Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 1 of 39 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK IN RE FARFETCH LIMITED OPINION & ORDER SECURITIES LITIGATION 23-cv-10982 (ER) RAMOS, D.J.: Co-/HDG3ODLQWL൵V)HUQDQGR6XOLFKLQDQG:@HKDYHFOHDUYLVLELOLW\WKDWZHZLOOGHOLYHUQRWRQO\JURZWKEXWVXVWDLQHGSUR¿WDELOLW\ DQGSRVLWLYHIUHHFDVKÀRZPRYLQJIRUZDUG´ˆ$WWKHEHJLQQLQJRI&DSLWDO 0DUNHWV'D\WKHLQWURGXFWRU\VSHDNHUVWDWHG :HZLOODOVREHPDNLQJIRUZDUG-ORRNLQJVWDWHPHQWVWRGD\$FWXDO UHVXOWV FRXOG GL൵HU PDWHULDOO\ IURP WKRVH IRUZDUG[-ORRNLQJ@ VWDWHPHQWV DQG ZH XQGHUWDNH QR REOLJDWLRQ WR SXEOLFO\ XSGDWH RU UHYLVHWKHP)RUDGLVFXVVLRQRIVRPHRIWKHIDFWRUVWKDWFRXOGFDXVH DFWXDOUHVXOWVWRGL൵HUIURPWKHVHIRUZDUG-ORRNLQJVWDWHPHQWVSOHDVH UHIHU WR RXU 6(& ¿OLQJV  :H ZLOO DOVR UHIHU WR FHUWDLQ QRQ-IFRS ¿QDQFLDOPHDVXUHVLWV@ SODQ.´ ˆ 157. On 0DUFK )DUIHWFK¿OHGLWV)RUP-)IRU)<. Doc. 81-๠H GRFXPHQWDGYLVHG, ³>W@KLV$QQXDO5HSRUWFRQWDLQVVWDWHPHQWVWKDWFRQVWLWXWHµIRUZDUG- ORRNLQJVWDWHPHQWV¶ZLWKLQWKHPHDQLQJRIWKH>36/5$@ :HLQWHQGVXFKIRUZDUG- ORRNLQJVWDWHPHQWVWREHFRYHUHGE\WKH VDIHKDUERUSURYLVLRQV. ๠HVHVWDWHPHQWVDUH QHLWKHUSURPLVHVQRUJXDUDQWHHVEXWLQYROYHNQRZQDQGXQNQRZQULVNVWKDWPD\ FDXVHRXUDFWXDOUHVXOWVSHUIRUPDQFHRUDFKLHYHPHQWVWREHPDWHULDOO\ GL൵HUHQW. . . .´ Id. at 11. ๠H)RUP 20-F DOVRVWDWHG: ³:HEHOLHYHWKDWRXUVRXUFHVRIOLTXLGLW\DQGFDSLWDO ZLOOEHVX൶FLHQWWRPHHWRXUEXVLQHVVQHHGVIRUDWOHDVWWKHQH[WWZHOYHPRQWKV :HDOVR H[SHFWWKHVHVRXUFHVRIOLTXLGLW\ZLOOEHVX൶FLHQWWRIXQGRXUORQJ-WHUPFRQWUDFWXDO REOLJDWLRQVDQGFDSLWDOQHHGV´ˆ +RZHYHULQ$SULO3ODLQWL൵VFRQWHQGWKDW VHQLRU PDQDJHPHQWZDVFRQFHUQHG WKDW)DUIHWFKFRXOGEHIRUFHGWRGHOLVWIURPWKH1<6(RUHYHQFHDVHWRH[LVWE\WKHHQGRI WKH\HDUˆ8. $IRUPHUHPSOR\HH ³FE5´ , ZKRPHWZLWK-RUGDQ LQ$SULO, UHFDOOHGWKDW-RUGDQVtated WKDWPDMRULQYHVWRUVPD\ SXOOWKHLUIXQGLQJEHFDXVHRI ORQJVWDQGLQJLQWHUQDOGH¿FLHQFLHV. Id. 2Q0D\LQWKH4(DUQLQJV 5HOHDVH-RUGDQVWDWHGWKDWWKH&RPSDQ\³GHOLYHUHGZKDW>LW@VHWRXWWRDFKLHYH. [It KDV@VXFFHVVIXOO\QDYLJDWHGWKURXJKXQSUHFHGHQWHGPDFURFKDOOHQJHVDQGWKURXJK FRQWLQXHGIRFXVHGH[HFXWLRQ>LW@UHPDLQ>V@RQWUDFNWRGHOLYHUD\HDURIOX[XU\PDUNHW- EHDWLQJJURZWKDUHWXUQWRSUR¿WDELOLW\DQGSRVLWLYHIUHHFDVKÀRZ´ˆ๠LV5HOHDVH 6 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 7 of 39 ZDVDFFRPSDQLHGE\DZDUQLQJWKDWLW³FRQWDLQVIRUZDUG-ORRNLQJVWDWHPHQWVZLWKLQWKH PHDQLQJRIWKH>36/5$@. . . . ๠HVHVWDWHPHQWVDUHQHLWKHUSURPLVHVQRUJXDUDQWHHVEXW LQYROYHNQRZQDQGXQNQRZQULVNVXQFHUWDLQtiHVDQGRWKHULPSRUWDQWIDFWRUVWKDWPD\ FDXVHDFWXDOUHVXOWVSHUIRUPDQFHRUDFKLHYHPHQWVWREHPDWHULDOO\GL൵HUHQW .´ Doc. 81-16 at 18. On 6HSWHPEHU)DUIHWFKUS +ROGLQJV,QFDVXEVLGLDU\RI)) +ROGLQJV ERUURZHGDQDGGLWLRQDOPLOOLRQGROODUVIURP-30RUJDQDVDWHUPORDQ ˆ 109. 3ODLQWL൵VDOOHJHWKDWWKH VWDWHPHQWVWKH,QGLYLGXDO'HIHQGDQWVPDGHDERXWWKH ¿QDQFLDOZHOO-EHLQJRI)DUIHWFKGXULQJWKLVSHULRGZHUHPDWHULDOO\IDOVHDQGPLVOHDGLQJ EHFDXVHDV'HIHQGDQWVNQHZ WKH&RPSDQ\ZDVIDFLQJVHYHUH¿QDQFLDOKDUGVKLSDQG 'HIHQGDQWVZHUH³DFWLYHO\SDUWLFLSDWLQJLQH൵RUWVWRVHFXUHDOWHUQDWLYH¿QDQFLQJGXH WRLWVSRRU¿QDQFLDOFRQGLWLRQDQGJURZLQJOLTXLGLW\SUHVVXUHV.´ ˆˆ 154, 165, 168, 174, 178, 181. 3ODLQWL൵VFRQWHQGWKDW )DUIHWFK¶V VWRFNSULFH³FDPHWXPEOLQJGRZQ´DIWHUDVHULHV RIUHYHODWLRQVLQGLFDWLQJWKDW )DUIHWFK ZDVQRWH[HFXWLQJRQLWVSODQWRDFKLHYH SUR¿WDELOLW\DQGSRVLWLYHIUHHFDVKÀRZWKDWLWVSUHYLRXVJXLGDQFHDERXW SHUIRUPDQFHZDV QRWWREHWUXVWHGDQGXOWLPDWHO\WKDWWKHEXVLQHVVKDGEHHQJXWWHGDQGVROGR൵IRULWVSDUWV WRDYRLGLQVROYHQF\ ˆ $IWHUWKHUHOHDVHRISRRU4UHVXOWVDQGVLJQL¿FDQWO\ UHGXFHGFY JXLGDQFHWKHVWRFNSULFHIHOO.17WRRQ$XJXVW, ˆˆ 111, 114. 2Q1RYHPEHU)DUIHWFKDQQRXQFHGWKDWLWZRXOGQRWGLVFORVH4 UHVXOWVDQGWKDWLWVSUHYLRXVJXLGDQFHDQGIRUHFDVWVFRXOGQRWEHUHOLHGXSRQˆ ๠HIROORZLQJGD\WKHVWRFNSULFHGURSSHGWR ˆ2Q'HFHPEHU )DUIHWFKR൶FLDOO\DJUHHGWRWUDQVIHUDOORIWKHEXVLQHVVDQGDVVHWVRI))+ROGLQJV WKHSULPDU\VXEVLGLDU\RI)DUIHWFKWR&RXSDQJ,QFIRUDPLOOLRQEULGJHORDQ. ˆ $FFRUGLQJWR3ODLQWL൵VWKLVH൵HFWLYHO\JXWWHGWKHSXEOLFO\WUDGHGFRPSDQ\RILWV DVVHWVOHDYLQJLWXQDEOHWRPHHWLWVGHEWREOLJDWLRQVDQGVWULSSLQJLQYHVWRUVRIDQ\YDOXH WKHVKDUHVKHOGId. ๠LVFXOPLQDWHGLQWKHVWRFNSULFHIDOOLQJ WRDVKDUH. ˆ 122. ๠e NYSE commenced GHOLVWLQJ SURFHHGLQJVRQ'HFHPEHUId. On 7 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 8 of 39 -DQXDU\6XUSLTXH$FTXLVLWLRQ/LPLWHG ³6XUSLTXH´ SXUFKDVHGWKH)DUIHWFK bXVLQHVV. ˆ 127. 3ODLQWL൵VDOOHJHWKDWWKLVH൵HFWLYHO\DOORZHG)DUIHWFKWRZULWHR൵RYHU ELOOLRQRIGHEWREOLJDWLRQVˆ 6KRUWO\DIWHURQ)HEUXDU\:LOPLQJWRQ 7UXVWDFUHGLWRURI )DUIHWFK /LPLWHG¿OHGDSHWLWLRQIRUWKHZLQGLQJ-XSRIWKHFRPSDQ\in WKH*UDQG&RXUWRIWKH&D\PDQ,VODQGV See Doc. 61-1. ๠URXJKRXWWKLVSHULRGHDFKRIWKH,QGLYLGXDO'HIHQGDQWVKHOGDVLJQL¿FDQW DPRXQWRIVWRFNLQ)DUIHWFK 2Q0DUFK1HYHVRZQHG  VKDUHV-RUGDQ RZQHG VKDUHVDQG3KDLURZQHGVKDUHV'RF-3 at 117. On 'HFHPEHU 1HYHVRZQHG VKDUHV. Doc. 81-22 at 6. 2Q$XJXVW -RUGDQRZQHGVKDUHV 'RFV-12 at 121, 81-20 at 3. 2Q$XJXVW 3KDLURZQHGVKDUHVDocV. 81-12 at 121, 81-19 at 3. +RZHYHU-RUGDQ DQG3KDLUVROGVKDUHVLQ$XJXVWVHOOLQJ DSSUR[LPDWHO\00,000 DQG ZRUWK RIVWRFNUHVSHFWLYHO\, 'RFV-20 at 3, 81-19 at 3, DQG1HYHVmoved VRPHRIKLVVKDUHV WRDKROGLQJFRPSDQ\ EHWZHHQWKHEHJLQQLQJRIDQGHQGRI, DocV. 81-3 at 117, 81-12 at 121, 81-22 at 6. B. Procedural Background -DVPLQH:XLQGLYLGXDOO\DQGRQEHKDOIRIDOORWKHUVVLPLODUO\VLWXDWHG¿OHGWKH ¿UVWFRPSODLQWLQWKLVFRQVROLGDWHGFODVVDFWLRQRQ'HFHPEHU  WKH³:X6'1< $FWLRQ´  Doc. 1. ๠UHHPHPEHUVRIWKHSXWDWLYHFODVV¿OHGPRWLRQVVHHNLQJ DSSRLQWPHQWDVOHDGSODLQWL൵ 3 2Q2FWREHUWZRPRQWKVSULRUWRWKH¿OLQJRIWKH 2F above-FDSWLRQHGDFWLRQDUHODWHGVHFXULWLHVFODVVDFWLRQDVVHUWLQJVXEVWDQWLDOO\WKHVDPH 3 ๠HIROORZLQJLQGLYLGXDOVPRYHGWREHDSSRLQWHGDVOHDGSODLQWL൵LQWKLVDFWLRQ. 2Q'HFHPEHU  PRYDQW0LFKDHO%LHYHWVNLPRYHGWREHDSSRLQWHGDVOHDGSODLQWL൵DQG๠H5RVHQ/DZ)LUP3$DVOHDG FRXQVHO Doc. 5. $OVRRQ'HFHPEHU PRYDQW(GXDUGR$UFKHU9HORVR0DUWLQVDQG5HQRSRUWR ,QYHVWLPHQWRV,PRELOLiULRV/'$ ³0DUWLQV´ PRYHGWREHDSSRLQWHGDVOHDGSODLQWL൵DQG3RPHUDQW]//3 DVOHDGFRXQVHOIRUWKH&ODVV Doc. 8. /DVWO\RQ-DQXDU\)HUQDQGR6XOLFKLQLQGLYLGXDOO\DQGRQ EHKDOIRI/\[RU2YHUVHDV+ROGLQJV Limited DQG&LQHUJ\$GYLVRUV Limited ³6XOLFKLQ´ moved to be DSSRLQWHGDVOHDGSODLQWL൵DQG/HYL .RUVLQVN\//3DVOHDGFRXQVHO Doc. 17. 0DUWLQVDQG6XOLFKLQ DORQJZLWKWKUHHRWKHULQGLYLGXDOV—W@UHDGHUVRQD 4 ๠H6$&DPHQGHGWKH&ODVV3HULRGWREH'HFHPEHUWKURXJK'HFHPEHULQFOXVLYH ˆ 9 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 10 of 39 VFDYHQJHUKXQWWKURXJKODUJHEORFNTXRWDWLRQVH[FHUSWHGIURPPRUHWKDQGL൵HUHQW GLVFORVXUHVRYHUDQHDUO\WZR-\HDUSHULRG´LQZKDWFRQVWLWXWHGSX]]OH-SOHDGLQJ Id. at 11. ๠H,QGLYLGXDO'HIHQGDQWVDGGHGWKDWQHDUO\DOOWKHFKDOOHQJHGVWDWHPHQWVDUH 1) non- DFWLRQDEOHH[SUHVVLRQVRIFRUSRUDWHRSWLPLVP 2) IRUZDUG-ORRNLQJVWDWHPHQWVSURWHFWHG E\WKH36/5$VDIHKDUERUDQGRU 3) RSLQLRQVWDWHPHQWV Id. /DVWO\WKH,QGLYLGXDO 'HIHQGDQWVDUJXHGWKDWWKH3ODLQWL൵VGLGQRW—DQGFRXOGQRW—SOHDGIDFWVWRPHHWWKH UHTXLVLWH³VWURQJ´LQIHUHQFHWKDW'HIHQGDQWVDFWHGZLWKVFLHQWHU Id. at 12. :KLOHWKH,QGLYLGXDO'HIHQGDQWV¶¿UVWPRWLRQWRGLVPLVVUHPDLQHGSHQGLQJRQ 0D\3ODLQWL൵V¿OHGDPRWLRQVHHNLQJWRPRGLI\WKHDXWRPDWLFGLVFRYHU\VWD\ LPSRVHGE\ WKH36/5$'RF 3ODLQWL൵VUHTXHVWHGSURGXFWLRQRIDOO³QRQ-SULYLOHJHG GRFXPHQWVDOUHDG\SURGXFHG RUEHLQJSURGXFHGE\ 6XUSLTXHL.P. WR)DUIHWFK¶V OLTXLGDWRU´LQUHVSRQVHWRD%DQNUXSWF\5XOHVXESRHQDLQWKH&D\PDQSURFHHGLQJ 'RFDW3ODLQWL൵VFRQWHQGHGWKDWOLIWLQJWKHVWD\³LPSRVH>G@QRXQGXHEXUGHQ´RQ 6XUSLTXHDQGZDV³QHFHVVDU\WRSUHYHQWUHDODQGLUUHSDUDEOHKDUP´ Id. at 7. 2Q0D\QRQ-SDUW\6XUSLTXH¿OHGDEULHILQRSSRVLWLRQWR3ODLQWL൵V¶ PRWLRQWROLIWWKHDXWRPDWLFGLVFRYHU\VWD\'RF6XUSLTXHDUJXHGWKDW3ODLQWL൵VKDYH QRWVDWLV¿HGWKHLUKHDY\EXUGHQWRMXVWLI\OLIWLQJWKHVWD\ZKLFK&RQJUHVVKDVPDQGDWHG WKURXJKWKH36/5$. Id. at 5. 6SHFL¿FDOO\6XUSLTXHDUJXHGWKDW3ODLQWL൵VZHUHZURQJRQ WKHIDFWVIDLOHGWRH[SODLQZK\OLIWLQJWKHVWD\ZDVQHFHVVDU\WRDYRLGFDXVLQJWKHP XQGXHSUHMXGLFHDQG IDLOHGWRPHHWWKH36/5$¶VSDUWLFXODULW\UHTXLUHPHQWVId. ๠H ,QGLYLGXDO'HIHQGDQWVDOVR¿OHGDEULHILQRSSRVLWLRQWR3ODLQWL൵V¶PRWLRQWROLIWWKH DXWRPDWLFGLVFRYHU\VWD\RQ0D\RQWKHVDPHJURXQGVDV6XUSLTXH'RF 2Q)HEUXDU\WKH&RXUWGHQLHG3ODLQWL൵V¶PRWLRQWROLIWWKHDXWRPDWLFGLVFRYHU\ VWD\'RF 2Q6HSWHPEHU30WKH&RXUWJUDQWHGWKH,QGLYLGXDO'HIHQGDQWV¶PRWLRQWR GLVPLVVWKH&$& Doc. 73. ๠H&RXUWKHOGWKDWWKH&$&³IDLO>HG@WRPHHWWKHSOHDGLQJ VWDQGDUGVRI5XOH E DQGWKH36/5$´ Id. at 27. 6SHFL¿FDOO\WKH&RXUWFRQFOXGHGWKDW 10 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 11 of 39 3ODLQWL൵VKDG³IDLOHGWRDOOHJHDPDWHULDOPLVUHSUHVHQWDWLRQRURPLVVLRQWRVXSSRUWDFODLP XQGHUSection  E ´ Id. at 32. ๠H&RXUWIXUWKHUIRXQGWKDW3ODLQWL൵V³KDYHQRW VX൶FLHQWO\DOOHJHGDQLQIHUHQFHRIVFLHQWHUµDWOHDVWDVVWURQJDVWKHRSSRVLQJLQIHUHQFH¶´ DQGWKHUHIRUHGLVPLVVHG3ODLQWL൵V¶Section  E DQG5XOHE-FODLPVDJDLQVWWKH ,QGLYLGXDO'HIHQGDQWV Id. at 42–43. %HFDXVH3ODLQWL൵VIDLOHGWRSOHDGDSULPDU\ YLRODWLRQRIWKH6HFXULWLHV([FKDQJH$FWWKH&RXUWDOVRGLVPLVVHG3ODLQWL൵V¶FODLPV SXUVXDQWWRSection 20(a). Id. at 45. ๠H&RXUWJUDQWHG3ODLQWL൵VOHDYHWR¿OHDVecond amended cRPSODLQW Id. at 46. 2Q1RYHPEHU3ODLQWL൵V¿OHGWKH SAC, DOOHJLQJWZRFRXQWV    YLRODWLRQRISection  E RIWKH6HFXULWLHV([FKDQJH$FW 86&†M E DQG5XOH 10b-5 (17 C.F.R. § 240.10b-5); and (2) YLRODWLRQRISection  D RIWKH6HFXULWLHV ([FKDQJH$FWE\WKH,QGLYLGXDO'HIHQGDQWV'RF๠H6$&DOOHJHVD&ODVV3HULRG EHWZHHQ'HFHPEHUWKURXJK'HFHPEHULQFOXVLYHˆ 2Q'HFHPEHUWKH,QGLYLGXDO'HIHQGDQWV¿OHGDPRWLRQWRGLVPLVVWKH 6$&LQLWVHQWLUHW\'RF ๠H,QGLYLGXDO'HIHQGDQWVFRQWHQGWKDWWKH6$&VKRXOGEH GLVPLVVHG³IRUWKHVDPHUHDVRQVWKLV&RXUWGLVPLVVHGWKHSULRUFRPSODLQW´'RFDW  II. LEGAL STANDARDS A. Rule 12(b)(6) :KHQUXOLQJRQDPRWLRQWRGLVPLVVSXUVXDQWWR5XOH E  WKH&RXUWPXVW DFFHSWDOOIDFWXDODOOHJDWLRQVLQWKHFRPSODLQWDVWUXHDQGGUDZDOOUHDVRQDEOHLQIHUHQFHV LQWKHSODLQWL൵¶VIDYRU See Koch v. Christie’s International PLC, 699 F.3d 141, 145 (2d &LU . +RZHYHUWKH&RXUWLVQRWUHTXLUHGWRFUHGLW³PHUHFRQFOXVRU\VWDWHPHQWV´RU ³>W@KUHDGEDUHUHFLWDOVRIWKHHOHPHQWVRIDFDXVHRIDFWLRQ´ Ashcroft v. Iqbal, 556 U.S. 662   FLWLQJBell Atlantic Corporation v. Twombly, 550 U.S. 544, 555 (2007)). ³7RVXUYLYHDPRWLRQWRGLVPLVVDFRPSODLQWPXVWFRQWDLQVX൶FLHQWIDFWXDOPDWWHU . . to µVWDWHDFODLPWRUHOLHIWKDWLVSODXVLEOHRQLWVIDFH¶´ Id. DW TXRWLQJTwombly, 550 U.S. at 570). $FODLPLVIDFLDOO\SODXVLEOH³ZKHQWKHSODLQWL൵SOHDGVIDFWXDOFRQWHQWWKDW 11 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 12 of 39 DOORZVWKHFRXUWWRGUDZWKHUHDVRQDEOHLQIHUHQFHWKDWWKHGHIHQGDQWLVOLDEOHIRUWKH PLVFRQGXFWDOOHJHG´ Id. FLWLQJTwombly, 550 U.S. at 556). 0RUHVSHFL¿FDOO\WKH SODLQWL൵PXVWDOOHJHVX൶FLHQWIDFWVWRVKRZ³PRUHWKDQDVKHHUSRVVLELOLW\WKDWD GHIHQGDQWKDVDFWHGXQODZIXOO\´ Id. ,IWKHSODLQWL൵KDVQRW³QXGJHG>KLV@FODLPVDFURVV WKHOLQHIURPFRQFHLYDEOHWRSODXVLEOH>WKH@FRPSODLQWPXVWEHGLVPLVVHG´ Twombly, 550 U.S. at 570. ๠HTXHVWLRQLQD5XOH E  PRWLRQWRGLVPLVV³LVQRWZKHWKHUDSODLQWL൵ZLOO XOWLPDWHO\SUHYDLOEXWZKHWKHUWKHFODLPDQWLVHQWLWOHGWRR൵HUHYLGHQFHWRVXSSRUWWKH FODLPV´ Sikhs for Justice v. Nath )6XSSG  6'1<  TXRWLQJ Villager Pond, Inc. v. Town of Darien)G G&LU   ³>7@KHSXUSRVH RI)HGHUDO5XOHRI&LYLO3URFHGXUH E  µLVWRWHVWLQDVWUHDPOLQHGIDVKLRQWKH IRUPDOVX൶FLHQF\RIWKHSODLQWL൵¶VVWDWHPHQW RIDFODLPIRUUHOLHIZLWKRXWUHVROYLQJD FRQWHVWUHJDUGLQJLWVVXEVWDQWLYHPHULWV¶´DQGZLWKRXWUHJDUGIRUWKHZHLJKWRIWKH HYLGHQFHWKDWPLJKWEHR൵HUHGLQVXSSRUWRIWKHSODLQWL൵¶VFODLPV Halebian v. Berv, 644 )G G&LU  TXRWLQJGlobal Network Communications, Inc. v. City of New York)G G&LU  )XUWKHUPRUH³RQO\DFRPSODLQWWKDWVWDWHV DSODXVLEOHFODLPIRUUHOLHIVXUYLYHVDPRWLRQWRGLVPLVV´DQG³>G@HWHUPLQLQJZKHWKHUD FRPSODLQWVWDWHVDSODXVLEOHFODLPIRUUHOLHIZLOO . EHDFRQWH[W-VSHFL¿FWDVNWKDW UHTXLUHVWKHUHYLHZLQJFRXUWWRGUDZRQLWVMXGLFLDOH[SHULHQFHDQGFRPPRQVHQVH´ Iqbal, 556 U.S. at 679. B. Rule 9(b) %HFDXVHFODLPVXQGHUSection  E RIWKH([FKDQJH$FWDQG5XOHE-5 WKHUHXQGHUVRXQGLQIUDXGWKH\DUHVXEMHFWWRWKHKHLJKWHQHGSOHDGLQJUHTXLUHPHQWVRI FedHUDO RXOHRI Civil PURFHGXUH E DQGWKH3SLRA. Novak v. Kasaks, 216 F.3d 300, 306– G&LU  5XOH E UHTXLUHVWKDWWKHFRPSODLQW³VWDWHZLWKSDUWLFXODULW\WKH FLUFXPVWDQFHVFRQVWLWXWLQJIUDXG´ Fed. R. Civ. P. 9(b). 7RVDWLVI\WKDWUHTXLUHPHQWWKH FRPSODLQWPXVW ³  VSHFLI\WKHVWDWHPHQWVWKDWWKHSODLQWL൵FRQWHQGVZHUHIUDXGXOHQW 12 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 13 of 39 (2) LGHQWLI\WKHVSHDNHU   VWDWHZKHUHDQGZKHQWKHVWDWHPHQWVZHUHPDGHDQG   H[SODLQZK\WKHVWDWHPHQWVZHUHIUDXGXOHQW´ ATSI Communications, Inc. v. Shaar Fund, Limited )G  G&LU  FLWLQJNovak, 216 F.3d at 306). ๠H36/5$ LPSRVHVVLPLODUUHTXLUHPHQWVRQFODLPVEURXJKWXQGHUWKH([FKDQJH$FW  ³WKHFRPSODLQW VKDOOVSHFLI\HDFKVWDWHPHQWDOOHJHGWRKDYHEHHQPLVOHDGLQJWKHUHDVRQRUUHDVRQVZK\ WKHVWDWHPHQWLVPLVOHDGLQJDQGLIDQDOOHJDWLRQUHJDUGLQJWKHVWDWHPHQWRURPLVVLRQLV PDGHRQLQIRUPDWLRQDQGEHOLHIWKHFRPSODLQWVKDOOVWDWHZLWKSDUWLFXODULW\DOOIDFWVRQ ZKLFKWKDWEHOLHILVIRUPHG´ 86&†X-4(b)(1). ๠H36/5$IXUWKHUUHTXLUHVWKDW WKHFRPSODLQW³VWDWHZLWKSDUWLFXODULW\IDFWV JLYLQJULVHWRDVWURQJLQIHUHQFHWKDWWKH GHIHQGDQWDFWHGZLWKWKHUHTXLUHGVWDWHRIPLQG´ZLWKUHVSHFWWRHDFKDOOHJHG PLVVWDWHPHQWRURPLVVLRQ Id. †X-4(b)(2)(A). $FRPSODLQWZLOOVXUYLYHXQGHUWKDW KHLJKWHQHGVWDQGDUG³RQO\LIDUHDVRQDEOHSHUVRQZRXOGGHHPWKHLQIHUHQFHRIVFLHQWHU FRJHQWDQGDWOHDVWDVFRPSHOOLQJDVDQ\RSSRVLQJLQIHUHQFHRQHFRXOGGUDZIURPWKH IDFWVDOOHJHG´ Tellabs, Inc. v. Makor Issues & Rights, Limited, 551 U.S. 308, 324 (2007). C. External Documents ,QUHVROYLQJDPRWLRQWRGLVPLVVXQGHU5XOH E  FRXUWVJHQHUDOO\PD\QRW FRQVLGHUPDWHULDOVH[WULQVLFWRWKHFRPSODLQW Fed. R. Civ. P. 12(d). +RZHYHUWKDWUXOHLV QRWDEVROXWH ,QDGGLWLRQWRWKHIDFWVDOOHJHGLQWKHFRPSODLQWFRXUWV³PD\FRQVLGHUDQ\ ZULWWHQLQVWUXPHQWDWWDFKHGWRWKHFRPSODLQWVWDWHPHQWVRUGRFXPHQWVLQFRUSRUDWHGLQWR WKHFRPSODLQWE\UHIHUHQFHOHJDOO\UHTXLUHGSXEOLFGLVFORVXUHGRFXPHQWV¿OHGZLWKWKH SEC, and dRFXPHQWVSRVVHVVHGE\RUNQRZQWRWKHSODLQWL൵DQGXSRQZKLFKLWUHOLHGLQ EULQJLQJWKHVXLW´ ATSI Communications, 493 F.3d at 98. &RXUWVPD\DOVRFRQVLGHU ³PDWWHUVRIZKLFKMXGLFLDOQRWLFHPD\EHWDNHQ´ Goel v. Bunge, Limited, 820 F.3d 554,   G&LU  FLWDWLRQRmitted). ๠H&RXUWPD\DOVR³WDNHMXGLFLDOQRWLFHRISXEOLF GLVFORVXUHGRFXPHQWVWKDWPXVWEH¿OHGZLWKWKH>6(&@DQGGRFXPHQWVWKDWERWKµEHDURQ WKHDGHTXDF\¶RI6(&GLVFORVXUHVDQGDUHµSXEOLFGLVFORVXUHGRFXPHQWVUHTXLUHGE\ODZ¶´ Silsby v. Icahn)6XSSG 6'1<) (TXRWLQJ Kramer v. Time 13 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 14 of 39 Warner, Inc., 937 F.2d 767, 773– G&LU  , Dৼ’d sub nom. Lucas v. Icahn, 616 F. $SS¶[ G&LU ; see also In re Bank of America AIG Disclosure Securities Litigation )6XSSG 6'1< Dৼ’d)$SS¶[  G&LU 2014). +RZHYHUWKH&RXUWFDQFRQVLGHUDFRPSDQ\¶VSXEOLF¿OLQJVZLWKWKH6(&³µRQO\ WRGHWHUPLQHZKDWWKHGRFXPHQWVVWDWHG¶DQGµQRWWRSURYHWKHWUXWKRIWKHLUFRQWHQWV¶´ Roth v. Jennings )G   G&LU (HPSKDVLVRPLWWHG) TXRWLQJKramer, 937 F.2d at 774). III. DISCUSSION A. Judicial Notice of External Documents ๠H,QGLYLGXDO'HIHQGDQWVDWWDFK5 GRFXPHQWVWRWKH'HFODUDWLRQRI-DVRQ& +HJWLQVXSSRUWRIWKHLUPRWLRQWRGLVPLVV See Doc. 81. ๠H6$&QHLWKHU citeV nRUUHIHUV WRVL[RIWKHDWWDFKHGGRFXPHQWV ƒ ([KLELW - \@ KHDYLO\XSRQLWVWHUPVDQGH൵HFW´ DiFolco, 622 F.3d at 111 TXRWLQJ0DQJLD¿FRY Blumenthal, 471 F.3d 391, 398 (2d &LU +HUHVHFXULWLHV¿OLQJVSDUWLDOO\TXRWHGLQ WKHSACDVZHOODVTXDUWHUO\HDUQLQJVFDOOVDQGUHOHDVHV DUHLQWHJUDOWRWKHDOOHJDWLRQV EDVHGRQVHFXULWLHVIUDXG $FFRUGLQJO\WKHS$&LQFRUSRUDWHVWKHVHGRFXPHQWVE\ UHIHUHQFH DQGWKH&RXUWZLOOFRQVLGHUWKHPLQGHFLGLQJWKHSUHVHQWPRWLRQ 14 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 15 of 39 5HJDUGLQJWKHGRFXPHQWVQRWFLWHGLQWKHSAC—3URMHFW$WKHQD@ZKRVHHQWLUHSXUSRVHZDVWRUDLVH H[WHUQDOFDSLWDORUVHOOWKHEXVLQHVVGXHWRWKHFRPSDQ\¶VGLUHFRQGLWLRQ´Id. at 15. 3ODLQWL൵VDUJXHWKDWWKHVHWZRVLPXOWDQHRXVHYHQWVVWDWHPHQWVWKDW)DUIHWFKGLGQRW³QHHG RXWVLGHFDSLWDO´ZKLOH³DFWLYHO\VHHNLQJRXWVLGHFDSLWDO´PDNHWKHVWDWHPHQWV IUDXGXOHQWO\PLVOHDGLQJId. ๠H,QGLYLGXDO'HIHQGDQWVFRXQWHUWKDWQRZKHUHLQWKH6$& do DQ\RIWKH,QGLYLGXDO'HIHQGDQWV FODLPWKDW³)DUIHWFKZDVVHOI-IXQGLQJDQGGLGQRW QHHGH[WHUQDOFDSLWDO´EXWUDWKHU, WKDWWKLVZDV3ODLQWL൵V¶ ³RZQVXEMHFWLYH µLQWHUSUHWDWLRQ¶´ DQGWKDWWKH&RPSDQ\ZDVFOHDUWKDWLWPD\SXUVXHDGGLWLRQDO¿QDQFLQJ Doc. 84 at 7. ๠H\IXUWKHUDUJXH WKDW3ODLQWL൵VLPSURSHUO\ DWWHPSWWRGHYHORSIUDXGE\ KLQGVLJKWEHFDXVH³[a]t bottom, WKH6$&DOOHJHVWKDWEHFDXVH)DUIHWFKXOWLPDWHO\ZDV 15 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 16 of 39 SODFHGLQWROLTXLGDWLRQLQHDUO\'HIHQGDQWVPXVWKDYHNQRZQWKDWWKHLU¿QDQFLDO SURMHFWLRQVJRLQJEDFNWR'HFHPEHUZHUHIDOVH´ Id. at 6. $WWKHRXWVHW ³LWLVZHOO-VHWWOHGWKDWµIUDXGE\KLQGVLJKW¶LVQRWDFRJQL]DEOHWKHRU\ RIUHOLHI´ In re PetroChina Co. Limited Securities Litigation)6XSSG, 366 (S.D.N.Y. 2015) TXRWLQJ In re Longtop Financial Technologies Limited Securities Litigation, 910 )6XSSG561, 579 (S.D.N.Y. 2012)). 3ODLQWL൵V VWDWHWKDWWKH\ do not UHO\RQIUDXGE\KLQGVLJKW; UDWKHUWKH\DUJXHWKDWWKHSUHVHQWH[LVWHQFHRI3URMHFW$WKHQD PDGHWKHVWDWHPHQWVIDOVHRUPLVOHDGLQJZKHQWKH ,QGLYLGXDO'HIHQGDQWV made WKHP. Doc. 83 at 14–15. 3ODLQWL൵VFRQWHQGWKDWWKLVLQLWLDWLYHZDVLQFRQVLVWHQWZLWKWKH,QGLYLGXDO 'HIHQGDQWV¶VWDWHPHQWVWKDW³)DUIHWFKZDV¿QDQFLDOO\VHFXUHVHOI-IXQGLQJDQGQRWLQ QHHGRIH[WHUQDOFDSLWDO´EHFDXVH3URMHFW$WKHQD¶V³VROHSXUSRVHZDVWRUDLVHFDSLWDO WKURXJKH[WUDRUGLQDU\WUDQVDFWLRQV´Id. at 22–23. +RZHYHUWKH\IDLOWRVKRZZK\WKH H[LVWHQFHRIDSODQWRHQJDJHLQDWDNH-SULYDWHWUDQVDFWLRQPHDQVWKDWWKHDOOHJHG VWDWHPHQWVZHUHLQIDFWIDOVHRUPLVOHDGLQJ3ODLQWL൵VFLWLQJ Meyer v. Jinkosolar Holdings Co., 761 F.3d 245, 251–252 G&LU DUJXHWKDWSXUVXLWRI3URMHFW$WKHQD LVDFWLRQDEOHEHFDXVHLW³FRQWUDGLFWV>)DUIHWFK¶V@SXEOLFQDUUDWLYH´PDNLQJLWDQ DFWLRQDEOHRPLVVLRQ, Doc. 83 at 23. ๠HSUREOHP ZLWKWKLVDUJXPHQWLVWKDWWKH6$&GRHV QRWVX൶FLHQWO\DOOHJHWKDWWKH,QGLYLGXDO'HIHQGDQWVVDLGWKDW)DUIHWFKZDVVHOI-IXQGLQJ DQGQRWLQQHHGRIRXWVLGHFDSLWDO. 5 ๠HVWDWHPHQWV3ODLQWL൵VFLWHGRQRWPDNHWKRVH 4F DVVXUDQFHVDQGDUHHLWKHUQRQ-DFWLRQDEOHIRUZDUG-ORRNLQJVWDWHPHQWVQRQ-actionable RSLQLRQVWDWHPHQWVRUQRQ-DFWLRQDEOHSX൵HU\ ˆˆ–86. ³,PSRUWDQWO\WKHQHZ 5 ,QIDFWLQ)DUIHWFK¶V)RUP-)WKH\H[SOLFLWO\VWDWHG ³,IZHDUHXQDEOHWRJHQHUDWHVX൶FLHQWFDVK ÀRZVIURPRSHUDWLRQVLQWKHIXWXUHZHPD\KDYHWRREWDLQDGGLWLRQDO¿QDQFLQJ´'RF-12 at 103. ,QWKH 4(DUQLQJV5HOHDVHWKH\VWDWHG ³>$@Q\SURMHFWLRQVRIIXWXUHFDVKQHHGVDQGFDVKÀRZVDUHVXEMHFW WRLQKHUHQWXQFHUWDLQW\ ,QWKHRUGLQDU\FRXUVHZHFRQWLQXDOO\HYDOXDWHRSSRUWXQLtiHVWRUDLVHDGGLtional HTXLW\RUGHEWREWDLQFUHGLWIDFLOLtiHVHQWHULQWROHDVLQJDUUDQJHPHQWVHQWHULQWR¿QDQFLQJREOLJDtiRQV UHSXUFKDVHFRPPRQVWRFNRUUHSXUFKDVHUH¿QDQFHRURWKHUZLVHUHVWUXFWXUHGHEWIRUVWUDWHJLFUHDVRQVRUWR IXUWKHUVWUHQJWKHQRXU¿QDQFLDOSRVLtion.´'RF-18 at 11. 16 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 17 of 39 DOOHJDWLRQVGRQRWFKDQJHZKDWWKHGHIHQGDQWVDFWXDOO\VDLG´In re Adobe Inc. Securities Litigation, No. 23 Civ. 9260 (JGK), 2025 WL 3124312, at *12 (S.D.N.Y. Nov. 7, 2025). ,QVWHDG3ODLQWL൵VUHO\RQWKHWKHRU\WKat 3URMHFW$WKHQD³DIRUPDOSURFHVVWR UDLVHFDSLWDORUVHOOWKHEXVLQHVV,´ LPSXWHV OLDELOLW\RQto WKH,QGLYLGXDO'HIHQGDQWV, UHDVRQLQJWKDWWKHSXEOLF VWDWHPHQWVDERXWWKH¿QDQFLDO ZHOO-EHLQJRI)DUIHWFK ZHUH PDWHULDOO\ PLVOHDGLQJEHFDXVHWKH\ IDLOHGWRGLVFORVHWKHH[LVWHQFHRI3URMHFW$WKHQD. Doc. 83 at 8. %XWWKHSXUVXLWRIDWDNH-SULYDWHWUDQVDFWLRQGRHVQRWQHFHVVDULO\PHDQ a FRPSDQ\LVIDFLQJDOLTXLGLW\FULVLV $WEHVW3ODLQWL൵VDUJXHWKDWWKHVWDWHPHQWVPDGHE\WKH,QGLYLGXDO'HIHQGDQWV FUHDWHGWKHEURDGHUQDUUDWLYH WKDWWKH&RPSDQ\ZDVVHOI-IXQGLQJ and did not need H[WHUQDOFDSLWDO+RZHYHU³3ODLQWL൵V¶VXEMHFWLYHLQWHUSUHWDWLRQRURSLQLRQFDQQRW VXSSRUWWKHLUFODLPV´ Davison v. Ventrus Biosciences, Inc., No. 13 Civ. 3119 (RMB), 2014 WL 1805242, at *8 6'1<0D\ :LWKRXWD൶UPDWLYHVWDWHPHQWVIURP DQ\RIWKH,QGLYLGXDO'HIHQGDQWVWKDW)DUIHWFKZDVVHOI-IXQGLQJ DQGGLGQRWQHHGH[WHUQDO FDSLWDO3ODLQWL൵VIDFHDQXSKLOOEDWWOHWRSURYHWKHLUFODLPV a. Omissions ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDW WKH\KDGQRGXW\WRGLVFORVH3URMHFW$WKHQD EHFDXVHLWZDVDQ³XQFRQVXPPDWHGWUDQVDFWLRQ>@´'RF80 at 23 n.8. 3ODLQWL൵VDUJXH WKDWWKH\GLGKDYHDGXW\WRGLVFORVH3URMHFW$WKHQDEHFDXVHLWZDVDGHOLEHUDWHVWUDWHJLF initiative LQWHQGHGWR³UDLVHFDSLWDOWKURXJKSULYDWL]DWLRQRUDVVHWVDOHV.´ Doc. 83 at 22. 3ODLQWL൵VDVVHUWWKDWWKHGXW\DURVHEHFDXVH)DUIHWFKDVVXUHGLQYHVWRUVRILWV³¿QDQFLDO VHOI-VX൶FLHQF\ZKLOHVHFUHWO\SXUVXLQJWKHRSSRVLWH´Id. ๠HUHDUHWZRDFWLRQDEOHWKHRULHVXQGHUSection  E DQG5XOHE-RIWKH ([FKDQJH$FW  (1) DQDFWXDOVWDWHPHQWWKDWLV³XQWUXHRXWULJKW´DQG  DKDOI-WUXWK ZKLFKLVDUHSUHVHQWDWLRQWKDWVWDWHVWKHWUXWKRQO\VRIDUDVLWJRHVZKLOHRPLWWLQJFULWLFDO TXDOLI\LQJLQIRUPDWLRQ *LPSHOYୡH+DLQ&HOHVWLDO*URXS,QF)WK G &LU  $FODVVLFH[DPSOHRI a KDOI-WUXWKLV³WKHVHOOHUZKRUHYHDOVWKDWWKHUHPD\EH 17 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 18 of 39 WZRQHZURDGVQHDUDSURSHUW\KHLVVHOOLQJEXWIDLOVWRGLVFORVHWKDWDWKLUGSRWHQWLDOURDG PLJKWELVHFWWKHSURSHUW\´ Universal Health Services, Inc. v. United States, 579 U.S. 176, 188–89 (2016). $QRWKHUH[DPSOHLVZKHQDFKLOGDWHDZKROHFDNHEXWRQO\WROGKLV SDUHQWVWKDWKH³KDGGHVVHUW´ Gimpel)WKDWQ TXRWLQJMacquarie Infrastructure Corp. v. Moab Partners, L. P., 601 U.S. 257, 264 (2024)). $QRPLVVLRQLVDFWLRQDEOHRQO\ZKHQWKH FRPSDQ\ LV VXEMHFW to a GXW\ to GLVFORVH WKHRPLWWHGIDFWV See In re Time Warner Inc. Securities Litigation, 9 F.3d 259, 267 (2d &LU   ๠HPHUH RPLVVLRQRIPDWHULDOLQIRUPDWLRQZLWKRXWDGXW\WRGLVFORVH LV not DFWLRQDEOHXQGHU6HFWLRQ E DQG5XOHE-5. Macquarie, 601 U.S. at %XWRQFHD FRPSDQ\VSHDNVRQDVXEMHFWPDWWHULWDVVXPHVDGXW\WRPDNH ERWK DFFXUDWHDQG FRPSOHWH VWDWHPHQWV VRWKH\DUH QRWPLVOHDGLQJZKHQFRQVLGHULQJ WKHFLUFXPVWDQFHVin ZKLFKWKH\ZHUHPDGHGimpel)WKDW38–39. +RZHYHUDFRPSDQ\GRHVQRW KDYHDGXW\WRGLVFORVHWKDWLWLVFRQWHPSODWLQJDWUDQVDFWLRQ. In re Miniso Group Holding Limited Securities Litigation, No. 22 Civ. 9864 (ER), 2026 WL 879334, at *14 (S.D.N.Y. 0DU  FLWLQJIn re Centerline Holding Co. Securities Litigation)$SS¶[   G&LU ) ¿QGLQJQRD൶UPDWLYHGXW\WRGLVFORVHIXWXUHSODQVZKHQWKH RPLVVLRQGLGQRWUHQGHURWKHUD൶UPDWLYHVWDWHPHQWVPLVOHDGLQJ see Actio v. IMCERA Group, Inc.)G G&LU  ¿QGLQJQRGXW\WRGLVFORVHQHJDWLYH FRQVHTXHQFHVIURPDIDLOHGIDFWRU\LQVSHFWLRQZKHUHLWZDVQRWD³IRUHJRQHFRQFOXVLRQ´ WKDWFRQVHTXHQFHVZRXOGPDWHULDOL]H). 6SHFL¿FDOO\D FRPSDQ\LVQRWUHTXLUHG WRGLVFORVH WKDWLW³FRQVLGHUHGDWDNH-SULYDWHWUDQVDFWLRQDPRQJRWKHUSRWHQWLDOWUDQVDFWLRQV . . . ´ .UDIWYୡLUG&RDVW0LVWUHDP, No. 19 Civ. 9398 (LJL), 2021 WL 860987, at *18 6'1<0DU . )XUWKHUPRUHGLVFXVVLQJDWRSLF³G>RHV@QRWWULJJHUDJHQHUDOL]HGGXW\UHTXLULQJ GHIHQGDQWVWRGLVFORVHWKHHQWLUHFRUSXVRIWKHLUNQRZOHGJHUHJDUGLQJ>LW@.´ In re Morgan Stanley Information Fund Securities Litigation )G G&LU  3ODLQWL൵VDOOHJHWKDW)DUIHWFKKDGDGXW\WRGLVFORVH3URMHFW$WKHQDEHFDXVHRIWKH 18 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 19 of 39 ,QGLYLGXDO'HIHQGDQWV¶³GHFLVLRQWRVSHDNDERXWWKHYHU\VXEMHFWWKRVHGLVFXVVLRQV FRQWUDGLFWHG.´ Doc. 83 at 22. %XWDVGLVFXVVHG3ODLQWL൵VIDLOWRVKRZKRZ3URMHFW $WKHQDFRQWUDGLFWVWKHD൶UPDWLYHVWDWHPHQWVWKH,QGLYLGXDO'HIHQGDQWVPDGH3XUVXLQJ DWDNH-SULYDWHWUDQVDFWLRQGRHVQRWQHFHVVDULO\PHDQDFRPSDQ\LVLQDOLTXLGLW\FULVLV 3ODLQWL൵VDUJXHWKDWZKHQDcoPSDQ\SXUVXHV D³IRUPDOVWUDWHJLFSURFHVV µLW PD\FRPHXQGHUDQREOLJDWLRQWRGLVFORVHRWKHUDSSURDFKHVWRUHDFKLQJWKHJRDO¶´Id. at  TXRWLQJIn re Time Warner, 9 F.3d at 268 +RZHYHUIn re Time Warner LVIDFWXDOO\ GLVWLQFWEHFDXVHWKH6HFRQG&LUFXLWGHWHUPLQHG DFRPSDQ\KDGDGXW\WRGLVFORVHZKHQLW ³HPEDUNHGRQDKLJKO\SXEOLFL]HGFDPSDLJQ´DERXWLWVEXVLQHVVVWUDWHJ\DQGWKHQ SULYDWHO\ SXUVXHG, and XOWLPDWHO\HQDFWed, DQHQWLUHO\GL൵HUHQWVWUDWHJ\. In re Time Warner, 9 F.3d at 262. 6 3ODLQWL൵VDUJXe WKDW3URMHFW $WKHQDSDLUHGZLWKWKH,QGLYLGXDO 5F 'HIHQGDQWV¶VWDWHPHQWV LVDQDORJRXVWRWKHIDFWVRIIn re Time Warner'RFDWEXW LWLVXQFOHDUZKDWEXVLQHVVVWUDWHJ\ )DUIHWFK ZDVSXEOLFO\SXUVXLQJZLWKZKLFK 3URMHFW $WKHQDLVVXSSRVHGO\LQFRQVLVWHQW3ODLQWL൵V¶FRUHDOOHJDWLRQLVWKDWWKH,QGLYLGXDO 'HIHQGDQWV VWDWHGWKDW)DUIHWFKZDV³VHOI-IXQGLQJDQGGLGQRWQHHGH[WHUQDOFDSLWDO´ ZKLOHVHFUHWO\SXUVLQJ3URMHFW$WKHQD, id. at 8QRWWKDW)DUIHWFKSXEOLFO\FODLPHGWKDWit ZDVSXUVXLQJDVSHFL¿FEXVLQHVVVWUDWHJ\DQGWKHQSULYDWHO\HQJDJHGLQDGL൵HUHQW VWUDWHJ\. $VVXFK3ODLQWL൵VIDLOWRDOOHJHWKDW)DUIHWFKKDGDGXW\WRGLVFORVH3URMHFW $WKHQD :LWKRXWHVWDEOLVKLQJDGXW\WRGLVFORVH3ODLQWL൵V¶ DUJXPHQWVDERXWZK\WKe RPLVVLRQRI3URMHFW$WKHQDZRXOGEHPDWHULDOWRDUHDVRQDEOHLQYHVWRUid. at 23, DUH moot. See Macquarie, 601 U.S. at 265 ³6LOHQFHDEVHQWDGXW\WRGLVFORVHLVQRW 6 In re Time Warner LVDOVRGLVWLQJXLVKDEOHEHFDXVHWKHFRXUWUHOLHGRQConley¶VQRZRXWGDWHGVWDQGDUG KROGLQJWKDWD FRXUWVKRXOG³SHUPLWDFRPSODLQWWRVXUYLYHGLVPLVVDOXQOHVV . . . µLWDSSHDUVEH\RQGGRXEW WKDWWKHSODLQWL൵FDQSURYHQRVHWRIIDFWVLQVXSSRUWRIKLVFODLPZKLFKZRXOGHQWLWOHKLPWRUHOLHI¶´In re Time Warner )GDW TXRWLQJ Conley v. Gibson, 355 U.S. 41, 45–46 (1957)). BXWWKH6XSUHPH&RXUW KDVFODUL¿HGWKDWGLVWULFWFRXUWV VKRXOGGLVPLVVDFRPSODLQWLILWLVQRW³SODXVLEOHRQLWVIDFH.´ Twombly, 550 U.S. at 570. 19 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 20 of 39 PLVOHDGLQJXQGHU5XOHE–´ TXRWLQJBasic Inc. v. Levinson, 485 U.S. 224, 239 n.17 (1988))). 3ODLQWL൵VKDYHIDLOHGWRVX൶FLHQWO\DOOHJHDQDFWLRQDEOHRPLVVLRQWKHRU\ b. Non-Actionable Forward-Looking Statements ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDWWKHVWDWHPHQWV3ODLQWL൵VSRLQWWRDUH ³TXLQWHVVHQWLDOIRUZDUG-ORRNLQJVWDWHPHQWV,´ ZKLFK DUH QRWDFWLRQDEOHEHFDXVHWKH\IDOO XQGHUWKH36/5$¶V VDIHKDUERU SURYLVLRQV. Doc. 80 at 17–18. 7RVXSSRUWWKLVSRLQWWKH ,QGLYLGXDO'HIHQGDQWVDUJXHWKDWHDFKRI WKHVWDWHPHQWVZHUHLGHQWL¿HGDVIRUZDUG- ORRNLQJ, LQFOXGHGPHDQLQJIXOFDXWLRQDU\ODQJXDJHDQGQRWHGULVNIDFWRUVWKDWFRXOGDOWHU WKHSURMHFWLRQV. Id. at 18–20. PlaLQWL൵VFRQWHQGWKDWWKHPLVUHSUHVHQWDWLRQVDQG RPLVVLRQVGRQRWIDOOXQGHUWKH36/5$¶V VDIHKDUERUSURYLVLRQV EHFDXVH(1) WKH\ GLVFXVVHGFXUUHQWFRQGLWLRQVand (2) WKHFDXWLRQDU\ODQJXDJHZDUQHGRIWKHSRVVLEOH QHHGIRUIXWXUH¿QDQFLQJZKLOH3URMHFW$WKHQDUHYHDOVWKDW)DUIHWFK ZDVDFWLYHO\ SXUVXLQJ¿QDQFLQJLQWKHSUHVHQW. Doc. 83 at 16–18. ๠H36/5$¶VVDIHKDUERUSURYLVLRQSURYLGHVWKDWQROLDELOLW\DWWDFKHVWRa IRUZDUG-ORRNLQJVWDWHPHQWLILWLV (1) ³LGHQWL¿HGDVDIRUZDUG-ORRNLQJVWDWHPHQWDQGLV DFFRPSDQLHGE\PHDQLQJIXOFDXWLRQDU\VWDWHPHQWV´  ³LPPDWHULDO´RU   ³WKH SODLQWL൵IDLOVWRSURYHWKDW>LW@ZDVPDGHZLWKDFWXDONQRZOHGJHE\WKDWSHUVRQWKDW WKHVWDWHPHQWZDVIDOVHRUPLVOHDGLQJ.´86&†X–5(c)(1). ๠H6HFRQG&LUFXLWKDV KHOGWKDWVWDWHPHQWVDUHIRUZDUG-ORRNLQJLIWKHVSHDNHUXVHVOLQJXLVWLFFXHVWRVXJJHVWWKH VWDWHPHQWLVIRUZDUG-ORRNLQJZKHQ WKH\DUH DFFRPSDQLHGE\DQH[SODQDWLRQWKDWWKH FRPSDQ\LQWHQGVWRPDNHIRUZDUG-ORRNLQJVWDWHPHQWVSlayton v. American Express Co., 604 F.3d 758, 769 G&LU . )RUH[DPSOHVWDWHPHQWVDERXWDFRPSDQ\¶VXSFRPLQJ JRDOVDUHIRUZDUG-ORRNLQJVWDWHPHQWVSURWHFWHGE\WKH36/5$see In re Adient plc Securities Litigation1R&LY  5$ :/DW  6'1<$SU  DVDUHVWDWHPHQWVDERXWDFRPSDQ\¶VH[SHFWHG³DELOLW\WRUDLVHFDVKDQGPDLQWDLQD FDVKEDODQFHVX൶FLHQWWRIXQGFRQWLQXHGLQYHVWPHQWV´Jones v. Perez)$SS¶[  G&LU  20 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 21 of 39 ³7RDYDLOWKHPVHOYHVRIVDIHKDUERUSURWHFWLRQXQGHUWKHPHDQLQJIXOFDXWLRQDU\ ODQJXDJHSURQJGHIHQGDQWVPXVWGHPRQVWUDWHWKDWWKHLUFDXWLRQDU\ODQJXDJHZDVQRW ERLOHUSODWHDQGFRQYH\HGVXEVWDQWLYHLQIRUPDWLRQ´ Slayton, 604 F.3d at 772; see Villare v. Abiomed, Inc., No. 19 Civ. 7319 (ER), :/ DW  6'1<6HS 2021) (H[SODLQLQJWKDW³IRUZDUG-ORRNLQJ´VWDWHPHQWV DUH QRWDFWLRQDEOHZKHUH ³FDXWLRQDU\ODQJXDJHZDUQ>HG@RIWKHYHU\ULVNVWKDW>SODLQWL൵@DOOHJHVWKDW[d]HIHQGDQWV IDLOHGWRGLVFORVH´ . ,I SODLQWL൵V DUJXHWKDWWKHIRUZDUG-ORRNLQJVWDWHPHQWZDVPDGHZLWK NQRZOHGJHRILWVIDOVLW\SXUVXDQWWRWKHWKLUGSURQJ RIWKHVWDWXWH, WKH\³PXVWVWDWHZLWK SDUWLFXODULW\ERWKWKHIDFWVFRQVWLWXWLQJWKHDOOHJHGYLRODWLRQDQGWKHIDFWVHYLGHQFLQJ VFLHQWHUi.e.WKHGHIHQGDQW¶VLQWHQWLRQWRGHFHLYHPDQLSXODWHRUGHIUDXG´ Slayton, 604 )GDW LQWHUQDOTXRWDWLRQVDQGcitationV omitted). 1RWRQO\PXVWSODLQWL൵V ³SOHDG IDFWVWRVXSSRUWDstrong LQIHUHQFHRIVFLHQWHU´ZKLFKLV³FRJHQWDQGDWOHDVW DV FRPSHOOLQJDVDQ\RSSRVLQJLQIHUHQFHRIQRQIUDXGXOHQWLQWHQW´EXW³WKHVFLHQWHU UHTXLUHPHQWIRUIRUZDUG-ORRNLQJVWDWHPHQWVLVVWULFWHUWKDQIRUVWDWHPHQWV RIFXUUHQWIDFW´ EHFDXVHLWFDQQRWUHO\RQUHFNOHVVQHVVEXWRQO\³NQRZLQJIDOVLW\´Id. LQWHUQDOTXRWDWLRQV DQGFLWDWLRQVomitted). 3ODLQWL൵VFRQWHQGWKDWWKHVWDWHPHQWVDUHQRWIRUZDUG-ORRNLQJ, SUHFOXGLQJWKH 36/5$¶VVDIHKDUERUSURYLVLRQDOWRJHWKHU, EHFDXVHWKH\DOOHJHWKDWWKH³DVVXUDQFHV RI )DUIHWFK¶VVX൶FLHQWOLTXLGLW\DQGVHOI-IXQGLQJFRPPXQLFDWHFXUUHQWFRQGLWLRQVQRWIXWXUH H[SHFWDWLRQV´'RFDW 7 3ODLQWL൵VZLWKRXWSRLQWLQJWRVSHFL¿FVWDWHPHQWVFLWH 6F SDUDJUDSKV96–RIWKH6$&WRVXSSRUWWKLVSURSRVLWLRQ. Id. 0DQ\RIWKHVWDWHPHQWVLQ WKLVVHFWLRQFRPHIURP)DUIHWFK¶V&DSLWDO0DUNHWV'D\ˆˆ 97–103. 2QWKDWRFFDVLRQ, 1HYHVUHSUHVHQWHGWKDWKHH[SHFWHG)DUIHWFK³WRFRQWLQXHRQDSDWKRIJURZWKSUR¿WDEOH JURZWKDQGFDVKÀRZJHQHUDWLRQ´ˆ -RUGDQVWDWHG ³>:@HKDYHFOHDUYLVLELOLW\WKDW 7 3ODLQWL൵VDOVRQRWHWKDWDVWDWHPHQWPD\FRQWDLQERWKIRUZDUG-ORRNLQJDQGQRQ-IRUZDUG-ORRNLQJ VWDWHPHQWVZKLFKDUHVHYHUDEOHIRUWKLVDQDO\VLV'RFDW TXRWLQJIowa Public Employees’ Retirement System v. MF Global, Limited, 620 F.3d 137, 144 G&LU )+RZHYHU3ODLQWL൵VGRQRW SRLQWWRDQ\VWDWHPHQWWKDWFDQRUVKRXOGEHVHYHUHGId. 21 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 22 of 39 ZHZLOOGHOLYHUQRWRQO\JURZWKEXWVXVWDLQHGSUR¿WDELOLW\DQGSRVLWLYHIUHHFDVKÀRZ PRYLQJIRUZDUG´ˆ3ODLQWL൵VDOOHJHWKDWWKH&DSLWDO0DUNHWV'D\event FUHDWHGWKH IDOVHLPSUHVVLRQWKDW)DUIHWFKZDVFRPPLWWHGWRDFKLHYLQJSUR¿WDELOLW\DQGIUHHFDVKÀRZ WKURXJKRUJDQLFJURZWKRIH[LVWLQJLQYHVWPHQWVˆ'HVSLWHWKLVDOOHJDWLRQ, 3ODLQWL൵V IDLOWRDUJXH ZK\WKHVHVWDWHPHQWVDUHQRWIRUZDUG-ORRNLQJ. $OVRDWWKHVWDUWRI&DSLWDO 0DUNHWV'D\WKHLQWURGXFWRU\VSHDNHUVWDWHG :HZLOODOVREHPDNLQJIRUZDUG-ORRNLQJVWDWHPHQWVWRGD\ $FWXDO UHVXOWV FRXOG GL൵HU PDWHULDOO\ IURP WKRVH IRUZDUG[-ORRNLQJ@ VWDWHPHQWV DQG ZH XQGHUWDNH QR REOLJDWLRQ WR SXEOLFO\ XSGDWH RU UHYLVHWKHP )RUDGLVFXVVLRQRIVRPHRIWKHIDFWRUVWKDWFRXOGFDXVH DFWXDOUHVXOWVWRGL൵HUIURPWKHVHIRUZDUG-ORRNLQJVWDWHPHQWVSOHDVH UHIHU WR RXU 6(& ¿OLQJV :H ZLOO DOVR UHIHU WR FHUWDLQ QRQ-IFRS ¿QDQFLDOPHDVXUHV WKHGHIHQGDQW] PDGHDV IRUZDUG-ORRNLQJDQGZDUQLQJLQYHVWRUVWKDWDFWXDOUHVXOWVFRXOGGL൵HUIURPSURMHFWHG UHVXOWV´ZHUH³VX൶FLHQWO\PHDQLQJIXO´FDXWLRQDU\VWDWHPHQWV  3ODLQWL൵VDOVRDOOHJHWKDWWKH,QGLYLGXDO'HIHQGDQWVPDGH PDWHULDOO\IDOVHQRQ- IRUZDUG-ORRNLQJ VWDWHPHQWVGXULQJDQLQYHVWRUFDOOGLVFXVVLQJ 4ˆˆ–105. 'XULQJWKLVFDOO1HYHVVWDWHG WKDW)DUIHWFKZDV³DQHYHQVWURQJHUDQGPRUHH൶FLHQW RUJDQL]DWLRQ´DQGWKDWKHZDV³PRUHFRQ¿GHQWWKDQHYHU´DERXWWKH&RPSDQ\¶V ³SURVSHFWVWRGHOLYHUJURZWKSUR¿WDELOLW\DQGSRVLWLYHIUHHFDVKÀRZLQDQG EH\RQG´ ˆ 3KDLUVWDWHG: ³๠HZRUNZH¶YHGRQHWKURXJKRXWDQGWKH\HDUV SULRULQYHVWLQJLQRXUFXVWRPHUDQGLQRXUSDUWQHUVKLSVZLWKEUDQGVDQGERXWLTXHVSXWVXV LQDVWURQJSRVLWLRQWRGHOLYHURQRXUJRDOV´ˆ05. $WWKHRXWVHWRIWKLVFDOO 22 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 23 of 39 )DUIHWFKSURYLGHGDVWDWHPHQWWKDWLVVXEVWDQWLDOO\WKHVDPHDVWKHRQHmade on &DSLWDO 0DUNHWV'D\FDXWLRQLQJWKDWVRPHRIWKHVWDWHPHQWVZHUH IRUZDUG-ORRNLQJDoc. 81-10 at 5 (³%HIRUHZHEHJLQZHZRXOGOLNHWRUHPLQG\RXWKDWRXUGLVFXVVLRQVWRGD\ZLOO LQFOXGHIRUZDUG-ORRNLQJVWDWHPHQWV $FWXDOUHVXOWVFRXOGGL൵HUPDWHULDOO\IURPWKRVH LQGLFDWHGLQWKHIRUZDUG-ORRNLQJVWDWHPHQWVDQGIRUZDUG-ORRNLQJVWDWHPHQWVPDGHWRGD\ VSHDNRQO\WRRXUH[SHFWDWLRQVDVRIWRGD\´ . $GGLWLRQDOO\3ODLQWL൵V SRLQWWR WKH )<)RUP-)¿QDQFLDOUHSRUWLQZKLFK )DUIHWFKVWDWHG³:HEHOLHYHWKDWRXUVRXUFHVRIOLTXLGLW\DQGFDSLWDOZLOOEHVX൶FLHQWWR PHHWRXUEXVLQHVVQHHGVIRUDWOHDVWWKHQH[WWZHOYHPRQWKV :HDOVRH[SHFWWKHVH VRXUFHVRIOLTXLGLW\ZLOOEHVX൶FLHQWWRIXQGRXUORQJ-WHUPFRQWUDFWXDOREOLJDWLRQVDQG FDSLWDOQHHGV´ ˆ. /LNHZLVHWKLVVWDWHPHQWZDVSUHFHGHGE\DGHWDLOHGFDXWLRQDU\ VWDWHPHQWLGHQWLI\LQJWKHUHPDUNVDVIRUZDUG-ORRNLQJ'RF-12 at 11 ³๠LV$QQXDO 5HSRUWFRQWDLQVVWDWHPHQWVWKDWFRQVWLWXWHµIRUZDUG-ORRNLQJVWDWHPHQWV¶ZLWKLQWKH PHDQLQJRIWKH>36/5$@ :HLQWHQGVXFKIRUZDUG-ORRNLQJVWDWHPHQWVWREHFRYHUHGE\ WKHVDIHKDUERUSURYLVLRQV . . . . ๠HVHVWDWHPHQWVDUHQHLWKHUSURPLVHVQRUJXDUDQWHHVEXW LQYROYHNQRZQDQGXQNQRZQULVNV . . . WKDWPD\FDXVHRXUDFWXDOUHVXOWVSHUIRUPDQFHRU DFKLHYHPHQWVWREHPDWHULDOO\GL൵HUHQW . . . .´ . 3ODLQWL൵VIXUWKHUDOOHJHWKDWRQ0D\in WKH4(DUQLQJV5HOHDVH -RUGDQVWDWHGWKDWWKH&RPSDQ\³GHOLYHUHGZKDW>LW@VHWRXWWRDFKLHYH . . . . [IWKDV@ VXFFHVVIXOO\QDYLJDWHGWKURXJKXQSUHFHGHQWHGPDFURFKDOOHQJHVDQGWKURXJKFRQWLQXHG IRFXVHGH[HFXWLRQ[it] UHPDLQ>V@ RQWUDFNWRGHOLYHUD\HDURIOX[XU\PDUNHW-EHDWLQJ JURZWKDUHWXUQWRSUR¿WDELOLW\DQGSRVLWLYHIUHHFDVKÀRZ´ ˆ2QFHDJDLQWKLV RHOHDVH ZDVDFFRPSDQLHGE\DQH[WHQVLYHFDXWLRQDU\VWDWHPHQWLGHQWLI\LQJVRPHRIWKH ODQJXDJHDVIRUZDUG-ORRNLQJ'RF-16 at 18 ³๠LVUHOHDVHFRQWDLQVIRUZDUG-ORRNLQJ VWDWHPHQWVZLWKLQWKHPHDQLQJRIWKH [PSLRA]. . . . ๠HVHVWDWHPHQWVDUHQHLWKHU SURPLVHVQRUJXDUDQWHHVEXWLQYROYHNQRZQDQGXQNQRZQULVNVXQFHUWDLQtiHVDQGRWKHU LPSRUWDQWIDFWRUVWKDWPD\FDXVHDFWXDOUHVXOWV . . . WREHPDWHULDOO\GL൵HUHQWIURPDQ\ 23 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 24 of 39 IXWXUHUHVXOWVSHUIRUPDQFHRUDFKLHYHPHQWVH[SUHVVHGRULPSOLHGE\WKHIRUZDUG-ORRNLQJ VWDWHPHQWV . . . .´). )RUWKHVDPHUHDVRQVDVDERYHWKHVHVWDWHPHQWVVDWLVI\WKH¿UVWSURQJ RIWKH36/5$¶VVDIHKDUERUSURYLVLRQSURWHFWLQJWKH IRUZDUG-ORRNLQJVWDWHPHQWVWKDWDUH ³LGHQWL¿HGDVDIRUZDUG-ORRNLQJVWDWHPHQWDQG>DUH@DFFRPSDQLHGE\PHDQLQJIXO FDXWLRQDU\VWDWHPHQWV´86&†X–5(c)(1). 3ODLQWL൵VQH[WDUJXHWKDWHYHQLIWKHVWDWHPHQWVZHUHDFFRPSDQLHGE\FDXWLRQDU\ ODQJXDJHWKH\VWLOOdo QRWIDOOXQGHUWKH36/5$¶VVDIHKDUERU EHFDXVHWKH\DOOHJHWKDWWKH e[LVWHQFHRI3URMHFW$WKHQDUHYHDOVWKDWWKH,QGLYLGXDO'HIHQGDQWVNQHZWKHVHVWDWHPHQWV WREHIDOVH. Doc. 83 at 16–6SHFL¿FDOO\3ODLQWL൵VFRQWHQGWKDW WKH ,QGLYLGXDO 'HIHQGDQWV¶ GLVFORVXUHVWKDW)DUIHWFK PD\QHHGIXWXUH¿QDQFLQJZDVFRQWUDGLFWHGE\WKHLU ³present FDSLWDO-UDLVLQJH൵RUWV´ Id. at 17. ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDWWKH SOHDGLQJVGRQRWDGHTXDWHO\DOOHJH WKDWWKH\KDG³µDFWXDONQRZOHGJH¶ WKHLU VWDWHPHQWV ZHUHIDOVH´'RFDW TXRWLQJSlayton, 604 F.3d at 773). 6SHFL¿FDOO\WKH\FRQWHQG WKDWWKHDOOHJDWLRQVGRQRWEULQJIRUWKQHZLQIRUPDWLRQ FRQWUDGLFWLQJWKHVWDWHPHQWVDQG VRWKHCRXUWVKRXOGUHMHFWWKHLUFODLPV DVLWKDGLQLWV ¿UVWRSLQLRQGLVPLVVLQJWKH CAC. Doc. 80 at 21. 3ODLQWL൵VDUJXHWKDWWKH6$&ZKLFKQRZGLVFXVVHV 3URMHFW$WKHQD, UHYHDOVWKDW )DUIHWFKZDVIDFLQJDOLTXLGLW\FULVLVUHQGHULQJWKHSRVLWLYHVWDWHPHQWVPDGHE\WKH 'HIHQGDQWVIDOVHDoc. 83 at 13; ˆˆ–86. ,QRUGHUWRVXFFHHGRQWKLVDUJXPHQW 3ODLQWL൵VPXVW³SOHDGIDFWVWRVXSSRUWDstrong LQIHUHQFHRIVFLHQWHU´ZKLFKLV³FRJHQW DQGDWOHDVWDVFRPSHOOLQJDVDQ\RSSRVLQJLQIHUHQFHRIQRQIUDXGXOHQWLQWHQW´DQGWKH\ FDQQRWUHO\RQUHFNOHVVQHVVEXWRQO\³NQRZLQJIDOVLW\´Slayton, 604 F.3d at 773 LQWHUQDO TXRWDWLRQVDQGFLWDWLRQVRPLWWHG ๠H&RXUWPXVW WDNHLQWRDFFRXQWDOORIWKHIDFWV DOOHJHGWKHGRFXPHQWVLQFRUSRUDWHGLQWRWKH6$&DQGSODXVLEOHRSSRVLQJLQIHUHQFHVId. at 774 FLWLQJTellabs, 551 U.S. at 322–23). 3ODLQWL൵VUHO\RQWKHLUFRQWHQWLRQWKDWWKH ,QGLYLGXDO'HIHQGDQWVNQHZDERXW3URMHFW$WKHQD'RFDWEXWNQRZOHGJHRI a FDSLWDO-UDLVLQJH൵RUWGRHVQRWUHQGHUDQ\RIWKHVWDWHPHQWVWKH,QGLYLGXDO'HIHQGDQWV 24 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 25 of 39 PDGHIDOVH ๠HH[LVWHQFHRI3URMHFW$WKHQDGRHVQRWQHFHVVDULO\PHDQWKDWWKH ,QGLYLGXDO'HIHQGDQWVNQHZ)DUIHWFKZDVDIDLOLQJEXVLQHVV 1RUGRHVWKH6$& VX൶FLHQWO\DOOHJHWKDWWKH,QGLYLGXDO'HIHQGDQWVVWDWHGWKDW)DUIHWFKGLGQRWQHHGDQ\ H[WHUQDOFDSLWDOVR3URMHFW$WKHQDGRHVQRWUHQGHUWKHVWDWHPHQWVIDOVH 8 7F ๠H,QGLYLGXDO'HIHQGDQWVQRWHWKDWWKURXJKRXWWKLVWLPHWKH\LQFUHDVHGWKHLU VWRFNKROGLQJV'RFV-3 at 117, 81-12 at 121, 81-22 at 6, ZKLFKLVLQFRQVLVWHQWZLWKDQ LQIHUHQFHWKDWWKH,QGLYLGXDO'HIHQGDQWVNQHZ)DUIHWFKZDVIDLOLQJDQGWKDWWKHLU VWDWHPHQWVDERXWLWV¿QDQFLDOZHOO-EHLQJZHUHIDOVH, see Turner v. MagicJack VocalTec, Limited, No. 13 Civ. 448 (RWS), 2014 WL 406917, at *11 (S.D.N.Y. Feb. 3, 2014) (¿QGLQJ WKDWSXUFKDVLQJVWRFNGXULQJWKHUHOHYDQWSHULRG UHEXWVDQLQIHUHQFHRIVFLHQWHU  3ODLQWL൵VKDYHIDLOHGWRDOOHJHIDFWVWKDWSURYLGHD³FRJHQW´LQIHUHQFHRIVFLHQWHUZKLFKLV ³DVFRPSHOOLQJDVDQ\RSSRVLQJLQIHUHQFH´Slayton)GDW LQWHUQDOTXRWDWLRQV DQGFLWDWLRQVRPLWWHG ๠HUHIRUH3ODLQWL൵VIDLOWRDOOHJHWKDWWKH,QGLYLGXDO 'HIHQGDQWV¶ IRUZDUG-ORRNLQJVWDWHPHQWVZHUHPDGHZLWKNQRZOHGJHRIWKHLUIDOVLW\๠HVHVWDWHPHQWV IDOOZLWKLQWKH36/5$¶VVDIHKDUERUDQGDUHQRQ-actionable. c. Non-Actionable Opinion Statements ๠H,QGLYLGXDO'HIHQGDQWVFRQWHQGWKDWDOORIWKH FKDOOHQJHG VWDWHPHQWVLQ WKH 6$&DUHnon-DFWLRQDEOHRSLQLRQV'RF80 at 24. 3ODLQWL൵VGRQRWVSHFLI\ ZKLFK VWDWHPHQWVDUHnot RSLQLRQVEXW(1) DUJXH WKDWDVWDWHPHQW IDLOVWREHDQRQ-actionable RSLQLRQZKHQWKHVSHDNHUNQHZRIFRQWUDGLFWLQJPDWHULDOIDFWVDQG   SRLQWWR Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, 575 8 ๠H,QGLYLGXDO'HIHQGDQWVDOVRDUJXHWKDWDOHWWHUDXWKRUHGE\RXWVLGHFRXQVHO IRU6XUSLTXHFDQQRWVHUYH WRHVWDEOLVKWKDWWKH,QGLYLGXDO 'HIHQGDQWVNQHZWKHVWDWHPHQWVWKH\PDGHZHUHIDOVH'RF80 at 22–23. $OWKRXJK3ODLQWL൵VDUJXHWKDWWKHHYLGHQWLDU\ZHLJKWRIWKHOHWWHUVKRXOGQRWEHGHWHUPLQHGRQD5XOH FKDOOHQJH'RFDW 14WKLV&RXUWGHWHUPLQHVWKDWWKHVHVWDWHPHQWVDUHLQVX൶FLHQWWRDOOHJHWKDWWKH ,QGLYLGXDO'HIHQGDQWVNQHZWKHLUVWDWHPHQWVZHUHIDOVHZKHQWKH\ZHUHPDNLQJWKHPSee Wilbush v. Ambac Financial Group, Inc.)6XSSG  6'1< (³>7@KHODZLVDEXQGDQWO\FOHDU WKDW´ LQFDVHVZKHUHWKHZLWQHVVHVKDGQRFRQWDFWZLWK WKH,QGLYLGXDO'HIHQGDQWVWKHLU³DOOHJDWLRQVDUH LQVX൶FLHQWWRVXSSRUWVFLHQWHU´) LQWHUQDOTXRWDWLRQVDQGFLWDWLRQVRPLWWHG 6LQFHWKHRXWVLGHFRXQVHO GUDIWHGWKLVOHWWHUDIWHUWKHDOOHJHGHYHQWVRFFXUUHGDQGKDYHQRGLUHFWFRQQHFWLRQWRDQ\RIWKH,QGLYLGXDO 'HIHQGDQWVLWFDQQRWDGHTXDWHO\VXSSRUWDOOHJDWLRQVRINQRZLQJIDOVLW\DVWRWKHVWDWHPHQWVPDGH 25 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 26 of 39 U.S. 175 (2015), to contend WKDWWKHRSLQLRQVDUHDFWLRQDEOHVWDWHPHQWV'RF83 at 18– 19. In OmnicareWKH6XSUHPH&RXUWGHWHUPLQHG WKDWDQRSLQLRQVWDWHPHQWLVDFWLRQable LI HLWKHU(1) WKHVSHDNHUGLGQRWKROGWKHEHOLHIVKHSURIHVVHG (2) WKHVXSSRUWLQJIDFWVKH VXSSOLHGZHUHXQWUXH, RU   WKHVSHDNHURPLWVLQIRUPDWLRQ ZKRVHRPLVVLRQPDNHVWKH VWDWHPHQWPLVOHDGLQJWRDUHDVRQDEOHLQYHVWRU575 U.S. at 186, 194. 3ODLQWL൵VIRFXVRQ WKHWKLUGSURQJDUJXLQJWKDWWKH,QGLYLGXDO'HIHQGDQWV¶VWDWHPHQWVZHUHPLVOHDGLQJ EHFDXVHWKH\SXUVXHG3URMHFW$WKHQDZKLOHVWDWLQJ WKDW WKH&RPSDQ\KDGVX൶FLHQW OLTXLGLW\DQGGLGQRWQHHGFDSLWDO'RFDW 19. 'HIHQGDQWVFRQWHQGWKDWWKLVDUJXPHQW IDLOVEHFDXVH (1) LWUHOLHVRQWKHIDOVHFRQFOXVLRQWKDW3URMHFW$WKHQD³LVV\QRQ\PRXV ZLWKWKHOLTXLGLW\FULVLVWKDWHPHUJHGLQODWH ´and (2) )DUIHWFK¶VGLVFORVXUHVDUH FRQVLVWHQWZLWK3URMHFW$WKHQD, Doc. 84 at 9–10, DQGDGGLWLRQDOO\3ODLQWL൵VFDQQRWVKRZ WKDWWKHVWDWHPHQWVIDOOXQGHUDQ\RIWKHOmnicare SURQJV, Doc. 80 at 25–26. ๠H6XSUHPH&RXUWFDXWLRQHGDJDLQVWDQRYHUO\H[SDQVLYHUHDGLQJRIWKLV VWDQGDUGVWDWLQJWKDW³>U@HDVRQDEOHLQYHVWRUVXQGHUVWDQGWKDWRSLQLRQVVRPHWLPHVUHVWRQ DZHLJKLQJRIFRPSHWLQJIDFWV´DQGD³UHDVRQDEOHLQYHVWRUGRHVQRWH[SHFWWKDWevery IDFWNQRZQWRDQLVVXHUVXSSRUWVLWVRSLQLRQVWDWHPHQW´ Omnicare, 575 U.S. at 189–90. $FFRUGLQJO\DQRSLQLRQVWDWHPHQW³LVQRWQHFHVVDULO\PLVOHDGLQJZKHQDQLVVXHUNQRZV EXWIDLOVWRGLVFORVHVRPHIDFWFXWWLQJWKHRWKHUZD\¶´ Id. at 189. 0RUHRYHUWKH 6XSUHPH&RXUWKDVHPSKDVL]HGWKDW³tKHLQYHVWRUWDNHVLQWRDFFRXQWWKHFXVWRPVDQG SUDFWLFHVRIWKHUHOHYDQWLQGXVWU\ 6RDQRPLVVLRQWKDWUHQGHUVPLVOHDGLQJDVWDWHPHQWRI RSLQLRQZKHQYLHZHGLQDYDFXXPPD\QRWGRVRRQFHWKDWVWDWHPHQWLVFRQVLGHUHGDVLV DSSURSULDWHLQDEURDGHUIUDPH´ Id. at 190; sHH,QUH$UDWDQDୡHUDSHXWLFV,QF Securities Litigation)6XSSG 6'1<  ³[T]KH6XSUHPH&RXUW KDVHPSKDVL]HG>@ VWDWHPHQWVRIRSLQLRQPXVWEHFRQVLGHUHGLQWKHFRQWH[WLQZKLFKWKH\ DULVH´  )LUVW3ODLQWL൵VKDYHIDLOHGWRVX൶FLHQWO\DOOHJHWKDWWKH,QGLYLGXDO'HIHQGDQWV made DQ\VWDWHPHQW ZKLOHNQRZLQJRILWVIDOVLW\ DQGIDLOHGWRVKRZZK\WKHH[LVWHQFHRI 26 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 27 of 39 3URMHFW$WKHQDUHQGHUVWKHVWDWHPHQWVRIWKH,QGLYLGXDO'HIHQGDQWVIDOVH. ๠HUHIRUH 3ODLQWL൵V¶¿UVWDUJXPHQWIDLOV๠HH[LVWHQFHRI3URMHFW$WKHQDeven ZKHQFRQVLGHUHGin FRQMXQFWLRQZLWKWKH,QGLYLGXDO'HIHQGDQWV¶SXEOLFVWDWHPHQWVGRHVQRWVX൶FLHQWO\ VXJJHVWWKDWWKH\KDGIUDXGXOHQWLQWHQW 3ODLQWL൵VDOVRIDLOWRDGHTXDWHO\VKRZZK\WKH SXUVXLWRI3URMHFW$WKHQDPDNHVWKH,QGLYLGXDO'HIHQGDQWV¶RSLQLRQ VWDWHPHQWVIDOVH 6HFRQG3ODLQWL൵VKDYHIDLOHGWRDGHTXDWHO\SOHDGWKDW)DUIHWFKKDGDGXW\WR GLVFORVHWKHH[LVWHQFHRI3URMHFW$WKHQDVRWKH\DOVRIDLORQOmnicare¶VWKLUGSURQJ :LWKRXWDQ\GXW\WRGLVFORVHWKH,QGLYLGXDO'HIHQGDQWVFDQQRWEHKHOGOLDEOHIRUDQ RPLVVLRQSee Macquarie, 601 U.S. at 265. 3ODLQWL൵V¶WKHRU\WKDWWKHRPLVVLRQZDV PLVOHDGLQJDOVRUHOLHVRQWKHQRWLRQWKDWWKH,QGLYLGXDO'HIHQGDQWVVDLGWKDW)DUIHWFKKDG VX൶FLHQWOLTXLGLW\DQGGLGQRWneed H[WHUQDOFDSLWDOZKLFKWKH\KDYHQRWDGHTXDWHO\ DOOHJHG. d. Non-Actionable &RUSRUDWH2SWLPLVPRU3XৼHU\ ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDWPDQ\RIWKHVWDWHPHQWVLQWKH6$&DUHQRQ- DFWLRQDEOHSX൵HU\ EHFDXVHWKHVWDWHPHQWV DUHWRRJHQHUDODQG ³DUH>QRW@IUDPHGDV JXDUDQWHHV´RU³WHWKHUHGWRVSHFL¿FYHUL¿DEOHIDFWV´ Doc. 80 at 26–27. 3ODLQWL൵VDUJXH WKDWWKH,QGLYLGXDO'HIHQGDQWV¶UHSHDWHGDVVXUDQFHV ³WKDW)DUIHWFKKDGVX൶FLHQWOLTXLGLW\ ZDVVHOI-IXQGLQJDQGGLGQRWQHHGWRUDLVHFDSLWDO´ DUHQRWPHUHSX൵HU\EHFDXVHWKH\ FRQYH\PDWHULDOSUHVHQWIDFWVDERXWWKH&RPSDQ\Doc. 83 at 19. 3ODLQWL൵VSRLQWWRWKH VWDWHPHQWWKDW)DUIHWFK³KDVVX൶FLHQWOLTXLGLW\IRUWKHQH[WPRQWKV>ZKLFKWKH\DUJXH@ QHFHVVDULO\ UHSUHVHQWVWKDWLWKDVVX൶FLHQWOLTXLGLW\´in WKHSUHVHQW. Id. at 20. ๠LVDQG VLPLODUVWDWHPHQWV3ODLQWL൵VFRQWHQGDUHDVVHUWLRQVDERXWWKH&RPSDQ\¶VFXUUHQW ¿QDQFLDOFRQGLWLRQ DQGDUHPLVOHDGLQJEHFDXVHRIWKH³FRQWHPSRUDQHRXVSXUVXLWRI 3URMHFW$WKHQD´Id. ๠H,QGLYLGXDO'HIHQGDQWVUHDVVHUWWKHLUFRQWHQWLRQWKDWQRQHRIWKH VWDWHPHQWVLQWKH6$&ZHUH ³µFRQFUHWHUHSUHVHQWDWLRQV¶ WKDW)DUIHWFKµwas VHOI-IXQGLQJ and did not need H[WHUQDOFDSLWDO¶´'RFDW–11 TXRWLQJ'RF83 at 19–20). 27 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 28 of 39 )RUDVWDWHPHQWWREHDFWLRQDEOH³WKHUHSUHVHQWDWLRQPXVWEHRQHRIH[LVWLQJIDFW DQGQRWPHUHO\DQH[SUHVVLRQRIRSLQLRQH[SHFWDWLRQRUGHFODUDWLRQRILQWHQWLRQ´ In re Duane Reade Inc. Securities Litigation, No. 2 Civ. 6478 (NRB), 2003 WL 22801416, at *4 (S.D.N.Y. Nov. 25, 2003) TXRWLQJGreenberg v. Chrust)6XSSG (S.D.N.Y. 2003), Dৼ¶GVXEQRP 1DGRৼY'XDQH5HDGH,QF)$SS¶[ G&LU 2004). ³*HQHUDOL]HGVWDWHPHQWVUHJDUGLQJDFRPSDQ\¶V¿VFDOGLVFLSOLQHDQGULVN PDQDJHPHQWDPRXQWWRQRPRUHWKDQLQDFWLRQDEOHSX൵HU\´In re New York Community Bancorp, Inc., Securities Litigation)6XSSG80 (E.D.N.Y 2006) FLWLQJ In re JP Morgan Chase Securities Litigation, 363 F. 6XSS 2d 595, 633 (S.D.N.Y. 2005)). +RZHYHU³>V@WDWHPHQWVUHJDUGLQJSURMHFWLRQVRIIXWXUHSHUIRUPDQFHPD\EH DFWLRQDEOHXQGHUSection  E RU5XOHE-LIWKH\DUHZRUGHGDVJXDUDQWHHVRUDUH VXSSRUWHGE\VSHFL¿FVWDWHPHQWVRIIDFWRULIWKHVSHDNHUGRHVQRWJHQXLQHO\RU UHDVRQDEO\EHOLHYHWKHP´ In re International Business Machines Corporate Securities Litigation)G G&LU   LQWHUQDOFLWDWLRQVRPLWWHG see also Gissin v. Endres )6XSSG 6'1<  ³[S]WDWHPHQWVDUHQRWSURWHFWHGZKHUH GHIHQGDQWVKDGQREDVLVIRUWKHLURSWLPLVWLFVWDWHPHQWVDQGDOUHDG\NQHZ DOOHJHGO\ WKDW FHUWDLQULVNVKDGEHFRPHUHDOLW\.´ LQWHUQDOTXRWDWLRQVRPLWWHG ). AVLQWKHSUHYLRXVRSLQLRQRIWKLV&RXUWWKHVWDWHPHQWVWRZKLFK3ODLQWL൵V SRLQW DUHnot actionable. 6WDWHPHQWVDERXWDFRPSDQ\EHLQJ³EDFNWRJURZWK´DUHQRW VX൶FLHQWO\VSHFL¿FRUFRQFUHWHWRPLVOHDGUHDVRQDEOHLQYHVWRUV See Villare, 2021 WL 4311749, at *15; Gissin )6XSSGDW–12 ¿QGLQJWKHGHIHQGDQW¶VVWDWHPHQW WKDWWKHFRPSDQ\³FRQWLQXHVWRPDLQWDLQDVWURQJEDODQFHVKHHW´ZDVPHUHSX൵HU\ EHFDXVHLWGLGQRW³R൵HUDQ\RIWKHµORQJ-WHUPJXDUDQWHHV¶RUVSHFL¿FVZKLFKZRXOG FRQYHUWDQRSLQLRQRUSURMHFWLRQLQWRDIDFWXDOPLVUHSUHVHQWDWLRQ´ Livingston v. Cablevision Systems Corp. )6XSSG ('1< ¿QGLQJ a VWDWHPHQWWKDWDFRPSDQ\³µFDQFRQWLQXHWRSURYLGHVXSHULRUSURGXFWVVXSHULRUFXVWRPHU VHUYLFHDQGFRPSHWHDJJUHVVLYHO\DQGFRQWLQXHWRJURZ¶LVTXLQWHVVHQWLDOLQDFWLRQDEOH 28 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 29 of 39 SX൵HU\´ . ๠HUHIRUHWKH,QGLYLGXDO'HIHQGDQWV¶VWDWHPHQWV VXFKDV )DUIHWFKKDG³DOOWKH NH\HOHPHQWVWRH[HFXWHRQ>LWV@ SODQ´DQG ³>W@KHZRUNZH¶YHGRQHSXWVXVLQDVWURQJ SRVLWLRQWRGHOLYHURQRXUJRDOV,´ ˆˆ–FRQVWLWXWHnon-DFWLRQDEOHSX൵HU\ 3ODLQWL൵VDUJXHWKDW)DUIHWFK¶VFODLPWKDWLW ZLOOKDYH³VX൶FLHQWOLTXLGLW\IRUWKH QH[WPRQWKV´LPSOLHVWKDWLWSUHVHQWO\KDGVX൶FLHQWOLTXLGLW\ZKLFKLV VSHFL¿FDQG PLVOHDGLQJ'RFDW๠HRQO\WKLQJ3ODLQWL൵VDUJXHPDNHVWKLVPLVOHDGLQJLVWKH H[LVWHQFHRI3URMHFW$WKHQDId. 2QFHDJDLQ3ODLQWL൵VIDLOWRDGHTXDWHO\H[SODLQZK\WKH H[LVWHQFHRI3URMHFW$WKHQDQHFHVVDULO\PHDQVWKDWDVWDWHPHQWWKDW)DUIHWFKKDVVX൶FLHQW OLTXLGLW\LQWKHSUHVHQWRUIRUWKHQH[WPRQWKVIRUWKDWPDWWHULVPLVOHDGLQJ. $OVRDV WKH,QGLYLGXDO'HIHQGDQWVDUJXHQRZKHUHLQWKH6$&GRWKH ,QGLYLGXDO'HIHQGDQWV claim WKDW)DUIHWFKZDVVHOI-IXQGLQJDQGGLGQRWQHHGH[WHUQDOFDSLWDOSee Doc. 78. ๠H&RXUW QHHGQRWDQVZHUZKHWKHU WKLVFKDOOHQJHGVWDWHPHQWLV VSHFL¿FHQRXJKQRWWRTXDOLI\DV SX൵HU\ EHFDXVHit LVSULPDULO\DSURMHFWLRQDERXWWKHIXWXUH, ZDVTXDOL¿HGE\³>Z@H believe,´and ZDVDFFRPSDQLHG E\FDXWLRQDU\ODQJXDJH. ˆ; see 86&†X–  F   VWDWLQJWKDWWKH36/5$¶VVDIHKDUERUSURYLVLRQSURYLGHVWKDWQROLDELOLW\DWWDFKHV WRDIRUZDUG-ORRNLQJVWDWHPHQWLILWLV³LGHQWL¿HGDVDIRUZDUG-ORRNLQJVWDWHPHQWDQGLV DFFRPSDQLHGE\PHDQLQJIXOFDXWLRQDU\VWDWHPHQWV´  $FFRUGLQJO\3ODLQWL൵VKDYHIDLOHGWR DGHTXDWHO\ DOOHJHWKDWWKH,QGLYLGXDO 'HIHQGDQWVPDGHPDWHULDOO\PLVOHDGLQJVWDWHPHQWVRURPLVVLRQV 3ODLQWLৼV'R1RW$OOHJHD6WURQJ,QIHUHQFHRI6FLHQWHU ๠H,QGLYLGXDO'HIHQGDQWVDVVHUWWKDW3ODLQWL൵VKDYHQRWVX൶FLHQWO\SOHDGHGD FRJQL]DEOHPRWLYHRUWKe UHTXLVLWH³FRUUHVSRQGLQJO\JUHDWHU´VKRZLQJRI³FRQVFLRXV PLVEHKDYLRURUUHFNOHVVQHVV´ZKHQPRWLYHLVDEVHQW Doc. 80 at 29–๠H\DUJXHWKDW 3ODLQWL൵VGLGQRWVKRZDQ\FRQFUHWHEHQH¿WWKDWWKH,QGLYLGXDO'HIHQGDQWVUHFHLYHGIDLO WRDOOHJHPRWLYHDQGGLGQRWSRLQWWRIDFWVVKRZLQJWKH\ZHUHDZDUHWKDWWKHLUVWDWHPHQWV ZHUHRUWKDWWKHUHZDVDJRRGFKDQFHWKDWWKH\ZHUHIDOVHRUPLVOHDGLQJIDLOLQJWRDOOHJH FRQVFLRXVPLVEHKDYLRURUUHFNOHVVQHVVId. 3ODLQWL൵VDUJXHWKDWWKH\KDYHDGHTXDWHO\ 29 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 30 of 39 DOOHJHGVFLHQWHUEHFDXVHWKH\DOOHJHWKDWWKH,QGLYLGXDO'HIHQGDQWVZHUH³GLUHFWO\ LQYROYHG´LQ3URMHFW$WKHQDWRUDLVHFDSLWDORUVHOOWKHEXVLQHVVZKLOHVWDWLQJWKDW ³)DUIHWFKZDVVHOI-IXQGLQJDQGGLGQRWQHHGH[WHUQDOFDSLWDO´'RFDW๠H\ FRQWHQGWKDWWKH,QGLYLGXDO'HIHQGDQWVWKURXJKWKHLUSRVLWLRQVHDFKKDGGLUHFW LQYROYHPHQWLQ3URMHFW$WKHQDDQGKDGD³FRQFUHWHPRWLYH . . . WRVWDYHR൵EDQNUXSWF\ DQGPDLQWDLQLWVFUHGLWDFFHVVORQJHQRXJKWRFRPSOHWH3URMHFW$WKHQD´Id. at 24–25. 7RVDWLVI\WKH36/5$¶VSOHDGLQJUHTXLUHPHQWVIRUVFLHQWHUDSODLQWL൵PXVWDOOHJH IDFWVZLWKSDUWLFXODULW\WKDWZRXOGJLYH³ULVHWRDVWURQJLQIHUHQFHWKDWWKHGHIHQGDQWDFWHG ZLWKWKHUHTXLUHGVWDWHRIPLQG´ ECA, Local 134 IBEW Joint Pension Trust of Chicago v. JP Morgan Chase Co., 553 F.3d 187, 196 G&LU TXRWLQJ 86&†X– 4(b)(1), (2))$VWURQJLQIHUHQFHWKDWDGHIHQGDQWDFWHGZLWKDFHUWDLQLQWHQWLVRQHWKDWLV ³PRUHWKDQPHUHO\SODXVLEOHRUUHDVRQDEOH—LWPXVWEHFRJHQWDQGDWOHDVWDVFRPSHOOLQJ DVDQ\RSSRVLQJLQIHUHQFHRIQRQIUDXGXOHQWLQWHQW´ Tellabs, 551 U.S. at 314. ๠LVLQTXLU\JRHVEH\RQGWKHRUGLQDU\ 5XOH E IUDPHZRUNDQGUHTXLUHVFRXUWVWR FRQVLGHU³QRWRQO\LQIHUHQFHVXUJHGE\WKHSODLQWL൵EXWDOVRFRPSHWLQJLQIHUHQFHV UDWLRQDOO\GUDZQIURPWKHIDFWVDOOHJHG´ Id. ³๠HUHOHYDQWLQTXLU\IRUWKH&RXUWµLV ZKHWKHU all RIWKH IDFWVDOOHJHGWDNHQFROOHFWLYHO\JLYHULVHWRDVWURQJLQIHUHQFHRI VFLHQWHUQRWZKHWKHUDQ\ individual DOOHJDWLRQVFUXWLQL]HGLQLVRODWLRQPHHWVWKDW VWDQGDUG¶´ In re Magnum Hunter Resources Corp. Securities Litigation, 26 F. 6XSS 3d 278, 299 (S.D.N.Y. 2014) TXRWLQJ Tellabs, 551 U.S. at 322–23). $SODLQWL൵PD\HVWDEOLVKVFLHQWHUE\DOOHJLQJIDFWVWKDWHLWKHU   VKRZWKDWWKH GHIHQGDQWKDGERWKWKH³PRWLYHDQGRSSRUWXQLW\´WRFRPPLWWKHDOOHJHGIUDXGRU   ³FRQVWLWXWHVWURQJFLUFXPVWDQWLDOHYLGHQFHRIFRQVFLRXVPLVEHKDYLRURUUHFNOHVVQHVV´ Lerner v. Fleet Bank, N.A., 459 F.3d 273, 290–  G&LU 7\SLFDOO\³RUGLQDU\ PRWLYHVSRVVHVVHGE\YLUWXDOO\DOOFRUSRUDWHLQVLGHUV´DUH LQVX൶FLHQWWRSOHDGVFLHQWHU In re Plug Power, Inc. Securities Litigation, No. 21 Civ. 2004 (ER), 2022 WL 4631892, at  6'1<6HS   30 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 31 of 39 a. 3ODLQWLৼV’ $OOHJDWLRQVRI0RWLYHDUH,QVX৽FLHQW 3ODLQWL൵VDUJXH WKDW)DUIHWFKKDGDFOHDUPRWLYH ³WRVWDYHR൵EDQNUXSWF\DQG PDLQWDLQLWVFUHGLWDFFHVVORQJHQRXJKWRFRPSOHWH3URMHFW$WKHQD´'RFDW๠H ,QGLYLGXDO'HIHQGDQWVDUJXHWKDWWKLVDOOHJDWLRQLVLQVX൶FLHQWEHFDXVHWKRVHWZRGHVLUHV DUHKHOGE\YLUWXDOO\DOOEXVLQHVVHVDQGWKHUHIRUHGRQRWDGHTXDWHO\DOOHJHDIUDXGXOHQW motive. Doc. 84 at 12. 9 ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDW3ODLQWL൵VWKXVIDLOHGWR 8F DOOHJHDFOHDUEHQH¿WREWDLQHGE\WKHPIURPWKHDOOHJHGIUDXGDQGDOVRIDLOHGWRFRQWHQG ZLWKWKHIDFWWKDWHDFKRIWKHPLQFUHDVHGRUUHWDLQHGWKHLUVWRFNKROGLQJVGXULQJWKH&ODVV 3HULRG'RFDW  ๠HEDVLVRI3ODLQWL൵V¶DOOHJDWLRQLVWKDWWKH,QGLYLGXDO'HIHQGDQWVSXUVXHGDQ LQLWLDWLYH³WRUDLVHFDSLWDO´ZKLOHWHOOLQJLQYHVWRUVWKH\GLGQ¶WQHHGFDSLWDOHVWDEOLVKLQJ VFLHQWHU'RFDW%XW, ³FRXUWVLQ WKLVGLVWULFWKDYHJHQHUDOO\IRXQGDOOHJDWLRQV UHJDUGLQJWKHGHVLUHWRUDLVHFDSLWDOLQDGHTXDWHWRSOHDG VFLHQWHU´ In re Plug Power, 2022 WL 4631892, at ๠HH[LVWHQFHRI3URMHFW$WKHQDGRHVQRWFUHDWHDVWURQJLQIHUHQFH WKDWWKH,QGLYLGXDO'HIHQGDQWVDFWHGZLWKIUDXGXOHQWLQWHQWZKHQWKH\PDGHSXEOLF VWDWHPHQWVDERXW)DUIHWFK¶V¿QDQFLDOZHOO-EHLQJ3ODLQWL൵VDUJXHWKDWWKH&RPSDQ\¶V PRWLYHZDVWR³VWDYHR൵EDQNUXSWF\DQGPDLQWDLQLWVFUHGLWDFFHVV´ZKLFKWKH\FRQWHQG ³LVDVSHFL¿FDOOHJDWLRQWKDWWKHIUDXGHQDEOHGDVSHFL¿FWUDQVDFWLRQ´'RFDW–26. +RZHYHUFRXUWVKDYHIRXQGWKDWDQDOOHJDWLRQWKDWWKHGHIHQGDQWVDFWHGWR³DYRLG EDQNUXSWF\´LVLQVX൶FLHQWEHFDXVHLWLVDPRWLYHFRPPRQWRDOOFRUSRUDWLRQVSaraf v. Ebix, Inc., No. 23 Civ. :/ DW  G&LU0DU &RXUWV KDYHDOVRIRXQGDOOHJDWLRQVWKDWDFRPSDQ\³ZDQWHGWRPDLQWDLQWKHDSSHDUDQFHRI SUR¿WDELOLW\DQGDFFHVVWRFDSLWDO´DUH LQVX൶FLHQWWRDOOHJHVFLHQWHUHarris v. AmTrust 9 3ODLQWL൵VDOVRFRQWHQG³>W@KH6$&DOOHJHVWKDW)DUIHWFKQHHGHGWRSUHVHUYHLWVUHODWLRQVKLSZLWK-3 0RUJDQZKLFKZDVVLPXOWDQHRXVO\DGYLVLQJRQ3URMHFW$WKHQDDQGSURYLGLQJFUHGLWIDFLOLWLHVWRIXQG RSHUDWLRQVWKURXJKWKHFRPSOHWLRQRIWKHXQGLVFORVHGWUDQVDFWLRQ´'RFDW FLWLQJ'RFˆ  +RZHYHU   WKH6$&GRHVQRWPDNHWKLVDOOHJDWLRQPHUHO\GLVFXVVLQJDFUHGLWDJUHHPHQWEHWZHHQ )DUIHWFKand -30RUJDQ'RFˆ DQG   3ODLQWL൵VIDLOWRH[SODLQKRZWKLVGL൵HUVIURPRUGLQDU\ PRWLYHVRIDEXVLQHVV 31 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 32 of 39 Financial Services, Inc.)6XSSG 6'1<2015), Dৼ¶G,  )$SS¶[ G&LU  3ODLQWL൵VFRQWHQd WKDW³>W@KLVLVQRWDJHQHULFDOOHJDWLRQ´EHFDXVHFRXUWVKDYH IRXQGWKDWPRWLYHLVVX൶FLHQWO\HVWDEOLVKHG³ZKHQDFRPSDQ\LVLQGLUHQHHGRIIXQGVIRU VXUYLYDO´'RFDW TXRWLQJLeone v. ASP Isotopes Inc.)6XSSG (S.D.N.Y. 2025)); see also 6NLDGDVY$FHUୡHUDSHXWLFV,QF, No. 19 Civ. 6137 (GHW), :/ DW  6'1<-XQH  ³>&@RXUWVKDYHIRXQGDOOHJDWLRQVRI PRWLYHDGHTXDWHZKHUHWKHFRPSDQ\¶VQHHGHGWRIXQGUDLVHWRVXUYLYH´ +RZHYHULQLWV DQDO\VLVWKLV&RXUWPXVWnot ORRNWR DQ\ IDFW LQLVRODWLRQEXWPXVWDVVHVV³ZKHWKHUall RI WKHIDFWVDOOHJHGWDNHQFROOHFWLYHO\JLYHULVHWRDVWURQJLQIHUHQFHRIVFLHQWHU´In re Magnum, 26 F. 6XSS GDW  TXRWLQJ Tellabs, 551 U.S. at 322–23). AVWKLV&RXUW QRWHGLQLWVGLVFXVVLRQRIPRWLYHLQLWVSULRURSLQLRQ'RFDWWKHSXUFKDVHRI VWRFN GXULQJWKHFODVVSHULRG UHEXWVDQLQIHUHQFHRIVFLHQWHU Turner, 2014 WL 406917, at *11. $OWKRXJK3ODLQWL൵VGRDOOHJHWKDW)DUIHWFKZDVLQVLJQL¿FDQW¿QDQFLDOGLVWUHVVˆ 5, WKHLUDOOHJDWLRQVRIPRWLYHUHO\SULPDULO\RQ³RUGLQDU\PRWLYHVSRVVHVVHGE\YLUWXDOO\DOO FRUSRUDWHLQVLGHUV´In re Plug Power, 2022 WL 4631892, at */RRNLQJat WKHDOOHJHG IDFWVDVDZKROHLQFOXGLQJWKHLQFUHDVHGVWRFNKROGLQJVRIWKH,QGLYLGXDO'HIHQGDQWVsee 'RFV-3 at 117, 81-12 at 121, 81-DW3ODLQWL൵VKDYHIDLOHGWRDGHTXDWHO\DOOHJH motive. b. 3ODLQWLৼV’ Allegations of Reckless Disregard or “Circumstantial” Scienter are ,QVX৽FLHQW ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDW3ODLQWL൵VKDYHIDLOHGWRDOOHJHWKDWWKH\ DFWHGZLWKFRQVFLRXVPLVEHKDYLRURUUHFNOHVVQHVV'RFDW3ODLQWL൵VIXUWKHU DUJXH WKDW(1) IRUPHUHPSOR\HH³DOOHJDWLRQVSURYLGHFRQWH[W´   WKH³IUDXGWRXFKHGFRUH RSHUDWLRQV´DQG  ³WHPSRUDOSUR[LPLW\VXSSRUWVVFLHQWHU´'RFDW–28. 'HIHQGDQWVDUJXHWKDWWKHVHDOOHJDWLRQVDUHLQVX൶FLHQWWRHVWDEOLVKVFLHQWHUDGGLQJWKDW 32 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 33 of 39 VLQFHWKHDOOHJHGIUDXGUHVXOWHGLQWKH'HIHQGDQWV¶³RZQPDVVLYH¿QDQFLDOORVVHV´WKH PRUHFRPSHOOLQJLQIHUHQFHLVDQRQ-FXOSDEOHRQHDoc. 84 at 13–14. :KHQDSODLQWL൵IDLOVWRDOOHJHDPRWLYHWRFRPPLWIUDXGWKHSODLQWL൵¶VDOOHJDWLRQV WKDWLQGLFDWHDGHIHQGDQW¶VUHFNOHVVQHVV³PXVWEHFRUUHVSRQGLQJO\JUHDWHU´Kalnit v. Eichler)G G&LU  LQWHUQDOTXRWDWLRQV and FLWDWLRQVRPLWWHG  3ODLQWL൵VPXVWSOHDGFRQGXFWWKDWLV³KLJKO\XQUHDVRQDEOH´RUUHÀHFWV³DQH[WUHPH GHSDUWXUH´IURPWKHVWDQGDUGVRIRUGLQDU\FDUHBoard of Trustees of City of Ft. Lauderdale General Employees’ Retirement System v. Mechel OAO)6XSSG 869 (S.D.N.Y 2011), Dৼ¶GVXEQRP)UHGHULFNY0HFKHO2$2)$SS¶[ G&LU 2012). 2IWHQWKLVLVVDWLV¿HGE\ SOHDGLQJSDUWLFXODUL]HGIDFWVWKDWVKRZWKDWWKH GHIHQGDQWVKDG³NQRZOHGJHRIIDFWVRUDFFHVVWRLQIRUPDWLRQFRQWUDGLFWLQJWKHLUSXEOLF VWDWHPHQWV´Kalnit)GDW3ODLQWL൵VPXVWLGHQWLI\WKH VSHFL¿F UHSRUWVRU VWDWHPHQWVFRQWDLQLQJWKHFRQWUDU\ LQIRUPDWLRQ. Mechel OAO)6XSSGDW . 8QGHUWKH³FRQVFLRXVPLVEHKDYLRURUUHFNOHVVQHVV´SURQJWRTXDOLI\DV³VWURQJ´ WKHLQIHUHQFHRIVFLHQWHUIURPWKHIDFWVDOOHJHG³PXVWEHPRUHWKDQPHUHO\SODXVLEOHRU UHDVRQDEOH´ Tellabs86DW,IDQLQIHUHQFHRIIUDXGXOHQWLQWHQWLVQRW³DWOHDVW DVFRPSHOOLQJ´DVDFRQWUDU\LQIHUHQFHLWLVLQDGHTXDWHHYHQLQD³FORVHFDVH´ Slayton, 604 F.3d at ³๠XVDFRPSODLQWZKLFKIDLOVWRDGGXFHDQ\VSHFL¿FIDFWVVXSSRUWLQJ DQLQIHUHQFHRINQRZOHGJHDEOHSDUWLFLSDWLRQLQWKHDOOHJHGIUDXGZLOOQRWVDWLVI\HYHQD UHOD[HGVWDQGDUG´ Faulkner v. Verizon Communications, Inc., )6XSSG  (S.D.N.Y 2001) (LQWHUQDOTXRWDWLRQVDQGcitationV omitted). ๠HSULRURSLQLRQRIWKLV&RXUWGLUHFWO\DGGUHVVHd DQGUHMHFWed 3ODLQWL൵V¶ FRQWHQWLRQVDERXWWKHIRUPHUHPSOR\HH DOOHJDWLRQVDQGWKDWWKHIUDXGWRXFKHGWKH &RPSDQ\¶VFRUHRSHUDWLRQV'RFDW –41. ,QUHJDUGWRWKHIRUPHUHPSOR\HH DOOHJDWLRQVSURYLGLQJFRQWH[W³>L@ISODLQWL൵VUHO\ RQDOOHJDWLRQVWKDWWKHGHIHQGDQWVKDGDFFHVVWRIDFWVFRQWUDGLFWLQJWKHLUSXEOLF VWDWHPHQWVSODLQWL൵VPXVWVSHFL¿FDOO\LGHQWLI\WKHUHSRUWVRUVWDWHPHQWVFRQWDLQLQJWKLV 33 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 34 of 39 LQIRUPDWLRQ´ In re General Electric Co. Securities Litigation, 856 F. 6XSSG  (S.D.N.Y. 2012) (LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG ๠H6$&RQO\DOOHJHV WKDWRQHRIWKHIRUPHUHPSOR\HHV)(VSRNHWRDQ\RIWKH,QGLYLGXDO'HIHQGDQWVˆ ³>7@KHODZLVDEXQGDQWO\FOHDUWKDW´ LQFDVHVZKHUHWKHZLWQHVVHVKDGQRFRQWDFWZLWKWKH iQGLYLGXDOdHIHQGDQWVWKHLU³DOOHJDWLRQVDUHLQVX൶FLHQWWRVXSSRUWVFLHQWHU´ Wilbush v. Ambac Financial Group, Inc.)6XSSG  6'1< LQWHUQDO TXRWDWLRQV DQGFLWDWLRQV omitted). )(DOOHJHVWKDWLQ$SULO-RUGDQVDLGWKDWPDMRU LQYHVWRUVPD\SXOOWKHLUIXQGLQJEHFDXVHRIORQJVWDQGLQJLQWHUQDOGH¿FLHQFLHV. ˆ$V GHWHUPLQHGE\WKLV&RXUWEHIRUHWKLVDOOHJDWLRQLVLQVX൶FLHQWWRDGHTXDWHO\DOOHJH VFLHQWHUSee Doc. 73 at 39–40. 3ODLQWL൵VDOVRDOOHJHDFRUHRSHUDWLRQVWKHRU\DUJXLQJWKDWWKH,QGLYLGXDO 'HIHQGDQWVNQHZDERXWWKHDOOHJHGRPLVVLRQVEHFDXVHWKH\FRQFHUQHG mDWWHUVFHQWUDOWR )DUIHWFK¶V EXVLQHVVDQGVXUYLYDO'RFDW+RZHYHUDVVWDWHGLQWKLV&RXUW¶V SUHYLRXVRSLQLRQ'RFDW–41, WKH³FRUHRSHUDWLRQV´WKHRU\DWPRVWFRQVWLWXWHV ³VXSSOHPHQWDOVXSSRUW´IRUDOOHJLQJVFLHQWHUEXWGRHVQRWLQGHSHQGHQWO\HVWDEOLVK VFLHQWHUsee New Orleans Employees Retirement System v. Celestica, Inc.)$SS¶[ 10, 14 Q G&LU  GHFOLQLQJWRGHFLGHZKHWKHUWKHIDFWWKDWWKHDOOHJHG PLVUHSUHVHQWDWLRQVUHODWHGWRWKHGHIHQGDQW¶V³FRUHRSHUDWLRQV´ZDVVX൶FLHQWRQLWVRZQ WRHVWDEOLVKVFLHQWHUEXWQRWLQJWKDWWKHFRQFHSWWKDW³DOOHJDWLRQVRIDFRPSDQ\¶VFRUH RSHUDWLRQVFDQSURYLGHVXSSOHPHQWDOVXSSRUWIRUDOOHJDWLRQVRIVFLHQWHUHYHQLIWKH\ FDQQRWHVWDEOLVKVFLHQWHULQGHSHQGHQWO\´KDVVXSSRUWLQWKHFDVHODZ see also In re Wachovia Equity Securities Litigation)6XSSG 6'1< ³[T]KH &RXUWFRQVLGHUVµFRUHRSHUDWLRQV¶DOOHJDWLRQVWRFRQVWLWXWHVXSSOHPHQWDU\EXWQRW LQGHSHQGHQWO\VX൶FLHQWPHDQVWRSOHDGVFLHQWHU´ Freudenberg v. E*Trade Financial Corp.)6XSSG 6'1< ¿QGLQJWKDWWKHSODLQWL൵VDGHTXDWHO\ SOHDGed VFLHQWHUZKHUHRQHRIPDQ\DOOHJDWLRQVZDVWKDWWKHPLVVWDWHPHQWVFRQFHUQHGWKH GHIHQGDQWV¶FRUHRSHUDWLRQV  34 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 35 of 39 ๠LVOHDYHV3ODLQWL൵V¶DUJXPHQWWKDW³WHPSRUDOSUR[LPLW\VXSSRUWVVFLHQWHU´ EHFDXVH)DUIHWFKUHYHDOHGWKHH[LVWHQFHRI3URMHFW$WKHQDLQ'HFHPEHUZKLFKZDV VRRQDIWHUWKH ,QGLYLGXDO'HIHQGDQWVPDGH VRPHRI WKH FKDOOHQJHGVWDWHPHQWV'RFDW ³>+@RZHYHUµFRXUWVLQWKLVGLVWULFWKDYHKHOGWKDWWHPSRUDOSUR[LPLW\DORQHGRHVQRW UDLVHDFLUFXPVWDQWLDOLQIHUHQFHRIIUDXG¶´In re Supercom Inc. Securities Litigation, No. 15 Civ. 9650 (PGG), 2018 WL 4926442, at *32 (S.D.N.Y. Oct. 10, 2018) TXRWLQJ Pearlstein v. BlackBerry Limited )6XSS. 3d 233, 247 (S.D.N.Y. 2015)). (YHQZKHQ FRQVLGHUHGWRJHWKHUQRQHRI3ODLQWL൵V¶DOOHJDWLRQVSURYLGHDVWURQJLQIHUHQFHRIVFLHQWHU c. ୡH0RUe Compelling Non-Culpable Inference ๠H,QGLYLGXDO'HIHQGDQWVFRQWHQGWKDW³WKHIDFWWKDW>WKH\@LQFUHDVHGWKHLUVKDUHV IURPWRDQGUHWDLQHGWKHPWRWKHYHU\HQG´LVLQFRQVLVWHQWZLWKDQ\LQIHUHQFH WKDWWKH\NQHZWKH&RPSDQ\ZDVLQVHYHUH¿QDQFLDOWURXEOH'RFDW๠H\ SURSRVHWKDWWKHPRUHUDWLRQDOLQIHUHQFHLVWKDWWKH\EHOLHYHGLQ)DUIHWFKDQGWKH VWDWHPHQWVWKH\PDGHEXWXOWLPDWHO\WKH&RPSDQ\IDLOHG'RFDW–15. PlaLQWL൵V VWDWHWKDWERWK-RUGDQDQG3KDLUVROGVKDUHVLQ$XJXVWZKLFKZDVDURXQGWKH¿UVW FRUUHFWLYHGLVFORVXUHDQGWKDW1HYHV¶DFWLYLW\—PRYLQJVKDUHVWRDKROGLQJFRPSDQ\— DOVRGRHVQRWUHÀHFWFRQ¿GHQFHLQ)DUIHWFK'RFDW– 3ODLQWL൵VDOVRUHDVVHUW WKDWWKHH[LVWHQFHRI3URMHFW$WKHQDGHYHORSVDVWURQJLQIHUHQFHRIVFLHQWHUId. at 29–30. ๠URXJKRXWWKH&ODVV3HULRGHDFKRIWKH,QGLYLGXDO'HIHQGDQWVPDLQWDLQHG RZQHUVKLSRYHUDVXEVWDQWLDOQXPEHURIVKDUHV 10 :KLOHVDOHVRIVWRFN³PDGHDVKRUWWLPH 9F EHIRUHDQHJDWLYHSXEOLFDQQRXQFHPHQWDUH´VXVSHFWIn re Oxford Health Plans, Inc., 187 )5'  6'1< RWKHUIDFWRUVDUHDOVRFRQVLGHUHGVXFKDV³WKHDPRXQW RISUR¿WIURPWKHVDOHVWKHSRUWLRQRIVWRFNKROGLQJVVROGWKHFKDQJHLQYROXPHRILQVLGHU VDOHVDQGWKHQXPEHURILQVLGHUVVHOOLQJ´In re Scholastic Corp. Securities Litigation, 252 F.3d 63, 74– G&LU  FLWLQJ Rothman v. Gregor, )G  G&LU 10 2Q'HFHPEHU 1HYHVRZQHG VKDUHV'RF-2Q$XJXVW-RUGDQ RZQHGVKDUHV'RF-2Q$XJXVW3KDLURZQHGVKDUHV'RF-19. 35 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 36 of 39 2000)). ๠H,QGLYLGXDO'HIHQGDQWVVWDWHDQG3ODLQWL൵VGRQRWGLVSXWHWKDWWKH,QGLYLGXDO 'HIHQGDQWVLQFUHDVHGWKHLUVKDUHVIURPWR'RFDWZKLFKLVLQFRQVLVWHQW ZLWKDQLQIHUHQFHRIIUDXGXOHQWLQWHQWsee In re Regeneron Pharmaceuticals, Inc. Securities Litigation, No. 3 Civ. 3111 (RWS), 2005 WL 225288, at * 22 (S.D.N.Y. Feb. 1,   ³,WLVZHOOVHWWOHGWKDWVXFKDQDFWLRQ—i.e., WKHSXUFKDVHRIDGGLWLRQDOFRPSDQ\ VKDUHVGXULQJWKH FODVV SHULRG—LV LQFRQVLVWHQW ZLWKDQLQWHQWWRFRPPLWIUDXG´  :KLOH 3ODLQWL൵VSRLQWRXWWKDW-RUGDQDQG3KDLUERWKVROGVKDUHVLQ$XJXVW'RFDW WKHUHOHYDQWSHULRGLVWKH&ODVV3HULRGIURP'HFHPEHUWR'HFHPEHU ˆ %RWK-RUGDQDQG3KDLULQFUHDVHGWRWDOVKDUHVIURPDQGDQGWKH$XJXVW VDOHVZHUHQRWKXJHO\VLJQL¿FDQWLQFRPSDULVRQWRWKHLUWRWDOVKDUHV 11 See Ressler v. Liz 10F Claiborne, Inc.)6XSSG ('1<  Dৼ¶GVXEQRP)LVKEDXPY/L] Claiborne, Inc. )G G&LU  ³,QIHUHQFHVRIVFLHQWHUFDQEHXQGHUPLned ZKHQ[] LQVLGHUV¶ VDOHVRIVWRFNDUHR൵VHWE\HYHQODUJHUVWRFNDFTXLVLWLRQVGXULQJWKH UHOHYDQWWLPHSHULRG´  $VWKH,QGLYLGXDO'HIHQGDQWVDUJXHWKHPRUHFRPSHOOLQJLQIHUHQFHLVWKDWWKH\ ³PDGHJRRGIDLWKDQGDFFXUDWHGLVFORVXUHVDERXWWKHPDQ\ULVNV)DUIHWFKIDFHGEXW XOWLPDWHO\VXFFXPEHGWRDGRZQWXUQLQWKHOX[XU\IDVKLRQDQGH-FRPPHUFHLQGXVWU\LQ ODWH´'RFDW๠HH[LVWHQFHRI3URMHFW$WKHQDGRHVQRWLPSO\WKDWWKH ,QGLYLGXDO'HIHQGDQWVNQHZ)DUIHWFKZDVJRLQJWRIDFHD¿QDQFLDOFULVLVDQG3ODLQWL൵V DFFRUGLQJO\IDLOWRVX൶FLHQWO\DOOHJHVFLHQWHU 3ODLQWLৼV+DYH1RW$GHTXDWHO\3OHaded Scheme Liability Under Rule 10b- 5(a) and (c) ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDW3ODLQWL൵V¶VFKHPHOLDELOLW\FODLPPXVWIDLO EHFDXVH  WKH6$&GRHVQRWLQFOXGH a VHSDUDWHFRXQW IRUVFKHPHOLDELOLW\ (2) 3ODLQWL൵V IDLOWRVX൶FLHQWO\SOHDGVFLHQWHU and (3) WKH6$&IDLOVWRDOOHJHGHFHSWLYHDFWVEH\RQG 11 3ODLQWL൵VDOVRDUJXHWKDWVLQFH1HYHVPRYHGKLVVKDUHVLQWRDKROGLQJFRPSDQ\LWLPSOLHVWKDWKHGLGQRW KDYH³FRQ¿GHQFHLQ)DUIHWFK¶VSURVSHFWV´EXWKHUHWDLQHGRZQHUVKLSRIRYHUPLOOLRQ&ODVV$VKDUHVDQG &ODVV%VKDUHVRQ'HFHPEHU023. Doc. 81-22. 36 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 37 of 39 WKHVXSSRVHGPLVVWDWHPHQWVDQGRPLVVLRQV 'RFDW3ODLQWL൵VFRQWHQGWKDWWKH\ SOHDGHGD³FRKHVLYHGHFHSWLYHFRXUVHRIFRQGXFW´E\DOOHJLQJ WKDWWKH,QGLYLGXDO 'HIHQGDQWVSXUVXHG3URMHFW$WKHQDZKLOHVLPXOWDQHRXVO\WHOOLQJWKHSXEOLFWKDWWKH\ GLGQ¶WQHHGWRSXUVXHVXFKDQLQLWLDWLYH. Doc. 83 at 30. ๠H\DOVRDUJXHWKDWWKH\ VX൶FLHQWO\DOOHJHGGHFHSWLYHFRQGXFWWKDWJRHVEH\RQGWKHPLVVWDWHPHQWVId. at 32. ๠H ,QGLYLGXDO'HIHQGDQWVFRXQWHUWKDW  WKH\QHYHUGHQLHGDQ\QHHGWRUDLVHFDSLWDODQG (2) WKHDOOHJDWLRQIDLOVWRDOOHJHDQ\FRQGXFWGLVWLQFWIURPWKHPLVVWDWHPHQWVWKHPVHOYHV Doc. 84 at 15. 6FKHPHOLDELOLW\DULVHVZKHQGHIHQGDQWVHQJDJHLQGHFHSWLYHFRQGXFWLQ FRQMXQFWLRQZLWKGHFHSWLYHVWDWHPHQWV See SEC v. CKB168 Holdings, Limited, 210 F. 6XSSG ('1< . 7RVWDWHDFODLPIRUVFKHPHOLDELOLW\DSODLQWL൵PXVW SUHVHQWIDFWVVKRZLQJ ³WKDWWKHGHIHQGDQW (1) FRPPLWWHGDPDQLSXODWLYH RUGHFHSWLYH act, (2) LQIXUWKHUDQFHRIWKHDOOHJHGVFKHPHWRGHIUDXG  [ZLWK] VFLHQWHUDQG  UHOLDQFH´ Puddu v. 6D Global Technologies, Inc., No. 15 Civ. 8061 (AJN), 2021 WL  DW  6'1<0DU DOWHUDWLRQLQRULJLQDO  TXRWLQJ SEC v. Lee, 720 )6XSSG 6'1< . ๠H6$&VWLOOIDLOVWRPHHWWKHSOHDGLQJUHTXLUHPHQW IRUVFKHPHOLDELOLW\. See In re Teva Securities Litigation)6XSSG '&RQQ ³&RXUWVULJKWO\ LQVLVWWKDWDSODLQWL൵ZKRLQWHQGVWREULQJD5XOHE-5 claLPEDVHGRQERWKPLVVWDWHPHQW DQGVFKHPHOLDELOLW\PXVWGR VRFOHDUO\DQGVSHFL¿FDOO\´W\SLFDOO\³LQWZRVHSDUDWH FRXQWV.´  FLWLQJ In re Smith Barney Transfer Agent Litigation)6XSSG– 61 (S.D.N.Y. 2012)). ,QDQ\HYHQW3ODLQWL൵VIDLOWRVDWLVI\WKHIRXUHOHPHQWVUHTXLUHGWR DOOHJHVFKHPHOLDELOLW\)LUVW3ODLQWL൵V¶WKHRU\RIPDWHULDOPLVUHSUHVHQWDWLRQVDQG RPLVVLRQVUHOLHVRQWKHIDFWWKDWWKH\PDGHWKHVHVWDWHPHQWVZKLOHSXUVXLQJ3URMHFW $WKHQDZKLFKDOOHJHGO\FRQWUDGLFWHGWKHVWDWHPHQWV'RFDW–23, EXW3ODLQWL൵VIDLO to DOOHJHDGLVWLQctive act RIGHFHSWLRQRUPDQLSXODWLRQ³>&@RXUWVKDYHSURKLELWHG SODLQWL൵VIURPUHFDVWLQJWKHLUSOHDGLQJVLQWKLVZD\´SEC v. Rio Tinto plc)WK 37 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 38 of 39  G&LU  FLWLQJ In re Alstom SA)6XSSG 6'1< ). Second, aVGLVFXVVHGDERYH3ODLQWL൵VKDYHQRWVX൶FLHQWO\SOHDGHGVFLHQWHUIRU WKH ,QGLYLGXDO 'HIHQGDQWV๠HUHIRUH3ODLQWL൵V¶VFKHPHOLDELOLW\FODLPVIDLODVWRWKDW element. Menaldi v. Och-=Lৼ&DSLWDOManagement Group LLC)6XSSG (S.D.N.Y. 2017) ³SFKHPHOLDELOLW\FODLPVDUHVXEMHFWWRWKH36/5$SOHDGLQJVWDQGDUG ZLWKUHVSHFWWRVFLHQWHU´ 3ODLQWL൵VWKHUHIRUHKDYHIDLOHGWRDOOHJHWZRRIWKHHOHPHQWV UHTXLUHGWRVXFFHVVIXOO\SOHDGD VFKHPHOLDELOLW\ claim. C. Section 20(a) Liability ๠H,QGLYLGXDO'HIHQGDQWVDUJXHWKDW³3ODLQWL൵V¶Section  D FODLPIDLOVEHFDXVH WKH6$&GRHVQRWSODXVLEO\DOOHJHDSULPDU\YLRODWLRQRISection  E RUFXOSDEOH SDUWLFLSDWLRQE\DQ\'HIHQGDQW´'RF80 DW3ODLQWL൵VDUJXH WKDWWKHLUFODLPSXUVXDQW to Section  D VKRXOGQRWEHGLVPLVVHGEHFDXVHWKH\KDYHDGHTXDWHO\DOOHJHGSULPDU\ vLRODWLRQVRISection 10(b) DQGWKH,QGLYLGXDO'HIHQGDQWVGRQRWGLVSXWHWKHLUVWDWXVDV ³&RQWURO3HUVRQV´RYHU)DUIHWFK'RFDW ³7RDVVHUWDprima facie FDVHXQGHUSection  D DSODLQWL൵µPXVWVKRZDSULPDU\ YLRODWLRQE\WKHFRQWUROOHGSHUVRQDQGFRQWURORIWKHSULPDU\YLRODWRUE\WKHWDUJHWHG GHIHQGDQWDQGVKRZWKDWWKHFRQWUROOLQJSHUVRQZDVLQVRPHPHDQLQJIXOVHQVHDFXOSDEOH SDUWLFLSDQWLQWKHIUDXGSHUSHWUDWHGE\WKHFRQWUROOHGSHUVRQ¶´ Mechel OAO, 811 F. 6XSSGDW2 TXRWLQJ SEC v. First Jersey Securities, Inc., 101 F.3d 1450, 1472 (2d &LU   %HFDXVH3ODLQWL൵VKDYHIDLOHGWRDOOHJHDSULPDU\YLRODWLRQRIWKH([FKDQJH $FWWKHLUFODLPSXUVXDQWWRSection  D LVGLVPLVVHG See 6WHDP¿WWHUV/RFDO  Pension Plan v. Skechers U.S.A., Inc.)6XSSG8 (S.D.N.Y. 2019), Dৼ’d sub nom. Cavalier Fundamental Growth Fund v. Skechers U.S.A., Inc.)$SS¶[ G&LU  D. Leave to Amend 3ODLQWL൵VDVN WKDW LIWKe &RXUW GLVPLVVHVWKHLUFODLPV WKDWLW JUDQW WKHPOHDYHWR DPHQGWKHLU SOHDGLQJV Doc. 83 at 32 n.10. ๠H,QGLYLGXDO'HIHQGDQWVDUJXH WKDWWKH 38 Case 1:23-cv-10982-ER Document 86 Filed 09/29/26 Page 39 of 39 6$&VKRXOGEHGLVPLVVHGZLWKSUHMXGLFHEHFDXVHLWLV3ODLQWL൵V¶WKLUGDWWHPSWWRSOHDGD VHFXULWLHVIUDXGFODLPDIWHUWKHLQLWLDOFRPSODLQWDQGWKHFRQVROLGDWHGFRPSODLQW. Doc. 84 at 15. 0RWLRQVWRDPHQGDUHXOWLPDWHO\ZLWKLQWKHGLVFUHWLRQRIWKHGLVWULFWFRXUWMXGJH Foman v. Davis, 371 U.S. 178, 182 (1962)³[A] GLVPLVVDO ZLWK SUHMXGLFH LVJHQHUDOO\ DSSURSULDWHZKHUH DFRXUW SXWVDSODLQWL൵RQQRWLFHRIDFRPSODLQW¶VGH¿FLHQFLHVDQGWKH SODLQWL൵IDLOVWRFRUUHFWWKRVHGH¿FLHQFLHVDIWHUDPHQGPHQW´ Abu Dhabi Commercial Bank v. Morgan Stanley & Co. Inc., No. 8 Civ. 7508 (SAS), 2009 WL 3346674, at *2 (S.D.N.Y. Oct. 15, 2009). ๠LV&RXUWLQLWVSULRURSLQLRQ, DOHUWHG3ODLQWL൵VWRWKH GH¿FLHQFLHVLQLWVDOOHJDWLRQVRIVFLHQWHUZDUQHGWKDWWKHVWDWHPHQWVWRZKLFK3ODLQWL൵V SRLQWZHUHIRUZDUG-ORRNLQJRSLQLRQVDQGPHUHSX൵HU\DQGFRXQVHOHGWKDWWKH\needed WRSOHDGVFKHPHOLDELOLW\ZLWKPRUHVSHFL¿FLW\'RF'HVSLWHWKHDGGLWLRQRI DOOHJDWLRQVDERXW3URMHFW$WKHQD3ODLQWL൵VKDYHIDLOHGWRUHPHG\WKHVHGH¿FLHQFLHV ๠H 6$&LVWKHUHIRUHGLVPLVVHGZLWKSUHMXGLFH IV. CONCLUSION )RUWKHIRUeJRLQJUHDVRQVWKHPRWLRQWRGLVPLVVLV GRANTED ZLWKSUHMXGLFH ๠H&OHUNRIWKH&RXUWLVUHVSHFWIXOO\GLUHFWHGWRWHUPLQDWHWKHPRWLRQ'RFV. 79 and 82, DQGFORVHWKHFDVH. ,WLVSO ORDERED. Dated: 6HSWHPEHU  1HZ