHEVLWHV RSHUDWLQJ ZLWK 3ODLQWLIIV QDPH DQGRU SURGXFWV GHVLJQV ZKLFK LV

OLNHO\ WR FDXVH FRQIXVLRQ DQG FRQWLQXLQJ DQ\ DQG DOO DFWV RI XQIDLU

FRPSHWLWLRQDVKHUHLQDOOHJHG

F 7KDW'HIHQGDQWVEHUHTXLUHGWRDFFRXQWWR3ODLQWLIIIRUDQ\DQGDOOSURILWVDQG

DOOOHDGVGHULYHGE\'HIHQGDQWVIURPWKHRIIHULQJWRVHOODQGWKHVDOHRIWKHLU

7$6(5EUDQGHGYLUWXDOZHDSRQU\SURGXFWVWKHLQIULQJLQJDFWLYLWLHVDQGIRU


30/36

,???FRPSODLQWGRF

DOOGDPDJHVVXVWDLQHGE\SODLQWLIIE\UHDVRQRIWKHDFWVRILQIULQJHPHQWDQG

XQIDLUFRPSHWLWLRQFRPSODLQHGRIKHUHLQ

G )RU DQ DZDUG RI SXQLWLYH GDPDJHV LQ DQ DPRXQW VXIILFLHQW WR SXQLVK

'HIHQGDQWV IRUWKHLU ZURQJIXOFRQGXFW DQG WR GHWHURWKHUV IURP HQJDJLQJLQ


H )RU DQ DZDUG RI WKH FRVWV LQFXUUHG E\ 3ODLQWLII LQ SXUVXLQJ WKLV DFWLRQ

LQFOXGLQJUHDVRQDEOHDWWRUQH\VIHHVDQG

I )RUDOORWKHUUHOLHIGHHPHGSURSHUE\WKH&RXUWXQGHUWKHFLUFXPVWDQFHV

&2817;,,

'HVLJQ3DWHQW,QIULQJHPHQW



2Q$SULO8QLWHG6WDWHV'HVLJQ3DWHQW1R'ZDVGXO\DQG

OHJDOO\LVVXHGLQWKHQDPHRI0LODQ&HURYLFDVLQYHQWRURID*XQSee ([KLELW

3ODLQWLII7,,LVWKHRZQHUE\$VVLJQPHQWRIWKHHQWLUHULJKWWLWOHDQGLQWHUHVW

LQDQGWRVDLG'HVLJQ3DWHQW1R'Also see ([KLELW

8SRQ LQIRUPDWLRQDQG EHOLHI 'HIHQGDQWVKDYH EHHQ DQG VWLOODUH LQIULQJLQJ

WKH DIRUHVDLG 8QLWHG 6WDWHV 'HVLJQ 3DWHQW 1R ' E\ XVLQJ RIIHULQJ WR VHOO DQG

VHOOLQJZHDSRQU\HOHPHQWVXWLOL]LQJWKHGHVLJQGHVFULEHGDQGFODLPHGLQVDLGGHVLJQSDWHQW

ZLWKLQWKLV'LVWULFWDQGHOVHZKHUH

3ODLQWLII7,,PDQXIDFWXUHVRIIHUVWRVHOODQGVHOOVJRRGVLQFOXGLQJEXWQRW

OLPLWHGWRWKHPRGHO;HOHFWURQLFZHDSRQPDGHLQDFFRUGDQFHZLWKDQGHPERG\LQJVDLG

GHVLJQRIVDLGGHVLJQSDWHQWDQGDOORIWKHJRRGVKHUHWRIRUHVROGE\7,,VLQFHWKHLVVXDQFH

RIVDLGSDWHQWKDVERUQHSURSHUQRWLFHRIVDLGSDWHQWSXUVXDQWWR86&

1RWZLWKVWDQGLQJWKHLVVXDQFHRIWKLVSDWHQWWKH'HIHQGDQWV3KLOLS5RVHGDOH

0DUN.LQJGRQ)UDQN$PEURVH6DQG\*RXOG7RP+DOH+RZDUG/RRN%ULDQ0LFKRQ

-RH0LOOHU0DUW\5REHUWV&\Q6N\EHUJ-XG\:DGH*LQVX


31/36

,???FRPSODLQWGRF

DQG WKH /LQGHQ 'HIHQGDQWV LQ FRPSOHWH GLVUHJDUG RI WKHLU GXH GLOLJHQFH WKHUHRI DQG LQ

GHOLEHUDWHNQRZLQJDQGZDQWRQGLVUHJDUGRIWKHULJKWVRI WKH3ODLQWLIISURFHHGHGZLWKWKH

XVH RIIHU WR VHOO DQG VDOH RI VDLG LQIULQJLQJ YLUWXDO JRRGV DQG KDV EHHQ DQG XSRQ

LQIRUPDWLRQDQGEHOLHILVVWLOOXVLQJRIIHULQJWRVHOORUFDXVLQJWREHVROGVXFKLQIULQJLQJ

JRRGVWKHUHE\GHULYLQJXQODZIXOJDLQVDQGSURILWVDQGZLOOFRQWLQXHWRGRVRE\FRQWLQXHG

LQIULQJHPHQWRIVDLGSDWHQWLQGHOLEHUDWHNQRZLQJDQGZDQWRQGLVUHJDUGRIWKHULJKWVRI

3ODLQWLIIDQGWR3ODLQWLIIVLUUHSDUDEOHGDPDJHXQOHVVUHVWUDLQHGE\WKLV&RXUW

1RWZLWKVWDQGLQJ WKH LVVXDQFHRI WKLV SDWHQW WKH 'HIHQGDQWV -D\ *HHVHPDQ

DQG WKHUHE\ 'HIHQGDQWV 9LUWXDWUDGH //& DQG ;675((7 6/ LQ FRPSOHWH GLVUHJDUG RI

WKHLUGXHGLOLJHQFHWKHUHRIDQGLQGHOLEHUDWHNQRZLQJDQGZDQWRQGLVUHJDUGRIWKHULJKWVRI

WKH3ODLQWLIISURFHHGHGZLWKWKHXVHRIIHUWRVHOODQGVDOHRIVDLGLQIULQJLQJJRRGVDQGKDV

EHHQDQGXSRQLQIRUPDWLRQDQGEHOLHILVVWLOOXVLQJRIIHULQJWRVHOORUFDXVLQJWREHVROG

VXFKLQIULQJLQJJRRGVWKHUHE\GHULYLQJXQODZIXOJDLQVDQGSURILWVDQGZLOOFRQWLQXHWRGR

VRE\FRQWLQXHGLQIULQJHPHQWRIVDLGSDWHQWLQGHOLEHUDWHNQRZLQJDQGZDQWRQGLVUHJDUG

RI WKH ULJKWV RI 3ODLQWLII DQG WR 3ODLQWLIIV LUUHSDUDEOH GDPDJH XQOHVV UHVWUDLQHG E\ WKLV

&RXUW

3ODLQWLII KDV EHHQ GDPDJHG E\ WKH LQIULQJLQJ DFWV RI WKH 'HIHQGDQW LQ DQ

DPRXQWXQNQRZQWR3ODLQWLIIEXW3ODLQWLIIDVNVOHDYHWRLQVHUWE\DPHQGPHQWWKHDPRXQWRI

GDPDJHVKHUHLQZKHQWKHVDPHLVDVFHUWDLQHG

&2817;,,,

'HVLJQ3DWHQW,QIULQJHPHQW,,



2Q$XJXVW8QLWHG6WDWHV'HVLJQ3DWHQW1R'ZDVGXO\DQG

OHJDOO\LVVXHGLQWKHQDPHRI0LODQ&HURYLFDVLQYHQWRURID*XQ6HH([KLELW

3ODLQWLII7,,LVWKHRZQHUE\$VVLJQPHQWRIWKHHQWLUHULJKWWLWOHDQGLQWHUHVW

LQDQGWRVDLG'HVLJQ3DWHQW1R'$OVRVHH([KLELW


32/36


33/36

,???FRPSODLQWGRF

3ODLQWLII KDV EHHQ GDPDJHG E\ WKH LQIULQJLQJ DFWV RI WKH 'HIHQGDQW LQ DQ

DPRXQWXQNQRZQWR3ODLQWLIIEXW3ODLQWLIIDVNVOHDYHWRLQVHUWE\DPHQGPHQWWKHDPRXQWRI

GDPDJHVKHUHLQZKHQWKHVDPHLVDVFHUWDLQHG

:+(5()25(3ODLQWLIISUD\V

D )RUDQDFFRXQWLQJDQGGHWHUPLQDWLRQRIWKHGDPDJHV3ODLQWLIIKDVVXIIHUHG

LQ FRQVHTXHQFH RI 'HIHQGDQWV DFWV RI SDWHQW LQIULQJHPHQW DQG RI WKH

SURILWV JDLQHG E\ 'HIHQGDQW E\ FRS\LQJ 3ODLQWLIIV SURGXFW XQIDLU

FRPSHWLWLRQDQGPLVDSSURSULDWLRQ

E )RU MXGJPHQW WUHEOH WKH DPRXQW GHWHUPLQHG E\ VDLG DFFRXQWLQJ WR EH

DWWULEXWDEOHWRDFWVRISDWHQWLQIULQJHPHQWE\'HIHQGDQW

F )RUDQLQMXQFWLRQVWULFWO\FRPPDQGLQJ'HIHQGDQWLWVDJHQWVVHUYDQWVDQG

HPSOR\HHV DQG WKRVH LQDFWLYH FRQFHUW RUSDUWLFLSDWLRQ ZLWK LW WRUHIUDLQ

IURP IXUWKHU DFWV RI SDWHQW LQIULQJHPHQW XQIDLU FRPSHWLWLRQ DQG XQMXVW

HQULFKPHQWDVDIRUHVDLG

G )RU MXGJPHQW DJDLQVW 'HIHQGDQW LQ WKH DPRXQW QHFHVVDU\ WR FRPSHQVDWH

3ODLQWLIIIRU LWV UHDVRQDEOH FRVWV LQWHUHVW DQG DWWRUQH\IHHV LQFXUUHG DQG

H[SHQGHGLQFRQMXQFWLRQZLWKWKLVDFWLRQ

H )RU VXFK RWKHU DQG IXUWKHU UHOLHI DV WKLV &RXUW VKDOO GHHP SURSHU DQG

QHFHVVDU\WRDGHTXDWHO\FRPSHQVDWH3ODLQWLII

&2817;,9

&RQWULEXWRU\,QIULQJHPHQW&RQWULEXWRU\8QIDLU&RPSHWLWLRQ&RQWULEXWRU\9LRODWLRQ2I/DQKDP$FW&RQWULEXWRU\)DOVH'HVLJQDWLRQ2I2ULJLQ$QG7UDGH'UHVV

,QIULQJHPHQW&RQWULEXWRU\$UL]RQD&RPPRQ/DZ7UDGHPDUN,QIULQJHPHQW&RQWULEXWRU\9LRODWLRQRI&LYLO5LFR6XE6HFWLRQV&RQWULEXWRU\7UDGH'UHVV

,QIULQJHPHQW&RQWULEXWRU\3DWHQW,QIULQJHPHQW



8SRQ LQIRUPDWLRQDQG EHOLHI 'HIHQGDQW -D\ *HHVHPDQLVDQG ZDV WKH VROH

RZQHUDQGRSHUDWRURI'HIHQGDQWV9LUWXDWUDGH//&DQG;675((76/


34/36

,???FRPSODLQWGRF

8SRQ LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV 3KLOLS 5RVHGDOH 0DUN .LQJGRQ

)UDQN$PEURVH6DQG\*RXOG7RP+DOH+RZDUG/RRN%ULDQ0LFKRQ-RH0LOOHU0DUW\

5REHUWV&\Q6N\EHUJ-XG\:DGH*LQVX


35/36

,???FRPSODLQWGRF

E $ZDUGLQJ3ODLQWLII'HIHQGDQWVSURILWV

F $ZDUGLQJ3ODLQWLIIDQ\GDPDJHVVXVWDLQHGE\WKH3ODLQWLII

G $ZDUGLQJ3ODLQWLIIWKHFRVWVRIWKHDFWLRQ

H $ZDUGLQJ3ODLQWLIILWVUHDVRQDEOHDWWRUQH\IHHVSXUVXDQWWR$UL]RQD5HYLVHG6WDWXWHV

I $ZDUGLQJ3ODLQWLIIDWWKH3ODLQWLIIVHOHFWLRQDQGLQOLHXRIWKH'HIHQGDQWVSURILWVRU

DFWXDOGDPDJHVSUHVXPHGGDPDJHVWKDWDUHHTXDOWRILYHKXQGUHGGROODUVIRUHDFK

FRS\ RU WKH PDQXIDFWXUHUV VXJJHVWHG UHWDLO SULFH IRU HDFK FRS\ ZKLFKHYHU LV

JUHDWHUSXUVXDQWWR$UL]RQD5HYLVHG6WDWXWHV

J $ZDUGLQJ3ODLQWLIIHOHYDWHGDQGRU SXQLWLYHGDPDJHV WR3ODLQWLIIEHFDXVHWKH OLVWHG

'HIHQGDQWVFRQGXFWZDVPDOLFLRXVDQGLQWHQWLRQDO

K $ZDUGLQJ 3ODLQWLII GDPDJHV IRU HDFK FRQWULEXWRU\ DZDUG IRU HDFK MXGJPHQW RI

FRQWULEXWLQJ WR LQIULQJH 3ODLQWLIIV WUDGHPDUN XQIDLUO\ FRPSHWH WR FRPPLW )DOVH

'HVLJQDWLRQRI2ULJLQWRFRPPLW$UL]RQDFRPPRQODZWUDGHPDUNLQIULQJHPHQWWR

YLRODWH 3ODLQWLIIV WUDGH GUHVV WR IUDXGXOHQWO\ PLVUHSUHVHQW 3ODLQWLIIV H[FOXVLYH

ULJKWVLQLWVPDUNWRLQIULQJHLWVGHVLJQSDWHQWVDQGFRQVSLUHGWRJHWKHUWRGRDOORI

VDPH DV DQ RUJDQL]HG EXVLQHVV XVLQJ PDLO HPDLO SKRQH DQG RWKHU LQWHUVWDWH

FRPPXQLFDWLRQVPHWKRG

L )RU MXGJPHQW DJDLQVW 'HIHQGDQW LQWKH DPRXQW QHFHVVDU\ WRFRPSHQVDWH 3ODLQWLII

IRU LWV UHDVRQDEOH FRVWV LQWHUHVW DQG DWWRUQH\ IHHV LQFXUUHG DQG H[SHQGHG LQ

FRQMXQFWLRQZLWKWKLVDFWLRQ

M )RU VXFKRWKHUDQGIXUWKHUUHOLHI DVWKLV&RXUW VKDOOGHHP SURSHU DQG QHFHVVDU\ WR

DGHTXDWHO\FRPSHQVDWH3ODLQWLII

'DWHGWKLVWK

GD\RI$SULO

%\ V-RUGDQ00HVFKNRZ -RUGDQ00HVFKNRZ$=%DU1R0(6&+.2:*5(6+$03/&

1RUWK6HYHQWK6WUHHW6XLWH3KRHQL[$=


36/36

second life - complaint without exhibits

Documents