{"cached_at":"2026-10-30T10:48:22.073158+00:00","cl_docket_id":"68102459","docket":{"resource_uri":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","id":68102459,"court":"https://www.courtlistener.com/api/rest/v4/courts/nysd/","court_id":"nysd","original_court_info":null,"idb_data":null,"clusters":["https://www.courtlistener.com/api/rest/v4/clusters/10991717/","https://www.courtlistener.com/api/rest/v4/clusters/11021154/","https://www.courtlistener.com/api/rest/v4/clusters/11022229/"],"audio_files":[],"assigned_to":"https://www.courtlistener.com/api/rest/v4/people/2655/","referred_to":null,"bankruptcy_information":null,"absolute_url":"/docket/68102459/in-re-farfetch-limited-securities-litigation/","date_created":"2023-12-19T15:11:46.201273-08:00","date_modified":"2026-10-29T10:56:58.841048-07:00","source":1,"appeal_from_str":"","assigned_to_str":"Edgardo Ramos","referred_to_str":"","panel_str":"","date_last_index":"2024-10-07T03:06:50.607432-07:00","date_cert_granted":null,"date_cert_denied":null,"date_argued":null,"date_reargued":null,"date_reargument_denied":null,"date_filed":"2023-12-19","date_terminated":null,"date_last_filing":"2026-10-27","case_name_short":"","case_name":"IN RE FARFETCH LIMITED SECURITIES LITIGATION","case_name_full":"","slug":"in-re-farfetch-limited-securities-litigation","docket_number":"1:23-cv-10982","docket_number_core":"2310982","docket_number_raw":"1:23-cv-10982","docket_number_source":0,"federal_dn_office_code":"1","federal_dn_case_type":"cv","federal_dn_judge_initials_assigned":"ER","federal_dn_judge_initials_referred":"","federal_defendant_number":null,"pacer_case_id":"612301","cause":"15:78m(a) Securities Exchange Act","nature_of_suit":"850 Securities/Commodities","jury_demand":"Plaintiff","jurisdiction_type":"Federal Question","appellate_fee_status":"","appellate_case_type_information":"","mdl_status":"","filepath_ia":"","filepath_ia_json":"","ia_upload_failure_count":null,"ia_needs_upload":true,"ia_date_first_change":"2023-12-19T15:11:46.196549-08:00","date_blocked":null,"blocked":false,"appeal_from":null,"parent_docket":null,"tags":[],"panel":[]},"parties":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/14659599/","id":14659599,"attorneys":[],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Defendant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-10-07T03:06:26.514386-07:00","date_modified":"2024-10-07T03:06:26.514394-07:00","name":"FF Realisations plc","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/14659598/","id":14659598,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867127/","attorney_id":9867127,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867127/","attorney_id":9867127,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867127/","attorney_id":9867127,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":4},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950059/","attorney_id":8950059,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950059/","attorney_id":8950059,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867128/","attorney_id":9867128,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867128/","attorney_id":9867128,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Consolidated Plaintiff","date_terminated":null,"extra_info":"Individually and On Behalf of All Others Similarly Situated","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-10-07T03:06:26.166972-07:00","date_modified":"2024-10-07T03:06:26.166981-07:00","name":"Michael Ragan","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/14659597/","id":14659597,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867126/","attorney_id":9867126,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950060/","attorney_id":8950060,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Lead Plaintiff","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-10-07T03:06:25.873763-07:00","date_modified":"2024-10-07T03:06:25.873773-07:00","name":"Yuanzhe Fu","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321009/","id":13321009,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867129/","attorney_id":9867129,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867129/","attorney_id":9867129,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867130/","attorney_id":9867130,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867130/","attorney_id":9867130,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867131/","attorney_id":9867131,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867131/","attorney_id":9867131,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867132/","attorney_id":9867132,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Defendant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:33.123930-08:00","date_modified":"2024-01-29T18:39:33.123940-08:00","name":"Jose Neves","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321008/","id":13321008,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867129/","attorney_id":9867129,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867129/","attorney_id":9867129,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867130/","attorney_id":9867130,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867130/","attorney_id":9867130,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867131/","attorney_id":9867131,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867131/","attorney_id":9867131,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867132/","attorney_id":9867132,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Defendant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:33.114481-08:00","date_modified":"2024-01-29T18:39:33.114494-08:00","name":"Stephanie  Phair","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321007/","id":13321007,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867129/","attorney_id":9867129,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867129/","attorney_id":9867129,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867130/","attorney_id":9867130,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867130/","attorney_id":9867130,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867131/","attorney_id":9867131,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867131/","attorney_id":9867131,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/9867132/","attorney_id":9867132,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Defendant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:33.104823-08:00","date_modified":"2024-01-29T18:39:33.104833-08:00","name":"Elliot  Jordan","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321006/","id":13321006,"attorneys":[],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Defendant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:33.094397-08:00","date_modified":"2024-01-29T18:39:33.094411-08:00","name":"Jos  Neves","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321005/","id":13321005,"attorneys":[],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Defendant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:33.083552-08:00","date_modified":"2024-01-29T18:39:33.083565-08:00","name":"Farfetch Limited","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321004/","id":13321004,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950060/","attorney_id":8950060,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Movant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]},{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Lead Plaintiff","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:32.971429-08:00","date_modified":"2024-01-29T18:39:32.971443-08:00","name":"Fernando Sulichin","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321003/","id":13321003,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950059/","attorney_id":8950059,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950059/","attorney_id":8950059,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Movant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:32.931662-08:00","date_modified":"2024-01-29T18:39:32.931675-08:00","name":"Renoporto-Investimentos Imobiliarios, LDA","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321002/","id":13321002,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950059/","attorney_id":8950059,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":2},{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950059/","attorney_id":8950059,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Movant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:32.306378-08:00","date_modified":"2024-01-29T18:39:32.306388-08:00","name":"Eduardo Archer Veloso Martins","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321001/","id":13321001,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950058/","attorney_id":8950058,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Movant","date_terminated":null,"extra_info":"","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:32.265938-08:00","date_modified":"2024-01-29T18:39:32.265951-08:00","name":"Dr. Michael  Bievetski","extra_info":""},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/parties/13321000/","id":13321000,"attorneys":[{"attorney":"https://www.courtlistener.com/api/rest/v4/attorneys/8950058/","attorney_id":8950058,"date_action":null,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"role":1}],"party_types":[{"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","docket_id":68102459,"name":"Plaintiff","date_terminated":null,"extra_info":"Individually and on behalf of all others similarly situated,","highest_offense_level_opening":"","highest_offense_level_terminated":"","criminal_counts":[],"criminal_complaints":[]}],"date_created":"2024-01-29T18:39:31.904877-08:00","date_modified":"2024-01-29T18:39:31.904886-08:00","name":"Jasmine Wu","extra_info":""}],"entries":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/483085248/","id":483085248,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/498886306/","id":498886306,"tags":[],"absolute_url":"/docket/68102459/87/in-re-farfetch-limited-securities-litigation/","date_created":"2026-10-27T14:10:42.303806-07:00","date_modified":"2026-10-30T02:29:44.009343-07:00","sha1":"f7d81a8a8927de4f1079fc6af4990704715933c6","page_count":1,"file_size":116104,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.87.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.87.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"         Case 1:23-cv-10982-ER               Document 87            Filed 09/29/26    Page 1 of 1\n\n\n\n\nUNITED STATES DISTRICT COURT\nSOUTHERN DISTRICT OF NEW YORK\n--------------------------------------------------------------------X\n\nIN RE FARFETCH LIMITED SECURITIES\nLITIGATION\n                                                                                23 CIVIL 10982 (ER)\n\n                                                                                  JUDGMENT\n--------------------------------------------------------------------X\n\n\n           It is, ORDERED, ADJUDGED AND DECREED: That for the reasons\n\nstated in the Court's Opinion & Order dated September 29, 2026, the motion to dismiss is\n\nGRANTED with prejudice; accordingly, the case is closed.\n\nDated: New York, New York\n       September 29, 2026\n                                                                          TAMMI M. HELLWIG\n                                                                        _________________________\n                                                                             Clerk of Court\n\n\n                                                              BY:\n                                                                        _________________________\n                                                                              Deputy Clerk\n\f","ocr_status":2,"date_upload":"2026-10-29T10:56:58.722479-07:00","document_number":"87","attachment_number":null,"pacer_doc_id":"127040625696","is_available":true,"is_free_on_pacer":true,"is_sealed":null,"document_type":1,"description":"Judgment - Clerk","acms_document_guid":""}],"date_created":"2026-10-27T14:10:42.266467-07:00","date_modified":"2026-10-29T10:56:56.566027-07:00","date_filed":"2026-09-29","time_filed":"15:59:01","entry_number":87,"recap_sequence_number":"2026-10-27.001","pacer_sequence_number":303,"description":" CLERK'S JUDGMENT  re:  86   Memorandum & Opinion in favor of FF Realisations  plc, Farfetch Limited, Elliot  Jordan, Jos  Neves, Jose Neves, Stephanie  Phair  against Fernando Sulichin, Jasmine Wu, Michael Ragan, Yuanzhe Fu.  It is,  ORDERED, AD JUDGED AND DECREED: That for the reasons stated in the Court's  Opinion & Order dated September 29, 2026, the motion to dismiss is GRANTED with  prejudice; accordingly, the case is closed.   (Signed by Clerk of Court Tammi M Hellwig on 9/29/2026)  (Attachments:  # 1 Appeal Package)  (km)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/482810341/","id":482810341,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/498604373/","id":498604373,"tags":[],"absolute_url":"","date_created":"2026-10-26T11:08:58.021598-07:00","date_modified":"2026-10-26T11:08:58.021610-07:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"","attachment_number":null,"pacer_doc_id":"","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Transmission to Orders and Judgments Clerk","acms_document_guid":""}],"date_created":"2026-10-26T11:08:58.008756-07:00","date_modified":"2026-10-26T11:08:58.008777-07:00","date_filed":"2026-10-26","time_filed":"13:28:33","entry_number":null,"recap_sequence_number":"2026-10-26.001","pacer_sequence_number":null,"description":"","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/479867252/","id":479867252,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/495552023/","id":495552023,"tags":[],"absolute_url":"/docket/68102459/86/in-re-farfetch-limited-securities-litigation/","date_created":"2026-09-29T16:08:37.690253-07:00","date_modified":"2026-10-29T10:56:49.669147-07:00","sha1":"0153af104f39f58409ed4c3264f07a84911ae3cf","page_count":39,"file_size":450114,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.86.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.86.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"       Case 1:23-cv-10982-ER              Document 86          Filed 09/29/26         Page 1 of 39\n\n\n\n\nUNITED STATES DISTRICT COURT\nSOUTHERN DISTRICT OF NEW YORK\n\n\n\n\n    IN RE FARFETCH LIMITED                                         OPINION & ORDER\n    SECURITIES LITIGATION\n                                                                       23-cv-10982 (ER)\n\n\n\n\nRAMOS, D.J.:\n\n           Co-/HDG\u00033ODLQWL\u0d75V\u0003)HUQDQGR\u00036XOLFKLQ\u0003DQG\u0003<XDQ]KH\u0003)X\u0003 FROOHFWLYHO\\\u000f\u0003\u00b33ODLQWL\u0d75V\u00b4 \u0003\n\nEULQJ\u0003WKLV\u0003SXWDWLYH\u0003FODVV\u0003DFWLRQ\u0003DJDLQVW )DUIHWFK /LPLWHG\u0003 \u00b3)DUIHWFK\u00b4 RU\u0003WKH\u0003\u00b3&RPSDQ\\\u00b4)\n\nDQG\u0003LWV\u0003GLUHFW\u0003VXEVLGLDU\\\u0003))\u00035HDOLVDWLRQV\u0003SOF I\u0012N\u0012D )DUIHWFK +ROGLQJV\u0003SOF \u0003 \u00b3))\u0003\n\n+ROGLQJV\u00b4 \u000f\u0003DQG\u0003LQGLYLGXDOV\u0003-RVp\u00030DQXHO\u0003)HUUHLUD\u00031HYHV\u0003 \u00b31HYHV\u00b4 \u000f\u0003(OOLRW\u0003*LOEHUW\u0003-RUGDQ\u0003\n\n    \u00b3-RUGDQ\u00b4 \u000f\u0003DQG\u00036WHSKDQLH\u00031DGLnH\u00033KDLU\u0003.RRLM\u0003 \u00b33KDLU\u00b4 \u0003 FROOHFWLYHO\\\u000f\u0003\u00b3'HIHQGDQWV\u00b4 \u000f\u0003\n\nDOOHJLQJ\u0003YLRODWLRQV\u0003RI\u00036HFWLRQV \u0014\u0013 E \u0003DQG\u0003\u0015\u0013 D \u0003RI\u0003WKH\u00036HFXULWLHV\u0003([FKDQJH\u0003$FW\u0003DQG\u0003\n\n6HFXULWLHV\u0003and ([FKDQJH\u0003&RPPLVVLRQ\u0003 \u00b36(&\u00b4 \u00035XOH\u0003\u0014\u0013E-5. 6SHFL\u00bfFDOO\\\u000f\u0003WKH\u00036HFond\n\nAmended &ODVV\u0003$FWLRQ\u0003&RPSODLQW\u0003 \u00b36$&\u00b4 1 DOOHJHV WKDW\u0003'HIHQGDQWV\u0003made PDWHULDOO\\\u0003\n                                                     0F\n\n\n\n\nIDOVH\u0003RU\u0003PLVOHDGLQJ\u0003VWDWHPHQWV\u000f\u0003RPLWWHG\u0003PDWHULDO\u0003IDFWV\u000f\u0003DQG\u0003FDUULHG\u0003RXW\u0003D\u0003VFKHPH\u0003WR\u0003\n\nGHFHLYH\u0003LQYHVWRUV LQ\u0003RUGHU\u0003WR\u0003DUWL\u00bfFLDOO\\\u0003LQ\u00c0DWH\u0003)DUIHWFK\u0003VWRFN\u0003SULFHV LQ\u0003YLRODWLRQ\u0003RI\u0003\n\nSection 10(b) RI\u0003WKH\u00036HFXULWLHV\u0003([FKDQJH\u0003$FW and 6(&\u00035XOH\u000310b-\u0018\u000f\u0003DQG\u0003WKDW\u00031HYHV\u000f\u0003\n\n-RUGDQ\u000f\u0003DQG\u00033KDLU\u0003 FROOHFWLYHO\\\u000f\u0003\u00b3,QGLYLGXDO\u0003'HIHQGDQWV\u00b4 \u0003ZHUH\u0003FRQWUROOLQJ\u0003SHUVRQV\u0003\n\nRI )DUIHWFK 2 DQG\u0003))\u0003+ROGLQJV, violated Section 20(a) RI\u0003WKH\u00036HFXULWLHV\u0003([FKDQJH\u0003$FW, and\n               1F\n\n\n\n\nDUH\u0003FXOSDEOH\u0003SDUWLFLSDQWV\u0003LQ\u0003WKH\u0003DOOHJHG\u0003IUDXG. %HIRUH\u0003WKH\u0003CRXUW\u0003LV\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u00b6\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003WKH\u00036$&. DocV. 79 and 82. )RU\u0003WKH\u0003UHDVRQV\u0003VHW\u0003IRUWK\u0003\n\nEHORZ\u000f\u0003WKH\u0003PRWLRQ\u0003LV\u0003GRANTED.\n\n\n\n1\n    8QOHVV\u0003RWKHUZLVH\u0003QRWHG\u000f\u0003FLWDWLRQV\u0003WR\u0003\u00b3\u0088B\u00b4\u0003UHIHU\u0003WR\u0003WKH\u00036HFRQG\u0003$PHQGHG\u0003&ODVV\u0003$FWLRQ\u0003&RPSODLQW\u000f\u0003'RF\u0011\u0003\u001a\u001b\u0011\n2\n %\\\u0003DQ\u00032UGHU\u0003RI\u0003WKH\u00038QLWHG\u00036WDWHV\u0003%DQNUXSWF\\\u0003&RXUW\u0003IRU\u0003WKH\u0003'LVWULFW\u0003RI\u0003'HODZDUH\u0003GDWHG\u0003$XJXVW 5, 2024, all\nSHQGLQJ\u0003DFWLRQV\u0003DJDLQVW )DUIHWFK DUH\u0003VWD\\HG\u0011\u0003\n\f     Case 1:23-cv-10982-ER         Document 86        Filed 09/29/26      Page 2 of 39\n\n\n\n\nI.     BACKGROUND\n          A. Factual Background\n       \u0e60H\u0003EDFNJURXQG\u0003LV\u0003GUDZQ\u0003IURP\u0003IDFWXDO\u0003DOOHJDWLRQV\u0003LQ\u0003WKH\u00036$&\u000f\u0003Ashcroft v. Iqbal,\n\n\u0018\u0018\u0019\u00038\u00116\u0011\u0003\u0019\u0019\u0015\u000f\u0003\u0019\u001a\u001b\u0003 \u0015\u0013\u0013\u001c \u000f\u0003GRFXPHQWV\u0003DWWDFKHG\u0003WR\u0003WKH\u0003FRPSODLQW\u0003DV\u0003H[KLELWV\u000f\u0003DQG\u0003\n\nGRFXPHQWV\u0003LQFRUSRUDWHG\u0003E\\\u0003UHIHUHQFH\u0003WKHUHLQ\u000f\u0003DiFolco v. MSNBC Cable L.L.C., 622 F.3d\n\n104, 111 (2d &LU\u0011\u0003\u0015\u0013\u0014\u0013 \u0011\u0003\u0003\u0e60H\u0003&RXUW\u0003DFFHSWV\u0003DOO\u0003ZHOO-SOHDGHG\u0003IDFWXDO\u0003DOOHJDWLRQV\u0003DV\u0003WUXH\u0011\u0003\u0003\n\nId. \u0e60H\u0003&RXUW\u0003DVVXPHV\u0003IDPLOLDULW\\\u0003ZLWK\u0003WKH\u0003IDFWV\u0003SUHVHQWHG\u0003LQ\u0003WKH\u0003SUHYLRXV\u0003RSLQLRQV and\n\nRUGHUV LQ\u0003WKLV\u0003FDVH. See DocV. 73 JUDQWLQJ WKH ,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003\u00bfUVW\u0003motion to\n\nGLVPLVV , 85 GHQ\\LQJ\u00033ODLQWL\u0d75V\u00b6\u0003PRWLRQ\u0003WR\u0003PRGLI\\\u0003WKH\u00033ULYDWH\u0003SHFXULWLHV\u0003LLWLJDWLRQ\u0003\n\nRHIRUP\u0003AFW\u0003 \u00b336/5$\u00b4 DXWRPDWLF\u0003GLVFRYHU\\\u0003VWD\\). )RU\u0003SUHVHQW\u0003SXUSRVHV\u000f\u0003WKH\u0003&RXUW\u0003\n\nSURYLGHV\u0003DQ\u0003DEEUHYLDWHG\u0003VXPPDU\\\u0003RI\u0003WKH UHOHYDQW\u0003IDFWV\u0003KHUHLQ\u0011\n\n       \u0e60LV\u0003LV\u0003D\u0003IHGHUDO\u0003VHFXULWLHV\u0003FODVV\u0003DFWLRQ\u0003ODZVXLW\u0003EURXJKW\u0003RQ\u0003EHKDOI\u0003RI\u0003VKDUHKROGHUV\u0003\n\nZKR\u0003SXUFKDVHG )DUIHWFK\u0003VHFXULWLHV\u0003EHWZHHQ\u0003'HFHPEHU\u0003\u0014\u000f\u0003\u0015\u0013\u0015\u0015\u0003DQG\u0003'HFHPEHU\u0003\u0014\u001a\u000f\u0003\u0015\u0013\u0015\u0016\n\nWKH\u0003\u00b3&ODVV\u00033HULRG\u00b4 \u0011 \u0088\u0003\u0014\u0011 3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003'HIHQGDQWV\u0003PDGH\u0003PDWHULDOO\\\u0003IDOVH\u0003RU\u0003\n\nPLVOHDGLQJ\u0003VWDWHPHQWV\u000f\u0003RPLWWHG\u0003PDWHULDO\u0003IDFWV\u000f\u0003DQG\u0003GHFHLYHG\u0003LQYHVWRUV\u0003LQ\u0003RUGHU\u0003WR\u0003\n\nDUWL\u00bfFLDOO\\\u0003LQ\u00c0DWH )DUIHWFK\u0003VWRFN\u0003SULFHV\u0003LQ\u0003YLRODWLRQ\u0003RI\u0003Section 10(b) and 5XOH 10b-5,\n\n\u0088\u0088 216\u201317, DQG\u0003WKDW\u00031HYHV\u000f\u0003-RUGDQ\u000f\u0003DQG\u00033KDLU, DV\u0003FRQWUROOLQJ\u0003SHUVRQV\u0003RI )DUIHWFK\u0003and FF\n\n+ROGLQJV, violated Section 20(a), \u0088\u0003\u001526.\n\n       )DUIHWFK\u0003ZDV IRXQGHG\u0003LQ\u0003\u0015\u0013\u0013\u001a\u0003aV\u0003D\u0003WHFKQRORJ\\\u0003FRPSDQ\\\u000f VXSSRUWLQJ WKLUG-SDUW\\\u0003\nVDOHV\u0003RI\u0003OX[XU\\\u0003JRRGV\u0003WR\u0003FRQVXPHUV\u0003ZRUOGZLGH\u0003YLD\u0003LWV\u0003GLJLWDO\u0003PDUNHWSODFH\u0003SODWIRUP\u0011\u0003 \u0088 2.\n\n)DUIHWFK\u0003RSHUDWHG\u0003DV\u0003D\u0003SULYDWH\u0003FRPSDQ\\\u0003IRU\u0003RYHU\u0003ten \\HDUV\u0003EHIRUH\u0003ODXQFKLQJ\u0003LWV\u0003LQLWLDO\u0003\n\nSXEOLF\u0003R\u0d75HULQJ\u0003 \u00b3,32\u00b4 \u0003LQ\u00036HSWHPEHU\u0003\u0015\u0013\u0014\u001b\u000f\u0003ZLWK\u0003VKDUHV\u0003OLVWHG\u0003RQ\u0003WKH\u00031HZ\u0003<RUN\u00036WRFN\u0003\n\n([FKDQJH\u0003 \u00b31<6(\u00b4 \u0011 Id. PULRU\u0003WR\u0003WKH\u0003,32\u000f\u0003RQ\u00030D\\\u0003\u0014\u0018\u000f\u0003\u0015\u0013\u0014\u001b\u000f\u0003\u00b3)DUIHWFK\u0003/LPLWHG\u0003ZDV\u0003\n\nLQFRUSRUDWHG\u0003XQGHU\u0003WKH\u0003ODZV\u0003RI\u0003WKH\u0003&D\\PDQ\u0003,VODQGV\u0003WR\u0003EHFRPH\u0003WKH\u0003KROGLQJ\u0003FRPSDQ\\\u0003RI\u0003\n\n)DUIHWFK\u0011FRP\u0003/LPLWHG\u0003DQG\u0003LWV\u0003VXEVLGLDULHV\u0011\u00b4\u0003\u0003\u0088\u0003\u0015\u0014\u0013\u0011\u0003\u0003Plainti\u0d75V\u0003DOOHJH\u0003WKDW )DUIHWFK\u0003\n\nSURPRWHG\u0003LWVHOI\u0003WR\u0003LQYHVWRUV\u0003EDVHG\u0003RQ\u0003LWV\u0003\u00b3ORZ\u0003ULVN\u000f\u0003KLJK\u0003PDUJLQ\u00b4\u0003WKLUG-SDUW\\\u0003PDUNHWSODFH\u0003\n\nSODWIRUP\u0003GHVLJQ\u0011 \u0088\u0003\u0015, 36. 3ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW\u0003DV\u0003D\u0003UHVXlt, )DUIHWFK\u0003DFKLHYHG\u0003D\u0003\n\n\n                                             2\n\f    Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 3 of 39\n\n\n\n\nVXFFHVVIXO\u0003,32\u0003WKDW\u0003UDLVHG\u0003\u0007\u0014\u0003ELOOLRQ\u0003DQG\u0003OHG\u0003WR\u0003DQ\u0003\u0007\u001b\u0003ELOOLRQ\u0003YDOXDWLRQ\u0011 \u0088\u0003\u0015. 3ODLQWL\u0d75V\u0003\n\nDVVHUW\u0003WKDW\u000f\u0003\u00b3VHHPLQJO\\\u0003RYHUQLJKW\u000f\u00b4\u0003WKH\u0003&RPSDQ\\\u0003DEDQGRQHG\u0003WKLV\u0003EXVLQHVV\u0003PRGHO\u000f\u0003VKLIWLQJ\u0003\n\nLQVWHDG\u0003WR\u0003D\u0003\u00b3JURZWK-E\\-DFTXLVLWLRQ\u00b4\u0003VWUDWHJ\\\u0003IRFXVLQJ\u0003RQ\u0003\u00b3DFTXLVLWLRQV RI\u0003\u00bfUVW-SDUW\\\u0003\n\nUHWDLOHUV\u0003DQG\u0003ZKROHVDOH\u0003GLVWULEXWRUV\u00b4\u0003WRWDOLQJ\u0003\u0007\u0014\u0011\u0019\u0003ELOOLRQ\u0011 Id. 6SHFL\u00bfFDOO\\\u000f\u0003)DUIHWFK\u0003\n\nSXUFKDVHG\u00036WDGLXP\u0003*RRGV\u000f\u0003D\u0003\u00bfUVW-SDUW\\\u0003UHWDLOHU\u000f IRU\u0003\u0007\u0015\u0018\u0013\u0003PLOOLRQ RQ\u0003'HFHPEHU\u0003\u0014\u0015\u000f\u0003\u0015\u0013\u0014\u001b,\n\n7RSOLIH, D\u0003OX[XU\\\u0003H-FRPPHUFH\u0003SODWIRUP\u000f IRU\u0003\u0007\u0018\u0013\u0003PLOOLRQ\u0003RQ\u0003)HEUXDU\\\u0003\u0015\u001b\u000f\u0003\u0015\u0013\u0014\u001c\u000f\u0003DQG\u00031HZ\u0003\n\n*XDUGV\u0003*URXS\u0003 \u00b3NGG\u00b4)\u000f\u0003D\u0003OX[XU\\\u0003IDVKLRQ\u0003FRQJORPHUDWH, IRU\u0003\u0007\u0019\u001a\u0018\u0003PLOOLRQ RQ\u0003$XJXVW\u0003\u001b\u000f\u0003\n\n2019. \u0088\u000339. )ROORZLQJ\u0003WKHVH\u0003DFTXLVLWLRQV\u000f\u0003)DUIHWFK\u0003UHRUJDQL]HG\u0003LWV\u0003FRUSRUDWH\u0003VWUXFWXUH\u0003\n\ninto WKUHH\u0003JURXSV\u001d\u0003\u0003 \u0014 WKH\u0003dLJLWDO\u0003SODWIRUP\u000f\u0003KDQGOLQJ\u0003WKLUG- DQG\u0003\u00bfUVW-SDUW\\\u0003WUDQVDFWLRQV\u000f\u0003 \u0015 \u0003\n\nWKH\u0003bUDQG\u0003SODWIRUP\u000f\u0003KDQGOLQJ\u0003SURGXFWLRQ\u0003DQG\u0003GLVWULEXWLRQ\u0003RI\u0003WKH\u0003EUDQGV\u0003RZQHG and\n\nOLFHQVHG E\\\u00031**\u000f\u0003DQG\u0003 \u0016 in-VWRUH\u000f\u0003KDQGOLQJ\u0003EULFN-and-PRUWDU\u0003VWRUHV\u0011\u0003\u0003\u0088\u0003\u0017\u0013\u0011\n\n       7R\u0003\u00bfQDQFH\u0003WKLV\u0003VWUDWHJ\\\u000f\u0003)DUIHWFK\u0003WRRN\u0003RQ\u0003VXEVWDQWLDO\u0003GHEW\u000f\u0003LQFOXGLQJ\u0003\u0007\u0014\u0011\u0015\u0018\u0003ELOOLRQ\u0003\n\nin 2020. \u0088\u00033. 6SHFL\u00bfFDOO\\\u000f\u0003LQ\u0003)HEUXDU\\\u0003\u0015\u0013\u0015\u0013, )DUIHWFK\u0003LVVXHG\u0003DQG\u0003VROG\u0003\u0007\u0015\u0018\u0013\u0003PLOOLRQ\u0003LQ\u0003\n\nFRQYHUWLEOH\u0003VHQLRU\u0003QRWHV\u000f LQ\u0003$SULO\u0003\u0015\u0013\u0015\u0013\u000f\u0003\u0007\u0017\u0013\u0013\u0003PLOOLRQ\u0003LQ\u0003FRQYHUWLEOH\u0003VHQLRU\u0003QRWHV\u000f\u0003DQG\u0003LQ\u0003\n\n1RYHPEHU\u0003\u0015\u0013\u0015\u0013\u000f\u0003\u0007\u0019\u0013\u0013\u0003PLOOLRQ\u0003LQ\u0003FRQYHUWLEOH\u0003VHQLRU\u0003QRWHV\u0011\u0003\u0003\u0088\u0088 46\u201348.\n\n       3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u000f\u0003EHJLQQLQJ\u0003LQ\u0003\u0015\u0013\u0015\u0013\u000f\u0003WKH\u0003&29,'-\u0014\u001c\u0003SDQGHPLF\u0003DQG\u0003WKH\u0003VSLNH\u0003LQ\u0003\n\nonline VKRSSLQJ\u0003\u00b3SURYLGHG\u0003D\u0003IDoDGH\u0003RI\u0003SUR\u00bfWDELOLW\\\u00b4\u0003ZKLOH\u0003PDVNLQJ\u0003WKH\u0003WUXH\u0003H[WHQW\u0003RI\u0003WKH\u0003\n\nQHJDWLYH\u0003LPSDFW\u0003RI\u0003WKHVH DFTXLVLWLRQV. \u0088\u0003\u0018\u0011\u0003 3ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKHVH\u0003DFTXLVLWLRQV\u0003OHG\u0003WR\u0003\n\nLQH\u0d76FLHQFLHV\u000f\u0003LQFOXGLQJ\u0003RYHUODSSLQJ\u0003EXVLQHVV\u0003XQLWV, XQVXVWDLQDEOH\u0003RSHUDWLQJ\u0003H[SHQVHV\u0003\n\nUHODWLQJ\u0003WR\u0003H[FHVV\u0003LQYHQWRU\\\u0003DQG\u0003ODUJH\u0003XSIURQW\u00039DOXH\u0003$GGHG\u00037D[\u0003 \u00b39$7\u00b4 \u0003REOLJDWLRQV\u000f\u0003DQG\u0003\n\nKHDY\\\u0003GLVFRXQWV\u0003OHDGLQJ\u0003WR\u0003ORZ\u0003SUR\u00bfW\u0003PDUJLQV\u0011 Id. 3ODLQWL\u0d75V DOOHJH\u0003WKDW )DUIHWFK\u0003ZDV\u0003\n\nQHDULQJ\u0003D\u0003OLTXLGLW\\\u0003FULVLV\u0003DQG\u0003SRWHQWLDO\u0003EDQNUXSWF\\\u000f\u0003VXVWDLQHG\u0003RQO\\\u0003E\\\u0003GHEW\u0003\u00bfQDQFLQJ,\n\nZKLFK\u0003ZDV\u0003UDSLGO\\\u0003GHSOHWLQJ. Id.\n\n       )DUIHWFK\u0003IDLOHG\u0003WR\u0003PHHW LWV H[SHFWDWLRQV\u0003IRU WKH\u0003WKLUG\u0003TXDUWHU\u0003RI\u0003\u0015\u0013\u0015\u0014 \u00b3Q3 2021\u00b4\n\nDQG\u0003ORZHUHG\u0003LWV\u0003SURMHFWLRQV\u0003IRU\u00034\u0017 2021\u0011\u0003\u0003\u0088\u000353. )DUIHWFK\u0003IDFHG\u0003IXUWKHU\u0003FKDOOHQJHV\u0003ZKHQ\u0003it\n\nFHDVHG\u0003RSHUDWLRQV\u0003LQ\u00035XVVLD\u000f ZKLFK\u0003DFFRXQWHG\u0003IRU\u0003\u0015\u0013\b\u0003RI\u0003LWV\u0003VDOHV, IROORZLQJ\u00035XVVLD\u00b6V\u0003\n\nLQYDVLRQ\u0003RI\u00038NUDLQH, \u0088\u0003\u0018\u0018, and XSRQ\u0003WKH\u0003GHDWK\u0003RI\u00039LUJLO\u0003$EORK\u000f\u0003WKH\u0003IRXQGHU\u0003DQG\u0003FUHDWive\n\n                                              3\n\f    Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26       Page 4 of 39\n\n\n\n\nGLUHFWRU\u0003RI\u00032\u0d75-:KLWH\u000f\u0003D\u0003IDVKLRQ\u0003EUDQG\u0003ZKLFK\u0003FRQWULEXWHG DQ\u0003HVWLPDWHG\u0003\u001a\u0018-\u001b\u0013\b\u0003RI\u00031**\u00b6V\u0003\n\nVDOHV, \u0088\u0003\u0018\u001b\u0011\u0003\u0003\u0e60HVH\u0003HYHQWV led tR\u0003ZHDN\u0003SHUIRUPDQFH\u0003LQ\u0003ERWK\u00034\u0014\u0003DQG\u00034\u0015\u0003\u0015\u0013\u0015\u0015\u000f\u0003OHDGLQJ\u0003\n\n)DUIHtFK\u0003WR\u0003ORZHU\u0003LWV\u0003JXLGDQFH\u0003IRU\u0003WKH\u0003\u0015\u0013\u0015\u0015\u0003\u00bfVFDO\u0003\\HDU \u00b3)<\u0003\u0015\u0013\u0015\u0015\u00b4 . \u0088\u0088 56, 59\u201360.\n\n       1RQHWKHOHVV\u000f\u0003)DUIHWFK\u0003FRQWLQXHG PDNLQJ DGGLWLRQDO\u0003DFTXLVLWLRQV\u0003DQG\u0003VWUDWHJLF\u0003\n\nLQYHVWPHQWV\u0003LQ\u0003\u0015\u0013\u0015\u0015\u0011\u0003\u0003\u0088\u00033. ,Q\u0003WKH\u0003\u00bfUVW\u0003KDOI\u0003RI\u0003\u0015\u0013\u0015\u0015\u000f\u0003)DUIHWFK\u0003DFTXLUHG\u0003EHDXW\\\u0003UHWDLOHU\n\n9LROHW\u0003*UH\\\u0003IRU\u0003DSSUR[LPDWHO\\\u0003\u0007\u00186 million LQ\u0003WRWDO\u0003DVVHWV, \u0088\u000363, 1**\u0003SDUWQHUHG\u0003ZLWK\u0003\n\n$GLGDV\u0003WR\u0003EULQJ\u0003WR\u0003PDUNHW\u0003OX[XU\\\u0003FROODERUDWLRQV\u0003ZLWK\u00035HHERN\u000f\u0003FRPPLWWLQJ\u0003WR\u0003PLQLPXP\u0003\n\nUR\\DOW\\\u0003SD\\PHQWV RI\u0003DSSUR[LPDWHO\\\u0003\u0007\u0016\u001a\u0017\u0003PLOOLRQ\u0003RYHU\u0003\u0014\u0014\u0003\\HDUV, \u0088\u0003\u0019\u0018\u000f\u0003DQG\u0003)DUIHWFK\u0003\n\nLQYHVWHG\u0003\u0007\u0015\u0013\u0013\u0003PLOOLRQ\u0003LQ\u00031HLPDQ\u00030DUFXV\u0003*URXS\u000f\u0003\u0088\u0003\u0019\u001a. 'XULQJ\u0003WKH\u00034\u0015\u0003\u0015\u0013\u0015\u0015\u0003LQYHVWRU\u0003call,\n\nNeveV\u0003VWDWHG\u0003WKDW\u0003WKH\u0003&RPSDQ\\\u0003ZDV\u0003ORRNLQJ\u0003WR\u0003UHGXFH\u0003KHDGFRXQW\u0003DQG\u0003PDUNHWLQJ\u0003H[SHQVHV\u0003\n\nto FXW\u0003FRVWV\u0003GULYHQ\u0003E\\\u0003LQH\u0d76FLHQF\\\u0011\u0003\u0003\u0088\u0003\u001a\u0019\u0011\u0003\u0003)DUIHWFK\u00b6V\u0003SULPDU\\\u0003RSHUDWLQJ\u0003VXEVLGLDU\\\u0003HQWHUHG\u0003\n\nLQWR\u0003D\u0003\u0007\u0017\u0013\u0013\u0003PLOOLRQ\u0003FUHGLW\u0003DJUHHPHQW\u0003LQ\u00032FWREHU\u0003\u0015\u0013\u0015\u0015\u000f\u0003ZKLFK\u0003ZDV\u0003H[SDQGHG\u0003E\\\u0003DQ\u0003\n\nDGGLWLRQDO\u0003\u0007\u0015\u0013\u0013\u0003PLOOLRQ\u0003LQ\u0003$XJXVW\u0003\u0015\u0013\u0015\u0016\u0011 \u0088\u0003\u0016\u0011\u0003\u00033ODLQWL\u0d75V\u0003claim WKDW\u0003OHDGLQJ\u0003XS\u0003WR\u0003DQG\u0003\n\nWKURXJK\u0003WKH\u0003&ODVV\u00033HULRG\u000f )DUIHWFK\u0003JDYH\u0003WKH\u0003LPSUHVVLRQ WKDW\u0003LW\u0003ZDV\u0003\u00bfQDQFLDOO\\\u0003VHFXUH, \u0088 4,\n\nDQG\u0003WKDW\u0003LWV \u00bfQDQFLDOV\u0003VXSSRUWHG\u0003IXWXUH JURZWK\u0003DLPHG\u0003DW\u0003UHWXUQLQJ\u0003WR\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003\n\nSRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ, \u0088\u0003\u0019\u0011\u0003\n\n       3ODLQWL\u0d75V\u0003DOOHJH\u000f\u0003KRZHYHU\u000f\u0003WKDW\u0003LQ\u0003'HFHPEHU\u0003\u0015\u0013\u0015\u0015\u000f )DUIHWFK\u0003VHFUHWO\\\u0003initiated\n\n\u00b33URMHFW\u0003$WKHQD\u000f\u00b4\u0003DQ\u0003H\u0d75RUW\u0003WR\u0003SXUVXH\u0003D\u0003WDNH-SULYDWH\u0003RU\u0003VLPLODU\u0003WUDQVDFWLRQ\u000f\u0003ZKLFK\u0003WKH\\\u0003GLG\u0003\n\nnot GLVFORVH WR\u0003LQYHVWRUV. \u0088\u00036. 3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003WKLV\u0003SODQ\u0003GHYROYHG\u0003LQWR\u0003DQ\u0003H\u0d75RUW\u0003\u00b3WR\u0003\n\nVHFXUH\u0003D\u0003QHDU-LGHQWLFDO\u0003IXWXUH\u0003IRU\u0003WKH\u0003)DUIHWFK\u0003%XVLQHVV\u0003IUHH\u0003RI\u0003WKH\u0003\u00bfQDQFLDO\u0003REOLJDWLRQV\u0003\n\nDQG\u0003OLDELOLWLHV\u0003KHOG\u0003E\\\u0003WKH\u0003SXEOLF\u0003HQWLW\\\u000f\u0003)DUIHWFK\u0011\u00b4 \u0088\u0003\u001c0. 'HVSLWH\u0003LWV\u0003H\u0d75RUWV\u000f\u0003)DUIHWFK\u0003ZDV\u0003\n\nQRW\u0003DEOH\u0003WR\u0003VHFXUH\u0003WKH\u0003QHFHVVDU\\\u0003FDSLWDO\u0003E\\\u0003WKH\u0003IDOO\u0003RI\u0003\u0015\u0013\u0015\u0016\u0011 \u0088\u0003\u001c\u0017\u0011\u0003\u0003,Q\u0003UHVSRQVH\u000f\u0003WKH\u0003\n\n&RPSDQ\\\u0003SODQQHG\u0003WR\u0003GLVSRVH\u0003RI\u0003)DUIHWFK\u0003VWRFN and VHFXUH\u0003D\u0003IXWXUH\u0003IRU\u0003WKH\u0003EXVLQHVV. Id.\n\n3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003)DUIHWFK\u0003IRUPHG\u0003D\u0003VSHFLDO\u0003FRPPLWWHH\u0003DQG\u0003SXUVXHG\u0003D\u0003VDOH\u0003RI\u0003LWV DVVHWV\u0003\n\nLQ\u0003D\u0003VLQJOH\u0003WUDQVDFWLRQ\u000f\u0003UHVXOWLQJ\u0003LQ\u0003WKH\u0003ZULWH-R\u0d75\u0003RI\u0003\u0007\u0014\u0003ELOOLRQ\u0003LQ\u0003GHEW\u0011 \u0088\u0003\u0019\u0011\n\n       3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003XQWLO\u0003$XJXVW\u0003\u0015\u0013\u0015\u0016\u000f\u0003ZKLOH\u0003)DUIHWFK\u0003HQJDJed LQ\u00033URMHFW\u0003$WKHQD\u000f\u0003\n\n'HIHQGDQWV\u0003PDGH\u0003QXPHURXV\u0003UHSUHVHQWDWLRQV\u0003WR\u0003WKH\u0003PDUNHW\u0003VXJJHVWLQJ\u0003WKH\u0003FRPSDQ\\\u0003\n\n                                               4\n\f    Case 1:23-cv-10982-ER           Document 86         Filed 09/29/26       Page 5 of 39\n\n\n\n\nPDLQWDLQHG\u0003D\u0003VWURQJ\u0003\u00bfQDQFLDO\u0003SRVWXUH\u0011 \u0088\u00036\u20137. 3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003'HIHQGDQWV\u0003WRRN\u0003VWHSV\u0003\n\nWR\u0003FRQFHDO\u0003WKH\u0003&RPSDQ\\\u00b6V\u0003JURZLQJ\u0003OLTXLGLW\\\u0003FULVLV WR\u0003HQVXUH\u0003FRQWLQXHG\u0003DFFHVV\u0003WR\u0003\u00bfQDQFLQJ\u0003\n\nDQG\u0003SURS\u0003XS\u0003WKH\u0003VWRFN\u0003SULFH\u0003RI\u0003)DUIHWFK\u0003ORQJ\u0003HQRXJK\u0003WR VHFXUH\u0003D\u0003IXWXUH\u0003IRU\u0003WKH\u0003)DUIHWFK\u0003\n\nbXVLQHVV\u0011\u0003 \u0088\u0003\u001c\u0019\u0011\u0003 )RU\u0003H[DPSOH\u000f\u0003GXULQJ\u0003WKH\u0003&RPSDQ\\\u00b6V\u0003&DSLWDO\u00030DUNHWV\u0003'D\\\u0003RQ\u0003'HFHPEHU\u0003\n\n\u0014\u000f\u0003\u0015\u0013\u0015\u0015\u000f\u00031HYHV\u0003UHSUHVHQWHG\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003JRLQJ\u0003\u00b3WR\u0003FRQWLQXH\u0003RQ\u0003D\u0003SDWK\u0003RI\u0003JURZWK\u000f\u0003\n\nSUR\u00bfWDEOH\u0003JURZWK\u0003DQG\u0003FDVK\u0003\u00c0RZ\u0003JHQHUDWLRQ\u0011\u00b4\u0003\u0003\u0088\u0003\u001c\u001a. 2Q\u0003WKH\u0003VDPH\u0003GD\\, -RUGDQ\u0003VWDWed:\n\n\u00b3>:@H\u0003KDYH\u0003FOHDU\u0003YLVLELOLW\\\u0003WKDW\u0003ZH\u0003ZLOO\u0003GHOLYHU\u0003QRW\u0003RQO\\\u0003JURZWK\u000f\u0003EXW\u0003VXVWDLQHG\u0003SUR\u00bfWDELOLW\\\u0003\n\nDQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0003PRYLQJ\u0003IRUZDUG\u0011\u00b4\u0003\u0003\u0088\u0003\u0014\u0013\u0014\u0011\u0003\u0003$W\u0003WKH\u0003EHJLQQLQJ\u0003RI\u0003&DSLWDO\u0003\n\n0DUNHWV\u0003'D\\\u000f\u0003WKH\u0003LQWURGXFWRU\\\u0003VSHDNHU\u0003VWDWHG\u001d\n           :H\u0003ZLOO\u0003DOVR\u0003EH\u0003PDNLQJ\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003WRGD\\\u0011\u0003\u0003$FWXDO\u0003\n           UHVXOWV\u0003 FRXOG\u0003 GL\u0d75HU\u0003 PDWHULDOO\\\u0003 IURP\u0003 WKRVH\u0003 IRUZDUG[-ORRNLQJ@\n           VWDWHPHQWV\u000f\u0003 DQG\u0003 ZH\u0003 XQGHUWDNH\u0003 QR\u0003 REOLJDWLRQ\u0003 WR\u0003 SXEOLFO\\\u0003 XSGDWH\u0003 RU\u0003\n           UHYLVH\u0003WKHP\u0011\u0003\u0003)RU\u0003D\u0003GLVFXVVLRQ\u0003RI\u0003VRPH\u0003RI\u0003WKH\u0003IDFWRUV\u0003WKDW\u0003FRXOG\u0003FDXVH\u0003\n           DFWXDO\u0003UHVXOWV\u0003WR\u0003GL\u0d75HU\u0003IURP\u0003WKHVH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u000f\u0003SOHDVH\u0003\n           UHIHU\u0003 WR\u0003 RXU\u0003 6(&\u0003 \u00bfOLQJV\u0011\u0003 \u0003 :H\u0003 ZLOO\u0003 DOVR\u0003 UHIHU\u0003 WR FHUWDLQ\u0003 QRQ-IFRS\n           \u00bfQDQFLDO\u0003PHDVXUHV\u0011\u0003\u0003<RX\u0003FDQ\u0003\u00bfQG\u0003UHFRQFLOLDWLRQV\u0003RI\u0003WKHVH\u0003PHDVXUHV\u0003\n           WR\u0003WKH\u0003PRVW\u0003GLUHFWO\\\u0003FRPSDUDEOH\u0003,)56\u0003\u00bfQDQFLDO\u0003PHDVXUHV\u0003LQ\u0003WKH\u0003VOLGH\u0003\n           SUHVHQWDWLRQV\u000f\u0003ZKLFK\u0003ZLOO\u0003EH\u0003DYDLODEOH\u0003DW\u0003IDUIHWFKLQYHVWRUV\u0011FRP\u0011\nDoc. 81-8 at 5. Plainti\u0d75V DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003UHSUHVHQWDWLRQV\u0003GXULQJ\n\n&DSLWDO\u00030DUNHWV\u0003'D\\ FUHDWHG\u0003WKH\u0003IDOVH\u0003LPSUHVVLRQ\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003FRPPLWWHG\u0003WR\u0003\n\nDFKLHYLQJ\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0003WKURXJK\u0003RUJDQLF\u0003JURZWK\u0003RI\u0003H[LVWLQJ\u0003LQYHVWPHQWV,\n\nDQG\u0003WKDW\u0003LW\u0003FRXOG DFKLHYH\u0003WKLV\u0003JURZWK\u0003WKURXJK\u0003LWV\u0003EDODQFH\u0003VKHHW\u0003DQG\u0003FUHGLW\u0003OLQHV\u0011\u0003\u0003\u0088\u0003\u0014\u0013\u0016\u0011\u0003\u0003\n\n3ODLQWL\u0d75V\u0003IXUWKHU\u0003DOOHJH\u0003WKDW\u0003WKURXJKRXW\u0003\u0015\u0013\u0015\u0016\u000f\u0003'HIHQGDQWV\u0003IDOVHO\\\u0003DVVXUHG\u0003LQYHVWRUV\u0003RI\u0003WKH\u0003\n\n&RPSDQ\\\u00b6V\u0003QHDU-WHUP\u0003DQG\u0003ORQJ-WHUP\u0003OLTXLGLW\\\u0003VWUHQJWK\u000f\u0003UHLQIRUFHG\u0003E\\\u0003)DUIHWFK\u00b6V\u0003\n\ncommitmHQW\u0003WR\u0003FRVW\u0003FRQWURO\u0003DQG\u0003UHWXUQLQJ\u0003WR\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u000f\u0003LQFOXGLQJ\u0003RQ\u0003\n\n)HEUXDU\\\u0003\u0015\u0016\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003GXULQJ\u0003DQ\u0003LQYHVWRU\u0003FDOO\u0003GLVFXVVLQJ\u00034\u0017\u0003\u0015\u0013\u0015\u0015. \u0088\u0003\u0014\u0013\u0017\u0011\u0003 $W\u0003WKH\u0003EHJLQQLQJ\u0003\n\nRI\u0003WKLV\u0003FDOO\u000f\u0003D\u0003UHSUHVHQWDWLYH\u0003RI\u0003)DUIHWFK\u0003VWDWHG\u000f\u0003\u00b3[b]HIRUH\u0003ZH\u0003EHJLQ\u000f\u0003ZH\u0003ZRXOG\u0003OLNH\u0003WR\u0003\n\nUHPLQG\u0003\\RX\u0003WKDW\u0003RXU\u0003GLVFXVVLRQV\u0003WRGD\\\u0003ZLOO\u0003LQFOXGH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0011\u0003 $FWXDO\u0003\n\nUHVXOWV\u0003FRXOG\u0003GL\u0d75HU\u0003PDWHULDOO\\\u0003IURP\u0003WKRVH\u0003LQGLFDWHG\u0003LQ\u0003WKH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u000f\u0003DQG\u0003\n\nIRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003PDGH\u0003WRGD\\\u0003VSHDN\u0003RQO\\\u0003WR\u0003RXU\u0003H[SHFWDWLRQV\u0003DV\u0003RI\u0003WRGD\\\u0011\u00b4\u0003\u0003\n\n\n                                               5\n\f    Case 1:23-cv-10982-ER          Document 86         Filed 09/29/26      Page 6 of 39\n\n\n\n\nDoc. 81-10 at 5. PKDLU\u0003WROG\u0003LQYHVWRUV\u0003WKDW\u0003WKH\u0003&RPSDQ\\\u0003ZDV\u0003LQ\u0003D\u0003\u00b3VWURQJ\u0003SRVLWLRQ\u00b4\u0003WR\u0003\n\nGHOLYHU\u0003RQ\u0003LWV\u0003JRDOV\u0003IRU\u0003\u0015\u0013\u0015\u0016\u000f\u0003DQG\u00031HYHV\u0003VWDWHG WKDW\u0003)DUIHWFK\u0003ZDV\u0003\u00b3an even VWURQJHU\u0003DQG\u0003\n\nPRUH\u0003H\u0d76FLHQW RUJDQL]DWLRQ,\u00b4\u0003DQG\u0003WKDW\u0003KH\u0003ZDV\u0003\u00b3PRUH\u0003FRQ\u00bfGHQW\u0003WKDQ\u0003HYHU\u00b4\u0003DERXW\u0003WKH\u0003\n\n&RPSDQ\\\u00b6V\u0003\u00b3SURVSHFWV\u0003WR\u0003GHOLYHU\u0003JURZWK\u000f\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0003LQ\u0003\u0015\u0013\u0015\u0016\u0003\n\nDQG\u0003EH\\RQG\u0011\u00b4 \u0088\u0088 104\u201305, 158. 3KDLU DOVR VWDWHG\u001d\u0003\u0003\u00b3\u0e60H\u0003ZRUN\u0003ZH\u00b6YH\u0003GRQH\u0003WKURXJKRXW\u0003\n\n\u0015\u0013\u0015\u0015\u0003DQG\u0003WKH\u0003\\HDUV\u0003SULRU\u000f\u0003LQYHVWLQJ\u0003LQ\u0003RXU\u0003FXVWRPHU\u0003DQG\u0003LQ\u0003RXU\u0003SDUWQHUVKLSV\u0003ZLWK\u0003EUDQGV\u0003\n\nDQG\u0003ERXWLTXHV\u0003SXWV\u0003XV\u0003LQ\u0003D\u0003VWURQJ\u0003SRVLWLRQ\u0003WR\u0003GHOLYHU\u0003RQ\u0003RXU\u0003\u0015\u0013\u0015\u0016\u0003JRDOV\u0011\u00b4\u0003\u0003\u0088\u0003\u0014\u0013\u0018\u0011\u0003\u00031HYHV\n\nDOVR\u0003VWDWHG\u0003WKDW\u0003)DUIHWFK\u0003KDG\u0003\u00b3DOO\u0003WKH\u0003NH\\\u0003HOHPHQWV\u0003WR\u0003H[HFXWH\u0003RQ\u0003>LWV@ SODQ.\u00b4 \u0088 157.\n\n       On 0DUFK \u001b\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003)DUIHWFK\u0003\u00bfOHG\u0003LWV\u0003)RUP\u0003\u0015\u0013-)\u0003IRU\u0003)<\u0003\u0015\u0013\u0015\u0015. Doc. 81-\u0014\u0015\u0011\u0003\u0003\u0e60H\u0003\n\nGRFXPHQW\u0003DGYLVHG, \u00b3>W@KLV\u0003$QQXDO\u00035HSRUW\u0003FRQWDLQV\u0003VWDWHPHQWV\u0003WKDW\u0003FRQVWLWXWH\u0003\u00b5IRUZDUG-\n\nORRNLQJ\u0003VWDWHPHQWV\u00b6\u0003ZLWKLQ\u0003WKH\u0003PHDQLQJ\u0003RI\u0003WKH\u0003>36/5$@\u0011\u0003 :H\u0003LQWHQG\u0003VXFK\u0003IRUZDUG-\n\nORRNLQJ\u0003VWDWHPHQWV\u0003WR\u0003EH\u0003FRYHUHG\u0003E\\\u0003WKH VDIH\u0003KDUERU\u0003SURYLVLRQV\u0003\u0011\u0003\u0011\u0003\u0011\u0003. \u0e60HVH\u0003VWDWHPHQWV\u0003DUH\u0003\n\nQHLWKHU\u0003SURPLVHV\u0003QRU\u0003JXDUDQWHHV\u000f\u0003EXW\u0003LQYROYH\u0003NQRZQ\u0003DQG\u0003XQNQRZQ\u0003ULVNV\u0003\u0011\u0003\u0011\u0003\u0011\u0003WKDW\u0003PD\\\u0003\n\nFDXVH\u0003RXU\u0003DFWXDO\u0003UHVXOWV\u000f\u0003SHUIRUPDQFH\u0003RU\u0003DFKLHYHPHQWV\u0003WR\u0003EH\u0003PDWHULDOO\\ GL\u0d75HUHQW\u0003. . . .\u00b4 Id.\n\nat 11. \u0e60H\u0003)RUP 20-F DOVR\u0003VWDWHG: \u00b3:H\u0003EHOLHYH\u0003WKDW\u0003RXU\u0003VRXUFHV\u0003RI\u0003OLTXLGLW\\\u0003DQG\u0003FDSLWDO\u0003\n\nZLOO\u0003EH\u0003VX\u0d76FLHQW\u0003WR\u0003PHHW\u0003RXU\u0003EXVLQHVV\u0003QHHGV\u0003IRU\u0003DW\u0003OHDVW\u0003WKH\u0003QH[W\u0003WZHOYH\u0003PRQWKV\u0011 :H\u0003DOVR\u0003\n\nH[SHFW\u0003WKHVH\u0003VRXUFHV\u0003RI\u0003OLTXLGLW\\\u0003ZLOO\u0003EH\u0003VX\u0d76FLHQW\u0003WR\u0003IXQG\u0003RXU\u0003ORQJ-WHUP\u0003FRQWUDFWXDO\u0003\n\nREOLJDWLRQV\u0003DQG\u0003FDSLWDO\u0003QHHGV\u0011\u00b4\u0003\u0003\u0088\u0003\u0014\u0013\u0019\u0011\u0003\u0003\n\n       +RZHYHU\u000f\u0003LQ\u0003$SULO\u0003\u0015\u0013\u0015\u0016\u000f\u00033ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW VHQLRU PDQDJHPHQW\u0003ZDV\u0003FRQFHUQHG\u0003\n\nWKDW\u0003)DUIHWFK\u0003FRXOG\u0003EH\u0003IRUFHG\u0003WR\u0003GHOLVW\u0003IURP\u0003WKH\u00031<6(\u0003RU\u0003HYHQ\u0003FHDVH\u0003WR\u0003H[LVW\u0003E\\\u0003WKH\u0003HQG\u0003RI\u0003\n\nWKH\u0003\\HDU\u0011\u0003\u0003\u0088\u0003\u0014\u00138. $\u0003IRUPHU\u0003HPSOR\\HH\u0003 \u00b3FE5\u00b4 , ZKR\u0003PHW\u0003ZLWK\u0003-RUGDQ LQ\u0003$SULO\u0003\u0015\u0013\u0015\u0016,\n\nUHFDOOHG\u0003WKDW\u0003-RUGDQ\u0003Vtated WKDW\u0003PDMRU\u0003LQYHVWRUV\u0003PD\\ SXOO\u0003WKHLU\u0003IXQGLQJ\u0003EHFDXVH\u0003RI\u0003\n\nORQJVWDQGLQJ\u0003LQWHUQDO\u0003GH\u00bfFLHQFLHV. Id. 2Q\u00030D\\\u0003\u0014\u001b\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003LQ\u0003WKH\u00034\u0014\u0003\u0015\u0013\u0015\u0016\u0003(DUQLQJV\u0003\n\n5HOHDVH\u000f\u0003-RUGDQ\u0003VWDWHG\u0003WKDW\u0003WKH\u0003&RPSDQ\\\u000f\u0003\u00b3GHOLYHUHG\u0003ZKDW\u0003>LW@\u0003VHW\u0003RXW\u0003WR\u0003DFKLHYH\u0003\u0011\u0003\u0011\u0003\u0011\u0003. [It\n\nKDV@\u0003VXFFHVVIXOO\\\u0003QDYLJDWHG\u0003WKURXJK\u0003XQSUHFHGHQWHG\u0003PDFUR\u0003FKDOOHQJHV\u000f\u0003DQG\u0003WKURXJK\u0003\n\nFRQWLQXHG\u0003IRFXVHG\u0003H[HFXWLRQ\u000f\u0003>LW@\u0003UHPDLQ>V@\u0003RQ\u0003WUDFN\u0003WR\u0003GHOLYHU\u0003D\u0003\\HDU\u0003RI\u0003OX[XU\\\u0003PDUNHW-\n\nEHDWLQJ\u0003JURZWK\u000f\u0003D\u0003UHWXUQ\u0003WR\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0011\u00b4\u0003\u0003\u0088\u0003\u0014\u0013\u001a\u0011\u0003\u0003\u0e60LV\u00035HOHDVH\u0003\n\n                                              6\n\f    Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 7 of 39\n\n\n\n\nZDV\u0003DFFRPSDQLHG\u0003E\\\u0003D\u0003ZDUQLQJ\u0003WKDW\u0003LW\u0003\u00b3FRQWDLQV\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003ZLWKLQ\u0003WKH\u0003\n\nPHDQLQJ\u0003RI\u0003WKH\u0003>36/5$@. . . . \u0e60HVH\u0003VWDWHPHQWV\u0003DUH\u0003QHLWKHU\u0003SURPLVHV\u0003QRU\u0003JXDUDQWHHV\u000f\u0003EXW\u0003\n\nLQYROYH\u0003NQRZQ\u0003DQG\u0003XQNQRZQ\u0003ULVNV\u000f\u0003XQFHUWDLQtiHV\u0003DQG\u0003RWKHU\u0003LPSRUWDQW\u0003IDFWRUV\u0003WKDW\u0003PD\\\u0003\n\nFDXVH\u0003DFWXDO\u0003UHVXOWV\u000f\u0003SHUIRUPDQFH\u0003RU\u0003DFKLHYHPHQWV\u0003WR\u0003EH\u0003PDWHULDOO\\\u0003GL\u0d75HUHQW\u0003\u0011\u0003\u0011\u0003\u0011 .\u00b4 Doc.\n\n81-16 at 18. On 6HSWHPEHU\u0003\u0014\u0014\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003)DUIHWFK\u0003US +ROGLQJV\u000f\u0003,QF\u0011\u000f\u0003D\u0003VXEVLGLDU\\\u0003RI\u0003))\u0003\n\n+ROGLQJV\u000f ERUURZHG\u0003DQ\u0003DGGLWLRQDO\u0003\u0007\u0015\u0013\u0013\u0003PLOOLRQ\u0003GROODUV\u0003IURP\u0003-3\u00030RUJDQ\u0003DV\u0003D\u0003WHUP\u0003ORDQ\u0011\u0003\u0003\n\n\u0088 109. 3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003WKH VWDWHPHQWV\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003PDGH\u0003DERXW\u0003WKH\u0003\n\n\u00bfQDQFLDO\u0003ZHOO-EHLQJ\u0003RI\u0003)DUIHWFK\u0003GXULQJ\u0003WKLV\u0003SHULRG\u0003ZHUH\u0003PDWHULDOO\\\u0003IDOVH\u0003DQG\u0003PLVOHDGLQJ\u0003\n\nEHFDXVH\u000f\u0003DV\u0003'HIHQGDQWV\u0003NQHZ\u000f WKH\u0003&RPSDQ\\\u0003ZDV\u0003IDFLQJ\u0003VHYHUH\u0003\u00bfQDQFLDO\u0003KDUGVKLS\u0003DQG\u0003\n\n'HIHQGDQWV\u0003ZHUH\u0003\u00b3DFWLYHO\\\u0003SDUWLFLSDWLQJ\u0003LQ\u0003H\u0d75RUWV\u0003WR\u0003VHFXUH\u0003DOWHUQDWLYH\u0003\u00bfQDQFLQJ\u0003\u0011\u0003\u0011\u0003\u0011\u0003GXH\u0003\n\nWR\u0003LWV\u0003SRRU\u0003\u00bfQDQFLDO\u0003FRQGLWLRQ\u0003DQG\u0003JURZLQJ\u0003OLTXLGLW\\\u0003SUHVVXUHV.\u00b4 \u0088\u0088 154, 165, 168, 174,\n\n178, 181.\n\n       3ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW )DUIHWFK\u00b6V VWRFN\u0003SULFH\u0003\u00b3FDPH\u0003WXPEOLQJ\u0003GRZQ\u00b4\u0003DIWHU\u0003D\u0003VHULHV\u0003\n\nRI\u0003UHYHODWLRQV\u0003LQGLFDWLQJ\u0003WKDW )DUIHWFK ZDV\u0003QRW\u0003H[HFXWLQJ\u0003RQ\u0003LWV\u0003SODQ\u0003WR\u0003DFKLHYH\u0003\n\nSUR\u00bfWDELOLW\\\u0003DQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u000f\u0003WKDW\u0003LWV\u0003SUHYLRXV\u0003JXLGDQFH\u0003DERXW SHUIRUPDQFH\u0003ZDV\u0003\n\nQRW\u0003WR\u0003EH\u0003WUXVWHG\u000f\u0003DQG\u0003XOWLPDWHO\\\u0003WKDW\u0003WKH\u0003EXVLQHVV\u0003KDG\u0003EHHQ\u0003JXWWHG\u0003DQG\u0003VROG\u0003R\u0d75\u0003IRU\u0003LWV\u0003SDUWV\u0003\n\nWR\u0003DYRLG\u0003LQVROYHQF\\\u0011 \u0088\u0003\u001a\u0011\u0003 $IWHU\u0003WKH\u0003UHOHDVH\u0003RI\u0003SRRU\u00034\u0015\u0003\u0015\u0013\u0015\u0016\u0003UHVXOWV\u0003DQG\u0003VLJQL\u00bfFDQWO\\\u0003\n\nUHGXFHG\u0003FY \u0015\u0013\u0015\u0016\u0003JXLGDQFH\u000f\u0003WKH\u0003VWRFN\u0003SULFH\u0003IHOO\u0003\u0017\u0018.17\b\u0003WR\u0003\u0007\u0015\u0011\u0019\u0014\u0003RQ\u0003$XJXVW\u0003\u0014\u001b, \u0015\u0013\u0015\u0016\u0011\u0003\u0003\u0088\u0088\n\n111, 114. 2Q\u00031RYHPEHU\u0003\u0015\u001b\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003)DUIHWFK\u0003DQQRXQFHG\u0003WKDW\u0003LW\u0003ZRXOG\u0003QRW\u0003GLVFORVH\u00034\u0016\u0003\n\n\u0015\u0013\u0015\u0016\u0003UHVXOWV\u0003DQG\u0003WKDW\u0003LWV\u0003SUHYLRXV\u0003JXLGDQFH\u0003DQG\u0003IRUHFDVWV\u0003FRXOG\u0003QRW\u0003EH\u0003UHOLHG\u0003XSRQ\u0011\u0003\u0003\u0088\u0003\u0014\u0014\u0018\u0011\u0003\n\n\u0e60H\u0003IROORZLQJ\u0003GD\\\u000f\u0003WKH\u0003VWRFN\u0003SULFH\u0003GURSSHG\u0003\u0018\u0016\u0011\u001b\b\u0003WR\u0003\u0007\u0013\u0011\u001c\u001a\u0011\u0003\u0003\u0088\u0003\u0014\u0014\u0019\u0011\u0003\u00032Q\u0003'HFHPEHU\u0003\u0014\u001b\u000f\u0003\n\n\u0015\u0013\u0015\u0016\u000f\u0003)DUIHWFK\u0003R\u0d76FLDOO\\\u0003DJUHHG\u0003WR\u0003WUDQVIHU\u0003DOO\u0003RI\u0003WKH\u0003EXVLQHVV\u0003DQG\u0003DVVHWV\u0003RI\u0003))\u0003+ROGLQJV\u000f\u0003\n\nWKH\u0003SULPDU\\\u0003VXEVLGLDU\\\u0003RI\u0003)DUIHWFK\u000f\u0003WR\u0003&RXSDQJ\u000f\u0003,QF\u0011\u0003IRU\u0003D\u0003\u0007\u0018\u0013\u0013\u0003PLOOLRQ\u0003EULGJH\u0003ORDQ.\n\n\u0088 \u0014\u0014\u001a\u0011\u0003\u0003$FFRUGLQJ\u0003WR\u00033ODLQWL\u0d75V\u000f\u0003WKLV\u0003H\u0d75HFWLYHO\\\u0003JXWWHG\u0003WKH\u0003SXEOLFO\\\u0003WUDGHG\u0003FRPSDQ\\\u0003RI\u0003LWV\u0003\n\nDVVHWV\u000f\u0003OHDYLQJ\u0003LW\u0003XQDEOH\u0003WR\u0003PHHW\u0003LWV\u0003GHEW\u0003REOLJDWLRQV\u0003DQG\u0003VWULSSLQJ\u0003LQYHVWRUV\u0003RI\u0003DQ\\\u0003YDOXH\u0003\n\nWKH\u0003VKDUHV\u0003KHOG\u0011\u0003\u0003Id. \u0e60LV\u0003FXOPLQDWHG\u0003LQ\u0003WKH\u0003VWRFN\u0003SULFH\u0003IDOOLQJ\u0003\u001c\u0016\u0011\u001a\u0018\b\u0003WR\u0003\u0007\u0013\u0011\u0013\u0017\u0003D\u0003VKDUH.\n\n\u0088 122. \u0e60e NYSE commenced GHOLVWLQJ SURFHHGLQJV\u0003RQ\u0003'HFHPEHU\u0003\u0015\u0013\u000f\u0003\u0015\u0013\u0015\u0016\u0011\u0003\u0003Id. On\n\n                                              7\n\f    Case 1:23-cv-10982-ER               Document 86           Filed 09/29/26         Page 8 of 39\n\n\n\n\n-DQXDU\\\u0003\u0016\u0013\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u00036XUSLTXH\u0003$FTXLVLWLRQ\u0003/LPLWHG\u0003 \u00b36XUSLTXH\u00b4 \u0003SXUFKDVHG\u0003WKH\u0003)DUIHWFK\u0003\n\nbXVLQHVV. \u0088 127. 3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003WKLV\u0003H\u0d75HFWLYHO\\\u0003DOORZHG\u0003)DUIHWFK\u0003WR\u0003ZULWH\u0003R\u0d75\u0003RYHU\u0003\n\n\u0007\u0014\u0003ELOOLRQ\u0003RI\u0003GHEW\u0003REOLJDWLRQV\u0011\u0003\u0003\u0088\u0003\u0014\u0016\u0014\u0011 6KRUWO\\\u0003DIWHU\u000f\u0003RQ\u0003)HEUXDU\\\u0003\u0015\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u0003:LOPLQJWRQ\u0003\n\n7UXVW\u000f\u0003D\u0003FUHGLWRU\u0003RI )DUIHWFK /LPLWHG\u000f\u0003\u00bfOHG\u0003D\u0003SHWLWLRQ\u0003IRU\u0003WKH\u0003ZLQGLQJ-XS\u0003RI\u0003WKH\u0003FRPSDQ\\\u0003in\n\nWKH\u0003*UDQG\u0003&RXUW\u0003RI\u0003WKH\u0003&D\\PDQ\u0003,VODQGV\u0011 See Doc. 61-1.\n\n        \u0e60URXJKRXW\u0003WKLV\u0003SHULRG\u000f\u0003HDFK\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003KHOG\u0003D\u0003VLJQL\u00bfFDQW\u0003\n\nDPRXQW\u0003RI\u0003VWRFN\u0003LQ\u0003)DUIHWFK\u0011 2Q\u00030DUFK\u0003\u0017\u000f\u0003\u0015\u0013\u0015\u0015\u000f\u00031HYHV\u0003RZQHG\u0003\u0017\u001a\u000f\u0017\u001c\u0019\u000f\u001c\u0016\u001a\u0003VKDUHV\u000f\u0003-RUGDQ\u0003\n\nRZQHG\u0003\u001c\u0016\u0013\u000f\u0014\u001b\u0016\u0003VKDUHV\u000f\u0003DQG\u00033KDLU\u0003RZQHG\u0003\u001a\u0019\u001a\u000f\u0016\u0013\u0014\u0003VKDUHV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0014-3 at 117. On\n\n'HFHPEHU\u0003\u0016\u0014\u000f\u0003\u0015\u0013\u0015\u0016\u000f 1HYHV\u0003RZQHG\u0003\u0017\u001c\u000f\u001b\u001a\u0019\u000f\u0015\u0015\u0016\u0003VKDUHV. Doc. 81-22 at 6. 2Q\u0003$XJXVW\u0003\u0016\u0013\u000f\u0003\n\n\u0015\u0013\u0015\u0016\u000f\u0003-RUGDQ\u0003RZQHG\u0003\u0014\u000f\u0019\u0013\u0017\u000f\u0014\u001b\u0018\u0003VKDUHV\u0011 'RFV\u0011\u0003\u001b\u0014-12 at 121, 81-20 at 3. 2Q\u0003$XJXVW\u0003\u0017\u000f\u0003\n\n\u0015\u0013\u0015\u0016\u000f\u00033KDLU\u0003RZQHG\u0003\u0014\u000f\u0015\u0014\u001a\u000f\u0015\u001b\u0016\u0003VKDUHV\u0011\u0003\u0003DocV. 81-12 at 121, 81-19 at 3. +RZHYHU\u000f\u0003-RUGDQ\u0003\n\nDQG\u00033KDLU\u0003VROG\u0003VKDUHV\u0003LQ\u0003$XJXVW\u0003\u0015\u0013\u0015\u0016\u000f\u0003VHOOLQJ DSSUR[LPDWHO\\\u0003\u0007\u001700,000 DQG\u0003\u0007\u0016\u0018\u000f\u0013\u0013\u0013 ZRUWK\u0003\n\nRI\u0003VWRFN\u000f\u0003UHVSHFWLYHO\\, 'RFV\u0011\u0003\u001b\u0014-20 at 3, 81-19 at 3, DQG\u00031HYHV\u0003moved VRPH\u0003RI\u0003KLV\u0003VKDUHV\u0003\n\nWR\u0003D\u0003KROGLQJ\u0003FRPSDQ\\ EHWZHHQ\u0003WKH\u0003EHJLQQLQJ\u0003RI\u0003\u0015\u0013\u0015\u0015\u0003DQG\u0003HQG\u0003RI\u0003\u0015\u0013\u0015\u0016, DocV. 81-3 at 117,\n\n81-12 at 121, 81-22 at 6.\n            B. Procedural Background\n        -DVPLQH\u0003:X\u000f\u0003LQGLYLGXDOO\\\u0003DQG\u0003RQ\u0003EHKDOI\u0003RI\u0003DOO\u0003RWKHUV\u0003VLPLODUO\\\u0003VLWXDWHG\u000f\u0003\u00bfOHG\u0003WKH\u0003\n\n\u00bfUVW\u0003FRPSODLQW\u0003LQ\u0003WKLV\u0003FRQVROLGDWHG\u0003FODVV\u0003DFWLRQ\u0003RQ\u0003'HFHPEHU\u0003\u0014\u001c\u000f\u0003\u0015\u0013\u0015\u0016\u0003 WKH\u0003\u00b3:X\u00036'1<\u0003\n$FWLRQ\u00b4 \u0011\u0003 Doc. 1. \u0e60UHH\u0003PHPEHUV\u0003RI\u0003WKH\u0003SXWDWLYH\u0003FODVV\u0003\u00bfOHG\u0003PRWLRQV\u0003VHHNLQJ\u0003\n\nDSSRLQWPHQW\u0003DV\u0003OHDG\u0003SODLQWL\u0d75\u0011 3 2Q\u00032FWREHU\u0003\u0015\u0013\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003WZR\u0003PRQWKV\u0003SULRU\u0003WR\u0003WKH\u0003\u00bfOLQJ\u0003RI\u0003WKH\u0003\n                                  2F\n\n\n\n\nabove-FDSWLRQHG\u0003DFWLRQ\u000f\u0003D\u0003UHODWHG\u0003VHFXULWLHV\u0003FODVV\u0003DFWLRQ\u0003DVVHUWLQJ\u0003VXEVWDQWLDOO\\\u0003WKH\u0003VDPH\u0003\n\n\n3\n  \u0e60H\u0003IROORZLQJ\u0003LQGLYLGXDOV\u0003PRYHG\u0003WR\u0003EH\u0003DSSRLQWHG\u0003DV\u0003OHDG\u0003SODLQWL\u0d75\u0003LQ\u0003WKLV\u0003DFWLRQ. 2Q\u0003'HFHPEHU\u0003\u0014\u001c\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003\nPRYDQW\u00030LFKDHO\u0003%LHYHWVNL\u0003PRYHG\u0003WR\u0003EH\u0003DSSRLQWHG\u0003DV\u0003OHDG\u0003SODLQWL\u0d75\u0003DQG\u0003\u0e60H\u00035RVHQ\u0003/DZ\u0003)LUP\u000f\u00033\u0011$\u0011\u0003DV\u0003OHDG\u0003\nFRXQVHO\u0011\u0003 Doc. 5. $OVR\u0003RQ\u0003'HFHPEHU\u0003\u0014\u001c\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003PRYDQW\u0003(GXDUGR\u0003$UFKHU\u00039HORVR\u00030DUWLQV\u0003DQG\u00035HQRSRUWR\n,QYHVWLPHQWRV\u0003,PRELOLiULRV\u000f\u0003/'$\u0003 \u00b30DUWLQV\u00b4 \u0003PRYHG\u0003WR\u0003EH\u0003DSSRLQWHG\u0003DV\u0003OHDG\u0003SODLQWL\u0d75\u0003DQG\u00033RPHUDQW]\u0003//3\u0003\nDV\u0003OHDG\u0003FRXQVHO\u0003IRU\u0003WKH\u0003&ODVV\u0011 Doc. 8. /DVWO\\\u000f\u0003RQ\u0003-DQXDU\\\u0003\u0015\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u0003)HUQDQGR\u00036XOLFKLQ\u000f\u0003LQGLYLGXDOO\\\u0003DQG\u0003RQ\u0003\nEHKDOI\u0003RI\u0003/\\[RU\u00032YHUVHDV\u0003+ROGLQJV Limited DQG\u0003&LQHUJ\\\u0003$GYLVRUV Limited \u00b36XOLFKLQ\u00b4 \u000f\u0003moved to be\nDSSRLQWHG\u0003DV\u0003OHDG\u0003SODLQWL\u0d75\u0003DQG\u0003/HYL\u0003 \u0003.RUVLQVN\\\u000f\u0003//3\u0003DV\u0003OHDG\u0003FRXQVHO\u0011\u0003 Doc. 17. 0DUWLQV\u0003DQG\u00036XOLFKLQ\u000f\u0003\nDORQJ\u0003ZLWK\u0003WKUHH\u0003RWKHU\u0003LQGLYLGXDOV\u2014<XDQ]KH\u0003)X\u000f\u00037DPLP\u0003$OWDPLPL\u000f\u0003DQG\u0003.DXQGULD\u0003:HVW\u2014PRYHG\u0003VHSDUDWHO\\\u0003\nWR\u0003EH\u0003DSSRLQWHG\u0003DV\u0003OHDG\u0003SODLQWL\u0d75\u0003LQ Ragan v. Farfetch Limited et al., No. 8:23-cv-02857 (D. Md.). Doc. 23\nat 2.\n\n                                                    8\n\f       Case 1:23-cv-10982-ER             Document 86         Filed 09/29/26        Page 9 of 39\n\n\n\n\nFODLPV\u0003ZDV\u0003\u00bfOHG\u0003LQ\u0003WKH\u00038QLWHG\u00036WDWHV\u0003'LVWULFW\u0003&RXUW\u0003IRU\u0003WKH\u0003'LVWULFW\u0003RI\u00030DU\\ODQG\u000f\u0003Ragan v.\n\nFarfetch Limited et al., No. 8:23-cv-02857 (D. Md.). Doc. 23 at 2. 2Q\u0003-DQXDU\\\u0003\u0015\u0015\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u0003\n\nWKH\u0003cRXUW\u0003LQ\u0003Ragan HQWHUHG\u0003D\u0003VWLSXODWLRQ\u0003DQG\u0003RUGHU\u0003WUDQVIHUULQJ\u0003WKH\u0003FDVH\u0003WR\u0003WKH\u00036RXWKHUQ\u0003\n\n'LVWULFW\u0003RI\u00031HZ\u0003<RUN\u000f\u0003ZKLFK\u0003ZDV\u0003DVVLJQHG\u0003WKH\u0003FDVH\u0003QXPEHU 24-cv-\u0013\u0013\u0018\u0016\u0015\u0003 WKH\u0003\u00b35DJDQ\u0003\n\n6'1<\u0003$FWLRQ\u000f\u00b4\u0003DQG\u0003WRJHWKHU\u0003ZLWK\u0003WKH\u0003:X\u00036'1<\u0003$FWLRQ\u000f\u0003WKH\u0003\u00b35HODWHG\u0003$FWLRQV\u00b4 \u0011 Id. at 3.\n\n2Q\u0003)HEUXDU\\\u0003\u0019\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u0003WKH\u00035DJDQ\u00036'1<\u0003$FWLRQ\u0003ZDV\u0003WUDQVIHUUHG\u0003IURP\u0003-XGJH\u00033DXO\u0003\n\n(QJHOPD\\HU\u0003WR\u0003WKH\u0003XQGHUVLJQHG\u0011\u0003 \u0e60H\u0003VDPH\u0003GD\\\u000f\u0003XSRQ\u0003VWLSXODWLRQ\u0003DQG\u0003DJUHHPHQW\u0003E\\\u0003WKH\u0003\n\nSDUWLHV\u0003KHUHWR\u000f\u0003WKH\u0003&RXUW\u0003FRQVROLGDWHG\u0003WKH\u00035HODWHG\u0003$FWLRQV\u0003XQGHU\u0003cDVH\u0003QXPEHU 23-cv-\n\n\u0014\u0013\u001c\u001b\u0015\u000f\u0003)HUQDQGR\u00036XOLFKLQ\u0003DQG\u0003<XDQ]KH\u0003)X\u0003ZHUH\u0003DSSRLQWHG\u0003OHDG\u0003SODLQWL\u0d75V\u000f\u0003DQG\u0003/HYL\u0003 \u0003\n\n.RUVLQVN\\\u000f\u0003//3\u0003DQG\u0003+DJHQV\u0003%HUPDQ\u00036RERO\u00036KDSLUR\u0003//3\u0003ZHUH\u0003DSSRLQWHG\u0003FR-OHDG\u0003FRXQVHO\u0011\u0003\n\nId. at 4\u20135. ,Q\u0003WKDW\u00032UGHU\u000f\u0003WKH\u0003&RXUW\u0003GLUHFWHG\u00033ODLQWL\u0d75V\u0003WR\u0003\u00bfOH\u0003DQ\u0003DPHQGHG\u0003FRPSODLQW\u0003LQ\u0003WKH\u0003\n\nFRQVROLGDWHG\u0003FDVH\u0003RU\u0003GHVLJQDWH\u0003WKH\u0003H[LVWLQJ\u0003FRPSODLQW\u0003DV\u0003WKH\u0003RSHUDWLYH\u0003FRPSODLQW\u0011\u0003 Id. at 5.\n\n\u0e60H\u0003&RXUW\u0003DOVR\u0003GLUHFWHG\u0003'HIHQGDQWV\u0003DQG\u0003OHDG\u0003SODLQWL\u0d75V\u0003WR\u0003PHHW\u0003DQG\u0003FRQIHU\u0003UHJDUGLQJ\u0003\n\nVFKHGXOLQJ\u0011\u0003 Id.\n\n           2Q\u0003-XQH\u0003\u0015\u0014\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u0003OHDG\u0003SODLQWL\u0d75V\u0003\u00bfOHG\u0003WKH\u0003&RQVROLGDWHG\u0003$PHQGHG\u0003&RPSODLQW\u0003\n\n    \u00b3&$&\u00b4 \u000f\u0003DOOHJLQJ\u0003WZR\u0003FRXQWV\u001d\u0003 (1) YLRODWLRQ\u0003RI\u0003Section \u0014\u0013 E \u0003RI\u0003WKH\u0003([FKDQJH\u0003$FW\u0003 \u0014\u0018\u0003\n\n8\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bM E \u0003DQG\u00035XOH\u0003\u0014\u0013E-5 (17 C.F.R \u00a7 240.10b-5); and (2) D\u0003YLRODWLRQ\u0003RI\u0003Section\n\n\u0015\u0013 D \u0003RI\u0003WKH\u00036HFXULWLHV\u0003([FKDQJH\u0003$FW\u0003E\\\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0011\u0003 Doc. 34. \u0e60H\u0003&$&\u0003\n\nDOOHJHG\u0003D\u0003cODVV\u0003SHULRG\u0003EHWZHHQ\u0003)HEUXDU\\\u0003\u0015\u0017\u000f\u0003\u0015\u0013\u0015\u0015\u0003WKURXJK\u0003'HFHPEHU\u0003\u0014\u001a\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003\n\nLQFOXVLYH\u0011 4 Id. \u0088\u0003\u0014\u0011\n             3F\n\n\n\n\n           2Q\u00036HSWHPEHU\u0003\u0014\u0014\u000f\u0003\u0015\u0013\u0015\u0017\u000f\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003\u00bfOHG\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003WKH\u0003\n\n&$&\u0003LQ\u0003LWV\u0003HQWLUHW\\\u000f\u0003ZLWK\u0003SUHMXGLFH\u0011 'RFV\u0011\u0003\u0017\u0016\u000f\u0003\u0017\u0019\u0011\u0003 \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXHG\u0003WKDW\u0003\n\nWKH\u0003&$&\u0003SOHDGHG\u0003QR\u0003YLDEOH\u0003WKHRU\\\u0003RI\u0003VHFXULWLHV\u0003IUDXG\u0003DQG\u0003VKRXOG\u0003WKHUHIRUH\u0003EH\u0003GLVPLVVHG\u0011\n\nDoc. 44 at 10. 6SHFL\u00bfFDOO\\\u000f\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXHG\u0003WKDW\u00033ODLQWL\u0d75V\u0003GLG\u0003QRW\u0003SOHDG\u0003\n\nDQ\\\u0003DFWLRQDEOH\u0003PLVVWDWHPHQW\u0003RU\u0003RPLVVLRQ\u0003DQG\u000f\u0003LQVWHDG\u000f\u0003WKH\u0003&$&\u0003\u00b3VHQ>W@\u0003UHDGHUV\u0003RQ\u0003D\u0003\n\n\n4\n    \u0e60H\u00036$&\u0003DPHQGHG\u0003WKH\u0003&ODVV\u00033HULRG\u0003WR\u0003EH\u0003'HFHPEHU\u0003\u0014\u000f\u0003\u0015\u0013\u0015\u0015\u0003WKURXJK\u0003'HFHPEHU\u0003\u0014\u001a\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003LQFOXVLYH\u0011\u0003 \u0088\u0003\u0014\u0011\n\n                                                    9\n\f   Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26       Page 10 of 39\n\n\n\n\nVFDYHQJHU\u0003KXQW\u0003WKURXJK\u0003ODUJH\u0003EORFN\u0003TXRWDWLRQV\u0003H[FHUSWHG\u0003IURP\u0003PRUH\u0003WKDQ\u0003\u001b\u0013\u0003GL\u0d75HUHQW\u0003\n\nGLVFORVXUHV\u0003RYHU\u0003D\u0003QHDUO\\\u0003WZR-\\HDU\u0003SHULRG\u000f\u00b4\u0003LQ\u0003ZKDW\u0003FRQVWLWXWHG\u0003SX]]OH-SOHDGLQJ\u0011 Id. at 11.\n\n\u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DGGHG\u0003WKDW\u0003QHDUO\\\u0003DOO\u0003WKH\u0003FKDOOHQJHG\u0003VWDWHPHQWV\u0003DUH\u0003 1) non-\n\nDFWLRQDEOH\u0003H[SUHVVLRQV\u0003RI\u0003FRUSRUDWH\u0003RSWLPLVP\u000f\u0003 2) IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003SURWHFWHG\u0003\n\nE\\\u0003WKH\u000336/5$\u0003VDIH\u0003KDUERU\u000f\u0003DQG\u0012RU\u0003 3) RSLQLRQ\u0003VWDWHPHQWV\u0011\u0003 Id. /DVWO\\\u000f\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u0003DUJXHG\u0003WKDW\u0003WKH\u00033ODLQWL\u0d75V\u0003GLG\u0003QRW\u2014DQG\u0003FRXOG\u0003QRW\u2014SOHDG\u0003IDFWV\u0003WR\u0003PHHW\u0003WKH\u0003\n\nUHTXLVLWH\u0003\u00b3VWURQJ\u00b4\u0003LQIHUHQFH\u0003WKDW\u0003'HIHQGDQWV\u0003DFWHG\u0003ZLWK\u0003VFLHQWHU\u0011\u0003 Id. at 12.\n\n        :KLOH\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003\u00bfUVW\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003UHPDLQHG\u0003SHQGLQJ\u000f\u0003RQ\u0003\n\n0D\\\u0003\u0014\u000f\u0003\u0015\u0013\u0015\u0018\u000f\u00033ODLQWL\u0d75V\u0003\u00bfOHG\u0003D\u0003PRWLRQ\u0003VHHNLQJ\u0003WR\u0003PRGLI\\\u0003WKH\u0003DXWRPDWLF\u0003GLVFRYHU\\\u0003VWD\\\n\nLPSRVHG\u0003E\\ WKH\u000336/5$\u0011\u0003\u0003'RF\u0011\u0003\u0018\u001c\u0011\u0003\u00033ODLQWL\u0d75V\u0003UHTXHVWHG\u0003SURGXFWLRQ\u0003RI\u0003DOO\u0003\u00b3QRQ-SULYLOHJHG\u0003\n\nGRFXPHQWV\u0003DOUHDG\\\u0003SURGXFHG\u0003 RU\u0003EHLQJ\u0003SURGXFHG\u0003E\\ \u00036XUSLTXH\u0003L.P. WR\u0003)DUIHWFK\u00b6V\u0003\n\nOLTXLGDWRU\u00b4\u0003LQ\u0003UHVSRQVH\u0003WR\u0003D\u0003%DQNUXSWF\\\u00035XOH\u0003\u0015\u0013\u0013\u0017\u0003VXESRHQD\u0003LQ\u0003WKH\u0003&D\\PDQ\u0003SURFHHGLQJ\u0011\u0003\u0003\n\n'RF\u0011\u0003\u0019\u0013\u0003DW\u0003\u0018\u0011\u0003\u00033ODLQWL\u0d75V\u0003FRQWHQGHG\u0003WKDW\u0003OLIWLQJ\u0003WKH\u0003VWD\\\u0003\u00b3LPSRVH>G@\u0003QR\u0003XQGXH\u0003EXUGHQ\u00b4\u0003RQ\u0003\n\n6XUSLTXH\u0003DQG\u0003ZDV\u0003\u00b3QHFHVVDU\\\u0003WR\u0003SUHYHQW\u0003UHDO\u0003DQG\u0003LUUHSDUDEOH\u0003KDUP\u0011\u00b4 Id. at 7.\n\n        2Q\u00030D\\\u0003\u0015\u0015\u000f\u0003\u0015\u0013\u0015\u0018\u000f\u0003QRQ-SDUW\\\u00036XUSLTXH\u0003\u00bfOHG\u0003D\u0003EULHI\u0003LQ\u0003RSSRVLWLRQ\u0003WR\u00033ODLQWL\u0d75V\u00b6\u0003\n\nPRWLRQ\u0003WR\u0003OLIW\u0003WKH\u0003DXWRPDWLF\u0003GLVFRYHU\\\u0003VWD\\\u0011\u0003\u0003'RF\u0011\u0003\u0019\u001a\u0011\u0003\u00036XUSLTXH\u0003DUJXHG\u0003WKDW\u00033ODLQWL\u0d75V\u0003KDYH\u0003\n\nQRW\u0003VDWLV\u00bfHG\u0003WKHLU\u0003KHDY\\\u0003EXUGHQ\u0003WR\u0003MXVWLI\\\u0003OLIWLQJ\u0003WKH\u0003VWD\\\u000f\u0003ZKLFK\u0003&RQJUHVV\u0003KDV\u0003PDQGDWHG\u0003\n\nWKURXJK\u0003WKH\u000336/5$. Id. at 5. 6SHFL\u00bfFDOO\\\u000f\u00036XUSLTXH\u0003DUJXHG\u0003WKDW\u00033ODLQWL\u0d75V\u0003ZHUH\u0003ZURQJ\u0003RQ\u0003\n\nWKH\u0003IDFWV\u000f\u0003IDLOHG\u0003WR\u0003H[SODLQ\u0003ZK\\\u0003OLIWLQJ\u0003WKH\u0003VWD\\\u0003ZDV\u0003QHFHVVDU\\\u0003WR\u0003DYRLG\u0003FDXVLQJ\u0003WKHP\u0003\n\nXQGXH\u0003SUHMXGLFH\u000f\u0003DQG IDLOHG\u0003WR\u0003PHHW\u0003WKH\u000336/5$\u00b6V\u0003SDUWLFXODULW\\\u0003UHTXLUHPHQWV\u0011\u0003\u0003Id. \u0e60H\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003DOVR\u0003\u00bfOHG\u0003D\u0003EULHI\u0003LQ\u0003RSSRVLWLRQ\u0003WR\u00033ODLQWL\u0d75V\u00b6\u0003PRWLRQ\u0003WR\u0003OLIW\u0003WKH\u0003\n\nDXWRPDWLF\u0003GLVFRYHU\\\u0003VWD\\\u0003RQ\u00030D\\\u0003\u0015\u0015\u000f\u0003\u0015\u0013\u0015\u0018\u000f\u0003RQ\u0003WKH\u0003VDPH\u0003JURXQGV\u0003DV\u00036XUSLTXH\u0011\u0003\u0003'RF\u0011\u0003\u0019\u001b\u0011\u0003\u0003\n\n2Q\u0003)HEUXDU\\\u0003\u0015\u0019\u000f\u0003\u0015\u0013\u0015\u0019\u000f\u0003WKH\u0003&RXUW\u0003GHQLHG\u00033ODLQWL\u0d75V\u00b6\u0003PRWLRQ\u0003WR\u0003OLIW\u0003WKH\u0003DXWRPDWLF\u0003GLVFRYHU\\\u0003\n\nVWD\\\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0018\u0011\u0003\u0003\n\n        2Q\u00036HSWHPEHU\u000330\u000f\u0003\u0015\u0013\u0015\u0018\u000f\u0003WKH\u0003&RXUW\u0003JUDQWHG\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003PRWLRQ\u0003WR\u0003\n\nGLVPLVV\u0003WKH\u0003&$&\u0011\u0003 Doc. 73. \u0e60H\u0003&RXUW\u0003KHOG\u0003WKDW\u0003WKH\u0003&$&\u0003\u00b3IDLO>HG@\u0003WR\u0003PHHW\u0003WKH\u0003SOHDGLQJ\u0003\n\nVWDQGDUGV\u0003RI\u00035XOH\u0003\u001c E \u0003DQG\u0003WKH\u000336/5$\u0011\u00b4 Id. at 27. 6SHFL\u00bfFDOO\\\u000f\u0003WKH\u0003&RXUW\u0003FRQFOXGHG\u0003WKDW\u0003\n\n                                             10\n\f      Case 1:23-cv-10982-ER        Document 86        Filed 09/29/26       Page 11 of 39\n\n\n\n\n3ODLQWL\u0d75V\u0003KDG\u0003\u00b3IDLOHG\u0003WR\u0003DOOHJH\u0003D\u0003PDWHULDO\u0003PLVUHSUHVHQWDWLRQ\u0003RU\u0003RPLVVLRQ\u0003WR\u0003VXSSRUW\u0003D\u0003FODLP\u0003\n\nXQGHU\u0003Section \u0014\u0013 E \u0011\u00b4\u0003 Id. at 32. \u0e60H\u0003&RXUW\u0003IXUWKHU\u0003IRXQG\u0003WKDW\u00033ODLQWL\u0d75V\u0003\u00b3KDYH\u0003QRW\u0003\n\nVX\u0d76FLHQWO\\\u0003DOOHJHG\u0003DQ\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0003\u00b5DW\u0003OHDVW\u0003DV\u0003VWURQJ\u0003DV\u0003WKH\u0003RSSRVLQJ\u0003LQIHUHQFH\u000f\u00b6\u00b4\u0003\n\nDQG\u0003WKHUHIRUH\u0003GLVPLVVHG\u00033ODLQWL\u0d75V\u00b6\u0003Section \u0014\u0013 E \u0003DQG\u00035XOH\u0003\u0014\u0013E-\u0018\u0003FODLPV\u0003DJDLQVW\u0003WKH\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0011\u0003 Id. at 42\u201343. %HFDXVH\u00033ODLQWL\u0d75V\u0003IDLOHG\u0003WR\u0003SOHDG\u0003D\u0003SULPDU\\\u0003\n\nYLRODWLRQ\u0003RI\u0003WKH\u00036HFXULWLHV\u0003([FKDQJH\u0003$FW\u000f\u0003WKH\u0003&RXUW\u0003DOVR\u0003GLVPLVVHG\u00033ODLQWL\u0d75V\u00b6\u0003FODLPV\u0003\n\nSXUVXDQW\u0003WR\u0003Section 20(a). Id. at 45. \u0e60H\u0003&RXUW\u0003JUDQWHG\u00033ODLQWL\u0d75V\u0003OHDYH\u0003WR\u0003\u00bfOH\u0003D\u0003Vecond\n\namended cRPSODLQW\u0011 Id. at 46.\n\n         2Q\u00031RYHPEHU\u0003\u0016\u000f\u0003\u0015\u0013\u0015\u0018\u000f\u00033ODLQWL\u0d75V\u0003\u00bfOHG\u0003WKH SAC, DOOHJLQJ\u0003WZR\u0003FRXQWV\u001d\u0003\u0003 \u0014 \u0003\n\nYLRODWLRQ\u0003RI\u0003Section \u0014\u0013 E \u0003RI\u0003WKH\u00036HFXULWLHV\u0003([FKDQJH\u0003$FW\u0003 \u0014\u0018\u00038\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bM E \u0003DQG\u00035XOH\u0003\n\n10b-5 (17 C.F.R. \u00a7 240.10b-5); and (2) YLRODWLRQ\u0003RI\u0003Section \u0015\u0013 D \u0003RI\u0003WKH\u00036HFXULWLHV\u0003\n\n([FKDQJH\u0003$FW\u0003E\\\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0011\u0003\u0003'RF\u0011\u0003\u001a\u001b\u0011\u0003\u0003\u0e60H\u00036$&\u0003DOOHJHV\u0003D\u0003&ODVV\u00033HULRG\u0003\n\nEHWZHHQ\u0003'HFHPEHU\u0003\u0014\u000f\u0003\u0015\u0013\u0015\u0015\u0003WKURXJK\u0003'HFHPEHU\u0003\u0014\u001a\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003LQFOXVLYH\u0011\u0003\u0003\u0088\u0003\u0014\u0011\n\n         2Q\u0003'HFHPEHU\u0003\u0014\u001b\u000f\u0003\u0015\u0013\u0015\u0018\u000f\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003\u00bfOHG\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003WKH\u0003\n\n6$&\u0003LQ\u0003LWV\u0003HQWLUHW\\\u0011\u0003\u0003'RF\u0011\u0003\u001a\u001c\u0011\u0003\u0003\u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003FRQWHQG\u0003WKDW\u0003WKH\u00036$&\u0003VKRXOG\u0003EH\u0003\n\nGLVPLVVHG\u0003\u00b3IRU\u0003WKH\u0003VDPH\u0003UHDVRQV\u0003WKLV\u0003&RXUW\u0003GLVPLVVHG\u0003WKH\u0003SULRU\u0003FRPSODLQW\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u001c\u0011\nII.      LEGAL STANDARDS\n           A. Rule 12(b)(6)\n         :KHQ\u0003UXOLQJ\u0003RQ\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003SXUVXDQW\u0003WR\u00035XOH\u0003\u0014\u0015 E \u0019 \u000f\u0003WKH\u0003&RXUW\u0003PXVW\u0003\n\nDFFHSW\u0003DOO\u0003IDFWXDO\u0003DOOHJDWLRQV\u0003LQ\u0003WKH\u0003FRPSODLQW\u0003DV\u0003WUXH\u0003DQG\u0003GUDZ\u0003DOO\u0003UHDVRQDEOH\u0003LQIHUHQFHV\u0003\n\nLQ\u0003WKH\u0003SODLQWL\u0d75\u00b6V\u0003IDYRU\u0011\u0003 See Koch v. Christie\u2019s International PLC, 699 F.3d 141, 145 (2d\n\n&LU\u0011\u0003\u0015\u0013\u0014\u0015 . +RZHYHU\u000f\u0003WKH\u0003&RXUW\u0003LV\u0003QRW\u0003UHTXLUHG\u0003WR\u0003FUHGLW\u0003\u00b3PHUH\u0003FRQFOXVRU\\\u0003VWDWHPHQWV\u00b4\u0003RU\u0003\n\n\u00b3>W@KUHDGEDUH\u0003UHFLWDOV\u0003RI\u0003WKH\u0003HOHPHQWV\u0003RI\u0003D\u0003FDXVH\u0003RI\u0003DFWLRQ\u0011\u00b4\u0003 Ashcroft v. Iqbal, 556 U.S.\n\n662\u000f\u0003\u0019\u001a\u001b\u0003 \u0015\u0013\u0013\u001c \u0003 FLWLQJ\u0003Bell Atlantic Corporation v. Twombly, 550 U.S. 544, 555 (2007)).\n\n\u00b37R\u0003VXUYLYH\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u000f\u0003D\u0003FRPSODLQW\u0003PXVW\u0003FRQWDLQ\u0003VX\u0d76FLHQW\u0003IDFWXDO\u0003PDWWHU\u0003\u0011 . . to\n\n\u00b5VWDWH\u0003D\u0003FODLP\u0003WR\u0003UHOLHI\u0003WKDW\u0003LV\u0003SODXVLEOH\u0003RQ\u0003LWV\u0003IDFH\u0011\u00b6\u00b4\u0003 Id. DW\u0003\u0019\u001a\u001b\u0003 TXRWLQJ\u0003Twombly, 550\n\nU.S. at 570). $\u0003FODLP\u0003LV\u0003IDFLDOO\\\u0003SODXVLEOH\u0003\u00b3ZKHQ\u0003WKH\u0003SODLQWL\u0d75\u0003SOHDGV\u0003IDFWXDO\u0003FRQWHQW\u0003WKDW\u0003\n\n                                              11\n\f   Case 1:23-cv-10982-ER           Document 86         Filed 09/29/26       Page 12 of 39\n\n\n\n\nDOORZV\u0003WKH\u0003FRXUW\u0003WR\u0003GUDZ\u0003WKH\u0003UHDVRQDEOH\u0003LQIHUHQFH\u0003WKDW\u0003WKH\u0003GHIHQGDQW\u0003LV\u0003OLDEOH\u0003IRU\u0003WKH\u0003\n\nPLVFRQGXFW\u0003DOOHJHG\u0011\u00b4 Id. FLWLQJ\u0003Twombly, 550 U.S. at 556). 0RUH\u0003VSHFL\u00bfFDOO\\\u000f\u0003WKH\u0003\n\nSODLQWL\u0d75\u0003PXVW\u0003DOOHJH\u0003VX\u0d76FLHQW\u0003IDFWV\u0003WR\u0003VKRZ\u0003\u00b3PRUH\u0003WKDQ\u0003D\u0003VKHHU\u0003SRVVLELOLW\\\u0003WKDW\u0003D\u0003\n\nGHIHQGDQW\u0003KDV\u0003DFWHG\u0003XQODZIXOO\\\u0011\u00b4 Id. ,I\u0003WKH\u0003SODLQWL\u0d75\u0003KDV\u0003QRW\u0003\u00b3QXGJHG\u0003>KLV@\u0003FODLPV\u0003DFURVV\u0003\n\nWKH\u0003OLQH\u0003IURP\u0003FRQFHLYDEOH\u0003WR\u0003SODXVLEOH\u000f\u0003>WKH@\u0003FRPSODLQW\u0003PXVW\u0003EH\u0003GLVPLVVHG\u0011\u00b4 Twombly,\n\n550 U.S. at 570.\n\n        \u0e60H\u0003TXHVWLRQ\u0003LQ\u0003D\u00035XOH\u0003\u0014\u0015 E \u0019 \u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003\u00b3LV\u0003QRW\u0003ZKHWKHU\u0003D\u0003SODLQWL\u0d75\u0003ZLOO\u0003\n\nXOWLPDWHO\\\u0003SUHYDLO\u0003EXW\u0003ZKHWKHU\u0003WKH\u0003FODLPDQW\u0003LV\u0003HQWLWOHG\u0003WR\u0003R\u0d75HU\u0003HYLGHQFH\u0003WR\u0003VXSSRUW\u0003WKH\u0003\n\nFODLPV\u0011\u00b4\u0003 Sikhs for Justice v. Nath\u000f\u0003\u001b\u001c\u0016\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0018\u001c\u001b\u000f\u0003\u0019\u0014\u0018\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0015 \u0003 TXRWLQJ\u0003\n\nVillager Pond, Inc. v. Town of Darien\u000f\u0003\u0018\u0019\u0003)\u0011\u0016G\u0003\u0016\u001a\u0018\u000f\u0003\u0016\u001a\u001b\u0003 \u0015G\u0003&LU\u0011\u0003\u0014\u001c\u001c\u0018 \u0011 \u00b3>7@KH\u0003SXUSRVH\u0003\n\nRI\u0003)HGHUDO\u00035XOH\u0003RI\u0003&LYLO\u00033URFHGXUH\u0003\u0014\u0015 E \u0019 \u0003\u00b5LV\u0003WR\u0003WHVW\u000f\u0003LQ\u0003D\u0003VWUHDPOLQHG\u0003IDVKLRQ\u000f\u0003WKH\u0003\n\nIRUPDO\u0003VX\u0d76FLHQF\\\u0003RI\u0003WKH\u0003SODLQWL\u0d75\u00b6V\u0003VWDWHPHQW RI\u0003D\u0003FODLP\u0003IRU\u0003UHOLHI\u0003ZLWKRXW\u0003UHVROYLQJ\u0003D\u0003\n\nFRQWHVW\u0003UHJDUGLQJ\u0003LWV\u0003VXEVWDQWLYH\u0003PHULWV\u000f\u00b6\u00b4\u0003DQG\u0003ZLWKRXW\u0003UHJDUG\u0003IRU\u0003WKH\u0003ZHLJKW\u0003RI\u0003WKH\u0003\n\nHYLGHQFH\u0003WKDW\u0003PLJKW\u0003EH\u0003R\u0d75HUHG\u0003LQ\u0003VXSSRUW\u0003RI\u0003WKH\u0003SODLQWL\u0d75\u00b6V\u0003FODLPV\u0011\u0003 Halebian v. Berv, 644\n\n)\u0011\u0016G\u0003\u0014\u0015\u0015\u000f\u0003\u0014\u0016\u0013\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0014 \u0003 TXRWLQJ\u0003Global Network Communications, Inc. v. City of\n\nNew York\u000f\u0003\u0017\u0018\u001b\u0003)\u0011\u0016G\u0003\u0014\u0018\u0013\u000f\u0003\u0014\u0018\u0018\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u0019 \u0011\u0003 )XUWKHUPRUH\u000f\u0003\u00b3RQO\\\u0003D\u0003FRPSODLQW\u0003WKDW\u0003VWDWHV\u0003\n\nD\u0003SODXVLEOH\u0003FODLP\u0003IRU\u0003UHOLHI\u0003VXUYLYHV\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u00b4\u0003DQG\u0003\u00b3>G@HWHUPLQLQJ\u0003ZKHWKHU\u0003D\u0003\n\nFRPSODLQW\u0003VWDWHV\u0003D\u0003SODXVLEOH\u0003FODLP\u0003IRU\u0003UHOLHI\u0003ZLOO\u0003\u0011 . \u0011\u0003EH\u0003D\u0003FRQWH[W-VSHFL\u00bfF\u0003WDVN\u0003WKDW\u0003\n\nUHTXLUHV\u0003WKH\u0003UHYLHZLQJ\u0003FRXUW\u0003WR\u0003GUDZ\u0003RQ\u0003LWV\u0003MXGLFLDO\u0003H[SHULHQFH\u0003DQG\u0003FRPPRQ\u0003VHQVH\u0011\u00b4\n\nIqbal, 556 U.S. at 679.\n           B. Rule 9(b)\n        %HFDXVH\u0003FODLPV\u0003XQGHU\u0003Section \u0014\u0013 E \u0003RI\u0003WKH\u0003([FKDQJH\u0003$FW\u0003DQG\u00035XOH\u0003\u0014\u0013E-5\n\nWKHUHXQGHU\u0003VRXQG\u0003LQ\u0003IUDXG\u000f\u0003WKH\\\u0003DUH\u0003VXEMHFW\u0003WR\u0003WKH\u0003KHLJKWHQHG\u0003SOHDGLQJ\u0003UHTXLUHPHQWV\u0003RI\u0003\n\nFedHUDO RXOH\u0003RI Civil PURFHGXUH \u001c E \u0003DQG\u0003WKH\u00033SLRA. Novak v. Kasaks, 216 F.3d 300,\n\n306\u2013\u0013\u001a\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u0013 \u0011\u0003 5XOH\u0003\u001c E \u0003UHTXLUHV\u0003WKDW\u0003WKH\u0003FRPSODLQW\u0003\u00b3VWDWH\u0003ZLWK\u0003SDUWLFXODULW\\\u0003WKH\u0003\n\nFLUFXPVWDQFHV\u0003FRQVWLWXWLQJ\u0003IUDXG\u0011\u00b4\u0003 Fed. R. Civ. P. 9(b). 7R\u0003VDWLVI\\\u0003WKDW\u0003UHTXLUHPHQW\u000f\u0003WKH\u0003\n\nFRPSODLQW\u0003PXVW\u001d \u00b3 \u0014 VSHFLI\\\u0003WKH\u0003VWDWHPHQWV\u0003WKDW\u0003WKH\u0003SODLQWL\u0d75\u0003FRQWHQGV\u0003ZHUH\u0003IUDXGXOHQW\u000f\u0003\n\n                                              12\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26       Page 13 of 39\n\n\n\n\n(2) LGHQWLI\\\u0003WKH\u0003VSHDNHU\u000f\u0003 \u0016 \u0003 VWDWH\u0003ZKHUH\u0003DQG\u0003ZKHQ\u0003WKH\u0003VWDWHPHQWV\u0003ZHUH\u0003PDGH\u000f\u0003DQG\u0003 \u0017 \u0003\n\nH[SODLQ\u0003ZK\\\u0003WKH\u0003VWDWHPHQWV\u0003ZHUH\u0003IUDXGXOHQW\u0011\u00b4\u0003 ATSI Communications, Inc. v. Shaar Fund,\n\nLimited\u000f\u0003\u0017\u001c\u0016\u0003)\u0011\u0016G\u0003\u001b\u001a\u000f\u0003\u001c\u001c\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u001a \u0003 FLWLQJ\u0003Novak, 216 F.3d at 306). \u0e60H\u000336/5$\u0003\n\nLPSRVHV\u0003VLPLODU\u0003UHTXLUHPHQWV\u0003RQ\u0003FODLPV\u0003EURXJKW\u0003XQGHU\u0003WKH\u0003([FKDQJH\u0003$FW\u001d\u0003 \u00b3WKH\u0003FRPSODLQW\u0003\n\nVKDOO\u0003VSHFLI\\\u0003HDFK\u0003VWDWHPHQW\u0003DOOHJHG\u0003WR\u0003KDYH\u0003EHHQ\u0003PLVOHDGLQJ\u000f\u0003WKH\u0003UHDVRQ\u0003RU\u0003UHDVRQV\u0003ZK\\\u0003\n\nWKH\u0003VWDWHPHQW\u0003LV\u0003PLVOHDGLQJ\u000f\u0003DQG\u000f\u0003LI\u0003DQ\u0003DOOHJDWLRQ\u0003UHJDUGLQJ\u0003WKH\u0003VWDWHPHQW\u0003RU\u0003RPLVVLRQ\u0003LV\u0003\n\nPDGH\u0003RQ\u0003LQIRUPDWLRQ\u0003DQG\u0003EHOLHI\u000f\u0003WKH\u0003FRPSODLQW\u0003VKDOO\u0003VWDWH\u0003ZLWK\u0003SDUWLFXODULW\\\u0003DOO\u0003IDFWV\u0003RQ\u0003\n\nZKLFK\u0003WKDW\u0003EHOLHI\u0003LV\u0003IRUPHG\u0011\u00b4\u0003 \u0014\u0018\u00038\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bX-4(b)(1). \u0e60H\u000336/5$\u0003IXUWKHU\u0003UHTXLUHV\u0003WKDW\u0003\n\nWKH\u0003FRPSODLQW\u0003\u00b3VWDWH\u0003ZLWK\u0003SDUWLFXODULW\\\u0003IDFWV JLYLQJ\u0003ULVH\u0003WR\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003WKDW\u0003WKH\u0003\n\nGHIHQGDQW\u0003DFWHG\u0003ZLWK\u0003WKH\u0003UHTXLUHG\u0003VWDWH\u0003RI\u0003PLQG\u00b4\u0003ZLWK\u0003UHVSHFW\u0003WR\u0003HDFK\u0003DOOHJHG\u0003\n\nPLVVWDWHPHQW\u0003RU\u0003RPLVVLRQ\u0011\u0003 Id. \u0086\u0003\u001a\u001bX-4(b)(2)(A). $\u0003FRPSODLQW\u0003ZLOO\u0003VXUYLYH\u0003XQGHU\u0003WKDW\u0003\n\nKHLJKWHQHG\u0003VWDQGDUG\u0003\u00b3RQO\\\u0003LI\u0003D\u0003UHDVRQDEOH\u0003SHUVRQ\u0003ZRXOG\u0003GHHP\u0003WKH\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0003\n\nFRJHQW\u0003DQG\u0003DW\u0003OHDVW\u0003DV\u0003FRPSHOOLQJ\u0003DV\u0003DQ\\\u0003RSSRVLQJ\u0003LQIHUHQFH\u0003RQH\u0003FRXOG\u0003GUDZ\u0003IURP\u0003WKH\u0003\n\nIDFWV\u0003DOOHJHG\u0011\u00b4 Tellabs, Inc. v. Makor Issues & Rights, Limited, 551 U.S. 308, 324 (2007).\n          C. External Documents\n       ,Q\u0003UHVROYLQJ\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003XQGHU\u00035XOH\u0003\u0014\u0015 E \u0019 \u000f\u0003FRXUWV\u0003JHQHUDOO\\\u0003PD\\\u0003QRW\u0003\n\nFRQVLGHU\u0003PDWHULDOV\u0003H[WULQVLF\u0003WR\u0003WKH\u0003FRPSODLQW\u0011\u0003 Fed. R. Civ. P. 12(d). +RZHYHU\u000f\u0003WKDW\u0003UXOH\u0003LV\u0003\n\nQRW\u0003DEVROXWH\u0011\u0003 ,Q\u0003DGGLWLRQ\u0003WR\u0003WKH\u0003IDFWV\u0003DOOHJHG\u0003LQ\u0003WKH\u0003FRPSODLQW\u000f\u0003FRXUWV\u0003\u00b3PD\\\u0003FRQVLGHU\u0003DQ\\\u0003\nZULWWHQ\u0003LQVWUXPHQW\u0003DWWDFKHG\u0003WR\u0003WKH\u0003FRPSODLQW\u000f\u0003VWDWHPHQWV\u0003RU\u0003GRFXPHQWV\u0003LQFRUSRUDWHG\u0003LQWR\u0003\n\nWKH\u0003FRPSODLQW\u0003E\\\u0003UHIHUHQFH\u000f\u0003OHJDOO\\\u0003UHTXLUHG\u0003SXEOLF\u0003GLVFORVXUH\u0003GRFXPHQWV\u0003\u00bfOHG\u0003ZLWK\u0003WKH\u0003\n\nSEC, and dRFXPHQWV\u0003SRVVHVVHG\u0003E\\\u0003RU\u0003NQRZQ\u0003WR\u0003WKH\u0003SODLQWL\u0d75\u0003DQG\u0003XSRQ\u0003ZKLFK\u0003LW\u0003UHOLHG\u0003LQ\u0003\n\nEULQJLQJ\u0003WKH\u0003VXLW\u0011\u00b4\u0003 ATSI Communications, 493 F.3d at 98. &RXUWV\u0003PD\\\u0003DOVR\u0003FRQVLGHU\u0003\n\n\u00b3PDWWHUV\u0003RI\u0003ZKLFK\u0003MXGLFLDO\u0003QRWLFH\u0003PD\\\u0003EH\u0003WDNHQ\u0011\u00b4 Goel v. Bunge, Limited, 820 F.3d 554,\n\n\u0018\u0018\u001c\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0019 \u0003 FLWDWLRQ\u0003Rmitted). \u0e60H\u0003&RXUW\u0003PD\\\u0003DOVR\u0003\u00b3WDNH\u0003MXGLFLDO\u0003QRWLFH\u0003RI\u0003SXEOLF\u0003\n\nGLVFORVXUH\u0003GRFXPHQWV\u0003WKDW\u0003PXVW\u0003EH\u0003\u00bfOHG\u0003ZLWK\u0003WKH\u0003>6(&@\u0003DQG\u0003GRFXPHQWV\u0003WKDW\u0003ERWK\u0003\u00b5EHDU\u0003RQ\u0003\n\nWKH\u0003DGHTXDF\\\u00b6\u0003RI\u00036(&\u0003GLVFORVXUHV\u0003DQG\u0003DUH\u0003\u00b5SXEOLF\u0003GLVFORVXUH\u0003GRFXPHQWV\u0003UHTXLUHG\u0003E\\\u0003ODZ\u0011\u00b6\u00b4\u0003\n\nSilsby v. Icahn\u000f\u0003\u0014\u001a\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0016\u0017\u001b\u000f\u0003\u0016\u0018\u0017\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0017) (TXRWLQJ Kramer v. Time\n\n                                              13\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26      Page 14 of 39\n\n\n\n\nWarner, Inc., 937 F.2d 767, 773\u2013\u001a\u0017\u0003 \u0015G\u0003&LU\u0011\u0003\u0014\u001c\u001c\u0014 , D\u09fc\u2019d sub nom. Lucas v. Icahn, 616 F.\n\n$SS\u00b6[\u0003\u0017\u0017\u001b\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0018 ; see also In re Bank of America AIG Disclosure Securities\n\nLitigation\u000f\u0003\u001c\u001b\u0013\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0018\u0019\u0017\u000f\u0003\u0018\u001a\u0013\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0016 \u000f\u0003D\u09fc\u2019d\u000f\u0003\u0018\u0019\u0019\u0003)\u0011\u0003$SS\u00b6[\u0011\u0003\u001c\u0016\u0003 \u0015G\u0003&LU\u0011\u0003\n\n2014). +RZHYHU\u000f\u0003WKH\u0003&RXUW\u0003FDQ\u0003FRQVLGHU\u0003D\u0003FRPSDQ\\\u00b6V\u0003SXEOLF\u0003\u00bfOLQJV\u0003ZLWK\u0003WKH\u00036(&\u0003\u00b3\u00b5RQO\\\u0003\n\nWR\u0003GHWHUPLQH\u0003ZKDW\u0003WKH\u0003GRFXPHQWV\u0003VWDWHG\u000f\u00b6\u0003DQG\u0003\u00b5QRW\u0003WR\u0003SURYH\u0003WKH\u0003WUXWK\u0003RI\u0003WKHLU\u0003FRQWHQWV\u0011\u00b6\u00b4\n\nRoth v. Jennings\u000f\u0003\u0017\u001b\u001c\u0003)\u0011\u0016G\u0003\u0017\u001c\u001c\u000f\u0003\u0018\u0013\u001c\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u001a \u0003(HPSKDVLV\u0003RPLWWHG) TXRWLQJ\u0003Kramer,\n\n937 F.2d at 774).\nIII.   DISCUSSION\n           A. Judicial Notice of External Documents\n       \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DWWDFK\u0003\u00155 GRFXPHQWV\u0003WR\u0003WKH\u0003'HFODUDWLRQ\u0003RI\u0003-DVRQ\u0003&\u0011\u0003\n\n+HJW\u0003LQ\u0003VXSSRUW\u0003RI\u0003WKHLU\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0011 See Doc. 81.\n\n       \u0e60H\u00036$&\u0003QHLWKHU citeV nRU\u0003UHIHUV WR\u0003VL[\u0003RI\u0003WKH\u0003DWWDFKHG\u0003GRFXPHQWV\u001d\n       \u0083   ([KLELW\u0003\u001c\u0003- <DKRR\u0004\u0003)LQDQFH\u00036WRFN\u00033ULFH\u00035HFRUG\n       \u0083   ([KLELW\u0003\u0014\u001c\u0003- )RUP\u0003\u0014\u0017\u0017\u0003 6\u0011\u00033KDLU\n       \u0083   ([KLELW\u0003\u0015\u0013\u0003- )RUP\u0003\u0014\u0017\u0017\u0003 (\u0011\u0003-RUGDQ\n       \u0083   ([KLELW\u0003\u0015\u0015\u0003- )RUP\u0003\u0014\u0016*\u0003 -\u0011\u00031HYHV\n       \u0083   ([KLELW\u0003\u0015\u0016\u0003- )RUEHV\u0003$UWLFOH\n       \u0083   ([KLELW\u0003\u0015\u0017\u0003- 9DQJXDUG\u0003\u0e60LQN\u00037DQN\u0003$UWLFOH\n\n       $\u0003GLVWULFW\u0003FRXUW\u0003LV\u0003HQWLWOHG\u0003WR\u0003FRQVLGHU\u0003\u00b3WKH\u0003IXOO\u0003WH[W\u0003RI\u0003WKRVH\u0003GRFXPHQWV\u00b4\u0003SDUWLDOO\\\u0003\n\nTXRWHG\u0003LQ\u0003D\u0003FRPSODLQW\u0003EXW\u0003FRQVLGHUHG\u0003LQWHJUDO\u0003WR\u0003UXOLQJ\u0003RQ\u0003D\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0011 San\n\n/HDQGUR\u0003(PHUJHQF\\\u00030HGLFDO\u0003*URXS\u00033UR\u00bfW\u00036KDULQJ\u00033ODQ\u0003Y\u0011\u00033KLOLS\u00030RUULV\u0003&RPSDQLHV\u000f\u0003\n\nInc.\u000f\u0003\u001a\u0018\u0003)\u0011\u0016G\u0003\u001b\u0013\u0014\u000f\u0003\u001b\u0013\u001c\u0003 \u0015G\u0003&LU\u0011\u0003\u0014\u001c\u001c\u0019 \u0011 )RU\u0003D\u0003GRFXPHQW\u0003WR\u0003EH\u0003LQWHJUDO\u000f\u0003WKH\u0003FRPSODLQW\u0003PXVW\u0003\n\nGR\u0003PRUH\u0003WKDQ\u0003PHUHO\\\u0003PHQWLRQ\u0003LW\u0011 Goel, 820 F.3d at 559\u201360. \u0e60H\u0003FRPSODLQW\u0003PXVW\u0003\u00b3UHO>\\@\u0003\n\nKHDYLO\\\u0003XSRQ\u0003LWV\u0003WHUPV\u0003DQG\u0003H\u0d75HFW\u0011\u00b4 DiFolco, 622 F.3d at 111 TXRWLQJ\u00030DQJLD\u00bfFR\u0003Y\u0011\u0003\n\nBlumenthal, 471 F.3d 391, 398 (2d &LU\u0011\u0003\u0015\u0013\u0013\u0019 \u0011\u0003\u0003+HUH\u000f\u0003VHFXULWLHV\u0003\u00bfOLQJV\u0003SDUWLDOO\\\u0003TXRWHG\u0003LQ\u0003\n\nWKH\u0003SAC\u000f\u0003DV\u0003ZHOO\u0003DV\u0003TXDUWHUO\\\u0003HDUQLQJV\u0003FDOOV\u0003DQG\u0003UHOHDVHV\u000f DUH\u0003LQWHJUDO\u0003WR\u0003WKH\u0003DOOHJDWLRQV\u0003\n\nEDVHG\u0003RQ\u0003VHFXULWLHV\u0003IUDXG\u0011\u0003 $FFRUGLQJO\\\u000f\u0003WKH\u0003S$&\u0003LQFRUSRUDWHV\u0003WKHVH\u0003GRFXPHQWV\u0003E\\\u0003\n\nUHIHUHQFH\u000f DQG\u0003WKH\u0003&RXUW\u0003ZLOO\u0003FRQVLGHU\u0003WKHP\u0003LQ\u0003GHFLGLQJ\u0003WKH\u0003SUHVHQW\u0003PRWLRQ\u0011\n\n                                             14\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26      Page 15 of 39\n\n\n\n\n       5HJDUGLQJ\u0003WKH\u0003GRFXPHQWV\u0003QRW\u0003FLWHG\u0003LQ\u0003WKH\u0003SAC\u2014<DKRR\u0004\u0003)LQDQFH\u00036WRFN\u00033ULFH\u0003\n\n5HFRUG\u000f\u0003)RUPV\u0003\u0014\u0017\u0017\u0003 6\u0011\u00033KDLU DQG\u0003(\u0011\u0003-RUGDQ), )RUP\u0003\u0014\u0016*\u0003 -\u0011\u00031HYHV \u000f\u0003WKH\u0003)RUEHV AUWLFOH\u000f\u0003\n\nDQG\u0003WKH\u00039DQJXDUG\u0003AUWLFOH\u2014WKH\u0003&RXUW\u0003PD\\\u0003\u00b3WDNH\u0003MXGLFLDO\u0003QRWLFH\u0003RI\u0003SXEOLF\u0003GLVFORVXUH\u0003\n\nGRFXPHQWV\u0003WKDW\u0003PXVW\u0003EH\u0003\u00bfOHG\u0003ZLWK\u0003WKH\u0003[SEC]\u00b4\u0003DV\u0003ZHOO\u0003DV\u0003\u00b3GRFXPHQWV\u0003WKDW\u0003ERWK\u0003\u00b5EHDU\u0003RQ\u0003\n\nWKH\u0003DGHTXDF\\\u00b6\u0003RI\u00036(&\u0003GLVFORVXUHV\u0003DQG\u0003DUH\u0003\u00b5SXEOLF\u0003GLVFORVXUH\u0003GRFXPHQWV\u0003UHTXLUHG\u0003E\\\u0003\n\nODZ\u000f\u00b6\u00b4 Silsby\u000f\u0003\u0014\u001a\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003DW\u0003\u0016\u0018\u0017 TXRWLQJ Kramer, 937 F.2d at 773\u201374)\u000f\u0003DQG\u0003RI\u0003\u00b3SUHVV\u0003\n\nFRYHUDJH\u0003HVWDEOLVKLQJ\u0003ZKDW\u0003LQIRUPDWLRQ\u0003H[LVWHG\u0003LQ\u0003WKH\u0003SXEOLF\u0003GRPDLQ\u0003GXULQJ\u0003SHULRGV\u0003\n\nUHOHYDQW\u0003WR\u0003WKH\u0003SODLQWL\u0d75V\u00b6\u0003FODLPV,\u00b4 In re Bank of America\u000f\u0003\u001c\u001b\u0013\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003DW\u0003\u0018\u001a\u0013 (citinJ\n\nStaehr v. Hartford Financial Services Group, Inc., 547 F.3d 406, 425\u2013\u0015\u0019\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u001b \u0011\u0003\n\n\u0e60HUHIRUH\u000f\u0003WKLV\u0003&RXUW\u0003PD\\\u0003WDNH\u0003MXGLFLDO\u0003QRWLFH\u0003RI\u0003DOO\u0003RI\u0003WKH\u0003GRFXPHQWV\u0003DWWDFKHG\u0003WR\u0003WKH\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0011\n          B. Section 10(b) and Rule 10b-5 Liability\n           3ODLQWL\u09fcV\u0003)DLO\u0003to Plead Material Misrepresentations or Omissions\n       3ODLQWL\u0d75V\u0003PDNH\u0003FOHDU WKDW\u0003WKH \u00b3XQGLVFORVHG\u0003SXUVXLW\u00b4 RI\u00033URMHFW\u0003$WKHQD LV\u0003WKH\u0003\n\nGULYLQJ\u0003IRUFH\u0003EHKLQG\u0003WKHLU\u0003WKHRU\\ WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6 VWDWHPHQWV\u0003ZHUH\u0003\n\nPLVOHDGLQJ. Doc. 83 at 13. 6SHFL\u00bfFDOO\\\u000f\u00033ODLQWL\u0d75V\u0003DUJXH\u0003WKDW WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003\n\n\u00b3SXEOLFO\\\u0003DVVXUHG\u0003LQYHVWRUV\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003VHOI-IXQGLQJ\u0003DQG\u0003GLG\u0003QRW\u0003QHHG\u0003H[WHUQDO\u0003\n\nFDSLWDO\u000f\u0003ZKLOH\u0003VHFUHWO\\\u0003SXUVXLQJ\u0003>3URMHFW\u0003$WKHQD@\u0003ZKRVH\u0003HQWLUH\u0003SXUSRVH\u0003ZDV\u0003WR\u0003UDLVH\u0003\nH[WHUQDO\u0003FDSLWDO\u0003RU\u0003VHOO\u0003WKH\u0003EXVLQHVV\u0003GXH\u0003WR\u0003WKH\u0003FRPSDQ\\\u00b6V\u0003GLUH\u0003FRQGLWLRQ\u0011\u00b4\u0003\u0003Id. at 15.\n\n3ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKHVH\u0003WZR\u0003VLPXOWDQHRXV\u0003HYHQWV\u000f\u0003VWDWHPHQWV\u0003WKDW\u0003)DUIHWFK\u0003GLG\u0003QRW\u0003\u00b3QHHG\u0003\n\nRXWVLGH\u0003FDSLWDO\u000f\u00b4\u0003ZKLOH\u0003\u00b3DFWLYHO\\\u0003VHHNLQJ\u0003RXWVLGH\u0003FDSLWDO\u00b4\u0003PDNH\u0003WKH\u0003VWDWHPHQWV\u0003\n\nIUDXGXOHQWO\\\u0003PLVOHDGLQJ\u0011\u0003\u0003Id. \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003FRXQWHU\u0003WKDW\u0003QRZKHUH\u0003LQ\u0003WKH\u00036$&\u0003\n\ndo DQ\\\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV FODLP\u0003WKDW\u0003\u00b3)DUIHWFK\u0003ZDV\u0003VHOI-IXQGLQJ\u0003DQG\u0003GLG\u0003QRW\u0003\n\nQHHG\u0003H[WHUQDO\u0003FDSLWDO\u000f\u00b4\u0003EXW\u0003UDWKHU, WKDW\u0003WKLV\u0003ZDV\u00033ODLQWL\u0d75V\u00b6 \u00b3RZQ\u0003VXEMHFWLYH\u0003\n\n\u00b5LQWHUSUHWDWLRQ\u00b6\u00b4 DQG\u0003WKDW\u0003WKH\u0003&RPSDQ\\\u0003ZDV\u0003FOHDU\u0003WKDW\u0003LW\u0003PD\\\u0003SXUVXH\u0003DGGLWLRQDO\u0003\u00bfQDQFLQJ\u0011\u0003\u0003\n\nDoc. 84 at 7. \u0e60H\\\u0003IXUWKHU\u0003DUJXH WKDW\u00033ODLQWL\u0d75V\u0003LPSURSHUO\\ DWWHPSW\u0003WR\u0003GHYHORS\u0003IUDXG\u0003E\\\u0003\n\nKLQGVLJKW\u0003EHFDXVH\u000f\u00b3[a]t bottom, WKH\u00036$&\u0003DOOHJHV\u0003WKDW\u0003EHFDXVH\u0003)DUIHWFK\u0003XOWLPDWHO\\\u0003ZDV\u0003\n\n                                             15\n\f    Case 1:23-cv-10982-ER               Document 86            Filed 09/29/26         Page 16 of 39\n\n\n\n\nSODFHG\u0003LQWR\u0003OLTXLGDWLRQ\u0003LQ\u0003HDUO\\\u0003\u0015\u0013\u0015\u0017\u000f\u0003'HIHQGDQWV\u0003PXVW\u0003KDYH\u0003NQRZQ\u0003WKDW\u0003WKHLU\u0003\u00bfQDQFLDO\u0003\n\nSURMHFWLRQV\u0003JRLQJ\u0003EDFN\u0003WR\u0003'HFHPEHU\u0003\u0015\u0013\u0015\u0015\u0003ZHUH\u0003IDOVH\u0011\u00b4 Id. at 6.\n\n         $W\u0003WKH\u0003RXWVHW\u000f \u00b3LW\u0003LV\u0003ZHOO-VHWWOHG\u0003WKDW\u0003\u00b5IUDXG\u0003E\\\u0003KLQGVLJKW\u00b6\u0003LV\u0003QRW\u0003D\u0003FRJQL]DEOH\u0003WKHRU\\\u0003\n\nRI\u0003UHOLHI\u0011\u00b4 In re PetroChina Co. Limited Securities Litigation\u000f\u0003\u0014\u0015\u0013\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0016\u0017\u0013, 366\n\n(S.D.N.Y. 2015) TXRWLQJ In re Longtop Financial Technologies Limited Securities\n\nLitigation, 910 )\u0011\u00036XSS\u0011\u0003\u0015G\u0003561, 579 (S.D.N.Y. 2012)). 3ODLQWL\u0d75V VWDWH\u0003WKDW\u0003WKH\\ do not\n\nUHO\\\u0003RQ\u0003IUDXG\u0003E\\\u0003KLQGVLJKW; UDWKHU\u000f\u0003WKH\\\u0003DUJXH\u0003WKDW\u0003WKH\u0003SUHVHQW\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003\n\nPDGH\u0003WKH\u0003VWDWHPHQWV\u0003IDOVH\u0003RU\u0003PLVOHDGLQJ\u0003ZKHQ\u0003WKH ,QGLYLGXDO\u0003'HIHQGDQWV made WKHP.\n\nDoc. 83 at 14\u201315.\n\n         3ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW\u0003WKLV\u0003LQLWLDWLYH\u0003ZDV\u0003LQFRQVLVWHQW\u0003ZLWK\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u00b6\u0003VWDWHPHQWV\u0003WKDW\u0003\u00b3)DUIHWFK\u0003ZDV\u0003\u00bfQDQFLDOO\\\u0003VHFXUH\u000f\u0003VHOI-IXQGLQJ\u000f\u0003DQG\u0003QRW\u0003LQ\u0003\n\nQHHG\u0003RI\u0003H[WHUQDO\u0003FDSLWDO\u000f\u00b4\u0003EHFDXVH\u00033URMHFW\u0003$WKHQD\u00b6V\u0003\u00b3VROH\u0003SXUSRVH\u0003ZDV\u0003WR\u0003UDLVH\u0003FDSLWDO\u0003\n\nWKURXJK\u0003H[WUDRUGLQDU\\\u0003WUDQVDFWLRQV\u0011\u00b4\u0003\u0003Id. at 22\u201323. +RZHYHU\u000f\u0003WKH\\\u0003IDLO\u0003WR\u0003VKRZ\u0003ZK\\\u0003WKH\u0003\n\nH[LVWHQFH\u0003RI\u0003D\u0003SODQ\u0003WR\u0003HQJDJH\u0003LQ\u0003D\u0003WDNH-SULYDWH\u0003WUDQVDFWLRQ\u0003PHDQV\u0003WKDW\u0003WKH\u0003DOOHJHG\u0003\n\nVWDWHPHQWV\u0003ZHUH\u0003LQ\u0003IDFW\u0003IDOVH\u0003RU\u0003PLVOHDGLQJ\u0011\u0003\u00033ODLQWL\u0d75V\u000f\u0003FLWLQJ Meyer v. Jinkosolar\n\nHoldings Co., 761 F.3d 245, 251\u2013252 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0017 \u000f\u0003DUJXH\u0003WKDW\u0003SXUVXLW\u0003RI\u00033URMHFW\u0003$WKHQD\n\nLV\u0003DFWLRQDEOH\u0003EHFDXVH\u0003LW\u0003\u00b3FRQWUDGLFWV\u0003>)DUIHWFK\u00b6V@\u0003SXEOLF\u0003QDUUDWLYH\u000f\u00b4\u0003PDNLQJ\u0003LW\u0003DQ\u0003\n\nDFWLRQDEOH\u0003RPLVVLRQ, Doc. 83 at 23. \u0e60H\u0003SUREOHP ZLWK\u0003WKLV\u0003DUJXPHQW\u0003LV\u0003WKDW\u0003WKH\u00036$&\u0003GRHV\u0003\n\nQRW\u0003VX\u0d76FLHQWO\\\u0003DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003VDLG\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003VHOI-IXQGLQJ\u0003\n\nDQG\u0003QRW\u0003LQ\u0003QHHG\u0003RI\u0003RXWVLGH\u0003FDSLWDO. 5 \u0e60H\u0003VWDWHPHQWV\u00033ODLQWL\u0d75V\u0003FLWH\u0003GR\u0003QRW\u0003PDNH\u0003WKRVH\u0003\n                                         4F\n\n\n\n\nDVVXUDQFHV\u0003DQG\u0003DUH\u0003HLWKHU\u0003QRQ-DFWLRQDEOH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u000f\u0003QRQ-actionable\n\nRSLQLRQ\u0003VWDWHPHQWV\u000f\u0003RU\u0003QRQ-DFWLRQDEOH\u0003SX\u0d75HU\\\u0011\u0003 \u0088\u0088\u0003\u0014\u0017\u0017\u201386. \u00b3,PSRUWDQWO\\\u000f\u0003WKH\u0003QHZ\u0003\n\n\n5\n  ,Q\u0003IDFW\u000f\u0003LQ\u0003)DUIHWFK\u00b6V\u0003\u0015\u0013\u0015\u0015\u0003)RUP\u0003\u0015\u0013-)\u000f\u0003WKH\\\u0003H[SOLFLWO\\\u0003VWDWHG\u001d\u0003\u0003\u00b3,I\u0003ZH\u0003DUH\u0003XQDEOH\u0003WR\u0003JHQHUDWH\u0003VX\u0d76FLHQW\u0003FDVK\u0003\n\u00c0RZV\u0003IURP\u0003RSHUDWLRQV\u0003LQ\u0003WKH\u0003IXWXUH\u000f\u0003ZH\u0003PD\\\u0003KDYH\u0003WR\u0003REWDLQ\u0003DGGLWLRQDO\u0003\u00bfQDQFLQJ\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0014-12 at 103. ,Q\u0003WKH\u0003\n4\u0015\u0003\u0015\u0013\u0015\u0016\u0003(DUQLQJV\u00035HOHDVH\u000f\u0003WKH\\\u0003VWDWHG\u001d\u0003\u0003\u00b3>$@Q\\\u0003SURMHFWLRQV\u0003RI\u0003IXWXUH\u0003FDVK\u0003QHHGV\u0003DQG\u0003FDVK\u0003\u00c0RZV\u0003DUH\u0003VXEMHFW\u0003\nWR\u0003LQKHUHQW\u0003XQFHUWDLQW\\\u0011\u0003 ,Q\u0003WKH\u0003RUGLQDU\\\u0003FRXUVH\u000f\u0003ZH\u0003FRQWLQXDOO\\\u0003HYDOXDWH\u0003RSSRUWXQLtiHV\u0003WR\u0003UDLVH\u0003DGGLtional\nHTXLW\\\u0003RU\u0003GHEW\u000f\u0003REWDLQ\u0003FUHGLW\u0003IDFLOLtiHV\u000f\u0003HQWHU\u0003LQWR\u0003OHDVLQJ\u0003DUUDQJHPHQWV\u000f\u0003HQWHU\u0003LQWR\u0003\u00bfQDQFLQJ\u0003REOLJDtiRQV\u000f\u0003\nUHSXUFKDVH\u0003FRPPRQ\u0003VWRFN\u000f\u0003RU\u0003UHSXUFKDVH\u000f\u0003UH\u00bfQDQFH\u0003RU\u0003RWKHUZLVH\u0003UHVWUXFWXUH\u0003GHEW\u0003IRU\u0003VWUDWHJLF\u0003UHDVRQV\u0003RU\u0003WR\u0003\nIXUWKHU\u0003VWUHQJWKHQ\u0003RXU\u0003\u00bfQDQFLDO\u0003SRVLtion.\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0014-18 at 11.\n\n                                                     16\n\f   Case 1:23-cv-10982-ER           Document 86         Filed 09/29/26       Page 17 of 39\n\n\n\n\nDOOHJDWLRQV\u0003GR\u0003QRW\u0003FKDQJH\u0003ZKDW\u0003WKH\u0003GHIHQGDQWV\u0003DFWXDOO\\\u0003VDLG\u0003\u0011\u0003\u0011\u0003\u0011\u0003\u0011\u00b4\u0003\u0003In re Adobe Inc.\n\nSecurities Litigation, No. 23 Civ. 9260 (JGK), 2025 WL 3124312, at *12 (S.D.N.Y. Nov.\n\n7, 2025). ,QVWHDG\u000f\u00033ODLQWL\u0d75V\u0003UHO\\\u0003RQ\u0003WKH\u0003WKHRU\\\u0003WKat 3URMHFW\u0003$WKHQD\u000f\u0003\u00b3D\u0003IRUPDO\u0003SURFHVV\u0003WR\u0003\n\nUDLVH\u0003FDSLWDO\u0003RU\u0003VHOO\u0003WKH\u0003EXVLQHVV,\u00b4 LPSXWHV OLDELOLW\\\u0003RQto WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV,\n\nUHDVRQLQJ\u0003WKDW\u0003WKH\u0003SXEOLF VWDWHPHQWV\u0003DERXW\u0003WKH\u0003\u00bfQDQFLDO ZHOO-EHLQJ\u0003RI\u0003)DUIHWFK ZHUH\u0003\n\nPDWHULDOO\\ PLVOHDGLQJ\u0003EHFDXVH\u0003WKH\\ IDLOHG\u0003WR\u0003GLVFORVH\u0003WKH\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD.\n\nDoc. 83 at 8. %XW\u000f\u0003WKH\u0003SXUVXLW\u0003RI\u0003D\u0003WDNH-SULYDWH\u0003WUDQVDFWLRQ\u0003GRHV\u0003QRW\u0003QHFHVVDULO\\\u0003PHDQ a\n\nFRPSDQ\\\u0003LV\u0003IDFLQJ\u0003D\u0003OLTXLGLW\\\u0003FULVLV\u0011\n\n        $W\u0003EHVW\u000f\u00033ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKH\u0003VWDWHPHQWV\u0003PDGH\u0003E\\\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003\n\nFUHDWHG\u0003WKH\u0003EURDGHU\u0003QDUUDWLYH WKDW\u0003WKH\u0003&RPSDQ\\\u0003ZDV\u0003VHOI-IXQGLQJ and did not need\n\nH[WHUQDO\u0003FDSLWDO\u0011\u0003\u0003+RZHYHU\u000f\u0003\u00b33ODLQWL\u0d75V\u00b6\u0003VXEMHFWLYH\u0003LQWHUSUHWDWLRQ\u0003RU\u0003RSLQLRQ\u0003\u0011\u0003\u0011\u0003\u0011\u0003FDQQRW\u0003\n\nVXSSRUW\u0003WKHLU\u0003FODLPV\u0011\u00b4 Davison v. Ventrus Biosciences, Inc., No. 13 Civ. 3119 (RMB),\n\n2014 WL 1805242, at *8 6\u0011'\u00111\u0011<\u0011\u00030D\\\u0003\u0018\u000f\u0003\u0015\u0013\u0014\u0017 \u0011\u0003\u0003:LWKRXW\u0003D\u0d76UPDWLYH\u0003VWDWHPHQWV\u0003IURP\u0003\n\nDQ\\\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003VHOI-IXQGLQJ DQG\u0003GLG\u0003QRW\u0003QHHG\u0003H[WHUQDO\u0003\n\nFDSLWDO\u000f\u00033ODLQWL\u0d75V\u0003IDFH\u0003DQ\u0003XSKLOO\u0003EDWWOH\u0003WR\u0003SURYH\u0003WKHLU\u0003FODLPV\u0011\n        a. Omissions\n        \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW WKH\\\u0003KDG\u0003QR\u0003GXW\\\u0003WR\u0003GLVFORVH\u00033URMHFW\u0003$WKHQD\u0003\n\nEHFDXVH\u0003LW\u0003ZDV\u0003DQ\u0003\u00b3XQFRQVXPPDWHG\u0003WUDQVDFWLRQ>@\u0011\u00b4\u0003\u0003'RF\u0011\u000380 at 23 n.8. 3ODLQWL\u0d75V\u0003DUJXH\u0003\nWKDW\u0003WKH\\\u0003GLG\u0003KDYH\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u00033URMHFW\u0003$WKHQD\u0003EHFDXVH\u0003LW\u0003ZDV\u0003D\u0003GHOLEHUDWH\u0003VWUDWHJLF\u0003\n\ninitiative LQWHQGHG\u0003WR\u0003\u00b3UDLVH\u0003FDSLWDO\u0003WKURXJK\u0003SULYDWL]DWLRQ\u0003RU\u0003DVVHW\u0003VDOHV.\u00b4 Doc. 83 at 22.\n\n3ODLQWL\u0d75V\u0003DVVHUW\u0003WKDW\u0003WKH\u0003GXW\\\u0003DURVH\u0003EHFDXVH\u0003)DUIHWFK\u0003DVVXUHG\u0003LQYHVWRUV\u0003RI\u0003LWV\u0003\u00b3\u00bfQDQFLDO\u0003\n\nVHOI-VX\u0d76FLHQF\\\u0003ZKLOH\u0003VHFUHWO\\\u0003SXUVXLQJ\u0003WKH\u0003RSSRVLWH\u0011\u00b4\u0003\u0003Id.\n\n        \u0e60HUH\u0003DUH\u0003WZR\u0003DFWLRQDEOH\u0003WKHRULHV\u0003XQGHU\u0003Section \u0014\u0013 E \u0003DQG\u00035XOH\u0003\u0014\u0013E-\u0018\u0003RI\u0003WKH\u0003\n\n([FKDQJH\u0003$FW\u001d\u0003 (1) DQ\u0003DFWXDO\u0003VWDWHPHQW\u0003WKDW\u0003LV\u0003\u00b3XQWUXH\u0003RXWULJKW\u000f\u00b4\u0003DQG\u0003 \u0015 D\u0003KDOI-WUXWK\u000f\u0003\n\nZKLFK\u0003LV\u0003D\u0003UHSUHVHQWDWLRQ\u0003WKDW\u0003VWDWHV\u0003WKH\u0003WUXWK\u0003RQO\\\u0003VR\u0003IDU\u0003DV\u0003LW\u0003JRHV\u000f\u0003ZKLOH\u0003RPLWWLQJ\u0003FULWLFDO\u0003\n\nTXDOLI\\LQJ\u0003LQIRUPDWLRQ\u0011 *LPSHO\u0003Y\u0011\u0003\u0b61H\u0003+DLQ\u0003&HOHVWLDO\u0003*URXS\u000f\u0003,QF\u0011\u000f\u0003\u0014\u0018\u0019\u0003)\u0011\u0017WK\u0003\u0014\u0015\u0014\u000f\u0003\u0014\u0016\u001b\u0003 \u0015G\u0003\n\n&LU\u0011\u0003\u0015\u0013\u0015\u0018 \u0011\u0003 $\u0003FODVVLF\u0003H[DPSOH\u0003RI a KDOI-WUXWK\u0003LV\u0003\u00b3WKH\u0003VHOOHU\u0003ZKR\u0003UHYHDOV\u0003WKDW\u0003WKHUH\u0003PD\\\u0003EH\u0003\n\n                                              17\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26       Page 18 of 39\n\n\n\n\nWZR\u0003QHZ\u0003URDGV\u0003QHDU\u0003D\u0003SURSHUW\\\u0003KH\u0003LV\u0003VHOOLQJ\u000f\u0003EXW\u0003IDLOV\u0003WR\u0003GLVFORVH\u0003WKDW\u0003D\u0003WKLUG\u0003SRWHQWLDO\u0003URDG\u0003\n\nPLJKW\u0003ELVHFW\u0003WKH\u0003SURSHUW\\\u0011\u00b4\u0003 Universal Health Services, Inc. v. United States, 579 U.S.\n\n176, 188\u201389 (2016). $QRWKHU\u0003H[DPSOH\u0003LV\u0003ZKHQ\u0003D\u0003FKLOG\u0003DWH\u0003D\u0003ZKROH\u0003FDNH\u0003EXW\u0003RQO\\\u0003WROG\u0003KLV\u0003\n\nSDUHQWV\u0003WKDW\u0003KH\u0003\u00b3KDG\u0003GHVVHUW\u0011\u00b4\u0003 Gimpel\u000f\u0003\u0014\u0018\u0019\u0003)\u0011\u0017WK\u0003DW\u0003\u0014\u0016\u001b\u0003Q\u0011\u0014\u0014 TXRWLQJ\u0003Macquarie\n\nInfrastructure Corp. v. Moab Partners, L. P., 601 U.S. 257, 264 (2024)).\n\n       $Q\u0003RPLVVLRQ\u0003LV\u0003DFWLRQDEOH\u0003RQO\\\u0003ZKHQ\u0003WKH FRPSDQ\\ LV VXEMHFW to a GXW\\ to GLVFORVH\n\nWKH\u0003RPLWWHG\u0003IDFWV\u0011 See In re Time Warner Inc. Securities Litigation, 9 F.3d 259, 267 (2d\n\n&LU\u0011\u0003\u0014\u001c\u001c\u0016 \u0011 \u0e60H\u0003PHUH RPLVVLRQ\u0003RI\u0003PDWHULDO\u0003LQIRUPDWLRQ\u000f\u0003ZLWKRXW\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u000f LV not\n\nDFWLRQDEOH\u0003XQGHU\u00036HFWLRQ\u0003\u0014\u0013 E \u0003DQG\u00035XOH\u0003\u0014\u0013E-5. Macquarie, 601 U.S. at \u0015\u0019\u0019\u0011\u0003\u0003%XW\u0003RQFH\u0003D\u0003\n\nFRPSDQ\\\u0003VSHDNV\u0003RQ\u0003D\u0003VXEMHFW\u0003PDWWHU\u000f\u0003LW\u0003DVVXPHV\u0003D\u0003GXW\\\u0003WR\u0003PDNH ERWK DFFXUDWH\u0003DQG\u0003\n\nFRPSOHWH VWDWHPHQWV\u000f VR\u0003WKH\\\u0003DUH QRW\u0003PLVOHDGLQJ\u0003ZKHQ\u0003FRQVLGHULQJ WKH\u0003FLUFXPVWDQFHV\u0003in\n\nZKLFK\u0003WKH\\\u0003ZHUH\u0003PDGH\u0011\u0003\u0003Gimpel\u000f\u0003\u0014\u0018\u0019\u0003)\u0011\u0017WK\u0003DW\u0003\u001438\u201339. +RZHYHU\u000f\u0003D\u0003FRPSDQ\\\u0003GRHV\u0003QRW\u0003\n\nKDYH\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u0003WKDW\u0003LW\u0003LV\u0003FRQWHPSODWLQJ\u0003D\u0003WUDQVDFWLRQ. In re Miniso Group Holding\n\nLimited Securities Litigation, No. 22 Civ. 9864 (ER), 2026 WL 879334, at *14 (S.D.N.Y.\n\n0DU\u0011\u0003\u0016\u0014\u000f\u0003\u0015\u0013\u0015\u0019 \u0003 FLWLQJ\u0003In re Centerline Holding Co. Securities Litigation\u000f\u0003\u0016\u001b\u0013\u0003)\u0011\u0003$SS\u00b6[\u0003\n\n\u001c\u0014\u000f\u0003\u001c\u0017\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0013 ) \u00bfQGLQJ\u0003QR\u0003D\u0d76UPDWLYH\u0003GXW\\\u0003WR\u0003GLVFORVH\u0003IXWXUH\u0003SODQV\u0003ZKHQ\u0003WKH\u0003\n\nRPLVVLRQ\u0003GLG\u0003QRW\u0003UHQGHU\u0003RWKHU\u0003D\u0d76UPDWLYH\u0003VWDWHPHQWV\u0003PLVOHDGLQJ \u001e see Actio v. IMCERA\n\nGroup, Inc.\u000f\u0003\u0017\u001a\u0003)\u0011\u0016G\u0003\u0017\u001a\u000f\u0003\u0018\u0016\u0003 \u0015G\u0003&LU\u0011\u0003\u0014\u001c\u001c\u0018 \u00bfQGLQJ\u0003QR\u0003GXW\\\u0003WR\u0003GLVFORVH\u0003QHJDWLYH\u0003\n\nFRQVHTXHQFHV\u0003IURP\u0003D\u0003IDLOHG\u0003IDFWRU\\\u0003LQVSHFWLRQ\u0003ZKHUH\u0003LW\u0003ZDV\u0003QRW\u0003D\u0003\u00b3IRUHJRQH\u0003FRQFOXVLRQ\u00b4\u0003\n\nWKDW\u0003FRQVHTXHQFHV\u0003ZRXOG\u0003PDWHULDOL]H). 6SHFL\u00bfFDOO\\\u000f\u0003D FRPSDQ\\\u0003LV\u0003QRW\u0003UHTXLUHG WR\u0003GLVFORVH\u0003\n\nWKDW\u0003LW\u0003\u00b3FRQVLGHUHG\u0003D\u0003WDNH-SULYDWH\u0003WUDQVDFWLRQ\u000f\u0003DPRQJ\u0003RWKHU\u0003SRWHQWLDO\u0003WUDQVDFWLRQV . . . \u0011\u00b4\n\n.UDIW\u0003Y\u0011\u0003\u0b61LUG\u0003&RDVW\u00030LVWUHDP, No. 19 Civ. 9398 (LJL), 2021 WL 860987, at *18\n\n6\u0011'\u00111\u0011<\u0011\u00030DU\u0011\u0003\u001b\u000f\u0003\u0015\u0013\u0015\u0014 .\n\n       )XUWKHUPRUH\u000f\u0003GLVFXVVLQJ\u0003D\u0003WRSLF\u0003\u00b3G>RHV@\u0003QRW\u0003WULJJHU\u0003D\u0003JHQHUDOL]HG\u0003GXW\\\u0003UHTXLULQJ\u0003\n\nGHIHQGDQWV\u0003WR\u0003GLVFORVH\u0003WKH\u0003HQWLUH\u0003FRUSXV\u0003RI\u0003WKHLU\u0003NQRZOHGJH\u0003UHJDUGLQJ\u0003>LW@.\u00b4 In re Morgan\n\nStanley Information Fund Securities Litigation\u000f\u0003\u0018\u001c\u0015\u0003)\u0011\u0016G\u0003\u0016\u0017\u001a\u000f\u0003\u0016\u0019\u0019\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0013 \u0011\n\n3ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003)DUIHWFK\u0003KDG\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u00033URMHFW\u0003$WKHQD\u0003EHFDXVH\u0003RI\u0003WKH\u0003\n\n                                              18\n\f    Case 1:23-cv-10982-ER                Document 86           Filed 09/29/26          Page 19 of 39\n\n\n\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003\u00b3GHFLVLRQ\u0003WR\u0003VSHDN\u0003DERXW\u0003WKH\u0003YHU\\\u0003VXEMHFW\u0003WKRVH\u0003GLVFXVVLRQV\u0003\n\nFRQWUDGLFWHG.\u00b4 Doc. 83 at 22. %XW\u000f\u0003DV\u0003GLVFXVVHG\u000f\u00033ODLQWL\u0d75V\u0003IDLO\u0003WR\u0003VKRZ\u0003KRZ\u00033URMHFW\u0003\n\n$WKHQD\u0003FRQWUDGLFWV\u0003WKH\u0003D\u0d76UPDWLYH\u0003VWDWHPHQWV\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003PDGH\u0011\u0003\u00033XUVXLQJ\u0003\n\nD\u0003WDNH-SULYDWH\u0003WUDQVDFWLRQ\u0003GRHV\u0003QRW\u0003QHFHVVDULO\\\u0003PHDQ\u0003D\u0003FRPSDQ\\\u0003LV\u0003LQ\u0003D\u0003OLTXLGLW\\\u0003FULVLV\u0011\n\n         3ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003ZKHQ\u0003D\u0003coPSDQ\\\u0003SXUVXHV D\u0003\u00b3IRUPDO\u0003VWUDWHJLF\u0003SURFHVV \u0011\u0003\u0011\u0003\u0011\u0003\u00b5LW\u0003\n\nPD\\\u0003FRPH\u0003XQGHU\u0003DQ\u0003REOLJDWLRQ\u0003WR\u0003GLVFORVH\u0003RWKHU\u0003DSSURDFKHV\u0003WR\u0003UHDFKLQJ\u0003WKH\u0003JRDO\u0011\u00b6\u00b4\u0003\u0003Id. at\n\n\u0015\u0014\u0003 TXRWLQJ\u0003In re Time Warner, 9 F.3d at 268 \u0011\u0003\u0003+RZHYHU\u000f\u0003In re Time Warner LV\u0003IDFWXDOO\\\u0003\n\nGLVWLQFW\u0003EHFDXVH\u0003WKH\u00036HFRQG\u0003&LUFXLW\u0003GHWHUPLQHG D\u0003FRPSDQ\\\u0003KDG\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u0003ZKHQ\u0003LW\u0003\n\n\u00b3HPEDUNHG\u0003RQ\u0003D\u0003KLJKO\\\u0003SXEOLFL]HG\u0003FDPSDLJQ\u00b4\u0003DERXW\u0003LWV\u0003EXVLQHVV\u0003VWUDWHJ\\\u0003DQG\u0003WKHQ\n\nSULYDWHO\\ SXUVXHG, and XOWLPDWHO\\\u0003HQDFWed, DQ\u0003HQWLUHO\\\u0003GL\u0d75HUHQW\u0003VWUDWHJ\\. In re Time\n\nWarner, 9 F.3d at 262. 6 3ODLQWL\u0d75V\u0003DUJXe WKDW\u00033URMHFW $WKHQD\u000f\u0003SDLUHG\u0003ZLWK\u0003WKH\u0003,QGLYLGXDO\u0003\n                           5F\n\n\n\n\n'HIHQGDQWV\u00b6\u0003VWDWHPHQWV\u000f LV\u0003DQDORJRXV\u0003WR\u0003WKH\u0003IDFWV\u0003RI\u0003In re Time Warner\u000f\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0014\u000f\u0003EXW\u0003\n\nLW\u0003LV\u0003XQFOHDU\u0003ZKDW\u0003EXVLQHVV\u0003VWUDWHJ\\ )DUIHWFK ZDV\u0003SXEOLFO\\\u0003SXUVXLQJ\u0003ZLWK\u0003ZKLFK 3URMHFW\u0003\n\n$WKHQD\u0003LV\u0003VXSSRVHGO\\\u0003LQFRQVLVWHQW\u0011\u0003\u00033ODLQWL\u0d75V\u00b6\u0003FRUH\u0003DOOHJDWLRQ\u0003LV\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV VWDWHG\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003\u00b3VHOI-IXQGLQJ\u0003DQG\u0003GLG\u0003QRW\u0003QHHG\u0003H[WHUQDO\u0003FDSLWDO\u00b4\u0003\n\nZKLOH\u0003VHFUHWO\\\u0003SXUVLQJ\u00033URMHFW\u0003$WKHQD, id. at 8\u000f\u0003QRW\u0003WKDW\u0003)DUIHWFK\u0003SXEOLFO\\\u0003FODLPHG\u0003WKDW\u0003it\n\nZDV\u0003SXUVXLQJ\u0003D\u0003VSHFL\u00bfF\u0003EXVLQHVV\u0003VWUDWHJ\\\u0003DQG\u0003WKHQ\u0003SULYDWHO\\\u0003HQJDJHG\u0003LQ\u0003D\u0003GL\u0d75HUHQW\u0003\n\nVWUDWHJ\\. $V\u0003VXFK\u000f\u00033ODLQWL\u0d75V\u0003IDLO\u0003WR\u0003DOOHJH\u0003WKDW\u0003)DUIHWFK\u0003KDG\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u00033URMHFW\u0003\n\n$WKHQD\u0011\u0003\u0003\n\n         :LWKRXW\u0003HVWDEOLVKLQJ\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u000f\u00033ODLQWL\u0d75V\u00b6 DUJXPHQWV\u0003DERXW\u0003ZK\\\u0003WKe\n\nRPLVVLRQ\u0003RI\u00033URMHFW\u0003$WKHQD\u0003ZRXOG\u0003EH\u0003PDWHULDO\u0003WR\u0003D\u0003UHDVRQDEOH\u0003LQYHVWRU\u000f\u0003id. at 23, DUH\n\nmoot. See Macquarie, 601 U.S. at 265 \u00b36LOHQFH\u000f\u0003DEVHQW\u0003D\u0003GXW\\\u0003WR\u0003GLVFORVH\u000f\u0003LV\u0003QRW\u0003\n\n\n\n6\n  In re Time Warner LV\u0003DOVR\u0003GLVWLQJXLVKDEOH\u0003EHFDXVH\u0003WKH\u0003FRXUW\u0003UHOLHG\u0003RQ\u0003Conley\u00b6V\u0003QRZ\u0003RXWGDWHG\u0003VWDQGDUG\u000f\u0003\nKROGLQJ\u0003WKDW\u0003D FRXUW\u0003VKRXOG\u0003\u00b3SHUPLW\u0003D\u0003FRPSODLQW\u0003WR\u0003VXUYLYH\u0003GLVPLVVDO\u0003XQOHVV . . . \u00b5LW\u0003DSSHDUV\u0003EH\\RQG\u0003GRXEW\u0003\nWKDW\u0003WKH\u0003SODLQWL\u0d75\u0003FDQ\u0003SURYH\u0003QR\u0003VHW\u0003RI\u0003IDFWV\u0003LQ\u0003VXSSRUW\u0003RI\u0003KLV\u0003FODLP\u0003ZKLFK\u0003ZRXOG\u0003HQWLWOH\u0003KLP\u0003WR\u0003UHOLHI\u0011\u00b6\u00b4\u0003\u0003In re\nTime Warner\u000f\u0003\u001c\u0003)\u0011\u0016G\u0003DW\u0003\u0015\u0019\u0016\u0003 TXRWLQJ Conley v. Gibson, 355 U.S. 41, 45\u201346 (1957)). BXW\u0003WKH\u00036XSUHPH\u0003&RXUW\u0003\nKDV\u0003FODUL\u00bfHG\u0003WKDW\u0003GLVWULFW\u0003FRXUWV VKRXOG\u0003GLVPLVV\u0003D\u0003FRPSODLQW\u0003LI\u0003LW\u0003LV\u0003QRW\u0003\u00b3SODXVLEOH\u0003RQ\u0003LWV\u0003IDFH.\u00b4 Twombly, 550\nU.S. at 570.\n\n                                                     19\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26      Page 20 of 39\n\n\n\n\nPLVOHDGLQJ\u0003XQGHU\u00035XOH\u0003\u0014\u0013E\u2013\u0018\u0011\u00b4\u0003 TXRWLQJ\u0003Basic Inc. v. Levinson, 485 U.S. 224, 239 n.17\n\n(1988))). 3ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003VX\u0d76FLHQWO\\\u0003DOOHJH\u0003DQ\u0003DFWLRQDEOH\u0003RPLVVLRQ\u0003WKHRU\\\u0011\u0003\u0003\n       b. Non-Actionable Forward-Looking Statements\n       \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003WKH\u0003VWDWHPHQWV\u00033ODLQWL\u0d75V\u0003SRLQW\u0003WR\u0003DUH\u0003\n\n\u00b3TXLQWHVVHQWLDO\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV,\u00b4 ZKLFK DUH QRW\u0003DFWLRQDEOH\u0003EHFDXVH\u0003WKH\\\u0003IDOO\u0003\n\nXQGHU\u0003WKH\u000336/5$\u00b6V VDIH\u0003KDUERU SURYLVLRQV. Doc. 80 at 17\u201318. 7R\u0003VXSSRUW\u0003WKLV\u0003SRLQW\u000f\u0003WKH\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003HDFK\u0003RI WKH\u0003VWDWHPHQWV\u0003ZHUH\u0003LGHQWL\u00bfHG\u0003DV\u0003IRUZDUG-\n\nORRNLQJ, LQFOXGHG\u0003PHDQLQJIXO\u0003FDXWLRQDU\\\u0003ODQJXDJH\u000f\u0003DQG\u0003QRWHG\u0003ULVN\u0003IDFWRUV\u0003WKDW\u0003FRXOG\u0003DOWHU\u0003\n\nWKH\u0003SURMHFWLRQV. Id. at 18\u201320. PlaLQWL\u0d75V\u0003FRQWHQG\u0003WKDW\u0003WKH\u0003PLVUHSUHVHQWDWLRQV\u0003DQG\u0003\n\nRPLVVLRQV\u0003GR\u0003QRW\u0003IDOO\u0003XQGHU\u0003WKH\u000336/5$\u00b6V VDIH\u0003KDUERU\u0003SURYLVLRQV EHFDXVH\u0003(1) WKH\\\u0003\n\nGLVFXVVHG\u0003FXUUHQW\u0003FRQGLWLRQV\u000f\u0003and (2) WKH\u0003FDXWLRQDU\\\u0003ODQJXDJH\u0003ZDUQHG\u0003RI\u0003WKH\u0003SRVVLEOH\u0003\n\nQHHG\u0003IRU\u0003IXWXUH\u0003\u00bfQDQFLQJ\u000f\u0003ZKLOH\u00033URMHFW\u0003$WKHQD\u0003UHYHDOV\u0003WKDW\u0003)DUIHWFK ZDV\u0003DFWLYHO\\\u0003\n\nSXUVXLQJ\u0003\u00bfQDQFLQJ\u0003LQ\u0003WKH\u0003SUHVHQW. Doc. 83 at 16\u201318.\n\n       \u0e60H\u000336/5$\u00b6V\u0003VDIH\u0003KDUERU\u0003SURYLVLRQ\u0003SURYLGHV\u0003WKDW\u0003QR\u0003OLDELOLW\\\u0003DWWDFKHV\u0003WR\u0003a\n\nIRUZDUG-ORRNLQJ\u0003VWDWHPHQW\u0003LI\u0003LW\u0003LV (1) \u00b3LGHQWL\u00bfHG\u0003DV\u0003D\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQW\u000f\u0003DQG\u0003LV\u0003\n\nDFFRPSDQLHG\u0003E\\\u0003PHDQLQJIXO\u0003FDXWLRQDU\\\u0003VWDWHPHQWV\u000f\u00b4\u0003 \u0015 \u00b3LPPDWHULDO\u000f\u00b4\u0003RU\u0003 \u0016 \u0003 \u00b3WKH\u0003\n\nSODLQWL\u0d75\u0003IDLOV\u0003WR\u0003SURYH\u0003WKDW\u0003>LW@\u0003\u0011\u0003\u0011\u0003\u0011\u0003ZDV\u0003PDGH\u0003ZLWK\u0003DFWXDO\u0003NQRZOHGJH\u0003E\\\u0003WKDW\u0003SHUVRQ\u0003WKDW\u0003\n\nWKH\u0003VWDWHPHQW\u0003ZDV\u0003IDOVH\u0003RU\u0003PLVOHDGLQJ.\u00b4\u0003\u0003\u0014\u0018\u00038\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bX\u20135(c)(1). \u0e60H\u00036HFRQG\u0003&LUFXLW\u0003KDV\u0003\nKHOG\u0003WKDW\u0003VWDWHPHQWV\u0003DUH\u0003IRUZDUG-ORRNLQJ\u0003LI\u0003WKH\u0003VSHDNHU\u0003XVHV\u0003OLQJXLVWLF\u0003FXHV\u0003WR\u0003VXJJHVW\u0003WKH\u0003\n\nVWDWHPHQW\u0003LV\u0003IRUZDUG-ORRNLQJ\u0003ZKHQ WKH\\\u0003DUH DFFRPSDQLHG\u0003E\\\u0003DQ\u0003H[SODQDWLRQ\u0003WKDW\u0003WKH\u0003\n\nFRPSDQ\\\u0003LQWHQGV\u0003WR\u0003PDNH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0011\u0003\u0003Slayton v. American Express Co.,\n\n604 F.3d 758, 769 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0013 . )RU\u0003H[DPSOH\u000f\u0003VWDWHPHQWV\u0003DERXW\u0003D\u0003FRPSDQ\\\u00b6V\u0003XSFRPLQJ\u0003\n\nJRDOV\u0003DUH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003SURWHFWHG\u0003E\\\u0003WKH\u000336/5$\u000f\u0003see In re Adient plc\n\nSecurities Litigation\u000f\u00031R\u0011\u0003\u0014\u001b\u0003&LY\u0011\u0003\u001c\u0014\u0014\u0019\u0003 5$ \u000f\u0003\u0015\u0013\u0015\u0013\u0003:/\u0003\u0014\u0019\u0017\u0017\u0013\u0014\u001b\u000f\u0003DW\u0003 \u0014\u001b\u0003 6\u0011'\u00111\u0011<\u0011\u0003$SU\u0011\u0003\u0015\u000f\u0003\n\n\u0015\u0013\u0015\u0013 \u000f\u0003DV\u0003DUH\u0003VWDWHPHQWV\u0003DERXW\u0003D\u0003FRPSDQ\\\u00b6V\u0003H[SHFWHG\u0003\u00b3DELOLW\\\u0003WR\u0003UDLVH\u0003FDVK\u0003DQG\u0003PDLQWDLQ\u0003D\u0003\n\nFDVK\u0003EDODQFH\u0003VX\u0d76FLHQW\u0003WR\u0003IXQG\u0003FRQWLQXHG\u0003LQYHVWPHQWV\u000f\u00b4\u0003Jones v. Perez\u000f\u0003\u0018\u0018\u0013\u0003)\u0011\u0003$SS\u00b6[\u0003\u0015\u0017\u000f\u0003\n\n\u0015\u001a\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0016 \u0011\n\n                                             20\n\f    Case 1:23-cv-10982-ER              Document 86          Filed 09/29/26        Page 21 of 39\n\n\n\n\n        \u00b37R\u0003DYDLO\u0003WKHPVHOYHV\u0003RI\u0003VDIH\u0003KDUERU\u0003SURWHFWLRQ\u0003XQGHU\u0003WKH\u0003PHDQLQJIXO\u0003FDXWLRQDU\\\u0003\n\nODQJXDJH\u0003SURQJ\u000f\u0003GHIHQGDQWV\u0003PXVW\u0003GHPRQVWUDWH\u0003WKDW\u0003WKHLU\u0003FDXWLRQDU\\\u0003ODQJXDJH\u0003ZDV\u0003QRW\u0003\n\nERLOHUSODWH\u0003DQG\u0003FRQYH\\HG\u0003VXEVWDQWLYH\u0003LQIRUPDWLRQ\u0011\u00b4 Slayton, 604 F.3d at 772; see Villare\n\nv. Abiomed, Inc., No. 19 Civ. 7319 (ER), \u0015\u0013\u0015\u0014\u0003:/\u0003\u0017\u0016\u0014\u0014\u001a\u0017\u001c\u000f\u0003DW\u0003 \u0014\u001b\u0003 6\u0011'\u00111\u0011<\u0011\u00036HS\u0011\u0003\u0015\u0014\u000f\u0003\n\n2021) (H[SODLQLQJ\u0003WKDW\u0003\u00b3IRUZDUG-ORRNLQJ\u00b4\u0003VWDWHPHQWV DUH QRW\u0003DFWLRQDEOH\u0003ZKHUH\u0003\n\n\u00b3FDXWLRQDU\\\u0003ODQJXDJH\u0003ZDUQ>HG@\u0003RI\u0003WKH\u0003YHU\\\u0003ULVNV\u0003WKDW\u0003>SODLQWL\u0d75@\u0003DOOHJHV\u0003WKDW\u0003[d]HIHQGDQWV\u0003\n\nIDLOHG\u0003WR\u0003GLVFORVH\u00b4 . ,I SODLQWL\u0d75V DUJXH\u0003WKDW\u0003WKH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQW\u0003ZDV\u0003PDGH\u0003ZLWK\u0003\n\nNQRZOHGJH\u0003RI\u0003LWV\u0003IDOVLW\\\u000f\u0003SXUVXDQW\u0003WR\u0003WKH\u0003WKLUG\u0003SURQJ RI\u0003WKH\u0003VWDWXWH, WKH\\\u0003\u00b3PXVW\u0003VWDWH\u0003ZLWK\u0003\n\nSDUWLFXODULW\\\u0003ERWK\u0003WKH\u0003IDFWV\u0003FRQVWLWXWLQJ\u0003WKH\u0003DOOHJHG\u0003YLRODWLRQ\u000f\u0003DQG\u0003WKH\u0003IDFWV\u0003HYLGHQFLQJ\u0003\n\nVFLHQWHU\u000f\u0003i.e.\u000f\u0003WKH\u0003GHIHQGDQW\u00b6V\u0003LQWHQWLRQ\u0003WR\u0003GHFHLYH\u000f\u0003PDQLSXODWH\u000f\u0003RU\u0003GHIUDXG\u0011\u00b4 Slayton, 604\n\n)\u0011\u0016G\u0003DW\u0003\u001a\u001a\u0016\u0003 LQWHUQDO\u0003TXRWDWLRQV\u0003DQG\u0003citationV omitted). 1RW\u0003RQO\\\u0003PXVW\u0003SODLQWL\u0d75V \u00b3SOHDG\u0003\n\nIDFWV\u0003WR\u0003VXSSRUW\u0003D\u0003strong LQIHUHQFH\u0003RI\u0003VFLHQWHU\u000f\u00b4\u0003ZKLFK\u0003LV\u0003\u00b3FRJHQW\u0003DQG\u0003DW\u0003OHDVW DV\u0003\n\nFRPSHOOLQJ\u0003DV\u0003DQ\\\u0003RSSRVLQJ\u0003LQIHUHQFH\u0003RI\u0003QRQIUDXGXOHQW\u0003LQWHQW\u000f\u00b4\u0003EXW\u0003\u00b3WKH\u0003VFLHQWHU\u0003\n\nUHTXLUHPHQW\u0003IRU\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003LV\u0003VWULFWHU\u0003WKDQ\u0003IRU\u0003VWDWHPHQWV RI\u0003FXUUHQW\u0003IDFW\u00b4\u0003\n\nEHFDXVH\u0003LW\u0003FDQQRW\u0003UHO\\\u0003RQ\u0003UHFNOHVVQHVV\u0003EXW\u0003RQO\\\u0003\u00b3NQRZLQJ\u0003IDOVLW\\\u0011\u00b4\u0003\u0003Id. LQWHUQDO\u0003TXRWDWLRQV\n\nDQG\u0003FLWDWLRQV\u0003omitted).\n\n        3ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW\u0003WKH\u0003VWDWHPHQWV\u0003DUH\u0003QRW\u0003IRUZDUG-ORRNLQJ, SUHFOXGLQJ\u0003WKH\u0003\n\n36/5$\u00b6V\u0003VDIH\u0003KDUERU\u0003SURYLVLRQ\u0003DOWRJHWKHU, EHFDXVH\u0003WKH\\\u0003DOOHJH\u0003WKDW\u0003WKH\u0003\u00b3DVVXUDQFHV RI\u0003\n\n)DUIHWFK\u00b6V\u0003VX\u0d76FLHQW\u0003OLTXLGLW\\\u0003DQG\u0003VHOI-IXQGLQJ\u0003FRPPXQLFDWH\u0003FXUUHQW\u0003FRQGLWLRQV\u000f\u0003QRW\u0003IXWXUH\u0003\n\nH[SHFWDWLRQV\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0014\u0019\u0011 7 3ODLQWL\u0d75V\u000f\u0003ZLWKRXW\u0003SRLQWLQJ\u0003WR\u0003VSHFL\u00bfF\u0003VWDWHPHQWV\u000f\u0003FLWH\u0003\n                                  6F\n\n\n\n\nSDUDJUDSKV\u000396\u2013\u0014\u0014\u0013\u0003RI\u0003WKH\u00036$&\u0003WR\u0003VXSSRUW\u0003WKLV\u0003SURSRVLWLRQ. Id. 0DQ\\\u0003RI\u0003WKH\u0003VWDWHPHQWV\u0003LQ\u0003\n\nWKLV\u0003VHFWLRQ\u0003FRPH\u0003IURP\u0003)DUIHWFK\u00b6V\u0003&DSLWDO\u00030DUNHWV\u0003'D\\\u0011\u0003\u0003\u0088\u0088 97\u2013103. 2Q\u0003WKDW\u0003RFFDVLRQ,\n\n1HYHV\u0003UHSUHVHQWHG\u0003WKDW\u0003KH\u0003H[SHFWHG\u0003)DUIHWFK\u0003\u00b3WR\u0003FRQWLQXH\u0003RQ\u0003D\u0003SDWK\u0003RI\u0003JURZWK\u000f\u0003SUR\u00bfWDEOH\u0003\n\nJURZWK\u0003DQG\u0003FDVK\u0003\u00c0RZ\u0003JHQHUDWLRQ\u0011\u00b4\u0003\u0003\u0088\u0003\u001c\u001a\u0011\u0003\u0003-RUGDQ\u0003VWDWHG\u001d\u0003\u0003\u00b3>:@H\u0003KDYH\u0003FOHDU\u0003YLVLELOLW\\\u0003WKDW\u0003\n\n7\n  3ODLQWL\u0d75V\u0003DOVR\u0003QRWH\u0003WKDW\u0003D\u0003VWDWHPHQW\u0003PD\\\u0003FRQWDLQ\u0003ERWK\u0003IRUZDUG-ORRNLQJ\u0003DQG\u0003QRQ-IRUZDUG-ORRNLQJ\u0003\nVWDWHPHQWV\u000f\u0003ZKLFK\u0003DUH\u0003VHYHUDEOH\u0003IRU\u0003WKLV\u0003DQDO\\VLV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0014\u0019 TXRWLQJ\u0003Iowa Public Employees\u2019\nRetirement System v. MF Global, Limited, 620 F.3d 137, 144 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0013 )\u0011\u0003\u0003+RZHYHU\u000f\u00033ODLQWL\u0d75V\u0003GR\u0003QRW\u0003\nSRLQW\u0003WR\u0003DQ\\\u0003VWDWHPHQW\u0003WKDW\u0003FDQ\u0003RU\u0003VKRXOG\u0003EH\u0003VHYHUHG\u0011\u0003\u0003Id.\n\n                                                   21\n\f   Case 1:23-cv-10982-ER           Document 86         Filed 09/29/26       Page 22 of 39\n\n\n\n\nZH\u0003ZLOO\u0003GHOLYHU\u0003QRW\u0003RQO\\\u0003JURZWK\u000f\u0003EXW\u0003VXVWDLQHG\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0003\n\nPRYLQJ\u0003IRUZDUG\u0011\u00b4\u0003\u0003\u0088\u0003\u0014\u0013\u0014\u0011\u0003\u00033ODLQWL\u0d75V\u0003DOOHJH\u0003WKDW\u0003WKH\u0003&DSLWDO\u00030DUNHWV\u0003'D\\\u0003event FUHDWHG\u0003WKH\u0003\n\nIDOVH\u0003LPSUHVVLRQ\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003FRPPLWWHG\u0003WR\u0003DFKLHYLQJ\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0003\n\nWKURXJK\u0003RUJDQLF\u0003JURZWK\u0003RI\u0003H[LVWLQJ\u0003LQYHVWPHQWV\u0011\u0003\u0003\u0088\u0003\u0014\u0013\u0016\u0011\u0003\u0003'HVSLWH\u0003WKLV\u0003DOOHJDWLRQ, 3ODLQWL\u0d75V\u0003\n\nIDLO\u0003WR\u0003DUJXH ZK\\\u0003WKHVH\u0003VWDWHPHQWV\u0003DUH\u0003QRW\u0003IRUZDUG-ORRNLQJ. $OVR\u000f\u0003DW\u0003WKH\u0003VWDUW\u0003RI\u0003&DSLWDO\u0003\n\n0DUNHWV\u0003'D\\\u000f\u0003WKH\u0003LQWURGXFWRU\\\u0003VSHDNHU\u0003VWDWHG\u001d\n           :H\u0003ZLOO\u0003DOVR\u0003EH\u0003PDNLQJ\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003WRGD\\\u0011\u0003 $FWXDO\u0003\n           UHVXOWV\u0003 FRXOG\u0003 GL\u0d75HU\u0003 PDWHULDOO\\\u0003 IURP\u0003 WKRVH\u0003 IRUZDUG[-ORRNLQJ@\n           VWDWHPHQWV\u000f\u0003 DQG\u0003 ZH\u0003 XQGHUWDNH\u0003 QR\u0003 REOLJDWLRQ\u0003 WR\u0003 SXEOLFO\\\u0003 XSGDWH\u0003 RU\u0003\n           UHYLVH\u0003WKHP\u0011 )RU\u0003D\u0003GLVFXVVLRQ\u0003RI\u0003VRPH\u0003RI\u0003WKH\u0003IDFWRUV\u0003WKDW\u0003FRXOG\u0003FDXVH\u0003\n           DFWXDO\u0003UHVXOWV\u0003WR\u0003GL\u0d75HU\u0003IURP\u0003WKHVH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u000f\u0003SOHDVH\u0003\n           UHIHU\u0003 WR\u0003 RXU\u0003 6(&\u0003 \u00bfOLQJV\u0011 :H\u0003 ZLOO\u0003 DOVR\u0003 UHIHU\u0003 WR\u0003 FHUWDLQ\u0003 QRQ-IFRS\n           \u00bfQDQFLDO\u0003PHDVXUHV\u0011 <RX\u0003FDQ\u0003\u00bfQG\u0003UHFRQFLOLDWLRQV\u0003RI\u0003WKHVH\u0003PHDVXUHV\u0003\n           WR\u0003WKH\u0003PRVW\u0003GLUHFWO\\\u0003FRPSDUDEOH\u0003,)56\u0003\u00bfQDQFLDO\u0003PHDVXUHV\u0003LQ\u0003WKH\u0003VOLGH\u0003\n           SUHVHQWDWLRQV\u000f\u0003ZKLFK\u0003ZLOO\u0003EH\u0003DYDLODEOH\u0003DW\u0003IDUIHWFKLQYHVWRUV\u0011FRP\u0011\nDoc. 81-8 at 5. \u0e60LV\u0003VWDWHPHQW\u0003DORQJ\u0003ZLWK\u0003WKH\u0003OLQJXLVWLF\u0003FXHV\u000f\u0003VXFK\u0003DV\u0003\u00b3PRYLQJ\u0003IRUZDUG\u000f\u00b4\u0003\n\n\u0088\u0003\u0014\u0013\u0014\u000f\u0003DQG\u0003\u00b3FRQWLQXH\u0003RQ\u0003D\u0003SDWK\u000f\u00b4\u0003\u0088 \u001c\u001a\u000f\u0003SURYLGH\u0003VX\u0d76FLHQW\u0003JURXQGV\u0003WR\u0003FRQFOXGH\u0003WKDW\u0003WKHVH\u0003\n\nZHUH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003DFFRPSDQLHG\u0003E\\\u0003PHDQLQJIXO\u0003FDXWLRQDU\\\u0003lDQJXDJH. See\n\nIn re BHP Billiton Limited Securities Litigation\u000f\u0003\u0015\u001a\u0019\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0019\u0018, 84 (S.D.N.Y. 2017)\n\n(GHWHUPLQLQJ\u0003WKDW\u0003\u00b3D\u0003GLVFODLPHU\u0003LGHQWLI\\LQJ\u0003WKH\u0003W\\SH\u0003RI\u0003VWDWHPHQW\u0003>WKH\u0003GHIHQGDQW] PDGH\u0003DV\u0003\n\nIRUZDUG-ORRNLQJ\u0003DQG\u0003ZDUQLQJ\u0003LQYHVWRUV\u0003WKDW\u0003DFWXDO\u0003UHVXOWV\u0003FRXOG\u0003GL\u0d75HU\u0003IURP\u0003SURMHFWHG\u0003\n\nUHVXOWV\u00b4\u0003ZHUH\u0003\u00b3VX\u0d76FLHQWO\\\u0003PHDQLQJIXO\u00b4\u0003FDXWLRQDU\\\u0003VWDWHPHQWV \u0011\n\n       3ODLQWL\u0d75V\u0003DOVR\u0003DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003PDGH PDWHULDOO\\\u0003IDOVH\u000f\u0003QRQ-\n\nIRUZDUG-ORRNLQJ VWDWHPHQWV\u0003GXULQJ\u0003DQ\u0003LQYHVWRU\u0003FDOO\u0003GLVFXVVLQJ 4\u0017\u0003\u0015\u0013\u0015\u0015\u0011\u0003\u0003\u0088\u0088\u0003\u0014\u0013\u0017\u2013105.\n\n'XULQJ\u0003WKLV\u0003FDOO\u000f\u00031HYHV\u0003VWDWHG WKDW\u0003)DUIHWFK\u0003ZDV\u0003\u00b3DQ\u0003HYHQ\u0003VWURQJHU\u0003DQG\u0003PRUH\u0003H\u0d76FLHQW\u0003\n\nRUJDQL]DWLRQ\u00b4\u0003DQG\u0003WKDW\u0003KH\u0003ZDV\u0003\u00b3PRUH\u0003FRQ\u00bfGHQW\u0003WKDQ\u0003HYHU\u00b4\u0003DERXW\u0003WKH\u0003&RPSDQ\\\u00b6V\u0003\n\n\u00b3SURVSHFWV\u0003WR\u0003GHOLYHU\u0003JURZWK\u000f\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0003LQ\u0003\u0015\u0013\u0015\u0016\u0003DQG\u0003\n\nEH\\RQG\u0011\u00b4 \u0088\u0003\u0014\u0013\u0017\u0011\u0003 3KDLU\u0003VWDWHG: \u00b3\u0e60H\u0003ZRUN\u0003ZH\u00b6YH\u0003GRQH\u0003WKURXJKRXW\u0003\u0015\u0013\u0015\u0015\u0003DQG\u0003WKH\u0003\\HDUV\u0003\n\nSULRU\u000f\u0003LQYHVWLQJ\u0003LQ\u0003RXU\u0003FXVWRPHU\u0003DQG\u0003LQ\u0003RXU\u0003SDUWQHUVKLSV\u0003ZLWK\u0003EUDQGV\u0003DQG\u0003ERXWLTXHV\u0003SXWV\u0003XV\u0003\n\nLQ\u0003D\u0003VWURQJ\u0003SRVLWLRQ\u0003WR\u0003GHOLYHU\u0003RQ\u0003RXU\u0003\u0015\u0013\u0015\u0016\u0003JRDOV\u0011\u00b4\u0003\u0003\u0088\u0003\u001405. $W\u0003WKH\u0003RXWVHW\u0003RI\u0003WKLV\u0003FDOO\u000f\u0003\n\n\n                                              22\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26      Page 23 of 39\n\n\n\n\n)DUIHWFK\u0003SURYLGHG\u0003D\u0003VWDWHPHQW\u0003WKDW\u0003LV\u0003VXEVWDQWLDOO\\\u0003WKH\u0003VDPH\u0003DV\u0003WKH\u0003RQH\u0003made on &DSLWDO\u0003\n\n0DUNHWV\u0003'D\\\u000f\u0003FDXWLRQLQJ\u0003WKDW\u0003VRPH\u0003RI\u0003WKH\u0003VWDWHPHQWV\u0003ZHUH IRUZDUG-ORRNLQJ\u0011\u0003\u0003Doc. 81-10\n\nat 5 (\u00b3%HIRUH\u0003ZH\u0003EHJLQ\u000f\u0003ZH\u0003ZRXOG\u0003OLNH\u0003WR\u0003UHPLQG\u0003\\RX\u0003WKDW\u0003RXU\u0003GLVFXVVLRQV\u0003WRGD\\\u0003ZLOO\u0003\n\nLQFOXGH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0011\u0003 $FWXDO\u0003UHVXOWV\u0003FRXOG\u0003GL\u0d75HU\u0003PDWHULDOO\\\u0003IURP\u0003WKRVH\u0003\n\nLQGLFDWHG\u0003LQ\u0003WKH\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u000f\u0003DQG\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003PDGH\u0003WRGD\\\u0003\n\nVSHDN\u0003RQO\\\u0003WR\u0003RXU\u0003H[SHFWDWLRQV\u0003DV\u0003RI\u0003WRGD\\\u0011\u00b4 .\n\n       $GGLWLRQDOO\\\u000f\u00033ODLQWL\u0d75V SRLQW\u0003WR WKH )<\u0003\u0015\u0013\u0015\u0015\u0003)RUP\u0003\u0015\u0013-)\u0003\u00bfQDQFLDO\u0003UHSRUW\u000f\u0003LQ\u0003ZKLFK\u0003\n\n)DUIHWFK\u0003VWDWHG\u000f\u0003\u00b3:H\u0003EHOLHYH\u0003WKDW\u0003RXU\u0003VRXUFHV\u0003RI\u0003OLTXLGLW\\\u0003DQG\u0003FDSLWDO\u0003ZLOO\u0003EH\u0003VX\u0d76FLHQW\u0003WR\u0003\n\nPHHW\u0003RXU\u0003EXVLQHVV\u0003QHHGV\u0003IRU\u0003DW\u0003OHDVW\u0003WKH\u0003QH[W\u0003WZHOYH\u0003PRQWKV\u0011\u0003 :H\u0003DOVR\u0003H[SHFW\u0003WKHVH\u0003\n\nVRXUFHV\u0003RI\u0003OLTXLGLW\\\u0003ZLOO\u0003EH\u0003VX\u0d76FLHQW\u0003WR\u0003IXQG\u0003RXU\u0003ORQJ-WHUP\u0003FRQWUDFWXDO\u0003REOLJDWLRQV\u0003DQG\u0003\n\nFDSLWDO\u0003QHHGV\u0011\u00b4 \u0088\u0003\u0014\u0013\u0019. /LNHZLVH\u000f\u0003WKLV\u0003VWDWHPHQW\u0003ZDV\u0003SUHFHGHG\u0003E\\\u0003D\u0003GHWDLOHG\u0003FDXWLRQDU\\\u0003\n\nVWDWHPHQW\u000f\u0003LGHQWLI\\LQJ\u0003WKH\u0003UHPDUNV\u0003DV\u0003IRUZDUG-ORRNLQJ\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0014-12 at 11 \u00b3\u0e60LV\u0003$QQXDO\u0003\n\n5HSRUW\u0003FRQWDLQV\u0003VWDWHPHQWV\u0003WKDW\u0003FRQVWLWXWH\u0003\u00b5IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u00b6\u0003ZLWKLQ\u0003WKH\u0003\n\nPHDQLQJ\u0003RI\u0003WKH\u0003>36/5$@\u0011\u0003 :H\u0003LQWHQG\u0003VXFK\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003WR\u0003EH\u0003FRYHUHG\u0003E\\\u0003\n\nWKH\u0003VDIH\u0003KDUERU\u0003SURYLVLRQV . . . . \u0e60HVH\u0003VWDWHPHQWV\u0003DUH\u0003QHLWKHU\u0003SURPLVHV\u0003QRU\u0003JXDUDQWHHV\u000f\u0003EXW\u0003\n\nLQYROYH\u0003NQRZQ\u0003DQG\u0003XQNQRZQ\u0003ULVNV . . . WKDW\u0003PD\\\u0003FDXVH\u0003RXU\u0003DFWXDO\u0003UHVXOWV\u000f\u0003SHUIRUPDQFH\u0003RU\u0003\n\nDFKLHYHPHQWV\u0003WR\u0003EH\u0003PDWHULDOO\\\u0003GL\u0d75HUHQW . . . .\u00b4 .\n\n       3ODLQWL\u0d75V\u0003IXUWKHU\u0003DOOHJH\u0003WKDW\u0003RQ\u00030D\\\u0003\u0014\u001b\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003in WKH\u00034\u0014\u0003\u0015\u0013\u0015\u0016\u0003(DUQLQJV\u00035HOHDVH\u000f\u0003\n\n-RUGDQ\u0003VWDWHG\u0003WKDW\u0003WKH\u0003&RPSDQ\\\u0003\u00b3GHOLYHUHG\u0003ZKDW\u0003>LW@\u0003VHW\u0003RXW\u0003WR\u0003DFKLHYH . . . . [IW\u0003KDV@\n\nVXFFHVVIXOO\\\u0003QDYLJDWHG\u0003WKURXJK\u0003XQSUHFHGHQWHG\u0003PDFUR\u0003FKDOOHQJHV\u000f\u0003DQG\u0003WKURXJK\u0003FRQWLQXHG\u0003\n\nIRFXVHG\u0003H[HFXWLRQ\u000f\u0003[it] UHPDLQ>V@ RQ\u0003WUDFN\u0003WR\u0003GHOLYHU\u0003D\u0003\\HDU\u0003RI\u0003OX[XU\\\u0003PDUNHW-EHDWLQJ\u0003\n\nJURZWK\u000f\u0003D\u0003UHWXUQ\u0003WR\u0003SUR\u00bfWDELOLW\\\u0003DQG\u0003SRVLWLYH\u0003IUHH\u0003FDVK\u0003\u00c0RZ\u0011\u00b4 \u0088\u0003\u0014\u0013\u001a\u0011\u0003\u00032QFH\u0003DJDLQ\u000f\u0003WKLV\u0003\n\nRHOHDVH ZDV\u0003DFFRPSDQLHG\u0003E\\\u0003DQ\u0003H[WHQVLYH\u0003FDXWLRQDU\\\u0003VWDWHPHQW\u0003LGHQWLI\\LQJ\u0003VRPH\u0003RI\u0003WKH\u0003\n\nODQJXDJH\u0003DV\u0003IRUZDUG-ORRNLQJ\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0014-16 at 18 \u00b3\u0e60LV\u0003UHOHDVH\u0003FRQWDLQV\u0003IRUZDUG-ORRNLQJ\u0003\n\nVWDWHPHQWV\u0003ZLWKLQ\u0003WKH\u0003PHDQLQJ\u0003RI\u0003WKH [PSLRA]. . . . \u0e60HVH\u0003VWDWHPHQWV\u0003DUH\u0003QHLWKHU\u0003\n\nSURPLVHV\u0003QRU\u0003JXDUDQWHHV\u000f\u0003EXW\u0003LQYROYH\u0003NQRZQ\u0003DQG\u0003XQNQRZQ\u0003ULVNV\u000f\u0003XQFHUWDLQtiHV\u0003DQG\u0003RWKHU\u0003\n\nLPSRUWDQW\u0003IDFWRUV\u0003WKDW\u0003PD\\\u0003FDXVH\u0003DFWXDO\u0003UHVXOWV . . . WR\u0003EH\u0003PDWHULDOO\\\u0003GL\u0d75HUHQW\u0003IURP\u0003DQ\\\u0003\n\n                                              23\n\f   Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 24 of 39\n\n\n\n\nIXWXUH\u0003UHVXOWV\u000f\u0003SHUIRUPDQFH\u0003RU\u0003DFKLHYHPHQWV\u0003H[SUHVVHG\u0003RU\u0003LPSOLHG\u0003E\\\u0003WKH\u0003IRUZDUG-ORRNLQJ\u0003\n\nVWDWHPHQWV . . . .\u00b4). )RU\u0003WKH\u0003VDPH\u0003UHDVRQV\u0003DV\u0003DERYH\u000f\u0003WKHVH\u0003VWDWHPHQWV\u0003VDWLVI\\\u0003WKH\u0003\u00bfUVW\u0003SURQJ\u0003\n\nRI\u0003WKH\u000336/5$\u00b6V\u0003VDIH\u0003KDUERU\u0003SURYLVLRQ\u000f\u0003SURWHFWLQJ\u0003WKH IRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003WKDW\u0003DUH\u0003\n\n\u00b3LGHQWL\u00bfHG\u0003DV\u0003D\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQW\u000f\u0003DQG\u0003>DUH@\u0003DFFRPSDQLHG\u0003E\\\u0003PHDQLQJIXO\u0003\n\nFDXWLRQDU\\\u0003VWDWHPHQWV\u0011\u00b4\u0003\u0003\u0014\u0018\u00038\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bX\u20135(c)(1).\n\n       3ODLQWL\u0d75V\u0003QH[W\u0003DUJXH\u0003WKDW\u0003HYHQ\u0003LI\u0003WKH\u0003VWDWHPHQWV\u0003ZHUH\u0003DFFRPSDQLHG\u0003E\\\u0003FDXWLRQDU\\\u0003\n\nODQJXDJH\u000f\u0003WKH\\\u0003VWLOO\u0003do QRW\u0003IDOO\u0003XQGHU\u0003WKH\u000336/5$\u00b6V\u0003VDIH\u0003KDUERU EHFDXVH\u0003WKH\\\u0003DOOHJH\u0003WKDW\u0003WKH\u0003\n\ne[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003UHYHDOV\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003NQHZ\u0003WKHVH\u0003VWDWHPHQWV\u0003\n\nWR\u0003EH\u0003IDOVH. Doc. 83 at 16\u2013\u0014\u001a\u0011\u0003\u00036SHFL\u00bfFDOO\\\u000f\u00033ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW WKH ,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u00b6 GLVFORVXUHV\u0003WKDW\u0003)DUIHWFK PD\\\u0003QHHG\u0003IXWXUH\u0003\u00bfQDQFLQJ\u0003ZDV\u0003FRQWUDGLFWHG\u0003E\\\u0003WKHLU\u0003\n\n\u00b3present FDSLWDO-UDLVLQJ\u0003H\u0d75RUWV\u0011\u00b4 Id. at 17. \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003WKH\u0003\n\nSOHDGLQJV\u0003GR\u0003QRW\u0003DGHTXDWHO\\\u0003DOOHJH WKDW\u0003WKH\\\u0003KDG\u0003\u00b3\u00b5DFWXDO\u0003NQRZOHGJH\u00b6 WKHLU VWDWHPHQWV\u0003\n\nZHUH\u0003IDOVH\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0017\u0003DW\u0003\u001b\u0003 TXRWLQJ\u0003Slayton, 604 F.3d at 773). 6SHFL\u00bfFDOO\\\u000f\u0003WKH\\\u0003FRQWHQG\u0003\n\nWKDW\u0003WKH\u0003DOOHJDWLRQV\u0003GR\u0003QRW\u0003EULQJ\u0003IRUWK\u0003QHZ\u0003LQIRUPDWLRQ FRQWUDGLFWLQJ\u0003WKH\u0003VWDWHPHQWV\u000f\u0003DQG\u0003\n\nVR\u0003WKH\u0003CRXUW\u0003VKRXOG\u0003UHMHFW\u0003WKHLU\u0003FODLPV DV\u0003LW\u0003KDG\u0003LQ\u0003LWV \u00bfUVW\u0003RSLQLRQ\u0003GLVPLVVLQJ\u0003WKH CAC.\n\nDoc. 80 at 21.\n\n       3ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKH\u00036$&\u000f\u0003ZKLFK\u0003QRZ\u0003GLVFXVVHV 3URMHFW\u0003$WKHQD, UHYHDOV\u0003WKDW\u0003\n\n)DUIHWFK\u0003ZDV\u0003IDFLQJ\u0003D\u0003OLTXLGLW\\\u0003FULVLV\u000f\u0003UHQGHULQJ\u0003WKH\u0003SRVLWLYH\u0003VWDWHPHQWV\u0003PDGH\u0003E\\\u0003WKH\u0003\n\n'HIHQGDQWV\u0003IDOVH\u0011\u0003\u0003Doc. 83 at 13; \u0088\u0088\u0003\u0014\u0017\u0017\u201386. ,Q\u0003RUGHU\u0003WR\u0003VXFFHHG\u0003RQ\u0003WKLV\u0003DUJXPHQW\u000f\u0003\n\n3ODLQWL\u0d75V\u0003PXVW\u0003\u00b3SOHDG\u0003IDFWV\u0003WR\u0003VXSSRUW\u0003D\u0003strong LQIHUHQFH\u0003RI\u0003VFLHQWHU\u000f\u00b4\u0003ZKLFK\u0003LV\u0003\u00b3FRJHQW\u0003\n\nDQG\u0003DW\u0003OHDVW\u0003DV\u0003FRPSHOOLQJ\u0003DV\u0003DQ\\\u0003RSSRVLQJ\u0003LQIHUHQFH\u0003RI\u0003QRQIUDXGXOHQW\u0003LQWHQW\u000f\u00b4\u0003DQG\u0003WKH\\\u0003\n\nFDQQRW\u0003UHO\\\u0003RQ\u0003UHFNOHVVQHVV\u0003EXW\u0003RQO\\\u0003\u00b3NQRZLQJ\u0003IDOVLW\\\u0011\u00b4\u0003\u0003Slayton, 604 F.3d at 773 LQWHUQDO\u0003\n\nTXRWDWLRQV\u0003DQG\u0003FLWDWLRQV\u0003RPLWWHG \u0011\u0003\u0003\u0e60H\u0003&RXUW\u0003PXVW WDNH\u0003LQWR\u0003DFFRXQW\u0003DOO\u0003RI\u0003WKH\u0003IDFWV\u0003\n\nDOOHJHG\u000f\u0003WKH\u0003GRFXPHQWV\u0003LQFRUSRUDWHG\u0003LQWR\u0003WKH\u00036$&\u000f\u0003DQG\u0003SODXVLEOH\u0003RSSRVLQJ\u0003LQIHUHQFHV\u0011\u0003\u0003Id.\n\nat 774 FLWLQJ\u0003Tellabs, 551 U.S. at 322\u201323). 3ODLQWL\u0d75V\u0003UHO\\\u0003RQ\u0003WKHLU\u0003FRQWHQWLRQ\u0003WKDW\u0003WKH\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003NQHZ\u0003DERXW\u00033URMHFW\u0003$WKHQD\u000f\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0014\u001a\u000f\u0003EXW\u0003NQRZOHGJH\u0003RI a\n\nFDSLWDO-UDLVLQJ\u0003H\u0d75RUW\u0003GRHV\u0003QRW\u0003UHQGHU\u0003DQ\\\u0003RI\u0003WKH\u0003VWDWHPHQWV\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003\n\n                                             24\n\f    Case 1:23-cv-10982-ER                Document 86           Filed 09/29/26          Page 25 of 39\n\n\n\n\nPDGH\u0003IDOVH\u0011\u0003 \u0e60H\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003GRHV\u0003QRW\u0003QHFHVVDULO\\\u0003PHDQ\u0003WKDW\u0003WKH\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003NQHZ\u0003)DUIHWFK\u0003ZDV\u0003D\u0003IDLOLQJ\u0003EXVLQHVV\u0011 1RU\u0003GRHV\u0003WKH\u00036$&\u0003\n\nVX\u0d76FLHQWO\\\u0003DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003VWDWHG\u0003WKDW\u0003)DUIHWFK\u0003GLG\u0003QRW\u0003QHHG\u0003DQ\\\u0003\n\nH[WHUQDO\u0003FDSLWDO\u000f\u0003VR\u00033URMHFW\u0003$WKHQD\u0003GRHV\u0003QRW\u0003UHQGHU\u0003WKH\u0003VWDWHPHQWV\u0003IDOVH\u0011 8            7F\n\n\n\n\n         \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003QRWH\u0003WKDW\u0003WKURXJKRXW\u0003WKLV\u0003WLPH\u000f\u0003WKH\\\u0003LQFUHDVHG\u0003WKHLU\u0003\n\nVWRFNKROGLQJV\u000f\u0003'RFV\u0011\u0003\u001b\u0014-3 at 117, 81-12 at 121, 81-22 at 6, ZKLFK\u0003LV\u0003LQFRQVLVWHQW\u0003ZLWK\u0003DQ\u0003\n\nLQIHUHQFH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003NQHZ\u0003)DUIHWFK\u0003ZDV\u0003IDLOLQJ\u0003DQG\u0003WKDW\u0003WKHLU\u0003\n\nVWDWHPHQWV\u0003DERXW\u0003LWV\u0003\u00bfQDQFLDO\u0003ZHOO-EHLQJ\u0003ZHUH\u0003IDOVH, see Turner v. MagicJack VocalTec,\n\nLimited, No. 13 Civ. 448 (RWS), 2014 WL 406917, at *11 (S.D.N.Y. Feb. 3, 2014)\n\n(\u00bfQGLQJ WKDW\u0003SXUFKDVLQJ\u0003VWRFN\u0003GXULQJ\u0003WKH\u0003UHOHYDQW\u0003SHULRG UHEXWV\u0003DQ\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU \u0011\n\n3ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003DOOHJH\u0003IDFWV\u0003WKDW\u0003SURYLGH\u0003D\u0003\u00b3FRJHQW\u00b4\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0003ZKLFK\u0003LV\u0003\n\n\u00b3DV\u0003FRPSHOOLQJ\u0003DV\u0003DQ\\\u0003RSSRVLQJ\u0003LQIHUHQFH\u0011\u00b4\u0003\u0003Slayton\u000f\u0003\u0019\u0013\u0017\u0003)\u0011\u0016G\u0003DW\u0003\u001a\u001a\u0016\u0003 LQWHUQDO\u0003TXRWDWLRQV\u0003\n\nDQG\u0003FLWDWLRQV\u0003RPLWWHG \u0011\u0003\u0003\u0e60HUHIRUH\u000f\u00033ODLQWL\u0d75V\u0003IDLO\u0003WR\u0003DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO 'HIHQGDQWV\u00b6\u0003\n\nIRUZDUG-ORRNLQJ\u0003VWDWHPHQWV\u0003ZHUH\u0003PDGH\u0003ZLWK\u0003NQRZOHGJH\u0003RI\u0003WKHLU\u0003IDOVLW\\\u0011\u0003\u0003\u0e60HVH\u0003VWDWHPHQWV\u0003\n\nIDOO\u0003ZLWKLQ\u0003WKH\u000336/5$\u00b6V\u0003VDIH\u0003KDUERU\u0003DQG\u0003DUH\u0003QRQ-actionable.\n         c. Non-Actionable Opinion Statements\n         \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003FRQWHQG\u0003WKDW\u0003DOO\u0003RI\u0003WKH FKDOOHQJHG VWDWHPHQWV\u0003LQ WKH\n\n6$&\u0003DUH\u0003non-DFWLRQDEOH\u0003RSLQLRQV\u0011\u0003\u0003'RF\u0011\u000380 at 24. 3ODLQWL\u0d75V\u0003GR\u0003QRW\u0003VSHFLI\\ ZKLFK\u0003\nVWDWHPHQWV\u0003DUH\u0003not RSLQLRQV\u000f\u0003EXW\u0003(1) DUJXH WKDW\u0003D\u0003VWDWHPHQW IDLOV\u0003WR\u0003EH\u0003D\u0003QRQ-actionable\n\nRSLQLRQ\u0003ZKHQ\u0003WKH\u0003VSHDNHU\u0003NQHZ\u0003RI\u0003FRQWUDGLFWLQJ\u0003PDWHULDO\u0003IDFWV\u000f\u0003DQG\u0003 \u0015 \u0003 SRLQW\u0003WR\u0003\n\nOmnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, 575\n\n\n8\n  \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DOVR\u0003DUJXH\u0003WKDW\u0003D\u0003OHWWHU\u0003DXWKRUHG\u0003E\\\u0003RXWVLGH\u0003FRXQVHO IRU\u00036XUSLTXH\u0003FDQQRW\u0003VHUYH\u0003\nWR\u0003HVWDEOLVK\u0003WKDW\u0003WKH\u0003,QGLYLGXDO 'HIHQGDQWV\u0003NQHZ\u0003WKH\u0003VWDWHPHQWV\u0003WKH\\\u0003PDGH\u0003ZHUH\u0003IDOVH\u0011\u0003\u0003'RF\u0011\u000380 at 22\u201323.\n$OWKRXJK\u00033ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKH\u0003HYLGHQWLDU\\\u0003ZHLJKW\u0003RI\u0003WKH\u0003OHWWHU\u0003VKRXOG\u0003QRW\u0003EH\u0003GHWHUPLQHG\u0003RQ\u0003D\u00035XOH\u0003\u0014\u0015\u0003\nFKDOOHQJH\u000f\u0003'RF\u0011\u0003\u001b\u0016\u0003DW 14\u000f\u0003WKLV\u0003&RXUW\u0003GHWHUPLQHV\u0003WKDW\u0003WKHVH\u0003VWDWHPHQWV\u0003DUH\u0003LQVX\u0d76FLHQW\u0003WR\u0003DOOHJH\u0003WKDW\u0003WKH\u0003\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003NQHZ\u0003WKHLU\u0003VWDWHPHQWV\u0003ZHUH\u0003IDOVH\u0003ZKHQ\u0003WKH\\\u0003ZHUH\u0003PDNLQJ\u0003WKHP\u0011\u0003\u0003See Wilbush v.\nAmbac Financial Group, Inc.\u000f\u0003\u0015\u001a\u0014\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0017\u001a\u0016\u000f\u0003\u0017\u001c\u001a\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u001a (\u00b3>7@KH\u0003ODZ\u0003LV\u0003DEXQGDQWO\\\u0003FOHDU\u0003\nWKDW\u00b4 LQ\u0003FDVHV\u0003ZKHUH\u0003WKH\u0003ZLWQHVVHV\u0003KDG\u0003QR\u0003FRQWDFW\u0003ZLWK WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u000f\u0003WKHLU\u0003\u00b3DOOHJDWLRQV\u0003DUH\u0003\nLQVX\u0d76FLHQW\u0003WR\u0003VXSSRUW\u0003VFLHQWHU\u0011\u00b4) LQWHUQDO\u0003TXRWDWLRQV\u0003DQG\u0003FLWDWLRQV\u0003RPLWWHG \u0011\u0003\u00036LQFH\u0003WKH\u0003RXWVLGH\u0003FRXQVHO\u0003\nGUDIWHG\u0003WKLV\u0003OHWWHU\u0003DIWHU\u0003WKH\u0003DOOHJHG\u0003HYHQWV\u0003RFFXUUHG\u0003DQG\u0003KDYH\u0003QR\u0003GLUHFW\u0003FRQQHFWLRQ\u0003WR\u0003DQ\\\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003\n'HIHQGDQWV\u000f\u0003LW\u0003FDQQRW\u0003DGHTXDWHO\\\u0003VXSSRUW\u0003DOOHJDWLRQV\u0003RI\u0003NQRZLQJ\u0003IDOVLW\\\u0003DV\u0003WR\u0003WKH\u0003VWDWHPHQWV\u0003PDGH\u0011\n\n                                                     25\n\f   Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 26 of 39\n\n\n\n\nU.S. 175 (2015), to contend WKDW\u0003WKH\u0003RSLQLRQV\u0003DUH\u0003DFWLRQDEOH\u0003VWDWHPHQWV\u0011\u0003\u0003'RF\u0011\u000383 at 18\u2013\n\n19. In Omnicare\u000f\u0003WKH\u00036XSUHPH\u0003&RXUW\u0003GHWHUPLQHG WKDW\u0003DQ\u0003RSLQLRQ\u0003VWDWHPHQW\u0003LV\u0003DFWLRQable\n\nLI HLWKHU\u0003(1) WKH\u0003VSHDNHU\u0003GLG\u0003QRW\u0003KROG\u0003WKH\u0003EHOLHI\u0003VKH\u0003SURIHVVHG\u000f (2) WKH\u0003VXSSRUWLQJ\u0003IDFW\u0003VKH\u0003\n\nVXSSOLHG\u0003ZHUH\u0003XQWUXH, RU\u0003 \u0016 \u0003 WKH\u0003VSHDNHU\u0003RPLWV\u0003LQIRUPDWLRQ ZKRVH\u0003RPLVVLRQ\u0003PDNHV\u0003WKH\u0003\n\nVWDWHPHQW\u0003PLVOHDGLQJ\u0003WR\u0003D\u0003UHDVRQDEOH\u0003LQYHVWRU\u0011\u0003\u0003575 U.S. at 186, 194. 3ODLQWL\u0d75V\u0003IRFXV\u0003RQ\u0003\n\nWKH\u0003WKLUG\u0003SURQJ\u000f\u0003DUJXLQJ\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003VWDWHPHQWV\u0003ZHUH\u0003PLVOHDGLQJ\u0003\n\nEHFDXVH\u0003WKH\\\u0003SXUVXHG\u00033URMHFW\u0003$WKHQD\u0003ZKLOH\u0003VWDWLQJ WKDW WKH\u0003&RPSDQ\\\u0003KDG\u0003VX\u0d76FLHQW\u0003\n\nOLTXLGLW\\\u0003DQG\u0003GLG\u0003QRW\u0003QHHG\u0003FDSLWDO\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW 19. 'HIHQGDQWV\u0003FRQWHQG\u0003WKDW\u0003WKLV\u0003DUJXPHQW\u0003\n\nIDLOV\u0003EHFDXVH (1) LW\u0003UHOLHV\u0003RQ\u0003WKH\u0003IDOVH\u0003FRQFOXVLRQ\u0003WKDW\u00033URMHFW\u0003$WKHQD\u0003\u00b3LV\u0003V\\QRQ\\PRXV\u0003\n\nZLWK\u0003WKH\u0003OLTXLGLW\\\u0003FULVLV\u0003WKDW\u0003HPHUJHG\u0003LQ\u0003ODWH \u0015\u0013\u0015\u0016\u00b4\u0003and (2) )DUIHWFK\u00b6V\u0003GLVFORVXUHV\u0003DUH\u0003\n\nFRQVLVWHQW\u0003ZLWK\u00033URMHFW\u0003$WKHQD, Doc. 84 at 9\u201310, DQG\u0003DGGLWLRQDOO\\\u000f\u00033ODLQWL\u0d75V\u0003FDQQRW\u0003VKRZ\u0003\n\nWKDW\u0003WKH\u0003VWDWHPHQWV\u0003IDOO\u0003XQGHU\u0003DQ\\\u0003RI\u0003WKH\u0003Omnicare SURQJV, Doc. 80 at 25\u201326.\n\n        \u0e60H\u00036XSUHPH\u0003&RXUW\u0003FDXWLRQHG\u0003DJDLQVW\u0003DQ\u0003RYHUO\\\u0003H[SDQVLYH\u0003UHDGLQJ\u0003RI\u0003WKLV\u0003\n\nVWDQGDUG\u000f\u0003VWDWLQJ\u0003WKDW\u0003\u00b3>U@HDVRQDEOH\u0003LQYHVWRUV\u0003XQGHUVWDQG\u0003WKDW\u0003RSLQLRQV\u0003VRPHWLPHV\u0003UHVW\u0003RQ\u0003\n\nD\u0003ZHLJKLQJ\u0003RI\u0003FRPSHWLQJ\u0003IDFWV\u000f\u00b4\u0003DQG\u0003D\u0003\u00b3UHDVRQDEOH\u0003LQYHVWRU\u0003GRHV\u0003QRW\u0003H[SHFW\u0003WKDW\u0003every\n\nIDFW\u0003NQRZQ\u0003WR\u0003DQ\u0003LVVXHU\u0003VXSSRUWV\u0003LWV\u0003RSLQLRQ\u0003VWDWHPHQW\u0011\u00b4 Omnicare, 575 U.S. at 189\u201390.\n\n$FFRUGLQJO\\\u000f\u0003DQ\u0003RSLQLRQ\u0003VWDWHPHQW\u0003\u00b3LV\u0003QRW\u0003QHFHVVDULO\\\u0003PLVOHDGLQJ\u0003ZKHQ\u0003DQ\u0003LVVXHU\u0003NQRZV\u000f\u0003\n\nEXW\u0003IDLOV\u0003WR\u0003GLVFORVH\u000f\u0003VRPH\u0003IDFW\u0003FXWWLQJ\u0003WKH\u0003RWKHU\u0003ZD\\\u0011\u00b6\u00b4 Id. at 189. 0RUHRYHU\u000f\u0003WKH\u0003\n\n6XSUHPH\u0003&RXUW\u0003KDV\u0003HPSKDVL]HG\u0003WKDW\u0003\u00b3tKH\u0003LQYHVWRU\u0003WDNHV\u0003LQWR\u0003DFFRXQW\u0003WKH\u0003FXVWRPV\u0003DQG\u0003\n\nSUDFWLFHV\u0003RI\u0003WKH\u0003UHOHYDQW\u0003LQGXVWU\\\u0011\u0003 6R\u0003DQ\u0003RPLVVLRQ\u0003WKDW\u0003UHQGHUV\u0003PLVOHDGLQJ\u0003D\u0003VWDWHPHQW\u0003RI\u0003\n\nRSLQLRQ\u0003ZKHQ\u0003YLHZHG\u0003LQ\u0003D\u0003YDFXXP\u0003PD\\\u0003QRW\u0003GR\u0003VR\u0003RQFH\u0003WKDW\u0003VWDWHPHQW\u0003LV\u0003FRQVLGHUHG\u000f\u0003DV\u0003LV\u0003\n\nDSSURSULDWH\u000f\u0003LQ\u0003D\u0003EURDGHU\u0003IUDPH\u0011\u00b4 Id. at 190; sHH\u0003,Q\u0003UH\u0003$UDWDQD\u0003\u0b61HUDSHXWLFV\u0003,QF\u0011\u0003\n\nSecurities Litigation\u000f\u0003\u0016\u0014\u0018\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u001a\u0016\u001a\u000f\u0003\u001a\u0018\u0018\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u001b \u0003 \u00b3[T]KH\u00036XSUHPH\u0003&RXUW\u0003\n\nKDV\u0003HPSKDVL]HG>@ VWDWHPHQWV\u0003RI\u0003RSLQLRQ\u0003PXVW\u0003EH\u0003FRQVLGHUHG\u0003LQ\u0003WKH\u0003FRQWH[W\u0003LQ\u0003ZKLFK\u0003WKH\\\u0003\n\nDULVH\u0011\u00b4 \u0011\n\n        )LUVW\u000f\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003VX\u0d76FLHQWO\\\u0003DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003\n\nmade DQ\\\u0003VWDWHPHQW ZKLOH\u0003NQRZLQJ\u0003RI\u0003LWV\u0003IDOVLW\\ DQG\u0003IDLOHG\u0003WR\u0003VKRZ\u0003ZK\\\u0003WKH\u0003H[LVWHQFH\u0003RI\u0003\n\n                                             26\n\f   Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 27 of 39\n\n\n\n\n3URMHFW\u0003$WKHQD\u0003UHQGHUV\u0003WKH\u0003VWDWHPHQWV\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003IDOVH. \u0e60HUHIRUH\u000f\n\n3ODLQWL\u0d75V\u00b6\u0003\u00bfUVW\u0003DUJXPHQW\u0003IDLOV\u0011\u0003\u0003\u0e60H\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u000f\u0003even ZKHQ\u0003FRQVLGHUHG\u0003in\n\nFRQMXQFWLRQ\u0003ZLWK\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003SXEOLF\u0003VWDWHPHQWV\u000f\u0003GRHV\u0003QRW\u0003VX\u0d76FLHQWO\\\u0003\n\nVXJJHVW\u0003WKDW\u0003WKH\\\u0003KDG\u0003IUDXGXOHQW\u0003LQWHQW\u0011\u0003 3ODLQWL\u0d75V\u0003DOVR\u0003IDLO\u0003WR\u0003DGHTXDWHO\\\u0003VKRZ\u0003ZK\\\u0003WKH\n\nSXUVXLW\u0003RI\u00033URMHFW\u0003$WKHQD\u0003PDNHV\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003RSLQLRQ VWDWHPHQWV\u0003IDOVH\u0011\n\n       6HFRQG\u000f\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003DGHTXDWHO\\\u0003SOHDG\u0003WKDW\u0003)DUIHWFK\u0003KDG\u0003D\u0003GXW\\\u0003WR\u0003\n\nGLVFORVH\u0003WKH\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u000f\u0003VR\u0003WKH\\\u0003DOVR\u0003IDLO\u0003RQ\u0003Omnicare\u00b6V\u0003WKLUG\u0003SURQJ\u0011\n\n:LWKRXW\u0003DQ\\\u0003GXW\\\u0003WR\u0003GLVFORVH\u000f\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003FDQQRW\u0003EH\u0003KHOG\u0003OLDEOH\u0003IRU\u0003DQ\u0003\n\nRPLVVLRQ\u0011\u0003\u0003See Macquarie, 601 U.S. at 265. 3ODLQWL\u0d75V\u00b6\u0003WKHRU\\\u0003WKDW\u0003WKH\u0003RPLVVLRQ\u0003ZDV\u0003\n\nPLVOHDGLQJ\u0003DOVR\u0003UHOLHV\u0003RQ\u0003WKH\u0003QRWLRQ\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003VDLG\u0003WKDW\u0003)DUIHWFK\u0003KDG\u0003\n\nVX\u0d76FLHQW\u0003OLTXLGLW\\\u0003DQG\u0003GLG\u0003QRW\u0003need H[WHUQDO\u0003FDSLWDO\u000f\u0003ZKLFK\u0003WKH\\\u0003KDYH\u0003QRW\u0003DGHTXDWHO\\\u0003\n\nDOOHJHG.\n       d. Non-Actionable &RUSRUDWH\u00032SWLPLVP\u0003RU\u00033X\u09fcHU\\\n       \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003PDQ\\\u0003RI\u0003WKH\u0003VWDWHPHQWV\u0003LQ\u0003WKH\u00036$&\u0003DUH\u0003QRQ-\n\nDFWLRQDEOH\u0003SX\u0d75HU\\ EHFDXVH\u0003WKH\u0003VWDWHPHQWV DUH\u0003WRR\u0003JHQHUDO\u0003DQG \u00b3DUH\u0003>QRW@\u0003IUDPHG\u0003DV\u0003\n\nJXDUDQWHHV\u00b4\u0003RU\u0003\u00b3WHWKHUHG\u0003WR\u0003VSHFL\u00bfF\u000f\u0003YHUL\u00bfDEOH\u0003IDFWV\u0011\u00b4 Doc. 80 at 26\u201327. 3ODLQWL\u0d75V\u0003DUJXH\u0003\n\nWKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003UHSHDWHG\u0003DVVXUDQFHV \u00b3WKDW\u0003)DUIHWFK\u0003KDG\u0003VX\u0d76FLHQW\u0003OLTXLGLW\\\u000f\u0003\n\nZDV\u0003VHOI-IXQGLQJ\u000f\u0003DQG\u0003GLG\u0003QRW\u0003QHHG\u0003WR\u0003UDLVH\u0003FDSLWDO\u000f\u00b4 DUH\u0003QRW\u0003PHUH\u0003SX\u0d75HU\\\u0003EHFDXVH\u0003WKH\\\u0003\nFRQYH\\\u0003PDWHULDO\u000f\u0003SUHVHQW\u0003IDFWV\u0003DERXW\u0003WKH\u0003&RPSDQ\\\u0011\u0003\u0003Doc. 83 at 19. 3ODLQWL\u0d75V\u0003SRLQW\u0003WR\u0003WKH\u0003\n\nVWDWHPHQW\u0003WKDW\u0003)DUIHWFK\u0003\u00b3KDV\u0003VX\u0d76FLHQW\u0003OLTXLGLW\\\u0003IRU\u0003WKH\u0003QH[W\u0003\u0014\u0015\u0003PRQWKV\u0003>ZKLFK\u0003WKH\\\u0003DUJXH@\u0003\n\nQHFHVVDULO\\ UHSUHVHQWV\u0003WKDW\u0003LW\u0003KDV\u0003VX\u0d76FLHQW\u0003OLTXLGLW\\\u00b4\u0003in WKH\u0003SUHVHQW. Id. at 20. \u0e60LV\u0003DQG\u0003\n\nVLPLODU\u0003VWDWHPHQWV\u000f\u00033ODLQWL\u0d75V\u0003FRQWHQG\u000f\u0003DUH\u0003DVVHUWLRQV\u0003DERXW\u0003WKH\u0003&RPSDQ\\\u00b6V\u0003FXUUHQW\u0003\n\n\u00bfQDQFLDO\u0003FRQGLWLRQ DQG\u0003DUH\u0003PLVOHDGLQJ\u0003EHFDXVH\u0003RI\u0003WKH\u0003\u00b3FRQWHPSRUDQHRXV\u0003SXUVXLW\u0003RI\u0003\n\n3URMHFW\u0003$WKHQD\u0011\u00b4\u0003\u0003Id. \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003UHDVVHUW\u0003WKHLU\u0003FRQWHQWLRQ\u0003WKDW\u0003QRQH\u0003RI\u0003WKH\u0003\n\nVWDWHPHQWV\u0003LQ\u0003WKH\u00036$&\u0003ZHUH \u00b3\u00b5FRQFUHWH\u0003UHSUHVHQWDWLRQV\u00b6 WKDW\u0003)DUIHWFK\u0003\u00b5was VHOI-IXQGLQJ\u000f\u0003\n\nand did not need H[WHUQDO\u0003FDSLWDO\u0011\u00b6\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0017\u0003DW\u0003\u0014\u0013\u201311 TXRWLQJ\u0003'RF\u0011\u000383 at 19\u201320).\n\n\n\n                                             27\n\f   Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 28 of 39\n\n\n\n\n       )RU\u0003D\u0003VWDWHPHQW\u0003WR\u0003EH\u0003DFWLRQDEOH\u000f\u0003\u00b3WKH\u0003UHSUHVHQWDWLRQ\u0003PXVW\u0003EH\u0003RQH\u0003RI\u0003H[LVWLQJ\u0003IDFW\u000f\u0003\n\nDQG\u0003QRW\u0003PHUHO\\\u0003DQ\u0003H[SUHVVLRQ\u0003RI\u0003RSLQLRQ\u000f\u0003H[SHFWDWLRQ\u0003RU\u0003GHFODUDWLRQ\u0003RI\u0003LQWHQWLRQ\u0011\u00b4\u0003 In re\n\nDuane Reade Inc. Securities Litigation, No. 2 Civ. 6478 (NRB), 2003 WL 22801416, at\n\n*4 (S.D.N.Y. Nov. 25, 2003) TXRWLQJ\u0003Greenberg v. Chrust\u000f\u0003\u0015\u001b\u0015\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0014\u0014\u0015\u000f\u0003\u0014\u0015\u0014\u0003\n\n(S.D.N.Y. 2003), D\u09fc\u00b6G\u0003VXE\u0003QRP\u0011 1DGR\u09fc\u0003Y\u0011\u0003'XDQH\u00035HDGH\u000f\u0003,QF\u0011\u000f\u0003\u0014\u0013\u001a\u0003)\u0011\u0003$SS\u00b6[\u0011\u0003\u0015\u0018\u0013\u0003 \u0015G\u0003&LU\u0011\u0003\n\n2004). \u00b3*HQHUDOL]HG\u0003VWDWHPHQWV\u0003UHJDUGLQJ\u0003D\u0003FRPSDQ\\\u00b6V\u0003\u00bfVFDO\u0003GLVFLSOLQH\u0003DQG\u0003ULVN\u0003\n\nPDQDJHPHQW\u0003DPRXQW\u0003WR\u0003QR\u0003PRUH\u0003WKDQ\u0003LQDFWLRQDEOH\u0003SX\u0d75HU\\\u0011\u00b4\u0003\u0003In re New York Community\n\nBancorp, Inc., Securities Litigation\u000f\u0003\u0017\u0017\u001b\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0017\u0019\u0019\u000f\u0003\u001780 (E.D.N.Y 2006) FLWLQJ In\n\nre JP Morgan Chase Securities Litigation, 363 F. 6XSS\u0011 2d 595, 633 (S.D.N.Y. 2005)).\n\n       +RZHYHU\u000f\u0003\u00b3>V@WDWHPHQWV\u0003UHJDUGLQJ\u0003SURMHFWLRQV\u0003RI\u0003IXWXUH\u0003SHUIRUPDQFH\u0003PD\\\u0003EH\u0003\n\nDFWLRQDEOH\u0003XQGHU\u0003Section \u0014\u0013 E \u0003RU\u00035XOH\u0003\u0014\u0013E-\u0018\u0003LI\u0003WKH\\\u0003DUH\u0003ZRUGHG\u0003DV\u0003JXDUDQWHHV\u0003RU\u0003DUH\u0003\n\nVXSSRUWHG\u0003E\\\u0003VSHFL\u00bfF\u0003VWDWHPHQWV\u0003RI\u0003IDFW\u000f\u0003RU\u0003LI\u0003WKH\u0003VSHDNHU\u0003GRHV\u0003QRW\u0003JHQXLQHO\\\u0003RU\u0003\n\nUHDVRQDEO\\\u0003EHOLHYH\u0003WKHP\u0011\u00b4\u0003 In re International Business Machines Corporate Securities\n\nLitigation\u000f\u0003\u0014\u0019\u0016\u0003)\u0011\u0016G\u0003\u0014\u0013\u0015\u000f\u0003\u0014\u0013\u001a\u0003 \u0015G\u0003&LU\u0011\u0003\u0014\u001c\u001c\u001b \u0003 LQWHUQDO\u0003FLWDWLRQV\u0003RPLWWHG \u001e\u0003see also Gissin v.\n\nEndres\u000f\u0003\u001a\u0016\u001c\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0017\u001b\u001b\u000f\u0003\u0018\u0013\u0015\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0013 \u0003 \u00b3[S]WDWHPHQWV\u0003DUH\u0003QRW\u0003SURWHFWHG\u0003ZKHUH\u0003\n\nGHIHQGDQWV\u0003KDG\u0003QR\u0003EDVLV\u0003IRU\u0003WKHLU\u0003RSWLPLVWLF\u0003VWDWHPHQWV\u0003DQG\u0003DOUHDG\\\u0003NQHZ\u0003 DOOHJHGO\\ \u0003WKDW\u0003\n\nFHUWDLQ\u0003ULVNV\u0003KDG\u0003EHFRPH\u0003UHDOLW\\.\u00b4\u0003 LQWHUQDO\u0003TXRWDWLRQV\u0003RPLWWHG ).\n\n       AV\u0003LQ\u0003WKH\u0003SUHYLRXV\u0003RSLQLRQ\u0003RI\u0003WKLV\u0003&RXUW\u000f\u0003WKH\u0003VWDWHPHQWV\u0003WR\u0003ZKLFK\u00033ODLQWL\u0d75V SRLQW\u0003\n\nDUH\u0003not actionable. 6WDWHPHQWV\u0003DERXW\u0003D\u0003FRPSDQ\\\u0003EHLQJ\u0003\u00b3EDFN\u0003WR\u0003JURZWK\u00b4\u0003DUH\u0003QRW\u0003\n\nVX\u0d76FLHQWO\\\u0003VSHFL\u00bfF\u0003RU\u0003FRQFUHWH\u0003WR\u0003PLVOHDG\u0003UHDVRQDEOH\u0003LQYHVWRUV\u0011 See Villare, 2021 WL\n\n4311749, at *15; Gissin\u000f\u0003\u001a\u0016\u001c\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003DW\u0003\u0018\u0014\u0014\u201312 \u00bfQGLQJ\u0003WKH\u0003GHIHQGDQW\u00b6V\u0003VWDWHPHQW\u0003\n\nWKDW\u0003WKH\u0003FRPSDQ\\\u0003\u00b3FRQWLQXHV\u0003WR\u0003PDLQWDLQ\u0003D\u0003VWURQJ\u0003EDODQFH\u0003VKHHW\u00b4\u0003ZDV\u0003PHUH\u0003SX\u0d75HU\\\u0003\n\nEHFDXVH\u0003LW\u0003GLG\u0003QRW\u0003\u00b3R\u0d75HU\u0003DQ\\\u0003RI\u0003WKH\u0003\u00b5ORQJ-WHUP\u0003JXDUDQWHHV\u00b6\u0003RU\u0003VSHFL\u00bfFV\u0003ZKLFK\u0003ZRXOG\u0003\n\nFRQYHUW\u0003DQ\u0003RSLQLRQ\u0003RU\u0003SURMHFWLRQ\u0003LQWR\u0003D\u0003IDFWXDO\u0003PLVUHSUHVHQWDWLRQ\u00b4 \u001e Livingston v.\n\nCablevision Systems Corp.\u000f\u0003\u001c\u0019\u0019\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0015\u0013\u001b\u000f\u0003\u0015\u0015\u0013\u0003 (\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0016 \u00bfQGLQJ a\n\nVWDWHPHQW\u0003WKDW\u0003D\u0003FRPSDQ\\\u0003\u00b3\u00b5FDQ\u0003FRQWLQXH\u0003WR\u0003SURYLGH\u0003VXSHULRU\u0003SURGXFWV\u000f\u0003VXSHULRU\u0003FXVWRPHU\u0003\n\nVHUYLFH\u000f\u0003DQG\u0003FRPSHWH\u0003DJJUHVVLYHO\\\u000f\u0003DQG\u0003FRQWLQXH\u0003WR\u0003JURZ\u00b6\u0003LV\u0003TXLQWHVVHQWLDO\u0003LQDFWLRQDEOH\u0003\n\n                                             28\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26      Page 29 of 39\n\n\n\n\nSX\u0d75HU\\\u00b4 . \u0e60HUHIRUH\u000f\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u00b6\u0003VWDWHPHQWV VXFK\u0003DV )DUIHWFK\u0003KDG\u0003\u00b3DOO\u0003WKH\u0003\n\nNH\\\u0003HOHPHQWV\u0003WR\u0003H[HFXWH\u0003RQ\u0003>LWV@ SODQ\u00b4\u0003DQG \u00b3>W@KH\u0003ZRUN\u0003ZH\u00b6YH\u0003GRQH\u0003\u0011\u0003\u0011\u0003\u0011\u0003SXWV\u0003XV\u0003LQ\u0003D\u0003VWURQJ\u0003\n\nSRVLWLRQ\u0003WR\u0003GHOLYHU\u0003RQ\u0003RXU\u0003\u0015\u0013\u0015\u0016\u0003JRDOV,\u00b4 \u0088\u0088\u0003\u0014\u0018\u001a\u2013\u0018\u001b\u000f\u0003FRQVWLWXWH\u0003non-DFWLRQDEOH\u0003SX\u0d75HU\\\u0011\n\n       3ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003)DUIHWFK\u00b6V\u0003FODLP\u0003WKDW\u0003LW ZLOO\u0003KDYH\u0003\u00b3VX\u0d76FLHQW\u0003OLTXLGLW\\\u0003IRU\u0003WKH\u0003\n\nQH[W\u0003\u0014\u0015\u0003PRQWKV\u00b4\u0003LPSOLHV\u0003WKDW\u0003LW\u0003SUHVHQWO\\\u0003KDG\u0003VX\u0d76FLHQW\u0003OLTXLGLW\\\u000f\u0003ZKLFK\u0003LV VSHFL\u00bfF\u0003DQG\n\nPLVOHDGLQJ\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0013\u0011\u0003\u0003\u0e60H\u0003RQO\\\u0003WKLQJ\u00033ODLQWL\u0d75V\u0003DUJXH\u0003PDNHV\u0003WKLV\u0003PLVOHDGLQJ\u0003LV\u0003WKH\u0003\n\nH[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0011\u0003\u0003Id. 2QFH\u0003DJDLQ\u000f\u00033ODLQWL\u0d75V\u0003IDLO\u0003WR\u0003DGHTXDWHO\\\u0003H[SODLQ\u0003ZK\\\u0003WKH\u0003\n\nH[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003QHFHVVDULO\\\u0003PHDQV\u0003WKDW\u0003D\u0003VWDWHPHQW\u0003WKDW\u0003)DUIHWFK\u0003KDV\u0003VX\u0d76FLHQW\u0003\n\nOLTXLGLW\\\u0003LQ\u0003WKH\u0003SUHVHQW\u000f\u0003RU\u0003IRU\u0003WKH\u0003QH[W\u0003\u0014\u0015\u0003PRQWKV\u0003IRU\u0003WKDW\u0003PDWWHU\u000f\u0003LV\u0003PLVOHDGLQJ. $OVR\u000f\u0003DV\u0003\n\nWKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u000f\u0003QRZKHUH\u0003LQ\u0003WKH\u00036$&\u0003GR\u0003WKH ,QGLYLGXDO\u0003'HIHQGDQWV claim\n\nWKDW\u0003)DUIHWFK\u0003ZDV\u0003VHOI-IXQGLQJ\u0003DQG\u0003GLG\u0003QRW\u0003QHHG\u0003H[WHUQDO\u0003FDSLWDO\u0011\u0003\u0003See Doc. 78. \u0e60H\u0003&RXUW\u0003\n\nQHHG\u0003QRW\u0003DQVZHU\u0003ZKHWKHU WKLV\u0003FKDOOHQJHG\u0003VWDWHPHQW\u0003LV VSHFL\u00bfF\u0003HQRXJK\u0003QRW\u0003WR\u0003TXDOLI\\\u0003DV\u0003\n\nSX\u0d75HU\\ EHFDXVH\u0003it LV\u0003SULPDULO\\\u0003D\u0003SURMHFWLRQ\u0003DERXW\u0003WKH\u0003IXWXUH, ZDV\u0003TXDOL\u00bfHG\u0003E\\\u0003\u00b3>Z@H\u0003\n\nbelieve,\u00b4\u0003and ZDV\u0003DFFRPSDQLHG E\\\u0003FDXWLRQDU\\\u0003ODQJXDJH. \u0088\u0003\u0014\u0013\u0019; see \u0014\u0018\u00038\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bX\u2013\n\n\u0018 F \u0014 \u0003 VWDWLQJ\u0003WKDW\u0003WKH\u000336/5$\u00b6V\u0003VDIH\u0003KDUERU\u0003SURYLVLRQ\u0003SURYLGHV\u0003WKDW\u0003QR\u0003OLDELOLW\\\u0003DWWDFKHV\u0003\n\nWR\u0003D\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQW\u0003LI\u0003LW\u0003LV\u0003\u00b3LGHQWL\u00bfHG\u0003DV\u0003D\u0003IRUZDUG-ORRNLQJ\u0003VWDWHPHQW\u000f\u0003DQG\u0003LV\u0003\n\nDFFRPSDQLHG\u0003E\\\u0003PHDQLQJIXO\u0003FDXWLRQDU\\\u0003VWDWHPHQWV\u00b4 \u0011\n\n       $FFRUGLQJO\\\u000f\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR DGHTXDWHO\\ DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u0003PDGH\u0003PDWHULDOO\\\u0003PLVOHDGLQJ\u0003VWDWHPHQWV\u0003RU\u0003RPLVVLRQV\u0011\n           3ODLQWL\u09fcV\u0003'R\u00031RW\u0003$OOHJH\u0003D\u00036WURQJ\u0003,QIHUHQFH\u0003RI\u00036FLHQWHU\n       \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DVVHUW\u0003WKDW\u00033ODLQWL\u0d75V\u0003KDYH\u0003QRW\u0003VX\u0d76FLHQWO\\\u0003SOHDGHG\u0003D\u0003\n\nFRJQL]DEOH\u0003PRWLYH\u0003RU\u0003WKe UHTXLVLWH\u0003\u00b3FRUUHVSRQGLQJO\\\u0003JUHDWHU\u00b4\u0003VKRZLQJ\u0003RI\u0003\u00b3FRQVFLRXV\u0003\n\nPLVEHKDYLRU\u0003RU\u0003UHFNOHVVQHVV\u000f\u00b4\u0003ZKHQ\u0003PRWLYH\u0003LV\u0003DEVHQW\u0011 Doc. 80 at 29\u2013\u0016\u0013\u0011\u0003\u0003\u0e60H\\\u0003DUJXH\u0003WKDW\u0003\n\n3ODLQWL\u0d75V\u0003GLG\u0003QRW\u0003VKRZ\u0003DQ\\\u0003FRQFUHWH\u0003EHQH\u00bfW\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003UHFHLYHG\u000f\u0003IDLO\u0003\n\nWR\u0003DOOHJH\u0003PRWLYH\u000f\u0003DQG\u0003GLG\u0003QRW\u0003SRLQW\u0003WR\u0003IDFWV\u0003VKRZLQJ\u0003WKH\\\u0003ZHUH\u0003DZDUH\u0003WKDW\u0003WKHLU\u0003VWDWHPHQWV\u0003\n\nZHUH\u000f\u0003RU\u0003WKDW\u0003WKHUH\u0003ZDV\u0003D\u0003JRRG\u0003FKDQFH\u0003WKDW\u0003WKH\\\u0003ZHUH\u000f\u0003IDOVH\u0003RU\u0003PLVOHDGLQJ\u000f\u0003IDLOLQJ\u0003WR\u0003DOOHJH\u0003\n\nFRQVFLRXV\u0003PLVEHKDYLRU\u0003RU\u0003UHFNOHVVQHVV\u0011\u0003\u0003Id. 3ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKH\\\u0003KDYH\u0003DGHTXDWHO\\\u0003\n\n                                             29\n\f   Case 1:23-cv-10982-ER           Document 86         Filed 09/29/26      Page 30 of 39\n\n\n\n\nDOOHJHG\u0003VFLHQWHU\u0003EHFDXVH\u0003WKH\\\u0003DOOHJH\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003ZHUH\u0003\u00b3GLUHFWO\\\u0003\n\nLQYROYHG\u00b4\u0003LQ\u00033URMHFW\u0003$WKHQD\u000f\u0003WR\u0003UDLVH\u0003FDSLWDO\u0003RU\u0003VHOO\u0003WKH\u0003EXVLQHVV\u000f\u0003ZKLOH\u0003VWDWLQJ\u0003WKDW\u0003\n\n\u00b3)DUIHWFK\u0003ZDV\u0003VHOI-IXQGLQJ\u0003DQG\u0003GLG\u0003QRW\u0003QHHG\u0003H[WHUQDO\u0003FDSLWDO\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0017\u0011\u0003\u0003\u0e60H\\\u0003\n\nFRQWHQG\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u000f\u0003WKURXJK\u0003WKHLU\u0003SRVLWLRQV\u000f\u0003HDFK\u0003KDG\u0003GLUHFW\u0003\n\nLQYROYHPHQW\u0003LQ\u00033URMHFW\u0003$WKHQD\u0003DQG\u0003KDG\u0003D\u0003\u00b3FRQFUHWH\u0003PRWLYH . . . WR\u0003VWDYH\u0003R\u0d75\u0003EDQNUXSWF\\\u0003\n\nDQG\u0003PDLQWDLQ\u0003LWV\u0003FUHGLW\u0003DFFHVV\u0003ORQJ\u0003HQRXJK\u0003WR\u0003FRPSOHWH\u00033URMHFW\u0003$WKHQD\u0011\u00b4\u0003\u0003Id. at 24\u201325.\n\n       7R\u0003VDWLVI\\\u0003WKH\u000336/5$\u00b6V\u0003SOHDGLQJ\u0003UHTXLUHPHQWV\u0003IRU\u0003VFLHQWHU\u000f\u0003D\u0003SODLQWL\u0d75\u0003PXVW\u0003DOOHJH\u0003\n\nIDFWV\u0003ZLWK\u0003SDUWLFXODULW\\\u0003WKDW\u0003ZRXOG\u0003JLYH\u0003\u00b3ULVH\u0003WR\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003WKDW\u0003WKH\u0003GHIHQGDQW\u0003DFWHG\u0003\n\nZLWK\u0003WKH\u0003UHTXLUHG\u0003VWDWH\u0003RI\u0003PLQG\u0011\u00b4 ECA, Local 134 IBEW Joint Pension Trust of Chicago\n\nv. JP Morgan Chase Co., 553 F.3d 187, 196 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u001c TXRWLQJ \u0014\u0018\u00038\u00116\u0011&\u0011\u0003\u0086\u0003\u001a\u001bX\u2013\n\n4(b)(1), (2))\u0011\u0003\u0003$\u0003VWURQJ\u0003LQIHUHQFH\u0003WKDW\u0003D\u0003GHIHQGDQW\u0003DFWHG\u0003ZLWK\u0003D\u0003FHUWDLQ\u0003LQWHQW\u0003LV\u0003RQH\u0003WKDW\u0003LV\u0003\n\n\u00b3PRUH\u0003WKDQ\u0003PHUHO\\\u0003SODXVLEOH\u0003RU\u0003UHDVRQDEOH\u2014LW\u0003PXVW\u0003EH\u0003FRJHQW\u0003DQG\u0003DW\u0003OHDVW\u0003DV\u0003FRPSHOOLQJ\u0003\n\nDV\u0003DQ\\\u0003RSSRVLQJ\u0003LQIHUHQFH\u0003RI\u0003QRQIUDXGXOHQW\u0003LQWHQW\u0011\u00b4 Tellabs, 551 U.S. at 314.\n\n       \u0e60LV\u0003LQTXLU\\\u0003JRHV\u0003EH\\RQG\u0003WKH\u0003RUGLQDU\\ 5XOH\u0003\u001c E IUDPHZRUN\u0003DQG\u0003UHTXLUHV\u0003FRXUWV\u0003WR\u0003\n\nFRQVLGHU\u0003\u00b3QRW\u0003RQO\\\u0003LQIHUHQFHV\u0003XUJHG\u0003E\\\u0003WKH\u0003SODLQWL\u0d75\u0003\u0011\u0003\u0011\u0003\u0011\u0003EXW\u0003DOVR\u0003FRPSHWLQJ\u0003LQIHUHQFHV\u0003\n\nUDWLRQDOO\\\u0003GUDZQ\u0003IURP\u0003WKH\u0003IDFWV\u0003DOOHJHG\u0011\u00b4 Id. \u00b3\u0e60H\u0003UHOHYDQW\u0003LQTXLU\\\u0003IRU\u0003WKH\u0003&RXUW\u0003\u00b5LV\u0003\n\nZKHWKHU all RI\u0003WKH IDFWV\u0003DOOHJHG\u000f\u0003WDNHQ\u0003FROOHFWLYHO\\\u000f\u0003JLYH\u0003ULVH\u0003WR\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003RI\u0003\n\nVFLHQWHU\u000f\u0003QRW\u0003ZKHWKHU\u0003DQ\\ individual DOOHJDWLRQ\u000f\u0003VFUXWLQL]HG\u0003LQ\u0003LVRODWLRQ\u000f\u0003PHHWV\u0003WKDW\u0003\n\nVWDQGDUG\u0011\u00b6\u00b4\u0003 In re Magnum Hunter Resources Corp. Securities Litigation, 26 F. 6XSS\u0011 3d\n\n278, 299 (S.D.N.Y. 2014) TXRWLQJ Tellabs, 551 U.S. at 322\u201323).\n\n       $\u0003SODLQWL\u0d75\u0003PD\\\u0003HVWDEOLVK\u0003VFLHQWHU\u0003E\\\u0003DOOHJLQJ\u0003IDFWV\u0003WKDW\u0003HLWKHU\u0003 \u0014 \u0003 VKRZ\u0003WKDW\u0003WKH\u0003\n\nGHIHQGDQW\u0003KDG\u0003ERWK\u0003WKH\u0003\u00b3PRWLYH\u0003DQG\u0003RSSRUWXQLW\\\u00b4\u0003WR\u0003FRPPLW\u0003WKH\u0003DOOHJHG\u0003IUDXG\u000f\u0003RU\u0003 \u0015 \u0003\n\n\u00b3FRQVWLWXWH\u0003VWURQJ\u0003FLUFXPVWDQWLDO\u0003HYLGHQFH\u0003RI\u0003FRQVFLRXV\u0003PLVEHKDYLRU\u0003RU\u0003UHFNOHVVQHVV\u0011\u00b4\u0003\u0003\n\nLerner v. Fleet Bank, N.A., 459 F.3d 273, 290\u2013\u001c\u0014\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u0019 \u0011\u0003\u00037\\SLFDOO\\\u000f\u0003\u00b3RUGLQDU\\\u0003\n\nPRWLYHV\u0003SRVVHVVHG\u0003E\\\u0003YLUWXDOO\\\u0003DOO\u0003FRUSRUDWH\u0003LQVLGHUV\u00b4\u0003DUH LQVX\u0d76FLHQW\u0003WR\u0003SOHDG\u0003VFLHQWHU\u0011\u0003 In\n\nre Plug Power, Inc. Securities Litigation, No. 21 Civ. 2004 (ER), 2022 WL 4631892, at\n\n \u0014\u0015\u0003 6\u0011'\u00111\u0011<\u0011\u00036HS\u0011\u0003\u0015\u001c\u000f\u0003\u0015\u0013\u0015\u0015 \u0011\n\n                                              30\n\f    Case 1:23-cv-10982-ER               Document 86           Filed 09/29/26          Page 31 of 39\n\n\n\n\n         a. 3ODLQWL\u09fcV\u2019 $OOHJDWLRQV\u0003RI\u00030RWLYH\u0003DUH\u0003,QVX\u09fdFLHQW\n         3ODLQWL\u0d75V\u0003DUJXH WKDW\u0003)DUIHWFK\u0003KDG\u0003D\u0003FOHDU\u0003PRWLYH\u001d\u0003\u0003\u00b3WR\u0003VWDYH\u0003R\u0d75\u0003EDQNUXSWF\\\u0003DQG\u0003\n\nPDLQWDLQ\u0003LWV\u0003FUHGLW\u0003DFFHVV\u0003ORQJ\u0003HQRXJK\u0003WR\u0003FRPSOHWH\u00033URMHFW\u0003$WKHQD\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0018\u0011\u0003\u0003\u0e60H\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003WKLV\u0003DOOHJDWLRQ\u0003LV\u0003LQVX\u0d76FLHQW\u0003EHFDXVH\u0003WKRVH\u0003WZR\u0003GHVLUHV\u0003\n\nDUH\u0003KHOG\u0003E\\\u0003YLUWXDOO\\\u0003DOO\u0003EXVLQHVVHV\u0003DQG\u000f\u0003WKHUHIRUH\u000f\u0003GR\u0003QRW\u0003DGHTXDWHO\\\u0003DOOHJH\u0003D\u0003IUDXGXOHQW\u0003\n\nmotive. Doc. 84 at 12. 9 \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u00033ODLQWL\u0d75V\u0003WKXV\u0003IDLOHG\u0003WR\u0003\n                           8F\n\n\n\n\nDOOHJH\u0003D\u0003FOHDU\u0003EHQH\u00bfW\u0003REWDLQHG\u0003E\\\u0003WKHP\u0003IURP\u0003WKH\u0003DOOHJHG\u0003IUDXG\u0003DQG\u0003DOVR\u0003IDLOHG\u0003WR\u0003FRQWHQG\u0003\n\nZLWK\u0003WKH\u0003IDFW\u0003WKDW\u0003HDFK\u0003RI\u0003WKHP\u0003LQFUHDVHG\u0003RU\u0003UHWDLQHG\u0003WKHLU\u0003VWRFN\u0003KROGLQJV\u0003GXULQJ\u0003WKH\u0003&ODVV\u0003\n\n3HULRG\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u0015\u001c\u0011\n\n         \u0e60H\u0003EDVLV\u0003RI\u00033ODLQWL\u0d75V\u00b6\u0003DOOHJDWLRQ\u0003LV\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003SXUVXHG\u0003DQ\u0003\n\nLQLWLDWLYH\u0003\u00b3WR\u0003UDLVH\u0003FDSLWDO\u000f\u00b4\u0003ZKLOH\u0003WHOOLQJ\u0003LQYHVWRUV\u0003WKH\\\u0003GLGQ\u00b6W\u0003QHHG\u0003FDSLWDO\u000f\u0003HVWDEOLVKLQJ\u0003\n\nVFLHQWHU\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0017\u0011\u0003\u0003%XW, \u00b3FRXUWV\u0003LQ WKLV\u0003GLVWULFW\u0003KDYH\u0003JHQHUDOO\\\u0003IRXQG\u0003DOOHJDWLRQV\u0003\n\nUHJDUGLQJ\u0003WKH\u0003GHVLUH\u0003WR\u0003UDLVH\u0003FDSLWDO\u0003LQDGHTXDWH\u0003WR\u0003SOHDG VFLHQWHU\u0011\u00b4 In re Plug Power, 2022\n\nWL 4631892, at \u0014\u0015\u0011\u0003\u0003\u0e60H\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003GRHV\u0003QRW\u0003FUHDWH\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003\n\nWKDW\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DFWHG\u0003ZLWK\u0003IUDXGXOHQW\u0003LQWHQW\u0003ZKHQ\u0003WKH\\\u0003PDGH\u0003SXEOLF\u0003\n\nVWDWHPHQWV\u0003DERXW\u0003)DUIHWFK\u00b6V\u0003\u00bfQDQFLDO\u0003ZHOO-EHLQJ\u0011\u0003\u00033ODLQWL\u0d75V\u0003DUJXH\u0003WKDW\u0003WKH\u0003&RPSDQ\\\u00b6V\u0003\n\nPRWLYH\u0003ZDV\u0003WR\u0003\u00b3VWDYH\u0003R\u0d75\u0003EDQNUXSWF\\\u0003DQG\u0003PDLQWDLQ\u0003LWV\u0003FUHGLW\u0003DFFHVV\u000f\u00b4\u0003ZKLFK\u0003WKH\\\u0003FRQWHQG\u0003\n\n\u00b3LV\u0003D\u0003VSHFL\u00bfF\u0003DOOHJDWLRQ\u0003WKDW\u0003WKH\u0003IUDXG\u0003HQDEOHG\u0003D\u0003VSHFL\u00bfF\u0003WUDQVDFWLRQ\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0018\u201326.\n+RZHYHU\u000f\u0003FRXUWV\u0003KDYH\u0003IRXQG\u0003WKDW\u0003DQ\u0003DOOHJDWLRQ\u0003WKDW\u0003WKH\u0003GHIHQGDQWV\u0003DFWHG\u0003WR\u0003\u00b3DYRLG\u0003\n\nEDQNUXSWF\\\u00b4\u0003LV\u0003LQVX\u0d76FLHQW\u0003EHFDXVH\u0003LW\u0003LV\u0003D\u0003PRWLYH\u0003FRPPRQ\u0003WR\u0003DOO\u0003FRUSRUDWLRQV\u0011\u0003\u0003Saraf v.\n\nEbix, Inc., No. 23 Civ. \u0014\u0014\u001b\u0015\u000f\u0003\u0015\u0013\u0015\u0017\u0003:/\u0003\u0014\u0015\u001c\u001b\u0015\u0017\u0019\u000f\u0003DW\u0003 \u0015\u0003 \u0015G\u0003&LU\u0011\u00030DU\u0011\u0003\u0015\u001a\u000f\u0003\u0015\u0013\u0015\u0017 \u0011\u0003\u0003&RXUWV\u0003\n\nKDYH\u0003DOVR\u0003IRXQG\u0003DOOHJDWLRQV\u0003WKDW\u0003D\u0003FRPSDQ\\\u0003\u00b3ZDQWHG\u0003WR\u0003PDLQWDLQ\u0003WKH\u0003DSSHDUDQFH\u0003RI\u0003\n\nSUR\u00bfWDELOLW\\\u0003DQG\u0003DFFHVV\u0003WR\u0003FDSLWDO\u00b4\u0003DUH LQVX\u0d76FLHQW\u0003WR\u0003DOOHJH\u0003VFLHQWHU\u0011\u0003\u0003Harris v. AmTrust\n\n\n9\n 3ODLQWL\u0d75V\u0003DOVR\u0003FRQWHQG\u000f\u0003\u00b3>W@KH\u00036$&\u0003DOOHJHV\u0003WKDW\u0003)DUIHWFK\u0003QHHGHG\u0003WR\u0003SUHVHUYH\u0003LWV\u0003UHODWLRQVKLS\u0003ZLWK\u0003-\u00113\u0011\u0003\n0RUJDQ\u000f\u0003ZKLFK\u0003ZDV\u0003VLPXOWDQHRXVO\\\u0003DGYLVLQJ\u0003RQ\u00033URMHFW\u0003$WKHQD\u0003DQG\u0003SURYLGLQJ\u0003FUHGLW\u0003IDFLOLWLHV\u000f\u0003WR\u0003IXQG\u0003\nRSHUDWLRQV\u0003WKURXJK\u0003WKH\u0003FRPSOHWLRQ\u0003RI\u0003WKH\u0003XQGLVFORVHG\u0003WUDQVDFWLRQ\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0018\u0003 FLWLQJ\u0003'RF\u0011\u0003\u001a\u001b\u0003\u0088\u0003\u0014\u0013\u001c \u0011\u0003\u0003\n+RZHYHU\u000f\u0003 \u0014 \u0003 WKH\u00036$&\u0003GRHV\u0003QRW\u0003PDNH\u0003WKLV\u0003DOOHJDWLRQ\u000f\u0003PHUHO\\\u0003GLVFXVVLQJ\u0003D\u0003FUHGLW\u0003DJUHHPHQW\u0003EHWZHHQ\u0003\n)DUIHWFK\u0003and -\u00113\u0011\u00030RUJDQ\u000f\u0003'RF\u0011\u0003\u001a\u001b\u0003\u0088\u0003\u0014\u0013\u001c\u000f\u0003DQG\u0003 \u0015 \u0003 3ODLQWL\u0d75V\u0003IDLO\u0003WR\u0003H[SODLQ\u0003KRZ\u0003WKLV\u0003GL\u0d75HUV\u0003IURP\u0003RUGLQDU\\\u0003\nPRWLYHV\u0003RI\u0003D\u0003EXVLQHVV\u0011\n\n                                                     31\n\f   Case 1:23-cv-10982-ER            Document 86        Filed 09/29/26       Page 32 of 39\n\n\n\n\nFinancial Services, Inc.\u000f\u0003\u0014\u0016\u0018\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0014\u0018\u0018\u000f\u0003\u0014\u001a\u001a\u0003 6\u0011'\u00111\u0011<\u0011\u00032015), D\u09fc\u00b6G, \u0019\u0017\u001c\u0003)\u0011\u0003$SS\u00b6[\u0003\u001a\u0003\n\n\u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0019 \u0011\n\n        3ODLQWL\u0d75V\u0003FRQWHQd WKDW\u0003\u00b3>W@KLV\u0003LV\u0003QRW\u0003D\u0003JHQHULF\u0003DOOHJDWLRQ\u00b4\u0003EHFDXVH\u0003FRXUWV\u0003KDYH\u0003\n\nIRXQG\u0003WKDW\u0003PRWLYH\u0003LV\u0003VX\u0d76FLHQWO\\\u0003HVWDEOLVKHG\u0003\u00b3ZKHQ\u0003D\u0003FRPSDQ\\\u0003LV\u0003LQ\u0003GLUH\u0003QHHG\u0003RI\u0003IXQGV\u0003IRU\u0003\n\nVXUYLYDO\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u0019\u0003 TXRWLQJ\u0003Leone v. ASP Isotopes Inc.\u000f\u0003\u001b\u0014\u0014\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0018\u0019\u0016\u000f\u0003\u0019\u0013\u0019\u0003\n\n(S.D.N.Y. 2025)); see also 6NLDGDV\u0003Y\u0011\u0003$FHU\u0003\u0b61HUDSHXWLFV\u0003,QF\u0011, No. 19 Civ. 6137 (GHW),\n\n\u0015\u0013\u0015\u0013\u0003:/\u0003\u0016\u0015\u0019\u001b\u0017\u001c\u0018\u000f\u0003DW\u0003 \u0014\u0014\u0003 6\u0011'\u00111\u0011<\u0011\u0003-XQH\u0003\u0014\u0019\u000f\u0003\u0015\u0013\u0015\u0013 \u0003 \u00b3>&@RXUWV\u0003KDYH\u0003IRXQG\u0003DOOHJDWLRQV\u0003RI\u0003\n\nPRWLYH\u0003DGHTXDWH\u0003ZKHUH\u0003WKH\u0003FRPSDQ\\\u00b6V\u0003QHHGHG\u0003WR\u0003IXQGUDLVH\u0003WR\u0003VXUYLYH\u0011\u00b4 \u0011\u0003\u0003+RZHYHU\u000f\u0003LQ\u0003LWV\u0003\n\nDQDO\\VLV\u000f\u0003WKLV\u0003&RXUW\u0003PXVW\u0003not ORRN\u0003WR DQ\\ IDFW LQ\u0003LVRODWLRQ\u0003EXW\u0003PXVW\u0003DVVHVV\u0003\u00b3ZKHWKHU\u0003all RI\u0003\n\nWKH\u0003IDFWV\u0003DOOHJHG\u000f\u0003WDNHQ\u0003FROOHFWLYHO\\\u000f\u0003JLYH\u0003ULVH\u0003WR\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0011\u00b4\u0003\u0003In re\n\nMagnum, 26 F. 6XSS\u0011 \u0016G\u0003DW\u0003\u0015\u001c\u001c\u0003 TXRWLQJ Tellabs, 551 U.S. at 322\u201323). AV\u0003WKLV\u0003&RXUW\u0003\n\nQRWHG\u0003LQ\u0003LWV\u0003GLVFXVVLRQ\u0003RI\u0003PRWLYH\u0003LQ\u0003LWV\u0003SULRU\u0003RSLQLRQ\u000f\u0003'RF\u0011\u0003\u001a\u0016\u0003DW\u0003\u0016\u0019\u000f\u0003WKH\u0003SXUFKDVH\u0003RI VWRFN\u0003\n\nGXULQJ\u0003WKH\u0003FODVV\u0003SHULRG UHEXWV\u0003DQ\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u000f Turner, 2014 WL 406917, at *11.\n\n        $OWKRXJK\u00033ODLQWL\u0d75V\u0003GR\u0003DOOHJH\u0003WKDW\u0003)DUIHWFK\u0003ZDV\u0003LQ\u0003VLJQL\u00bfFDQW\u0003\u00bfQDQFLDO\u0003GLVWUHVV\u000f\u0003\u0088 5,\n\nWKHLU\u0003DOOHJDWLRQV\u0003RI\u0003PRWLYH\u0003UHO\\\u0003SULPDULO\\\u0003RQ\u0003\u00b3RUGLQDU\\\u0003PRWLYHV\u0003SRVVHVVHG\u0003E\\\u0003YLUWXDOO\\\u0003DOO\u0003\n\nFRUSRUDWH\u0003LQVLGHUV\u000f\u00b4\u0003In re Plug Power, 2022 WL 4631892, at *\u0014\u0015\u0011\u0003\u0003/RRNLQJ\u0003at WKH\u0003DOOHJHG\u0003\n\nIDFWV\u0003DV\u0003D\u0003ZKROH\u000f\u0003LQFOXGLQJ\u0003WKH\u0003LQFUHDVHG\u0003VWRFNKROGLQJV\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u000f\u0003see\n\n'RFV\u0011\u0003\u001b\u0014-3 at 117, 81-12 at 121, 81-\u0015\u0015\u0003DW\u0003\u0019\u000f\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003DGHTXDWHO\\\u0003DOOHJH\u0003\n\nmotive.\n        b. 3ODLQWL\u09fcV\u2019 Allegations of Reckless Disregard or \u201cCircumstantial\u201d Scienter are\n           ,QVX\u09fdFLHQW\n        \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003DOOHJH\u0003WKDW\u0003WKH\\\u0003\n\nDFWHG\u0003ZLWK\u0003FRQVFLRXV\u0003PLVEHKDYLRU\u0003RU\u0003UHFNOHVVQHVV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u0016\u0013\u0011\u0003\u00033ODLQWL\u0d75V\u0003IXUWKHU DUJXH\u0003\n\nWKDW\u0003(1) IRUPHU\u0003HPSOR\\HH\u0003\u00b3DOOHJDWLRQV\u0003SURYLGH\u0003FRQWH[W\u000f\u00b4\u0003 \u0015 \u0003 WKH\u0003\u00b3IUDXG\u0003WRXFKHG\u0003FRUH\u0003\n\nRSHUDWLRQV\u000f\u00b4\u0003DQG\u0003 \u0016 \u00b3WHPSRUDO\u0003SUR[LPLW\\\u0003VXSSRUWV\u0003VFLHQWHU\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u001a\u201328.\n\n'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003WKHVH\u0003DOOHJDWLRQV\u0003DUH\u0003LQVX\u0d76FLHQW\u0003WR\u0003HVWDEOLVK\u0003VFLHQWHU\u000f\u0003DGGLQJ\u0003WKDW\u000f\u0003\n\n\n\n\n                                               32\n\f   Case 1:23-cv-10982-ER           Document 86         Filed 09/29/26      Page 33 of 39\n\n\n\n\nVLQFH\u0003WKH\u0003DOOHJHG\u0003IUDXG\u0003UHVXOWHG\u0003LQ\u0003WKH\u0003'HIHQGDQWV\u00b6\u0003\u00b3RZQ\u0003PDVVLYH\u0003\u00bfQDQFLDO\u0003ORVVHV\u000f\u00b4\u0003WKH\u0003\n\nPRUH\u0003FRPSHOOLQJ\u0003LQIHUHQFH\u0003LV\u0003D\u0003QRQ-FXOSDEOH\u0003RQH\u0011\u0003\u0003Doc. 84 at 13\u201314.\n\n       :KHQ\u0003D\u0003SODLQWL\u0d75\u0003IDLOV\u0003WR\u0003DOOHJH\u0003D\u0003PRWLYH\u0003WR\u0003FRPPLW\u0003IUDXG\u000f\u0003WKH\u0003SODLQWL\u0d75\u00b6V\u0003DOOHJDWLRQV\u0003\n\nWKDW\u0003LQGLFDWH\u0003D\u0003GHIHQGDQW\u00b6V\u0003UHFNOHVVQHVV\u0003\u00b3PXVW\u0003EH\u0003FRUUHVSRQGLQJO\\\u0003JUHDWHU\u0011\u00b4\u0003\u0003Kalnit v.\n\nEichler\u000f\u0003\u0015\u0019\u0017\u0003)\u0011\u0016G\u0003\u0014\u0016\u0014\u000f\u0003\u0014\u0017\u0015\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u0014 \u0003 LQWHUQDO\u0003TXRWDWLRQV and FLWDWLRQV\u0003RPLWWHG \u0011\u0003\u0003\n\n3ODLQWL\u0d75V\u0003PXVW\u0003SOHDG\u0003FRQGXFW\u0003WKDW\u0003LV\u0003\u00b3KLJKO\\\u0003XQUHDVRQDEOH\u00b4\u0003RU\u0003UH\u00c0HFWV\u0003\u00b3DQ\u0003H[WUHPH\u0003\n\nGHSDUWXUH\u00b4\u0003IURP\u0003WKH\u0003VWDQGDUGV\u0003RI\u0003RUGLQDU\\\u0003FDUH\u0011\u0003\u0003Board of Trustees of City of Ft.\n\nLauderdale General Employees\u2019 Retirement System v. Mechel OAO\u000f\u0003\u001b\u0014\u0014\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u001b\u0018\u0016\u000f\u0003\n\n869 (S.D.N.Y 2011), D\u09fc\u00b6G\u0003VXE\u0003QRP\u0011\u0003)UHGHULFN\u0003Y\u0011\u00030HFKHO\u00032$2\u000f\u0003\u0017\u001a\u0018\u0003)\u0011\u0003$SS\u00b6[\u0003\u0016\u0018\u0016\u0003 \u0015G\u0003&LU\u0011\u0003\n\n2012). 2IWHQ\u000f\u0003WKLV\u0003LV\u0003VDWLV\u00bfHG\u0003E\\ SOHDGLQJ\u0003SDUWLFXODUL]HG\u0003IDFWV\u0003WKDW\u0003VKRZ\u0003WKDW\u0003WKH\u0003\n\nGHIHQGDQWV\u0003KDG\u0003\u00b3NQRZOHGJH\u0003RI\u0003IDFWV\u0003RU\u0003DFFHVV\u0003WR\u0003LQIRUPDWLRQ\u0003FRQWUDGLFWLQJ\u0003WKHLU\u0003SXEOLF\u0003\n\nVWDWHPHQWV\u0011\u00b4\u0003\u0003Kalnit\u000f\u0003\u0015\u0019\u0017\u0003)\u0011\u0016G\u0003DW\u0003\u0014\u0017\u0015\u0011\u0003\u00033ODLQWL\u0d75V\u0003PXVW\u0003LGHQWLI\\\u0003WKH VSHFL\u00bfF UHSRUWV\u0003RU\u0003\n\nVWDWHPHQWV\u0003FRQWDLQLQJ\u0003WKH\u0003FRQWUDU\\ LQIRUPDWLRQ. Mechel OAO\u000f\u0003\u001b\u0014\u0014\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003DW\u0003\u001b\u0019\u001c.\n\n       8QGHU\u0003WKH\u0003\u00b3FRQVFLRXV\u0003PLVEHKDYLRU\u0003RU\u0003UHFNOHVVQHVV\u00b4\u0003SURQJ\u000f\u0003WR\u0003TXDOLI\\\u0003DV\u0003\u00b3VWURQJ\u000f\u00b4\u0003\n\nWKH\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0003IURP\u0003WKH\u0003IDFWV\u0003DOOHJHG\u0003\u00b3PXVW\u0003EH\u0003PRUH\u0003WKDQ\u0003PHUHO\\\u0003SODXVLEOH\u0003RU\u0003\n\nUHDVRQDEOH\u0011\u00b4\u0003 Tellabs\u000f\u0003\u0018\u0018\u0014\u00038\u00116\u0011\u0003DW\u0003\u0016\u0014\u0017\u0011\u0003\u0003,I\u0003DQ\u0003LQIHUHQFH\u0003RI\u0003IUDXGXOHQW\u0003LQWHQW\u0003LV\u0003QRW\u0003\u00b3DW\u0003OHDVW\u0003\n\nDV\u0003FRPSHOOLQJ\u00b4\u0003DV\u0003D\u0003FRQWUDU\\\u0003LQIHUHQFH\u000f\u0003LW\u0003LV\u0003LQDGHTXDWH\u000f\u0003HYHQ\u0003LQ\u0003D\u0003\u00b3FORVH\u0003FDVH\u0011\u00b4 Slayton,\n\n604 F.3d at \u001a\u001a\u001a\u0011\u0003\u0003\u00b3\u0e60XV\u000f\u0003D\u0003FRPSODLQW\u0003ZKLFK\u0003IDLOV\u0003WR\u0003DGGXFH\u0003DQ\\\u0003VSHFL\u00bfF\u0003IDFWV\u0003VXSSRUWLQJ\u0003\n\nDQ\u0003LQIHUHQFH\u0003RI\u0003NQRZOHGJHDEOH\u0003SDUWLFLSDWLRQ\u0003LQ\u0003WKH\u0003DOOHJHG\u0003IUDXG\u000f\u0003ZLOO\u0003QRW\u0003VDWLVI\\\u0003HYHQ\u0003D\u0003\n\nUHOD[HG\u0003VWDQGDUG\u0011\u00b4\u0003 Faulkner v. Verizon Communications, Inc., \u0014\u0018\u0019\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0016\u001b\u0017\u000f\u0003\u0016\u001c\u0016\u0003\n\n(S.D.N.Y 2001) (LQWHUQDO\u0003TXRWDWLRQV\u0003DQG\u0003citationV omitted).\n\n       \u0e60H\u0003SULRU\u0003RSLQLRQ\u0003RI\u0003WKLV\u0003&RXUW\u0003GLUHFWO\\\u0003DGGUHVVHd DQG\u0003UHMHFWed 3ODLQWL\u0d75V\u00b6\u0003\n\nFRQWHQWLRQV\u0003DERXW\u0003WKH\u0003IRUPHU\u0003HPSOR\\HH DOOHJDWLRQV\u0003DQG\u0003WKDW\u0003WKH\u0003IUDXG\u0003WRXFKHG\u0003WKH\u0003\n\n&RPSDQ\\\u00b6V\u0003FRUH\u0003RSHUDWLRQV\u0011\u0003\u0003'RF\u0011\u0003\u001a\u0016\u0003DW\u0003\u0016\u001c\u201341.\n\n       ,Q\u0003UHJDUG\u0003WR\u0003WKH\u0003IRUPHU\u0003HPSOR\\HH DOOHJDWLRQV\u0003SURYLGLQJ\u0003FRQWH[W\u000f\u0003\u00b3>L@I\u0003SODLQWL\u0d75V\u0003UHO\\\u0003\n\nRQ\u0003DOOHJDWLRQV\u0003WKDW\u0003WKH\u0003GHIHQGDQWV\u0003KDG\u0003DFFHVV\u0003WR\u0003IDFWV\u0003FRQWUDGLFWLQJ\u0003WKHLU\u0003SXEOLF\u0003\n\nVWDWHPHQWV\u000f\u0003SODLQWL\u0d75V\u0003PXVW\u0003VSHFL\u00bfFDOO\\\u0003LGHQWLI\\\u0003WKH\u0003UHSRUWV\u0003RU\u0003VWDWHPHQWV\u0003FRQWDLQLQJ\u0003WKLV\u0003\n\n                                              33\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26      Page 34 of 39\n\n\n\n\nLQIRUPDWLRQ\u0011\u00b4 In re General Electric Co. Securities Litigation, 856 F. 6XSS\u0011\u0003\u0015G\u0003\u0019\u0017\u0018\u000f\u0003\u0019\u0018\u001c\u0003\n\n(S.D.N.Y. 2012) (LQWHUQDO\u0003TXRWDWLRQ\u0003PDUNV\u0003DQG\u0003FLWDWLRQ\u0003RPLWWHG \u0011\u0003\u0003\u0e60H\u00036$&\u0003RQO\\\u0003DOOHJHV\u0003\n\nWKDW\u0003RQH\u0003RI\u0003WKH\u0003IRUPHU\u0003HPSOR\\HHV\u000f\u0003)(\u0018\u000f\u0003VSRNH\u0003WR\u0003DQ\\\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0011\u0003\u0003\u0088\u0003\u0014\u0013\u001b\u0011\u0003\u0003\n\n\u00b3>7@KH\u0003ODZ\u0003LV\u0003DEXQGDQWO\\\u0003FOHDU\u0003WKDW\u00b4 LQ\u0003FDVHV\u0003ZKHUH\u0003WKH\u0003ZLWQHVVHV\u0003KDG\u0003QR\u0003FRQWDFW\u0003ZLWK\u0003WKH\u0003\n\niQGLYLGXDO\u0003dHIHQGDQWV\u000f\u0003WKHLU\u0003\u00b3DOOHJDWLRQV\u0003DUH\u0003LQVX\u0d76FLHQW\u0003WR\u0003VXSSRUW\u0003VFLHQWHU\u0011\u00b4\u0003 Wilbush v.\n\nAmbac Financial Group, Inc.\u000f\u0003\u0015\u001a\u0014\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0017\u001a\u0016\u000f\u0003\u0017\u001c\u001a\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u001a LQWHUQDO\u0003\n\nTXRWDWLRQV DQG\u0003FLWDWLRQV omitted). )(\u0018\u0003DOOHJHV\u0003WKDW\u0003LQ\u0003$SULO\u0003\u0015\u0013\u0015\u0016\u000f\u0003-RUGDQ\u0003VDLG\u0003WKDW\u0003PDMRU\u0003\n\nLQYHVWRUV\u0003PD\\\u0003SXOO\u0003WKHLU\u0003IXQGLQJ\u0003EHFDXVH\u0003RI\u0003ORQJVWDQGLQJ\u0003LQWHUQDO\u0003GH\u00bfFLHQFLHV. \u0088\u0003\u0014\u0013\u001b\u0011\u0003\u0003$V\u0003\n\nGHWHUPLQHG\u0003E\\\u0003WKLV\u0003&RXUW\u0003EHIRUH\u000f\u0003WKLV\u0003DOOHJDWLRQ\u0003LV\u0003LQVX\u0d76FLHQW\u0003WR\u0003DGHTXDWHO\\\u0003DOOHJH\u0003\n\nVFLHQWHU\u0011\u0003\u0003See Doc. 73 at 39\u201340.\n\n       3ODLQWL\u0d75V\u0003DOVR\u0003DOOHJH\u0003D\u0003FRUH\u0003RSHUDWLRQV\u0003WKHRU\\\u000f\u0003DUJXLQJ\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u0003NQHZ\u0003DERXW\u0003WKH\u0003DOOHJHG\u0003RPLVVLRQV\u0003EHFDXVH\u0003WKH\\\u0003FRQFHUQHG mDWWHUV\u0003FHQWUDO\u0003WR\u0003\n\n)DUIHWFK\u00b6V EXVLQHVV\u0003DQG\u0003VXUYLYDO\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u001a\u0011\u0003\u0003+RZHYHU\u000f\u0003DV\u0003VWDWHG\u0003LQ\u0003WKLV\u0003&RXUW\u00b6V\u0003\n\nSUHYLRXV\u0003RSLQLRQ\u000f\u0003'RF\u0011\u0003\u001a\u0016\u0003DW\u0003\u0017\u0013\u201341, WKH\u0003\u00b3FRUH\u0003RSHUDWLRQV\u00b4\u0003WKHRU\\\u0003DW\u0003PRVW\u0003FRQVWLWXWHV\u0003\n\n\u00b3VXSSOHPHQWDO\u0003VXSSRUW\u00b4\u0003IRU\u0003DOOHJLQJ\u0003VFLHQWHU\u0003EXW\u0003GRHV\u0003QRW\u0003LQGHSHQGHQWO\\\u0003HVWDEOLVK\u0003\n\nVFLHQWHU\u000f\u0003see New Orleans Employees Retirement System v. Celestica, Inc.\u000f\u0003\u0017\u0018\u0018\u0003)\u0011\u0003$SS\u00b6[\u0011\u0003\n\n10, 14 Q\u0011\u0016\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0014\u0014 \u0003 GHFOLQLQJ\u0003WR\u0003GHFLGH\u0003ZKHWKHU\u0003WKH\u0003IDFW\u0003WKDW\u0003WKH\u0003DOOHJHG\u0003\n\nPLVUHSUHVHQWDWLRQV\u0003UHODWHG\u0003WR\u0003WKH\u0003GHIHQGDQW\u00b6V\u0003\u00b3FRUH\u0003RSHUDWLRQV\u00b4\u0003ZDV\u0003VX\u0d76FLHQW\u0003RQ\u0003LWV\u0003RZQ\u0003\n\nWR\u0003HVWDEOLVK\u0003VFLHQWHU\u0003EXW\u0003QRWLQJ\u0003WKDW\u0003WKH\u0003FRQFHSW\u0003WKDW\u0003\u00b3DOOHJDWLRQV\u0003RI\u0003D\u0003FRPSDQ\\\u00b6V\u0003FRUH\u0003\n\nRSHUDWLRQV\u0003\u0011\u0003\u0011\u0003\u0011\u0003FDQ\u0003SURYLGH\u0003VXSSOHPHQWDO\u0003VXSSRUW\u0003IRU\u0003DOOHJDWLRQV\u0003RI\u0003VFLHQWHU\u000f\u0003HYHQ\u0003LI\u0003WKH\\\u0003\n\nFDQQRW\u0003HVWDEOLVK\u0003VFLHQWHU\u0003LQGHSHQGHQWO\\\u00b4\u0003KDV\u0003VXSSRUW\u0003LQ\u0003WKH\u0003FDVH\u0003ODZ \u001e see also In re\n\nWachovia Equity Securities Litigation\u000f\u0003\u001a\u0018\u0016\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0016\u0015\u0019\u000f\u0003\u0016\u0018\u0016\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0014 \u00b3[T]KH\u0003\n\n&RXUW\u0003FRQVLGHUV\u0003\u00b5FRUH\u0003RSHUDWLRQV\u00b6\u0003DOOHJDWLRQV\u0003WR\u0003FRQVWLWXWH\u0003VXSSOHPHQWDU\\\u0003EXW\u0003QRW\u0003\n\nLQGHSHQGHQWO\\\u0003VX\u0d76FLHQW\u0003PHDQV\u0003WR\u0003SOHDG\u0003VFLHQWHU\u0011\u00b4 \u001e Freudenberg v. E*Trade Financial\n\nCorp.\u000f\u0003\u001a\u0014\u0015\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0014\u001a\u0014\u000f\u0003\u0015\u0013\u0014\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0013 \u00bfQGLQJ\u0003WKDW\u0003WKH\u0003SODLQWL\u0d75V\u0003DGHTXDWHO\\\u0003\n\nSOHDGed VFLHQWHU\u0003ZKHUH\u0003RQH\u0003RI\u0003PDQ\\\u0003DOOHJDWLRQV\u0003ZDV\u0003WKDW\u0003WKH\u0003PLVVWDWHPHQWV\u0003FRQFHUQHG\u0003WKH\u0003\n\nGHIHQGDQWV\u00b6\u0003FRUH\u0003RSHUDWLRQV \u0011\n\n                                             34\n\f     Case 1:23-cv-10982-ER            Document 86           Filed 09/29/26       Page 35 of 39\n\n\n\n\n        \u0e60LV\u0003OHDYHV\u00033ODLQWL\u0d75V\u00b6\u0003DUJXPHQW\u0003WKDW\u0003\u00b3WHPSRUDO\u0003SUR[LPLW\\\u0003VXSSRUWV\u0003VFLHQWHU\u00b4\u0003\n\nEHFDXVH\u0003)DUIHWFK\u0003UHYHDOHG\u0003WKH\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003LQ\u0003'HFHPEHU\u0003\u0015\u0013\u0015\u0016\u000f\u0003ZKLFK\u0003ZDV\u0003\n\nVRRQ\u0003DIWHU\u0003WKH ,QGLYLGXDO\u0003'HIHQGDQWV\u0003PDGH VRPH\u0003RI WKH FKDOOHQJHG\u0003VWDWHPHQWV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\n\n\u0015\u001b\u0011\u0003\u0003\u00b3>+@RZHYHU\u000f\u0003\u00b5FRXUWV\u0003LQ\u0003WKLV\u0003GLVWULFW\u0003KDYH\u0003KHOG\u0003WKDW\u0003WHPSRUDO\u0003SUR[LPLW\\\u0003DORQH\u0003GRHV\u0003QRW\u0003\n\nUDLVH\u0003D\u0003FLUFXPVWDQWLDO\u0003LQIHUHQFH\u0003RI\u0003IUDXG\u0011\u00b6\u00b4\u0003\u0003In re Supercom Inc. Securities Litigation, No.\n\n15 Civ. 9650 (PGG), 2018 WL 4926442, at *32 (S.D.N.Y. Oct. 10, 2018) TXRWLQJ\n\nPearlstein v. BlackBerry Limited\u000f\u0003\u001c\u0016\u0003)\u0011\u00036XSS. 3d 233, 247 (S.D.N.Y. 2015)). (YHQ\u0003ZKHQ\u0003\n\nFRQVLGHUHG\u0003WRJHWKHU\u000f\u0003QRQH\u0003RI\u00033ODLQWL\u0d75V\u00b6\u0003DOOHJDWLRQV\u0003SURYLGH\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0011\n        c. \u0b61H\u00030RUe Compelling Non-Culpable Inference\n        \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003FRQWHQG\u0003WKDW\u0003\u00b3WKH\u0003IDFW\u0003WKDW\u0003>WKH\\@\u0003LQFUHDVHG\u0003WKHLU\u0003VKDUHV\u0003\n\nIURP\u0003\u0015\u0013\u0015\u0015\u0003WR\u0003\u0015\u0013\u0015\u0016\u0003DQG\u0003UHWDLQHG\u0003WKHP\u0003WR\u0003WKH\u0003YHU\\\u0003HQG\u00b4\u0003LV\u0003LQFRQVLVWHQW\u0003ZLWK\u0003DQ\\\u0003LQIHUHQFH\u0003\n\nWKDW\u0003WKH\\\u0003NQHZ\u0003WKH\u0003&RPSDQ\\\u0003ZDV\u0003LQ\u0003VHYHUH\u0003\u00bfQDQFLDO\u0003WURXEOH\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u0016\u0015\u0011\u0003\u0003\u0e60H\\\u0003\n\nSURSRVH\u0003WKDW\u0003WKH\u0003PRUH\u0003UDWLRQDO\u0003LQIHUHQFH\u0003LV\u0003WKDW\u0003WKH\\\u0003EHOLHYHG\u0003LQ\u0003)DUIHWFK\u0003DQG\u0003WKH\u0003\n\nVWDWHPHQWV\u0003WKH\\\u0003PDGH\u000f\u0003EXW\u000f\u0003XOWLPDWHO\\\u000f\u0003WKH\u0003&RPSDQ\\\u0003IDLOHG\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0017\u0003DW\u0003\u0014\u0017\u201315. PlaLQWL\u0d75V\u0003\n\nVWDWH\u0003WKDW\u0003ERWK\u0003-RUGDQ\u0003DQG\u00033KDLU\u0003VROG\u0003VKDUHV\u0003LQ\u0003$XJXVW\u0003\u0015\u0013\u0015\u0016\u000f\u0003ZKLFK\u0003ZDV\u0003DURXQG\u0003WKH\u0003\u00bfUVW\u0003\n\nFRUUHFWLYH\u0003GLVFORVXUH\u000f\u0003DQG\u0003WKDW\u00031HYHV\u00b6\u0003DFWLYLW\\\u2014PRYLQJ\u0003VKDUHV\u0003WR\u0003D\u0003KROGLQJ\u0003FRPSDQ\\\u2014\n\nDOVR\u0003GRHV\u0003QRW\u0003UH\u00c0HFW\u0003FRQ\u00bfGHQFH\u0003LQ\u0003)DUIHWFK\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u001b\u2013\u0015\u001c\u0011\u0003\u00033ODLQWL\u0d75V\u0003DOVR\u0003UHDVVHUW\u0003\n\nWKDW\u0003WKH\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003GHYHORSV\u0003D\u0003VWURQJ\u0003LQIHUHQFH\u0003RI\u0003VFLHQWHU\u0011\u0003\u0003Id. at 29\u201330.\n        \u0e60URXJKRXW\u0003WKH\u0003&ODVV\u00033HULRG\u000f\u0003HDFK\u0003RI\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003PDLQWDLQHG\u0003\n\nRZQHUVKLS\u0003RYHU\u0003D\u0003VXEVWDQWLDO\u0003QXPEHU\u0003RI\u0003VKDUHV\u0011 10 :KLOH\u0003VDOHV\u0003RI\u0003VWRFN\u0003\u00b3PDGH\u0003D\u0003VKRUW\u0003WLPH\u0003\n                                                       9F\n\n\n\n\nEHIRUH\u0003D\u0003QHJDWLYH\u0003SXEOLF\u0003DQQRXQFHPHQW\u0003DUH\u00b4\u0003VXVSHFW\u000f\u0003In re Oxford Health Plans, Inc., 187\n\n)\u00115\u0011'\u0011\u0003\u0014\u0016\u0016\u000f\u0003\u0014\u0016\u001c\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0014\u001c\u001c\u001c \u000f\u0003RWKHU\u0003IDFWRUV\u0003DUH\u0003DOVR\u0003FRQVLGHUHG\u000f\u0003VXFK\u0003DV\u0003\u00b3WKH\u0003DPRXQW\u0003\n\nRI\u0003SUR\u00bfW\u0003IURP\u0003WKH\u0003VDOHV\u000f\u0003WKH\u0003SRUWLRQ\u0003RI\u0003VWRFNKROGLQJV\u0003VROG\u000f\u0003WKH\u0003FKDQJH\u0003LQ\u0003YROXPH\u0003RI\u0003LQVLGHU\u0003\n\nVDOHV\u000f\u0003DQG\u0003WKH\u0003QXPEHU\u0003RI\u0003LQVLGHUV\u0003VHOOLQJ\u000f\u00b4\u0003In re Scholastic Corp. Securities Litigation,\n\n252 F.3d 63, 74\u2013\u001a\u0018\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0013\u0014 \u0003 FLWLQJ Rothman v. Gregor, \u0015\u0015\u0013\u0003)\u0011\u0016G\u0003\u001b\u0014\u000f\u0003\u001c\u0017\u0003 \u0015G\u0003&LU\u0011\u0003\n\n10\n  2Q\u0003'HFHPEHU\u0003\u0016\u0014\u000f\u0003\u0015\u0013\u0015\u0016\u000f 1HYHV\u0003RZQHG\u0003\u0017\u001c\u000f\u001b\u001a\u0019\u000f\u0015\u0015\u0016\u0003VKDUHV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0014-\u0015\u0015\u0011\u0003\u00032Q\u0003$XJXVW\u0003\u0016\u0013\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u0003-RUGDQ\u0003\nRZQHG\u0003\u0014\u000f\u0019\u0013\u0017\u000f\u0014\u001b\u0018\u0003VKDUHV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0014-\u0015\u0013\u0011\u0003\u00032Q\u0003$XJXVW\u0003\u0017\u000f\u0003\u0015\u0013\u0015\u0016\u000f\u00033KDLU\u0003RZQHG\u0003\u0014\u000f\u0015\u0014\u001a\u000f\u0015\u001b\u0016\u0003VKDUHV\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0014-19.\n\n                                                  35\n\f     Case 1:23-cv-10982-ER              Document 86           Filed 09/29/26           Page 36 of 39\n\n\n\n\n2000)). \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003VWDWH\u000f\u0003DQG\u00033ODLQWL\u0d75V\u0003GR\u0003QRW\u0003GLVSXWH\u000f\u0003WKDW\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u0003LQFUHDVHG\u0003WKHLU\u0003VKDUHV\u0003IURP\u0003\u0015\u0013\u0015\u0015\u0003WR\u0003\u0015\u0013\u0015\u0016\u000f\u0003'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u0016\u0015\u000f\u0003ZKLFK\u0003LV\u0003LQFRQVLVWHQW\u0003\n\nZLWK\u0003DQ\u0003LQIHUHQFH\u0003RI\u0003IUDXGXOHQW\u0003LQWHQW\u000f\u0003see In re Regeneron Pharmaceuticals, Inc.\n\nSecurities Litigation, No. 3 Civ. 3111 (RWS), 2005 WL 225288, at * 22 (S.D.N.Y. Feb. 1,\n\n\u0015\u0013\u0013\u0018 \u0003 \u00b3,W\u0003LV\u0003ZHOO\u0003VHWWOHG\u0003WKDW\u0003VXFK\u0003DQ\u0003DFWLRQ\u2014i.e., WKH\u0003SXUFKDVH\u0003RI\u0003DGGLWLRQDO\u0003FRPSDQ\\\u0003\n\nVKDUHV\u0003GXULQJ\u0003WKH FODVV SHULRG\u2014LV LQFRQVLVWHQW ZLWK\u0003DQ\u0003LQWHQW\u0003WR\u0003FRPPLW\u0003IUDXG\u0011\u00b4 \u0011\u0003 :KLOH\u0003\n\n3ODLQWL\u0d75V\u0003SRLQW\u0003RXW\u0003WKDW\u0003-RUGDQ\u0003DQG\u00033KDLU\u0003ERWK\u0003VROG\u0003VKDUHV\u0003LQ\u0003$XJXVW\u0003\u0015\u0013\u0015\u0016\u000f\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0015\u001b\u000f\u0003\n\nWKH\u0003UHOHYDQW\u0003SHULRG\u0003LV\u0003WKH\u0003&ODVV\u00033HULRG\u0003IURP\u0003'HFHPEHU\u0003\u0014\u000f\u0003\u0015\u0013\u0015\u0015\u0003WR\u0003'HFHPEHU\u0003\u0014\u001a\u000f\u0003\u0015\u0013\u0015\u0016\u0011\u0003\u0003\n\n\u0088 \u0014\u0011\u0003\u0003%RWK\u0003-RUGDQ\u0003DQG\u00033KDLU\u0003LQFUHDVHG\u0003WRWDO\u0003VKDUHV\u0003IURP\u0003\u0015\u0013\u0015\u0015\u0003DQG\u0003\u0015\u0013\u0015\u0016\u000f\u0003DQG\u0003WKH\u0003$XJXVW\u0003\n\nVDOHV\u0003ZHUH\u0003QRW\u0003KXJHO\\\u0003VLJQL\u00bfFDQW\u0003LQ\u0003FRPSDULVRQ\u0003WR\u0003WKHLU\u0003WRWDO\u0003VKDUHV\u0011 11 See Ressler v. Liz\n                                                                                 10F\n\n\n\n\nClaiborne, Inc.\u000f\u0003\u001a\u0018\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0017\u0016\u000f\u0003\u0019\u0013\u0003 (\u0011'\u00111\u0011<\u0011\u0003\u0014\u001c\u001c\u001b \u000f\u0003D\u09fc\u00b6G\u0003VXE\u0003QRP\u0011\u0003)LVKEDXP\u0003Y\u0011\u0003/L]\u0003\n\nClaiborne, Inc.\u000f\u0003\u0014\u001b\u001c\u0003)\u0011\u0016G\u0003\u0017\u0019\u0013\u0003 \u0015G\u0003&LU\u0011\u0003\u0014\u001c\u001c\u001c \u0003 \u00b3,QIHUHQFHV\u0003RI\u0003VFLHQWHU\u0003FDQ\u0003EH\u0003XQGHUPLned\n\nZKHQ\u0003[] LQVLGHUV\u00b6 VDOHV\u0003RI\u0003VWRFN\u0003DUH\u0003R\u0d75VHW\u0003E\\\u0003HYHQ\u0003ODUJHU\u0003VWRFN\u0003DFTXLVLWLRQV\u0003GXULQJ\u0003WKH\u0003\n\nUHOHYDQW\u0003WLPH\u0003SHULRG\u0011\u00b4 \u0011\n\n         $V\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u000f\u0003WKH\u0003PRUH\u0003FRPSHOOLQJ\u0003LQIHUHQFH\u0003LV\u0003WKDW\u0003WKH\\\u0003\n\n\u00b3PDGH\u0003JRRG\u0003IDLWK\u0003DQG\u0003DFFXUDWH\u0003GLVFORVXUHV\u0003DERXW\u0003WKH\u0003PDQ\\\u0003ULVNV\u0003)DUIHWFK\u0003IDFHG\u0003\u0011\u0003\u0011\u0003\u0011\u0003EXW\u0003\n\nXOWLPDWHO\\\u0003VXFFXPEHG\u0003WR\u0003D\u0003GRZQWXUQ\u0003LQ\u0003WKH\u0003OX[XU\\\u0003IDVKLRQ\u0003DQG\u0003H-FRPPHUFH\u0003LQGXVWU\\\u0003LQ\u0003\n\nODWH\u0003\u0015\u0013\u0015\u0016\u0011\u00b4\u0003\u0003'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u0016\u0015\u0011\u0003\u0003\u0e60H\u0003H[LVWHQFH\u0003RI\u00033URMHFW\u0003$WKHQD\u0003GRHV\u0003QRW\u0003LPSO\\\u0003WKDW\u0003WKH\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003NQHZ\u0003)DUIHWFK\u0003ZDV\u0003JRLQJ\u0003WR\u0003IDFH\u0003D\u0003\u00bfQDQFLDO\u0003FULVLV\u000f\u0003DQG\u00033ODLQWL\u0d75V\u0003\n\nDFFRUGLQJO\\\u0003IDLO\u0003WR\u0003VX\u0d76FLHQWO\\\u0003DOOHJH\u0003VFLHQWHU\u0011\n             3ODLQWL\u09fcV\u0003+DYH\u00031RW\u0003$GHTXDWHO\\\u00033OHaded Scheme Liability Under Rule 10b-\n             5(a) and (c)\n         \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u00033ODLQWL\u0d75V\u00b6\u0003VFKHPH\u0003OLDELOLW\\\u0003FODLP\u0003PXVW\u0003IDLO\u0003\n\nEHFDXVH\u0003 \u0014 WKH\u00036$&\u0003GRHV\u0003QRW\u0003LQFOXGH a VHSDUDWH\u0003FRXQW IRU\u0003VFKHPH\u0003OLDELOLW\\\u000f (2) 3ODLQWL\u0d75V\u0003\n\nIDLO\u0003WR\u0003VX\u0d76FLHQWO\\\u0003SOHDG\u0003VFLHQWHU\u000f and (3) WKH\u00036$&\u0003IDLOV\u0003WR\u0003DOOHJH\u0003GHFHSWLYH\u0003DFWV\u0003EH\\RQG\u0003\n\n11\n  3ODLQWL\u0d75V\u0003DOVR\u0003DUJXH\u0003WKDW\u0003VLQFH\u00031HYHV\u0003PRYHG\u0003KLV\u0003VKDUHV\u0003LQWR\u0003D\u0003KROGLQJ\u0003FRPSDQ\\\u0003LW\u0003LPSOLHV\u0003WKDW\u0003KH\u0003GLG\u0003QRW\u0003\nKDYH\u0003\u00b3FRQ\u00bfGHQFH\u0003LQ\u0003)DUIHWFK\u00b6V\u0003SURVSHFWV\u000f\u00b4\u0003EXW\u0003KH\u0003UHWDLQHG\u0003RZQHUVKLS\u0003RI\u0003RYHU\u0003\u001a\u0003PLOOLRQ\u0003&ODVV\u0003$\u0003VKDUHV\u0003DQG\u0003\n\u0017\u0015\u000f\u001b\u0018\u001b\u000f\u0013\u001b\u0013\u0003&ODVV\u0003%\u0003VKDUHV\u0003RQ\u0003'HFHPEHU\u0003\u0016\u0014\u000f\u0003\u0015023. Doc. 81-22.\n\n                                                    36\n\f   Case 1:23-cv-10982-ER          Document 86         Filed 09/29/26      Page 37 of 39\n\n\n\n\nWKH\u0003VXSSRVHG\u0003PLVVWDWHPHQWV\u0003DQG\u0003RPLVVLRQV\u0011 'RF\u0011\u0003\u001b\u0013\u0003DW\u0003\u0016\u0016\u0011\u0003\u00033ODLQWL\u0d75V\u0003FRQWHQG\u0003WKDW\u0003WKH\\\u0003\n\nSOHDGHG\u0003D\u0003\u00b3FRKHVLYH\u000f\u0003GHFHSWLYH\u0003FRXUVH\u0003RI\u0003FRQGXFW\u00b4\u0003E\\\u0003DOOHJLQJ WKDW\u0003WKH\u0003,QGLYLGXDO\u0003\n\n'HIHQGDQWV\u0003SXUVXHG\u00033URMHFW\u0003$WKHQD\u0003ZKLOH\u0003VLPXOWDQHRXVO\\\u0003WHOOLQJ\u0003WKH\u0003SXEOLF\u0003WKDW\u0003WKH\\\u0003\n\nGLGQ\u00b6W\u0003QHHG\u0003WR\u0003SXUVXH\u0003VXFK\u0003DQ\u0003LQLWLDWLYH. Doc. 83 at 30. \u0e60H\\\u0003DOVR\u0003DUJXH\u0003WKDW\u0003WKH\\\u0003\n\nVX\u0d76FLHQWO\\\u0003DOOHJHG\u0003GHFHSWLYH\u0003FRQGXFW\u0003WKDW\u0003JRHV\u0003EH\\RQG\u0003WKH\u0003PLVVWDWHPHQWV\u0011\u0003\u0003Id. at 32. \u0e60H\u0003\n\n,QGLYLGXDO\u0003'HIHQGDQWV\u0003FRXQWHU\u0003WKDW\u0003 \u0014 WKH\\\u0003QHYHU\u0003GHQLHG\u0003DQ\\\u0003QHHG\u0003WR\u0003UDLVH\u0003FDSLWDO\u000f\u0003DQG\u0003\n\n(2) WKH\u0003DOOHJDWLRQ\u0003IDLOV\u0003WR\u0003DOOHJH\u0003DQ\\\u0003FRQGXFW\u0003GLVWLQFW\u0003IURP\u0003WKH\u0003PLVVWDWHPHQWV\u0003WKHPVHOYHV\u0011\u0003\u0003\n\nDoc. 84 at 15.\n\n       6FKHPH\u0003OLDELOLW\\\u0003DULVHV\u0003ZKHQ\u0003GHIHQGDQWV\u0003HQJDJH\u0003LQ\u0003GHFHSWLYH\u0003FRQGXFW\u0003LQ\u0003\n\nFRQMXQFWLRQ\u0003ZLWK\u0003GHFHSWLYH\u0003VWDWHPHQWV\u0011 See SEC v. CKB168 Holdings, Limited, 210 F.\n\n6XSS\u0011\u0003\u0016G\u0003\u0017\u0015\u0014\u000f\u0003\u0017\u0017\u0018\u0003 (\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0019 . 7R\u0003VWDWH\u0003D\u0003FODLP\u0003IRU\u0003VFKHPH\u0003OLDELOLW\\\u000f\u0003D\u0003SODLQWL\u0d75\u0003PXVW\u0003\n\nSUHVHQW\u0003IDFWV\u0003VKRZLQJ \u00b3WKDW\u0003WKH\u0003GHIHQGDQW (1) FRPPLWWHG\u0003D\u0003PDQLSXODWLYH RU\u0003GHFHSWLYH act,\n\n(2) LQ\u0003IXUWKHUDQFH\u0003RI\u0003WKH\u0003DOOHJHG\u0003VFKHPH\u0003WR\u0003GHIUDXG\u000f\u0003 \u0016 [ZLWK] VFLHQWHU\u000f\u0003DQG\u0003 \u0017\n\nUHOLDQFH\u0011\u00b4 Puddu v. 6D Global Technologies, Inc., No. 15 Civ. 8061 (AJN), 2021 WL\n\n\u0014\u0014\u001c\u001b\u0018\u0019\u0019\u000f\u0003DW\u0003 \u001c\u0003 6\u0011'\u00111\u0011<\u0011\u00030DU\u0011\u0003\u0016\u0013\u000f\u0003\u0015\u0013\u0015\u0014 DOWHUDWLRQ\u0003LQ\u0003RULJLQDO \u0003 TXRWLQJ SEC v. Lee, 720\n\n)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0016\u0013\u0018\u000f\u0003\u0016\u0015\u0018\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0014\u0013 .\n\n       \u0e60H\u00036$&\u0003VWLOO\u0003IDLOV\u0003WR\u0003PHHW\u0003WKH\u0003SOHDGLQJ\u0003UHTXLUHPHQW IRU\u0003VFKHPH\u0003OLDELOLW\\. See In\n\nre Teva Securities Litigation\u000f\u0003\u0018\u0014\u0015\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0016\u0015\u0014\u000f\u0003\u0016\u0016\u001a\u0003 '\u0011\u0003&RQQ\u0011\u0003\u0015\u0013\u0015\u0014 \u00b3&RXUWV\u0003ULJKWO\\\u0003\n\nLQVLVW\u0003WKDW\u0003D\u0003SODLQWL\u0d75\u0003ZKR\u0003LQWHQGV\u0003WR\u0003EULQJ\u0003D\u00035XOH\u0003\u0014\u0013E-5 claLP\u0003EDVHG\u0003RQ\u0003ERWK\u0003PLVVWDWHPHQW\u0003\n\nDQG\u0003VFKHPH\u0003OLDELOLW\\\u0003PXVW\u0003GR VR\u0003FOHDUO\\\u0003DQG\u0003VSHFL\u00bfFDOO\\\u000f\u00b4\u0003W\\SLFDOO\\\u0003\u00b3LQ\u0003WZR\u0003VHSDUDWH\u0003\n\nFRXQWV.\u00b4 \u0003 FLWLQJ In re Smith Barney Transfer Agent Litigation\u000f\u0003\u001b\u001b\u0017\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0014\u0018\u0015\u000f\u0003\u0014\u0019\u0013\u2013\n\n61 (S.D.N.Y. 2012)). ,Q\u0003DQ\\\u0003HYHQW\u000f\u00033ODLQWL\u0d75V\u0003IDLO\u0003WR\u0003VDWLVI\\\u0003WKH\u0003IRXU\u0003HOHPHQWV\u0003UHTXLUHG\u0003WR\u0003\n\nDOOHJH\u0003VFKHPH\u0003OLDELOLW\\\u0011\u0003\u0003)LUVW\u000f\u00033ODLQWL\u0d75V\u00b6\u0003WKHRU\\\u0003RI\u0003PDWHULDO\u0003PLVUHSUHVHQWDWLRQV\u0003DQG\u0003\n\nRPLVVLRQV\u0003UHOLHV\u0003RQ\u0003WKH\u0003IDFW\u0003WKDW\u0003WKH\\\u0003PDGH\u0003WKHVH\u0003VWDWHPHQWV\u0003ZKLOH\u0003SXUVXLQJ\u00033URMHFW\u0003\n\n$WKHQD\u000f\u0003ZKLFK\u0003DOOHJHGO\\\u0003FRQWUDGLFWHG\u0003WKH\u0003VWDWHPHQWV\u000f\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0014\u0016\u201323, EXW\u00033ODLQWL\u0d75V\u0003IDLO\u0003\n\nto DOOHJH\u0003D\u0003GLVWLQctive act RI\u0003GHFHSWLRQ\u0003RU\u0003PDQLSXODWLRQ\u0011\u0003\u0003\u00b3>&@RXUWV\u0003KDYH\u0003SURKLELWHG\u0003\n\nSODLQWL\u0d75V\u0003IURP\u0003UHFDVWLQJ\u0003WKHLU\u0003SOHDGLQJV\u0003LQ\u0003WKLV\u0003ZD\\\u0011\u00b4\u0003\u0003SEC v. Rio Tinto plc\u000f\u0003\u0017\u0014\u0003)\u0011\u0017WK\u0003\u0017\u001a\u000f\u0003\n\n                                             37\n\f   Case 1:23-cv-10982-ER           Document 86        Filed 09/29/26       Page 38 of 39\n\n\n\n\n\u0018\u0018\u0003 \u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0015\u0015 \u0003 FLWLQJ In re Alstom SA\u000f\u0003\u0017\u0013\u0019\u0003)\u0011\u00036XSS\u0011\u0003\u0015G\u0003\u0017\u0016\u0016\u000f\u0003\u0017\u001a\u0018\u0003 6\u0011'\u00111\u0011<\u0011\u0003\u0015\u0013\u0013\u0018 ).\n\nSecond, aV\u0003GLVFXVVHG\u0003DERYH\u000f\u00033ODLQWL\u0d75V\u0003KDYH\u0003QRW\u0003VX\u0d76FLHQWO\\\u0003SOHDGHG\u0003VFLHQWHU\u0003IRU WKH\u0003\n\n,QGLYLGXDO 'HIHQGDQWV\u0011\u0003\u0003\u0e60HUHIRUH\u000f\u00033ODLQWL\u0d75V\u00b6\u0003VFKHPH\u0003OLDELOLW\\\u0003FODLPV\u0003IDLO\u0003DV\u0003WR\u0003WKDW\u0003\n\nelement. Menaldi v. Och-=L\u09fc\u0003&DSLWDO\u0003Management Group LLC\u000f\u0003\u0015\u001a\u001a\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0018\u0013\u0013\u000f\u0003\u0018\u0014\u001a\u0003\n\n(S.D.N.Y. 2017) \u00b3SFKHPH\u0003OLDELOLW\\\u0003FODLPV\u0003DUH\u0003VXEMHFW\u0003WR\u0003WKH\u000336/5$\u0003SOHDGLQJ\u0003VWDQGDUG\u0003\n\nZLWK\u0003UHVSHFW\u0003WR\u0003VFLHQWHU\u0011\u00b4 \u0011\u0003\u00033ODLQWL\u0d75V\u000f\u0003WKHUHIRUH\u000f\u0003KDYH\u0003IDLOHG\u0003WR\u0003DOOHJH\u0003WZR\u0003RI\u0003WKH\u0003HOHPHQWV\u0003\n\nUHTXLUHG\u0003WR\u0003VXFFHVVIXOO\\\u0003SOHDG\u0003D VFKHPH\u0003OLDELOLW\\ claim.\n          C. Section 20(a) Liability\n       \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH\u0003WKDW\u0003\u00b33ODLQWL\u0d75V\u00b6\u0003Section \u0015\u0013 D \u0003FODLP\u0003IDLOV\u0003EHFDXVH\u0003\n\nWKH\u00036$&\u0003GRHV\u0003QRW\u0003SODXVLEO\\\u0003DOOHJH\u0003D\u0003SULPDU\\\u0003YLRODWLRQ\u0003RI\u0003Section \u0014\u0013 E \u0003RU\u0003FXOSDEOH\u0003\n\nSDUWLFLSDWLRQ\u0003E\\\u0003DQ\\\u0003'HIHQGDQW\u0011\u00b4\u0003\u0003'RF\u0011\u000380 DW\u0003\u0016\u0016\u0011\u0003\u00033ODLQWL\u0d75V\u0003DUJXH WKDW\u0003WKHLU\u0003FODLP\u0003SXUVXDQW\u0003\n\nto Section \u0015\u0013 D \u0003VKRXOG\u0003QRW\u0003EH\u0003GLVPLVVHG\u0003EHFDXVH\u0003WKH\\\u0003KDYH\u0003DGHTXDWHO\\\u0003DOOHJHG\u0003SULPDU\\\u0003\n\nvLRODWLRQV\u0003RI\u0003Section 10(b) DQG\u0003WKH\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003GR\u0003QRW\u0003GLVSXWH\u0003WKHLU\u0003VWDWXV\u0003DV\u0003\n\n\u00b3&RQWURO\u00033HUVRQV\u00b4\u0003RYHU\u0003)DUIHWFK\u0011\u0003\u0003'RF\u0011\u0003\u001b\u0016\u0003DW\u0003\u0016\u0015\u0011\n\n       \u00b37R\u0003DVVHUW\u0003D\u0003prima facie FDVH\u0003XQGHU\u0003Section \u0015\u0013 D \u000f\u0003D\u0003SODLQWL\u0d75\u0003\u00b5PXVW\u0003VKRZ\u0003D\u0003SULPDU\\\u0003\n\nYLRODWLRQ\u0003E\\\u0003WKH\u0003FRQWUROOHG\u0003SHUVRQ\u0003DQG\u0003FRQWURO\u0003RI\u0003WKH\u0003SULPDU\\\u0003YLRODWRU\u0003E\\\u0003WKH\u0003WDUJHWHG\u0003\n\nGHIHQGDQW\u000f\u0003DQG\u0003VKRZ\u0003WKDW\u0003WKH\u0003FRQWUROOLQJ\u0003SHUVRQ\u0003ZDV\u0003LQ\u0003VRPH\u0003PHDQLQJIXO\u0003VHQVH\u0003D\u0003FXOSDEOH\u0003\n\nSDUWLFLSDQW\u0003LQ\u0003WKH\u0003IUDXG\u0003SHUSHWUDWHG\u0003E\\\u0003WKH\u0003FRQWUROOHG\u0003SHUVRQ\u0011\u00b6\u00b4 Mechel OAO, 811 F.\n6XSS\u0011\u0003\u0015G\u0003DW\u0003\u001b\u001b2 TXRWLQJ SEC v. First Jersey Securities, Inc., 101 F.3d 1450, 1472 (2d\n\n&LU\u0011\u0003\u0014\u001c\u001c\u0019 \u0011\u0003 %HFDXVH\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003DOOHJH\u0003D\u0003SULPDU\\\u0003YLRODWLRQ\u0003RI\u0003WKH\u0003([FKDQJH\u0003\n\n$FW\u000f\u0003WKHLU\u0003FODLP\u0003SXUVXDQW\u0003WR\u0003Section \u0015\u0013 D \u0003LV\u0003GLVPLVVHG\u0011 See 6WHDP\u00bfWWHUV\u0003/RFDO\u0003\u0017\u0017\u001c\u0003\n\nPension Plan v. Skechers U.S.A., Inc.\u000f\u0003\u0017\u0014\u0015\u0003)\u0011\u00036XSS\u0011\u0003\u0016G\u0003\u0016\u0018\u0016\u000f\u0003\u0016\u00198 (S.D.N.Y. 2019), D\u09fc\u2019d\n\nsub nom. Cavalier Fundamental Growth Fund v. Skechers U.S.A., Inc.\u000f\u0003\u001b\u0015\u0019\u0003)\u0011\u0003$SS\u00b6[\u0003\u0014\u0014\u0014\u0003\n\n\u0015G\u0003&LU\u0011\u0003\u0015\u0013\u0015\u0013 \u0011\n          D. Leave to Amend\n       3ODLQWL\u0d75V\u0003DVN WKDW LI\u0003WKe &RXUW GLVPLVVHV\u0003WKHLU\u0003FODLPV\u000f WKDW\u0003LW JUDQW WKHP\u0003OHDYH\u0003WR\u0003\n\nDPHQG\u0003WKHLU SOHDGLQJV\u0011 Doc. 83 at 32 n.10. \u0e60H\u0003,QGLYLGXDO\u0003'HIHQGDQWV\u0003DUJXH WKDW\u0003WKH\u0003\n\n                                              38\n\f   Case 1:23-cv-10982-ER          Document 86        Filed 09/29/26      Page 39 of 39\n\n\n\n\n6$&\u0003VKRXOG\u0003EH\u0003GLVPLVVHG\u0003ZLWK\u0003SUHMXGLFH\u0003EHFDXVH\u0003LW\u0003LV\u00033ODLQWL\u0d75V\u00b6\u0003WKLUG\u0003DWWHPSW\u0003WR\u0003SOHDG\u0003D\u0003\n\nVHFXULWLHV\u0003IUDXG\u0003FODLP\u000f\u0003DIWHU\u0003WKH\u0003LQLWLDO\u0003FRPSODLQW\u0003DQG\u0003WKH\u0003FRQVROLGDWHG\u0003FRPSODLQW. Doc. 84\n\nat 15. 0RWLRQV\u0003WR\u0003DPHQG\u0003DUH\u0003XOWLPDWHO\\\u0003ZLWKLQ\u0003WKH\u0003GLVFUHWLRQ\u0003RI\u0003WKH\u0003GLVWULFW\u0003FRXUW\u0003MXGJH\u0011\u0003\u0003\n\nFoman v. Davis, 371 U.S. 178, 182 (1962)\u0011\u0003\u0003\u00b3[A] GLVPLVVDO ZLWK SUHMXGLFH LV\u0003JHQHUDOO\\\u0003\n\nDSSURSULDWH\u0003ZKHUH D\u0003FRXUW SXWV\u0003D\u0003SODLQWL\u0d75\u0003RQ\u0003QRWLFH\u0003RI\u0003D\u0003FRPSODLQW\u00b6V\u0003GH\u00bfFLHQFLHV\u0003DQG\u0003WKH\u0003\n\nSODLQWL\u0d75\u0003IDLOV\u0003WR\u0003FRUUHFW\u0003WKRVH\u0003GH\u00bfFLHQFLHV\u0003DIWHU\u0003DPHQGPHQW\u0011\u00b4\u0003 Abu Dhabi Commercial\n\nBank v. Morgan Stanley & Co. Inc., No. 8 Civ. 7508 (SAS), 2009 WL 3346674, at *2\n\n(S.D.N.Y. Oct. 15, 2009). \u0e60LV\u0003&RXUW\u000f\u0003LQ\u0003LWV\u0003SULRU\u0003RSLQLRQ, DOHUWHG\u00033ODLQWL\u0d75V\u0003WR\u0003WKH\u0003\n\nGH\u00bfFLHQFLHV\u0003LQ\u0003LWV\u0003DOOHJDWLRQV\u0003RI\u0003VFLHQWHU\u000f\u0003ZDUQHG\u0003WKDW\u0003WKH\u0003VWDWHPHQWV\u0003WR\u0003ZKLFK\u00033ODLQWL\u0d75V\u0003\n\nSRLQW\u0003ZHUH\u0003IRUZDUG-ORRNLQJ\u000f\u0003RSLQLRQV\u000f\u0003DQG\u0003PHUH\u0003SX\u0d75HU\\\u000f\u0003DQG\u0003FRXQVHOHG\u0003WKDW\u0003WKH\\\u0003needed\n\nWR\u0003SOHDG\u0003VFKHPH\u0003OLDELOLW\\\u0003ZLWK\u0003PRUH\u0003VSHFL\u00bfFLW\\\u0011\u0003\u0003'RF\u0011\u0003\u001a\u0016\u0011\u0003\u0003'HVSLWH\u0003WKH\u0003DGGLWLRQ\u0003RI\u0003\n\nDOOHJDWLRQV\u0003DERXW\u00033URMHFW\u0003$WKHQD\u000f\u00033ODLQWL\u0d75V\u0003KDYH\u0003IDLOHG\u0003WR\u0003UHPHG\\\u0003WKHVH\u0003GH\u00bfFLHQFLHV\u0011 \u0e60H\u0003\n\n6$&\u0003LV\u0003WKHUHIRUH\u0003GLVPLVVHG\u0003ZLWK\u0003SUHMXGLFH\u0011\u0003\u0003\nIV.      CONCLUSION\n         )RU\u0003WKH\u0003IRUeJRLQJ\u0003UHDVRQV\u000f\u0003WKH\u0003PRWLRQ\u0003WR\u0003GLVPLVV\u0003LV GRANTED ZLWK\u0003SUHMXGLFH\u0011\n\n\u0e60H\u0003&OHUN\u0003RI\u0003WKH\u0003&RXUW\u0003LV\u0003UHVSHFWIXOO\\\u0003GLUHFWHG\u0003WR\u0003WHUPLQDWH\u0003WKH\u0003PRWLRQ\u000f\u0003'RFV. 79 and 82,\n\nDQG\u0003FORVH\u0003WKH\u0003FDVH.\n\n\n\n,W\u0003LV\u0003SO ORDERED.\n\n\nDated:    6HSWHPEHU\u0003\u0015\u001c\u000f\u0003\u0015\u0013\u0015\u0019\n          1HZ\u0003<RUN\u000f\u00031HZ\u0003<RUN\n\n                                                         EDGARDO RAMOS, U.S.D.J.\n\n\n\n\n                                             39\n\f","ocr_status":2,"date_upload":"2026-09-30T13:54:44.097375-07:00","document_number":"86","attachment_number":null,"pacer_doc_id":"127040442901","is_available":true,"is_free_on_pacer":true,"is_sealed":null,"document_type":1,"description":"Memorandum & Opinion","acms_document_guid":""}],"date_created":"2026-09-29T16:08:37.666904-07:00","date_modified":"2026-10-29T10:56:49.652675-07:00","date_filed":"2026-09-29","time_filed":"18:06:58","entry_number":86,"recap_sequence_number":"2026-09-29.001","pacer_sequence_number":297,"description":" OPINION & ORDER   re:  79     MOTION  to Dismiss  the Second Amended Class Action Complaint. filed by Elliot   Jordan, Jose  Neves, Stephanie   Phair.For the foregoing reasons, the motion to dismiss is GRANTED with prejudice. The  Clerk of the Court is respectfully directed to terminate the motion, Docs. 79 and 82, and close the case. It is SO ORDERED.   (Signed by Judge Edgardo Ramos on 9/29/2026)   (jca)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/455182054/","id":455182054,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/470118705/","id":470118705,"tags":[],"absolute_url":"/docket/68102459/85/in-re-farfetch-limited-securities-litigation/","date_created":"2026-02-26T11:11:34.239163-08:00","date_modified":"2026-07-07T02:07:48.800586-07:00","sha1":"bb35e92299167d0065e2cf26612a17ab695de9af","page_count":22,"file_size":348307,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.85.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.85.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"      Case 1:23-cv-10982-ER             Document 85           Filed 02/26/26        Page 1 of 22\n\n\n\n\nUNITED STATES DISTRICT COURT\nSOUTHERN DISTRICT OF NEW YORK\n\n\n\n    IN RE FARFETCH LIMITED                                       OPINION & ORDER\n    SECURITIES LITIGATION                                            23-cv-10982 (ER)\n\n\n\n\nRAMOS, D.J.:\n\n        Co-/HDG 3ODLQWL\u0d75V )HUQDQGo Sulichin and Yuanzhe )X FROOHFWLYHO\\\u000f \u00b33ODLQWL\u0d75V\u00b4\n\nEULQJ WKLV SXWDWLYH FODVV DFWLRQ DJDLQVW )DUIHWFK /LPLWHG \u00b3)DUIHWFK\u00b4 DQG LWV GLUHFW\n\nVXEVLGLDU\\ )) 5HDOLVDWLRQV SOF I\u0012N\u0012D )DUIHWFK +ROGLQJV SOF \u00b3)) +ROGLQJV\u00b4 \u000f DQG\n\nLQGLYLGXDOV -RVp 0DQXHO )HUUHLUD 1HYHV \u00b31HYHV\u00b4 \u000f (OOLRW *LOEHUW -RUGDQ \u00b3-RUGDQ\u00b4 \u000f DQG\n\n6WHSKDQLH 1DGLH 3KDLU .RRLM \u00b33KDLU\u00b4 FROOHFWLYHO\\\u000f \u00b3'HIHQGDQWV\u00b4 \u000f DOOHJLQJ YLRODWLRQV RI\n\n6HFWLRQ \u0014\u0013 E DQG \u0015\u0013 D RI WKH 6HFXULWLHV ([FKDQJH $FW\u000f DQG 6HFXULWLHV ([FKDQJH\n\n&RPPLVVLRQ \u00b36(&\u00b4 5XOH \u0014\u0013E-5. 3ODLQWL\u0d75V QRZ PRYH IRU DQ oUGHU PRGLI\\LQJ WKH\n\nGLVFRYHU\\ VWD\\ FXUUHQWO\\ LQ SODFH SXUVXDQW WR WKH 3ULYDWH 6HFXULWLHV /LWLJDWLRQ 5HIRUP $FW\n\nRI \u0014\u001c\u001c\u0018 WKH \u00b336/5$\u00b4 WR SHUPLW WKHP WR REWDLQ FRSLHV RI FHUWDLQ GRFXPHQWV DQG\n\nPDWHULDOV IURP UHODWHG QRQ-SDUW\\ 6XUSLTXH /\u00113\u0011 \u00b36XUSLTXH\u00b4 . 6SHFL\u00bfFDOO\\\u000f 3ODLQWL\u0d75V VHHN\n\nall non-SULYLOHJHG GRFXPHQWV WKDW 6XUSLTXH KDV SURGXFHG\u000f RU ZLOO LQ WKH IXWXUH SURGXFH, to\n\nWKH -RLQW 2\u0d76FLDO /LTXLGDWRUV \u00b3-2/V\u00b4 , actLQJ DV )DUIHWFK\u00b6V OLTXLGDWRUV\u000f LQ UHVSRQVH WR D\n\nVXESRHQD VHUYHG XSRQ WKHP LQ a EDQNUXSWF\\ OLTXLGDWLRQ SURFHHGLQJ WKH \u00b3&D\\PDQ\n\n3URFHHGLQJ\u00b4 \u0011 1 )RU WKH UHDVRQV VHW IRUWK EHORZ\u000f 3ODLQWL\u0d75V\u00b6 PRWLRQ WR PRGLI\\ WKH 36/5$\n                0F\n\n\n\n\nGLVFRYHU\\ VWD\\ LV DENIED.\n\n\n\n\n1\n %\\ DQ 2UGHU RI WKH 8QLWHG 6WDWHV %DQNUXSWF\\ &RXUW IRU WKH 'LVWULFW RI 'HODZDUH GDWHG $XJXVW \u0018\u000f \u0015\u0013\u0015\u0017\u000f DOO\nSHQGLQJ DFWLRQV DJDLQVW )DUIHWFK DUH VWD\\HG\u0011 ,Q UH\u001d )DUIHWFK /LPLWHG LQ 2\u09fdFLDO /LTXLGDWLRQ \u000f 'HEWRU LQ D\n)RUHLJQ 3URFHHGLQJ, No. 2\u0017-11519-CTG %DQNU\u0011 '\u0011 'HO\u0011 -XO\\ \u0014\u0013\u000f \u0015\u0013\u0015\u0017 \u000f 'NW\u0011 \u00b3%DQNU\u0011 'NW\u00b4 60 at \u00b6 5.\n$FFRUGLQJO\\\u000f WKLV DFWLRQ SURFHHGV VROHO\\ DJDLQVW WKH ,QGLYLGXDO 'HIHQGDQWV\u0011\n\f       Case 1:23-cv-10982-ER              Document 85          Filed 02/26/26        Page 2 of 22\n\n\n\n\nI.         BACKGROUND\n           A. Factual Background\n           \u0e60H &RXUW DVVXPHV IDPLOLDULW\\ ZLWK WKH IDFWV SUHVHQWHG LQ WKH SUHYLRXV RSLQLRQ DQG\n\nRUGHU LQ WKLV FDVH. 2 See Doc. 73 JUDQWLQJ ,QGLYLGXDO 'HIHQGDQWV\u00b6 PRWLRQ WR GLVPLVV . )RU\n                      1F\n\n\n\n\nSUHVHQW SXUSRVHV\u000f WKH &RXUW SURYLGHV DQ DEEUHYLDWHG VXPPDU\\ DQG QHZ\u000f UHOHYDQW IDFWV\n\nKHUHLQ\u0011 8QOHVV VWDWHG RWKHUZLVH\u000f WKH IROORZLQJ IDFWV DUH IURP WKH 6HFRQG $PHQGHG &ODVV\n\n$FWLRQ &RPSODLQW\u000f 'RF\u0011 \u001a\u001b\u0011\n\n           \u0e60LV LV D IHGHUDO VHFXULWLHV FODVV DFWLRQ ODZVXLW EURXJKW RQ EHKDOI RI VKDUHKROGHUV\n\nZKR SXUFKDVHG )DUIHWFK VHFXULWLHV EHWZHHQ 'HFHPEHU \u0014\u000f \u0015\u0013\u0015\u0015 DQG 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016\n\n    WKH \u00b3&ODVV 3HULRG\u00b4 \u0011 3 \u00b6 1. 3ODLQWL\u0d75V DOOHJH WKDW WKDW 'HIHQGDQWV PDGH PDWHULDOO\\ IDOVH RU\n                           2F\n\n\n\n\nPLVOHDGLQJ VWDWHPHQWV\u000f RPLWWHG PDWHULDO KLVWRULFDO RU SUHVHQW IDFWV\u000f DQG GHFHLYHG LQYHVWRUV\n\nLQ RUGHU WR DUWL\u00bfFLDOO\\ LQ\u00c0DWH )DUIHWFK VWRFN SULFHV LQ YLRODWLRQ RI 6HFWLRQ \u0014\u0013 E DQG \u0014\u0013E-5,\n\nDQG WKDW 1HYHV\u000f -RUGDQ\u000f DQG 3KDLU FROOHFWLYHO\\\u000f \u00b3,QGLYLGXDO 'HIHQGDQWV\u00b4 ZHUH\n\nFRQWUROOLQJ SHUVRQV RI )DUIHWFK DQG )) +ROGLQJV DQG YLRODWHG 6HFWLRQ \u0015\u0013 D \u0011 \u00b6\u00b6 215\u201330.\n\n           )DUIHWFK LV D SXEOLFO\\ WUDGHG WHFKQRORJ\\ FRPSDQ\\ IRXQGHG LQ \u0015\u0013\u0013\u001a WKDW VXSSRUWHG\n\nWKLUG-SDUW\\ VDOHV RI OX[XU\\ JRRGV WR FRQVXPHUV ZRUOGZLGH YLD LWV GLJLWDO PDUNHWSODFH\n\nSODWIRUP\u0011 \u00b6 2. )DUIHWFK RSHUDWHG DV D SULYDWH FRPSDQ\\ IRU RYHU \u0014\u0013 \\HDUV EHIRUH ODXQFKLQJ\n\nLWV LQLWLDO SXEOLF R\u0d75HULQJ \u00b3,32\u00b4 LQ 6HSWHPEHU \u0015\u0013\u0014\u001b\u000f ZLWK VKDUHV OLVWHG RQ WKH 1HZ <RUN\n\n6WRFN ([FKDQJH \u00b31<6(\u00b4 \u0011 Id. 3ODLQWL\u0d75V DOOHJH WKDW )DUIHWFK SURPRWHG LWVHOI WR\nLQYHVWRUV EDVHG RQ LWV \u00b3ORZ ULVN\u000f KLJK PDUJLQ\u00b4 WKLUG-SDUW\\ PDUNHWSODFH SODWIRUP GHVLJQ\u0011\n\nId. $V D UHVXOW\u000f 3ODLQWL\u0d75V contend WKDW )DUIHWFK DFKLHYHG D VXFFHVVIXO IPO WKDW UDLVHG RYHU\n\n$1 billion and led to an $8 billion valuation. Id. 3ODLQWL\u0d75V DVVHUW WKDW, \u00b3VHHPLQJO\\\n\nRYHUQLJKW\u000f\u00b4 WKH &RPSDQ\\ abandoned WKLV EXVLQHVV PRGHO\u000f VKLIWLQJ LQVWHDG WR D \u00b3JURZWK-\n\nby-DFTXLVLWLRQ\u00b4 VWUDWHJ\\ IRFXVLQJ RQ WKH \u00b3DFTXLVLWLRQ RI \u00bfUVW-SDUW\\ UHWDLOHUV DQG ZKROHVDOH\n\n\n\n2\n    $OWKRXJK WKH 3ODLQWL\u0d75V have \u00bfOHG D 6HFRQG $PHQGHG &RPSODLQW\u000f WKH JHQHUDO DOOHJDWLRQV UHPDLQ WKH VDPH\u0011\n3\n \u0e60H &RXUW QRWHV WKDW WKH LQVWDQW PRWLRQ, ZKLFK LV EDVHG RQ WKH VLQFH GLVPLVVHG &RQVROLGDWHG $PHQGHG\n&RPSODLQW, DOOHJHV a cODVV SHULRG IURP )HEUXDU\\ \u0015\u0017\u000f 2022, WKRXJK 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016\u0011\n\n\n\n                                                     2\n\f    Case 1:23-cv-10982-ER          Document 85        Filed 02/26/26      Page 3 of 22\n\n\n\n\nGLVWULEXWRUV,\u00b4 ZLWK DFTXLVLWLRQV WRWDOLQJ $1.6 billion. Id. 7R \u00bfQDQFH WKLV VWUDWHJ\\\u000f\n\n)DUIHWFKHG WRRN RQ VXEVWDQWLDO GHEW\u000f LQFOXGLQJ \u0007\u0014\u0011\u0015\u0018 ELOOLRQ LQ \u0015\u0013\u0015\u0013\u0011 \u00b6 3. )ROORZLQJ\n\nDGGLWLRQDO DFTXLVLWLRQV DQG VWUDWHJLF LQYHVWPHQWV LQ \u0015\u0013\u0015\u0015\u000f )DUIHWFKV\u00b6 SULPDU\\ RSHUDWLQJ\n\nVXEVLGLDU\\ HQWHUHG LQWR D \u0007\u0017\u0013\u0013 PLOOLRQ FUHGLW DJUHHPHQW LQ 2FWREHU \u0015\u0013\u0015\u0015\u000f ZKLFK ZDV\n\nH[SDQGHG E\\ DQ DGGLWLRQDO \u0007\u0015\u0013\u0013 PLOOLRQ LQ $XJXVW \u0015\u0013\u0015\u0016. Id.\n\n       3ODLQWL\u0d75V DOOHJH WKDW\u000f EHJLQQLQJ LQ \u0015\u0013\u0015\u0013\u000f WKH &29,'-\u0014\u001c SDQGHPLF DQG WKH VSLNH LQ\n\nonline-VKRSSLQJ \u00b3SURYLGHG D IDoDGH RI SUR\u00bfWDELOLW\\\u00b4 ZKLOH PDVNLQJ WKH WUXH H[WHQW RI WKH\n\nQHJDWLYH LPSDFW RI WKHVH DFTXLVLWLRQV\u0011 \u00b6 5. 3ODLQWL\u0d75V DUJXH that WKHVH DFTXLVLWLRQV led to\n\nLQH\u0d76FLHQFLHV\u000f LQFOXGLQJ RYHUODSSLQJ EXVLQHVV XQLWV and XQVXVWDLQDEOH RSHUDWLQJ H[SHQVHV\n\nUHODWLQJ WR H[FHVV LQYHQWRU\\ DQG ODUJH XSIURQW 9DOXH $GGHG 7D[ \u00b39$7\u00b4 REOLJDWLRQV, and\n\nKHDY\\ GLVFRXQWV OHDGLQJ WR ORZ SUR\u00bfW PDUJLQV. Id. \u0e60H FRPSODLQW DOOHJHV WKDW )DUIHWFK\n\nZDV QHDULQJ D OLTXLGLW\\ FULVLV DQG SRWHQWLDO EDQNUXSWF\\\u000f VXVWDLQHG RQO\\ E\\ UDSLGO\\\n\nGHSOHWLQJ GHEW \u00bfQDQFLQJ\u0011 Id.\n\n       3ODLQWL\u0d75V contend WKDW OHDGLQJ XS WR DQG WKURXJK WKH &ODVV 3HULRG\u000f )DUIHWFK\n\nUHSUHVHQWHG WR LQYHVWRU WKDW LW PDLQWDLQHG \u00b3DJJUHVVLYH JURZWK SURVSHFWV\u00b4 DQG D \u00b3VHFXUH\n\n\u00bfQDQFLDO IRRWLQJ\u000f\u00b4 \u0088 \u0017\u000f DQG WKDW LWV \u00b3EDODQFH VKHHW VXSSRUWHG LWV VHFRQG SKDVH RI JURZWK\u00b4\n\nDLPHG DW UHWXUQLQJ WR SUR\u00bfWDELOLW\\ DQG SRVLWLYH IUHH FDVK \u00c0RZ\u0011 \u00b6 6. 3ODLQWL\u0d75V DOOHJH,\n\nKRZHYHU\u000f WKDW LQ 'HFHPEHU \u0015\u0013\u0015\u0015\u000f )DUIHWFK LQLWLDWHG \u00b3PURMHFW $WKHQD\u000f\u00b4 DQ XQGLVFORVHG\n\nH\u0d75RUW WR SXUVXH D WDNH-SULYDWH RU VLPLODU WUDQVDFWLRQ\u0011 Id. $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f by the\n\nVHFRQG KDOI RI \u0015\u0013\u0015\u0016\u000f DIWHU XQVXFFHVVIXO H\u0d75RUWV WR VHFXUH QHZ FDSLWDO\u000f )DUIHWFK IRUPHG D\n\nVSHFLDO FRPPLWWHH DQG SXUVXHG D VDOH RI VXEVWDQWLDOO\\ DOO FRPSDQ\\ DVVHWV LQ D VLQJOH\n\nWUDQVDFWLRQ\u000f UHVXOWLQJ LQ WKH ZULWH-R\u0d75 RI DSSUR[LPDWHO\\ \u0007\u0014 ELOOLRQ LQ GHEW\u0011 Id.\n\n       3ODLQWL\u0d75V DOOHJH WKDW XS XQWLO $XJXVW \u0015\u0013\u0015\u0016\u000f 'HIHQGDQWV PDGH QXPHURXV\n\nUHSUHVHQWDWLRQV WR WKH PDUNHW VXJJHVWLQJ WKH FRPSDQ\\ PDLQWDLQHG a VWURQJ \u00bfQDQFLDO\n\nSRVWXUH. \u00b6 7. 3ODLQWL\u0d75V contend WKDW )DUIHWFK VWRFN SULFH \u00b3FDPH WXPEOLQJ GRZQ\u00b4 DIWHU D\n\nVHULHV RI UHYHODWLRQV LQGLFDWLQJ WKDW )DUIHWFK ZDV QRW H[HFXWLQJ on LWV SODQ WR SUR\u00bfWDELOLW\\\n\nDQG SRVLWLYH IUHH FDVK \u00c0RZ\u000f WKDW LWV SUHYLRXV JXLGDQFH ZaV QRW WR EH WUXVWHG\u000f DQG\n\n\n                                              3\n\f      Case 1:23-cv-10982-ER        Document 85       Filed 02/26/26      Page 4 of 22\n\n\n\n\nXOWLPDWHO\\ WKDW WKH EXVLQHVV KDG EHHQ JXWWHG DQG VROG R\u0d75 IRU LWV SDUWV WR DYRLG LQVROYHQF\\\u0011\n\nId.\n\n        By WKH HQG RI \u0015\u0013\u0015\u0016\u000f )DUIHWFK ZDV H[SHULHQFLQJ VLJQL\u00bfFDQW \u00bfQDQFLDO DQG OLTXLGLW\\\n\nSUHVVXUH DQG IDFLQJ LQVROYHQF\\\u0011 Doc. 67 at 6. 2Q -DQXDU\\ \u0016\u0013\u000f \u0015\u0013\u0015\u0017\u000f SXUVXDQW WR D FRXUW\n\nDSSURYHG LQVROYHQF\\ VDOH LQ WKH 8QLWHG .LQJGRP DQG DSSURYHG E\\ LQGHSHQGHQW\n\nDGPLQLVWUDWRUV\u000f 6XUSLTXH\u000f D 'HODZDUH FRPSDQ\\\u000f DFTXLUHG WKH PDWHULDO DVVHWV RI )DUIHWFK\n\n+ROGLQJV 3/&\u0011 Id. 6XUSLTXH GLG QRW DFTXLUH )DUIHWFK /LPLWHG\u000f D &D\\PDQ ,VODQGV KROGLQJ\n\nFRPSDQ\\ ZLWK QR RSHUDWLRQV RI LWV RZQ WKDW VDW DERYH )DUIHWFK +ROGLQJV 3/&\u0011 Id.\n\n        6KRUWO\\ DIWHU, RQ )HEUXDU\\ \u0015\u000f \u0015\u0013\u0015\u0017\u000f :LOPLQJWRQ 7UXVW\u000f D FUHGLWRU WR )DUIHWFK\n\n/LPLWHG\u000f \u00bfOHG D SHWLWLRQ LQ WKH *UDQG &RXUW RI WKH &D\\PDQ ,VODQGV VHHNLQJ WR ZLQG XS\n\n)DUIHWFK /LPLWHG. See Doc. 61-1, $SWRQ 'HFO. \u0e60H &D\\PDQ &RXUW JUDQWHG WKH SHWLWLRQ\n\nDQG DSSRLQWHG WZR -RLQW 2\u0d76FLDO /LTXLGDWRUV \u00b3-2/V\u00b4 WR RYHUVHH WKH OLTXLGDWLRQ. In re:\n\n)DUIHWFK /LPLWHG LQ 2\u09fdFLDO /LTXLGDWLRQ \u000f 'HEWRU LQ D )RUHLJQ 3URFHHGLQJ, No. 2\u0017-\n\n11519-&7* %DQNU\u0011 '\u0011 'HO\u0011 -XO\\ \u0014\u0013\u000f \u0015\u0013\u0015\u0017 \u000f 'NW\u0011 \u00b3%DQNU\u0011 'NW\u00b4 \u0014 DW \u0088 \u0016. \u0e60H -2/V DUH\n\nWDVNHG ZLWK LQYHVWLJDWLQJ WKH HYHQWV OHDGLQJ XS WR )DUIHWFK\u00b6V \u00bfQDQFLDO FROODSVH and the\n\nFLUFXPVWDQFHV VXUURXQGLQJ WKH VDOH RI the )DUIHWFK EXVLQHVV WR 6XUSLTXH\u0011 Doc. 60 at 11;\n\nDoc. 67 at 7\u20138. \u0e60H &D\\PDQ FRXUW SHUPLWWHG WKH -2/V WR VHHN UHFRJQLWLRQ LQ WKH 8QLWHG\n\n6WDWHV RI WKHLU DSSRLQWPHQW DV R\u0d76FLDO &D\\PDQ OLTXLGDWRUV\u0011 %DQNU\u0011 'NW\u0011 \u0014 DW \u00b6 5.\n\n        2Q -XO\\ \u0014\u0013\u000f \u0015\u0013\u0015\u0017\u000f WKH -2/V \u00bfOHG D PRWLRQ LQ WKH 8\u00116\u0011 %DQNUXSWF\\ &RXUW IRU WKH\n\n'LVWULFW RI 'HODZDUH \u00b3%DQNUXSWF\\ &RXUW\u00b4 VHHNLQJ UHFRJQLWLRQ RI WKH &D\\PDQ OLTXLGDWLRQ\n\nDV D IRUHLJQ PDLQ SURFHHGLQJ, DQG WKH -2/V DV )DUIHWFK /LPLWHG\u00b6V IRUHLJQ UHSUHVHQWDWLYHV\n\nXQGHU &KDSWHU \u0014\u0018 RI WKH 8QLWHG 6WDWHV %DQNUXSWF\\ &RGH\u0011 See %DQNU\u0011 'NW\u0011 \u0017\u0011 2Q $XJXVW\n\n\u0018\u000f \u0015\u0013\u0015\u0017\u000f WKH %DQNUXSWF\\ &RXUW JUDQWHG UHFRJQLWLRQ DQG DXWKRUL]HG WKH -2/V WR SXUVXH\n\nGLVFRYHU\\\u0011 See %DQNU\u0011 'NW\u0011 \u0017\u0019\u0011\n\n        \u0e60HUHDIWHU\u000f WKH -2/V LVVXHG VXESRHQDV SXUVXDQW WR )HGHUDO 5XOH RI %DQNUXSWF\\\n\n3URFHGXUH \u0015\u0013\u0013\u0017 to YDULRXV WKLUG SDUWLHV ORFDWHG ZLWKLQ WKH 8QLWHG 6WDWHV\u000f LQFOXGLQJ\n\n)DUIHWFK /LPLWHG\u00b6V IRUPHU RXWVLGH FRXQVHO DQG GLUHFWRUV\u0011 Id. \u0e60H -2/V DOVR VHUYHG D 5XOH\n\n\n                                             \u0017\n\f    Case 1:23-cv-10982-ER               Document 85           Filed 02/26/26        Page 5 of 22\n\n\n\n\n\u0015\u0013\u0013\u0017 VXESRHQD DJDLQVW 6XUSLTXH\u000f DV WKH HQWLW\\ WKDW DFTXLUHG )DUIHWFK\u000f FRQWDLQLQJ 81\n\nVHSDUDWH UHTXHVWV FRYHULQJ D WLPH SHULRG RI PRUH WKDQ \u00bfYH \\HDUV\u000f EHJLQQLQJ -DQXDU\\ \u0015\u0013\u0014\u001c\n\nWKURXJK -DQXDU\\ \u0015\u0013\u0015\u0017\u0011 See Doc. 61-2 at \u0017\u0019\u201355, $SWRQ 'HFO.\n\n        \u0e60H -2/V\u00b6 LQYHVWLJDWLRQ KDV EHHQ RQJRLQJ IRU PRUH WKDQ D \\HDU\u0011 Doc. 60 at 11.\n\n3ODLQWL\u0d75V DVVHUW WKDW, to date, 6XUSLTXH KDV SURGXFHG RYHU \u0014\u0019\u000f\u0013\u0013\u0013 GRFXPHQWV LQ UHVSRQVH\n\nWR WKH -2/V\u00b6 VXESRHQD\u0011 Id. $FFRUGLQJ WR 6XUSLTXH\u000f LW KDV WR GDWH SURGXFHG RQO\\ \u0015\u0019\u001c\n\nGRFXPHQWV\u000f FRQVLVWLQJ SULPDULO\\ RI )DUIHWFK /LPLWHG\u00b6V FRUH ERRNV DQG UHFRUGV\u000f DQG KDV\n\nQRW \\HW SURGXFHG DQ\\ HPDLOV RU RWKHU FXVWRGLDO \u00bfOHV\u0011 Doc. 69 \u00b6 3\u000f *UHHQEODWW 'HFO.\n\n        \u0e60H -2/V DQG 6XUSLTXH DUH FXUUHQWO\\ HQJDJHG LQ GLVFXVVLRQV FRQFHUQLQJ WKH\n\nDSSURSULDWH VFRSH RI D FXVWRGLDO UHYLHZ LQ UHVSRQVH WR WKH VXESRHQD. Id. \u0088 \u0017. 6XUSLTXH\n\nPDLQWDLQV WKDW\u000f DOWKRXJK WKRVH QHJRWLDWLRQV UHPDLQ RQJRLQJ\u000f WKH SDUWLHV DSSHDU WR EH\n\nFRQYHUJLQJ RQ D SURSRVHG VHDUFK SURWRFRO WKDW ZRXOG LQYROYH UHYLHZ RI PRUH WKDQ\n\n\u0014\u0013\u0013\u000f\u0013\u0013\u0013 GRFXPHQWV\u0011 Id.\n\n        3ODLQWL\u0d75V FRQWHQG WKDW SURGXFWLRQ RI WKHVH PDWHULDOV ZLOO EH LQ WKH \u00b3QHDU IXWXUH\u0011\u00b4\n\nDoc. 60 at 11. 6XUSLTXH DVVHUWV\u000f KRZHYHU\u000f WKDW WKH\\ H[SHFW WKDW SURGXFWLRQ ZLOO EH\n\nFRPSOHWH \u00b3PLG-to-ODWH VXPPHU\u0011\u00b4 'RF\u0011 \u0019\u001c \u0088 \u0018\u000f *UHHQEODWW 'HFO.\n        B. Procedural Background\n\n        -DVPLQH :X\u000f LQGLYLGXDOO\\ DQG RQ EHKDOI RI DOO RWKHUV VLPLODUO\\ VLWXDWHG\u000f \u00bfOHG WKH\n\u00bfUVW FRPSODLQW LQ WKLV FRQVROLGDWHG FODVV DFWLRQ RQ 'HFHPEHU \u0014\u001c\u000f \u0015\u0013\u0015\u0016 (the \u201cWu SDNY\n\nAction\u00b4 . Doc. \u0014\u0011 \u0e60UHH PHPEHUV RI WKH SXWDWLYH FODVV \u00bfOHG PRWLRQV VHHNLQJ\n\nDSSRLQWPHQW DV OHDG SODLQWL\u0d75\u0011 \u0017 2Q 2FWREHU \u0015\u0013\u000f \u0015\u0013\u0015\u0016\u000f WZR PRQWKV SULRU WR WKH \u00bfOLQJ RI WKH\n                                  3F\n\n\n\n\n\u0017\n  \u0e60H IROORZLQJ LQGLYLGXDOV PRYHG WR be DSSRLQWHG DV lead SODLQWL\u0d75 LQ WKLV action\u001d 2Q 'HFHPEHU \u0014\u001c\u000f \u0015\u0013\u0015\u0016\u000f\nPRYDQW 0LFKDHO %LHYHWVNL PRYHG WR EH DSSRLQWHG DV OHDG SODLQWL\u0d75 DQG \u0e60H 5RVHQ /DZ )LUP\u000f 3\u0011$\u0011 DV OHDG\nFRXQVHO\u0011 'RF\u0011 \u0018\u0011 $OVR RQ 'HFHPEHU \u0014\u001c\u000f \u0015\u0013\u0015\u0016\u000f PRYDQW (GXDUGR $UFKHU 9HORVR 0DUWLQV DQG\n5HQRSRUWR,QYHVWLPHQWRV ,PRELOLiULRV\u000f /'$ \u00b30DUWLQV\u00b4 PRYHG WR EH DSSRLQWHG DV lead SODLQWL\u0d75 DQG\n3RPHUDQW] //3 DV OHDG FRXQVHO IRU WKH &ODVV\u0011 'RF\u0011 \u001b\u0011 /DVWO\\\u000f RQ -DQXDU\\ \u0015\u000f \u0015\u0013\u0015\u0017\u000f )HUQDQGR 6XOLFKLQ\u000f\nLQGLYLGXDOO\\ DQG RQ EHKDOI RI /\\[RU 2YHUVHDV +ROGLQJV /WG\u0011 DQG &LQHUJ\\ $GYLVRUV /WG\u0011 \u00b36XOLFKLQ\u00b4 \u000f to be\nDSSRLQWHG DV lead SODLQWL\u0d75 DQG /HYL .RUVLQVN\\\u000f //3 DV lead cRXQVHO\u0011 'RF\u0011 \u0014\u001a\u0011 0DUWLQV\u000fDQG 6XOLFKLQ\u000f\nDORQJ ZLWK WKUHH RWKHU LQGLYLGXDOV\u2014Yuanzhe Fu\u000f 7DPLP $OWDPLPL\u000f DQG .DXQGULD :HVW\u2014PRYHG VHSDUDWHO\\\nto EH DSSRLQWHG DV lead SODLQWL\u0d75 LQ 5DJDQ Y\u0011 )DUIHWFK /LPLWHG HW DO\u0011, No. 8:23-cv-02857 (D. Md.). Doc. 23\nat 2.\n\n\n\n                                                    5\n\f    Case 1:23-cv-10982-ER          Document 85         Filed 02/26/26      Page 6 of 22\n\n\n\n\nabove-FDSWLRQHG DFWLRQ\u000f D UHODWHG VHFXULWLHV FODVV DFWLRQ DVVHUWLQJ VXEVWDQWLDOO\\ WKH VDPH\n\nFODLPV ZDV \u00bfOHG LQ WKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH 'LVWULFW RI 0DU\\ODQG\u000f 5DJDQ Y\u0011\n\n)DUIHWFK /LPLWHG HW DO\u0011, No. 8:23-cv-02857 (D. Md.). Doc. 23 at 2. 2Q -DQXDU\\ \u0015\u0015\u000f \u0015\u0013\u0015\u0017\u000f\n\nWKH &RXUW LQ 5DJDQ HQWHUHG D VWLSXODWLRQ DQG RUGHU WUDQVIHUULQJ WKH FDVH WR WKH 6RXWKHUQ\n\n'LVWULFW RI 1HZ <RUN\u000f FDVH 1R\u0011 \u0015\u0017-cv-00532 (PAE) (SN) (S.D.N.Y.) (the \u201c5DJDQ 6'1<\n\nAction\u000f\u00b4 DQG WRJHWKHU ZLWK WKH Wu SDNY Action, the \u201c5HODWHG $FWLRQV\u00b4). Id. at 3. On\n\n)HEUXDU\\ \u0019\u000f \u0015\u0013\u0015\u0017\u000f WKH 5DJDQ 6'1< $FWLRQ ZDV WUDQVIHUUHG IURP -XGJH 3DXO (QJHOPD\\HU\n\nWR WKH XQGHUVLJQHG. \u0e60H VDPH GD\\, XSRQ VWLSXODWLRQ DQG DJUHHPHQW E\\ WKH SDUWLHV KHUHWR,\n\nWKH &RXUW FRQVROLGDWHG WKH 5HODWHG $FWLRQV XQGHU &DVH 1R\u0011 \u0015\u0016-cv-10982 (ER) (KHP),\n\n)HUQDQGR 6XOLFKLQ and Yuanzhe Fu ZHUH DSSRLQWHG OHDG SODLQWL\u0d75V\u000f DQG /HYL          .RUVLQVN\\\u000f\n\n//3 DQG +DJHQV %HUPDQ 6RERO 6KDSLUR //3 ZHUH DSSRLQWHG Fo-lead cRXQVHO. Id. at \u0017\u000f 5.\n\n,Q WKDW 2UGHU\u000f WKH &RXUW GLUHFWHG 3ODLQWL\u0d75V WR \u00bfOH DQ DPHQGHG FRPSODLQW LQ WKH\n\nFRQVROLGDWHG FDVH RU GHVLJQDWH WKH H[LVWLQJ FRPSODLQW DV WKH RSHUDWLYH FRPSODLQW\u0011 Id. at 5.\n\n\u0e60H &RXUW DOVR GLUHFWHG 'HIHQGDQWV DQG co-lead SODLQWL\u0d75V to PHHW DQG FRQIHU UHJDUGLQJ\n\nVFKHGXOLQJ. Id.\n\n       2Q -XQH \u0015\u0014\u000f \u0015\u0013\u0015\u0017\u000f OHDG SODLQWL\u0d75V \u00bfOHG WKH &RQVROLGDWHG $PHQGHG &RPSODLQW\n\n(\u201cCAC\u00b4 \u000f DOOHJLQJ WZR FRXQWV\u001d \u0014 YLRODWLRQ RI 6HFWLRQ \u0014\u0013 E RI WKH ([FKDQJH $FW \u0014\u0018\n\n8\u00116\u0011&\u0011 \u0086\u001a\u001bM E DQG 5XOH \u0014\u0013E-\u0018 \u0014\u001a &\u0011)\u00115\u0011 \u0086\u0015\u0017\u0013\u0011\u0014\u0013E-5); DQG \u0015 D YLRODWLRQ RI Section\n\n\u0015\u0013 D RI WKH ([FKDQJH $FW by the ,QGLYLGXDO 'HIHQGDQWV\u0011 'RF\u0011 \u0016\u0017\u0011 \u0e60H &$& DOOHJHG D\n\n&ODVV 3HULRG EHWZHHQ )HEUXDU\\ \u0015\u0017\u000f \u0015\u0013\u0015\u0015 WKURXJK 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016\u000f LQFOXVLYH. Id. \u00b6 1.\n\n       2Q 6HSWHPEHU \u0014\u0014\u000f \u0015\u0013\u0015\u0017\u000f WKH ,QGLYLGXDO 'HIHQGDQWV \u00bfOHG D PRWLRQ WR GLVPLVV WKH\n\n&$& LQ LWV HQWLUHW\\\u000f ZLWK SUHMXGLFH\u000f DQG D UHTXHVW IRU MXGLFLDO QRWLFH LQ VXSSRUW RI WKHLU\n\nPRWLRQ WR GLVPLVV\u0011 'RFV\u0011 \u0017\u0016\u000f \u0017\u0019\u0011 \u0e60H ,QGLYLGXDO 'HIHQGDQWV DUJXHd that the CAC\n\nSOHDGed QR YLDEOH WKHRU\\ RI VHFXULWLHV IUDXG DQG VKRXOG WKHUHIRUH EH GLVPLVVHG\u0011 'RF\u0011 \u0017\u0017\n\nDW \u0014\u0013\u0011 6SHFL\u00bfFDOO\\\u000f WKH ,QGLYLGXDO 'HIHQGDQWV DUJXHd WKDW 3ODLQWL\u0d75V GLG QRW SOHDG DQ\\\n\nDFWLRQDEOH PLVVWDWHPHQW RU RPLVVLRQ DQG\u000f LQVWHDG\u000f WKH &$& \u00b3VHQ[t] UHDGHUV RQ D VFDYHQJHU\n\nKXQW WKURXJK ODUJH EORFN TXRWDWLRQV H[FHUSWHG IURP PRUH WKDQ \u001b\u0013 GL\u0d75HUHQW GLVFORVXUHV\n\n\n                                              6\n\f    Case 1:23-cv-10982-ER          Document 85        Filed 02/26/26      Page 7 of 22\n\n\n\n\nRYHU D QHDUO\\ WZR-\\HDU SHULRG\u000f\u00b4 LQ ZKDW FRQVWLWXWHd SX]]OH-SOHDGLQJ\u0011 Id. DW \u0014\u0014\u0011 \u0e60H\n\n,QGLYLGXDO 'HIHQGDQWV DGGed WKDW QHDUO\\ DOO RI WKH FKDOOHQJHG VWDWHPHQWV DUH (i)\n\nLQDFWLRQDEOH H[SUHVVLRQV RI FRUSRUDWH RSWLPLVP\u000f LL IRUZDUG-ORRNLQJ VWDWHPHQWV SURWHFWHG\n\nE\\ WKH 36/5$ VDIH KDUERU\u000f DQG\u0012RU LLL RSLQLRQ VWDWHPHQWV\u0011 Id. /DVWO\\\u000f WKH ,QGLYLGXDO\n\n'HIHQGDQWV DUJXHd WKDW WKH 3ODLQWL\u0d75V Gid not\u2014and could not\u2014SOHDG IDFWV WR PHHW WKH\n\nUHTXLVLWH \u00b3VWURQJ\u00b4 LQIHUHQFH WKDW WKH 'HIHQGDQWV DFWHd ZLWK VFLHQWHU\u0011 Id. at 12.\n\n       2Q 6HSWHPEHU \u0015\u001c\u000f \u0015\u0013\u0015\u0018\u000f WKH &RXUW JUDQWHG WKH ,QGLYLGXDO 'HIHQGDQWV\u00b6 PRWLRQ WR\n\nGLVPLVV WKH &$&\u0011 'RF\u0011 \u001a\u0016\u0011 \u0e60H &RXUW KHOG WKDW WKH &$& \u00b3IDLO>HG@ WR PHHW WKH SOHDGLQJ\n\nVWDQGDUGV RI 5XOH \u001c E DQG WKH 36/5$\u0011\u00b4 Id. DW \u0015\u001a\u0011 6SHFL\u00bfFDOO\\\u000f WKH &RXUW FRQFOXGHG WKDW\n\n3ODLQWL\u0d75V KDG \u00b3IDLOHG WR DOOHJH D PDWHULDO PLVUHSUHVHQWDWLRQ RU RPLVVLRQ WR VXSSRUW D FODLP\n\nXQGHU VHFWLRQ \u0014\u0013 E \u0011\u00b4 Id. DW \u0016\u0015\u0011 \u0e60H &RXUW IXUWKHU IRXQG WKDW 3ODLQWL\u0d75V \u00b3KDYH QRW\n\nVX\u0d76FLHQWO\\ DOOHJHG DQ LQIHUHQFH RI VFLHQWHU \u00b5DW OHDVW DV VWURQJ DV WKH RSSRVLQJ LQIHUHQFH\u000f\u00b6\u00b4\n\nDQG WKHUHIRUH GLVPLVVHG 3ODLQWL\u0d75V\u00b6 6HFWLRQ \u0014\u0013 E DQG 5XOH \u0014\u0013E-\u0018 FODLPV DJDLQVW WKH\n\n,QGLYLGXDO 'HIHQGDQWV\u0011 Id. DW \u0017\u0015\u2013\u0017\u0016\u0011 %HFDXVH 3ODLQWL\u0d75V IDLOHG WR SOHDG D SULPDU\\\n\nYLRODWLRQ RI WKH ([FKDQJH $FW\u000f WKH &RXUW DOVR GLVPLVVHG 3ODLQWL\u0d75V\u00b6 FODLPV SXUVXDQW WR\n\nSection 20(a). Id. DW \u0017\u0018\u0011 \u0e60H &RXUW JUDQWHG 3ODLQWL\u0d75V OHDYH WR \u00bfOH D 6HFRQG $PHQGHG\n\n&RPSODLQW \u00b36$&\u00b4 \u0011 Id. DW \u0017\u0019\u0011\n\n       2Q 1RYHPEHU \u0016\u000f \u0015\u0013\u0015\u0018\u000f 3ODLQWL\u0d75V \u00bfOHG D 6$& DOOHJLQJ WZR FRXQWV\u001d \u0014 YLRODWLRQ RI\n\n6HFWLRQ \u0014\u0013 E RI WKH ([FKDQJH $FW \u0014\u0018 8\u00116\u0011&\u0011 \u0086\u001a\u001bM E DQG 5XOH \u0014\u0013E-5 (17 C.F.R.\n\n\u0086\u0015\u0017\u0013\u0011\u0014\u0013E-5); DQG \u0015 D YLRODWLRQ RI 6HFWLRQ \u0015\u0013 D RI WKH ([FKDQJH $FW by the Individual\n\n'HIHQGDQWV. Doc. 78. \u0e60H 6$& DOOHJHV D &ODVV 3HULRG EHWZHHQ 'HFHPEHU 1, 2022\n\nWKURXJK 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016\u000f LQFOXVLYH. Id. \u00b6 1.\n\n       2Q 'HFHPEHU \u0014\u001b\u000f \u0015\u0013\u0015\u0018\u000f WKH ,QGLYLGXDO 'HIHQGDQWV \u00bfOHG D PRWLRQ WR GLVPLVV WKH\n\n6$& LQ LWV HQWLUHW\\\u0011 'RF\u0011 79\u0011 ,QGLYLGXDO 'HIHQGDQWV FRQWHQG WKDW 3ODLQWL\u0d75V\u00b6 6$& VKRXOG\n\nEH GLVPLVVHG \u00b3IRU WKH VDPH UHDVRQV WKLV &RXUW GLVPLVVHG WKH SULRU FRPSODLQW\u0011\u00b4 'RF\u0011 \u001b\u0013 DW\n\n\u001c\u0011 \u0e60H ,QGLYLGXDO 'HIHQGDQWV\u00b6 PRWLRQ WR GLVPLVV UHPDLQV SHQGLQJ EHIRUH WKH &RXUW\u0011\n\n\n\n\n                                             7\n\f      Case 1:23-cv-10982-ER         Document 85        Filed 02/26/26       Page 8 of 22\n\n\n\n\n        0HDQZKLOH, oQ 0D\\ \u0014\u000f \u0015\u0013\u0015\u0018\u000f 3ODLQWL\u0d75V \u00bfOHG D PRWLRQ VHHNLQJ WR PRGLI\\ WKH\n\nDXWRPDWLF GLVFRYHU\\ VWD\\\u0011 Doc. 59. 3ODLQWL\u0d75V UHTXHVW SURGXFWLRQ RI all \u201cnon-SULYLOHJHG\n\nGRFXPHQWV DOUHDG\\ SURGXFHG RU EHLQJ SURGXFHG E\\ 6XUSLTXH WR )DUIHWFK\u00b6V OLTXLGDWRUV\u00b4\n\nLQ UHVSRQVH WR a 5XOH \u0015\u0013\u0013\u0017 VXESRHQD LQ WKH &D\\PDQ 3URFHHGLQJ\u0011 Doc. 60 at 5. 3ODLQWL\u0d75V\n\nFRQWHQG WKDW OLIWLQJ WKH VWD\\ \u00b3LPSRVHV QR XQGXH EXUGHQ\u00b4 RQ 6XUSLTXH DQG \u00b3LV QHFHVVDU\\ WR\n\nSUHYHQW UHDO DQG LUUHSDUDEOH KDUP\u0011\u00b4 Id. at 7.\n\n        On May 22, 2025, non-SDUW\\ 6XUSLTXH \u00bfOHG D EULHI LQ RSSRVLWLRQ WR 3ODLQWL\u0d75V\u00b6\n\nPRWLRQ WR OLIW WKH DXWRPDWLF GLVFRYHU\\ VWD\\\u0011 Doc. 67. 6XUSLTXH DUJXHV WKDW 3ODLQWL\u0d75V KDYH\n\nQRW VDWLV\u00bfHG WKHLU KHDY\\ EXUGHQ WR MXVWLI\\ OLIWLQJ WKH VWD\\ IRU WKUHH SULQFLSDO UHDVRQV\u0011 Id. at\n\n5. )LUVW\u000f 6XUSLTXH FRQWHQGV WKDW 3ODLQWL\u0d75V KDYH IDLOHG WR VKRZ WKDW OLIWLQJ WKH VWD\\ LV\n\nQHFHVVDU\\ WR SUHVHUYH HYLGHQFH\u0011 Id. Second, 6XUSLTXH DVVHUWV WKDW 3ODLQWL\u0d75V\u00b6 FODLPV RI\n\nXQGXH SUHMXGLFH DUH \u00b3IDU WRR VSHFXODWLYH RU LQVWHDG UHYHDO LPSURSHU PRWLYHV.\u00b4 Id. \u0e60LUG\u000f\n\n6XUSLTXH DUJXHV WKDW 3ODLQWL\u0d75V\u00b6 SURSRVHG VXESRHQD \u201cIDOOV IDU VKRUW RI WKH 36/5$\u00b6V\n\nSDUWLFXODULW\\ UHTXLUHPHQW\u00b4 DQG ZRXOG LPSRVH XSRQ WKHP D \u00b3WUHPHQGRXV EXUGHQ\u0011\u00b4 Id. at\n\n5\u20136.\n\n        \u0e60H ,QGLYLGXDO 'HIHQGDQWV DOVR \u00bfOHG D EULHI in RSSRVLWLRQ WR 3ODLQWL\u0d75V\u00b6 PRWLRQ WR\n\nOLIW WKH DXWRPDWLF GLVFRYHU\\ VWD\\ RQ 0D\\ \u0015\u0015\u000f \u0015\u0013\u0015\u0018\u000f RQ HVVHQWLDOO\\ WKH VDPH WKUHH JURXQGV\n\nDV 6XUSLTXH. Doc. 68.\n\n        On 0D\\ \u0015\u001c\u000f \u0015\u0013\u0015\u0018\u000f 3ODLQWL\u0d75V \u00bfOHG D UHSO\\ LQ IXUWKHU VXSSRUW RI WKHLU PRWLRQ. Doc.\n\n72.\nII.     LEGAL STANDARD\n        \u0e60H 36/5$ PDQGDWHV WKDW \u00b3DOO GLVFRYHU\\ DQG RWKHU SURFHHGLQJV VKDOO EH VWD\\HG\n\nGXULQJ WKH SHQGHQF\\ RI DQ\\ PRWLRQ WR GLVPLVV\u000f XQOHVV WKH FRXUW \u00bfQGV XSRQ WKH PRWLRQ RI\n\nDQ\\ SDUW\\ WKDW SDUWLFXODUL]HG GLVFRYHU\\ LV QHFHVVDU\\ WR SUHVHUYH HYLGHQFH RU WR SUHYHQW\n\nXQGXH SUHMXGLFH WR WKDW SDUW\\\u0011\u00b4 15 U.S.C. \u00a7 78u-\u0017 E \u0016 % \u0011 \u0e60LV FUHDWHV \u00b3D VWURQJ\n\nSUHVXPSWLRQ WKDW QR GLVFRYHU\\ VKRXOG WDNH SODFH XQWLO D FRXUW KDV D\u0d76UPDWLYHO\\ GHFLGHG\n\nWKDW D FRPSODLQW GRHV VWDWH D FODLP XQGHU WKH VHFXULWLHV ODZV\u000f E\\ GHQ\\LQJ D PRWLRQ WR\n\n\n                                                8\n\f       Case 1:23-cv-10982-ER        Document 85        Filed 02/26/26     Page 9 of 22\n\n\n\n\nGLVPLVV\u0011\u00b4 3RGDQ\\ Y\u0011 5REHUWVRQ 6WHSKHQV\u000f ,QF\u0011\u000f \u0016\u0018\u0013 )\u0011 6XSS\u0011 \u0015G \u0016\u001a\u0018\u000f \u0016\u001a\u001b 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0017\n\nHPSKDVLV LQ RULJLQDO \u0011 7R RYHUFRPH WKDW SUHVXPSWLRQ\u000f D SODLQWL\u0d75 PXVW VKRZ WKDW WKH\n\nUHTXHVWHG GLVFRYHU\\ LV ERWK \u00b3SDUWLFXODUL]HG\u00b4 DQG LV QHFHVVDU\\ WR \u00b3 \u0014 SUHVHUYH HYLGHQFH, RU\n\n\u0015 SUHYHQW XQGXH SUHMXGLFH WR SODLQWL\u0d75V\u0011\u00b4 ,Q UH 6PLWK %DUQH\\ 7UDQVIHU $JHQW /LWLJDWLRQ,\n\nNo. 05-cv-7583 (WHP), 2006 WL 1738078, at *1 (S.D.N.Y. June 26, 2006).\n\n         $FFRUGLQJO\\\u000f FRXUWV ZLOO OLIW WKH 36/5$ GLVFRYHU\\ VWD\\ RQO\\ LQ \u00b3H[FHSWLRQDO\n\nFLUFXPVWDQFHV\u0011\u00b4 See\u000f H\u0011J\u0011, ,Q UH $2/ 7LPH :DUQHU\u000f ,QF\u0011 6HFXULWLHV /LWLJDWLRQ, No. 1500,\n\n02-cv-5575 6:. \u000f \u0015\u0013\u0013\u0016 :/ \u0015\u0014\u001a\u0015\u001c\u001b\u0017\u0015\u000f DW \u0014 6\u0011'\u00111\u0011<\u0011 -XO\\ \u0015\u0018\u000f \u0015\u0013\u0013\u0016 TXRWLQJ 9DFROG\n\n//& Y\u0011 &HUDPL, No. 00-cv-\u0017\u0013\u0015\u0017 $*6 \u000f \u0015\u0013\u0013\u0014 :/ \u0014\u0019\u001a\u001a\u0013\u0017\u000f DW \u0019 6\u0011'\u00111\u0011<\u0011 )HE\u0011 \u0014\u0019\u000f\n\n2001).\n\n         \u0e60H 36/5$ PDNHV QR GLVWLQFWLRQ EHWZHHQ GLVFRYHU\\ VRXJKW IURP SDUWLHV DQG\n\nGLVFRYHU\\ VRXJKW IURP QRQ-SDUWLHV\u0011 See 15 U.S.C. \u00a7 78u-\u0017 E \u0016 % \u001e VHH\u000f H\u0011J\u0011, )DXONQHU Y\u0011\n\nVerizRQ &RPPXQLFDWLRQV\u000f ,QF\u0011, 156 F. 6XSS\u0011 \u0015G \u0016\u001b\u0017\u000f \u0017\u0013\u0017 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0014 .\nIII.     DISCUSSION\n         3ODLQWL\u0d75V UHTXHVW WKH GLVFRYHU\\ VWD\\ EH OLIWHG IRU WKRVH \u00b3OLPLWHG\u00b4 QRQ-SULYLOHJHG\n\nGRFXPHQWV ZKLFK 6XUSLTXH KDV DOUHDG\\ SURGXFHG RU ZLOO SURGXFH WR WKH -2/V LQ UHVSRQVH\n\nto the 5XOH \u0015\u0013\u0013\u0017 VXESRHQD LQ WKH &D\\PDQ 3URFHHGLQJ\u0011 Doc. 60 at 5. 3ODLQWL\u0d75V DUJXH\n\nWKHLU UHTXHVW LV \u00b3SDUWLFXODUL]HG\u00b4 DQG WKDW UHOLHI LV QHFHVVDU\\ \u00b3WR SUHYHQW XQGXH SUHMXGLFH\u00b4\nDQG \u00b3WKH SHUPDQHQW ORVV RI GRFXPHQWV\u0011\u00b4 Id. at 5, 7, 13. \u0e60H &RXUW GLVDJUHHV\u0011\n         A. Standing\n         3ODLQWL\u0d75V contend that only the UHFLSLHQW RI D VXESRHQD KDV VWDQGLQJ WR RSSRVH it.\n\nId. at 16. 2Q WKDW EDVLV\u000f 3ODLQWL\u0d75V DUJXH WKDW WKH ,QGLYLGXDO 'HIHQGDQWV ODFN VWDQGLQJ WR\n\nRSSRVH WKH SUHVHQW PRWLRQ EHFDXVH WKH VXESRHQD LV GLUHFWHG VROHO\\ to 6XUSLTXH, not to the\n\n,QGLYLGXDO 'HIHQGDQWV\u0011 Id.\n\n         \u0e60H ,QGLYLGXDO 'HIHQGDQWV DVVHUW that all VHFXULWLHV GHIHQGDQWV have VWDQGLQJ WR\n\nRSSRVH D PRWLRQ WR OLIW WKH 36/5$ GLVFRYHU\\ VWD\\. Doc. 68 at 10. ,QGLYLGXDO 'HIHQGDQWV\n\n\n\n\n                                              9\n\f   Case 1:23-cv-10982-ER          Document 85         Filed 02/26/26     Page 10 of 22\n\n\n\n\nPDLQWDLQ WKDW WKH VWD\\ PXVW \u00bfUVW EH OLIWHG E\\ WKH &RXUW EHIRUH 3ODLQWL\u0d75V PD\\ LVVXH DQ\\\n\nWKLUG-SDUW\\ VXESRHQD\u0011 Id.\n\n       3ODLQWL\u0d75V GR QRW GLVSXWH WKDW QRQ-SDUW\\ 6XUSLTXH KDV VWDQGLQJ WR RSSRVH WKH\n\nSUHVHQW PRWLRQ WR PRGLI\\ WKH 36/5$ GLVFRYHU\\ VWD\\\u0011 Cf. ,Q UH (QURQ &RUS\u0011, 281 B.R.\n\n\u001b\u0016\u0019\u000f \u001b\u0016\u001b %DQNU\u0011 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0015 QRWLQJ, LQ WKH FRQWH[W RI D %DQNUXSWF\\ 5XOH \u0015\u0013\u0013\u0017\n\nUHTXHVW IRU GLVFRYHU\\ VWD\\HG XQGHU WKH 36/5$ LQ D UHODWHG DFWLRQ\u000f WKDW \u00b3QR SDUW\\ GLVSXWHV\n\nWKDW WKH DXWRPDWLF GLVFRYHU\\ VWD\\ RI WKH 36/5$ DSSOLHV\u00b4 WR D WKLUG SDUW\\ VHHNLQJ to\n\nRSSRVH OLIWLQJ WKH VWD\\); )DXONQHU \u0014\u0018\u0019 )\u0011 6XSS\u0011 \u0015G DW \u0017\u0013\u0017 (QRWLQJ D WKLUG SDUW\\\u00b6V REMHFWLRQV\n\nto OLIWLQJ WKH 36/5$ GLVFRYHU\\ VWD\\ and H[SODLQLQJ WKDW \u00b3WKH 36/5$ GRHV QRW GLVWLQJXLVK\n\nEHWZHHQ GLVFRYHU\\ RI QRQ-SDUWLHV DQG SDUWLHV\u00b4)\u0011 0RUHRYHU, 6XUSLTXH MRLQV in DQG DGRSWV\n\nWKH DUJXPHQWV VHW IRUWK LQ WKH RSSRVLWLRQ EULHI \u00bfOHG E\\ WKH ,QGLYLGXDO 'HIHQGDQWV\u0011 Doc.\n\n67 at 13. 6XUSLTXH VWDWHV WKDW \u201c[t]o WKH H[WHQG WKDW WKH &RXUW \u00bfQGV WKDW ,QGLYLGXDO\n\n'HIHQGDQWV ODFN VWDQGLQJ\u000f 6XUSLTXH LQFRUSRUDWHV WKRVH VDPH DUJXPHQWV KHUHLQ\u0011\u00b4 Id.\n\n$FFRUGLQJO\\\u000f WKH &RXUW QHHG QRW UHVROYH ZKHWKHU WKH ,QGLYLGXDO 'HIHQGDQWV KDYH\n\nVWDQGLQJ.\n       B. 3ODLQWL\u0d75V\u2019 5HTXHVW LV Not Particularized\n       3ODLQWL\u0d75V VHHN WR OLIW WKH 36/5$ GLVFRYHU\\ VWD\\ WR REWDLQ DOO QRQ-SULYLOHJHG\n\nGRFXPHQWV ZKLFK 6XUSLTXH KDV DOUHDG\\ SURGXFHG RU ZLOO SURGXFH WR WKH -2/V LQ UHVSRQVH\nto the 5XOH \u0015\u0013\u0013\u0017 VXESRHQD LQ WKH &D\\PDQ 3URFHHGLQJ\u0011 See Doc. 60. \u0e60LV UHTXHVW LV\n\nIDFLDOO\\ RYHUEURDG DQG LQVX\u0d76FLHQWO\\ SDUWLFXODUL]HG\u0011\n\n       )RU SXUSRVHV RI WKH 36/5$\u000f D GLVFRYHU\\ UHTXHVW LV SDUWLFXODUL]HG \u00b3ZKHQ LW LV\n\nGLUHFWHG DW VSHFL\u00bfF SHUVRQV DQG LGHQWL\u00bfHV VSHFL\u00bfF W\\SHV RI HYLGHQFH WKDW IDOO ZLWKLQ LWV\n\nVFRSH\u0011\u00b4 0RUL Y\u0011 6DLWR\u000f \u001b\u0013\u0015 )\u0011 6XSS\u0011 \u0015G \u0018\u0015\u0013\u000f \u0018\u0015\u0016 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0014) LQWHUQDO TXRWDWLRQV\n\nRPLWWHG .\n\n       3ODLQWL\u0d75V DVVHUW WKDW LWV UHTXHVWV \u00b3FRPSULVH D FOHDUO\\ GH\u00bfQHG XQLYHUVH RI\n\nGRFXPHQWV\u00b4 ZKLFK DUH \u00b3FRUH\u00b4 WR LWV FODLPV\u0011 Doc. 60 at 13, 1\u0017. <HW\u000f WKH\\ FHUWDLQO\\ FDQQRW\n\nNQRZ WKLV WR EH WUXH\u0011 1HLWKHU 6XUSLTXH QRU WKH -2/V KDYH \\HW GHWHUPLQHG\u000f PXFK OHVV\n\n\n                                            10\n\f   Case 1:23-cv-10982-ER         Document 85          Filed 02/26/26   Page 11 of 22\n\n\n\n\nDJUHHG XSRQ\u000f WKH VFRSH RI GRFXPHQWV WR EH SURGXFHG LQ UHVSRQVH WR WKH 5XOH \u0015\u0013\u0013\u0017\n\nVXESRHQD\u0011 'RF\u0011 \u0019\u001c \u0088 \u0017\u000f *UHHQEODWW 'HFO. $V D UHVXOW\u000f 3ODLQWL\u0d75V GR QRW VHHN D GH\u00bfQHG\n\nVFRSH RI GRFXPHQWV EXW UDWKHU DQ XQNQRZ DQG DV-\\HW WR EH GHWHUPLQHG XQLYHUVH RI\n\nGRFXPHQWV\u0011 &RXUWV LQ WKLV 'LVWULFW KDYH FRQVLVWHQWO\\ GHQLHG OLIWLQJ WKH 36/5$ VWD\\ ZLWK\n\nUHJDUG WR GRFXPHQWV ZKLFK KDYH QRW \\HW EHHQ SURGXFHG LQ RWKHU UHODWHG DFWLRQV\u0011 See In re\n\n%DQN RI $PHULFD &RUS\u0011 6HFXULWLHV\u000f 'HULYDWLYH\u000f DQG (PSOR\\PHQW 5HWLUHPHQW ,QFRPH\n\n6HFXULWLHV $FWLRQ (5,6$ /LWLJDWLRQ, No. 09-PGO-\u0015\u0013\u0018\u001b '& \u000f \u0015\u0013\u0013\u001c :/ \u0017\u001a\u001c\u0019\u0014\u0019\u001c\u000f DW \u0016\n\n6\u0011'\u00111\u0011<\u0011 1RY\u0011 \u0014\u0019\u000f \u0015\u0013\u0013\u001c GHQ\\LQJ SODLQWL\u0d75V\u00b6 PRWLRQ WR OLIW WKH 36/5$ GLVFRYHU\\ VWD\\ DV\n\nWR GRFXPHQWV QRW \\HW SURGXFHG\u000f EXW JUDQWLQJ WKH PRWLRQ DV WR WKH GRFXPHQWV DOUHDG\\\n\nSURGXFHG \u001e )DXONQHU, \u0014\u0018\u0019 )\u0011 6XSS\u0011 2d at \u0017\u0013\u0018 KROGLQJ WKDW SODLQWL\u0d75V\u00b6 PRWLRQ WR OLIW WKH\n\n36/5$ GLVFRYHU\\ VWD\\ ZDV LQVX\u0d76FLHQWO\\ \u00b3SDUWLFXODUL]HG\u00b4 ZKHUH LW VRXJKW \u00b3DOO GRFXPHQWV\n\nDOUHDG\\ SURGXFHG RU WR EH SURGXFHd LQ WKH IXWXUH\u00b4 .\n\n       3ODLQWL\u0d75V LGHQWLI\\ RQO\\ RQH FDVH IURP WKLV 'LVWULFW in ZKLFK WKH 36/5$ GLVFRYHU\\\n\nVWD\\ ZDV PRGL\u00bfHG WR SHUPLW WKH SODLQWL\u0d75 WR REWDLQ GRFXPHQWV WKDW KDG EHHQ\u000f DQG ZRXOG\n\nODWHU EH\u000f SURGXFHG WR WKH GHIHQGDQW E\\ WKH 6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ DQG WKH\n\n8QLWHG 6WDWHV $WWRUQH\\\u00b6V R\u0d76FH LQ FRQQHFWLRQ ZLWK RWKHU UHODWHG FDVHV\u0011 .DSODQ Y\u0011 6\u0011$\u0011&\u0011\n\n&DSLWDO $GYLVRUV\u000f /\u00113\u0011\u000f \u001c\u0017\u001a )\u0011 6XSS\u0011 2d 368, 370 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0016 \u0011 \u0e60H &RXUW \u00bfQGV\n\n.DSODQ GLVWLQJXLVKDEOH\u0011 \u0e60HUH\u000f WKH SODLQWL\u0d75 DQG RQH RI WKH GHIHQGDQWV KDG DJUHHG What the\n\nGHIHQGDQW ZRXOG SURGXFH that OLPLWHG XQLYHUVH RI GRFXPHQWV. .DSODQ\u000f \u001c\u0017\u001a )\u0011 6XSS\u0011 \u0015G at\n\n369. \u0e60DW FLUFXPVWDQFH LV QRW FRPSDUDEOH WR WKH VLWXDWLRQ KHUH\u000f ZKHUH WKH SDUW\\ IURP\n\nZKRP 3ODLQWL\u0d75V VHHN GLVFRYHU\\ D\u0d76UPDWLYHO\\ RSSRVHV OLIWLQJ WKH VWD\\\u0011 See Doc. 67. \u0e60H\n\nUHPDLQLQJ FDVHV FLWHG E\\ 3ODLQWL\u0d75V\u000f PDQ\\ RI ZKLFK DUH IURP RXWVLGH WKLV 'LVWULFW\u000f DUH\n\nLQDSSRVLWH\u0011 See Doc. 60 at 13\u2013\u0014\u0017\u0011 In all but one\u000f WKH GLVFRYHU\\ VRXJKW LQYROYHG D FORVHG\n\nXQLYHUVH RI GRFXPHQWV WKDW KDG DOUHDG\\ EHHQ FROOHFWHG\u000f UHYLHZHG\u000f DQG SURGXFHG\u000f QRW DQ\n\nRSHQ-HQGHG\u000f XQERXQGHG UHTXHVW IRU DQ XQGH\u00bfQHG VHW RI GRFXPHQWV \\HW WR EH LGHQWL\u00bfHG RU\n\nSURGXFHG\u0011 See\u000f H\u0011J., IQ UH )LUVW(QHUJ\\ &RUS\u0011 6HFXULWLHV /LWLJDWLRQ\u000f No. 20-cv-03785,\n\n\u0015\u0013\u0015\u0014 :/ \u0015\u0017\u0014\u0017\u001a\u0019\u0016\u000f DW \u0017 6\u0011'\u0011 2KLR -XQH \u0014\u0017\u000f \u0015\u0013\u0015\u0014 \u00bfQGLQJ SODLQWL\u0d75V\u00b6 GLVFRYHU\\ UHTXHVW\n\n\n                                            11\n\f   Case 1:23-cv-10982-ER           Document 85       Filed 02/26/26      Page 12 of 22\n\n\n\n\nVX\u0d76FLHQWO\\ SDUWLFXODUL]HG ZKHUH LW ZDV OLPLWHG WR \u00b3WKRVH PDWHULDOV WKDW KDYH DOUHDG\\ EHHQ\n\nSURGXFHG\u00b4 LQ SDUDOOHO OHJDO PDWWHUV \u001e 3HQVLRQ 7UXVW )XQG IRU 2SHUDWLQJ (QJLQHHUV Y\u0011\n\nDVVLVWHG /LYLQJ &RQFHSWV\u000f ,QF\u0011\u000f \u001c\u0017\u0016 )\u0011 6XSS\u0011 \u0015G \u001c\u0014\u0016\u000f \u001c\u0014\u0018 (\u0011'\u0011 :LV\u0011 \u0015\u0013\u0014\u0016 \u00bfQGLQJ\n\nSODLQWL\u0d75V\u00b6 GLVFRYHU\\ UHTXHVW VX\u0d76FLHQWO\\ SDUWLFXODUL]HG ZKHUH LW VRXJKW RQO\\ \u00b3UHOHYDQW\n\nPDWHULDOV WKDW KDYH DOUHDG\\ EHHQ SURGXFHG LQ RWKHU SURFHHGLQJV\u00b4 DQG ZDV QRW \u00b3D EODQNHW\n\nUHTXHVW IRU DOO SRWHQWLDOO\\-UHOHYDQW PDWHULDOV\u00b4).\n\n       3ODLQWL\u0d75V\u00b6 UHTXHVW LV DOVR LPSHUPLVVLEO\\ RYHUEURDG\u0011 \u0e60H -2/V\u00b6 VXESRHQD ZDV\n\nLVVXHG SXUVXDQW WR 5XOH \u0015\u0013\u0013\u0017 RI WKH )HGHUDO 5XOHV RI %DQNUXSWF\\ 3URFHGXUH\u000f ZKLFK\n\nDXWKRUL]HV GLVFRYHU\\ IDU EURDGHU WKDQ WKDW SHUPLWWHG XQGHU WKH )HGHUDO 5XOHV RI &LYLO\n\n3URFHGXUH\u000f DQG YDVWO\\ EURDGHU WKDQ ZKDW 3ODLQWL\u0d75V ZRXOG EH HQWLWOHG WR DW DQ\\ SRLQW LQ WKLV\n\nVHFXULWLHV DFWLRQ\u0011 6HH ,Q UH (QURQ, 281 B.R. at \u001b\u0017\u0013\u2013\u0017\u0014 QRWLQJ D GLVWLQFWLRQ EHWZHHQ the\n\n\u00b3EURDG\u00b4 QDWXUH RI 5XOH \u0015\u0013\u0013\u0017 GLVFRYHU\\ ZLWK WKH PRUH UHVWULFWLYH GLVFRYHU\\ available\n\nXQGHU WKH )HGHUDO 5XOHV RI 3URFHGXUH \u001e ,Q UH 'UH[HO %XUQKDP /DPEHUW *URXS\u000f ,QF\u0011, 123\n\nB.R. 702, 711 %DQNU\u0011 6\u0011'\u00111\u0011<\u0011 \u0014\u001c\u001c\u0014 QRWLQJ WKDW \u00b35XOH \u0015\u0013\u0013\u0017 GLVFRYHU\\ LV EURDGHU WKDQ\n\nGLVFRYHU\\ XQGHU WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH\u00b4 DQG PD\\ SURSHUO\\ EH OLNHQHG WR D\n\n\u201c\u00bfVKLQJ H[SHGLWLRQ\u00b4 \u0011 \u0e60LV LV FRPSRXQGHG E\\ WKH IDFW WKDW\u000f DV SHU WKH 6$&\u000f WKH &ODVV\n\n3HULRG LQ WKLV DFWLRQ VSDQV IURP 'HFHPEHU \u0014\u000f \u0015\u0013\u0015\u0015\u000f WKURXJK 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016, Doc. 78\n\n\u00b6 1, ZKHUHDV WKH 5XOH \u0015\u0013\u0013\u0017 VXESRHQD VHHNV GRFXPHQWV FRYHULQJ PRUH WKDQ \u00bfYH \\HDUV\u000f\n\nIURP -DQXDU\\ \u0015\u0013\u0014\u001c WKURXJK -DQXDU\\ \u0015\u0013\u0015\u0017\u0011 See Doc. 61-2 DW \u0017\u0019\u2013\u0018\u0018\u000f $SWRQ 'HFO.\n\n3ODLQWL\u0d75V\u00b6 UHTXHVW WKHUHIRUH ULVNV VZHHSLQJ LQ ODUJH YROXPHV RI PDWHULDOV WKDW DUH\n\nLUUHOHYDQW WR DQG ZHOO RXWVLGH WKH VFRSH RI WKLV VHFXULWLHV DFWLRQ\u0011 See )DXONQHU, 156 F.\n\n6XSS\u0011 \u0015G DW \u0017\u0013\u0017 GHQ\\LQJ SODLQWL\u0d75V\u00b6 UHTXHVW WR PRGLI\\ WKH 36/5$ GLVFRYHU\\ VWD\\ DV QRW\n\nSDUWLFXODUL]HG ZKHQ PDQ\\ RI WKH GRFXPHQWV UHTXHVWHG ZHUH \u00b3QRW UHOHYDQW WR WKH VHFXULWLHV\n\nIUDXG FODLP\u00b4 \u001e ,Q UH /RWWHU\\\u0011FRP\u000f ,QF\u0011 6HFXULWLHV /LWLJDWLRQ, 22-cv-07111 (JLR), \u0015\u0013\u0015\u0017 :/\n\n\u0018\u0015\u0015\u0019\u0017\u0013\u0013\u000f DW \u0015 6\u0011'\u00111\u0011<\u0011 'HF\u0011 \u0015\u0019\u000f \u0015\u0013\u0015\u0017 GHQ\\LQJ SODLQWL\u0d75V\u00b6 PRWLRQ WR PRGLI\\ D 36/5$\n\nGLVFRYHU\\ VWD\\ ZKHQ SODLQWL\u0d75V KDYH IDLOHG WR OLPLW WKHLU GLVFRYHU\\ UHTXHVWV \u201cWR LVVXHV\n\nUHOHYDQW WR WKH FODLPV EHIRUH WKH [c]RXUW\u00b4 \u0011 3ODLQWL\u0d75V FRQFHGH DV PXFK\u000f DFNQRZOHGJLQJ\n\n\n                                              12\n\f   Case 1:23-cv-10982-ER             Document 85        Filed 02/26/26      Page 13 of 22\n\n\n\n\nWKDW WKH -2/V\u00b6 VXESRHQD \u00b3UHODWHV WR VRPH RI WKH YHU\\ VDPH \u00bfQDQFLDO VWDWHPHQWV DQG SXEOLF\n\nSURFODPDWLRQV WKDW 3ODLQWL\u0d75V DOOHJH DUH IDOVH DQG PLVOHDGLQJ\u0011\u00b4 'RF\u0011 \u0019\u0013 DW \u0014\u0017 HPSKDVLV\n\nadded).\n\n          )LQDOO\\\u000f 3ODLQWL\u0d75V DFNQRZOHGJH WKDW WKH XQLYHUVH RI GRFXPHQWV WKH\\ VHHN LQFOXGHV\n\nDSSUR[LPDWHO\\ \u0014\u0013\u0013\u000f\u0013\u0013\u0013 GRFXPHQWV\u0011 Doc. 72 at \u0017\u001e VHH DOVR 'RF\u0011 \u0019\u001c \u0088 \u0017\u000f *UHHQEODWW 'HFO.\n\n&RXUWV LQ WKLV DLVWULFW KDYH FRQVLVWHQWO\\ KHOG WKDW UHTXHVWV RI WKLV VL]H DQG H[WHQW FDQQRW\n\nSODXVLEO\\ EH FKDUDFWHUL]HG DV \u00b3SDUWLFXODUL]HG\u00b4 IRU SXUSRVHV RI OLIWLQJ WKH 36/5$\n\nGLVFRYHU\\ VWD\\\u0011 See In re /RWWHU\\\u0011FRP\u000f \u0015\u0013\u0015\u0017 :/ \u0018\u0015\u0015\u0019\u0017\u0013\u0013\u000f DW \u0015 \u00bfQGLQJ D UHTXHVW IRU\n\n\u00b3WHQV RI WKRXVDQGV RI SDJHV RI GRFXPHQWV\u00b4 WR EH \u00b3H[SDQVLYH DQG LQVX\u0d76FLHQWO\\\n\nSDUWLFXODUL]HG\u00b4 WR MXVWLI\\ PRGL\u00bfFDWLRQ RI WKH 36/5$ GLVFRYHU\\ VWD\\ \u001e )DXONQHU, 156 F.\n\n6XSS\u0011 \u0015G DW \u0017\u0013\u0017 \u00bfQGLQJ WKDW SODLQWL\u0d75V\u00b6 IDLOHG WR VDWLVI\\ WKH EXUGHQ RI VHHNLQJ\n\nSDUWLFXODUL]HG GLVFRYHU\\ ZKHUH WKH\\ UHTXHVWHG \u00b3PRUH WKDQ \u0017\u0018\u000f\u0013\u0013\u0013 SDJHV RI GRFXPHQWV\u00b4 \u0011\n\n$FFRUGLQJO\\\u000f 3ODLQWL\u0d75V\u00b6 H[SDQVLYH UHTXHVW PD\\ EH GHQLHG RQ WKLV EDVLV DORQH\u0011\n\n          (YHQ DVVXPLQJ\u000f DUJXHQGR\u000f WKDW 3ODLQWL\u0d75V KDG VDWLV\u00bfHG WKH SDUWLFXODUL]DWLRQ\n\nUHTXLUHPHQW\u000f ZKLFK WKH\\ KDYH QRW\u000f WKHLU PRWLRQ ZRXOG VWLOO IDLO EHFDXVH WKH\\ KDYH QRW\n\nGHPRQVWUDWHG WKDW WKH UHTXHVWHG GLVFRYHU\\ LV \u00b3QHFHVVDU\\ WR SUHVHUYH HYLGHQFH RU WR\n\nSUHYHQW XQGXH SUHMXGLFH\u000f\u00b4 DV UHTXLUHG E\\ 15 U.S.C. \u00a7 78u\u2013\u0017 E \u0016 % \u000f DV GLVFXVVHG EHORZ\u0011\n          C. 3ODLQWL\u0d75V\u00b6 )DLO WR 'HPRQVWUDWH \u0e60DW \u0e60HLU 3URSRVHG 'LVFRYHU\\ LV\n             1HFHVVDU\\ WR 3UHVHUYH (YLGHQFH\n          )RU SXUSRVHV RI WKH 36/5$\u000f \u00b3>D@ SDUW\\ DOOHJLQJ WKDW GLVFRYHU\\ LV QHFHVVDU\\ WR\n\nSUHVHUYH HYLGHQFH PXVW\u00ab PDNH D VSHFL\u00bfF VKRZLQJ WKDW WKH ORVV RI HYLGHQFH LV LPPLQHQW\n\nDV RSSRVHG WR PHUHO\\ VSHFXODWLYH\u0011\u00b4 ,Q UH 9LYHQGL 8QLYHUVDO\u000f 6\u0011$\u0011 6HFXULWLHV /LWLJDWLRQ,\n\n\u0016\u001b\u0014 )\u0011 6XSS\u0011 \u0015G \u0014\u0015\u001c\u000f \u0014\u0016\u0013 RPLVVLRQ LQ RULJLQDO LQWHUQDO TXRWDWLRQV RPLWWHG .\n\n          3ODLQWL\u0d75V FRQWHQG WKDW D SDUWLDO OLIW RI WKH GLVFRYHU\\ LV QHFHVVDU\\ WR SUHVHUYH\n\nevidence. Doc. 60 at 7, 18\u201319. \u0e60H\\ EDVH WKHLU DUJXPHQW RQ WZR DVVHUWLRQV\u0011 )LUVW\u000f\n\n3ODLQWL\u0d75V FODLP WKDW 6XUSLTXH +ROGLQJV /LPLWHG\u000f WKH SDUHQW HQWLW\\ RI 6XUSLTXH\u000f LV FXUUHQWO\\\n\nXQGHUJRLQJ GLVVROXWLRQ\u0011 Id. at 7, 18. $V D UHVXOW\u000f 3ODLQWL\u0d75V DUJXH WKDW DEVHQW WKH UHTXHVWHG\n\n\n\n                                                13\n\f   Case 1:23-cv-10982-ER            Document 85      Filed 02/26/26      Page 14 of 22\n\n\n\n\nUHOLHI DQG DVVXUDQFHV IURP 6XUSLTXH WKDW WKH\\ KDYH WKH DSSURSULDWH SROLFLHV LQ SODFH WR\n\nSUHVHUYH DQ\\ SRWHQWLDOO\\ UHOHYDQW GRFXPHQWV\u000f WKHUH LV D VXEVWDQWLDO ULVN WKDW SRWHQWLDOO\\\n\nUHOHYDQW PDWHULDOV PD\\ EH ORVW\u0011 Id. at 18\u201319. 6HFRQG\u000f 3ODLQWL\u0d75V DVVHUW WKDW 6XUSLTXH KDV\n\nDOUHDG\\ ORVW UHOHYDQW LQIRUPDWLRQ\u000f QDPHO\\ DFFHVV WR WKH YLUWXDO GDWD URRP WKDW ZDV FUHDWHG\n\nIRU WKH VDOH RI )DUIHWFK WR &RXSDQJ\u000f WKHUHIRUH KHLJKWHQLQJ WKH ULVN WKDW RWKHU SRWHQWLDOO\\\n\nUHOHYDQW LQIRUPDWLRQ FRXOG EH ORVW\u0011 Id. at 7, 19. )RU WKHVH UHDVRQV, 3ODLQWL\u0d75V DUJXH WKDW\n\nthey \u201cPD\\ QHYHU EH DEOH WR REWDLQ WKH LQIRUPDWLRQ VRXJKW LI LW LV QRW SURGXFHG QRZ\u0011\u00b4 Id.\n\nat 19.\n\n         6XUSLTXH DQG WKH ,QGLYLGXDO 'HIHQGDQWV UHVSRQG WKDW 3ODLQWL\u0d75V\u00b6 DUJXPHQW LV\n\nSUHPLVHG RQ WZR IDFWXDO LQDFFXUDFLHV. )LUVW\u000f WKH\\ FODLP WKDW 6XUSLTXH LV FXUUHQWO\\ LQ\n\nSRVVHVVLRQ RI WKH YLUWXDO GDWD URRP GRFXPHQWV DQG KDV DOUHDG\\ SURGXFHG WKHP WR WKH\n\n-2/V ZKR KDYH FRQ\u00bfUPHG UHFHLSW RI WKHVH GRFXPHQWV\u0011 'RF\u0011 \u0019\u001c \u0088 \u0014\u0015\u000f *UHHQEODWW 'HFO.\n\n6HFRQG\u000f ZKLOH WKH\\ DFNQRZOHGJH WKDW 6XUSLTXH +ROGLQJV ZDV EULH\u00c0\\ VXEMHFW WR DQ\n\nLQYROXQWDU\\ GLVVROXWLRQ SURFHHGLQJ LQ WKH 8QLWHG .LQJGRP EHJLQQLQJ $SULO \u0014\u0018\u000f \u0015\u0013\u0015\u0018\u000f\n\nUHVXOWLQJ IURP LQDGYHUWHQWO\\ PLVVLQJ D VWDWXWRU\\ \u00bfOLQJ GHDGOLQH\u000f it KDV VLQFH FRPSOHWHG WKH\n\nQHFHVVDU\\ \u00bfOLQJV RQ 0D\\ \u0015\u000f \u0015\u0013\u0015\u0018\u000f DQG WKH GLVVROXWLRQ SURFHHGLQJ ZDV FDQFHOOHG WKH\n\nIROORZLQJ GD\\\u0011 Id. \u00b6\u00b6 8, 9. $FFRUGLQJO\\\u000f WKH\\ PDLQWDLQ WKDW 6XUSLTXH DQG 6XUSLTXH\n\n+ROGLQJV DUH ERWK VROYHQW HQWLWLHV\u000f QHLWKHU RI ZKLFK DUH EHLQJ GLVVROYHG\u0011 Id. \u00b6 10.\n\n6XUSLTXH IXUWKHU QRWHV WKDW\u000f &RXSDQJ ,QF\u0011\u000f ZKLFK LV LQFRUSRUDWHG LQ 'HODZDUH DQG LV WKH\n\nXOWLPDWH EHQH\u00bfFLDO RZQHU RI 6XUSLTXH DQG 6XUSLTXH +ROGLQJV\u000f LV D VROYHQW SXEOLF\n\nFRPSDQ\\\u0011 Doc. 67 at 17.\n\n         3ODLQWL\u0d75V\u00b6 DUJXPHQW\u000f SUHPLVHG HQWLUHO\\ RQ IDFWV ZKLFK GR QRW UH\u00c0HFW WKH FXUUHQW\n\nVWDWH RI D\u0d75DLUV\u000f PXVW IDLO\u0011 $OWKRXJK 3ODLQWL\u0d75V DVVHUW LQ WKHLU UHSO\\ WKDW\u000f QRWZLWKVWDQGLQJ\n\n6XUSLTXH\u00b6V FODLP WR KDYH UHJDLQHG DFFHVV WR WKH data in the YLUWXDO URRP DQG UHVROXWLRQ RI\n\nWKH VWDWXWRU\\ \u00bfOLQJ LVVXH\u000f \u00b3PLVWDNHV KDYH DOUHDG\\ EHHQ PDGH.\u00b4 Doc. 72 at 10. 3ODLQWL\u0d75V\u00b6\n\nDUJXPHQW LV IDU WRR VSHFXODWLYH DQG WKXV IDOOV ZHOO VKRUW RI PDNLQJ WKH UHTXLVLWH VKRZLQJ\n\nWKDW HYLGHQFH LV DW ULVN RI ORVV\u0011\n\n\n                                             \u0014\u0017\n\f   Case 1:23-cv-10982-ER           Document 85         Filed 02/26/26      Page 15 of 22\n\n\n\n\n       ,Q DGGLWLRQ\u000f WKH &RXUW \u00bfQGV WKHUH WR EH VX\u0d76FLHQW PHDVXUHV LQ SODFH WR HQVXUH WKH\n\nSUHVHUYDWLRQ RI DQ\\ SRWHQWLDOO\\ UHOHYDQW LQIRUPDWLRQ\u0011 3ODLQWL\u0d75V\u00b6 SURSRVHG VXESRHQD LV\n\nOLPLWHG RQO\\ to WKRVH QRQ-SULYLOHJHG GRFXPHQWV ZKLFK 6XUSLTXH KDV DOUHDG\\ SURGXFHG RU\n\nZLOO SURGXFH WR WKH -2/V LQ UHVSRQVH WR the 5XOH \u0015\u0013\u0013\u0017 VXESRHQD LQ WKH &D\\PDQ\n\n3URFHHGLQJ\u0011 Doc. 61-3. $V 6XUSLTXH FRUUHFWO\\ QRWHV\u000f WKH\\ KDYH DQ LQGHSHQGHQW\n\nREOLJDWLRQ WR SUHVHUYH GRFXPHQWV LQ FRQQHFWLRQ ZLWK WKH VXESRHQD\u0011 Doc. 67 at 15.\n\n0RUHRYHU\u000f 6XUSLTXH KDV UHSUHVHQWHG WKDW LW ZLOO SUHVHUYH DOO GRFXPHQWV UHVSRQVLYH WR WKH\n\nVXESRHQD IRU D SHULRG RI WKUHH \\HDUV DQG KDV H[SUHVVed D ZLOOLQJQHVV WR UHYLVLW LWV\n\nSUHVHUYDWLRQ REOLJDWLRQ VKRXOG 3ODLQWL\u0d75V\u00b6 FODLP UHPDLQ RQJRLQJ\u0011 'RF\u0011 \u0019\u001c \u0088 \u001a\u000f *UHHQEODWW\n\nDecl.; See DOVR :DOGPDQ Y\u0011 :DFKRYLD &RUS\u0011, No. 08-cv-2913 (SAS), 2009 WL 86763, at\n\n \u0014 6\u0011'\u00111\u0011<\u0011 -DQ\u0011 \u0014\u0015\u0011 \u0015\u0013\u0013\u001c JLYLQJ \u00b3VRPH FUHGHQFH WR GHIHQGDQWV\u00b6 H[SUHVV DVVXUDQFH\u00b4\n\nWKDW WKH\\ KDYH WDNHQ DQG ZLOO FRQWLQXH WR WDNH VWHSV WR SUHVHUYH UHOHYDQW HYLGHQFH \u001e In re\n\n$2/ 7LPH :DUQHU\u000f \u0015\u0013\u0013\u0016 :/ \u0015\u0014\u001a\u0015\u001c\u001b\u0017\u0015\u000f DW 2 DFFHSWLQJ GHIHQGDQWV\u00b6 DVVXUDQFH \u00b3WKDW WKH\\\n\nZLOO XSKROG WKHLU REOLJDWLRQ XQGHU WKH 36/5$ WR SUHVHUYH HYLGHQFH\u00b4 \u0011\n\n       )XUWKHU\u000f 3ODLQWL\u0d75V\u00b6 SURSRVHG VXESRHQD QHFHVVDULO\\ LQFOXGHV RQO\\ WKRVH GRFXPHQWV\n\nWR EH SURGXFHG WR WKH -2/V\u0011 'RF\u0011 \u0019\u0013 DW \u0018\u000f \u001a\u000f \u0014\u0017\u0011 6XUSLTXH FRUUHFWO\\ QRWHV WKDW WKH -2/V\u000f\n\nRQ EHKDOI RI 'HIHQGDQW )DUIHWFK /LPLWHG\u000f KDYH WKHLU RZQ REOLJDWLRQV XQGHU WKH 36/5$ WR\n\nSUHVHUYH HYLGHQFH UHOHYDQW WR 3ODLQWL\u0d75V\u00b6 FODLPV DJDLQVW LW\u0011 See 15 U.S.C. \u00a7 78u-\n\n\u0017 E \u0016 & (i) \u00b3'XULQJ WKH SHQGHQF\\ RI DQ\\ VWD\\ RI GLVFRYHU\\ SXUVXDQW WR WKLV SDUDJUDSK \u0011\n\n. . DQ\\ SDUW\\ WR WKH DFWLRQ ZLWK DFWXDO QRWLFH RI WKH DOOHJDWLRQV FRQWDLQed in thH FRPSODLQW\n\nVKDOO WUHDW DOO GRFXPHQWV \u0011 \u0011 \u0011 DV LI WKH\\ ZHUH WKH VXEMHFW RI D FRQWLQXLQJ UHTXHVW IRU\n\nSURGXFWLRQ RI GRFXPHQWV IURP DQ RSSRVLQJ SDUW\\ XQGHU WKH )HGHUDO 5XOHV RI &LYLO\n\n3URFHGXUH\u0011\u00b4 HPSKDVLV DGGHG . 3ODLQWL\u0d75V do not GLVSXWH WKH DELOLW\\ RU ZLOOLQJQHVV RI WKH\n\n-2/V WR SUHVHUYH WKRVH GRFXPHQWV ZKLFK they UHFHLYH IURP 6XUSLTXH\u0011\n\n       )RU WKH DIRUHPHQWLRQHG UHDVRQV\u000f 3ODLQWL\u0d75V KDYH IDLOHG WR LGHQWLI\\ DQ\\ IDFWV\n\nGHPRQVWUDWLQJ D ULVN RI HYLGHQWLDU\\ ORVV\u000f OHW DORQH DQ LPPLQHQW RQH\u0011\n\n\n\n\n                                              15\n\f   Case 1:23-cv-10982-ER           Document 85         Filed 02/26/26      Page 16 of 22\n\n\n\n\n       D. 3ODLQWL\u0d75V\u00b6 )DLO WR (VWDEOLVK 8QGXH Prejudice\n       )RU WKH SXUSRVHV RI WKH 36/5$\u000f &RXUWV LQ WKLV 'LVWULFW KDYH FRQVWUXHG \u00b3XQGXH\n\nSUHMXGLFH\u00b4 WR PHDQ \u00b3LPSURSHU RU XQIDLU WUHDWPHQW DPRXQWLQJ WR VRPHWKLQJ OHVV WKDQ\n\nLUUHSDUDEOH KDUP.\u00b4 ,Q UH 9LYHQGL 8QLYHUVDO, \u0016\u001b\u0014 )\u0011 6XSS\u0011 \u0015G at \u0014\u0016\u0013 TXRWLQJ 9DFROG, 2001\n\n:/ \u0014\u0019\u001a\u001a\u0013\u0017\u000f DW \u0019). $FFRUGLQJO\\\u000f \u00b3H[FHSWLRQDO FLUFXPVWDQFHV\u00b4 PXVW H[LVW LQ RUGHU WR\n\nMXVWLI\\ OLIWLQJ WKH VWD\\. ,Q UH $2/ 7LPH :DUQHU, 2003 :/ \u0015\u0014\u001a\u0015\u001c\u001b\u0017\u0015\u000f DW \u0014 TXRWLQJ\n\n9DFROG, \u0015\u0013\u0013\u0014 :/ \u0014\u0019\u001a\u001a\u0013\u0017\u000f DW \u0019).\n\n       3ODLQWL\u0d75V DUJXH WKDW WKH\\ ZLOO VX\u0d75HU XQGXH SUHMXGLFH LI WKH VWD\\ LV QRW OLIWHG\u000f\n\nDVVHUWLQJ WKDW )DUIHWFK\u00b6V RQO\\ DVVHWV DYDLODEOH WR VDWLVI\\ DQ\\ MXGJHPHQW DUH LWV LQVXUDQFH\n\nSROLFLHV\u0011 Doc. 60 at 6, 17. $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f they DQG WKH -2/V DUH SXUVXLQJ \u00b3WKH\n\nVDPH OLPLWHG LQVXUDQFH SURFHHGV\u000f\u00b4 Id. at 5, and WKH -2/V KDYH DOOHJHGO\\ PDGH FOHDU WKHLU\n\nintention WR PD[LPL]H YDOXH IRU FUHGLWRUV UDWKHU WKDQ IRU the VKDUHKROGHUV UHSUHVHQWHG E\\\n\n3ODLQWL\u0d75V LQ WKLV DFWLRQ\u0011 Id. at 17. 3ODLQWL\u0d75V DVVHUW WKDW WKH\\ \u00b3IDFH D OLNHOLKRRG WKDW\u000f E\\ WKH\n\nWLPH WKH GLVFRYHU\\ VWD\\ KHUH LV OLIWHG\u000f WKHUH ZLOO EH QR DVVHWV OHIW WR VDWLVI\\ DQ\\ MXGJPHQW\n\nDJDLQVW DQ\\ RI WKH GHIHQGDQWV\u0011\u00b4 Id.\n\n       6XUSLTXH DGRSWV WKH XQGHUVWDQGLQJ RI WKH ,QGLYLGXDO 'HIHQGDQWV WKDW \u00b3GL\u0d75HUHQW\n\nLQVXUDQFH FRYHUDJH DSSOLHV GXH WR WKH GL\u0d75HUHQW WLPH SHULRG DQG VXEMHFW PDWWHU\u0011\u00b4 Doc. 68\n\nat 12; VHH Doc. 67 at 13. 3ODLQWL\u0d75V KDYH R\u0d75HUHG QR HYLGHQFH WKDW WKH VHFXULWLHV DFWLRQ DQG\nWKH &D\\PDQ 3URFHHGLQJ LPSOLFDWH WKH VDPH SRRO RI LQVXUDQFH SURFHHGV\u0011 $V WKH SDUW\\\n\nEHDULQJ WKH EXUGHQ RI GHPRQVWUDWLQJ XQGXH SUHMXGLFH\u000f 3ODLQWL\u0d75V\u00b6 XQVXSSRUWHG FODLP LV\n\nLQVX\u0d76FLHQW\u0011 See IQ UH 9LYHQGL, 381 F. 6XSS\u0011 2d at 130\u2013\u0016\u0014 GHQ\\LQJ PRWLRQ WR PRGLI\\ WKH\n\n36/5$ GLVFRYHU\\ VWD\\ DIWHU \u00bfQGLQJ \u00b3QR HYLGHQFH\u00b4 WKDW SODLQWL\u0d75V IDFH WKH SURVSHFW RI\n\nEHLQJ OHIW ZLWKRXW D UHPHG\\ DV D UHVXOW RI VHWWOHPHQW GLVFXVVLRQV RU RWKHU LQWHUYHQLQJ\n\nHYHQWV\u000f VXFK DV EDQNUXSWF\\ HPSKDVLV DGGHG \u0011\n\n       (YHQ DVVXPLQJ\u000f DUJXHQGR\u000f WKDW 3ODLQWL\u0d75V DQG WKH -2/V DUH SXUVXLQJ WKH VDPH\n\nOLPLWHG LQVXUDQFH IXQGV\u000f 3ODLQWL\u0d75V\u00b6 DUJXPHQW QRQHWKHOHVV UHVWV HQWLUHO\\ RQ VSHFXODWLRQ\u0011\n\n\u00b30HUH VSHFXODWLRQ DERXW KLJKO\\ FRQWLQJHQW SRVVLELOLWLHV RI IXWXUH SUHMXGLFH GRHV QRW\n\n\n\n                                              16\n\f   Case 1:23-cv-10982-ER          Document 85        Filed 02/26/26     Page 17 of 22\n\n\n\n\nGHPRQVWUDWH WKDW OLIWLQJ WKH VWD\\ LV \u00b5QHFHVVDU\\ \u00ab WR SUHYHQW XQGXH SUHMXGLFH\u0011\u00b6\u00b4 In re\n\n5HIFR\u000f ,QF\u0011, No. 05-cv-8626 (GEL), 2006 WL 2337212, at *3 6\u0011'\u00111\u0011<\u0011 $XJ\u0011 \u001b\u000f \u0015\u0013\u0013\u0019 .\n\n7R GDWH\u000f WKH -2/V KDYH QRW \u00bfOHG DQ\\ FODLPV DJDLQVW WKH ,QGLYLGXDO 'HIHQGDQWV RU\n\n6XUSLTXH\u000f 'RF\u0011 \u0019\u0017 DW \u0018\u000f QRU LV WKHUH DQ\\ HYLGHQFH WKDW WKH -2/V KDYH HQJDJHG LQ\n\nVHWWOHPHQW GLVFXVVLRQV ZLWK WKH ,QGLYLGXDO 'HIHQGDQWV RU 6XUSLTXH\u0011 See ,Q UH $2/ 7LPH\n\n:DUQHU, 2003 :/ \u0015\u0014\u001a\u0015\u001c\u001b\u0017\u0015\u000f DW \u0014 \u00bfQGLQJ that SODLQWL\u0d75V\u00b6 DVVHUWLRQ WKDW VHWWOHPHQW\n\nGLVFXVVLRnV EHWZHHQ WKH GHIHQGDQWV DQG WKH JRYHUQPHQW ZHUH RQJRLQJ ZDV \u00b3SUHPDWXUH\u00b4\n\nIRU SODLQWL\u0d75V WR FRQFOXGH WKDW DQ LPSHQGLQJ VHWWOHPHQW FRXOG SUHMXGLFH WKHLU SRWHQWLDO\n\nUHFRYHU\\); \u0016\u001b\u0013\u0018\u0017\u0017 &DQDGD\u000f ,QF\u0011 Y\u0011 $VSHQ 7HFKQRORJ\\\u000f ,QF\u0011\u000f No. 07-cv-\u0014\u0015\u0013\u0017 (JFK), 2007\n\n:/ \u0015\u0013\u0017\u001c\u001a\u0016\u001b\u000f DW \u0016 6\u0011'\u00111\u0011<\u0011 -XO\\ \u0014\u001b\u000f \u0015\u0013\u0013\u001a KROGLQJ that the \u201cPHUH SRVVLELOLW\\ that\n\nSODLQWL\u0d75V FRXOG EH SUHMXGLFHG\u00b4 E\\ IXWXUH VHWWOHPHQW WDONV EHWZHHQ WKH individual\n\ndHIHQGDQWV DQG WKH 6(& GRHV QRW FRQVWLWXWH XQGXH SUHMXGLFH .\n\n       ,Q IDFW\u000f PDQ\\ RI WKH FDVHV FLWHG E\\ 3ODLQWL\u0d75V involve VLWXDWLRQV ZKHUH WKH\n\nGHIHQGDQWV KDG DOUHDG\\ UHDFKHG VHWWOHPHQWV ZLWK RWKHU SDUWLHV DQG WKHUHIRUH DUH\n\nGLVWLQJXLVKDEOH. See\u000f e\u0011J\u0011, :DOGPDQ, \u0015\u0013\u0013\u001c :/ \u001b\u0019\u001a\u0019\u0016\u000f DW \u0015 OLIWLQJ WKH 36/5$ GLVFRYHU\\\n\nVWD\\ IRU XQGXH SUHMXGLFH \u00b3>J@LYHQ WKH XQLTXH SURFHGXUDO SRVWXUH RI WKLV OLWLJDWLRQ\u00b4 DQG\n\n\u00b3SODLQWL\u0d75V\u00b6 XQXVXDO QHHG IRU DQ HDUO\\ UHYLHZ RI FUXFLDO UHFRUGV\u00b4 ZKHUH \u00b3SODLQWL\u0d75V PXVW\n\nGHWHUPLQH ZKHWKHU WR FRQWLQXH ZLWK WKLV FDVH GHVSLWH WKH VHWWOHPHQW UHDFKHG EHWZHHQ\n\nGHIHQGDQWV DQG WKH 6(&\u000f ZKLFK ZLOO D\u0d75RUG VRPH FRPSHQVDWLRQ WR WKH SODLQWL\u0d75 FODVV\u00b4 \u001e In\n\nUH /H%UDQFK 6HFXULWLHV /LWLJDWLRQ\u000f \u0016\u0016\u0016 )\u0011 6XSS\u0011 \u0015d 178, 183, \u0014\u001b\u0017 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0017 OLIWLQJ\n\nWKH 36/5$ GLVFRYHU\\ VWD\\ IRU XQGXH SUHMXGLFH ZKHUH \u00b3WKHUH KDV EHHQ DQ DFWXDO\n\nVHWWOHPHQW\u00b4 LQ HQIRUFHPHQW DFWLRQV EURXJKW E\\ WKH 6(& DQG 1<6( DQG \u00b3>W@KH UHTXHVWHG\n\nGLVFRYHU\\ LV HVVHQWLDO WR GHWHUPLQH >ZKHWKHU RU QRW WR VHHN DQ HDUO\\ VHWWOHPHQW@ DQG WR\n\nDVVLVW LQ IRUPXODWLQJ DQ DSSURSULDWH VHWWOHPHQW GHPDQG\u00b4 \u0011 3ODLQWL\u0d75V\u00b6 UHOLDQFH RQ In re\n\n'HO\u00bf\u000f D FDVH RULJLQDWLQJ RXW RI WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ\u000f LV VLPLODUO\\ PLVSODFHG\u0011\n\n,Q UH 'HO\u00bf &RUS\u0011, No. 05-PG-1725, 2007 WL 518626, at *7 (E.D. Mich. Feb. 15, 2007)\n\nOLIWLQJ WKH 36/5$ GLVFRYHU\\ VWD\\ IRU XQGXH SUHMXGLFH ZKHUH VHYHUDO GHIHQGDQWV had\n\n\n                                            17\n\f   Case 1:23-cv-10982-ER           Document 85        Filed 02/26/26       Page 18 of 22\n\n\n\n\n\u201cDOUHDG\\ FRQVHQWHG WR VXEVWDQWLDO MXGJHPHQWV LQ WKH 6(& FDVH\u00b4 DQG ZKHUH VHWWOHPHQW\n\nQHJRWLDWLRQV UHPDLQHG \u201cRQJRLQJ\u00b4 LQ WKH EDQNUXSWF\\ DFWLRQ \u0011\n\n       3ODLQWL\u0d75V DOVR FRQWHQG WKDW PDLQWDLQLQJ WKH GLVFRYHU\\ VWD\\ LQ WKLV VHFXULWLHV DFWLRQ\n\nZKLOH GLVFRYHU\\ SURFHHGV LQ WKH &D\\PDQ 3URFHHGLQJ ZRXOG GHSULYH WKHP RI WKH DELOLW\\ WR\n\nPDNH \u00b3LQIRUPHG OLWLJDWLRQ GHFLVLRQV\u000f\u00b4 SDUWLFXODUO\\ ZLWK UHVSHFW WR \u00b3OLWLJDWLRQ DQG\n\nVHWWOHPHQW VWUDWHJLHV\u00b4 LQ ZKDW WKH\\ GHVFULEH DV D \u00b3UDSLGO\\ VKLIWLQJ ODQGVFDSH\u0011\u00b4 Doc. 60 at\n\n16\u201317 TXRWLQJ ,Q UH :RUOG&RP\u000f ,QF\u0011 6HFXULWLHV /LWLJDWLRQ\u000f \u0015\u0016\u0017 )\u0011 6XSS\u0011 \u0015G 301, 305\n\n(S.D.N.Y. 2002)). +RZHYHU\u000f 3ODLQWL\u0d75V QHYHU LGHQWLI\\ ZKDW VSHFL\u00bfF GHFLVLRQV WKH\\ DUH\n\nDOOHJHGO\\ XQDEOH WR PDNH\u000f QRU GR WKH\\ H[SODLQ KRZ WKH OLWLJDWLRQ ODQGVFDSH LV VXSSRVHGO\\\n\nVKLIWLQJ \u00b3UDSLGO\\\u0011\u00b4 0RUHRYHU\u000f &RXUWV LQ WKLV 'LVWULFW KDYH FRQVLVWHQWO\\ KHOG WKDW DQ\n\nLQDELOLW\\ WR JDWKHU HYLGHQFH IRU VHWWOHPHQW QHJRWLDWLRQV RU WR SODQ D OLWLJDWLRQ VWUDWHJ\\\u000f\n\nZLWKRXW PRUH\u000f GRHV QRW FRQVWLWXWH XQGXH SUHMXGLFH\u0011 See In re Smith Barne\\, 2006 WL\n\n1738078, at *2 KROGLQJ WKDW XQGXH SUHMXGLFH \u00b3GRHV QRW DULVH IURP D GHOD\\ LQ WKH\n\nJDWKHULQJ RI HYLGHQFH RU WKH GHYHORSPHQW RI VHWWOHPHQW RU OLWLJDWLRQ SRVWXUHV\u00b4 \u001e In re\n\n5HIFR, 2006 WL 2337212, at *2 (KROGLQJ WKDW \u00b3>S@ODLQWL\u0d75V\u00b6 LQDELOLW\\ WR JDWKHU HYLGHQFH IRU\n\nVHWWOHPHQW QHJRWLDWLRQV RU WR SODQ D OLWLJDWLRQ VWUDWHJ\\ LV QRW HYLGHQFH RI XQGXH\n\nSUHMXGLFH\u00b4 \u0011 ,QGHHG\u000f \u00b3GHOD\\ LV DQ LQKHUHQW SDUW RI HYHU\\ VWD\\ RI GLVFRYHU\\ UHTXLUHG E\\ WKH\n\n36/5$\u0011\u00b4 ,Q UH ,QLWLDO 3XEOLF 2\u09fcHULQJ 6HFXULWLHV /LWLJDWLRQ, 236 F. 6XSS\u0011 2d 286, 287\n\n(S.D.N.Y. 2002).\n\n       1RU GRHV WKLV FDVH UHVHPEOH a \u00b3UDSLGO\\ VKLIWLQJ ODQGVFDSH\u00b4 DV LQ In re :RUOG&RP.\n\nSee In UH :RUOGFRP\u000f \u0015\u0016\u0017 )\u0011 6XSS\u0011 \u0015G DW \u0016\u0013\u0018\u201306. \u0e60HUH, tKH FRXUW KDG RUGHUHG WKH 36/5$\n\nSODLQWL\u0d75V WR SDUWLFLSDWH LQ FRRUGLQDWHG VHWWOHPHQW QHJRWLDWLRQV ZLWK DQ LQVROYHQW GHIHQGDQW\n\nDORQJVLGH SODLQWL\u0d75V LQ D UHODWHG (5,6$ OLWLJDWLRQ ZKR ZHUH QRW VXEMHFW WR WKH GLVFRYHU\\\n\nVWD\\ DQG ZHUH DFWLYHO\\ REWDLQLQJ GLVFRYHU\\\u0011 Id. \u0e60H FRXUW FRQFOXGHG WKDW GHQ\\LQJ WKH\n\n36/5$ SODLQWL\u0d75V DFFHVV WR GLVFRYHU\\ ZRXOG SODFH WKHP DW D GLVDGYDQWDJH LQ FRPSHWLQJ\n\nZLWK WKH (5,6$ SODLQWL\u0d75V IRU WKH OLPLWHG DVVHWV RI WKH EDQNUXSW GHIHQGDQW\u000f FUHDWLQJ D\n\n\u00b3YHU\\ UHDO ULVN\u00b4 WKDW PDLQWDLQLQJ WKH GLVFRYHU\\ VWD\\ ZRXOG OHDYH WKH 36/5$ SODLQWL\u0d75V\n\n\n                                              18\n\f   Case 1:23-cv-10982-ER            Document 85         Filed 02/26/26          Page 19 of 22\n\n\n\n\nSXUVXLQJ FODiPV DJDLQVW GHIHQGDQWV ZKR ORQJHU KDG \u00b3DQ\\WKLQJ RU DW OHDVW DV PXFK WR\n\nR\u0d75HU\u0011\u00b4 Id. at 306. 1R VXFK FLUFXPVWDQFH LV SUHVHQW KHUH\u0011\n\n        3ODLQWL\u0d75V IXUWKHU DUJXH WKDW WKH\\ KDYH DOUHDG\\ IDOOHQ EHKLQG\u000f DQG ZLOO FRQWLQXH WR\n\nIDOO IXUWKHU EHKLQG\u000f WKH &D\\PDQ 3URFHHGLQJ\u0011 Doc. 72 at 6. ,Q VXSSRUW RI WKHLU DUJXPHQW,\n\n3ODLQWL\u0d75V FLWH WR ,Q UH 'HO\u00bf\u000f ZKLFK WKH &RXUW KDV DOUHDG\\ H[SODLQHG LV SODLQO\\\n\nGLVWLQJXLVKDEOH\u0011 ,Q UH 'HO\u00bf &RUS\u0011, 2007 WL 518626. 3ODLQWL\u0d75V DOVR cite to ,Q UH %DQN RI\n\n$PHULFD\u000f ZKHUH WKH FRXUW IRXQG WKDW WKH SODLQWL\u0d75 ZRXOG EH \u00b3XQGXO\\ SUHMXGLFHG LI WKH\n\nGLVFRYHU\\ VWD\\ LV QRW OLIWHG\u00b4 EHFDXVH \u00b3>G@LVFRYHU\\ LV PRYLQJ DSDFH LQ D SDUDOOHO OLWLJDWLRQ\u0011\u00b4\n\n,Q UH %DQN RI $PHULFD\u000f \u0015\u0013\u0013\u001c :/ \u0017\u001a\u001c\u0019\u0014\u0019\u001c\u000f DW \u0016\u0011 \u0e60LV FDVH\u000f KRZHYHU\u000f LV UHDGLO\\\n\nGLVWLQJXLVKDEOH\u0011 +HUH\u000f XQOLNH LQ In re BDQN RI $PHULFD\u000f WKH UHFRUG GRHV QRW GHPRQVWUDWH\n\nWKDW 3ODLQWL\u0d75V IDFH DQ\\ UHDO ULVN RI IDOOLQJ EHKLQG LQ a SDUDOOHO OLWLJDWLRQ\u0011\n\n        ,Q IDFW\u000f FRXQVHO IRU WKH -2/V UHSUHVHQWHG WR WKLV &RXUW LQ $SULO \u0015\u0013\u0015\u0018 that the\n\n&D\\PDQ 3URFHHGLQJV DUH DW DQ \u00b3HDUO\\ VWDJH LQ WKH LQYHVWLJDWLRQ\u000f\u00b4 WKDW QR FODLPV KDYH EHHQ\n\n\u00bfOHG DJDLQVW \u00b36XUSLTXH RU DQ\\RQH HOVH\u000f\u00b4 DQG WKDW \u00b3LQ VRPH UHVSHFWV >WKH\\\u00b6UH@ EHKLQG WKH\n\nFODVV DFWLRQ SODLQWL\u0d75V\u0011\u00b4 'RF\u0011 \u0019\u0017 DW \u0018\u0011 :KLOH 3ODLQWL\u0d75V DOOHJH WKDW 6XUSLTXH KDV DOUHDG\\\n\nWXUQHG RYHU \u0014\u0019\u000f\u0013\u0013\u0013 GRFXPHQWV WR WKH -2/V\u000f Doc. 60 at 11, WKH -2/V UHSUHVHQWHG WKDW\u000f DV RI\n\n$SULO \u0015\u0013\u0015\u0018\u000f 6XUSLTXH had SURGXFHG \u00b3only 200\u00b4 GRFXPHQWV, 'RF\u0011 \u0019\u0017 DW \u0017\u20135\u000f DQG 6XUSLTXH\n\nKDV UHSUHVHQWHG WKDW\u000f DV RI 0D\\ \u0015\u0015\u000f \u0015\u0013\u0015\u0018\u000f WKH\\ KDYH \u00b3SURGXFHG D WRWDO RI \u0015\u0019\u001c GRFXPHQWV\u00b4\n\nWR WKH -2/V\u0011 'RF\u0011 \u0019\u001c \u0088 \u0016\u000f *UHHQEODWW 'HFO. \u0e60LV LV QRPLQDO UHODWLYH WR WKH DSSUR[LPDWHO\\\n\n\u0014\u0013\u0013\u000f\u0013\u0013\u0013 GRFXPHQWV 3ODLQWL\u0d75V DFNQRZOHGJH WR FRPSULVH WKH FXUUHQW XQLYHUVH RI SRWHQWLDOO\\\n\nUHVSRQVLYH PDWHULDOV\u0011 'RF\u0011 \u001a\u0015 DW \u0017\u0011 3ODLQWL\u0d75V QHYHUWKHOHVV VSHFXODWH WKDW E\\ WKH WLPH WKH\n\nGLVFRYHU\\ VWD\\ LV OLIWHG \u00b3WKH &D\\PDQ 3URFHHGLQJ ZLOO EH VLJQL\u00bfFDQWO\\ DGYDQFHG DQG PD\\\n\nHYHQ EH UHVROYHG\u000f SRWHQWLDOO\\ OHDYLQJ D &ODVV LQ WKLV VHFXULWLHV FODVV DFWLRQ ZLWKRXW\n\nPRQHWDU\\ UHFRXUVH\u0011\u00b4 Doc. 60 at 18. \u0e60DW DVVHUWLRQ LV XQGHUFXW E\\ 3ODLQWL\u0d75V\u00b6 RZQ EULH\u00bfQJ\u0011\n\n,Q WKHLU UHSO\\\u000f 3ODLQWL\u0d75V FRQWHQGHG WKDW \u00b3>W]KH EDQNUXSWF\\ \u00bfOLQJV PDNH FOHDU WKDW\n\n'HIHQGDQWV DQG 6XUSLTXH KDYH XQLIRUPO\\ VWRQHZDOOHG WKH -2/V\u0011\u00b4 Doc. 72 at 5. By\n\nPODLQWL\u0d75V\u00b6 RZQ DFFRXQW\u000f WKHUHIRUH\u000f WKH -2/V\u00b6 SURFHHGLQJ LV QRW DGYDQFLQJ UDSLGO\\\u000f DQG DQ\\\n\n\n                                               19\n\f   Case 1:23-cv-10982-ER           Document 85        Filed 02/26/26       Page 20 of 22\n\n\n\n\nVXJJHVWLRQ WKDW 3ODLQWL\u0d75V ZLOO ORVH D UDFH WR WKH \u00bfQLVK OLQH LV IDU WRR VSHFXODWLYH WR\n\nFRQVWLWXWH XQGXH SUHMXGLFH\u0011\n\n       %XW WKH DEVHQFH RI XQGXH SUHMXGLFH RQ WKHVH IDFWV GRHV QRW PHDQ WKDW D SDUDOOHO\n\nSURFHHGLQJ FDQ QHYHU DPRXQW WR XQGXH SUHMXGLFH\u000f DV 6XUSLTXH DQG WKH Individual\n\n'HIHQGDQWV VXJJHVW\u0011 6XUSLTXH DQG WKH ,QGLYLGXDO 'HIHQGDQWV UHDG WRR PXFK LQto In re\n\n5HIFR DQG H[WHQG LW IDU EH\\RQG LWV KROGLQJ\u0011 See Doc. 67 at 10; Doc. 68 at 13. In In re\n\n5HIFR\u000f WKH FRXUW UHFRJQL]HG WKDW \u201c[t]KH GLVFUHSDQF\\ EHWZHHQ 36/5$ DFWLRQV DQG RWKHU\n\nactionV\u00b4 QRW VXEMHFW WR WKH VWD\\ \u00b3LV QRW HYLGHQFH RI XQGXH SUHMXGLFH\u000f EXW UDWKHU LV evidence\n\nRI &RQJUHVV\u00b6V MXGJHPHQW WKDW 36/5$ DFWLRQV VKRXOG EH WUHDWHG GL\u0d75HUHQWO\\ WKDQ RWKHU\n\nactionV\u0011\u00b4 ,Q UH 5HIFR\u000f \u0015\u0013\u0013\u0019 :/ \u0015\u0016\u0016\u001a\u0015\u0014\u0015\u000f DW \u0015\u0011 \u0e60H FRXUW IXUWKHU HPSKDVL]HG WKDW LI WKH\n\n36/5$ GLVFRYHU\\ VWD\\ FRXOG EH OLIWHG PHUHO\\ EHFDXVH D WKLUG SDUW\\ ZDV HQJDJHG LQ\n\nVHWWOHPHQW GLVFXVVLRQV\u000f WKH \u00b3\u00b6XQGXH SUHMXGLFH\u00b6 UHTXLUHPHQW ZRXOG HVVHQWLDOO\\ HYLVFHUDWH\n\nWKH VWD\\ UHTXLUHPHQW\u0011 \u0e60LV LV QRW ZKDW &RQJUHVV LQWHQGHG\u0011\u00b4 Id. at *3.\n\n       \u0e60H IDFW WKDW D SDUDOOHO SURFHHGLQJ H[LVWV\u000f VWDQGLQJ DORQH\u000f GRHV QRW FRQVWLWXWH\n\nundue SUHMXGLFH\u0011 +RZHYHU\u000f In re 5HIFR GRHV QRW KROG\u000f QRU VXJJHVW\u000f WKDW D PRYDQW PXVW\n\nVKRZ DQ\\WKLQJ PRUH WKDQ XQGXH SUHMXGLFH WR REWDLQ UHOLHI IURP WKH VWD\\\u0011 When D SDUDOOHO\n\nSURFHHGLQJ GRHV LQ IDFW JLYH ULVH WR XQGXH SUHMXGLFH\u000f &RQJUHVV VXUHO\\ GLG QRW LQWHQG IRU\n\nWKH 36/5$ GLVFRYHU\\ VWD\\ WR UHPDLQ LQ SODFH\u0011\n       E. Undue Burden\n       ,W LV FXVWRPDU\\ IRU D FRXUW WR FRQVLGHU ZKHWKHU D UHTXHVW WR OLIW WKH 36/5$\n\nGLVFRYHU\\ VWD\\ ZRXOG \u00b3SODFH>@ DQ XQGXH EXUGHQ RQ WKH SDUW\\ IURP ZKLFK LW LV UHTXHVWHG\u0011\u00b4\n\nIn re :RUOG&RP\u000f \u0015\u0016\u0017 )\u0011 6XSS\u0011 \u0015G DW \u0016\u0013\u0019. +RZHYHU\u000f \u00b3>W@KHUH LV QR H[FHSWLRQ WR WKH\n\nGLVFRYHU\\ VWD\\ IRU FDVHV LQ ZKLFK GLVFRYHU\\ ZRXOG QRW EXUGHQ WKH GHIHQGDQW\u0011\u00b4 In re Smith\n\n%DUQH\\, 2006 WL 1738078, at *3. ,QGHHG\u000f \u00b3>W@KH SURSHU LQTXLU\\ XQGHU WKH 36/5$ LV\n\nZKHWKHU WKH SODLQWL\u0d75 ZRXOG EH XQGXO\\ SUHMXGLFHG E\\ WKH VWD\\\u000f QRW ZKHWKHU WKH GHIHQGDQW\n\nZRXOG EH EXUGHQHG E\\ OLIWLQJ WKH VWD\\\u0011\u00b4 Id.\n\n\n\n\n                                              20\n\f   Case 1:23-cv-10982-ER           Document 85         Filed 02/26/26      Page 21 of 22\n\n\n\n\n       +HUH\u000f WKH LQTXLU\\ QHHG QRW EH UHDFKHG\u0011 3ODLQWL\u0d75V have IDLOHG WR VDWLVI\\ WKH\n\nSDUWLFXODUL]DWLRQ UHTXLUHPHQW DQG KDYH QRW GHPRQVWUDWHG WKDW WKH GLVFRYHU\\ VRXJKW LV\n\n\u00b3QHFHVVDU\\ WR SUHVHUYH HYLGHQFH RU WR SUHYHQW XQGXH SUHMXGLFH\u0011\u00b4 15 U.S.C. \u00a7 78u\u2013\n\n\u0017E \u0016 %.\n\n       3ODLQWL\u0d75V QRQHWKHOHVV FRQWHQG WKDW WKHLU SURSRVHG VXESRHQD ZRXOG LPSRVH OLWWOH RU\n\nQR EXUGHQ RQ 6XUSLTXH EHFDXVH LW LV OLPLWHG RQO\\ WR WKRVH QRQ-SULYLOHJHG GRFXPHQWV WKDW\n\n6XUSLTXH KDV DOUHDG\\ SURGXFH\u000f RU ZLOO SURGXFH\u000f WR WKH -2/V LQ UHVSRQVH WR WKH VXESRHQD.\n\nDoc. 60 at 6\u20137, 15\u201316. $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f 6XUSLTXH LV DOUHDG\\ FRQGXFWLQJ D\n\nSULYLOHJH UHYLHZ DQG SUHSDULQJ D SULYLOHJH ORJ IRU WKDW SURGXFWLRQ\u000f DQG WR WKH H[WHQW WKDW\n\n6XUSLTXH FODLPV WKH QHHG WR FRQGXFW D VHSDUDWH SULYLOHJH UHYLHZ\u000f DQ\\ DGGLWLRQDO EXUGHQ\n\nDVVRFLDWHG ZLWK D VHSDUDWH UHYLHZ ZRXOG EH VOLJKW\u0011 Id.\n\n       ,Q UHVSRQVH\u000f 6XUSLTXH DVVHUWV WKDW 3ODLQWL\u0d75V\u00b6 SURSRVHG VXESRHQD ZRXOG LPSRVH\n\nXSRQ WKHP D \u00b3WUHPHQGRXV EXUGHQ\u0011\u00b4 Doc. 67 at 5\u20136, 21\u201325. 6SHFL\u00bfFDOO\\\u000f 6XUSLTXH DVVHUWV\n\nWKDW LW ZRXOG EH UHTXLUHG WR H[SHQG VLJQL\u00bfFDQW UHVRXUFHV SUHSDULQJ D PRWLRQ WR TXDVK, and\n\nthat HYHQ LI WKH GLVFRYHU\\ VWD\\ ZHUH SDUWLDOO\\ OLIWHG\u000f it ZRXOG VWLOO EH IRUFHG WR QHJRWLDWH D\n\nVXSSOHPHQWDO VHDUFK DQG UHYLHZ SURWRFRO ZLWK 3ODLQWL\u0d75V WR LVRODWH WKRVH GRFXPHQWV IURP\n\nWKH IDU EURDGHU 5XOH \u0015\u0013\u0013\u0017 SURGXFWLRQ PDGH WR WKH -2/V\u0011 Id. at 22\u201323. )XUWKHU\u000f 6XUSLTXH\n\nDOOHJHV WKDW HYHQ LI WKH\\ DWWHPSWHG WR DYRLG WKHVH FRVWV E\\ VLPSO\\ UHSURGXFLQJ DQ\\\n\nSURGXFWLRQV WR WKH -2/V\u000f WKH\\ ZRXOG VWLOO LQFXU VXEVWDQWLDO H[SHQVH\u0011 Id. at 23.\n\n6SHFL\u00bfFDOO\\\u000f WKH\\ DOOHJH WKDW they ZRXOG EH UHTXLUHG WR FRQGXFW D VHSDUDWH SULYLOHJH\n\nUHYLHZ WDLORUHG WR 3ODLQWL\u0d75V\u000f ZKR DUH QRW VLPLODUO\\ VLWXDWHG WR WKH -2/V IRU SXUSRVHV RI\n\nDWWRUQH\\-FOLHQW SULYLOHJH\u0011 Id. 6XUSLTXH DVVHUWV WKDW D \u00b3VL]DEOH\u00b4 QXPEHU RI GRFXPHQWV that\n\nZLOO EH SURGXFHG WR WKH -2/V DUH SURWHFWHG E\\ DWWRUQH\\-client SULYLOHJH KHOG H[FOXVLYHO\\\n\nE\\ WKH -2/V DFWLQJ RQ EHKDOI RI )DUIHWFK /LPLWHG\u000f RU MRLQWO\\ ZLWK LWV IRUPHU )DUIHWFK\n\nVXEVLGLDULHV QRZ RZQHG E\\ 6XUSLTXH\u0011 Id. $V D UHVXOW\u000f 6XUSLTXH DVVHUWV that it ZRXOG EH\n\nUHTXLUHG WR FRQGXFW D VHSDUDWH SULYLOHJH UHYLHZ LQ RUGHU WR LGHQWLI\\ DQG ZLWKKROG WKRVH\n\nSULYLOHJHG PDWHULDOV IURP DQ\\ UHSURGXFWLRQ WR 3ODLQWL\u0d75V\u0011 Id. DW \u0015\u0017\u0011\n\n\n                                              21\n\f   Case 1:23-cv-10982-ER          Document 85      Filed 02/26/26      Page 22 of 22\n\n\n\n\n         8OWLPDWHO\\\u000f WKH &RXUW QHHG QRW UHVROYH WKHVH FRPSHWLQJ DUJXPHQWV\u0011 %HFDXVH\n\n3ODLQWL\u0d75V KDYH IDLOHG WR VDWLVI\\ WKH 36/5$\u00b6V SDUWLFXODUL]DWLRQ UHTXLUHPHQW DQG KDYH QRW\n\nVKRZQ WKDW WKH UHTXHVWHG GLVFRYHU LV \u00b3QHFHVVDU\\ WR SUHVHUYH HYLGHQFH RU WR SUHYHQW XQGXH\n\nSUHMXGLFH\u0011\u00b4 15 U.S.C. \u00a7 78u\u2013\u0017 E \u0016 % .\nIV.      CONCLUSION\n         )RU WKH IRUJRLQJ UHDVRQV\u000f WKH 3ODLQWL\u0d75V PRWLRQ WR PRGLI\\ WKH 36/5$ DXWRPDWLF\n\nGLVFRYHU\\ VWD\\ LV DENIED. \u0e60H &OHUN RI WKH &RXUW LV UHVSHFWIXOO\\ GLUHFWHG WR WHUPLQDWH\n\nWKH PRWLRQV\u000f 'RFV\u0011 \u0018\u001c DQG \u0019\u0016\u0011\n\n\n,W LV SO ORDERED.\n\n\nDated:    )HEUXDU\\ \u0015\u0019\u000f \u0015\u0013\u0015\u0019\n          1HZ <RUN\u000f 1HZ <RUN\n\n                                                        EDGARDO RAMOS, U.S.D.J.\n\n\n\n\n                                           22\n\f","ocr_status":2,"date_upload":"2026-06-22T23:27:09.124908-07:00","document_number":"85","attachment_number":null,"pacer_doc_id":"127039137731","is_available":true,"is_free_on_pacer":true,"is_sealed":null,"document_type":1,"description":"Memorandum & Opinion","acms_document_guid":""}],"date_created":"2026-02-26T11:11:34.218584-08:00","date_modified":"2026-10-20T06:53:42.214634-07:00","date_filed":"2026-02-26","time_filed":"13:35:28","entry_number":85,"recap_sequence_number":"2026-02-26.001","pacer_sequence_number":293,"description":"OPINION & ORDER re: 59 MOTION for Discovery . filed by Fernando Sulichin, Yuanzhe Fu, 63 LETTER MOTION for Oral Argument addressed to Judge Edgardo Ramos from Adam M. Apton dated May 1, 2025. filed by Fernando Sulichin, Yuanzhe Fu. For the forgoing reasons, the Plaintiffs motion to modify the PSLRA automatic discovery stay is DENIED. The Clerk of the Court is respectfully directed to terminate the motions, Docs. 59 and 63. It is SO ORDERED. (Signed by Judge Edgardo Ramos on 2/26/2026) (jca) (Entered: 02/26/2026)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/454806333/","id":454806333,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/469733014/","id":469733014,"tags":[],"absolute_url":"/docket/68102459/84/in-re-farfetch-limited-securities-litigation/","date_created":"2026-02-23T17:07:08.790852-08:00","date_modified":"2026-06-01T03:13:36.321076-07:00","sha1":"cd86369590dee484a64530e7e0929a1b800f574a","page_count":17,"file_size":263148,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.84.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.84.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"    Case 1:23-cv-10982-ER   Document 84   Filed 02/23/26    Page 1 of 17\n\n\n\n\n                   UNITED STATES DISTRICT COURT\n                  SOUTHERN DISTRICT OF NEW YORK\n\n\nIN RE FARFETCH LIMITED SECURITIES    Case No.: 1:23-cv-10982-ER-KHP\nLITIGATION                           [rel. 1:24-cv-00532-ER]\n\n\nTHIS DOCUMENT RELATES TO:            ORAL ARGUMENT REQUESTED\nALL ACTIONS\n\n\n\n\n          REPLY MEMORANDUM OF LAW IN FURTHER SUPPORT\n         OF THE INDIVIDUAL DEFENDANTS\u2019 MOTION TO DISMISS\n           THE SECOND AMENDED CLASS ACTION COMPLAINT\n\n\n\n\n                                      LATHAM & WATKINS LLP\n\n                                      Jeff G. Hammel\n                                      Jason C. Hegt\n                                      Jooyoung Yeu\n                                      1271 Avenue of the Americas\n                                      New York, New York 10020\n                                      (212) 906-1200\n\n                                      Attorneys for Individual Defendants\n                                      Jos\u00e9 Neves, Elliot Jordan, and Stephanie\n                                      Phair\n\f           Case 1:23-cv-10982-ER                      Document 84                Filed 02/23/26              Page 2 of 17\n\n\n\n\n                                                   TABLE OF CONTENTS\n\n\n\nPRELIMINARY STATEMENT .....................................................................................................1\n\nARGUMENT ...................................................................................................................................2\n\nI.        PLAINTIFFS FAIL TO PLEAD ANY ACTIONABLE MISSTATEMENT .....................2\n\nII.       PLAINTIFFS DO NOT PLEAD A STRONG INFERENCE OF SCIENTER ...................6\n\nIII.      THE SAC FAILS TO PLEAD SCHEME LIABILITY.....................................................10\n\nIV.       PLAINTIFFS\u2019 REQUEST FOR LEAVE TO AMEND SHOULD BE DENIED .............10\n\nCONCLUSION ..............................................................................................................................11\n\n\n\n\n                                                                     i\n\f           Case 1:23-cv-10982-ER                      Document 84               Filed 02/23/26             Page 3 of 17\n\n\n\n\n                                               TABLE OF AUTHORITIES\n\n                                                                                                                               Page(s)\n\n                                                               CASES\n\nAvon Pension Fund v. GlaxoSmithKline PLC,\n   343 F. App\u2019x 671 (2d Cir. 2009) ...........................................................................................1, 6\n\nBasic Inc. v. Levinson,\n   485 U.S. 224 (1988) ...................................................................................................................5\n\nBay Harbour Mgmt. LLC v. Carothers,\n   282 F. App\u2019x 71 (2d Cir. 2008) .................................................................................................1\n\nBuhrke Fam. Revocable Trust v. U.S. Bancorp,\n   726 F. Supp. 3d 315 (S.D.N.Y. 2024)......................................................................................10\n\nDamri v. LivePerson, Inc.,\n  772 F. Supp. 3d 430 (S.D.N.Y. 2025)........................................................................................6\n\nGlaser v. The9, Ltd.,\n   772 F. Supp. 2d 573 (S.D.N.Y. 2011)........................................................................................7\n\nHo v. Duoyuan Glob. Water, Inc.,\n   887 F. Supp. 2d 547 (S.D.N.Y. 2012)........................................................................................8\n\nHolbrook v. Trivago N.V.,\n   2019 WL 948809 (S.D.N.Y. Feb. 26, 2019), aff\u2019d sub nom.\n   Shetty v. Trivago N.V., 796 F. App\u2019x 31 (2d Cir. 2019) ............................................................8\n\nHoward v. Everex Sys.,\n  228 F.3d 1057 (9th Cir. 2000) ...................................................................................................7\n\nIn re Adient plc Sec. Litig.,\n    2020 WL 1644018 (S.D.N.Y. Apr. 2, 2020)..............................................................................3\n\nIn re AT&T/DirecTV Now Sec. Litig.,\n    480 F. Supp. 3d 507 (S.D.N.Y. 2020), aff\u2019d sub nom.\n    Steamfitters Loc. 449 Pension Plan v. AT&T Inc.,\n    2022 WL 17587853 (2d Cir. Dec. 13, 2022) ...........................................................................10\n\nIn re Elan Corp. Sec. Litig.,\n    543 F. Supp. 2d 187 (S.D.N.Y. 2008)........................................................................................7\n\n\n\n\n                                                                    ii\n\f          Case 1:23-cv-10982-ER                     Document 84               Filed 02/23/26             Page 4 of 17\n\n\n\n\nIn re Express Scripts Holding Co. Sec. Litig.,\n    2018 WL 2324065 (S.D.N.Y. May 22, 2018), aff\u2019d sub nom.\n    In re Express Scripts Holding Co. Sec. Litig., 773 F. App\u2019x 9 (2d Cir. 2019) ..........................5\n\nIn re Ferroglobe PLC Sec. Litig.,\n    2020 WL 6585715 (S.D.N.Y. Nov. 10, 2020) ...........................................................................9\n\nIn re GeoPharma, Inc. Sec. Litig.,\n    411 F. Supp. 2d 434 (S.D.N.Y. 2006)........................................................................................2\n\nIn re Hut 8 Corp. Sec. Litig.,\n    2025 WL 2636150 (S.D.N.Y. Sept. 12, 2025)...........................................................................3\n\nIn re Kandi Techs. Grp., Inc. Sec. Litig.,\n    2019 WL 4918649 (S.D.N.Y. Oct. 4, 2019) ..............................................................................9\n\nIn re SuperCom Inc. Sec. Litig.,\n    2018 WL 4926442 (S.D.N.Y. Oct. 10, 2018) ............................................................................9\n\nIn re Vivendi, S.A. Sec. Litig.,\n    838 F.3d 223 (2d Cir. 2016)...................................................................................................3, 5\n\nJanbay v. Canadian Solar, Inc.,\n   2013 WL 1287326 (S.D.N.Y. Mar. 28, 2013),\n   aff\u2019d (2d Cir. Dec. 20, 2013) ......................................................................................................8\n\nJohnson v. Sequans Communs. S.A.,\n   2013 WL 214297 (S.D.N.Y. Jan. 17, 2013) ..............................................................................2\n\nJones v. Perez,\n   550 F. App\u2019x 24 (2d Cir. 2013) .................................................................................................3\n\nKalnit v. Eichler,\n   264 F.3d 131 (2d Cir. 2001).......................................................................................................7\n\nKravitz v. Tavlarios,\n   2020 WL 3871340 (S.D.N.Y. July 8, 2020), aff\u2019d,\n   2021 WL 5365582 (2d Cir. Nov. 18, 2021).............................................................................10\n\nLeone v. ASP Isotopes Inc.,\n   2025 WL 3484821 (S.D.N.Y. Dec. 4, 2025) .............................................................................8\n\nLipow v. Net1 UEPS Techs., Inc.,\n   131 F. Supp. 3d 144 (S.D.N.Y. 2015)........................................................................................9\n\nMeyer v. Jinkosolar Holdings Co.,\n   761 F.3d 245 (2d Cir. 2014).......................................................................................................4\n\n\n\n\n                                                                  iii\n\f           Case 1:23-cv-10982-ER                       Document 84                Filed 02/23/26              Page 5 of 17\n\n\n\n\nNew Orleans Emp. Ret. Sys. v. Celestica, Inc.,\n   455 F. App\u2019x 10 (2d Cir. 2011) .................................................................................................9\n\nNovak v. Kasaks,\n   216 F.3d 300 (2d Cir. 2000).......................................................................................................5\n\nOkla. Firefighters Pension & Ret. Sys. v. Lexmark Int\u2019l, Inc.,\n   367 F. Supp. 3d 16 (S.D.N.Y. 2019)..........................................................................................9\n\nP. Stolz Fam. P\u2019ship L.P. v. Daum,\n    355 F.3d 92 (2d Cir. 2004).........................................................................................................3\n\nSachsenberg v. IRSA Inversiones Y Representaciones Sociedad Anonima,\n   339 F. Supp. 3d 169 (S.D.N.Y. 2018)........................................................................................6\n\nSaraf v. Ebix, Inc.,\n   2024 WL 1298246 (2d Cir. Mar. 27, 2024) ...............................................................................7\n\nSlayton v. Am. Exp. Co.,\n    604 F.3d 758 (2d Cir. 2010).......................................................................................................3\n\nSolow v. Citigroup, Inc.,\n   827 F. Supp. 2d 280 (S.D.N.Y. 2011)........................................................................................4\n\nSteamfitters Local 449 Plan v. Skechers U.S.A., Inc.,\n    412 F. Supp. 3d 353 (S.D.N.Y. 2019), aff\u2019d sub nom.\n    Cavalier Fundamental Growth Fund v. Skechers U.S.A., Inc.,\n    826 F. App\u2019x 111 (2d Cir. 2020) ...............................................................................................6\n\nThesling v. Bioenvision,\n   374 F. App\u2019x 141 (2d Cir. 2010) ...............................................................................................5\n\nTung v. Bristol-Myers Squibb Co.,\n   412 F. Supp. 3d 453 (S.D.N.Y. 2019)........................................................................................6\n\nVenkataraman v. Kandi Techs. Grp., Inc.,\n   2021 WL 4952260 (S.D.N.Y. Oct. 25, 2021) ............................................................................4\n\nWoodward v. Raymond James Fin., Inc.,\n  732 F. Supp. 2d 425 (S.D.N.Y. 2010)........................................................................................7\n\nzCap Equity Fund LLC v. LuxUrban Hotels Inc.,\n   792 F. Supp. 3d 407 (S.D.N.Y. 2025)........................................................................................8\n\n                                                             STATUTES\n\n15 U.S.C. \u00a7 78u-5(c) ........................................................................................................................2\n\n\n\n\n                                                                     iv\n\f        Case 1:23-cv-10982-ER           Document 84        Filed 02/23/26      Page 6 of 17\n\n\n\n\n                                PRELIMINARY STATEMENT 1\n\n       Plaintiffs\u2019 Opposition confirms why the SAC should be dismissed with prejudice. Rather\n\nthan supplement the claims the Court previously found deficient, Plaintiffs have narrowed their\n\ncase to the single theory that Defendants publicly assured investors that Farfetch was \u201cself-funding\n\nand did not need external capital\u201d while secretly pursuing a strategic process to raise capital or sell\n\nthe Company. The central problem with this theory is that Defendants never made any such\n\nstatement. To the contrary, Farfetch\u2019s SEC filings expressly disclosed that the Company had a\n\nhistory of operating losses and substantial debt obligations, and might need to obtain additional\n\nfinancing. Plaintiffs offer no contemporaneous facts\u2014no internal reports, no contrary data, and\n\nno particularized witness allegations\u2014even suggesting that Defendants\u2019 statements about\n\nFarfetch\u2019s liquidity were false when made. At bottom, the SAC alleges that because Farfetch\n\nultimately was placed into liquidation in early 2024, Defendants must have known that their\n\nfinancial projections going back to December 2022 were false. This is precisely the type of \u201cfraud\n\nby hindsight\u201d pleading that the Second Circuit has repeatedly rejected. See Bay Harbour Mgmt.\n\nLLC v. Carothers, 282 F. App\u2019x 71, 75 (2d Cir. 2008). Moreover, Plaintiffs\u2019 theory\u2014that\n\nDefendants amassed significant amounts of Farfetch stock while simultaneously orchestrating a\n\nfraud that caused them substantial financial losses\u2014defies logic and binding precedent in this\n\nCircuit, which recognizes that such conduct is fundamentally inconsistent with fraudulent intent.\n\nAvon Pension Fund v. GlaxoSmithKline PLC, 343 F. App\u2019x 671, 673 (2d Cir. 2009).\n\n       After two rounds of amendments and detailed guidance from the Court, the SAC is weaker\n\nthan its predecessor. It should be dismissed with prejudice.\n\n\n\n1\n  All internal citations and quotation marks are omitted, capitalized terms have the same meaning\nas in the Individual Defendants\u2019 Motion to Dismiss (ECF No. 80) (cited as \u201cMot. _\u201d), and citations\nto \u201cEx. _\u201d refer to the Declaration of Jason C. Hegt (ECF No. 81).\n\n\n                                                  1\n\f        Case 1:23-cv-10982-ER          Document 84        Filed 02/23/26       Page 7 of 17\n\n\n\n\n                                           ARGUMENT\n\nI.     PLAINTIFFS FAIL TO PLEAD ANY ACTIONABLE MISSTATEMENT\n\n       Statements Defendants Never Made. The Opposition repeatedly claims that Defendants\n\nconveyed that \u201cFarfetch was self-funding and did not need external capital.\u201d Opp. 1. See, e.g., id.\n\nat 1-2, 4, 7, 8-9, 12-13, 15, 17. The core problem with this argument is that Defendants said no\n\nsuch thing. Despite repeating this claim throughout the Opposition, Plaintiffs never identify a\n\nsingle statement in which Defendants said what Plaintiffs attribute to them\u2014because there is none.\n\n       Instead, Plaintiffs offer their own subjective \u201cinterpretation\u201d of what the Company\u2019s\n\nprojections supposedly implied and then allege that to have been false, but Plaintiffs cannot plead\n\nsecurities fraud by reimagining Defendants\u2019 disclosures. Johnson v. Sequans Communs. S.A.,\n\n2013 WL 214297, at *16 (S.D.N.Y. Jan. 17, 2013). Farfetch had a long, publicly disclosed history\n\nof operating losses and financing its operations with debt both before and during the Class Period.\n\nSee \u00b6\u00b6 3, 44-50, 109; Mot. 4; Ex. 17 at 9. The Company expressly warned that it might not\n\n\u201cgenerate sufficient cash flow from operations\u201d and that management \u201ccontinually evaluated\n\nopportunities\u201d to \u201cobtain additional financing.\u201d Ex. 3 at 13-14, 57; Ex. 12 at 13-14, 65, 100; Ex.\n\n18 at 10. Those are not assurances of self-funding; they are explicit disclosures of potential capital\n\nneeds. See In re GeoPharma, Inc. Sec. Litig., 411 F. Supp. 2d 434, 449 (S.D.N.Y. 2006) (rejecting\n\n\u201cPlaintiffs\u2019 interpretation\u201d of disclosures as \u201cnot reasonable\u201d).\n\n       Protected Forward-Looking Statements. The PSLRA safe harbor protects forward-looking\n\nstatements identified as such and either accompanied by meaningful cautionary language or where\n\nplaintiff cannot show that the statements were made with \u201cactual knowledge\u201d that they were false.\n\n15 U.S.C. \u00a7 78u-5(c); Order at 28 n.24. Plaintiffs do not dispute this framework, see Opp. 9; Mot.\n\n9-12, and instead advance two arguments\u2014neither of which withstand scrutiny.\n\n       First, Plaintiffs contend that statements suggesting \u201csufficient liquidity\u201d are not forward-\n\n\n                                                  2\n\f        Case 1:23-cv-10982-ER           Document 84         Filed 02/23/26      Page 8 of 17\n\n\n\n\nlooking. Opp. 9-10. 2 The case law is to the contrary. The Company\u2019s statements that it \u201cbelieves\n\n[] our sources of liquidity and capital will be sufficient . . . for at least the next twelve months,\u201d \u00b6\n\n163, are forward-looking. See In re Hut 8 Corp. Sec. Litig., 2025 WL 2636150, at *3, 15 (S.D.N.Y.\n\nSept. 12, 2025). The same is true for \u201cexpectations\u201d about \u201cability to raise cash and maintain a\n\ncash balance,\u201d Jones v. Perez, 550 F. App\u2019x 24, 27 (2d Cir. 2013), and \u201cplan[s] to achieve [a]\n\ngoal,\u201d In re Adient plc Sec. Litig., 2020 WL 1644018, at *18-19 (S.D.N.Y. Apr. 2, 2020). Every\n\nchallenged statement falls into one of these categories. See App. A; Mot. 9-10. 3\n\n        Second, Plaintiffs argue that the cautionary language was not \u201cmeaningful\u201d because\n\nDefendants had \u201cknowledge\u201d of \u201ccapital-raising efforts.\u201d Opp. 9-10. Plaintiffs are, in essence,\n\narguing that the safe harbor does not apply because Defendants knew the statements were false.\n\nSuch an allegation is subject to the even more stringent requirement to show that Defendants had\n\n\u201cactual knowledge\u201d their statements were false. Slayton v. Am. Exp. Co., 604 F.3d 758, 773 (2d\n\nCir. 2010). The SAC comes nowhere close to meeting this standard. Plaintiffs argue that because\n\nthe Company was discussing potential capital raises as early as December 2022, it must have been\n\nfacing a liquidity crisis from that point forward. See Opp. 2, 9-10. But this theory ignores that\n\nFarfetch consistently operated at a loss and repeatedly disclosed that it financed its operations with\n\ndebt\u2014including an additional $200 million loan in August 2023. \u00b6\u00b6 3, 44-50, 109; Ex. 3 at 13-14,\n\n\n\n\n2\n Plaintiffs\u2019 authorities (Opp. 8-9) concern alleged misstatements of present or historical fact\u2014not\nforward-looking statements. E.g., In re Vivendi, S.A. Sec. Litig., 838 F.3d 223, 246-47 (2d Cir.\n2016) (statement concerned company\u2019s then-existing balance sheet, not forward-looking\nexpectations about the year ahead); P. Stolz Fam. P\u2019ship L.P. v. Daum, 355 F.3d 92, 97-98 (2d\nCir. 2004) (present tense statement that \u201cno initial public offering was being planned\u201d).\n3\n  Plaintiffs invoke \u201cseverability,\u201d Opp. 9, but never identify what is severable or how any\nsupposedly non-forward-looking component was actionable.\n\n\n                                                   3\n\f        Case 1:23-cv-10982-ER           Document 84        Filed 02/23/26      Page 9 of 17\n\n\n\n\n57; Ex. 12 at 13-14, 65, 100; Ex. 18 at 10. 4 Plaintiffs offer no basis to conflate the Company\u2019s\n\nroutine, well-disclosed capital raises with the liquidity crisis that later emerged. The letter written\n\nyears later by lawyers for the entity that purchased Farfetch\u2019s operating business (Opp. 7), does\n\nnot establish knowledge of a liquidity crisis in late 2022; it confirms the opposite. See Mot. 14-\n\n15. It states that Farfetch\u2019s financial condition did not begin deteriorating until \u201cthe second half\n\nof 2023,\u201d \u00b6 94; Ex. 25 at 2\u2014the very period when Defendants publicly disclosed taking on $200\n\nmillion in debt to fund operations, \u00b6 109. The letter further explains that it was not until \u201clate\n\n2023\u201d\u2014well after the last challenged statement\u2014that Farfetch\u2019s \u201cability to remain a going\n\nconcern\u201d was in doubt. Ex. 25 at 3. If Plaintiffs want to embrace this letter, the timeline it recites\n\nforecloses Plaintiffs\u2019 theory that a liquidity crisis first materialized months earlier.           See\n\nVenkataraman v. Kandi Techs. Grp., Inc., 2021 WL 4952260, at *4 (S.D.N.Y. Oct. 25, 2021). 5\n\n       Inactionable Opinions.      Plaintiffs do not meaningfully dispute that the challenged\n\nstatements are opinions. Opp. 11-12; Mot. 16-18. Instead, they argue the opinions are actionable\n\nbecause Defendants allegedly omitted a \u201ccontradicting material fact[]\u201d\u2014\u201cProject Athena.\u201d Opp.\n\n11-12, 14-16. However, this argument again rests on the fact-free conclusion that the \u201cProject\n\nAthena\u201d created in December 2022 is synonymous with the liquidity crisis that emerged in late\n\n\n\n4\n Unlike Solow v. Citigroup, Inc., 827 F. Supp. 2d 280, 288 (S.D.N.Y. 2011) (Opp. 9)\u2014where\ndefendants secretly borrowed from the Federal Reserve\u2019s emergency lending facility\u2014Farfetch\npublicly disclosed its debt financing\u2014including the August 2023 loan\u2014and warned investors it\nmight need additional capital. \u00b6 109; Ex. 3 at 13-14.\n5\n  Plaintiffs\u2019 reliance on Meyer v. Jinkosolar Holdings Co., 761 F.3d 245 (2d Cir. 2014) (Opp. 10),\ndoes not advance their claims. There, the court found defendants\u2019 public assurances actionable\nbecause they were directly contradicted by a contemporaneous letter the company had submitted\nto government authorities identifying \u201cexisting problems.\u201d Id. at 251. Here, by contrast, the letter\nPlaintiffs invoke was authored years later by outside counsel to the entity that purchased Farfetch\u2019s\noperating assets\u2014i.e., individuals with no contemporaneous or even first-hand knowledge of\nFarfetch\u2019s financial condition in late 2022/early 2023\u2014and Plaintiffs identify no contemporaneous\ndocument or communication that contradicted Defendants\u2019 statements when made. Mot. at 14-15.\n\n\n                                                  4\n\f       Case 1:23-cv-10982-ER           Document 84        Filed 02/23/26      Page 10 of 17\n\n\n\n\n2023. Plaintiffs allege only that Project Athena \u201cbegan as undisclosed plans to consummate a\n\ntake-private transaction\u201d and \u201cby the fall of 2023, Project Athena morphed into a multi-faceted\n\neffort\u201d to secure financing. \u00b6\u00b6 90, 94. That narrative aligns with Farfetch\u2019s disclosures, which\n\ndetailed its history of operating losses, warned that it might need to raise additional capital, and\n\npublicly disclosed subsequent financings, including the $200 million debt raise in August 2023. 6\n\n\u00b6\u00b6 3, 44-50, 109. This Court has already recognized that Plaintiffs\u2019 allegations \u201cdo not identify\n\nanything known to the Individual Defendants that is materially different from what Farfetch\n\ndisclosed.\u201d Order at 23. Nothing in the SAC changes that conclusion. 7\n\n       Inactionable Puffery. This Court has already held that generalized expressions of corporate\n\noptimism\u2014such as Farfetch\u2019s statements that it was \u201con track\u201d (\u00b6 172), \u201cwell positioned\u201d (\u00b6 180),\n\nand expected \u201cstrong cash generation\u201d (\u00b6 145)\u2014constitute non-actionable puffery because they\n\nare \u201ctoo general to cause a reasonable investor to rely upon them.\u201d Order at 28-29. Plaintiffs\n\nattempt to sidestep that by recharacterizing Defendants\u2019 statements as \u201cconcrete representations\u201d\n\nthat Farfetch \u201cwas self-funding, and did not need external capital.\u201d 8 Opp. 12-13. Again, however,\n\n\n\n6\n  Because Plaintiffs have not shown that Project Athena was, prior to \u201clate 2023,\u201d anything other\nthan routine capital raising (Opp. 17-18), allegations that any Defendant participated in that\nprocess add nothing to their theory of liability.\n7\n  Nor is there any basis to suggest that every internal deliberation about strategic alternatives must\nbe disclosed whenever a company opines on its liquidity. See Thesling v. Bioenvision, 374 F.\nApp\u2019x 141 (2d Cir. 2010) (no duty to disclose merger negotiations); In re Express Scripts Holding\nCo. Sec. Litig., 2018 WL 2324065, at *7 (S.D.N.Y. May 22, 2018) (Ramos, J.), aff\u2019d sub nom. 773\nF. App\u2019x 9 (2d Cir. 2019) (rejecting \u201cfailed to disclose\u201d theory because \u201cstatements about\nnegotiations, which lack a definite outcome, are not actionable\u201d). Plaintiffs\u2019 reliance on Basic Inc.\nv. Levinson, 485 U.S. 224 (1988) (Opp. 14), is misplaced. In Basic, the defendant affirmatively\nand repeatedly represented that \u201cno negotiations\u201d were occurring when, in fact, merger discussions\nhad been ongoing for over two years. Id. at 227-28\n8\n  Plaintiffs\u2019 authorities (Opp. 12-13) are inapposite. Where they address puffery at all, they\nconcern concrete misrepresentations of existing fact\u2014not generalized, forward-looking\nexpressions of optimism about future liquidity. See Novak v. Kasaks, 216 F.3d 300, 315 (2d Cir.\n2000) (specific representations regarding present inventory levels); In re Vivendi, S.A. Sec. Litig.,\n\n\n                                                  5\n\f       Case 1:23-cv-10982-ER          Document 84        Filed 02/23/26     Page 11 of 17\n\n\n\n\nPlaintiffs identify no statement making such a representation, because the plain language of the at-\n\nissue statements, in fact, confirms the opposite\u2014i.e., that they were not \u201cworded as guarantees.\u201d\n\nOrder at 28-29; Mot. 18-19. These statements are precisely the type of vague corporate optimism\n\nthat courts routinely dismiss as inactionable puffery. E.g., Steamfitters Local 449 Plan v. Skechers\n\nU.S.A., Inc., 412 F. Supp. 3d 353, 366 (S.D.N.Y. 2019) (statement that company \u201cbelieve[d] [it]\n\nwill continue to generate profitable growth and strong cash flows\u201d was inactionable puffery). 9\n\nII.    PLAINTIFFS DO NOT PLEAD A STRONG INFERENCE OF SCIENTER\n\n       Plaintiffs\u2019 claims again fail for the independent reason that the SAC fails to plead the\n\nrequisite strong inference of scienter. Mot. 21-25; Order at 35-43.\n\n       No Cognizable Motive. As this Court observed in dismissing the CAC, the fact that\n\nDefendants \u201cincreased their stockholdings during the Class Period\u201d undermines any inference of\n\nfraudulent intent. Order at 36. Courts in this District have repeatedly held that an increase in net\n\nholdings is \u201cinconsistent with fraudulent intent,\u201d Tung v. Bristol-Myers Squibb Co., 412 F. Supp.\n\n3d 453, 460-61 (S.D.N.Y. 2019), and \u201ccannot support a \u2018cogent and compelling\u2019 inference\u201d of\n\nfraud, Avon Pension Fund v. GlaxoSmithKline PLC, 343 F. App\u2019x 671, 673 (2d Cir. 2009).\n\nPlaintiffs\u2019 attempt to sidestep these dispositive facts by pointing to two stock sales (Opp. 21-22)\n\nis without merit. Mr. Jordan and Ms. Phair each made only a single sale, both of which were\n\n\u201cmade to cover . . . tax liabilities\u201d from the vesting of even more Farfetch stock\u2014circumstances\n\nthat \u201cdo not support an inference of scienter\u201d as a matter of law. See Damri v. LivePerson, Inc.,\n\n\n\n\n838 F.3d 223, 245 (2d Cir. 2016) (reported income for a prior quarter).\n9\n  Plaintiffs offer no response to Defendants\u2019 arguments concerning post-Class Period events\u2014\nincluding Coupang\u2019s May 8, 2024, valuation and the subsequent sales of NGG assets\u2014and thus\nhave forfeited any reliance on those allegations. See Sachsenberg v. IRSA Inversiones, 339 F.\nSupp. 3d 169, 181 (S.D.N.Y. 2018) (arguments not addressed in opposition may be deemed\nabandoned); see also Mot. 19-21; Opp. (silent as to these issues).\n\n\n                                                 6\n\f       Case 1:23-cv-10982-ER         Document 84        Filed 02/23/26      Page 12 of 17\n\n\n\n\n772 F. Supp. 3d 430, 468 (S.D.N.Y. 2025); Exs. 19-20 (showing \u201cshares sold to cover withholding\n\ntaxes upon vesting of restricted stock unit award[s]\u201d). Moreover, it \u201cdefies economic reason\u201d to\n\nsuggest that Mr. Jordan and Ms. Phair would have increased their already substantial stock\n\nholdings during the relevant period (Mot. 22 n.12), only to incur significant losses when Farfetch\n\nwas ultimately liquidated. See Kalnit v. Eichler, 264 F.3d 131, 140-41 (2d Cir. 2001).\n\n       As for Mr. Neves, Plaintiffs assert that his \u201ctotal holdings decreased\u201d because shares were\n\ntransferred to TGF Participations (Opp. 22), but that characterization omits the critical fact that\n\nNeves retained beneficial ownership of the transferred shares. Ex. 12 at 118 (table showing shares\n\nheld by TGF Participations treated as shares held by Mr. Neves because he \u201cmay be deemed to\n\nhave beneficial ownership of those\u201d shares). Courts have repeatedly held that transactions in\n\nwhich a defendant maintains beneficial ownership \u201ccannot support [] scienter.\u201d Woodward v.\n\nRaymond James Fin., Inc., 732 F. Supp. 2d 425, 437 (S.D.N.Y. 2010); Glaser v. The9, Ltd., 772\n\nF. Supp. 2d 573, 594 (S.D.N.Y. 2011) (same).\n\n       Finally, Plaintiffs alternatively argue that Defendants were motivated to \u201cstave off\n\nbankruptcy\u201d and \u201cmaintain [] credit access\u201d long enough to complete Project Athena. Opp. 18-\n\n19. 10 However, the desire to avoid insolvency or maintain access to credit is common to virtually\n\nevery business enterprise and insufficient to support a strong inference of scienter. If that were\n\nenough, \u201cvirtually every company in the United States . . . could be forced to defend securities\n\nfraud actions.\u201d Saraf v. Ebix, Inc., 2024 WL 1298246, at *2 (2d Cir. Mar. 27, 2024); In re Elan\n\nCorp. Sec. Litig., 543 F. Supp. 2d 187, 216 (S.D.N.Y. 2008) (similar). 11 In any event, the notion\n\n\n10\n  The Opposition also references a motive to \u201cpreserve [a] relationship with J.P. Morgan.\u201d Opp.\n18. This assertion says nothing about a motive to defraud investors and is unsupported by any\nparticularized allegations.\n11\n  Plaintiffs\u2019 cases (Opp. 19) are readily distinguishable. E.g., Howard v. Everex Sys., 228 F.3d\n1057, 1064 (9th Cir. 2000) (defendants inflated sales and overstated net value to raise financing\n\n\n                                                7\n\f       Case 1:23-cv-10982-ER           Document 84        Filed 02/23/26      Page 13 of 17\n\n\n\n\nthat the Individual Defendants lied about the need for financing in order to obtain more financing\n\nis belied by the fact that the Company repeatedly warned that they were loss-making, would need\n\nto raise additional capital, and then disclosed that they incurred more indebtedness during the\n\nperiod. Ex. 3 at 13; Ex. 12 at 13, 100. \u201cTo put it mildly, [d]efendants\u2019 disclosures about the risk\u201d\n\nit was \u201csupposedly concealing\u201d are \u201cinconsistent with\u201d scienter. Holbrook v. Trivago N.V., 2019\n\nWL 948809, at *21 (S.D.N.Y. Feb. 26, 2019).\n\n       No Circumstantial Evidence. Plaintiffs contend that Defendants\u2019 involvement in Project\n\nAthena establishes scienter. Opp. 17-18. But the SAC does not identify any information\n\nDefendants allegedly learned through that process that contradicted their public statements. See\n\nMot. 24. The discovery letter on which Plaintiffs rely (see Opp. 7-8, 17-18) likewise contains no\n\nsuch facts. As noted above, it confirms that Farfetch\u2019s financial decline began in the second half\n\nof 2023\u2014after the at-issue statements\u2014and that serious liquidity concerns did not arise until \u201clate\n\n2023.\u201d 12 And Plaintiffs have now abandoned the former employee allegations, acknowledging\n\nthat their \u201cscienter theory does not depend\u201d on these allegations. Opp. 20. Although Plaintiffs say\n\nthese allegations provide \u201ccontext,\u201d it remains true that four of the five FEs are not alleged to have\n\nhad any contact with any Individual Defendant and therefore cannot support an inference as to\n\ntheir state of mind. Janbay v. Canadian Solar, Inc., 2013 WL 1287326, at *11 (S.D.N.Y. Mar.\n\n\n\nand avoid violating loan covenants); Leone v. ASP Isotopes Inc., 2025 WL 3484821, at *22\n(S.D.N.Y. Dec. 4, 2025) (motive adequately alleged where company had \u201cno meaningful revenue\u201d\nand was dependent on stock sales to fund operations). Nothing comparable is alleged here.\n12\n   Plaintiffs\u2019 authorities (Opp. 18) underscore only what is missing here: allegations of specific\ninternal information flatly contradicting Defendants\u2019 public statements. See zCap Equity Fund\nLLC v. LuxUrban Hotels Inc., 792 F. Supp. 3d 407, 434-35, 440-41 (S.D.N.Y. 2025) (scienter\nadequately alleged where defendant was personally required to guarantee obligations arising from\na transaction that had, in fact, failed, while publicly stating that the transaction had been\nsuccessfully completed); Ho v. Duoyuan Glob. Water, Inc., 887 F. Supp. 2d 547, 574-75 (S.D.N.Y.\n2012) (executives oversaw conflicting accounting reports where SEC filings reported revenue and\nnet income one hundred times greater than figures reported in parallel SAIC filings).\n\n\n                                                  8\n\f       Case 1:23-cv-10982-ER           Document 84        Filed 02/23/26       Page 14 of 17\n\n\n\n\n28, 2013); Mot. 22-23. Plaintiffs attempt to recast FE5\u2019s allegation\u2014that Mr. Jordan referenced\n\ninvestors \u201cthreatening to pull their money out of Farfetch because of longstanding internal\n\n[control] deficiencies\u201d at NGG, \u00b6 108\u2014as evidence of a concealed liquidity crisis. Opp. 20. But\n\nthe Court has already held that this very allegation is insufficient, Order at 40, and Plaintiffs still\n\nfail to explain how the supposed possibility that unspecified investors might \u201cpull their money\n\nout\u201d (i.e., sell their Farfetch stock to others) bears in any way on whether any Individual Defendant\n\nknew that Farfetch\u2019s operations would not generate sufficient liquidity.\n\n       Core Operations. Plaintiffs\u2019 invocation of the \u201ccore operations\u201d doctrine adds nothing.\n\nOpp. 20-21. That doctrine \u201cdoes not independently establish scienter,\u201d Lipow v. Net1 UEPS\n\nTechs., Inc., 131 F. Supp. 3d 144, 163 (S.D.N.Y. 2015) (Ramos, J.), 13 and does not permit the\n\ninference that any executive who speaks about liquidity must have acted with fraudulent intent.\n\nSee In re Kandi Techs. Grp., Inc. Sec. Litig., 2019 WL 4918649, at *8 (S.D.N.Y. Oct. 4, 2019).\n\n       Temporal Proximity. Finally, Plaintiffs argue that because there were only a few months\n\nbetween the at-issue liquidity statements and Farfetch\u2019s liquidation, the earlier statements must\n\nhave been lies. Opp. 21. However, temporal proximity alone is \u201ctoo speculative\u201d to support an\n\ninference of fraud. In re SuperCom Inc. Sec. Litig., 2018 WL 4926442, at *32 (S.D.N.Y. Oct. 10,\n\n2018); In re Ferroglobe PLC Sec. Litig., 2020 WL 6585715, at *11 (S.D.N.Y. Nov. 10, 2020).\n\n       The More Compelling, Non-Culpable Inference. Viewed holistically, the SAC offers no\n\nplausible reason why Defendants would orchestrate a fraud that resulted in their own massive\n\nfinancial losses. The far more compelling inference is that Defendants remained optimistic about\n\n\n\n\n13\n  Plaintiffs\u2019 cases (Opp. 20-22) are in accord. See New Orleans Emp. Ret. Sys. v. Celestica, Inc.,\n455 F. App\u2019x 10, 14 (2d Cir. 2011) (core operations \u201ccannot establish scienter independently\u201d);\nOkla. Firefighters Pension & Ret. Sys. v. Lexmark Int\u2019l, Inc., 367 F. Supp. 3d 16, 37-38 (S.D.N.Y.\n2019) (core operations \u201cnot independently sufficient to raise a strong inference of scienter\u201d).\n\n\n                                                  9\n\f       Case 1:23-cv-10982-ER           Document 84        Filed 02/23/26       Page 15 of 17\n\n\n\n\nFarfetch\u2019s prospects, invested accordingly, and disclosed risks and financing needs as they arose\u2014\n\nbut the Company ultimately succumbed to adverse market conditions in late 2023. Mot. 3-7, 24-\n\n25. That non-culpable explanation is far more cogent and compelling than fraudulent intent. See\n\nIn re AT&T/DirecTV Now Sec. Litig., 480 F. Supp. 3d 507, 531 (S.D.N.Y. 2020).\n\nIII.   THE SAC FAILS TO PLEAD SCHEME LIABILITY\n\n       Plaintiffs concede that a \u201cformal process to raise capital or sell the business\u201d is not\n\n\u201cinherently fraudulent,\u201d but contend it became \u201cdeceptive\u201d because Defendants allegedly\n\n\u201cden[ied] any need\u201d to raise capital. Opp. 1, 8, 23. That fails both because Defendants never\n\ndenied any need to raise capital, see supra, and because scheme liability requires conduct distinct\n\nfrom alleged misstatements themselves. Buhrke Fam. Revocable Trust v. U.S. Bancorp, 726 F.\n\nSupp. 3d 315, 363 (S.D.N.Y. 2024). Plaintiffs identify no such conduct and merely repackage\n\ntheir misstatements theory as a \u201cscheme.\u201d\n\nIV.    PLAINTIFFS\u2019 REQUEST FOR LEAVE TO AMEND SHOULD BE DENIED\n\n       Plaintiffs had the benefit of this Court\u2019s detailed \u201cguidance as to how [] claims may be\n\nadequately made,\u201d Order at 45, but did nothing to address the prior complaint\u2019s flaws. Plaintiffs\n\nhave narrowed their theory to challenge statements Defendants never made and ignore the many\n\ndisclosures Defendants did make on this topic. The SAC offers no new witnesses\u2014indeed, one\n\nhas been dropped\u2014and Plaintiffs concede that the rest merely provide \u201cadditional context.\u201d Opp.\n\n20. In a single footnote, Plaintiffs request leave to amend, but they identify no additional facts that\n\ncould cure the SAC\u2019s fundamental deficiencies.           Opp. 25 n.10.      This is Plaintiffs\u2019 third\n\nunsuccessful attempt to plead a viable securities fraud claim. There should not be a fourth.\n\nPleading is not \u201can interactive game in which plaintiffs file a complaint, and then bat it back and\n\nforth with the Court over a rhetorical net until a viable claim emerges.\u201d Kravitz v. Tavlarios, 2020\n\nWL 3871340, at *12 (S.D.N.Y. July 8, 2020), aff\u2019d, 2021 WL 5365582 (2d Cir. Nov. 18, 2021).\n\n\n                                                  10\n\f     Case 1:23-cv-10982-ER         Document 84      Filed 02/23/26     Page 16 of 17\n\n\n\n\n                                     CONCLUSION\n\n      For the foregoing reasons, the SAC should be dismissed with prejudice.\n\n\n\nDated: February 23, 2026                                 Respectfully submitted,\n       New York, New York\n                                                         LATHAM & WATKINS LLP\n\n                                                         /s/ Jeff G. Hammel\n                                                         Jeff G. Hammel\n                                                         Jason C. Hegt\n                                                         Jooyoung Yeu\n                                                         1271 Avenue of the Americas\n                                                         New York, New York 10020\n                                                         Telephone: (212) 906-1200\n                                                         Facsimile: (212) 751-4864\n                                                         jeff.hammel@lw.com\n                                                         jason.hegt@lw.com\n                                                         jooyoung.yeu@lw.com\n\n                                                         Attorneys for Defendants Jos\u00e9 Neves,\n                                                         Elliot Jordan, and Stephanie Phair\n\n\n\n\n                                             11\n\f      Case 1:23-cv-10982-ER         Document 84        Filed 02/23/26     Page 17 of 17\n\n\n\n\n                 CERTIFICATION OF WORD COUNT COMPLIANCE\n\n       Pursuant to Local Civil Rule 7.1(c) and Rule 2.B.i of Your Honor\u2019s Individual Practices, I\n\ncertify under penalty of perjury that the Reply Memorandum of Law in Further Support of the\n\nIndividual Defendants\u2019 Motion to Dismiss the Second Amended Complaint is 10 pages and\n\ncontains 3,579 words, excluding items exempted by Local Civil Rule 7.1(c). In making this\n\ncertification I have relied upon the word count of Microsoft Word, the word-processing system\n\nused to prepare the memorandum.\n\n\n\nDated: New York, New York\n       February 23, 2026\n\n                                                           /s/ Jeff G. Hammel\n                                                           Jeff G. Hammel\n\n\n\n\n                                              12\n\f","ocr_status":2,"date_upload":"2026-05-31T15:33:44.519656-07:00","document_number":"84","attachment_number":null,"pacer_doc_id":"127039115900","is_available":true,"is_free_on_pacer":null,"is_sealed":false,"document_type":1,"description":"Reply Memorandum of Law in Support of Motion","acms_document_guid":""}],"date_created":"2026-02-23T17:07:08.734215-08:00","date_modified":"2026-10-20T06:53:42.196295-07:00","date_filed":"2026-02-23","time_filed":"20:01:52","entry_number":84,"recap_sequence_number":"2026-02-23.001","pacer_sequence_number":290,"description":"REPLY MEMORANDUM OF LAW in Support re: 79 MOTION to Dismiss the Second Amended Class Action Complaint. // Reply Memorandum of Law in Further Support of the Individual Defendants' Motion to Dismiss the Second Amended Class Action Complaint. Document filed by Elliot Jordan, Jose Neves, Stephanie Phair..(Hammel, Jeff) (Entered: 02/23/2026)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/454628548/","id":454628548,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/469551073/","id":469551073,"tags":[],"absolute_url":"/docket/68102459/71/in-re-farfetch-limited-securities-litigation/","date_created":"2026-02-21T08:26:52.103632-08:00","date_modified":"2026-02-21T08:27:33.638960-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"71","attachment_number":null,"pacer_doc_id":"","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Order on Motion to Appear Pro Hac Vice","acms_document_guid":""}],"date_created":"2026-02-21T08:26:52.073349-08:00","date_modified":"2026-10-20T06:53:41.990991-07:00","date_filed":"2025-05-28","time_filed":null,"entry_number":71,"recap_sequence_number":"2025-05-28.001","pacer_sequence_number":null,"description":"ORDER granting 70 Motion for Kenneth P. Monroe to Appear Pro Hac Vice. (HEREBY ORDERED by Judge Edgardo Ramos)(Text Only Order) (jar) (Entered: 05/28/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/454628547/","id":454628547,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/469551072/","id":469551072,"tags":[],"absolute_url":"","date_created":"2026-02-21T08:26:51.273720-08:00","date_modified":"2026-02-21T08:27:32.679258-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"","attachment_number":null,"pacer_doc_id":"","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Pre-Motion Conference","acms_document_guid":""}],"date_created":"2026-02-21T08:26:51.259100-08:00","date_modified":"2026-02-21T08:27:32.659406-08:00","date_filed":"2025-04-10","time_filed":null,"entry_number":null,"recap_sequence_number":"2025-04-10.001","pacer_sequence_number":null,"description":"","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/454628546/","id":454628546,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/469551071/","id":469551071,"tags":[],"absolute_url":"","date_created":"2026-02-21T08:26:50.931996-08:00","date_modified":"2026-02-21T08:27:32.410188-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"","attachment_number":null,"pacer_doc_id":"","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Set/Reset Deadlines","acms_document_guid":""}],"date_created":"2026-02-21T08:26:50.915328-08:00","date_modified":"2026-02-21T08:27:32.389898-08:00","date_filed":"2025-03-14","time_filed":null,"entry_number":null,"recap_sequence_number":"2025-03-14.001","pacer_sequence_number":null,"description":"","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/452467434/","id":452467434,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/467336055/","id":467336055,"tags":[],"absolute_url":"/docket/68102459/83/in-re-farfetch-limited-securities-litigation/","date_created":"2026-02-02T19:08:38.478019-08:00","date_modified":"2026-06-23T05:42:09.429204-07:00","sha1":"40baa53743ea5af703efb570dac74fb9edb46cdc","page_count":35,"file_size":703563,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.83.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.83.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"     Case 1:23-cv-10982-ER   Document 83   Filed 02/02/26   Page 1 of 35\n\n\n\n\n                    UNITED STATES DISTRICT COURT\n                   SOUTHERN DISTRICT OF NEW YORK\n\n\nIN RE FARFETCH LIMITED SECURITIES      Case No.: 1:23-cv-10982-ER-KHP [rel.\nLITIGATION                             1:24-cv-00532-ER]\n\n\n\nTHIS DOCUMENT RELATES TO:\n\nALL ACTIONS\n\n\n\n\n   PLAINTIFFS\u2019 OPPOSITION TO THE INDIVIDUAL DEFENDANTS\u2019 MOTION TO\n        DISMISS THE SECOND AMENDED CLASS ACTION COMPLAINT\n\f       Case 1:23-cv-10982-ER                       Document 83                 Filed 02/02/26                Page 2 of 35\n\n\n\n\n                                                TABLE OF CONTENTS\n                                                                                                                                      Page\n\nI.     INTRODUCTION .............................................................................................................. 1\n\nII.    SUMMARY OF THE FACTS ........................................................................................... 2\n\n       A.        Farfetch\u2019s business model and expansion strategy led to mounting\n                 financial strain. ........................................................................................................ 2\n\n       B.        Defendants publicly assured investors that Farfetch was financially\n                 secure and self-funding. .......................................................................................... 2\n\n       C.        At the same time, Defendants initiated and pursued Project Athena. ..................... 3\n\n       D.        The truth about Farfetch\u2019s financial condition and strategic\n                 direction emerges. ................................................................................................... 4\n\nIII.   ARGUMENT ...................................................................................................................... 6\n\n       A.        The Complaint adequately alleges materially misleading\n                 statements. ............................................................................................................... 6\n\n                 1.         The SAC does not rely on fraud by hindsight............................................. 6\n\n                 2.         Defendants\u2019 statements conveyed present financial\n                            conditions, not forward-looking statements or mere\n                            optimism. .................................................................................................... 8\n\n                            a.         The PSLRA safe harbor does not protect\n                                       Defendants\u2019 misrepresentations and omissions of\n                                       known contemporaneous facts. ....................................................... 9\n\n                            b.         Defendants\u2019 \u201copinion\u201d statements omitted material\n                                       facts about their knowledge that conflicted with the\n                                       story they told investors. ................................................................11\n\n                            c.         Defendants\u2019 assurances of sufficient liquidity and\n                                       self-funding were not inactionable confidence or\n                                       puffery. .......................................................................................... 12\n\n                 3.         Defendants\u2019 concealment of Project Athena rendered their\n                            public statements misleading. ................................................................... 14\n\n                            a.         Project Athena was a formal strategic process, not a\n                                       hypothetical contingency. ............................................................. 14\n\n                            b.         The concealed process was inconsistent with\n                                       Defendants\u2019 public liquidity assurances. ....................................... 15\n\n\n\n                                                                  -i-\n\f        Case 1:23-cv-10982-ER                       Document 83                  Filed 02/02/26               Page 3 of 35\n\n\n\n\n                             c.         A reasonable investor would have considered the\n                                        omitted information material. ....................................................... 16\n\n        B.        The SAC adequately alleges a strong inference of scienter. ................................. 16\n\n                  1.         Defendants\u2019 direct participation in Project Athena\n                             establishes scienter. ................................................................................... 17\n\n                  2.         Defendants had the motive and opportunity to commit\n                             fraud. ......................................................................................................... 18\n\n                  3.         Additional allegations support the inference of scienter. .......................... 20\n\n                  4.         Defendants\u2019 stock trading does not negate scienter. ................................. 21\n\n                  5.         Defendants\u2019 non-fraudulent inference is not more\n                             compelling than the inference of scienter. ................................................ 22\n\n        C.        Plaintiffs adequately allege scheme liability. ........................................................ 23\n\n        D.        The SAC adequately pleads \u201cControl Person\u201d liability under\n                  Section 20(a). ........................................................................................................ 25\n\nIV.     CONCLUSION ................................................................................................................. 25\n\nWORD COUNT COMPLIANCE CERTIFICATE ...................................................................... 27\n\n\n\n\n                                                                   -ii-\n\f          Case 1:23-cv-10982-ER                      Document 83               Filed 02/02/26              Page 4 of 35\n\n\n\n\n                                               TABLE OF AUTHORITIES\n                                                                                                                               Page(s)\n\n                                                                CASES\n\nAIG Glob. Sec. Lending Corp. v. Banc of Am. Sec., LLC,\n   2005 WL 2385854 (S.D.N.Y. Sept. 26, 2005)...........................................................................7\n\nAlpha Cap. Anstalt v. Schwell Wimpfheimer & Assocs. LLP,\n   2018 WL 1627266 (S.D.N.Y. Mar. 30, 2018) ...................................................................24, 25\n\nIn re Anheuser-Busch InBev SA/NV Sec. Litig.,\n    2020 WL 5819558 (S.D.N.Y. Sept. 29, 2020).........................................................................10\n\nAshland Inc. v. Morgan Stanley & Co.,\n   652 F.3d 333 (2d Cir. 2011).....................................................................................................10\n\nIn re Atlas Air Worldwide Holdings, Inc. Sec. Litig.,\n    324 F.Supp.2d 474 (S.D.N.Y. 2004)..........................................................................................7\n\nIn re Bank of Am. AIG Disclosure Sec. Litig.,\n    980 F.Supp.2d 564 (S.D.N.Y. 2013)........................................................................................10\n\nBasic Inc. v. Levinson,\n   485 U.S. 224 (1988) .................................................................................................................16\n\nIn re Bear Stearns Companies, Inc. Sec., Derivative, & ERISA Litig.,\n    763 F.Supp.2d 423 (S.D.N.Y. 2011)......................................................................................6, 7\n\nIn re BHP Billiton Ltd. Sec. Litig.,\n    276 F. Supp. 3d 65 (S.D.N.Y. 2017)........................................................................................10\n\nBISYS Sec. Litig.,\n   397 F.Supp.2d 430 (S.D.N.Y. 2005)........................................................................................21\n\nIn re DRDGOLD Ltd. Sec. Litig.,\n    472 F. Supp. 2d 562 (S.D.N.Y. 2007)......................................................................................10\n\nIn re Gen. Elec. Co. Sec. Litig.,\n    857 F.Supp.2d 367 (S.D.N.Y. 2012)........................................................................................23\n\nHo v. Duoyuan Glob. Water, Inc.,\n   887 F.Supp.2d 547 (S.D.N.Y. 2012)........................................................................................18\n\nHoward v. Everex Sys., Inc.,\n  228 F.3d 1057 (9th Cir. 2000) .................................................................................................19\n\nJones v. Perez,\n   550 F. App\u2019x 24 (2d Cir. 2013) ...............................................................................................10\n\n\n\n                                                                  -iii-\n\f           Case 1:23-cv-10982-ER                      Document 83               Filed 02/02/26             Page 5 of 35\n\n\n\n\nKarimi v. Deutsche Bank Aktiengesellschaft,\n   607 F.Supp.3d 381 (S.D.N.Y. 2022)..........................................................................................8\n\nLeone v. ASP Isotopes Inc.,\n   2025 WL 3484821 (S.D.N.Y. Dec. 4, 2025) ...........................................................................19\n\nLoreley Fin. (Jersey) No. 3 Ltd. v. Wells Fargo Sec., LLC,\n   797 F.3d 160 (2nd Cir. 2015)...................................................................................................25\n\nLorenzo v. Sec. & Exch. Comm\u2019n,\n   587 U.S. 71 (2019) ...................................................................................................................23\n\nMeyer v. Jinkosolar Holdings Co.,\n   761 F.3d 245 (2d Cir. 2014).....................................................................................................10\n\nIn re MINISO Grp. Holding Ltd. Sec. Litig.,\n    2024 WL 759246 (S.D.N.Y. Feb. 23, 2024) ............................................................................10\n\nNew Orleans Emp. Ret. Sys. v. Celestica, Inc.,\n   455 F. App\u2019x 10 (2d Cir. 2011) ...............................................................................................20\n\nIn re Nortel Networks Corp. Secs. Litig.,\n    238 F.Supp.2d 613 (S.D.N.Y. 2003)........................................................................................11\n\nNovak v. Kasaks,\n   216 F.3d 300 (2d Cir. 2000)...............................................................................................11, 12\n\nOkla. Firefighters Pension & Ret. Sys. v. Lexmark Int\u2019l, Inc.,\n   367 F.Supp.3d 16 (S.D.N.Y. 2019) .........................................................................................20\n\nOmnicare, Inc. v. Laborers Dist. Council,\n  575 U.S. 175 (2015) .................................................................................................................12\n\nOneida Sav. Bank v. Uni-Ter Underwriting Mgmt. Corp.,\n   2014 WL 4678046 (N.D.N.Y. Sept. 18, 2014) ........................................................................19\n\nIn re Oxford Health Plans, Inc.,\n    187 F.R.D. 133 (S.D.N.Y. 1999) .............................................................................................21\n\nP. Stolz Fam. P\u2019Ship L.P. v. Daum,\n    355 F.3d 92 (2d Cir. 2004).........................................................................................................9\n\nIn re Pareteum Sec. Litig.,\n    2021 WL 3540779 (S.D.N.Y. Aug. 11, 2021) .........................................................................21\n\nIn re Plug Power, Inc. Sec. Litig.,\n    2022 WL 4631892 (S.D.N.Y. Sept. 29, 2022).........................................................................19\n\n\n\n\n                                                                   -iv-\n\f          Case 1:23-cv-10982-ER                      Document 83               Filed 02/02/26             Page 6 of 35\n\n\n\n\nPolice & Fire Ret. Sys. of the City of Detroit v. La Quinta Holdings Inc.,\n   2017 WL 4082482 (S.D.N.Y. Aug. 24, 2017) .........................................................................10\n\nRet. Sys. v. MF Glob., Ltd.,\n    620 F.3d 137 (2d Cir. 2010).......................................................................................................9\n\nRonconi v. Larkin,\n   253 F.3d 423 (9th Cir. 2001) ...................................................................................................21\n\nSetzer v. Omega Healthcare Invs., Inc.,\n    968 F.3d 204 (2d Cir. 2020).......................................................................................................6\n\nShanawaz v. Intellipharmaceutics Int\u2019l Inc.,\n   348 F.Supp.3d 313 (S.D.N.Y. 2018)........................................................................................19\n\nSlayton v. Am. Exp. Co.,\n    604 F.3d 758 (2d Cir. 2010).....................................................................................................10\n\nSolow v. Citigroup, Inc.,\n   827 F.Supp.2d 280 (S.D.N.Y. 2011)........................................................................9, 11, 12, 13\n\nSpecial Situations Fund III QP, L.P. v. Deloitte Touche Tohmatsu CPA, Ltd.,\n   33 F.Supp.3d 401 (S.D.N.Y. 2014) .........................................................................................25\n\nStadium Cap. LLC v. Co-Diagnostics, Inc.,\n   2024 WL 456745 (S.D.N.Y. Feb. 5, 2024) ..............................................................................20\n\nTellabs, Inc. v. Makor Issues & Rts., Ltd.,\n    551 U.S. 308 (2007) ...........................................................................................................17, 23\n\nVillare v. Abiomed, Inc.,\n    2021 WL 4311749 (S.D.N.Y. Sept. 21, 2021).........................................................................10\n\nIn re Vivendi Universal, S.A.,\n    2004 WL 876050 (S.D.N.Y. Apr. 22, 2004)..............................................................................7\n\nIn re Vivendi, S.A. Sec. Litig.,\n    838 F.3d 223 (2d Cir. 2016).......................................................................................8, 9, 12, 16\n\nzCap Equity Fund LLC v. LuxUrban Hotels Inc.,\n   792 F.Supp.3d 407 (S.D.N.Y. 2025)........................................................................................18\n\n                                                             STATUTES\n\n15 U.S.C. \u00a7 78u-4(b)(2)(A)............................................................................................................16\n\n15 U.S.C. \u00a7 78u-5(c)(1)(A)(i) ..........................................................................................................9\n\n\n\n\n                                                                  -v-\n\f           Case 1:23-cv-10982-ER                          Document 83                 Filed 02/02/26                Page 7 of 35\n\n\n\n\n                                                         OTHER AUTHORITIES\n\nRule 10b-5(a) and (c) .....................................................................................................................23\n\nRule 10b-5(b) .................................................................................................................................25\n\nRule 12 .............................................................................................................................................7\n\n\n\n\n                                                                        -vi-\n\f        Case 1:23-cv-10982-ER            Document 83       Filed 02/02/26      Page 8 of 35\n\n\n\n\n                                    I.      INTRODUCTION\n\n       The Court dismissed the CAC for failure to adequately plead falsity and scienter. See ECF\n\nNo. 73. The Second Amended Complaint (\u201cSAC\u201d) (ECF No. 78, cited as \u201c\u00b6_\u201d) cures both\n\ndeficiencies. As to falsity, Plaintiffs no longer focus on statements about being \u201con track,\u201d \u201cback\n\nto growth,\u201d or having \u201cconfidence\u201d in long-term targets. Instead, the SAC alleges a discrete\n\ncategory of concrete, factual representations: that Farfetch was self-funding and did not need\n\nexternal capital. And it identifies a single contemporaneous fact that rendered those representations\n\nmisleading when made: Defendants\u2019 undisclosed initiation and pursuit of Project Athena, a formal\n\nprocess to raise capital or sell the business, beginning the same month as the assurances. \u00b6\u00b6 90-95.\n\nPut simply, Defendants told investors they did not need outside capital while actively seeking\n\noutside capital.\n\n       Plaintiffs\u2019 scienter allegations are also different. Unlike the CAC\u2019s scienter allegations\n\nabout Defendants\u2019 desire to raise capital or keep stock prices high, the SAC now makes clear that\n\nDefendants\u2019 scienter is established by their direct, personal participation in Project Athena\u2014the\n\nvery process they concealed. \u00b6\u00b6 90-95, 108, 128. Defendant Neves initiated and directed Project\n\nAthena as sole Director and controlling shareholder. \u00b6 128. Defendant Jordan, as CFO,\n\nacknowledged to FE5 that large investors were threatening to withdraw funds. \u00b6 108. Defendant\n\nPhair, along with Neves, appointed the administrators who executed the Transfer. \u00b6 128. This is\n\nknowledge from participation.\n\n       Rather than grapple with what the SAC actually alleges, Defendants relitigate the CAC,\n\narguing that Plaintiffs still rely on recycled FE allegations, corporate-position inference, and stock\n\nretention. But those are no longer Plaintiffs\u2019 theories: the SAC\u2019s allegations rest on Defendants\u2019\n\nconduct, not inference from their positions. The motion to dismiss should be denied.\n\n\n\n\n                                                 -1-\n\f        Case 1:23-cv-10982-ER            Document 83       Filed 02/02/26     Page 9 of 35\n\n\n\n\n                               II.     SUMMARY OF THE FACTS\n\nA.      Farfetch\u2019s business model and expansion strategy led to mounting financial strain.\n\n        Farfetch operated a global luxury e-commerce marketplace connecting brands and\n\nboutiques with consumers. \u00b6\u00b6 36-37. Rather than owning inventory at scale, the Company acted\n\nas an asset-light platform earning commissions on gross merchandise value (\u201cGMV\u201d). Id. To\n\nscale, Farfetch pursued aggressive acquisitions that increased its operational complexity and cost\n\nstructure. \u00b6\u00b6 38-43, 63-67. In response, management pivoted its public narrative toward cost\n\ncontrol and \u201cdisciplined execution\u201d to stabilize cash flow. \u00b6\u00b6 104-07. This shift framed the\n\nCompany\u2019s subsequent\u2014and misleading\u2014assurances regarding its liquidity and self-funding\n\ncapabilities.\n\nB.      Defendants publicly assured investors that Farfetch was financially secure and self-\n        funding.\n\n        From late 2022 through 2023, Defendants repeatedly used earnings calls and investor\n\nconferences to broadcast a narrative of financial stability and adequate liquidity. \u00b6\u00b6 96\u2013110. On\n\nthe first day of the Class Period (December 1, 2022), Defendant Neves emphasized Farfetch\u2019s\n\nability \u201cto leverage [its] investments,\u201d and that the CMD was \u201call about providing clarity to\n\n[investors] on the building blocks of that road map.\u201d \u00b6 97. Defendant Jordan claimed that\n\nFarfetch\u2019s \u201cbusiness investments are starting to pay off,\u201d that \u201cthe model works,\u201d and that \u201cnow\n\ntoday, we have clear visibility that we will deliver not only growth, but sustained profitability and\n\npositive free cash flow moving forward.\u201d \u00b6\u00b6 99, 101. These assurances were a fa\u00e7ade. Behind the\n\nscenes, that very same month, Farfetch began exploring a sale of the Company to address a\n\nliquidity crisis it had just denied existed. \u00b6 90.\n\n        Despite the ongoing secret sale process deemed internally as \u201cProject Athena,\u201d Defendants\n\nspent February 2023 doubling down on claims of Farfetch\u2019s financial stability. \u00b6\u00b6 104-05.\n\n\n\n\n                                                     -2-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26       Page 10 of 35\n\n\n\n\nDefendants claimed the Company had taken decisive steps to improve cash flow, with Defendant\n\nNeves declaring that \u201cFarfetch begins the year as an even stronger and more efficient\n\norganization[.]\u201d Id. Defendants represented that Farfetch was on track to generate free cash flow\n\nand that its balance sheet provided sufficient flexibility to execute its business plan without\n\nadditional financing. Id. While Defendants represented that no additional financing was needed,\n\nthey were privately pursuing a sale and emergency financing to prevent a total liquidity crisis.\n\n\u00b6\u00b6 90-95.\n\n       Indeed, throughout 2023, Defendants reiterated that Farfetch did not require additional\n\nfinancing to continue operating. \u00b6\u00b6 106-07, 110, 152-85. They told investors that Farfetch was\n\nfocused on disciplined execution rather than capital raising and that the Company\u2019s existing\n\nliquidity was sufficient to fund its operations. Id. Defendants attributed Farfetch\u2019s financial outlook\n\nto controllable operational factors, including cost reductions, integration of prior acquisitions, and\n\nfavorable macroeconomic trends, reinforcing the message that Farfetch could meet its goals\n\nwithout resorting to asset sales or other extraordinary transactions. \u00b6\u00b6 97\u2013103. Defendants also\n\nframed 2023 as a \u201cyear of execution,\u201d emphasizing operational discipline, margin improvement,\n\nand long-term value creation rather than liquidity management or capital preservation. \u00b6\u00b6 112, 152,\n\n171, 173, 175. In short, Defendants\u2019 statements conveyed that Farfetch was financially self-\n\nsufficient and faced no pressure to pursue extraordinary measures. The opposite was true.\n\nC.     At the same time, Defendants initiated and pursued Project Athena.\n\n       While making these public assurances, Defendants had already initiated a confidential\n\nstrategic process known internally as \u201cProject Athena.\u201d \u00b6\u00b6 90-95. Project Athena was formed in\n\nDecember 2022, the exact same month as the CMD where Defendants delivered those assurances.\n\n\u00b6\u00b6 90, 97-102.\n\n\n\n\n                                                  -3-\n\f       Case 1:23-cv-10982-ER         Document 83         Filed 02/02/26   Page 11 of 35\n\n\n\n\n       Project Athena was not a speculative contingency plan, and its purpose was explicit: to\n\nevaluate and pursue transactions that would fundamentally alter Farfetch\u2019s ownership or asset\n\nstructure, including a take-private or significant asset sale that would relieve Farfetch of its\n\nobligations as a public company\u2014obligations to the very shareholders Defendants were\n\nsimultaneously reassuring. \u00b6\u00b6 90-94. Farfetch engaged major advisory firms, including J.P.\n\nMorgan, to approach dozens of potential investors. Id.\n\n       Defendants initiated Project Athena in response to Farfetch\u2019s deteriorating financial\n\ncondition and mounting liquidity constraints, notwithstanding their public statements to the\n\ncontrary. \u00b6 90. Based on this project, Defendants recognized internally that Farfetch\u2019s financial\n\nposition was far weaker than portrayed publicly and that extraordinary measures might be required\n\nto sustain the business. \u00b6\u00b6 93-94.\n\n       Defendant Neves, who was the sole Director and controlling shareholder of Farfetch, was\n\ndirectly involved in Project Athena. \u00b6 128. Defendant Jordan, as CFO, was aware of the liquidity\n\npressures driving Project Athena: he explicitly acknowledged to FE5 that \u201clarge investor(s)\u201d were\n\nthreatening to pull money from the Company. \u00b6 108. And Defendant Phair, along with Defendant\n\nNeves, was responsible for appointing administrators who entered into the sale agreement that\n\ntransferred the Farfetch business to Surpique. \u00b6 128. These same individuals were responsible for\n\nthe public statements described above. \u00b6\u00b6 144\u201386.\n\n       Project Athena continued throughout 2023, overlapping entirely with the period of\n\nDefendants\u2019 public assurances. \u00b6\u00b6 90-110.\n\nD.     The truth about Farfetch\u2019s financial condition and strategic direction emerges.\n\n       Beginning in August 2023, Farfetch\u2019s public disclosures began to reveal financial\n\nconditions that diverged sharply from Defendants\u2019 earlier assurances of liquidity sufficiency and\n\nself-funding.\n\n\n\n                                               -4-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26     Page 12 of 35\n\n\n\n\n       First, on August 17, 2023, Farfetch disclosed financial results reflecting continued losses,\n\nnegative free cash flow, and increasing pressure on the Company\u2019s liquidity position. \u00b6 111. These\n\nresults contradicted Defendants\u2019 prior assurances that Farfetch could fund operations from existing\n\nresources. These revelations, coupled with analysts\u2019 downgrades, led to a dramatic 45% decline in\n\nFarfetch\u2019s stock price over a single trading day. \u00b6\u00b6 112-14.\n\n       Then, on November 28, 2023, Farfetch announced it would not be releasing its Q3 2023\n\nfinancial results or providing any future guidance. \u00b6 115. Farfetch explained that its previous\n\nforecasts and guidance were explicitly deemed unreliable, raising serious concerns about its\n\nfinancial health and future prospects. Id. This abrupt decision, made after market hours, sent\n\nshockwaves through the investment community, as Farfetch\u2019s stock price fell 53%. \u00b6 116.\n\n       Finally, on December 18, 2023, Farfetch revealed the results of its year-long secret efforts:\n\nthat it would be transferring its core business to Coupang in exchange for a $500 million bridge\n\nloan, which materially altered the Company\u2019s ownership structure and strategic direction. \u00b6 117.\n\nThe announcement revealed more than financial distress\u2014investors already knew Farfetch faced\n\nchallenges. What they learned on December 18 was that Defendants had spent the prior year\n\npursuing a transaction fundamentally inconsistent with the narrative of stability and self-\n\nsufficiency they had been selling. \u00b6\u00b6 117-18.\n\n       The nature of the transaction\u2014effectively transferring control of key assets and reducing\n\nFarfetch\u2019s obligations as a public company\u2014demonstrated that extraordinary measures were\n\nrequired to sustain the business. \u00b6 118. This move effectively gutted the Company, leaving\n\nshareholders with significant losses and the Company itself facing liquidation. \u00b6 118. On this news,\n\nFarfetch\u2019s share price fell 93.75%, to close at $0.04 per share on December 20, 2023. \u00b6 122.\n\n\n\n\n                                                -5-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26      Page 13 of 35\n\n\n\n\nConsequently, that same day, the NYSE commenced delisting proceedings for Farfetch\u2019s Class A\n\nordinary shares and trading was suspended, effective immediately. Id.\n\n                                      III.    ARGUMENT\n\nA.     The Complaint adequately alleges materially misleading statements.\n\n       Defendants\u2019 motion to dismiss rests on a mischaracterization of both the challenged\n\nstatements and the omission alleged. This is not a case about failed predictions, disappointed\n\nexpectations, or business judgments second-guessed after the fact. Mot. at 1-2, 9-10, 12-13, 16-\n\n18, 19-21, 24-25. Rather, this case is about Defendants\u2019 decision to construct a fraudulent fa\u00e7ade:\n\npublicly touting Farfetch\u2019s liquidity while secretly executing a terminal sale process and\n\nscrambling for the very emergency capital they told investors they did not need.\n\n       Second Circuit law holds that once a company speaks on a subject, it must disclose material\n\nfacts necessary to make those statements not misleading. Setzer v. Omega Healthcare Invs., Inc.,\n\n968 F.3d 204, 214 n.15 (2d Cir. 2020) (noting a duty to disclose omitted facts \u201cwhen there is \u2026 a\n\ncorporate statement that would otherwise be inaccurate, incomplete, or misleading.\u201d). The SAC\n\nalleges that Defendants\u2019 undisclosed pursuit of Project Athena rendered their public liquidity\n\nassurances misleading, that the omitted information was material to reasonable investors, and that\n\nthe claims rest on contemporaneous facts\u2014not hindsight. See In re Bear Stearns Companies, Inc.\n\nSec., Derivative, & ERISA Litig., 763 F.Supp.2d 423, 497 (S.D.N.Y. 2011) (misleading statements\n\nregarding company\u2019s liquidity crisis actionable).\n\n       1.      The SAC does not rely on fraud by hindsight.\n\n       Defendants erroneously contend that Plaintiffs\u2019 claims amount to fraud by hindsight: an\n\neffort to reframe later financial distress as evidence of earlier fraud. Mot. at 19-21. But as is the\n\ncase here, \u201c[t]he incantation of fraud-by-hindsight will not defeat an allegation of\n\n\n\n\n                                                 -6-\n\f       Case 1:23-cv-10982-ER           Document 83         Filed 02/02/26       Page 14 of 35\n\n\n\n\nmisrepresentations and omissions that were misleading and false at the time they were made.\u201d In\n\nre Bear Stearns, 763 F.Supp.2d at 487.\n\n        The SAC identifies contemporaneous facts known to Defendants that rendered Defendants\u2019\n\nstatements about self-funding and stability false when made: namely, their initiation and pursuit\n\nof Project Athena, a secret sale process triggered by the terminal financial distress they were\n\npublicly denying. \u00b6\u00b6 90-95. Courts in this District have repeatedly distinguished between\n\nimpermissible hindsight pleading and permissible allegations grounded in contemporaneous\n\nconduct, as is the case here. See id.; In re Atlas Air Worldwide Holdings, Inc. Sec. Litig., 324\n\nF.Supp.2d 474, 494\u2013495 (S.D.N.Y. 2004) (rejecting defendants\u2019 fraud-by-hindsight claim where\n\nplaintiffs alleged that \u201cthe company failed to take into account information that was available to\n\nit\u201d); AIG Glob. Sec. Lending Corp. v. Banc of Am. Sec., LLC, 2005 WL 2385854, at *12 (S.D.N.Y.\n\nSept. 26, 2005) (amended complaint resolved fraud-by-hindsight concerns by alleging additional\n\ncontemporaneous facts); In re Vivendi Universal, S.A., 2004 WL 876050, at *6 (S.D.N.Y. Apr. 22,\n\n2004) (rejecting defendant\u2019s contention that \u201cplaintiffs\u2019 allegations of a \u2018liquidity crisis\u2019 constitute\n\npleading fraud by hindsight\u201d). Plaintiffs\u2019 allegations fall squarely in the latter category.\n\n        Defendants try to narrow the temporal focus to the \u201csecond half of 2023,\u201d citing the\n\nKirkland letter\u2019s description of events during that period, while simultaneously arguing that the\n\nletter \u201cdeserves no weight.\u201d Mot. at 14. The \u201cweight\u201d that this letter deserves is not a proper subject\n\nfor a Rule 12 challenge.1 Moreover, the SAC alleges (and the Kirkland letter does not negate) that\n\nProject Athena began in December 2022, contemporaneous with the CMD assurances. \u00b6 90. The\n\n\n\n   1\n    Defendants cite a case discounting FE testimony. See Mot. at 14 (citing In re China Mobile\nGames & Ent. Grp., Ltd Sec. Litig., 2016 WL 922711, at *4 (S.D.N.Y. Mar. 7, 2016)); see also\nOrder at 39-40. But that case does not establish whether it is proper for the Court to assign (or not)\nevidentiary weight to the Kirkland letter.\n\n\n\n\n                                                  -7-\n\f       Case 1:23-cv-10982-ER          Document 83         Filed 02/02/26     Page 15 of 35\n\n\n\n\nKirkland letter describes the culmination of a year-long process, not its inception. \u00b6 94.\n\nDefendants\u2019 attempt to recharacterize this as a hindsight case ignores the SAC\u2019s actual allegations.\n\n       Nor does it matter that companies sometimes explore strategic alternatives as a matter of\n\nroutine corporate governance. Mot. at 15 n.8. The SAC does not allege that exploring options is\n\ninherently fraudulent. It alleges that these particular Defendants, at this particular time, publicly\n\nassured investors that Farfetch was self-funding and did not need external capital, while secretly\n\npursuing a process whose entire purpose was to raise external capital or sell the business due to\n\nthe company\u2019s dire condition. See In re Vivendi, S.A. Sec. Litig., 838 F.3d 223, 240\u201341 (2d Cir.\n\n2016) (once company spoke optimistically about strategic plans, it could not conceal the fact that\n\nit was simultaneously pursuing financing alternatives). The contradiction is not between\n\n\u201cexploring options\u201d and being \u201cfinancially healthy\u201d; it is between \u201cwe don\u2019t need outside capital\u201d\n\nand \u201cwe are actively seeking outside capital.\u201d See Karimi v. Deutsche Bank Aktiengesellschaft,\n\n607 F.Supp.3d 381, 392 (S.D.N.Y. 2022) (statements actionable where they are \u201cat odds\u201d with\n\n\u201cwhat was actually going on\u201d).\n\n       The existence of Project Athena differentiates this case from the ones Defendants cite. See\n\nMot. at 12-13. These cases do not involve statements concealing a known but undisclosed business\n\nstrategy, such as Project Athena. Instead, they involve scenarios where the defendants provided\n\ngenerally accurate descriptions of business operations.\n\n       2.      Defendants\u2019 statements conveyed present financial conditions, not forward-\n               looking statements or mere optimism.\n\n       Defendants argue that the challenged statements are non-actionable because they are\n\nforward-looking and protected by the PSLRA safe harbor, or consist of opinions or puffery. Mot.\n\nat 9-19. That framing is inconsistent with both the content of the statements and governing law.\n\n\n\n\n                                                 -8-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26       Page 16 of 35\n\n\n\n\n               a.      The PSLRA safe harbor does not protect Defendants\u2019\n                       misrepresentations and omissions of known contemporaneous facts.\n\n       Defendants invoke the PSLRA safe harbor, arguing that their statements were forward-\n\nlooking and accompanied by cautionary language. Mot. at 9-16. That argument fails for two\n\nindependent reasons.\n\n       First, the safe harbor does not apply to statements of present or historical fact. See Vivendi,\n\n838 F.3d at 246-47; P. Stolz Fam. P\u2019Ship L.P. v. Daum, 355 F.3d 92, 97 (2d Cir. 2004) (\u201cHistorical\n\nor present fact \u2026 is a different matter. Such facts exist and are known; they are not unforeseen or\n\ncontingent.\u201d). Further, \u201c[a] statement may contain some elements that look forward and others that\n\ndo not,\u201d and \u201cforward-looking elements\u201d may be \u201cseverable\u201d from \u201cnon-forward-looking\u201d\n\nelements. Iowa Pub. Emps.\u2019 Ret. Sys. v. MF Glob., Ltd., 620 F.3d 137, 144 (2d Cir. 2010).\n\nDefendants\u2019 assurances of Farfetch\u2019s sufficient liquidity and self-funding communicate current\n\nconditions, not future expectations. \u00b6\u00b6 96-110; see also Solow v. Citigroup, Inc., 827 F.Supp.2d\n\n280, 288 (S.D.N.Y. 2011) (falsity alleged where defendant claimed sufficient liquidity to meet all\n\ndebt obligations).\n\n       Second, even where statements have a forward-looking component, the safe harbor does\n\nnot apply if the statement was not \u201caccompanied by meaningful cautionary statements identifying\n\nimportant factors that could cause actual results to differ materially from those in the forward-\n\nlooking statement[.]\u201d 15 U.S.C. \u00a7 78u-5(c)(1)(A)(i). Defendants here cite cautionary language\n\nadjacent to challenged statements warning that Farfetch may need additional financing in the\n\nfuture, arguing no reasonable investor could have been misled. Mot. at 10-12. But the SAC alleges\n\nthat Defendants initiated Project Athena in December 2022 and actively pursued capital-raising\n\n\n\n\n                                                 -9-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26      Page 17 of 35\n\n\n\n\ntransactions throughout the period of their public assurances. \u00b6\u00b6 90-95. 2 Risk factors warning of\n\npossible future financing needs do not cure the omission of present capital-raising efforts.\n\nDisclosing that something might happen someday is not equivalent to disclosing that it is already\n\nhappening, and Defendants cannot disclaim knowledge of a process they themselves launched. See\n\nMeyer v. Jinkosolar Holdings Co., 761 F.3d 245, 251 (2d Cir. 2014) (cautionary language\n\ninsufficient where it warns of risks as hypotheticals even though they have already materialized).\n\nA generic caution that the company may have to obtain additional financing does not alert investors\n\nthat management has already engaged J.P. Morgan and approached dozens of potential investors.\n\nNo amount of generic caution about macroeconomic uncertainty can cure the concealment of that\n\nknown, contemporaneous conduct. The safe harbor protects against unforeseen contingencies, not\n\nconcealed present conduct, and distinguishes this case from those cited by Defendants. 3\n\n       Defendants argue that Plaintiffs merely recycle FE allegations the Court previously found\n\ninsufficient. Mot. at 12-13. But the SAC\u2019s falsity theory does not depend on the FE allegations.\n\n\n\n  2\n      Defendants cite inapposite cases where (i) plaintiffs failed to adequately allege that the risk\nfactors had already materialized at the time the cautionary statements were made (Ashland Inc. v.\nMorgan Stanley & Co., 652 F.3d 333, 338 (2d Cir. 2011); In re BHP Billiton Ltd. Sec. Litig., 276\nF. Supp. 3d 65, 84 (S.D.N.Y. 2017); In re DRDGOLD Ltd. Sec. Litig., 472 F. Supp. 2d 562, 568,\n573 (S.D.N.Y. 2007); In re MINISO Grp. Holding Ltd. Sec. Litig., 2024 WL 759246, at *17\n(S.D.N.Y. Feb. 23, 2024); Villare v. Abiomed, Inc., 2021 WL 4311749, at *18 (S.D.N.Y. Sept. 21,\n2021); In re Anheuser-Busch InBev SA/NV Sec. Litig., 2020 WL 5819558, at *6 (S.D.N.Y. Sept.\n29, 2020); Police & Fire Ret. Sys. of the City of Detroit v. La Quinta Holdings Inc., 2017 WL\n4082482, at *6 (S.D.N.Y. Aug. 24, 2017)); (ii) the defendants \u201cpromptly disclosed\u201d actualized\nrisks (In re Bank of Am. AIG Disclosure Sec. Litig., 980 F.Supp.2d 564, 580 (S.D.N.Y. 2013)); and\n(iii) the court held that the safe harbor did not apply to a statement where, like here throughout the\nClass Period, the cautionary language remained the same while the situation deteriorated (Slayton\nv. Am. Exp. Co., 604 F.3d 758, 770-73 (2d Cir. 2010)). Mot. at 12, 13-14.\n  3\n     By contrast, Defendants\u2019 cited cases do not concern present-tense, specific, and verifiably false\nstatements. See Mot. at 9 (citing In re Adient plc Sec. Litig., 2020 WL 1644018, at *18-19\n(S.D.N.Y. Apr. 2, 2020) (holding that present-tense statements \u201cprovide[d] no specific information\nas to [defendant\u2019s] current circumstances\u201d)); Jones v. Perez, 550 F. App\u2019x 24, 27 (2d Cir. 2013)\n(concerning \u201cexpectations\u201d about cash balance).\n\n\n\n\n                                                -10-\n\f        Case 1:23-cv-10982-ER          Document 83       Filed 02/02/26      Page 18 of 35\n\n\n\n\nThe core contemporaneous fact rendering Defendants\u2019 statements misleading is Project Athena, a\n\nformal strategic process that the CAC did not plead. The FE allegations provide additional context\n\nabout Farfetch\u2019s operational challenges, but the actionable conduct is Defendants\u2019 concealment of\n\nProject Athena while publicly assuring investors of self-sufficiency.\n\n                 b.     Defendants\u2019 \u201copinion\u201d statements omitted material facts about their\n                        knowledge that conflicted with the story they told investors.\n\n         Defendants argue that statements qualified by \u201cwe believe\u201d or \u201cwe expect\u201d are non-\n\nactionable opinions. Mot. at 16-18; see also Appendix A at 10 (\u201cWe believe that our sources of\n\nliquidity and capital will be sufficient to meet our business needs for at least the next twelve\n\nmonths. We also expect these sources of liquidity will be sufficient to fund our long-term\n\ncontractual obligations and capital needs.\u201d). It is improper to characterize claims as opinions when\n\nthe speakers are aware of contradicting material facts. See In re Nortel Networks Corp. Secs. Litig.,\n\n238 F.Supp.2d 613, 627-28 (S.D.N.Y. 2003) (statements regarding expected revenues were not\n\n\u201csoft opinion[s]\u201d because they were made with \u201cactual knowledge\u201d of \u201cadverse contrary facts\u201d).\n\nAnd Defendants paint with too broad a brush when they assert that the use of words like \u201cbelieve,\u201d\n\n\u201cexpect,\u201d or \u201cstrong\u201d are categorically nonactionable, particularly when the statement contradicts\n\nthen-existing facts.4 See Solow v. Citigroup, Inc., 827 F.Supp.2d 280, 288 (S.D.N.Y. 2011) (claim\n\nthat defendant\u2019s \u201ccash position is very strong\u201d actionable); see also Novak v. Kasaks, 216 F.3d\n\n300, 315 (2d Cir. 2000) (stating inventory \u201cin good shape\u201d or \u201cunder control\u201d actionable when the\n\ncontrary was true).\n\n         But even accepting the characterization of certain statements as opinions, they are\n\nactionable under Omnicare\u2019s third prong: an opinion is misleading if it \u201comit[s] material facts\n\n\n\n  4\n      See Mot. at 16 (citing cases).\n\n\n\n\n                                                -11-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26      Page 19 of 35\n\n\n\n\nabout the speaker\u2019s inquiry or knowledge that conflict with what a reasonable investor would take\n\nfrom the statement.\u201d Omnicare, Inc. v. Laborers Dist. Council, 575 U.S. 175, 189 (2015).\n\n       A reasonable investor hearing that Defendants \u201cbelieved\u201d Farfetch had sufficient liquidity\n\nand did not need external capital would assume that Defendants were not simultaneously pursuing\n\na process to raise capital or sell the business due to a liquidity crisis. Cf. Novak, 216 F.3d at 315\n\n(\u201cHere, the complaint alleges that the defendants did more than just offer rosy predictions; the\n\ndefendants stated that the inventory situation was \u2018in good shape\u2019 or \u2018under control\u2019 while they\n\nallegedly knew that the contrary was true.\u201d). The existence of Project Athena is precisely the kind\n\nof omitted fact about the speaker\u2019s knowledge that renders an opinion misleading under\n\nOmnicare\u2019s third prong.\n\n               c.      Defendants\u2019 assurances of sufficient liquidity and self-funding were not\n                       inactionable confidence or puffery.\n\n       The SAC alleges that Defendants repeatedly told investors that Farfetch had sufficient\n\nliquidity, was self-funding, and did not need to raise additional capital to execute its strategy.\n\n\u00b6\u00b6 96-110, 152-85. These were not abstract expressions of confidence or puffery (see Mot. at 18-\n\n19): they were concrete representations about Farfetch\u2019s current capital resources, cash position,\n\nand ability to operate without external financing. See Solow, 827 F.Supp.2d at 288; Novak, 216\n\nF.3d at 315.\n\n       Indeed, statements regarding liquidity, cash sufficiency, and funding needs are\n\nparadigmatic statements of present condition. Courts in this Circuit consistently hold that\n\nrepresentations that a company has ample liquidity, is well capitalized, or can fund operations\n\nwithout raising capital convey factual information about the company\u2019s current financial posture.\n\nSee In re Vivendi, S.A. Sec. Litig., 838 F.3d 223, 240\u201341 (2d Cir. 2016) (statements suggesting\n\ncompany was financially healthy actionable where undisclosed liquidity risks existed); JinkoSolar,\n\n\n\n\n                                                -12-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26      Page 20 of 35\n\n\n\n\n761 F.3d at 251\u201352 (statements about compliance and operations actionable where\n\ncontemporaneous facts rendered them misleading). And analysts treated these representations as\n\nmaterial: when Farfetch disclosed results contradicting Defendants\u2019 liquidity and profitability\n\nassurances, analysts immediately downgraded the stock, citing the gap between Defendants\u2019 \u201cYear\n\nof Execution\u201d narrative and actual performance. \u00b6 112.\n\n       Defendants attempt to recast these assurances as mere \u201cplans\u201d or \u201cgoals.\u201d Mot. at 9, 19.\n\nBut telling investors that the Company is presently self-funding and does not need outside capital\n\nis not a prediction (\u00b6\u00b6 106, 110, 163-64, 177); it is a representation about current circumstances.\n\nTo wit: a statement that the Company has sufficient liquidity for the next 12 months necessarily\n\nrepresents that it has sufficient liquidity now. See Solow, 827 F.Supp.2d at 288.5 Whether the\n\nCompany is already pursuing capital-raising alternatives bears directly on the truth of that\n\nrepresentation.\n\n       To be clear, Plaintiffs do not rest their claims on generalized expressions of optimism. See\n\nOrder at 28-30. Statements that Farfetch was \u201con track\u201d or that Defendants had \u201cconfidence\u201d in\n\nlong-term targets may be non-actionable puffery in isolation. But the actionable statements here\n\nare different in kind: concrete representations that Farfetch presently had sufficient liquidity, was\n\nself-funding, and did not need external capital. Those are not expressions of hope about the future;\n\nthey are assertions about current financial condition that were rendered misleading by Defendants\u2019\n\ncontemporaneous pursuit of Project Athena.\n\n\n\n\n  5\n     This same logic distinguishes the case at bar from the cases Defendants cite. See Mot. at 19\n(citing Steamfitters Local 499 Pension Plan v. Skechers U.S.A., Inc., 412 F.Supp.3d 353, 366\n(S.D.N.Y. Sept. 23, 2019), and In re Nokia Oyj Sec. Litig., 423 F.Supp.2d 364, 398 (S.D.N.Y.\n2006)).\n\n\n\n\n                                                -13-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26     Page 21 of 35\n\n\n\n\n        Defendants argue that Plaintiffs improperly rely on the \u201cimpression\u201d created by their\n\nstatements rather than words actually spoken. Mot. at 15-16. But Plaintiffs do not ask the Court to\n\nadopt a subjective interpretation. They point to concrete representations (that Farfetch was self-\n\nfunding and did not need capital (\u00b6\u00b6 106, 110, 163-64, 177)) that were directly contradicted by\n\nDefendants\u2019 contemporaneous pursuit of Project Athena. That is not a matter of impression; it is a\n\nmatter of fact.\n\n        3.        Defendants\u2019 concealment of Project Athena rendered their public statements\n                  misleading.\n\n        Defendants next argue that they had no duty to disclose Project Athena, characterizing it\n\nas an unconsummated transaction that companies are not required to announce. Mot. at 14-15. The\n\nSAC alleges otherwise.\n\n                  a.    Project Athena was a formal strategic process, not a hypothetical\n                        contingency.\n\n        The SAC pleads that Project Athena was conceived, approved, and pursued as a defined\n\nstrategic initiative beginning in December 2022. \u00b6 90. It was not an abstract brainstorming exercise\n\nor a shelf-ready contingency. It involved concrete steps, defined objectives, and engagement with\n\npotential transaction counterparties. These allegations distinguish this case from those in which\n\ncourts have held that companies need not disclose preliminary or speculative discussions.\n\n        Courts in this Circuit draw a clear line between vague internal deliberations and formal\n\nstrategic processes. In In re Time Warner Inc. Sec. Litig., the Second Circuit held that \u201cwhen a\n\ncorporation is pursuing a specific business goal and announces that goal as well as an intended\n\napproach for reaching it, it may come under an obligation to disclose other approaches to reaching\n\nthe goal when those approaches are under active and serious consideration.\u201d 9 F.3d 259, 268 (2d\n\nCir. 1993). Project Athena, as alleged, easily meets that standard.\n\n\n\n\n                                                -14-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26       Page 22 of 35\n\n\n\n\n       Defendants argue in a footnote that a take-private transaction is \u201cincompatible\u201d with the\n\nclaim that Farfetch was financially distressed, because no rational buyer would acquire a failing\n\ncompany. Mot. at 15 n.8. That argument misunderstands the SAC\u2019s allegations. Project Athena\u2019s\n\npurpose was not to find a buyer willing to assume Farfetch\u2019s public-company obligations; it was\n\nto transfer the business free of those obligations\u2014including obligations to the very shareholders\n\nDefendants were reassuring. \u00b6 90. The transaction that ultimately occurred is consistent with that\n\nalleged purpose.\n\n       Defendants\u2019 cases holding there is no duty to disclose preliminary merger discussions are\n\nequally unavailing. See Mot. at 15 n.8 (citing Kraft v. Third Coast Midstream, 2021 WL 860987,\n\nat *14 (S.D.N.Y. Mar. 8, 2021); Guevoura Fund v. Silverman, 2016 WL 4939372, at *8-9\n\n(S.D.N.Y. Sept. 12, 2016)). This is not a case about failing to announce a potential deal. It is a case\n\nabout affirmatively assuring investors of financial self-sufficiency while secretly pursuing the\n\nopposite. The duty to disclose arose not from the mere existence of discussions, but from the\n\ndecision to speak about the very subject those discussions contradicted.\n\n       Defendants\u2019 effort to characterize Project Athena as routine contingency planning ignores\n\nthe pleaded facts. The SAC alleges that the project had a specific purpose (to raise capital through\n\nprivatization or asset sales) and that it was pursued contemporaneously with public assurances\n\ndenying the need for such measures.\n\n               b.      The concealed process was inconsistent with Defendants\u2019 public\n                       liquidity assurances.\n\n       The materiality of Project Athena flows directly from the mismatch between what\n\nDefendants told investors and what they were doing internally. Defendants did not merely fail to\n\nvolunteer information about strategic alternatives; they affirmatively told investors that Farfetch\n\nwas financially secure, self-funding, and not in need of external capital. The undisclosed pursuit\n\n\n\n\n                                                 -15-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26    Page 23 of 35\n\n\n\n\nof Project Athena, whose sole purpose was to raise capital through extraordinary transactions,\n\nundercut those assurances.\n\n       Courts routinely find omissions actionable where undisclosed internal actions contradict\n\npublic representations. In JinkoSolar, the Second Circuit held that statements touting operational\n\ncompliance were misleading where the company concealed known violations. 761 F.3d at 251\u2013\n\n52. A similar principle applies here: when a defendant\u2019s internal conduct contradicts its public\n\nnarrative, the omission is actionable. Here, Defendants\u2019 pursuit of Project Athena directly\n\ncontradicted their assurances of financial self-sufficiency.\n\n               c.      A reasonable investor would have considered the omitted information\n                       material.\n\n       Materiality turns on whether there is \u201ca substantial likelihood\u201d that a reasonable investor\n\nwould consider the omitted information to significantly alter the total mix of information made\n\navailable. Basic Inc. v. Levinson, 485 U.S. 224, 231\u201332 (1988). At the pleading stage, Plaintiffs\n\nneed only plausibly allege materiality, not prove it.\n\n       The existence of a formal process to take the company private or sell assets would\n\nunquestionably matter to a reasonable investor evaluating Farfetch\u2019s liquidity, risk profile, and\n\nvaluation. Indeed, courts have repeatedly held that information about a company\u2019s pursuit of\n\nsignificant strategic alternatives can be material when it bears on the company\u2019s financial\n\ncondition. See Vivendi, 838 F.3d at 239; Time Warner, 9 F.3d at 268. Investors rely on\n\nmanagement\u2019s representations about capital sufficiency precisely because those statements signal\n\nwhether extraordinary measures may be forthcoming.\n\nB.     The SAC adequately alleges a strong inference of scienter.\n\n       To plead scienter, a plaintiff must allege facts giving rise to a \u201cstrong inference that the\n\ndefendant acted with the required state of mind.\u201d 15 U.S.C. \u00a7 78u-4(b)(2)(A). A \u201cstrong inference\u201d\n\n\n\n\n                                                -16-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26       Page 24 of 35\n\n\n\n\nis understood to be an inference that is \u201ccogent and compelling\u201d or \u201cat least as likely as any\n\nplausible opposing inference.\u201d Tellabs, Inc. v. Makor Issues & Rts., Ltd., 551 U.S. 308, 324-29\n\n(2007) (emphasis in original). That inference \u201cneed not be irrefutable \u2026 or even the most\n\nplausible,\u201d no \u201csmoking-gun\u201d required. Id. Thus, the \u201cinquiry \u2026 is whether all of the facts alleged,\n\ntaken collectively, give rise to a strong inference of scienter, not whether any individual allegation,\n\nscrutinized in isolation, meets that standard.\u201d Id. at 322-23 (emphasis in original). Plaintiffs meet\n\nthat standard here.\n\n       1.      Defendants\u2019 direct participation in Project Athena establishes scienter.\n\n       The SAC\u2019s scienter allegations do not rest on inference from corporate position or\n\nhindsight from later failure. They rest on a straightforward proposition: Defendants personally\n\nparticipated in Project Athena, a formal process to raise capital or sell the business, while\n\nsimultaneously assuring investors that Farfetch was self-funding and did not need external capital.\n\nDefendants cannot claim ignorance of a process they themselves initiated and directed.\n\nDefendant Neves was the sole Director and controlling shareholder of Farfetch and was directly\n\ninvolved in Project Athena from its inception in December 2022. \u00b6 128. He approved the\n\nengagement of J.P. Morgan and other advisors to pursue a take-private transaction or asset sale.\n\n\u00b6\u00b6 90-91. He was responsible for appointing the administrators who ultimately entered into the\n\nTransfer agreement. \u00b6 128. Throughout this period, Neves publicly assured investors that Farfetch\n\nwas \u201can even stronger and more efficient organization\u201d and that the Company\u2019s \u201cnext phase\u201d was\n\n\u201cabout profitable growth and strong cash generation[.]\u201d \u00b6\u00b6 98, 104. Those assurances were made\n\nwhile Neves was directing a process whose very existence contradicted them.\n\n       Defendant Jordan, as CFO, was aware of the liquidity pressures driving Project Athena.\n\nIn April 2023, weeks before publicly stating that Farfetch was \u201con track\u201d to deliver positive free\n\ncash flow, Jordan explicitly acknowledged to FE5 that \u201clarge investor(s)\u201d were threatening to pull\n\n\n\n                                                 -17-\n\f       Case 1:23-cv-10982-ER         Document 83        Filed 02/02/26      Page 25 of 35\n\n\n\n\nmoney from the Company. \u00b6 108. Jordan also received, in 2022, a paper prepared by the Global\n\nIndirect Tax team outlining the VAT risks draining Farfetch\u2019s cash. \u00b6 85. He cannot plausibly\n\nclaim ignorance of the capital-raising process that his own finance team was supporting.\n\n       Defendant Phair, along with Neves, was responsible for appointing the administrators\n\nwho entered into the Transfer agreement. \u00b6 128. As of Q2 2022, Phair was made accountable for\n\nthe entire Farfetch Group\u2019s profit and losses, reporting directly to Neves. \u00b6 74. In February 2023,\n\nPhair publicly stated that Farfetch was \u201cin a strong position to deliver on our 2023 goals.\u201d \u00b6 105.\n\nShe made these statements while the Company was actively pursuing Project Athena.\n\n       Each Individual Defendant was thus directly involved in the very process they concealed\n\nfrom investors. This is not an inference that executives \u201cmust have known\u201d because of their\n\npositions\u2014it is an allegation that they did know because they participated. That distinction is\n\ncritical. See, e.g., zCap Equity Fund LLC v. LuxUrban Hotels Inc., 792 F.Supp.3d 407, 441\n\n(S.D.N.Y. 2025) (concluding plaintiff adequately alleged co-CEOs had actual knowledge of falsity\n\nwhere alleged that they were directly involved in relevant transactions); Ho v. Duoyuan Glob.\n\nWater, Inc., 887 F.Supp.2d 547, 575 (S.D.N.Y. 2012) (\u201cKnowledge of the falsity of a company\u2019s\n\nfinancial statements can be imputed to key officers who should have known of facts relating to the\n\ncore operations of their company that would have led them to the realization that the company\u2019s\n\nfinancial statements were false when issued.\u201d).\n\n       2.      Defendants had the motive and opportunity to commit fraud.\n\n       Farfetch had a concrete motive to overstate its financial condition: to stave off bankruptcy\n\nand maintain its credit access long enough to complete Project Athena. The SAC alleges that\n\nFarfetch needed to preserve its relationship with J.P. Morgan, which was simultaneously advising\n\non Project Athena and providing credit facilities, to fund operations through the completion of the\n\nundisclosed transaction. \u00b6 109. Had investors known the truth about Farfetch\u2019s liquidity position\n\n\n\n                                               -18-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26      Page 26 of 35\n\n\n\n\nand capital-raising efforts, the Company\u2019s stock price and credit access would have suffered,\n\njeopardizing the Transfer before it could be completed. \u00b6 118.\n\n       This is not a generic allegation that executives wanted to keep their jobs or that companies\n\nprefer higher stock prices. It is a specific allegation that the fraud enabled a specific transaction.\n\nCourts routinely find such allegations sufficient. See, e.g., Howard v. Everex Sys., Inc., 228 F.3d\n\n1057, 1064 (9th Cir. 2000) (scienter based on motive \u201cto improve the prospects of an increased\n\ncredit line \u2026 to fund its \u2026 business plan\u201d). \u201cCourts often find allegations of motive adequate\n\nwhen a company is in dire need of funds for survival.\u201d Leone v. ASP Isotopes Inc., 2025 WL\n\n3484821, at *21 (S.D.N.Y. Dec. 4, 2025) (citing Skiadas v. Acer Therapeutics Inc., 2020 WL\n\n3268495, at *11 (S.D.N.Y. June 16, 2020) (\u201cThat makes sense: An executive at a company that\n\nwill go belly up if it fails to fundraise has different incentives from a generic corporate insider.\n\nOne salient difference is that the former executive has a stronger incentive to bet the farm in a\n\nreckless gamble because the alternative is certain failure.\u201d)); see also Shanawaz v.\n\nIntellipharmaceutics Int\u2019l Inc., 348 F.Supp.3d 313, 326 (S.D.N.Y. 2018) (motive alleged by\n\ncompany\u2019s \u201cdependence on sales of its stock to cover its operating losses.\u201d); Oneida Sav. Bank v.\n\nUni-Ter Underwriting Mgmt. Corp., 2014 WL 4678046, at *14 (N.D.N.Y. Sept. 18, 2014) (scienter\n\nbased on motive to issue indentures specifically in order to delay insolvency and thereby continue\n\nreceiving management fees).6\n\n\n\n\n  6\n     Unlike In re Plug Power, Inc. Sec. Litig., 2022 WL 4631892 (S.D.N.Y. Sept. 29, 2022), where\nplaintiffs alleged only generic motives and defendants faced no acute financial distress, Farfetch\u2019s\nliquidity crisis, minimal revenue, and sustained negative cash flow place this case at the opposite\nend of the spectrum.\n\n\n\n\n                                                -19-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26      Page 27 of 35\n\n\n\n\n       3.      Additional allegations support the inference of scienter.\n\n       Beyond Defendants\u2019 direct participation in Project Athena, the SAC alleges additional facts\n\nsupporting the inference that Defendants knew their public statements were misleading.\n\n       The FE allegations provide context. While Plaintiffs\u2019 scienter theory does not depend on\n\nthe former employee allegations, they reinforce the picture of a company whose leadership knew\n\nof mounting financial pressures. FE2, Director of Global Indirect Tax, prepared a paper on all tax\n\nrisks posed by Farfetch\u2019s business model in 2022, which was given to Defendant Jordan. \u00b6 85.\n\nFE5, a senior member of Internal Controls, reported that as of April 2023, the message from senior\n\nmanagement was that Farfetch could be forced to delist from the NYSE and/or might cease to exist\n\nby the end of the year. \u00b6 108. FE5 also ran a revenues-versus-costs calculation in August 2023\n\nrevealing that a significant portion of products were being sold with little to no margin. \u00b6 88. These\n\nallegations corroborate that Defendants had access to information contradicting their public\n\nnarrative of financial strength.\n\n       The fraud touched core operations. The alleged omissions concerned Farfetch\u2019s\n\nliquidity, capital structure, and strategic direction, which are matters central to the Company\u2019s\n\nbusiness and survival. Courts routinely infer that executives \u201care likely to know more about things\n\ncentral to their business.\u201d Stadium Cap. LLC v. Co-Diagnostics, Inc., 2024 WL 456745, at *5\n\n(S.D.N.Y. Feb. 5, 2024). Farfetch\u2019s Brand Platform, encompassing NGG brands, was the second\n\nlargest division of the Company. \u00b6 138. Direct brand partnerships supplied roughly 70 to 80\n\npercent of third-party product on the Farfetch marketplace. \u00b6 77. The importance of these\n\noperations to Farfetch\u2019s business supports the inference that Defendants were aware of the\n\nchallenges threatening it. See New Orleans Emp. Ret. Sys. v. Celestica, Inc., 455 F. App\u2019x 10, 14\n\n& n.3 (2d Cir. 2011); see also Okla. Firefighters Pension & Ret. Sys. v. Lexmark Int\u2019l, Inc., 367\n\n\n\n\n                                                -20-\n\f         Case 1:23-cv-10982-ER          Document 83      Filed 02/02/26     Page 28 of 35\n\n\n\n\nF.Supp.3d 16, 37-38 (S.D.N.Y. 2019) (inferring scienter from allegations of fraud in the\n\ndefendant\u2019s \u201cprimary profit engine\u201d).\n\n         The temporal proximity supports scienter. The Class Period statements were made\n\nbetween December 2022 and August 2023. By August 17, 2023, Farfetch was already disclosing\n\nresults that contradicted prior assurances. \u00b6\u00b6 111-14. By December 2023, the Company revealed\n\nit had been pursuing Project Athena for the entire year. \u00b6\u00b6 117-22. The close proximity between\n\nDefendants\u2019 assurances and the corrective disclosures supports the inference that Defendants knew\n\nthe truth earlier. See In re Pareteum Sec. Litig., 2021 WL 3540779, at *17 (S.D.N.Y. Aug. 11,\n\n2021).\n\n         4.     Defendants\u2019 stock trading does not negate scienter.\n\n         Defendants argue that the Individual Defendants\u2019 retention of stock holdings during the\n\nClass Period rebuts any inference of scienter. Mot. at 21-22. That argument fails on the facts.\n\n         Defendant Jordan sold 140,527 shares in August 2023, netting over $400,000. ECF No.\n\n81-20. Defendant Phair sold 6,500 shares the same month, netting approximately $35,000. ECF\n\nNo. 81-19. Notably, there is no record of any other sales by Jordan or Phair at any point in their\n\ntenure at Farfetch. The timing of these unprecedented sales, surrounding the first corrective\n\ndisclosure, supports rather than negates the inference of scienter. See In re Oxford Health Plans,\n\nInc., 187 F.R.D. 133, 139 (S.D.N.Y. 1999) (\u201cTrades made a short time before a negative public\n\nannouncement are suspiciously timed.\u201d).7\n\n\n\n  7\n     See also BISYS Sec. Litig., 397 F.Supp.2d 430, 444-45 (S.D.N.Y. 2005) (explaining that timing\nis more suspicious where defendants\u2019 stock sales are \u201cclustered at [the] end [of the putative class\nperiod], when insiders theoretically would have rushed to cash out before the fraud was revealed\nand stock prices plummeted\u201d); Ronconi v. Larkin, 253 F.3d 423, 435 (9th Cir. 2001) (insider sales\nthat were \u201cdramatically out of line with prior trading practices at times calculated to maximize the\npersonal benefit from undisclosed inside information\u201d indicative of scienter).\n\n\n\n\n                                               -21-\n\f       Case 1:23-cv-10982-ER           Document 83        Filed 02/02/26      Page 29 of 35\n\n\n\n\n       As for Defendant Neves, his total holdings decreased during the Class Period due to\n\nforfeitures, and by the end of the period, his shares were held by a holding company (TGF\n\nParticipations Limited) rather than in his own name. This does not reflect confidence in Farfetch\u2019s\n\nprospects.\n\n                                  Shares Held by       Shares Held       Options &\n Reported Holdings As of:                                                                   Total9\n                                    Mr. Neves            by TGF            RSUs8\nFebruary 11, 2022                     97,355                -            4,397,982        4,495,337\nDecember 31, 2022                    381,272             156,150         6,496,184        7,033,606\nDecember 31, 2023                        -               565,438         6,452,705        7,018,143\n\n       Defendants\u2019 trading activity thus does not support the non-culpable inference they urge; to\n\nthe contrary, Defendants\u2019 trading history bolsters Plaintiffs\u2019 alleged inference of scienter.\n\n       5.      Defendants\u2019 non-fraudulent inference is not more compelling than the\n               inference of scienter.\n\n       Defendants\u2019 implicit alternative narrative is that they genuinely believed Farfetch was\n\nfinancially self-sufficient and simply failed to foresee the Company\u2019s later distress. That narrative\n\nis implausible given the SAC\u2019s allegations.\n\n       Defendants did not merely fail to predict the future. They initiated Project Athena in\n\nDecember 2022, the same month they assured investors of Farfetch\u2019s financial strength. \u00b6 90. They\n\nengaged J.P. Morgan and approached dozens of potential investors. \u00b6 92. They pursued a\n\ntransaction designed to transfer the business free of public-company obligations. \u00b6 117. And\n\nthroughout this process, they continued to tell investors that Farfetch did not need external capital.\n\n\u00b6\u00b6 96-110.\n\n\n  8\n    Represents Class A shares Mr. Neves had the right to acquire through the exercise of RSUs or\nstock options that were currently vested or vested within sixty days of December 31, 2021,\nDecember 31, 2022, and December 31, 2023, respectively. See ECF No. 81-3 at 117; ECF No. 81-\n12 at 121; ECF No. 81-22 at 6.\n  9\n    The number reflected does not include 42,858,080 Class B shares exchangeable for Class A\nshares on a one-for-one basis held of record by TGF.\n\n\n\n\n                                                -22-\n\f       Case 1:23-cv-10982-ER         Document 83        Filed 02/02/26      Page 30 of 35\n\n\n\n\n       The notion that Defendants were somehow ignorant of the process they were directing\n\ndefies common sense and logic. See In re Gen. Elec. Co. Sec. Litig., 857 F.Supp.2d 367, 395\n\n(S.D.N.Y. 2012) (\u201c[S]urely an inference of knowledge may be appropriate... where it would be\n\nabsurd to suggest that management was without knowledge of the matter.\u201d).\n\n       Taken collectively, the SAC\u2019s allegations give rise to a strong inference of scienter that is\n\nat least as compelling as any opposing inference. Tellabs, 551 U.S. at 324. Defendants\u2019 motion to\n\ndismiss the scienter allegations should be denied.\n\nC.     Plaintiffs adequately allege scheme liability.\n\n       Defendants argue that Plaintiffs\u2019 scheme liability claim fails because it merely repackages\n\nthe alleged misstatements and omissions. That argument misunderstands both the nature of\n\nPlaintiffs\u2019 allegations and the governing law. The SAC pleads a cohesive, deceptive course of\n\nconduct that goes beyond isolated statements and independently supports liability under Rule 10b-\n\n5(a) and (c).\n\n       Scheme liability attaches where defendants engage in a deceptive course of conduct that\n\nhas the principal purpose and effect of misleading investors, even where that conduct overlaps\n\nwith misstatements or omissions. Lorenzo v. Sec. & Exch. Comm\u2019n, 587 U.S. 71, 79-82 (2019).\n\nThe SAC alleges a coordinated course of deceptive conduct with two components: (1) the active\n\npursuit of Project Athena\u2014engaging advisors, approaching investors, and negotiating a\n\ntransaction to transfer the business; and (2) the simultaneous, repeated reinforcement of a public\n\nnarrative denying any need for such measures. Neither component alone constitutes the scheme;\n\nthe scheme is their deliberate combination.\n\n       First, Defendants argue that the SAC fails to follow the Court\u2019s \u201cclear instruction\u201d to plead\n\nscheme liability in a \u201cseparate count[.]\u201d Mot. at 25 (quoting Order at 44). But the Court\u2019s\n\ninstruction was that any scheme claim must be pleaded \u201cclearly and specifically,\u201d not that it must\n\n\n\n                                               -23-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26      Page 31 of 35\n\n\n\n\nappear under a particular caption. Order at 44. The SAC\u2019s allegations clearly and specifically\n\ndescribe a coordinated course of deceptive conduct: promoting a narrative of financial self-\n\nsufficiency while secretly pursuing Project Athena. Whether labeled as a separate count or\n\nintegrated into the Section 10(b) claim, the scheme is adequately pleaded.\n\n       Second, Defendants argue that scheme liability fails because scienter is not adequately\n\npleaded. Mot. at 25. As discussed above, the SAC adequately alleges scienter based on\n\nDefendants\u2019 direct knowledge of and participation in Project Athena. Because scienter is\n\nadequately pleaded, this argument provides no independent basis for dismissal. See supra, \u00a7 III(B).\n\n       Third, Defendants argue that contemplating a take-private or raising capital is not\n\n\u201cinherently deceptive.\u201d Mot. at 25. But the SAC does not allege that those acts, standing alone,\n\nwere deceptive. The deceptive conduct here was not merely \u201cexploring alternatives\u201d\u2014it was\n\npursuing a transaction specifically designed to eliminate shareholder value while simultaneously\n\ntelling those shareholders to hold. Project Athena\u2019s purpose was to transfer the business free of\n\nobligations to public shareholders\u2014obligations to the very investors Defendants were reassuring.\n\n\u00b6\u00b6 90-95. Defendants did not passively fail to disclose; they actively engaged advisors, approached\n\ndozens of investors, and engineered an exit for themselves while telling investors there was no\n\nneed to worry. That coordinated course of conduct, maintained over the course of a year, is the\n\nscheme. Defendants were not quietly planning for contingencies; they were working toward an\n\noutcome that would wipe out shareholder investment while publicly urging those shareholders to\n\nstay the course.\n\n       Defendants cite Alpha Cap. Anstalt v. Schwell Wimpfheimer & Assocs. LLP, 2018 WL\n\n1627266, at *11 (S.D.N.Y. Mar. 30, 2018), for the proposition that raising capital is not inherently\n\ndeceptive. Mot. at 25. But Alpha Capital involved a defendant who helped a company raise capital\n\n\n\n\n                                               -24-\n\f          Case 1:23-cv-10982-ER         Document 83        Filed 02/02/26      Page 32 of 35\n\n\n\n\nthrough private sales, and there was no allegation that the defendant simultaneously told investors\n\nthe company did not need capital. 2018 WL 1627266, at *11. Here, the deception is not the capital-\n\nraising itself; it is secretly pursuing capital-raising while publicly denying any need for it.\n\n          Defendants contend that Plaintiffs\u2019 scheme claim merely duplicates the misstatement and\n\nomission allegations. Courts in this Circuit reject that categorical approach. While scheme liability\n\ncannot rest solely on the same misstatements alleged under Rule 10b-5(b), it may be based on\n\n\u201cconduct beyond the misstatements themselves,\u201d including deceptive acts that further a fraudulent\n\ncourse of conduct. SEC v. Rio Tinto plc, 41 F.4th 47, 54\u201355 (2d Cir. 2022).\n\n          Thus, Plaintiffs\u2019 scheme liability claim is properly pleaded and should not be dismissed.\n\nD.        The SAC adequately pleads \u201cControl Person\u201d liability under Section 20(a).\n\n          Defendants do not dispute their status as \u201cControl Persons\u201d over Farfetch. Instead, they\n\nmove to dismiss Plaintiffs\u2019 Section 20(a) claim on the ground that the SAC fails to allege a primary\n\nviolation or culpable participation. Mot. at 25. As set forth above, because the SAC adequately\n\nalleges primary violations of Section 10(b), Defendants\u2019 motion to dismiss the Section 20(a) claim\n\nshould be denied. See Special Situations Fund III QP, L.P. v. Deloitte Touche Tohmatsu CPA,\n\nLtd., 33 F.Supp.3d 401, 437 (S.D.N.Y. 2014).\n\n                                       IV.     CONCLUSION\n\n          For the foregoing reasons, Defendants\u2019 Motion should be denied in its entirety. 10\n\n\n\n\n     10\n     Alternatively, if the Court grants Defendants\u2019 Motion in whole or in part, Plaintiffs\nrespectfully request leave to amend the pleadings. See Loreley Fin. (Jersey) No. 3 Ltd. v. Wells\nFargo Sec., LLC, 797 F.3d 160, 189-90 (2nd Cir. 2015).\n\n\n\n\n                                                 -25-\n\f      Case 1:23-cv-10982-ER   Document 83    Filed 02/02/26     Page 33 of 35\n\n\n\n\nDated: February 2, 2026            Respectfully submitted,\n\n                                   HAGENS BERMAN SOBOL SHAPIRO LLP\n\n                                   /s/ Lucas E. Gilmore                        .\n                                   Lucas E. Gilmore (admitted pro hac vice)\n                                   Reed R. Kathrein (pro hac vice forthcoming)\n                                   715 Hearst Avenue, Suite 300\n                                   Berkeley, CA 94710\n                                   Telephone: (510) 725-3000\n                                   Facsimile: (510) 725-3001\n                                   lucasg@hbsslaw.com\n                                   reed@hbsslaw.com\n\n                                   Nathan Emmons (admitted pro hac vice)\n                                   HAGENS BERMAN SOBOL SHAPIRO LLP\n                                   455 North Cityfront Plaza Drive, Suite 2410\n                                   Chicago, IL 60611\n                                   Telephone: (708) 628-4957\n                                   Facsimile: (708) 628-4950\n                                   nathane@hbsslaw.com\n\n                                   Counsel for Co-Lead Plaintiff Yuanzhe Fu and\n                                   Co-Lead Counsel for the Class\n\n                                   Adam M. Apton\n                                   LEVI & KORSINSKY, LLP\n                                   33 Whitehall Street, 17th Floor\n                                   New York, NY 10004\n                                   Telephone: (212) 363-7500\n                                   Facsimile: (212) 363-7171\n                                   aapton@zlk.com\n\n                                   Counsel for Co-Lead Plaintiff Fernando Sulichin\n                                   and Co-Lead Counsel for the Class\n\n\n\n\n                                    -26-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26       Page 34 of 35\n\n\n\n\n                      WORD COUNT COMPLIANCE CERTIFICATE\n\n       I, Lucas E. Gilmore, certify that this brief complies with Local Civil Rule 7.1(c).\n\n       I further certify that, in preparation of this brief, I used Microsoft Word, and that this word\n\nprocessing program has been applied specifically to include all text, including headings, footnotes,\n\nand quotations in the following word court.\n\n       I further certify that the above-referenced brief contains 7,542 words.\n\n                                                       /s/    Lucas E. Gilmore\n                                                       Lucas E. Gilmore\n\n\n\n\n                                                -27-\n\f       Case 1:23-cv-10982-ER          Document 83        Filed 02/02/26      Page 35 of 35\n\n\n\n\n                                 CERTIFICATE OF SERVICE\n\n       I hereby certify that this document filed through the CM/ECF system will be sent\n\nelectronically to the registered participants as identified on the Notice of Electronic Filing (NEF).\n\n       Dated: February 2, 2026                         /s/    Lucas E. Gilmore\n                                                       Lucas E. Gilmore\n\n\n\n\n                                                -28-\n\f","ocr_status":2,"date_upload":"2026-06-22T23:27:17.480304-07:00","document_number":"83","attachment_number":null,"pacer_doc_id":"127038998943","is_available":true,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Response in Opposition to Motion","acms_document_guid":""}],"date_created":"2026-02-02T19:08:38.451795-08:00","date_modified":"2026-10-20T06:53:42.180436-07:00","date_filed":"2026-02-02","time_filed":"20:15:39","entry_number":83,"recap_sequence_number":"2026-02-02.001","pacer_sequence_number":287,"description":"RESPONSE in Opposition to Motion re: 79 MOTION to Dismiss the Second Amended Class Action Complaint. . Document filed by Yuanzhe Fu..(Gilmore, Lucas) (Entered: 02/02/2026)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/447710813/","id":447710813,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/462469736/","id":462469736,"tags":[],"absolute_url":"/docket/68102459/79/in-re-farfetch-limited-securities-litigation/","date_created":"2025-12-18T15:10:45.168368-08:00","date_modified":"2026-02-21T08:27:34.006504-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"79","attachment_number":null,"pacer_doc_id":"127038760531","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Motion to Dismiss","acms_document_guid":""}],"date_created":"2025-12-18T15:10:45.114295-08:00","date_modified":"2026-10-20T06:53:42.132424-07:00","date_filed":"2025-12-18","time_filed":"16:50:08","entry_number":79,"recap_sequence_number":"2025-12-18.001","pacer_sequence_number":277,"description":"MOTION to Dismiss the Second Amended Class Action Complaint. Document filed by Elliot Jordan, Jose Neves, Stephanie Phair..(Hammel, Jeff) (Entered: 12/18/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/447710768/","id":447710768,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/462469691/","id":462469691,"tags":[],"absolute_url":"/docket/68102459/80/in-re-farfetch-limited-securities-litigation/","date_created":"2025-12-18T15:10:31.640406-08:00","date_modified":"2026-02-21T08:27:34.042536-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"80","attachment_number":null,"pacer_doc_id":"127038760689","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Memorandum of Law in Support of Motion","acms_document_guid":""}],"date_created":"2025-12-18T15:10:31.588272-08:00","date_modified":"2026-10-20T06:53:42.144798-07:00","date_filed":"2025-12-18","time_filed":"16:59:22","entry_number":80,"recap_sequence_number":"2025-12-18.002","pacer_sequence_number":279,"description":"MEMORANDUM OF LAW in Support re: 79 MOTION to Dismiss the Second Amended Class Action Complaint. . Document filed by Elliot Jordan, Jose Neves, Stephanie Phair. (Attachments: # 1 Appendix A).(Hammel, Jeff) (Entered: 12/18/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/447710637/","id":447710637,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/462469560/","id":462469560,"tags":[],"absolute_url":"/docket/68102459/81/in-re-farfetch-limited-securities-litigation/","date_created":"2025-12-18T15:09:51.023303-08:00","date_modified":"2026-02-21T08:27:34.080338-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"81","attachment_number":null,"pacer_doc_id":"127038761279","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Declaration in Support of Motion","acms_document_guid":""}],"date_created":"2025-12-18T15:09:50.976454-08:00","date_modified":"2026-10-20T06:53:42.157321-07:00","date_filed":"2025-12-18","time_filed":"17:25:20","entry_number":81,"recap_sequence_number":"2025-12-18.003","pacer_sequence_number":282,"description":"DECLARATION of Jason C. Hegt in Support re: 79 MOTION to Dismiss the Second Amended Class Action Complaint.. Document filed by Elliot Jordan, Jose Neves, Stephanie Phair. (Attachments: # 1 Exhibit 1 - Second Amended Complaint, # 2 Exhibit 2 - Q4 2021 Earnings Call Tr., # 3 Exhibit 3 - 2021 Form 20-F, # 4 Exhibit 4 - Q1 2022 Earnings Call Tr., # 5 Exhibit 5 - Q1 2022 Earnings Release, # 6 Exhibit 6 - Q2 2022 Earnings Release, # 7 Exhibit 7 - Q3 2022 Earnings Call Tr., # 8 Exhibit 8 - Farfetch Analyst/Investor Day Tr., # 9 Exhibit 9 - Yahoo! Finance Stock Price Record, # 10 Exhibit 10 - Q4 2022 Earnings Call Tr., # 11 Exhibit 11 - Q4 2022 Earnings Release, # 12 Exhibit 12 - 2022 Form 20-F, # 13 Exhibit 13 - Morgan Stanley Conference Tr., # 14 Exhibit 14 - Bank of America Conference Tr., # 15 Exhibit 15 - Q1 2023 Earnings Call Tr., # 16 Exhibit 16 - Q1 2023 Earnings Release, # 17 Exhibit 17 - Q2 2023 Earnings Call Tr., # 18 Exhibit 18 - Q2 2023 Earnings Release, # 19 Exhibit 19 - Form 144 (S. Phair), # 20 Exhibit 20 - Form 144 (E. Jordan), # 21 Exhibit 21 - Press Release (December 18, 2023), # 22 Exhibit 22 - Form 13G (J. Neves), # 23 Exhibit 23 - Forbes Article, # 24 Exhibit 24 - Vanguard Think Tank Article, # 25 Exhibit 25 - Kirkland & Ellis Letter).(Hammel, Jeff) (Entered: 12/18/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/447710590/","id":447710590,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/462469513/","id":462469513,"tags":[],"absolute_url":"/docket/68102459/82/in-re-farfetch-limited-securities-litigation/","date_created":"2025-12-18T15:09:36.362569-08:00","date_modified":"2026-06-23T05:42:25.563750-07:00","sha1":"bd4704b00ef55a82ad1e12fd468f98a52e8073b1","page_count":1,"file_size":212431,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.82.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.82.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"        Case 1:23-cv-10982-ER         Document 82       Filed 12/18/25         Page 1 of 1\n                                                              1271 Avenue of the Americas\n                                                              New York, New York 10020-1401\n                                                              Tel: +1.212.906.1200 Fax: +1.212.751.4864\n                                                              www.lw.com\n\n                                                              FIRM / AFFILIATE OFFICES\n                                                              Austin         Milan\n                                                              Beijing        Munich\n                                                              Boston         New York\n                                                              Brussels       Orange County\n                                                              Chicago        Paris\nDecember 18, 2025                                             Dubai          Riyadh\n                                                              D\u00fcsseldorf     San Diego\n                                                              Frankfurt      San Francisco\nVIA ECF                                                       Hamburg        Seoul\n                                                              Hong Kong      Silicon Valley\nThe Honorable Edgardo Ramos                                   Houston        Singapore\n\nU.S. District Court for the Southern District of New York     London         Tel Aviv\n                                                              Los Angeles    Tokyo\nThurgood Marshall United States Courthouse                    Madrid         Washington, D.C.\n40 Foley Square\nNew York, New York 10007\n\n       Re:    In re Farfetch Limited Sec. Litig., Case No. 1:23-cv-10982-ER-KHP\n\nDear Judge Ramos:\n\n        On behalf of Defendants Jos\u00e9 Neves, Elliot Jordan, and Stephanie Phair (the \u201cIndividual\nDefendants\u201d), we write pursuant to Rule 2.D of Your Honor\u2019s Individual Practices to request that\noral argument be held with respect to the Individual Defendants\u2019 Motion to Dismiss the Second\nAmended Class Action Complaint. Thank you for your consideration of this request.\n\n                                                   Respectfully submitted,\n\n                                                   /s/ Jeff G. Hammel\n                                                   Jeff G. Hammel\n                                                   of LATHAM & WATKINS LLP\n\n\nCC: All Counsel of Record (via ECF)\n\f","ocr_status":2,"date_upload":"2026-06-22T23:27:17.917661-07:00","document_number":"82","attachment_number":null,"pacer_doc_id":"127038761470","is_available":true,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Motion for Oral Argument","acms_document_guid":""}],"date_created":"2025-12-18T15:09:36.314196-08:00","date_modified":"2026-10-20T06:53:42.168119-07:00","date_filed":"2025-12-18","time_filed":"17:35:05","entry_number":82,"recap_sequence_number":"2025-12-18.004","pacer_sequence_number":285,"description":"LETTER MOTION for Oral Argument addressed to Judge Edgardo Ramos from Jeff G. Hammel dated December 18, 2025. Document filed by Elliot Jordan, Jose Neves, Stephanie Phair..(Hammel, Jeff) (Entered: 12/18/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/443011939/","id":443011939,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/457637958/","id":457637958,"tags":[],"absolute_url":"/docket/68102459/78/in-re-farfetch-limited-securities-litigation/","date_created":"2025-11-03T19:08:41.256759-08:00","date_modified":"2026-02-21T08:27:33.973077-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"78","attachment_number":null,"pacer_doc_id":"127038496539","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Amended Complaint","acms_document_guid":""}],"date_created":"2025-11-03T19:08:41.223251-08:00","date_modified":"2026-10-20T06:53:42.118231-07:00","date_filed":"2025-11-03","time_filed":"20:31:19","entry_number":78,"recap_sequence_number":"2025-11-03.001","pacer_sequence_number":274,"description":"SECOND AMENDED COMPLAINT amending 34 Amended Complaint, against FF Realisations plc, Farfetch Limited, Elliot Jordan, Jose Neves, Stephanie Phair with JURY DEMAND.Document filed by Fernando Sulichin, Yuanzhe Fu. Related document: 34 Amended Complaint,..(Apton, Adam) (Entered: 11/03/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/441079058/","id":441079058,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/455651539/","id":455651539,"tags":[],"absolute_url":"/docket/68102459/77/in-re-farfetch-limited-securities-litigation/","date_created":"2025-10-16T08:10:53.632493-07:00","date_modified":"2026-02-21T08:27:33.938609-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"77","attachment_number":null,"pacer_doc_id":"127038387073","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Stipulation and Order","acms_document_guid":""}],"date_created":"2025-10-16T08:10:53.597977-07:00","date_modified":"2026-10-20T06:53:42.102644-07:00","date_filed":"2025-10-15","time_filed":null,"entry_number":77,"recap_sequence_number":"2025-10-15.002","pacer_sequence_number":271,"description":"STIPULATION AND ORDER REGARDING SCHEDULING: NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED, and respectfully requested, by and among the Parties and subject to the approval of the Court, as follows: 1. Co-Lead Plaintiffs shall file a Second Amended Consolidated Complaint on or before November 3, 2025; 2. With the Court's permission, the Parties will proceed directly to briefing on Defendants' motion to dismiss the Second Amended Consolidated Complaint rather than submission of pre-motion letters; 3. Defendants shall file their motion to dismiss on or before December 18, 2025;4. Co-Lead Plaintiffs shall have until February 2, 2026, to file any opposition to any such motion; and 5. Defendants shall have until February 23, 2026, to file any reply brief in further support of their motion to dismiss. SO ORDERED. ( Amended Pleadings due by 11/3/2025., Motions due by 12/18/2025., Replies due by 2/23/2026., Responses due by 2/2/2026) (Signed by Judge Edgardo Ramos on 10/15/2025) Filed In Associated Cases: 1:23-cv-10982-ER, 1:24-cv-00532-ER (sgz) (Entered: 10/16/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/441014327/","id":441014327,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/455585264/","id":455585264,"tags":[],"absolute_url":"/docket/68102459/76/in-re-farfetch-limited-securities-litigation/","date_created":"2025-10-15T14:08:16.370519-07:00","date_modified":"2026-02-21T08:27:33.856701-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"76","attachment_number":null,"pacer_doc_id":"127038384712","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Proposed Stipulation and Order","acms_document_guid":""}],"date_created":"2025-10-15T14:08:16.333597-07:00","date_modified":"2026-10-20T06:53:42.088711-07:00","date_filed":"2025-10-15","time_filed":"16:53:58","entry_number":76,"recap_sequence_number":"2025-10-15.001","pacer_sequence_number":269,"description":"PROPOSED STIPULATION AND ORDER. Document filed by Elliot Jordan, Jose Neves, Stephanie Phair..(Hegt, Jason) (Entered: 10/15/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/440632218/","id":440632218,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/455192994/","id":455192994,"tags":[],"absolute_url":"/docket/68102459/74/in-re-farfetch-limited-securities-litigation/","date_created":"2025-10-10T14:12:32.090555-07:00","date_modified":"2026-02-21T08:27:33.789526-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"74","attachment_number":null,"pacer_doc_id":"127038363895","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Motion for Extension of Time to Amend","acms_document_guid":""}],"date_created":"2025-10-10T14:12:32.020070-07:00","date_modified":"2026-10-20T06:53:42.059906-07:00","date_filed":"2025-10-10","time_filed":"15:36:06","entry_number":74,"recap_sequence_number":"2025-10-10.001","pacer_sequence_number":264,"description":"CONSENT LETTER MOTION for Extension of Time to Amend from October 21, 2025 to November 3, 2025 addressed to Judge Edgardo Ramos from Adam M. Apton dated October 10, 2025. Document filed by Fernando Sulichin..(Apton, Adam) (Entered: 10/10/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/440631743/","id":440631743,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/455192510/","id":455192510,"tags":[],"absolute_url":"/docket/68102459/75/in-re-farfetch-limited-securities-litigation/","date_created":"2025-10-10T14:09:53.984636-07:00","date_modified":"2026-02-21T08:27:33.823243-08:00","sha1":"","page_count":null,"file_size":null,"filepath_local":null,"filepath_ia":"","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"","ocr_status":null,"date_upload":null,"document_number":"75","attachment_number":null,"pacer_doc_id":"127038365222","is_available":false,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Order on Motion for Extension of Time to Amend","acms_document_guid":""}],"date_created":"2025-10-10T14:09:53.901162-07:00","date_modified":"2026-10-20T06:53:42.075082-07:00","date_filed":"2025-10-10","time_filed":"17:00:35","entry_number":75,"recap_sequence_number":"2025-10-10.002","pacer_sequence_number":266,"description":"ORDER granting 74 Letter Motion for Extension of Time to Amend 34 Amended Complaint. The request is granted. The deadline to file a Second Consolidated Amended Complaint is November 23, 2025. SO ORDERED. Amended Pleadings due by 11/23/2025.. (Signed by Judge Edgardo Ramos on 10/10/2025) (jjc) (Entered: 10/10/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/439461644/","id":439461644,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/453990127/","id":453990127,"tags":[],"absolute_url":"/docket/68102459/73/in-re-farfetch-limited-securities-litigation/","date_created":"2025-09-30T14:12:50.447657-07:00","date_modified":"2026-02-21T08:27:33.743895-08:00","sha1":"9a247bf14ccab4746c31b1976c1a98d46680e355","page_count":46,"file_size":551997,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.73.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.73.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"      Case 1:23-cv-10982-ER             Document 73             Filed 09/30/25      Page 1 of 46\n\n\n\n\nUNITED STATES DISTRICT COURT\nSOUTHERN DISTRICT OF NEW YORK\n\n                                                                  OPINION & ORDER\n    IN RE FARFETCH LIMITED                                               23-cv-10982 (ER)\n    SECURITIES LITIGATION\n\n\n\n\nRAMOS, D.J.:\n\n          Co-/HDG 3ODLQWL\u0d75V )HUQDQGR 6XOLFKLQ DQG <XDQ]KH )X FROOHFWLYHO\\\u000f \u00b33ODLQWL\u0d75V\u00b4\n\nEULQJ WKLV SXWDWLYH FODVV DFWLRQ DJDLQVW )DUIHWFK /LPLWHG \u00b3)DUIHWFK\u00b4 RU WKH \u00b3&RPSDQ\\\u00b4)\n\nand LWV GLUHFW VXEVLGLDU\\ )) 5HDOLVDWLRQV SOF I\u0012N\u0012D )DUIHWFK +ROGLQJV SOF \u00b3))\n\n+ROGLQJV\u00b4 , and LQGLYLGXDOV -RVp 0DQXHO )HUUHLUD 1HYHV \u00b31HYHV\u00b4 , (OOLRW *LOEHUW -RUGDQ\n\n    \u00b3-RUGDQ\u00b4 , and 6WHSKDQLH 1DGLQH 3KDLU .RRLM \u00b33KDLU\u00b4 FROOHFWLYHO\\\u000f \u00b3'HIHQGDQWV\u00b4 ,\n\nDOOHJLQJ YLRODWLRQV RI 6HFWLRQ \u0014\u0013 E DQG \u0015\u0013 D RI WKH 6HFXULWLHV ([FKDQJH $FW, and\n\n6HFXULWLHV DQG ([FKDQJH &RPPLVVLRQ (\u201cSEC\u00b4 5XOH \u0014\u0013E-5. 6SHFL\u00bfFDOO\\\u000f WKH\n\n&RQVROLGDWHG $PHQGHG &ODVV $FWLRQ &RPSODLQW \u00b3CAC\u00b4 1 DOOHJHV WKDW 'HIHQGDQWV PDGe\n                                                                    0F\n\n\n\n\nPDWHULDOO\\ IDOVH RU PLVOHDGLQJ VWDWHPHQWV\u000f RPLWWHG PDWHULDO KLVWRULFDO RU SUHVHQW IDFWV\u000f and\n\nGHFHLYHG LQYHVWRUV LQ RUGHU WR DUWL\u00bfFLDOO\\ LQ\u00c0DWH )DUIHWFK VWRFN SULFHV LQ YLRODWLRQ RI\n\nSection 10(b) and 10b-5\u000f DQG WKDW 1HYHV\u000f -RUGDQ\u000f DQG 3KDLU FROOHFWLYHO\\\u000f \u00b3,QGLYLGXDO\n\n'HIHQGDQWV\u00b4 ZHUH FRQWUROOLQJ SHUVRQV RI )DUIHWFK 2 DQG )) +ROGLQJV DQG violated Section\n                                                           1F\n\n\n\n\n20(a) and DUH FXOSDEOH SDUWLFLSDQWV LQ WKH DOOHJHG IUDXG. %HIRUH WKH FRXUW DUH WKH\n\n,QGLYLGXDO 'HIHQGDQWV\u00b6 PRWLRQ WR GLVPLVV WKH CAC\u000f 'RFV\u0011 \u0017\u0016 DQG \u0017\u001a\u0011 )RU WKH UHDVRQV VHW\n\nIRUWK EHORZ\u000f WKH PRWLRQ LV *5$17('.\n\n\n\n\n1\n 8QOHVV RWKHUZLVH QRWHG\u000f FLWDWLRQV WR \u00b3\u0088 B\u00b4 UHIHU WR WKH &RQVROLGDWHG $PHQGHG &ODVV $FWLRQ &RPSODLQW\u000f\n'RF\u0011 \u0016\u0017\u0011\n2\n %\\ an OUGHU RI WKH 8QLWHG 6WDWHV %DQNUXSWF\\ &RXUW IRU WKH 'LVWULFW RI 'HODZDUH GDWHG $XJXVW \u0018\u000f \u0015\u0013\u0015\u0017\u000f all\nSHQGLQJ DFWLRQV DJDLQVW )DUIHWFK DUH VWD\\HG\u0011\n\f     Case 1:23-cv-10982-ER              Document 73           Filed 09/30/25              Page 2 of 46\n\n\n\n\nI.      BACKGROUND\n        A. Factual Background\n\n        \u0e60H IROORZLQJ IDFWV DUH EDVHG RQ WKH DOOHJDWLRQV LQ WKH CAC\u000f ZKLFK WKH &RXUW\n\nDFFHSWV DV WUXH IRU SXUSRVHV RI WKH LQVWDQW PRWLRQV\u0011 See, e.g., Koch v. Christie\u2019s\n\nInternational PLC\u000f \u0019\u001c\u001c )\u0011\u0016G \u0014\u0017\u0014\u000f \u0014\u0017\u0018 \u0015G &LU\u0011 \u0015\u0013\u0014\u0015 \u0011\n\n        )DUIHWFK LV D SXEOLFO\\ WUDGHG WHFKQRORJ\\ FRPSDQ\\ IRXQGHG LQ \u0015\u0013\u0013\u001a WKDW VXSSRUWed\n\nWKLUG-SDUW\\ VDOHV RI OX[XU\\ JRRGV WR FRQVXPHUV ZRUOGZLGH YLD LWV GLJLWDO PDUNHWSODFH\n\nSODWIRUP. 3 \u0088\u0088 2, 8, 66. $W LWV LQFHSWLRQ\u000f )DUIHWFK GLG QRW VWRUH DQ\\ LQYHQWRU\\ DQG LQVWHDG\n           2F\n\n\n\n\nDOORZHG EUDQGV WR XVH LWV SODWIRUP DV D PDUNHWSODFH\u000f IDFLOLWDWLQJ VDOHV EHWZHHQ OX[XU\\\n\nERXWLTXHV DQG FXVWRPHUV WKHVH EUDQGV PD\\ QRW KDYH UHDFKHG RWKHUZLVH. \u0017 \u0088 66. )DUIHWFK3F\n\n\n\n\nFRQGXFWHG LWV EXVLQHVV DQG RSHUDWLRQV WKURXJK YDULRXV VXEVLGLDULHV\u000f LQFOXGLQJ FF\n\n+ROGLQJV\u0011 \u0088 3.\n\n        )DUIHWFK RSHUDWHG DV D SULYDWH FRPSDQ\\ IRU RYHU \u0014\u0013 \\HDUV EHIRUH ODXQFKLQJ LWV\n\nLQLWLDO SXEOLF R\u0d75HULQJ \u00b3,32\u00b4 LQ 6HSWHPEHU \u0015\u0013\u0014\u001b, ZLWK VKDUHV OLVWHG RQ WKH 1HZ <RUN\n\n6WRFN ([FKDQJH \u00b3NYSE\u00b4 . \u0088\u0088 8\u000f \u001a\u0013. 3ODLQWL\u0d75V DOOHJH WKDW )DUIHWFK ZDV VROG WR LQYHVWRUV\n\nDV D \u201cORZ-ULVN\u000f WKLUG-SDUW\\ H-FRPPHUFH IDVKLRQ SODWIRUP FDSLWDOL]LQJ RQ RUJDQLF JURZWK\n\nDQG H[WUHPHO\\ KLJK WDNH UDWHV\u0011\u00b4 \u0088 8. $V D UHVXOW\u000f 3ODLQWL\u0d75V DVVHUW WKDW )DUIHWFK DFKLHYHG D\n\n\u201cZLOGO\\ VXFFHVVIXO ,32 WKDW UDLVHG RYHU \u0007\u0014 ELOOLRQ DQG OHG WR DQ \u0007\u001b ELOOLRQ YDOXDWLRQ\u00b4 HYHQ\nWKRXJK WKH &RPSDQ\\ KDG QHYHU PDGH D SUR\u00bfW DQG KDG OHVV WKDQ \u0007\u0017\u0013\u0013 PLOOLRQ LQ UHYHQXH\n\nLQ \u0015\u0013\u0014\u001a\u0011 \u0088 \u001a\u0015\u0011 'HIHQGDQW 1HYHV IRXQGHG )DUIHWFK\u000f DQG\u000f DW DOO UHOHYDQW WLPHV\u000f VHUYHG DV\n\ncKLHI e[HFXWLYH o\u0d76FHU \u00b3&(2\u00b4 Dnd cKDLUPDQ RI WKH bRDUG. \u0088 \u0018\u0011 1HYHV DOVR VHUYHG DV D\n\nGLUHFWRU RI )) +ROGLQJV VWDUWLQJ LQ 1RYHPEHU \u0015\u0013\u0015\u0016\u0011 Id. 1HYHV\u000f E\\ YLUWXH RI KROGLQJ WKH\n\n\n\n\n3\n  \u0e60H CAC QRWHV WKDW WKH OX[XU\\ FORWKLQJ LQGXVWU\\ ZDV VORZ WR WDNH DGYDQWDJH RI WKH RSWLRQ WR VHOO FORWKHV\nRQOLQH DQG WKDW VRPH OX[XU\\ EUDQGV ZHUH UHOXFWDQW WR VHOO WKHLU SURGXFWV WKURXJK WKLUG-SDUW\\ ZHEVLWHV\u000f\nIHDULQJ WKDW WKHLU LPDJH ZRXOG EH GDPDJHG RU WKDW WKH WKLUG-SDUW\\ ZHEVLWHV ZRXOG GLVFRXQW SULFHV\u0011 \u0088 \u001a\u0019\u0011\n\u0017\n )DUIHWFK PDGH PRQH\\ E\\ WDNLQJ EHWZHHQ \u0016\u0013\b DQG \u0016\u0015\b LQ FRPPLVVLRQV IURP HDFK VDOH PDGH WKURXJK LWV\nZHEVLWH\u0011 \u0088 \u0019\u001b\u0011 \u0e60LV SHUFHQWDJH IURP HDFK VDOH LV NQRZQ DV D \u00b3WDNH UDWH\u00b4\u0011 Id.\n\n\n\n                                                     2\n\f       Case 1:23-cv-10982-ER             Document 73         Filed 09/30/25        Page 3 of 46\n\n\n\n\nPDMRULW\\ RI YRWLQJ ULJKWV LQ )DUIHWFK\u000f PDLQWDLQHG XOWLPDWH FRQWUROOLQJ DXWKRULW\\ RYHU WKH\n\n&RPSDQ\\\u0011 Id.\n\n           'HIHQGDQW -RUGDQ MRLQHG WKH )DUIHWFK WHDP LQ \u0015\u0013\u0014\u0018 DV cKLHI \u00bfnancial o\u0d76FHU\n\n    \u00b3&)2\u00b4 DQG VHUYHG LQ WKLV SRVLWLRQ XQWLO KLV GHSDUWXUH IURP WKH &RPSDQ\\ LQ \u0015\u0013\u0015\u0016\u0011 5 \u0088 6.     4F\n\n\n\n\n-RUGDQ DOVR VHUYHG DV RQH RI WKH WZR GLUHFWRUV DQG &)2 RI )) +ROGLQJV IURP 2FWREHU\n\n\u0015\u0013\u0014\u001c XQWLO KLV GHSDUWXUH LQ $XJXVW 2023. Id.\n\n           'HIHQGDQW 3KDLU MRLQHG )DUIHWFK LQ \u0015\u0013\u0014\u0019 DV cKLHI VWUDWHJ\\ o\u0d76FHU \u00b3&62\u00b4 \u000f ZDV\n\nSURPRWHG WR cKLHI cXVWRPHU o\u0d76FHU \u00b3&&2\u00b4 LQ \u0015\u0013\u0014\u001c\u000f DQG ODWHU DVVXPHG WKH UROH RI JURXS\n\nSUHVLGHQW LQ \u0015\u0013\u0015\u0015\u000f DQG cKDLU RI 1HZ *XDUGV *URXS \u00b31**\u00b4 LQ -XQH \u0015\u0013\u0015\u0016\u0011 \u0088 \u001a\u0011 3KDLU\n\nDOVR VHUYHG DV RQH RI WKH WZR GLUHFWRUV DQG &&2 RI )) +ROGLQJV EHJLQQLQJ LQ 2FWREHU\n\n2019. Id.\n\n           3ODLQWL\u0d75V DUH VKDUHKROGHUV WKDW SXUFKDVHG )DUIHWFK VHFXULWLHV EHWZHHQ )HEUXDU\\ \u0015\u0017\u000f\n\n\u0015\u0013\u0015\u0015 DQG 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016 WKH \u00b3&ODVV 3HULRG\u00b4 \u0011 \u0088\u0088 \u0017\u0015\u2013\u0017\u0016\u0011\n\n           3ODLQWL\u0d75V DOOHJH WKDW GXULQJ WKH &ODVV 3HULRG, WKH 'HIHQGDQWV \u201cLVVXHG D VHULHV RI\n\nSHUYDVLYH DQG PDWHULDO PLVVWDWHPHQWV DQG\u0012RU RPLWWHG PDWHULDO IDFWV QHFHVVDU\\ WR PDNH\n\nVWDWHPHQWV LVVXHG QRW PLVOHDGLQJ LQ OLJKW RI WKH FLUFXPVWDQFHV LQ ZKLFK WKH\\ ZHUH PDGH\u0011\u00b4\n\n\u0088 \u0015\u001b\u0017\u0011 3ODLQWL\u0d75V DOOHJH WKDW WKH 'HIHQGDQWV LJQRUHG LQWHUQDO JXLGDQFH UHJDUGLQJ LWV\n\nDFTXLVLWLRQV, EXVLQHVV PRGHO\u000f DQG LQWHUQDO FRQWUROV RYHU \u00bfQDQFLDO UHSRUWLQJ WR VHW\n\nXQUHDOLVWLF H[SHFWDWLRQV DERXW )DUIHWFK\u00b6V \u00bfQDQFLDO JURZWK\u0011 \u0088\u0088 \u0014\u0016\u001a\u000f \u0015\u001b\u0017. 6SHFL\u00bfFDOO\\\u000f\n\n3ODLQWL\u0d75V DOOHJH WKDW 'HIHQGDQWV \u00b3UHFNOHVVO\\ GLVUHJDUGHG FRQWUDU\\ LQWHUQDO JXLGDQFH DQG\n\nIRUHFDVWV WR VHW XQUHDOLVWLF SXEOLF H[SHFWDWLRQV RI FRQWLQXHG JURZWK\u000f UHDVVXUHG LQYHVWRUV RI\n\nWKH &RPSDQ\\\u00b6V OLTXLGLW\\ VWUHQJWK\u000f RSHUDWLQJ OHYHUDJH\u000f DQG PDLQWDLQHG QHDU-WHUP \u00bfVFDO\n\nWDUJHWV RI SUR\u00bfWDELOLW\\,\u00b4 PHDQLQJ WKDW WKH\\ GLG QRW DGMXVW WKHLU VKRUW-WHUP \u00bfQDQFLDO WDUJHWV\n\nWR UH\u00c0HFW SRVVLEOH QHJDWLYH FRQVHTXHQFHV\u0011 \u0088 159\u0011 3ODLQWL\u0d75V DOVR DOOHJH WKDW 'HIHQGDQWV\n\nIDLOHG WR UHPHGLDWH NQRZQ PDWHULDO ZHDNQHVVHV in )DUIHWFK\u00b6V LQWHUQDO FRQWUROV RYHU\n\n\n5\n    -RUGDQ\u00b6V GHSDUWXUH ZDV DQQRXQFHG RQ )HEUXDU\\ \u0015\u0016\u000f \u0015\u0013\u0015\u0016 DQG EHFDPH H\u0d75HFWLYH RQ $XJXVW \u0016\u0014\u000f \u0015\u0013\u0015\u0016\u0011\n\n\n\n                                                    3\n\f    Case 1:23-cv-10982-ER               Document 73           Filed 09/30/25           Page 4 of 46\n\n\n\n\n\u00bfQDQFLDO UHSRUWLQJ\u000f OHDGLQJ WR DQ DUWL\u00bfFLDO VSLNH LQ )DUIHWFK\u00b6V VWRFN SULFH. \u0088\u0088 198\u000f \u0015\u001b\u0017.\n\n\u0e60H CAC DOOHJHV WKDW ZKHQ WKH WUXWK HPHUJHG YLD FRUUHFWLYH GLVFORVXUHV WKDW GLVVLSDWHG\n\ntKH DUWL\u00bfFLDO LQ\u00c0DWLRQ\u000f WKH VWRFN SULFH GRSSHG\u000f FDXVLQJ VLJQL\u00bfFDQW GDPDJHV WR 3ODLQWL\u0d75V\n\nand WKH &ODVV\u0011 \u0088 \u0015\u001b\u0017\u0011\n\n        \u0e60H CAC DOOHJHV WKDW\u000f LQ \u0015\u0013\u0014\u001b\u000f )DUIHWFK ZDV VWUXJJOLQJ WR JHQHUDWH UHYHQXH\n\nWKURXJK WKLUG-SDUW\\ VDOHV DQG XVHU HQJDJHPHQW GXH WR WKH UHIXVDO RI OX[XU\\ EUDQGV to\n\nH[SDQG LQWR H-FRPPHUFH\u0011 \u0088 10. To FXUE WKH H\u0d75HFWV RI WKLV SUREOHP\u000f )DUIHWFK H[HFXWHG a\n\nVHULHV RI FRVWO\\ DFTXLVLWLRQV RI \u00bfUVW-SDUW\\ UHWDLOHUV\u000f RSHUDWLQJ LQGHSHQGHQW H-FRPPHUFH\n\nZHEVLWHV, DQG EULFN-and-PRUWDU VWRUHIURQWV. \u0088\u0088 11\u000f \u001a\u001a. In a VSDQ RI OHVV WKDQ one \\HDU\u000f\n\n)DUIHWFK DOOHJHGO\\ VSHQW KXQGUHGV RI PLOOLRQV RI GROODUV DFTXLULQJ WKUHH FRPSDQLHV\u001d\n\n6WDGLXP *RRGV 6 RQ 'HFHPEHU \u0014\u0015\u000f \u0015\u0013\u0014\u001b IRU \u0007\u0015\u0018\u0013 PLOOLRQ; 7RSOLIH \u001a RQ )HEUXDU\\ \u0015\u001b\u000f \u0015\u0013\u0014\u001c\n                  5F                                                         6F\n\n\n\n\nIRU \u0007\u0018\u0013 PLOOLRQ; DQG WKH NGG RQ $XJXVW \u001b\u000f \u0015\u0013\u0014\u001c IRU \u0007\u0019\u001a\u0018 PLOOLRQ. 8 \u0088\u0088 11\u000f \u001a\u001b\u201381.  7F\n\n\n\n\n3ODLQWL\u0d75V DVVHUW WKDW 'HIHQGDQWV MXVWL\u00bfHG WKHVH DFTXLVLWLRQV DV DQ H[SDQVLRQ RI LWV\n\nFDSDELOLWLHV WR LQFOXGH GHVLJQ\u000f SURGXFWLRQ\u000f DQG EUDQG GHYHORSPHQW. \u0088 15.\n\n        3ODLQWL\u0d75V DOOHJH WKDW GHVSLWH WKH 'HIHQGDQWV\u00b6 MXVWL\u00bfFDWLRQV\u000f LQGXVWU\\ H[SHUWV ZHUH\n\nVNHSWLFDO RI WKH 1** DFTXLVLWLRQ\u000f ZKLFK UHVXOWHG LQ )DUIHWFK VWRFN SULFH GURSSLQJ RYHU\n\n\u0017\u0018\b LQ D VLQJOH WUDGLQJ GD\\\u0011 \u0088 13. 3ODLQWL\u0d75V DOVR DOOHJH WKDW, aFFRUGLQJ WR )RUPHU\n\n(PSOR\\HH \u0006\u0016 \u00b3)(\u0016\u00b4 , 9 )DUIHWFK PDGH RQO\\ DSSUR[LPDWHO\\ \u0007\u0014 PLOOLRQ LQ VDOHV RQH \\HDU\n                          8F\n\n\n\n\nDIWHU DFTXLULQJ 7RSOLIH\u000f OHDGLQJ WR WKH WHUPLQDWLRQ RI an DJUHHPHQW WKDW )DUIHWFK ZRXOG\n\n\n\n6\n 6WDGLXP *RRGV LV D VQHDNHU DQG VWUHHWZHDU PDUNHWSODFH VSHFLDOL]LQJ LQ QHZ DQG GHDGVWRFN EUDQG QHZ\u000f\nQHYHU EHHQ ZRUQ\u000f VHFRQG-KDQG SURGXFWV\u0011 \u0088 \u001a\u001b\u0011 $FFRUGLQJ WR )RUPHU (PSOR\\HH \u0006\u0014 \u00b3)(\u0014\u00b4 \u000f 6WDGLXP\n*RRGV PDLQWDLQHG LWV RZQ VHSDUDWH SODWIRUP IRU FRQVLJQHUV DQG EUDQGV WR OLVW WKHLU JRRGV IRU VDOH DIWHU\n)DUIHWFK DFTXLUHG LW\u0011 \u0088 \u0018\u0018\u0011 )(\u0014 ZRUNHG DW )DUIHWFK IURP 0D\\ \u0015\u0013\u0015\u0014 WR 6HSWHPEHU \u0015\u0013\u0015\u0015 DV dLUHFWRU RI\nH&RPPHUFH DQG Vite PHUFKDQGLVLQJ IRU 6WDGLXP *RRGV\u0011 \u0088 \u0018\u0017\u0011\n\u001a\n 7RSOLIH LV D OX[XU\\ H-FRPPHUFH SODWIRUP RSHUDWLQJ LQ WKH &KLQHVH PDUNHW DQG RZQHG E\\ D WKHQ-H[LVWLQJ\nSDUWQHU -'\u0011FRP\u0011 \u0088 \u001a\u001c\u0011\n8\n 1** LV D OX[XU\\ IDVKLRQ KRXVH HQFRPSDVVLQJ VHYHUDO EUDQGV\u00b6 GHVLJQ\u000f SURGXFWLRQ\u000f \u00bfUVW-SDUW\\ VDOHV\u000f DQG\nGLVWULEXWLRQ\u0011 \u0088 81.\n9\n )(\u0016 ZRUNHG LQ GLJLWDO PDUNHWLQJ DW )DUIHWFK IURP 0DUFK \u0015\u0013\u0014\u001b WR $XJXVW \u0015\u0013\u0015\u0015\u000f DQG )DUIHWFK\u00b6V VXEVLGLDU\\\u000f\n1**\u000f IURP )HEUXDU\\ \u0015\u0013\u0015\u0016 WR -XO\\ \u0015\u0013\u0015\u0016\u0011 \u0088 \u0018\u001b\u0011\n\n\n\n                                                    \u0017\n\f    Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 5 of 46\n\n\n\n\nJLYH -'\u0011FRP a 30\b FRPPLVVLRQ RQ HYHU\\ VDOH PDGH E\\ UHGLUHFWLQJ FXVWRPHUV IURP\n\n-'\u0011FRP WR )DUIHWFK\u0011 \u0088\u0088 \u001a\u001c\u201380.\n\n       )ROORZLQJ WKHVH DFTXLVLWLRQV )DUIHWFK UHRUJDQL]HG LQWR WKUHH VHSDUDWH VHJPHQWV\u001d\n\n\u0014 'LJLWDO 3ODWIRUP\u2014PRVWO\\ FRPSULVHG RI \u00bfUVW-SDUW\\ DQG WKLUG-SDUW\\ WUDQVDFWLRQV\n\nEHWZHHQ VHOOHUV\u000f LQFOXGLQJ )DUIHWFK VXEVLGLDULHV\u000f DQG FRQVXPHUV FRQGXFWHG RQ WKH\n\n)DUIHWFK\u00b6V WHFKQRORJ\\ SODWIRUPV\u001e \u0015 %UDQG 3ODWIRUP\u2014FRPSULVHG RI SURGXFWLRQ DQG\n\nZKROHVDOH GLVWULEXWLRQ RI EUDQGV RZQHG DQG OLFHQVHG E\\ 1**\u000f DQG LQFOXGHV IUDQFKLVHG\n\nVWRUH RSHUDWLRQV\u001e DQG \u0016 ,Q-6WRUH\u2014FRPSULVHG RI WKH WUDQVDFWLRQV FRQGXFWHG LQ WKH\n\nSK\\VLFDO VWRUHV RSHUDtHG E\\ WKH &RPSDQ\\\u00b6V YDULRXV VXEVLGLDULHV DQG FHUWDLQ EUDQGV LQ WKH\n\n1** SRUWIROLR\u0011 \u0088\u0088 12, 82\u201383.\n\n       3ODLQWL\u0d75V DOOHJH WKDW )DUIHWFK IDLOHG WR VXFFHVVIXOO\\ LQWHJUDWH WKHVH QHZ EXVLQHVVHV\n\nLQWR WKH &RPSDQ\\\u00b6V H[LVWLQJ SODWIRUP DQG WR HQVXUH WKDW WKH IXWXUH FDVK QHHGV RI WKHVH\n\nDFTXLVLWLRQV ZRXOG QRW KDYH D QHJDWLYH LPSDFW RQ WKH &RPSDQ\\\u00b6V RYHUDOO \u00bfQDQFLDO KHDOWK\u0011\n\n\u0088\u0088 15, 89. 6WDGLXP *RRGV DQG 1** FRQWLQXHG WR RSHUDWH DV VWDQGDORQH EUDQGV RQ WKH\n\n)DUIHWFK SODWIRUP ZKLOH DOVR PDLQWDLQLQJ WKHLU RZQ H-FRPPHUFH ZHEVLWHV\u000f SODWIRUPV\u000f DQG\n\nEULFN-and-PRUWDU VWRUHIURQWV OHG E\\ WKHLU UHVSHFWLYH PDQDJHPHQW WHDPV ZKR KDG DFFHVV WR\n\n)DUIHWFK\u00b6V FDVK. \u0088\u0088 16, 90. 3ODLQWL\u0d75V DOOHJH WKDW )DUIHWFK\u00b6V IDLOXUH WR LQWHJUDWH WKHVH\n\nDFTXLVLWLRQV FUHDWHG DQ \u00b3XQZRUNDEOH FRUSRUDWH HQYLURQPHQW,\u00b4 DV ZHOO DV \u00b3FRPSDQ\\-ZLGH\n\nLQH\u0d76FLHQFLHV\u000f XQSUHFHGHQWHG RSHUDWLQJ FRVWV\u000f DQG VLJQL\u00bfFDQW SUHVVXUHV RQ FDVK \u00c0RZ\u0011\u00b4 \u0088\n\n\u0014\u001a\u0011 $GGLWLRQDOO\\\u000f 3ODLQWL\u0d75V DVVHUW WKDW )DUIHWFK VX\u0d75HUHG IURP ZHDNQHVVHV LQ LWV LQWHUQDO\n\nFRQWUROV RYHU \u00bfQDQFLDO UHSRUWLQJ\u000f SDUWLFXODUO\\ ZLWK 1**\u000f ZKLFK OHd WR LQDFFXUDWH DQG\u0012RU\n\nRYHUVWDWHG UHYHQXH\u000f JURVV PHUFKDQGLVH vDOXH \u00b3*09\u00b4 \u000f UHFHLYDEOHV\u000f FRVWO\\ LQYHQWRU\\\n\nVWRFNSLOHV\u000f DQG GXSOLFDWLYH RSHUDWLQJ H[SHQVHV\u0011 \u0088\u0088 \u0014\u001b, 88.\n\n       3ODLQWL\u0d75V DOOHJH WKDW WKLV PLVPDQDJHPHQW UHVXOWHG LQ KHDY\\ PRQHWDU\\ ORVVHV\u0011\n\n:KHQ )DUIHWFK FRPSOHWHG LWV ,32\u000f LWV FDVK DQG FDVK HTXLYDOHQWV EDODQFH DPRXQWHG WR\n\nDSSUR[LPDWHO\\ \u0007\u0014\u000f\u0013\u0017\u0016\u000f\u0018\u0013\u0013\u000f\u0013\u0013\u0013 DV RI 6HSWHPEHU \u0016\u0013\u000f \u0015\u0013\u0014\u001b\u0011 \u0088 \u001c\u0017\u0011 $IWHU WKH 7RSOLIH DQG\n\n\n\n\n                                              5\n\f    Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 6 of 46\n\n\n\n\n1** DFTXLVLWLRQV\u000f )DUIHWFK\u00b6V FDVK DQG FDVK HTXLYDOHQWV EDODQFH GURSSHG WR\n\nDSSUR[LPDWHO\\ \u0007\u0016\u0015\u0015\u000f\u0017\u0013\u0013\u000f\u0013\u0013\u0013 DV RI 'HFHPEHU \u0016\u0014\u000f \u0015\u0013\u0014\u001c. \u0088 95.\n\n       3ODLQWL\u0d75V DOOHJH WKDW \u00b3WR HQVXUH DGHTXDWH \u00bfQDQFLDO \u00c0H[LELOLW\\ DQG OLTXLGLW\\ JRLQJ\n\nIRUZDUG\u000f\u00b4 )DUIHWFK VLJQHG D FRPPLWPHQW OHWWHU ZLWK -\u00113\u0011 0RUJDQ 6HFXULWLHV SOF IRU D \u00bc\u0016\u0013\u0013\n\nPLOOLRQ VHQLRU VHFXUHG ORDQ IDFLOLW\\ LQ FRQQHFWLRQ ZLWK WKH 1** DFTXLVLWLRQ LQ $XJXVW\n\n2019. \u0088 96. OQ -DQXDU\\ \u0016\u0013\u000f \u0015\u0013\u0015\u0013\u000f )DUIHWFK DQQRXQFHG WKDW LW KDG DJUHHG WR LVVXH\u000f YLD D\n\nSULYDWH SODFHPHQW\u000f \u0007\u0015\u0018\u0013 PLOOLRQ FRQYHUWLEOH VHQLRU QRWHV \u00b3)HEUXDU\\ \u0015\u0013\u0015\u0013 1RWHV\u00b4 WR\n\n\u00b3VXSSOHPHQW )DUIHWFK\u00b6V FXUUHQW OLTXLGLW\\ SRVLWLRQ\u0011\u00b4 \u0088 \u001c\u001a\u0011 2QFH WKH SULYDWH SODFHPHQW ZDV\n\nFRPSOHWHG\u000f )DUIHWFK FDQFHOHG WKH VHFXUHG ORDQ IDFLOLW\\ ZLWK -\u00113\u0011 0RUJDQ\u0011 \u0088 \u001c\u001a\u0011\n\n       \u0e60H CAC DOOHJHV WKDW\u000f EHJLQQLQJ LQ \u0015\u0013\u0015\u0013\u000f WKH &29,'-\u0014\u001c SDQGHPLF and WKH VSLNH\n\nin RQOLQH VKRSSLQJ \u201cFRQYHQLHQWO\\\u00b4 PDVNHG WKH H[WHQW RI WKH QHJDWLYH LPSDFW RI WKHVH\n\nDFTXLVLWLRQV. \u0088 19. 'XULQJ WKH VHFRQG TXDUWHU RI \u0015\u0013\u0015\u0013\u000f )DUIHWFK SURFHVVHG D UHFRUG-\n\nEUHDNLQJ QXPEHU RI RQOLQH RUGHUV DQG DWWUDFWHG RYHU \u0018\u0013\u0013\u000f\u0013\u0013\u0013 QHZ FXVWRPHUV\u0011 \u0088 20.\n\n       ,Q WKH PLGVW RI WKH RQOLQH VDOH ERRP\u000f )DUIHWFK FORVHG VHYHUDO SULYDWH R\u0d75HULQJV\u0011 2Q\n\n$SULO \u0015\u0013\u000f \u0015\u0013\u0015\u0013\u000f )DUIHWFK FORVHG D SULYDWH R\u0d75HULQJ RI \u0007\u0017\u0013\u0013 PLOOLRQ LQ FRQYHUWLEOH VHQLRU\n\nQRWHV \u00b3$SULO \u0015\u0013\u0015\u0013 1RWHV\u00b4 . \u0088 98. \u0e60H ,QGHQWXUH EHWZHHQ WKH &RPSDQ\\ DQG :LOPLQJWRQ\n\n7UXVW\u000f 1DWLRQDO $VVRFLDWLRQ DV WKH WUXVWHH, VHW IRUWK FHUWDLQ W\\SHV RI EDQNUXSWF\\ RU\n\nLQVROYHQF\\ HYHQWV RI GHIDXOW DIWHU ZKLFK WKH $SULO \u0015\u0013\u0015\u0013 1RWHV ZRXOG DXWRPDWLFDOO\\\n\nEHFRPH GXH DQG SD\\DEOH. Id.\n\n       2Q 1RYHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0013\u000f )DUIHWFK FRPSOHWHG WKH SODFHPHQW RI FRQYHUWLEOH VHQLRU\n\nQRWHV WR $OLEDED *URXS +ROGLQJ /LPLWHG \u00b3$OLEDED\u00b4 DQG 5LFKHPRQW IRU WRWDO JURVV\n\nSURFHHGV RI \u0007\u0019\u0013\u0013 PLOOLRQ \u0007\u0016\u0013\u0013 PLOOLRQ HDFK \u00b31RYHPEHU \u0015\u0013\u0015\u0013 1RWHV\u00b4 . \u0088 99.\n\n       'XULQJ WKH \u00bfUVW KDOI RI \u0015\u0013\u0015\u0014\u000f )DUIHWFK DFKLHYHG UHFRUG VDOHV\u0011 \u0088 \u0015\u0014\u0011 ,Q IDFW\u000f\n\n)DUIHWFK\u000f LQ LWV 4\u0017 \u0015\u0013\u0015\u0014 (DUQLQJV &DOO\u000f UHSRUWHG LW DFKLHYHG D \u00b3VWURQJ JURZWK\u00b4 IRU WKDW\n\n\\HDU\u000f ZKLOH DOVR \u00b3VWD\\>LQJ@ GLVFLSOLQHG DV >LW@ QDYLJDWHG PDQ\\ H[WHUQDO KHDGZLQGV\u000f\n\nLQFOXGLQJ GLJLWDO VHUYLFHV WD[HV\u000f DQG WKH JUHDWHU-WKDQ-H[SHFWHG LPSDFW RI %UH[LW\u000f >DQG@\n\nLQ\u00c0DWLRQDU\\ SUHVVXUHV\u0011\u00b4 'RF\u0011 \u0017\u0018-3 at 5.\n\n\n                                             6\n\f       Case 1:23-cv-10982-ER              Document 73           Filed 09/30/25          Page 7 of 46\n\n\n\n\n           $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f WKHUH ZHUH VHYHUDO QRWDEOH LQYHVWPHQWV LQ )DUIHWFK GXULQJ\n\nWKLV WLPH\u000f VR WKDW )DUIHWFK\u00b6V FDVK DQG FDVK HTXLYDOHQWV EDODQFH DPRXQWHG WR DSSUR[LPDWHO\\\n\n\u0007 \u0014\u000f\u0018\u001a\u0016\u000f\u0017\u0013\u0013\u000f\u0013\u0013\u0013 DV RI 'HFHPEHU \u0016\u0014\u000f \u0015\u0013\u0015\u0013. \u0088\u0088 101\u201302.\n\n           ,Q WKH VHFRQG KDOI RI \u0015\u0013\u0015\u0014\u000f )DUIHWFK VWUXJJOHG WR PDLQWDLQ LWV &29,'-19-level\n\nRQOLQH VKRSSLQJ UDWHV DV VKXWGRZQV OLIWHG LQ WKH 8\u00116\u0011 DQG &KLQD, LWV WZR ODUJHVW PDUNHWV.\n\n\u0088\u0088 21\u000f \u0014\u0015\u001a. 3ODLQWL\u0d75V DOOHJH WKDW )DUIHWFK\u00b6V JURZWK LQ WKH &KLQD PDUNHW DOVR VORZHG GRZQ\n\nEHFDXVH RI FRPSHWLWLRQ IURP &KLQHVH-RZQHG FRPSDQLHV DQG VWULFW JRYHUQPHQW\n\nUHJXODWLRQV LQ WKH UHJLRQ. 10 \u0088 128.\n                              9F\n\n\n\n\n           ,Q 1RYHPEHU \u0015\u0013\u0015\u0014\u000f 2\u0d75-:KLWH\u00b6V 11 FUHDWLYH GLUHFWRU 9LUJLO $EORK XQH[SHFWHGO\\\n                                                10F\n\n\n\n\nSDVVHG DZD\\, FDXVLQJ D PDMRU EORZ WR WKH EUDQG DQG UHVXOWLQJ LQ D ORVV RI VDOHV IRU 1**\u0011\n\n\u0088\u0088 21\u000f \u0014\u0017\u0017\u0011 3ODLQWL\u0d75V DOOHJH WKDW VLQFH EX\\HUV DVVRFLDWHG 2\u0d75-:KLWH GHVLJQV DQG $EORK,\n\nWKH 2\u0d75-:KLWH EUDQG H[SHULHQFHG D GHFUHDVH LQ VDOHV LQ WKH VL[ WR \u0014\u0015 PRQWKV DIWHU KLV\n\nGHDWK\u000f DQG )DUIHWFK KDG WR DFW TXLFNO\\ WR PLWLJDWH WKH ORVV RI VDOHV IURP WKH 2\u0d75-:KLWH\n\nEUDQG\u0011 \u0088\u0088 \u0014\u0017\u0017\u2013\u0017\u0018.\n\n           3ODLQWL\u0d75V DOVR DOOHJH WKDW SDQGHPLF VKXWGRZQV LQFUHDVHG GLUHFW-to-FRQVXPHU H-\n\nFRPPHUFH FRPSHWLWLRQ IURP WKH OX[XU\\ EUDQGV WKHPVHOYHV\u000f UHGXFLQJ )DUIHWFK\u00b6V H-\n\nFRPPHUFH PDUNHW VKDUH\u0011 \u0088 \u0015\u0016\u0011 $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f )DUIHWFK UHIXVHG WR UH-QHJRWLDWH\n\nXQIDYRUDEOH FRQWUDFW WHUPV ZLWK WKHVH OX[XU\\ EUDQGV\u000f UHVXOWLQJ LQ ORZHU SUR\u00bfW PDUJLQV\u0011\n\nId.\n\n           ,Q -DQXDU\\ \u0015\u0013\u0015\u0015\u000f )DUIHWFK DQQRXQFHG WKDW LW ZDV DFTXLULQJ 9LROHW *UH\\\u000f D OX[XU\\\n\nEHDXW\\ UHWDLOHU\u000f DKHDG RI WKH ODXQFK RI 1** %HDXW\\\u000f )DUIHWFK\u00b6V YHQWXUH LQWR WKH EHDXW\\\n\nVHFWRU. \u0088\u0088 \u0015\u001a\u201328. $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f 9LROHW *UH\\ ZDV DOUHDG\\ H[SHULHQFLQJ\n\n\u00b3VLJQL\u00bfFDQW \u00bfQDQFLDO KDUGVKLSV DQG GHFOLQLQJ JURZWK\u00b4 ZKHQ )DUIHWFK PDGH WKH GHFLVLRQ\n\n\n10\n  $FFRUGLQJ WR )(\u0016\u000f )DUIHWFK ZDV XQDEOH WR FRPSHWH DJDLQVW HVWDEOLVKHG &KLQHVH FRPSDQLHV WKDW EHQH\u00bfWHG\nIURP SURWHFWLRQLVW ODZV LQVWLWXWHG E\\ WKH &KLQHVH JRYHUQPHQW WR UHVWULFW RU OLPLW LQWHUQDWLRQDO WUDGH\u0011 \u0088 \u0014\u0015\u001b\u0011\n3ODLQWL\u0d75V DOOHJH WKDW )(\u0014 Vaid WKDW WKH IRUHFDVWV IRU \u0015\u0013\u0015\u0015 SUHSDUHG E\\ 6WDGLXP *RRGV VKRZHG WKH SODWIRUP\nZRXOG QRW VHH WKH VXFFHVV LW KDG LQ WKH SUHYLRXV \\HDU\u0011 \u0088 \u0014\u0015\u001c\u0011\n11\n     2\u0d75-:KLWH ZDV 1**\u00b6V WRS OX[XU\\ EUDQG. \u0088 21.\n\n\n\n                                                      \u001a\n\f     Case 1:23-cv-10982-ER               Document 73              Filed 09/30/25      Page 8 of 46\n\n\n\n\nWR DFTXLUH LW\u000f VR WKH DFTXLVLWLRQ FRXOG QRW SURSHO )DUIHWFK\u00b6V JURZWK JRDOV LQ WKH EHDXW\\\n\nVHFWRU\u0011 12 \u0088 32.\n       11F\n\n\n\n\n             \u0e60HQ\u000f LQ )HEUXDU\\ \u0015\u0013\u0015\u0015\u000f )DUIHWFK VWRSSHG DOO VDOHV WR LWV WKLUG ODUJHVW PDUNHW\u2014\n\n5XVVLD\u2014DV D UHVXOW RI WKH ZDU LQ 8NUDLQH\u0011 13 \u0088\u0088 \u0015\u0015\u000f \u0014\u0017\u0014\u0011 $W WKH VDPH WLPH\u000f )DUIHWFK\n                                                  12F\n\n\n\n\nGLVFORVHG D \u00b3IRUZDUG-ORRNLQJ\u00b4 RXWORRN SURMHFWLQJ \\HDU-RYHU-\\HDU JURZWK RI URXJKO\\ \u0015\u0013 WR\n\n30 SHUFHQW LQ *09\u000f EXW DOVR ZDUQHG LQYHVWRUV WKDW LW RSHUDWHG \u00b3LQ D YHU\\ FRPSHWLWLYH DQG\n\nUDSLGO\\ FKDQJLQJ HQYLURQPHQW\u000f\u00b4 DQG WKDW \u00b3>X@QFHUWDLQWLHV UHVXOWLQJ IURP WKH &29,'-19\n\nSDQGHPLF \u0011 \u0011 \u0011 FRXOG KDYH PDWHULDO LPSDFWV RQ >LWV@ IXWXUH SHUIRUPDQFH\u0011\u00b4 'RF\u0011 \u0017\u0018-\u0017 DW 10,\n\n23. )DUIHWFK H[SODLQHG WKDW LWV EXVLQHVV FRXOG EH D\u0d75HFWHG E\\ \u00b3ZHDNHQHG FRQVXPHU\n\nVHQWLPHQW DQG GLVFUHWLRQDU\\ LQFRPH >@ IURP YDULRXV PDFUR-HFRQRPLF FRQGLWLRQV\u00b4 DQG\n\n\u00b3VORZLQJ H-FRPPHUFH FRQVXPHU DFWLYLW\\ DV \u0011 \u0011 \u0011 SRSXODWLRQV UHVXPH WR SUH-SDQGHPLF\n\nDFWLYLWLHV DQG OLIHVW\\OHV\u0011\u00b4 Id. at 10.\n\n             TZR GD\\V EHIRUH WKH VWDUW RI WKH &ODVV 3HULRG\u000f RQ )HEUXDU\\ \u0015\u0015\u000f \u0015\u0013\u0015\u0015\u000f )DUIHWFK\n\nDQQRXQFHG 1**\u00b6V FRPPHUFLDO DJUHHPHQW ZLWK $XWKHQWLF %UDQGV *URXS //& RWKHUZLVH\n\nNQRZQ DV $GLGDV WR EHFRPH WKH H[FOXVLYH SDUWQHU WR FXUDWH\u000f FUHDWH DQG EULQJ WR PDUNHW\n\n5HHERN\u00b6V OX[XU\\ FROODERUDWLRQV\u0011 \u0088 \u0015\u001c\u0011 1** DOVR EHFDPH D FRUH RSHUDWLQJ SDUWQHU IRU\n\n$GLGDV DFURVV (XURSH\u000f DQG GLVWULEXWRU RI SUHPLXP 5HHERN SURGXFWV LQ WKH 8\u00116\u0011\u000f &DQDGD\u000f\n\n(XURSH DQG RWKHU NH\\ PDUNHWV\u0011 Id. $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f )DUIHWFK QHJOHFWHG WR FRQGXFW\n\nSURSHU GXH GLOLJHQFH RQ WKH 5HHERN GHDO\u000f UHVXOWLQJ LQ KLJKHU-WKDQ-H[SHFWHG FRVWV\u000f ORZ WR\n\nQHJDWLYH SUR\u00bfW PDUJLQV\u000f DQG XQVHOODEOH LQYHQWRU\\\u0011 \u0014\u0017 \u0088 32.  13F\n\n\n\n\n12\n  $FFRUGLQJ WR WKH C$&\u000f LQ $XJXVW \u0015\u0013\u0015\u0016\u000f )DUIHWFK DQQRXQFHG LWV GHFLVLRQ WR GLVFRQWLQXH 1** %HDXW\\ DQG\nVDLG LW ZDV \u00b3H[SORULQJ VWUDWHJLF RSWLRQV IRU 9LROHW *UH\\\u0011\u00b4 \u0088 \u0014\u0019\u001c\u0011 3ODLQWL\u0d75V DOOHJH WKDW UHSRUWV LQ 2FWREHU\n\u0015\u0013\u0015\u0016 FRQ\u00bfUPHG WKDW )DUIHWFK KDG SODFHG WKH EHDXW\\ EUDQG XS IRU VDOH\u0011 Id.\n13\n  )DUIHWFK GLG QRW GLVFORVH KRZ WKH ZDU LQ 8NUDLQH LPSDFWHG WKHLU VDOHV XQWLO 0DUFK \u001b\u000f \u0015\u0013\u0015\u0015 ZKHQ -RUGDQ\nUHSRUWHG WKDW )DUIHWFK \u00b3FHDVHG RSHUDWLRQV\u00b4 LQ 5XVVLD DQG WKDW LWV JXLGDQFH IRU \u0015\u0013\u0015\u0015 KDG EHHQ LVVXHG \u00b3EHIRUH\nZH VDZ LPSDFW LQ WKDW UHJLRQ.\u00b4 \u0088 \u0016\u0013\u0014\u0011\n\u0014\u0017\n  $FFRUGLQJ WR )(\u0016\u000f )DUIHWFK IDLOHG WR REWDLQ UHOHYDQW \u00bfQDQFLDO GDWD IURP $GLGDV\u0011 \u0088 \u0014\u001a\u0016\u0011 )(\u0016 Vtated WKDW\n$GLGDV RQO\\ SURYLGHG WRSOLQH VDOHV GDWD WR )DUIHWFK, and IDLOHG WR SURYLGH GHWDLOV RQ NH\\ PHWULFV VXFK DV\nGLVFRXQWV DQG ORJLVWLFV FRVWV. Id.\n\n\n\n                                                        8\n\f       Case 1:23-cv-10982-ER             Document 73         Filed 09/30/25   Page 9 of 46\n\n\n\n\n           'XULQJ WKH 0DUFK \u0015\u0018\u000f \u0015\u0013\u0015\u0015 *ROGPDQ 6DFKV (XURSHDQ 'LJLWDO (FRQRP\\\n\n&RQIHUHQFH\u001d &RQVXPHU ,QWHUQHW &RQIHUHQFH\u000f 1HYHV H[SODLQHG WKDW \u00b3ZH GRQ\u00b6W NQRZ\u00b4 LI\n\n\u00b3>W@KH VLWXDWLRQ LQ &KLQD ZLWK ORFNGRZQV\u00b4 LV \u00b3D KHDGZLQG RU D WDLOZLQG\u000f\u00b4 EHFDXVH LW LV DQ\n\n\u00b3HQWLUH>O\\@ VSHFXODWLYH H[HUFLVH\u00b4 WR \u00b3WU\\ WR ORRN LQWR WKH IXWXUH\u0011\u00b4 \u0088 \u0016\u0014\u0016\n\n           'XULQJ WKH 0D\\ \u001b\u000f \u0015\u0013\u0015\u0015 0RUJDQ 6WDQOH\\ 7HFKQRORJ\\\u000f 0HGLD DQG 7HOHFRP\n\n&RQIHUHQFH -RUGDQ VKDUHG WKH IROORZLQJ RXWORRN\u001d\n               6R ,\u00b6YH DOZD\\V IHOW WKDW WKH PDUNHWSODFH IURP WKH FXUUHQW GLVWDQFH\n               WKDW ZH KDYH ZRXOG JURZ DW OHDVW DV IDVW DV WKH RQOLQH PDUNHW\u000f LI QRW\n               PRUH\u0011 And then as you said, you add in Beauty, which is a new\n               category for us, it\u2019s $75 billion of the $300 billion market. ,W\u00b6V D\n               FDWHJRU\\ ZH\u00b6YH QRW SOD\\HG LQ XQWLO ZH ODXQFK WKLV 4\u0015 FRPLQJ\u000f VR WKDW\n               ZLOO DGG LQFUHPHQWDO *09\u0011 , WKLQN LW\u00b6V DOVR JRW DQ DPD]LQJ KDOR\n               H\u0d75HFW RQ WKH IDVKLRQ DQG WKH DFFHVVRULHV EXVLQHVV DV ZHOO EHFDXVH\n               FXVWRPHUV EX\\ EHDXW\\ PRUH IUHTXHQWO\\ DQG WKHUHIRUH )DUIHWFK ZLOO\n               EH PRUH IURQW RI PLQG WR EH DEOH WR EX\\ FORWKLQJ DV ZHOO.\n               And we expect that to drive a good level of customer retention\n               and customer acquisition as we move forward for the year\n               ahead. 3OXV RQ WRS RI WKDW\u000f DV \\RX VD\\\u000f ZH KDYH D SLSHOLQH RI\n               >)DUIHWFK 3ODWIRUP 6ROXWLRQV \u00b3)36\u00b4 @ 15 FOLHQWV WKDW ZH\u00b6UH YHU\\\n                                                       14F\n\n\n\n\n               FRQ\u00bfGHQW ZH ZLOO VHH FRPH WR PDUNHW ODWHU WKLV \\HDU WR KHOS FRQWLQXH\n               WR GULYH JURZWK\u0011 And on top of all that, we\u2019ve been able to see\n               that the China market take some really good learnings IURP WKH\n               ZRUN ZH\u00b6YH GRQH ZLWK >D &KLQHVH H-FRPPHUFH SODWIRUP@ RYHU WKH\n               ODVW \u0014\u0015 PRQWKV VLQFH ZH\u00b6YH EHHQ OLYH and apply those learnings to\n               see an acceleration of growth from that channel within a very\n               important market over the next 12 months as well.\n               6R RYHUDOO\u000f ZH\u00b6UH YHU\\ FRQ\u00bfGHQW WKDW \u0015\u001b\b WR \u0016\u0015\b LV WKH ULJKW\n               number. :H\u00b6YH DOVR VRUW RI ORRNHG DW LW E\\ FXVWRPHU FRKRUW\u000f E\\ RXU\n               UHWHQWLRQ OHYHOV\u000f RXU H[SHFWHG $29\u000f RXU IUHTXHQF\\ RI VKRS\u000f WKH QHZ\n               FXVWRPHUV WKDW ZH\u00b6UH DGGLQJ SHU TXDUWHU\u0011 :H\u00b6YH EHHQ UHFHQWO\\\n               DGGLQJ \u0018\u0013\u0013\u000f\u0013\u0013\u0013\u000f \u0019\u0013\u0013\u000f\u0013\u0013\u0013 QHZ FXVWRPHUV SHU TXDUWHU\u0011 And when\n               \\RX DGG DOO WKDW WRJHWKHU SOXV ZKDW ZH VHH IURP )36\u000f \u0015\u001b\b WR\n               \u0016\u0015\b LV DEVROXWHO\\ WKH ULJKW QXPEHU WR JR IRU\u0011\n\n\u0088 \u0015\u001c\u001b HPSKDVLV LQ RULJLQDO \u0011\n\n\n\n\n15\n     )36 LV )DUIHWFK\u00b6V H-FRPPHUFH WHFKQRORJ\\.\n\n\n\n                                                9\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 10 of 46\n\n\n\n\n       )DUIHWFK DQQRXQFHG LW ZDV SDUWQHULQJ ZLWK 1HLPDQ 0DUFXV *URXS \u00b310*\u00b4 in\n\n0D\\ \u0015\u0013\u0015\u0015 WR LQWHJUDWH )PS LQWR WKH RQOLQH H[SHULHQFH RI %HUJGRUI *RRGPDQ\u000f 10*\u00b6V\n\nGHSDUWPHQW VWRUH\u0011 \u0088 30. )DUIHWFK LQWHQGHG WR \u00bfQLVK LQWHJUDWLQJ WKH 10* SDUWQHUVKLS LQ\n\n2023. Id.\n\n       )DUIHWFK KRVWHG D FRQIHUHQFH FDOO ZLWK LQYHVWRUV DQG DQDO\\VLV WR GLVFXVV LWV 4\u0014\n\n\u0015\u0013\u0015\u0015 UHVXOWV RQ 0D\\ \u0015\u0019\u000f \u0015\u0013\u0015\u0015 WKH \u00b34\u0014 \u0015\u0013\u0015\u0015 (DUQLQJV &DOO\u00b4 \u0011 'XULQJ WKH 4 $\u000f -RUGDQ\n\nZDV DVNHG DERXW )DUIHWFK\u00b6V XQGHUSHUIRUPDQFH IRU 4\u0014\u000f WR ZKLFK -RUGDQ UHVSRQGHG\u001d\n            , PHDQ\u000f EURDGO\\\u000f \u00bfUVW TXDUWHU ZDV HQWLUHO\\ GRZQ WR WKH \u0016 IDFWRUV WKDW\n            ZH\u00b6YH RXWOLQHG HDUOLHU\u0011 5XVVLD DQG VRUW RI DGMDFHQW FRXQWULHV\u000f ,\n            JXHVV\u000f WKDW KDYH EHHQ LPSDFWHG E\\ ZKDW\u00b6V JRLQJ RQ WKHUH LQ (DVWHUQ\n            (XURSH\u000f WKH &KLQD ORFNGRZQ DQG WKHQ WKHUH\u00b6V TXLWH D VXGGHQ\n            DFFHOHUDWLRQ RQ IXOO SULFH IURP RXU H-FRQFHVVLRQ SDUWQHUV\u000f ZKLFK\n            REYLRXVO\\ ZH FHOHEUDWH\u0011\n            >\u00ab@\n            2EYLRXVO\\\u000f ZLWK WKH 5HHERN GHDO DQG WKHQ 1HLPDQ 0DUFXV OLYH\n            QH[W \\HDU DV ZHOO\u000f ZH\u00b6UH JRLQJ WR VHH PXFK VWURQJHU JURZWK LQ\n            \u0015\u0013\u0015\u0016\u000f DQG WKDW\u00b6V WKH WLPH WR LQYHVW LQ VRPH RI WKHVH ORQJHU-WHUP\n            LQLWLDWLYHV WKDW ZH GH\u00bfQLWHO\\ ZDQW WR GR\u0011\n\n\u0088 \u0016\u0016\u0013 HPSKDVLV LQ RULJLQDO \u0011\n\n       ,Q $XJXVW \u0015\u0013\u0015\u0015\u000f )DUIHWFK DQQRXQFHG LWV SODQ WR DFTXLUH D \u0017\u001a\u0011\u0018\b VWDNH LQ <RRQ[\n\nNet-a-3RUWHU \u00b3Net-a-3RUWHU\u00b4 \u000f Dn online OX[XU\\ DQG IDVKLRQ UHWDLOHU. \u0088 \u0016\u0014\u0011 1HYHV VWDWHG\n\nWKDW \u201c>W@KLV VLJQL\u00bfFDQW SDUWQHUVKLS XQHTXLYRFDOO\\ HVWDEOLVKHV )$5)(7&+ DV D SUH-\nHPLQHQW JOREDO SODWIRUP IRU OX[XU\\\u0011\u00b4 Id.\n\n       )DUIHWFK LVVXHG D SUHVV UHOHDVH DQQRXQFLQJ LWV 4\u0015 \u0015\u0013\u0015\u0015 \u00bfQDQFLDO UHVXOWV RQ $XJXVW\n\n\u0015\u0018\u000f \u0015\u0013\u0015\u0015 WKH \u00b34\u0015 \u0015\u0013\u0015\u0015 (DUQLQJV 5HOHDVH\u00b4 \u000f ZKHUHLQ WKH &RPSDQ\\ GLVFORVHG ERWK\n\nSRVLWLYH DQG QHJDWLYH \u00bfQDQFLDO UHVXOWV\u0011 \u0088 \u0016\u0016\u0015\u0011 6SHFL\u00bfFDOO\\\u000f WKH HDUQLQJV UHOHDVH SURYLGHG\n\ntKDW WKH *09 LQFUHDVHG E\\ \u0007\u0014\u0015\u0011\u0019 PLOOLRQ DQG WKDW UHYHQXH LQFUHDVHG E\\ \u0007\u0018\u0019\u0011\u0013 PLOOLRQ\n\n\\HDU-RYHU-\\HDU\u0011 \u0088\u0088 \u0016\u0016\u0016\u2013\u0016\u0017\u0011 \u0e60H 4\u0015 \u0015\u0013\u0015\u0015 (DUQLQJV 5HOHDVH DOVR SURYLGHG )DUIHWFK\u00b6V WKHQ-\n\nFXUUHQW RXWORRN\u000f ZKLFK FRYHUHG XQFHUWDLQWLHV IURP WKH LPSDFW RI &29,'-19,\n\nPDFURHFRQRPLF IDFWRUV\u000f DQG JHRSROLWLFDO WXUPRLO\u0011 \u0088 \u0016\u0016\u0019\u0011\n\n\n\n                                             10\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25      Page 11 of 46\n\n\n\n\n       'XULQJ WKH FDOO\u000f 1HYHV VWDWHG WKH IROORZLQJ\u001d\n           :H DUH QDYLJDWLQJ D YRODWLOH PDFUR HQYLURQPHQW DGHSWO\\\u000f FRQWLQXLQJ\n           WR SRVW JURZWK FRPSRXQGLQJ RQ ZKDW KDV EHHQ D WUHPHQGRXV \u0016-\\HDU\n           UXQ IRU )DUIHWFK\u000f D SHULRG WKDW VDZ RXU EXVLQHVV GRXEOH DV PHDVXUHG\n           E\\ RXU *09\u0011 \u0e60LV PDNHV PH H[WUHPHO\\ EXOOLVK IRU \u0015\u0013\u0015\u0016\u000f D \\HDU\n           ZKHQ ZH ZLOO ODS RXU FORVXUH RI RXU 5XVVLD RSHUDWLRQV\u000f H[SHFW &KLQD\n           WR WXUQ LQWR D WDLOZLQG\u000f DQG ZLOO VWDUW WR VHH WKH IUXLWV RI ODUJH GHDOV\n           VLJQHG WKLV \\HDU ZLWK 5HHERN\u000f 1HLPDQ 0DUFXV *URXS DQG 6DOYDWRUH\n           )HUUDJDPR\u0011 \u0e60HVH \u0015\u0013\u0015\u0016 YHFWRUV RI JURZWK\u000f FRPELQHG ZLWK WKH\n           UDWLRQDOLVDWLRQ RI FRVWV ZH DUH LPSOHPHQWLQJ WKLV \\HDU\u000f PDNH PH YHU\\\n           FRQ\u00bfGHQW DERXW RXU \u0015\u0013\u0015\u0016 WRS OLQH\u000f SUR\u00bfWDELOLW\\ DQG FDVK JHQHUDWLRQ\u0011\n\n\u0088 \u0016\u0016\u001b\u0011 -RUGDQ DGGHG WKDW\u000f GXULQJ WKH VHFRQG TXDUWHU\u000f )DUIHWFK QDYLJDWHG PDFUR FKDOOHQJHV\n\nZKLOH \u00b3GHOLYHULQJ UREXVW XQGHUO\\LQJ JURZWK,\u00b4 ZKLFK UHVXOWHG LQ UHYHQXH JURZWK RI \u0015\u0014\b\n\n\\HDU-oYHU-\\HDU\u0011 \u0088 \u0016\u0016\u001c\u0011\n\n       $OVR RQ $XJXVW \u0015\u0018\u000f \u0015\u0013\u0015\u0015\u000f )DUIHWFK KRVWHG D FRQIHUHQFH FDOO ZLWK LQYHVWRUV DQG\n\nDQDO\\VWV WR GLVFXVV LWV 4\u0015 \u0015\u0013\u0015\u0015 UHVXOWV WKH \u00b34\u0015 \u0015\u0013\u0015\u0015 (DUQLQJV &DOO\u00b4 \u000f GXULQJ ZKLFK\n\n-RUGDQ VWDWHG WKDW )DUIHWFK KDV \u00b3VHHQ VWURQJ HQJDJHPHQW IURP FXVWRPHUV LQFOXGLQJ GXULQJ\n\nRXU \u0019\u0011\u0014\u001b HYHQW LQ WKH &KLQD PDUNHW DQG \\HDU-on-\\HDU JURZWK RQ 7PDOO\u000f ZKLFK PHDQV\n\n>WKH\\@ UHPDLQ>HG@ RSWLPLVWLF DERXW WKH &KLQD PDUNHW DQG RXU RYHUDOO SURSRVLWLRQ PRYLQJ\n\nIRUZDUG\u0011\u00b4 \u0088 \u0016\u0017\u0016\u0011 -RUGDQ VDLG )DUIHWFK H[SHFWHG WKH &KLQD PDUNHW WR UHWXUQ WR JURZWK\n\nRYHU WKH IROORZLQJ \u0014\u0015 PRQWKV\u0011 Id. -RUGDQ DOVR GLVFXVVHG WKH RXWORRN IRU WKH IXOO \u0015\u0013\u0015\u0015\n\nFDOHQGDU \\HDU\u000f VWDWLQJ LQ UHOHYDQW SDUW\u001d\n           ,\u00b6G QRZ OLNH WR FRYHU RXU RXWORRN IRU WKH UHVW RI WKH \\HDU\u0011 $V WKH 4\u0015\n           UHVXOWV KLJKOLJKW\u000f ZH DUH VXFFHVVIXOO\\ PDQDJLQJ PDQ\\ IDFWRUV\n           DFURVV WKH EXVLQHVV DQG DFKLHYLQJ VWURQJ XQGHUO\\LQJ UHYHQXH\n           JURZWK DQG LPSURYHG JURVV PDUJLQV\u0011\n           >\u00ab@\n           In addition, RXU FRVW-VDYLQJ LQLWLDWLYHV DOORZ XV WR WDUJHW EUHDNHYHQ\n           DGMXVWHG (%,7'$ IRU WKH VHFRQG FRQVHFXWLYH \\HDU\u0011 , ZLOO UHLWHUDWH\n           WKDW RQJRLQJ FXUUHQF\\ PRYHPHQWV PD\\ DGYHUVHO\\ LPSDFW RXU\n           UHSRUWHG \u00bfJXUHV\u0011 ,Q WHUPV RI UHVHUYHV\u000f ZKLFK DUH ODUJHO\\ KHOG LQ 8\u00116\u0011\n           GROODUV\u000f ZH FRQWLQXH WR FORVHO\\ PDQDJH RXU OLTXLGLW\\ SRVLWLRQ\u0011 H2\n           [VHFRQG KDOI RI WKH \\HDU] SUR\u00bfWDELOLW\\ DQG LPSURYLQJ ZRUNLQJ\n           FDSLWDO SRVLWLRQ DV ZH H[LW WKH \\HDU PHDQV WKDW FDVK DQG FDVK\n           HTXLYDOHQWV LV H[SHFWHG WR FORVH DERYH \u0007\u0019\u0018\u0013 PLOOLRQ DW \\HDU-HQG\u0011\n\n\n\n                                             11\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 12 of 46\n\n\n\n\n\u0088 \u0016\u0017\u0018 HPSKDVLV LQ RULJLQDO \u0011\n\n       $W OHDVW HLJKW VHQLRU H[HFXWLYHV UHVLJQHG IURP $XJXVW \u0015\u0013\u0015\u0015 WR 1RYHPEHU \u0015\u0013\u0015\u0015\u0011\n\n3ODLQWL\u0d75V DVVHUW WKDW WKH WLPLQJ RI WKHVH UHVLJQDWLRQV \u00b3VXJJHVWV WKDW &RPSDQ\\ H[HFXWLYHV\n\nZHUH DZDUH RI )DUIHWFK\u00b6V WUXH \u00bfQDQFLDO FRQGLWLRQ DQG VRPH OHIW WR DYRLG OLDELOLW\\\u0011\u00b4 Doc.\n\n\u0017\u001b DW \u0016\u001c\u0011\n\n       'XULQJ a 1RYHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0015 HDUQLQJV FDOO\u000f 1HYHV H[SODLQHG\u000f \u00b3ZH\u00b6UH VHHLQJ\n\nFRQWLQXHG GLJLWDO PHGLD FRVW LQ\u00c0DWLRQ IRU OX[XU\\\u000f HVSHFLDOO\\ LQ WKH 8\u00116\u0011 DV ZHOO DV UHSRUWV\n\nRI KLJKHU LQYHQWRULHV LQGLFDWLQJ ZH\u00b6UH JRLQJ WR EH KHDGLQJ WR D YHU\\ SURPRWLRQDO\n\nHQYLURQPHQW\u0011\u00b4 Doc. \u0017\u0018-\u0019 DW \u0019\u0011 -RUGDQ DGGHG WKDW VDOHV LQ WKH 8\u00116\u0011 \u00b3ZHUH GRZQ\u00b4 GXH WR\n\nWKH \u00b3GHOLEHUDWH GHFLVLRQ WR UHGXFH GHPDQG JHQHUDWLRQ VSHQG \u0011 \u0011 \u0011 WR IRFXV RQ KLJKHU-PDUJLQ\n\nSUR\u00bfWDELOLW\\\u0011\u00b4 Id. at 8. 1HYHV LV TXRWHG DV IROORZV LQ WKH 4\u0016 \u0015\u0013\u0015\u0015 (DUQLQJV 5HOHDVH\u000f\n\nSXEOLVKHG RQ 1RYHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0015\u001d\n            \u0e60URXJK LW DOO\u000f RXU IRFXV KDV UHPDLQHG RQ RXU PLVVLRQ WR EH WKH\n            JOREDO SODWIRUP IRU OX[XU\\ ZKLOH DOVR WDNLQJ WKH RSSRUWXQLW\\ WR\n            IXQGDPHQWDOO\\ UH-VWUXFWXUH RXU RUJDQL]DWLRQ DQG VWUHDPOLQH RXU FRVW\n            EDVH\u0011 $V D UHVXOW\u000f )DUIHWFK LV IXUWKHU SRVLWLRQHG WR VHL]H WKH\n            VLJQL\u00bfFDQW DQQRXQFHG PLOHVWRQHV DQG IXWXUH RSSRUWXQLWLHV DKHDG\u000f\n            DQG HPHUJH IURP WKLV SHULRG DV DQ HYHQ VWURQJHU EXVLQHVV VHW WR\n            GHOLYHU SUR\u00bfWDELOLW\\ DQG IUHH FDVK \u00c0RZ\u0011\n\n\u0088 \u0016\u0018\u0014 HPSKDVLV LQ RULJLQDO \u0011 6LPLODUO\\\u000f -RUGDQ LV TXRWHG VD\\LQJ\u000f \u00b3ZH UHPDLQ ZHOO\n\nFDSLWDOL]HG WR H[HFXWH RQ RXU ORQJ-WHUP YLVLRQ\u000f DQG , DP FRQ\u00bfGHQW ZH ZLOO UHWXUQ WR\nSUR\u00bfWDEOH JURZWK LQ \u0015\u0013\u0015\u0016\u0011\u00b4 \u0088\u0088 \u0015\u0016\u001b\u000f \u0016\u0018\u0015\u0011\n\n       2Q 'HFHPEHU \u0014\u000f \u0015\u0013\u0015\u0015\u000f )DUIHWFK KRVWHG DQ DQDO\\VW DQG LQYHVWRU GD\\ WR GLVFXVV LWV\n\nRSHUDWLRQV VLQFH LWV ,32 LQ \u0015\u0013\u0014\u001b\u0011 \u0088 \u0016\u00193. 'XULQJ WKH FDOO\u000f -RUGDQ GLVFXVVHG )DUIHWFK\u00b6V\n\nIXWXUH\u000f ZKLFK LQFOXGHG WKH H[SHFWDWLRQ WKDW EXVLQHVV ZRXOG VWDUW WR DFFHOHUDWH LWV JURZWK\n\nDQG GHOLYHU D VHFRQG SKDVH RI JURZWK\u0011 \u0088 \u0016\u0019\u0017\u0011 $FFRUGLQJ WR -RUGDQ\u000f WKLV JURZWK FDPH\n\nZLWK SUR\u00bfWDELOLW\\ DQG IUHH FDVK \u00c0RZ\u000f ERWK RI ZKLFK ZHUH SD\\R\u0d75V IURP )DUIHWFK\u00b6V EXVLQHVV\n\nLQYHVWPHQWV\u0011 Id.\n\n\n\n\n                                             12\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 13 of 46\n\n\n\n\n        ,Q HDUO\\ \u0015\u0013\u0015\u0016\u000f )DUIHWFK VWDUWHG VHHLQJ LPSURYHPHQW LQ LWV \u00bfQDQFHV\u0011 )DUIHWFK\n\nR\u0d76FLDOO\\ ODXQFKHG WKH 5HHERN SDUWQHUVKLS in 0D\\ \u0015\u0013\u0015\u0016\u000f \u0088 \u0017\u0013\u001c\u000f DQG LW VWDUWHG VHHLQJ\n\n\u00b3VHTXHQWLDO LPSURYHPHQW LQ *09 JURZWK LQ WKH 86 DQG &KLQD\u000f\u00b4 \u0088\u0088 \u0017\u0013\u0017. )DUIHWFK LVVXHG\n\nD SUHVV UHOHDVH RQ 0D\\ \u0016\u000f \u0015\u0013\u0015\u0016\u000f LQ ZKLFK 1HYHV LV TXRWHG VD\\LQJ\u001d\n            /DXQFKLQJ WKH SDUWQHUVKLS ZLWK 5HHERN LV DQ LPSRUWDQW H[HFXWLRQ\n            PLOHVWRQH LQ )$5)(7&+\u00b6V SODQV IRU \u0015\u0013\u0015\u0016\u0011 :H DUH GHOLJKWHG WKDW\n            WKH 1**\u000e\u000e DQG )$5)(7&+ 3ODWIRUP 6ROXWLRQV WHDPV KDYH\n            HQVXUHG 5HHERN\u00b6V ZKROHVDOH DQG HFRPPHUFH RSHUDWLRQV DUH XS\n            DQG UXQQLQJ RQ WLPH DQG RQ EXGJHW\u0011 :H ORRN IRUZDUG WR GHOLYHULQJ\n            RQ IXUWKHU PLOHVWRQHV IRU 5HHERN WKURXJKRXW RXU SDUWQHUVKLS\u0011\n\n\u0088 396 HPSKDVLV LQ RULJLQDO).\n\n        $FFRUGLQJ WR )(\u0016\u000f $GLGDV KDG EHHQ KHDYLO\\ GLVFRXQWLQJ LWV 5HHERN SURGXFWV LQ\n\n\u0015\u0013\u0015\u0015\u000f ZKLFK LQ WXUQ\u000f KDG ERRVWHG )DUIHWFK\u00b6V VDOHV\u000f VDOHV JURZWK\u000f DQG UHYHQXH WKURXJKRXW\n\nWKH JUHDWHU SDUW RI WKDW \\HDU EDVHG RQ LWV SDUWQHUVKLS ZLWK $GLGDV\u0011 \u0088 \u0014\u001a\u0019\u0011 \u0e60LV\u000f KRZHYHU\u000f\n\nPHDQW WKDW )DUIHWFK GLG QRW KDYH URRP IRU SUR\u00bfW PDUJLQV DW WKH GLVFRXQWHG SULFH\u0011 Id.\n\n3ODLQWL\u0d75V DOVR DOOHJH WKDW )(\u0016 LQIRUPHG WKHP WKDW )DUIHWFK KDG WR WDNH D PXFK ODUJHU\n\nLQYHQWRU\\ WKDQ WKH\\ H[SHFWHG\u000f ZKLFK )DUIHWFK KDG WURXEOH VHOOLQJ EHFDXVH LW ZDV IURP WKH\n\nSUHYLRXV VHDVRQ\u0011 \u0088\u0088 \u0014\u001a\u001c\u2013\u001b\u0014\u0011 \u0e60H &$& DOOHJHV WKDW\u000f E\\ WKH HQG RI WKH VHFRQG TXDUWHU RI\n\n\u0015\u0013\u0015\u0016\u000f LW ZDV REYLRXV WR )(\u0016 WKDW WKH 5HHERN EUDQG ZDV QRW JRLQJ WR UHDFK WKH VDOHV\u000f\n\nJURZWK\u000f DQG UHYHQXH LW ZDV H[SHFWHG WR DFKLHYH ZKHQ LW ZDV DFTXLUHG\u0011 \u0088 \u0014\u001b\u0017\u0011\n        'XULQJ WKH VHFRQG TXDUWHU RI \u0015\u0013\u0015\u0016\u000f )DUIHWFK UHSRUWHG WKDW EXVLQHVV JURZWK ZDV\n\n\u00b3VHTXHQWLDOO\\ EHWWHU\u00b4 DV FRPSDUHG WR WKH \u00bfUVW TXDUWHU\u000f EXW \u00b3WKH UHFRYHU\\ >ZDV@ QRW >@ DV\n\nUREXVW DV >@ H[SHFWHG\u00b4 DW WKH VWDUW RI WKH \\HDU\u0011 'RF\u0011 \u0017\u0018-\u0014\u0013 DW \u001a. $W WKH VDPH WLPH\u000f WKH\n\n&RPSDQ\\ \u00b3H[SHFW>HG@ \u0011 \u0011 \u0011 UHFRYHU\\ RI WKHVH GHOLYHULHV WR UHVXOW LQ 4\u0016\u00b4 VDOHV EHLQJ GRXEOH\n\nWKDW RI 4\u0015\u0011 Id. at 8.\n\n        FDUIHWFK LVVXHG D SUHVV UHOHDVH DQQRXQFLQJ LWV \u00bfQDQFLDO UHVXOWV IRU WKH WKUHH-PRQWK\n\nSHULRG HQGHG -XQH \u0016\u0013\u000f \u0015\u0013\u0015\u0016 RQ $XJXVW \u0014\u001a\u000f \u0015\u0013\u0015\u0016 WKH \u00b34\u0015 \u0015\u0013\u0015\u0016 (DUQLQJV 5HOHDVH\u00b4 . \u0e60H\n\n4\u0015 \u0015\u0013\u0015\u0016 (DUQLQJV 5HOHDVH SURYLGHG\u000f LQ UHOHYDQW SDUW\u001d\n\n\n\n\n                                             13\n\f   Case 1:23-cv-10982-ER           Document 73       Filed 09/30/25      Page 14 of 46\n\n\n\n\n       \u0083     'LJLWDO 3ODWIRUP *09 DQG 'LJLWDO 3ODWIRUP 6HUYLFHV 5HYHQXH JURZWK\n             DFFHOHUDWH WR \u001a\b DQG \u0014\u0013\b \\HDU-RYHU-\\HDU\n       \u0083     6WURQJ VXSSO\\ JURZWK RI RYHU \u0017\u0013\b \\HDU-RYHU-\\HDU RQ WKH )DUIHWFK\n             0DUNHWSODFH \u00875HFRUG $FWLYH &RQVXPHUV RI \u0017\u0011\u0014 PLOOLRQ\u000f XS \u001a\b \\HDU-RYHU-\\HDU\n       \u0083     2SHUDWLQJ FRVW EDVH UHGXFHG \\HDU-RYHU-\\HDU\u000f GHOLYHULQJ RSHUDWLQJ FRVW\n             OHYHUDJH\n       \u0083     3URJUHVV RQ VWUDWHJLF LQLWLDWLYHV XQGHUSLQV \u0015\u0013\u0015\u0016 H[SHFWDWLRQV IRU VWURQJ\n             JURZWK\u000f $GMXVWHG (%,7'$ SUR\u00bfWDELOLW\\ DQG SRVLWLYH )UHH &DVK )ORZ\n\n\u0088 \u0017\u0015\u0019 HPSKDVLV LQ RULJLQDO)\u0011 \u0e60H 4\u0015 \u0015\u0013\u0015\u0016 (DUQLQJV 5HOHDVH VWDWHG\u000f LQ UHOHYDQW SDUW\u000f WKDW\u001d\n\n\u00b3:H EHOLHYH WKDW FDVK \u00c0RZ JHQHUDWHG IURP RSHUDWLRQV DQG RXU FDVK\u000f FDVK HTXLYDOHQWV DQG\n\nPDUNHWDEOH VHFXULWLHV EDODQFHV\u000f DV ZHOO DV ERUURZLQJ DUUDQJHPHQWV\u000f ZLOO EH VX\u09fdFLHQW WR\n\nPHHW RXU DQWLFLSDWHG RSHUDWLQJ FDVK QHHGV IRU DW OHDVW WKH QH[W WZHOYH PRQWKV\u0011\u00b4 \u0088 \u0017\u0016\u0013\n\nHPSKDVLV LQ RULJLQDO .\n\n       -RUGDQ LV DOVR TXRWHG VD\\LQJ WKDW )DUIHWFK\u00b6V VHFRQG TXDUWHU SHUIRUPDQFH\n\n\u201cGHPRQVWUDWHV RXU SURJUHVV WRZDUGV GHOLYHULQJ SUR\u00bfWDEOH JURZWK DQG SRVLWLYH IUHH FDVK\n\n\u00c0RZ LQ \u0015\u0013\u0015\u0016\u000f\u00b4 DGGLQJ\u000f LQ UHOHYDQW SDUW\u001d\n             2XU 'LJLWDO 3ODWIRUP KDV SHUIRUPHG SDUWLFXODUO\\ ZHOO\u000f UHWXUQLQJ WR\n             JURZWK ZKLOH PDLQWDLQLQJ D VWDEOH RUGHU FRQWULEXWLRQ PDUJLQ\u0011 \u0e60LV\u000f\n             FRXSOHG ZLWK VLJQL\u00bfFDQW VDYLQJV LQ WKH FRVW EDVH DFURVV DOO DUHDV RI\n             WKH EXVLQHVV\u000f PHDQV RXU GLJLWDO SODWIRUP LV PRUH SUR\u00bfWDEOH WKDQ ODVW\n             \\HDU\u0011 :H HQWHU WKH VHFRQG KDOI ZHOO SRVLWLRQHG WR DFKLHYH IDVWHU\n             OHYHOV RI JURZWK\u000f ZLWK D ORZHU FRVW EDVH DQG VWURQJ OLTXLGLW\\\n\u0088 \u0017\u0016\u0016 HPSKDVLV LQ RULJLQDO).\n\n       DXULQJ WKH TXHVWLRQ-and-aQVZHU SRUWLRQ RI WKH 4\u0015 \u0015\u0013\u0015\u0016 eDUQLQJV call, DQ DQDO\\VW\n\nLQTXLUHG DERXW WKH SHUIRUPDQFH DQG KHDOWK RI WKH 2\u0d75-:KLWH EUDQG\u000f WR ZKLFK 1HYHV\n\nUHVSRQGHG\u001d\n             :H GRQ\u00b6W EUHDN RXW SHUIRUPDQFH RQ WKH EUDQG E\\ EUDQG\u000f EXW WKH\n             FRQVXPHU GHPDQG DURXQG 2\u0d75-ZKLWH DQG 3DOP $QJHOV UHPDLQV YHU\\\n             VWURQJ\u0011 :KDW ZH VHH LV \u0015 GL\u0d75HUHQW SLFWXUHV LQ WHUPV RI ZKROHVDOH\n             YHUVXV GLUHFW-to-FRQVXPHU\u000f VR ZKROHVDOH DOZD\\V RYHUVKRRW LQ ERWK\n             GLUHFWLRQV\u0011 6R ZH VDZ D YHU\\ IDVW H[SDQVLRQ RI RXU ZKROHVDOH\n             EXVLQHVV\u000f DV ZH VDLG\u000f \u0015\u0013\b &$*5 IURP \u00b6\u0014\u001b WR \u00b6\u0015\u0015\u0011\n             >\u00ab@\n\n\n\n\n                                             \u0014\u0017\n\f     Case 1:23-cv-10982-ER             Document 73          Filed 09/30/25         Page 15 of 46\n\n\n\n\n             6R LI \\RX ORRN DW GLUHFW WR FRQVXPHU\u000f WKH >VLF@ LQ DJJUHJDWH\u000f WKH\n             1** GLUHFW-WR-FRQVXPHU GLJLWDO VDOHV DUH XS GRXEOH GLJLWV\u0011\n\u0088 \u0017\u0018\u0013 HPSKDVLV LQ RULJLQDO).\n\n        $FFRUGLQJ WR 3ODLQWL\u0d75V\u000f DOO WKH IRUHJRLQJ VWDWHPHQWV GL\u0d75HUHd IURP WKH UHDOLW\\.\n\n3ODLQWL\u0d75V DOOHJHG WKDW )DUIHWFK\u00b6V FDVK DQG FDVK HTXLYDOHQWV EDODQFH DPRXQWHG WR\n\nDSSUR[LPDWHO\\ \u0007\u001a\u0016\u0017\u000f\u0015\u0013\u0013\u000f\u0013\u0013\u0013 DV RI 'HFHPEHU \u0016\u0014\u000f \u0015\u0013\u0015\u0015\u000f EXW E\\ -XQH \u0016\u0013\u000f \u0015\u0013\u0015\u0016\u000f WKH balance\n\nKDG GURSSHG WR DSSUR[LPDWHO\\ \u0007\u0017\u0018\u0016\u000f\u001b\u0013\u0013\u000f\u0013\u0013\u0013\u0011 \u0088 \u0014\u0013\u0019\u0011 $V D UHVXOW RI WKH IRUHJRLQJ\u000f\n\n3ODLQWL\u0d75V DVVHUW WKDW \u00b3EHWZHHQ )HEUXDU\\ \u0015\u0013\u0015\u0013 DQG 6HSWHPEHU \u0015\u0013\u0015\u0016\u000f WKH &RPSDQ\\\u000f DQG LWV\n\nVXEVLGLDULHV\u000f UHFHLYHG URXJKO\\ \u0007\u0015\u0011\u0017 ELOOLRQ WKURXJK YDULRXV FRQYHUWLEOH QRWHV\u000f\n\nLQYHVWPHQWV\u000f DQG WHUP ORDQV\u000f RQ WRS RI WKH PRUH WKDQ \u0007\u0014 ELOOLRQ UDLVHG LQ WKH &RPSDQ\\\u00b6V\n\n6HSWHPEHU \u0015\u0013\u0014\u001b ,32\u000f DQG E\\ 'HFHPEHU \u0015\u0013\u0015\u0016\u000f LW ZDV DOO JRQH\u0011\u00b4 \u0088 109.\n\n        3ODLQWL\u0d75V DOVR DOOHJH WKDW )DUIHWFK UHIXVHG WR DGGUHVV WKH KLJK FRVWV DVVRFLDWHG\n\nZLWK GLUHFW EUDQG SDUWQHUVKLSV\u0011 )RU H[DPSOH\u000f 3ODLQWL\u0d75V H[SODLQHG WKDW WKH LQFUHDVH LQ\n\nVWRFN IURP GLUHFW EUDQG H-FRQFHVVLRQV YHUVXV PXOWL-EUDQG ERXWLTXH VDOHV KDG GL\u0d75HUHQW\n\nLPSOLFDWLRQV IRU WKH &RPSDQ\\\u00b6V vDOXH added tD[HV \u00b39$7\u00b4 SD\\PHQWV DQG FUHGLWV. \u0088 153.\n\n$FFRUGLQJ WR 3ODLQWL\u0d75V\u000f UHJDUGOHVV RI ZKHUH WKH \u00bfQDO EX\\HU ZDV ORFDWHG\u000f )DUIHWFK ZRXOG\n\nEX\\ WKH SURGXFW IURP WKH OX[XU\\ EUDQG VR WKDW LW\u000f DV WKH LQLWLDO EX\\HU ORFDWHG LQ (XURSH\u000f\n\nKDG WR SD\\ 9$7 RQ WKH SURGXFWV LW VROG. \u0088 \u0014\u0018\u0017\u0011 ,I WKH \u00bfQDO EX\\HU lived RXWVLGH RI (XURSH\u000f\n\nWKH 9$7 SDLG E\\ )DUIHWFK ZRXOG XOWLPDWHO\\ EHFRPH UHIXQGDEOH RQFH )DUIHWFK UHTXHVWHG\n\nWKH 9$7 UHIXQG\u0011 16 Id.\n                   15F\n\n\n\n\n        ,PSRUWDQWO\\\u000f HDFK RI WKH ,QGLYLGXDO 'HIHQGDQWV LQFUHDVHG WKHLU )DUIHWFK VWRFN\n\nGXULQJ WKH &ODVV 3HULRG\u0011 'RF\u0011 \u0017\u0017 DW \u0016\u001a\u0011\n\n\n\n\n16\n  $FFRUGLQJ WR )RUPHU (PSOR\\HH \u0006\u0015 \u00b3)(\u0015\u00b4 \u000f LW FRXOG WDNH DQ\\ZKHUH IURP \u0019 PRQWKV WR D \\HDU WR UHFHLYH\nWKH 9$7 UHIXQG\u0011 \u0088 \u0014\u0018\u0017\u0011 )(\u0015 EHOLHYHG WKLV PRGHO ZDV \u00bfQDQFLDOO\\ XQVXVWDLQDEOH IRU )DUIHWFK\u000f HVSHFLDOO\\ LQ\nFDVHV ZKHUH WKH \u00bfQDO EX\\HU ZDV LQ (XURSH DQG )DUIHWFK ZDV QRW HOLJLEOH IRU WKH 9$7 UHIXQG\u0011 \u0088 \u0014\u0018\u0018\u0011 FE2\nZDV dLUHFWRU RI Jlobal iQGLUHFW tD[ DW )DUIHWFK IURP 0D\\ \u0015\u0013\u0015\u0014 WR 2FWREHU \u0015\u0013\u0015\u0016\u0011\n\n\n\n                                                   15\n\f     Case 1:23-cv-10982-ER             Document 73         Filed 09/30/25        Page 16 of 46\n\n\n\n\n              a. Truth Emerges\n\n              2Q $XJXVW \u0014\u001a\u000f \u0015\u0013\u0015\u0016\u000f )DUIHWFK LVVXHG D SUHVV UHOHDVH DQQRXQFLQJ LWV \u00bfQDQFLDO\n\nUHVXOWV IRU WKH VHFRQG TXDUWHU RI \u0015\u0013\u0015\u0016\u000f UHSRUWLQJ SUHGRPLQDQWO\\ QHJDWLYH UHVXOWV\u0011 \u0088 \u0015\u0017\u0015\u0011 It\n\nUHSRUWHG UHYHQXH RI DSSUR[LPDWHO\\ \u0007\u0018\u001a\u0015 PLOOLRQ\u000f ZKLFK ZDV OHVV WKDQ WKH PDUNHW\n\nFRQVHQVXV RI \u0007\u0019\u0018\u0013\u000f\u001a\u0014\u0013\u000f\u0013\u0013\u0013\u000f VWDWLQJ LQ UHOHYDQW SDUW\u001d\n                 5HYHQXH GHFUHDVHG \u0007\u001a\u0011\u0016 PLOOLRQ \\HDU-RYHU-\\HDU IURP \u0007\u0018\u001a\u001c\u0011\u0016 PLOOLRQ\n                 LQ VHFRQG TXDUWHU \u0015\u0013\u0015\u0015 WR \u0007\u0018\u001a\u0015\u0011\u0014 PLOOLRQ LQ VHFRQG TXDUWHU \u0015\u0013\u0015\u0016\u000f\n                 UHSUHVHQWLQJ D \\HDU-RYHU \\HDU GHFUHDVH RI \u0014\u0011\u0016\b\u0011 \u0e60LV GHFUHDVH ZDV\n                 SULPDULO\\ GULYHQ E\\ D \u0017\u0015\u0011\u0015\b GHFUHDVH LQ %UDQG 3ODWIRUP 5HYHQXH WR\n                 \u0007\u0019\u001a\u0011\u0017 PLOOLRQ\u000f DV ZHOO DV D \u0014\u0018\u0011\u0014\b GHFUHDVH LQ ,Q-6WRUH 5HYHQXH WR\n                 \u0007\u0015\u0015\u0011\u001a PLOOLRQ\u0011\n\nId. )DUIHWFK DOVR DQQRXQFHG LWV GHFLVLRQ WR GLVFRQWLQXH 1** %HDXW\\ DV D FDWHJRU\\ RQ WKH\n\n*URXS\u00b6V PDUNHWSODFH DQG GLVFORVHG WKDW LW ZDV \u00b3H[SORULQJ VWUDWHJLF RSWLRQV IRU 9LROHW\n\n*UH\\\u0011\u00b4 \u0014\u001a \u0088 \u0015\u0017\u0016\u0011\n        16F\n\n\n\n\n              \u0e60DW VDPH GD\\\u000f GXULQJ DIWHU-PDUNHW KRXUV\u000f )DUIHWFK KHOG D FRQIHUHQFH FDOO ZLWK\n\nLQYHVWRUV DQG DQDO\\VWV WR GLVFXVV WKH &RPSDQ\\\u00b6V TXDUWHUO\\ \u00bfQDQFLDO UHVXOWV\u0011 'XULQJ WKH\n\nFDOO\u000f 'HIHQGDQWV GLVFXVVHG VORZGRZQV LQ JURZWK LQ WKH 8\u00116\u0011 DQG &KLQD\u000f RQERDUGLQJ\n\nFKDOOHQJHV D\u0d75HFWLQJ WKH ODXQFK RI WKH 5HHERN SDUWQHUVKLS\u000f DQG LVVXHV ZLWK LQYHQWRU\\ DQG\n\nVKLSSLQJ, DQG WKH QHJDWLYH LPSDFW WKHVH KDG KDG RQ )DUIHWFK\u00b6V UHYHQXH\u0011 \u0088 \u0015\u0017\u0017\u0011 'XULQJ\n\nWKH FDOO\u000f 3KDLU GLVFORVHG WKDW EHFDXVH RI \u00b3WKH LQLWLDO WUDQVLWLRQDO FKDOOHQJHV\u00b4 LPSDFWLQJ WKH\n5HHERN ODXQFK\u000f WKH &RPSDQ\\ KDG UHYLVHG LWV H[SHFWHG \u0015\u0013\u0015\u0016 UHYHQXH IURP 5HHERN WR\n\nDSSUR[LPDWHO\\ \u0007\u0015\u0013\u0013 PLOOLRQ DFURVV ERWK WKH EUDQG DQG GLJLWDO SODWIRUPV. \u0088 \u0015\u0017\u0018\u0011 $V D\n\nUHVXOW RI WKLV DQQRXQFHPHQW DQG WKH GLVFORVXUHV DW WKH FRQIHUHQFH FDOO\u000f )DUIHWFK\u00b6V VWRFN\n\nSULFH IHOO \u0007\u0015\u0011\u0014\u0018 SHU VKDUH\u000f RU \u0017\u0018\u0011\u0014\u001a\b\u000f WR FORVH DW \u0007\u0015\u0011\u0019\u0014 SHU VKDUH RQ $XJXVW \u0014\u001b\u000f \u0015\u0013\u0015\u0016\u0011 \u0088\n\n\u0015\u0017\u001a\u0011\n\n\n\u0014\u001a\n  $FFRUGLQJ WR )RUPHU (PSOR\\HH \u0006\u0019 \u00b3)(\u0019\u00b4 \u000f ZKR ZRUNHG DW )DUIHWFK DV D VHQLRU PHPEHU RI WKH LQWHUQDO\ncRQWUROV WHDP IURP $SULO \u0015\u0013\u0015\u0016 WR 6HSWHPEHU \u0015\u0013\u0015\u0016, and DWWHQGHG PHHWLQJV ZLWK VHQLRU PDQDJHPHQW DQG\n)DUIHWFK\u00b6V OHJDO WHDP\u000f WKH LQWHUQDO FRQWUROV WHDP FDPH XQGHU LQWHQVH SUHVVXUH WR \u00bf[ WKH ORQJ-VWDQGLQJ\nPDWHULDO ZHDNQHVV DW 1**. \u0088\u0088 65, \u0015\u0014\u001b\u0011 6SHFL\u00bfFDOO\\\u000f )(\u0019 VDLG WKDW\u000f DW WKHVH PHHWLQJV\u000f WKH WDNHDZD\\ ZDV\nWKDW )DUIHWFK FRXOG EH IRUFHG WR GHOLVW IURP WKH 1<6( DQG PLJKW FHDVH WR H[LVW LI WKH\\ GLG QRW \u00bf[ WKH\nPDWHULDO ZHDNQHVV DW 1** E\\ WKH HQG RI 2023. \u0088 218.\n\n\n\n                                                  16\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 17 of 46\n\n\n\n\n       \u0e60HQ\u000f RQ 1RYHPEHU \u0015\u001b\u000f \u0015\u0013\u0015\u0016\u000f DIWHU PDUNHW KRXUV\u000f )DUIHWFK DQQRXQFHG WKDW LW\n\nZRXOG QRW EH GLVFORVLQJ LWV \u00bfQDQFLDO UHVXOWV IRU WKH TXDUWHU HQGHG 6HSWHPEHU \u00160, 2023. \u0088\n\n\u0015\u0017\u001c\u0011 )DUIHWFK DGGHG WKDW WKH\\ ZRXOG QRW EH SURYLGLQJ DQ\\ JXLGDQFH RU IRUHFDVW JRLQJ\n\nIRUZDUG\u000f DQG WKDW \u00b3SULRU IRUHFDVWV RU JXLGDQFH VKRXOG QR ORQJHU EH UHOLHG XSRQ\u0011\u00b4 \u0088 250.\n\n)DUIHWFK\u00b6V VWRFN SULFH IHOO \u0007\u0014\u0011\u0014\u0016 SHU VKDUH\u000f RU \u0018\u0016\u0011\u001b\b\u000f WR FORVH DW \u0007\u0013\u0011\u001c\u001a SHU VKDUH RQ\n\n1RYHPEHU \u0015\u001c\u000f \u0015\u0013\u0015\u0016. \u0088 251.\n\n       OQ 1RYHPEHU \u0016\u0013\u000f \u0015\u0013\u0015\u0016\u000f )DUIHWFK DQQRXQFHG WKDW -\u0011 0LFKDHO (YDQV\u000f WKH 3UHVLGHQW\n\nRI $OLEDED, KDG UHVLJQHG DV D ERDUG PHPEHU\u000f H\u0d75HFWLYH LPPHGLDWHO\\\u000f SXUSRUWHGO\\ \u00b3LQ\n\nIXUWKHUDQFH RI WKH DUP\u00b6V OHQJWK FRPPHUFLDO UHODWLRQVKLS EHWZHHQ $OLEDED >@ DQG\n\n>)DUIHWFK@\u0011\u00b4 \u0088 \u0015\u0018\u0017\u0011 $FFRUGLQJ WR WKH C$&\u000f (YDQ\u00b6V UHVLJQDWLRQ IURP WKH ERDUG VLJQDOHG WR\n\nLQYHVWRUV\u000f DQDO\\VWV\u000f DQG PDUNHW H[SHUWV WKDW )DUIHWFK ZDV ORVLQJ VXSSRUW\u0011 \u0088 255.\n\n       2Q 'HFHPEHU \u0014\u001b\u000f \u0015\u0013\u0015\u0016\u000f )DUIHWFK DQQRXQFHG WKH DJUHHPHQW WR WUDQVIHU ))\n\n+ROGLQJV\u00b6 EXVLQHVV DQG DVVHWV\u000f WR &RXSDQJ\u000f ,QF\u0011 \u00b3&RXSDQJ\u00b4 \u000f LQ H[FKDQJH IRU D \u0007\u0018\u0013\u0013\n\nPLOOLRQ EULGJH ORDQ WR FRQWLQXH RSHUDWLQJ XQWLO WKH FRQVXPPDWLRQ RI WKH WUDQVIHU. \u0088 256.\n\n)DUIHWFK H[SODLQHG WKDW KROGHUV RI &ODVV $ DQG % RUGLQDU\\ VKDUHV DQG LWV FRQYHUWLEOH QRWHV\n\n\u00b3ZLOO QRW UHFRYHU DQ\\ RI WKHLU RXWVWDQGLQJ LQYHVWPHQWV LQ )DUIHWFK,\u00b4 WKDW )DUIHWFK ZRXOG\n\nEH \u00b3GHOLVWHG IURP WKH 1<6(\u00b4 DQG \u00b3OLTXLGDWHG\u0011\u00b4 \u0088 \u0015\u0018\u001a\u0011 'XULQJ WKDW FDOO\u000f )DUIHWFK DOVR\n\nDQQRXQFHG WKDW VHYHUDO LQGHSHQGHQW PHPEHUV RI WKH %RDUG RI 'LUHFWRUV UHVLJQHG\u000f OHDYLQJ\n\n1HYHV DV WKH RQO\\ %RDUG PHPEHU RYHUVHHLQJ WKH WUDQVIHU RI )DUIHWFK\u00b6V EXVLQHVV DQG DVVHWV\n\nWR &RXSDQJ\u0011 \u0088 \u0015\u0018\u001b\u0011 /DVWO\\\u000f )DUIHWFK DQQRXQFHG WKDW )) +ROGLQJV\u00b6 SURSRVHG DFTXLVLWLRQ\n\nRI \u0017\u001a\u0011\u0018\b RI Net-a-3RUWHU\u000f WKH DGRSWLRQ RI )36 E\\ Net-a-3RUWHU DQG 5LFKHPRQW DQG WKH\n\nODXQFK RI 5LFKHPRQW 0DLVRQV H-FRQFHVVLRQV RQ WKH )DUIHWFK 0DUNHWSODFH ZRXOG EH\n\nLPPHGLDWHO\\ WHUPLQDWHG\u0011 \u0088 259.\n\n       )ROORZLQJ WKH DQQRXQFHPHQW RI WKH WUDQVIHU\u000f )DUIHWFK\u00b6V VKDUH SULFH IHOO \u0007\u0013\u0011\u0019\u0013 SHU\n\nVKDUH\u000f RU \u001c\u0016\u0011\u001a\u0018\b\u000f WR FORVH DW \u0007\u0013\u0011\u0013\u0017 SHU VKDUH RQ 'HFHPEHU \u0015\u0013\u000f \u0015\u0013\u0015\u0016, WKH 1<6( VWDUWHG\n\nGHOLVWLQJ SURFHHGV IURP )DUIHWFK\u00b6V &ODVV $ RUGLQDU\\ VKDUHV, DQG WUDGLQJ ZDV LPPHGLDWHO\\\n\nVXVSHQGHG\u0011 \u0088 \u0015\u0019\u0016\u0011 \u0e60H WUDQVIHU ZDV FRPSOHWHG LQ -DQXDU\\ \u0015\u0013\u0015\u0017\u000f DQG )DUIHWFK FRQWLQXHG\n\n\n                                             \u0014\u001a\n\f     Case 1:23-cv-10982-ER               Document 73        Filed 09/30/25       Page 18 of 46\n\n\n\n\nRSHUDWLRQV DV XVXDO XQGHU WKH VDPH QDPH DQG VXEVWDQWLDOO\\ WKH VDPH OHDGHUVKLS\u000f LQFOXGLQJ\n\n1HYHV. 18 \u0088\u0088 265\u201368.\n         17F\n\n\n\n\n               &RXSDQJ\u00b6V \u0014\u0013-4 IRU WKH TXDUWHU HQGHG 0DUFK \u0016\u0014\u000f \u0015\u0013\u0015\u0017 \u00b34\u0014 \u0015\u0013\u0015\u0017 \u0014\u0013-4\u00b4 \u000f \u00bfOHG RQ\n\n0D\\ \u001b\u000f \u0015\u0013\u0015\u0017\u000f UHYHDOHG WKH PDWHULDO ZHDNQHVVHV LQ )DUIHWFK\u00b6V LQWHUQDO FRQWUROV RYHU LWV\n\n\u00bfQDQFLDO UHSRUWLQJ LQ ,WHP \u0014\u0018 RI LWV $QQXDO 5HSRUW RQ )RUP \u0015\u0013-) IRU WKH \\HDU HQGHG\n\n'HFHPEHU \u0016\u0014\u000f \u0015\u0013\u0015\u0015. \u0088 \u0015\u001a\u0014\u0011 ,Q UHOHYDQW SDUW\u000f WKH \u0014\u0013-4 VWDWHG\u001d\n                  \u0e60H XQUHPHGLDWHG PDWHULDO ZHDNQHVV LGHQWL\u00bfHG DQG GLVFORVHG E\\\n                  )DUIHWFK UHODWHG WR WKH RSHUDWLQJ H\u0d75HFWLYHQHVV RI FHUWDLQ\n                  business process and information technology controls in the\n                  New Guards business. :H DUH LQ WKH SURFHVV RI UHYLHZLQJ WKH\n                  RSHUDWLRQV RI )DUIHWFK DQG LPSOHPHQWLQJ &RXSDQJ\u00b6V LQWHUQDO FRQWURO\n                  VWUXFWXUH RYHU WKH DFTXLUHG RSHUDWLRQV\u0011 :KLOH ZH GLG QRW LQFOXGH\n                  )DUIHWFK LQ RXU DVVHVVPHQW RI LQWHUQDO FRQWURO RYHU \u00bfQDQFLDO\n                  UHSRUWLQJ DV RI 0DUFK \u0016\u0014\u000f \u0015\u0013\u0015\u0017\u000f we determined the material\n                  weakness previously disclosed by Farfetch was not fully\n                  remediated as of March 31, 2024 DQG FRXOG UHVXOW LQ D PDWHULDO\n                  PLVVWDWHPHQW RI RXU DQQXDO RU LQWHULP FRQVROLGDWHG \u00bfQDQFLDO\n                  VWDWHPHQWV WKDW ZLOO QRW EH SUHYHQWHG RU GHWHFWHG RQ D WLPHO\\ EDVLV\u0011\n                  :H DUH DFWLYHO\\ HQJDJHG LQ WKH UHPHGLDWLRQ H\u0d75RUWV.\n\nId. \u0e60H CAC IXUWKHU DOOHJHV WKDW WKH IDLU YDOXH RI )DUIHWFK DV RI &RXSDQJ\u00b6V DFTXLVLWLRQ\n\nGDWH -DQXDU\\ \u0015\u001c\u000f \u0015\u0013\u0015\u0017 GUDVWLFDOO\\ GL\u0d75HUHG IURP WKH \u00bfQDQFLDO SRVLWLRQ SURYLGHG E\\ WKH\n\n&RPSDQ\\ LQ LWV ODVW SXEOLFO\\ LVVXHG \u00bfQDQFLDO UHVXOWV IRU WKH TXDUWHU HQGHG -XQH \u0016\u0013\u000f \u0015\u0013\u0015\u0016.\n\n\u0088 \u0015\u001a\u0015\u0011\n               B. Procedural Background\n\n               -DVPLQH :X\u000f LQGLYLGXDOO\\ DQG RQ EHKDOI RI DOO RWKHUV VLPLODUO\\ VLWXDWHG\u000f \u00bfOHG WKH\n\n\u00bfUVW FRPSODLQW LQ WKLV FRQVROLGDWHG FODVV DFWLRQ on 'HFHPEHU \u0014\u001c\u000f \u0015\u0013\u0015\u0016. Doc 1. \u0e60UHH\n\nDOOHJHG PHPEHUV RI WKH SXWDWLYH FODVV \u00bfOHG PRWLRQV VHHNLQJ DSSRLQWPHQW DV lead\n\n\n\n\n18\n  1HYHV VWHSSHG GRZQ DV &(2 RQ )HEUXDU\\ \u0014\u0018\u000f \u0015\u0013\u0015\u0017\u0011 \u0088 \u0015\u0019\u001c\u0011 +LV GHSDUWXUH ZDV SDUW RI D VWULQJ RI OD\\R\u0d75V\u0011\nId.\n\n\n\n                                                   18\n\f     Case 1:23-cv-10982-ER             Document 73          Filed 09/30/25         Page 19 of 46\n\n\n\n\nSODLQWL\u0d75\u0011 19 2Q 2FWREHU \u0015\u0013\u000f \u0015\u0013\u0015\u0016\u000f WZR PRQWKV SULRU WR WKH \u00bfOLQJ RI WKH DERYH-FDSWLRQHG\n         18F\n\n\n\n\nDFWLRQ\u000f D UHODWHG VHFXULWLHV FODVV DFWLRQ DVVHUWLQJ VXEVWDQWLDOO\\ WKH VDPH FODLPV ZDV \u00bfOHG LQ\n\nWKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH 'LVWULFW RI 0DU\\ODQG\u000f Ragan v. Farfetch Limited et\n\nal., No. 8:23-cv-\u0013\u0015\u001b\u0018\u001a '\u0011 0G\u0011 \u0011 'RF \u0014\u0017 DW \u0015\u0011 2Q )HEUXDU\\ \u0019\u000f \u0015\u0013\u0015\u0017\u000f WKH &RXUW\n\nFRQVROLGDWHG WKH FDVHV, and )HUQDQGR 6XOLFKLQ and <XDQ]KH )X ZHUH DSSRLQWHG lead\n\nSODLQWL\u0d75V\u000f DQG /HYL      .RUVLQVN\\\u000f //3 DQG +DJHQV %HUPDQ 6RERO 6KDSLUR //3 ZHUH\n\nDSSRLQWHG co-lead cRXQVHO. Doc. 23. In WKDW 2UGHU\u000f WKH &RXUW GLUHFWHG 3ODLQWL\u0d75V WR \u00bfOH DQ\n\nDPHQGHG FRPSODLQW LQ WKH FRQVROLGDWHG FDVH RU GHVLJQDWH WKH H[LVWLQJ FRPSODLQW DV WKH\n\nRSHUDWLYH FRPSODLQW\u0011 Id. \u0e60H &RXUW DOVR GLUHFWHG 'HIHQGDQWV DQd co-lead SODLQWL\u0d75V to\n\nPHHW DQG FRQIHU UHJDUGLQJ VFKHGXOLQJ. Id.\n\n        2Q -XQH \u0015\u0014\u000f \u0015\u0013\u0015\u0017\u000f lead SODLQWL\u0d75V \u00bfOHG WKH C$&\u000f DOOHJLQJ WZR FRXQWV\u001d (1) violation\n\nRI 6HFWLRQ \u0014\u0013 E RI WKH ([FKDQJH $FW \u0014\u0018 8\u00116\u0011&\u0011 \u0086\u001a\u001bM E DQG 5XOH \u0014\u0013E-\u0018 \u0014\u001a &\u0011)\u00115\u0011\n\n\u0086\u0015\u0017\u0013\u0011\u0014\u0013E-5), and (2) a YLRODWLRQ RI 6HFWLRQ \u0015\u0013 D RI WKH ([FKDQJH $FW E\\ WKH ,QGLYLGXDO\n\n'HIHQGDQWV\u0011 'RF\u0011 \u0016\u0017\u0011 \u0e60H \u0014\u001b6-SDJH &$& FRQWDLQV \u0018\u0015\u0018 SDUDJUDSKV\u000f \u0014\u001a\u0014 RI ZKLFK LQFOXGH\n\nEORFN TXRWDWLRQV FRSLHG DQG SDVWHG GLUHFWO\\ IURP RYHU \u001b\u0013 GL\u0d75HUHQW GLVFORVXUHV IURP\n\n)HEUXDU\\ \u0015\u0017\u000f \u0015\u0013\u0015\u0015 WKURXJK 'HFHPEHU \u0014\u001a\u000f \u0015\u0013\u0015\u0016\u000f LQFOXVLYH.\n\n        2Q 6HSWHPEHU \u0014\u0014\u000f \u0015\u0013\u0015\u0017\u000f WKH ,QGLYLGXDO 'HIHQGDQWV \u00bfOHG D PRWLRQ WR GLVPLVV WKH\n\nCAC LQ LWV HQWLUHW\\\u000f ZLWK SUHMXGLFH\u000f DQG D UHTXHVW IRU MXGLFLDO QRWLFH LQ VXSSRUW RI WKHLU\n\nPRWLRQ WR GLVPLVV\u0011 'RFV\u0011 \u0017\u0016\u000f \u0017\u0019\u0011 \u0e60H ,QGLYLGXDO 'HIHQGDQWV DUJXH WKDW WKH &$& SOHDGV\n\nQR YLDEOH WKHRU\\ RI VHFXULWLHV IUDXG DQG VKRXOG WKHUHIRUH EH GLVPLVVHG\u0011 'RF\u0011 \u0017\u0017 DW \u0014\u0013\u0011\n\n\n\n19\n  \u0e60H IROORZLQJ LQGLYLGXDOV PRYHG WR DSSRLQW /HDG 3ODLQWL\u0d75 LQ WKH 6'1< DFWLRQ\u001d OQ 'HFHPEHU \u0014\u001c\u000f \u0015\u0013\u0015\u0016\u000f\nPRYDQW 0LFKDHO %LHYHWVNL PRYHG WKH &RXUW WR DSSRLQW %LHYHWVNL DV OHDG SODLQWL\u0d75 DQG \u0e60H 5RVHQ /DZ )LUP\u000f\n3\u0011$\u0011 DV OHDG FRXQVHO\u0011 'RF\u0011 \u0018\u0011 $OVR RQ 'HFHPEHU \u0014\u001c\u000f \u0015\u0013\u0015\u0016\u000f PRYDQW (GXDUGR $UFKHU 9HORVR 0DUWLQV DQG\n5HQRSRUWR,QYHVWLPHQWRV ,PRELOLiULRV\u000f /'$ \u00b30DUWLQV\u00b4 PRYHG WKH &RXUW WR DSSRLQW 0DUWLQV DV Lead\nPODLQWL\u0d75 DQG WR DSSURYH WKH SURSRVHG VHOHFWLRQ RI 3RPHUDQW] //3 DV OHDG FRXQVHO IRU WKH &ODVV\u0011 'RF\u0011 \u001b\u0011\n/DVWO\\\u000f RQ -DQXDU\\ \u0015\u000f \u0015\u0013\u0015\u0017\u000f )HUQDQGR 6XOLFKLQ\u000f LQGLYLGXDOO\\ DQG RQ EHKDOI RI /\\[RU 2YHUVHDV +ROGLQJV /WG\u0011\nDQG &LQHUJ\\ $GYLVRUV /WG\u0011 \u00b36XOLFKLQ\u00b4 \u000f PRYHG WKH &RXUW WR DSSRLQW 6XOLFKLQ DV /HDG 3ODLQWL\u0d75 DQG /HYL\n.RUVLQVN\\\u000f //3 DV /HDG &RXQVHO\u0011 'RF\u0011 \u0014\u001a\u0011 0DUWLQV\u000f $OWDPLPL\u000fDQG 6XOLFKLQ\u000f DORQJ ZLWK WZR RWKHU\nLQGLYLGXDOV\u2014)HUQDQGR 6XOLFKLQ DQG <XDQ]KH )X\u2014PRYHG VHSDUDWHO\\ WR VHHN DSSRLQW DV /HDG 3ODLQWL\u0d75 LQ WKH\n5DJDQ 0DU\\ODQG $FWLRQ\u0011 'RF\u0011 \u0015\u0016 DW \u0015\u0011\n\n\n\n                                                   19\n\f      Case 1:23-cv-10982-ER        Document 73         Filed 09/30/25       Page 20 of 46\n\n\n\n\n6SHFL\u00bfFDOO\\\u000f WKH ,QGLYLGXDO 'HIHQGDQWV DUJXH WKDW 3ODLQWL\u0d75V GLG QRW SOHDG DQ\\ DFWLRQDEOH\n\nPLVVWDWHPHQW RU RPLVVLRQ DQG\u000f LQVWHDG\u000f WKH &$& \u00b3VHQGV UHDGHUV RQ D VFDYHQJHU KXQW\n\nWKURXJK ODUJH EORFN TXRWDWLRQV H[FHUSWHG IURP PRUH WKDQ \u001b\u0013 GL\u0d75HUHQW GLVFORVXUHV RYHU D\n\nQHDUO\\ WZR-\\HDU SHULRG\u000f\u00b4 LQ ZKDW FRQVWLWXWHV SX]]OH-SOHDGLQJ\u0011 'RF\u0011 \u0017\u0017 DW \u0014\u0014\u0011 \u0e60H\n\n,QGLYLGXDO 'HIHQGDQWV DGG WKDW QHDUO\\ DOO RI WKH FKDOOHQJHG VWDWHPHQWV DUH (i) inactionable\n\nH[SUHVVLRQV RI FRUSRUDWH RSWLPLVP\u000f LL IRUZDUG-ORRNLQJ VWDWHPHQWV SURWHFWHG E\\ WKH\n\n36/5$ VDIH KDUERU\u000f DQG\u0012RU LLL RSLQLRQ VWDWHPHQWV\u0011 'RF\u0011 \u0017\u0017 DW \u0014\u0014\u0011 /DVWO\\\u000f WKH ,QGLYLGXDO\n\n'HIHQGDQWV DUJXH WKDW WKH 3ODLQWL\u0d75V GR QRW\u2014and cannot\u2014SOHDG IDFWV WR PHHW WKH UHTXLVLWH\n\n\u00b3VWURQJ\u00b4 LQIHUHQFH WKDW WKH 'HIHQGDQWV DFWHU ZLWK VFLHQWHU\u0011 'RF\u0011 \u0017\u0017 DW \u0014\u0015\u0011\nII.      LEGAL STANDARDS\n         A. Rule 12(b)6\n\n         :KHQ UXOLQJ RQ D PRWLRQ WR GLVPLVV SXUVXDQW WR 5XOH \u0014\u0015 E \u0019 \u000f WKH &RXUW PXVW\n\nDFFHSW DOO IDFWXDO DOOHJDWLRQV LQ WKH FRPSODLQW DV WUXH DQG GUDZ DOO UHDVRQDEOH LQIHUHQFHV\n\nLQ WKH SODLQWL\u0d75\u00b6V IDYRU\u0011 See Koch, 699 F.3d at \u0014\u0017\u0018\u0011 +RZHYHU\u000f WKH &RXUW LV QRW UHTXLUHG WR\n\nFUHGLW \u00b3PHUH FRQFOXVRU\\ VWDWHPHQWV\u00b4 RU \u00b3>W@KUHDGEDUH UHFLWDOV RI WKH HOHPHQWV RI D FDXVH\n\nRI DFWLRQ\u0011\u00b4 Ashcroft v. Iqbal\u000f \u0018\u0018\u0019 8\u00116\u0011 \u0019\u0019\u0015\u000f \u0019\u001a\u001b \u0015\u0013\u0013\u001c FLWLQJ Bell Atlantic Corporation\n\nv. Twombly, \u0018\u0018\u0013 8\u00116\u0011 \u0018\u0017\u0017\u000f \u0018\u0018\u0018 \u0015\u0013\u0013\u001a \u0011 \u00b37R VXUYLYH D PRWLRQ WR GLVPLVV\u000f D FRPSODLQW\n\nPXVW FRQWDLQ VX\u0d76FLHQW IDFWXDO PDWWHU \u0011\u0011\u0011 WR \u00b5VWDWH D FODLP WR UHOLHI WKDW LV SODXVLEOH RQ LWV\nIDFH\u0011\u00b6\u00b4 Id\u0011 DW \u0019\u001a\u001b TXRWLQJ Twombly\u000f \u0018\u0018\u0013 8\u00116\u0011 DW \u0018\u001a\u0013 \u0011 $ FODLP LV IDFLDOO\\ SODXVLEOH\n\n\u00b3ZKHQ WKH SODLQWL\u0d75 SOHDGV IDFWXDO FRQWHQW WKDW DOORZV WKH FRXUW WR GUDZ WKH UHDVRQDEOH\n\nLQIHUHQFH WKDW WKH GHIHQGDQW LV OLDEOH IRU WKH PLVFRQGXFW DOOHJHG\u0011\u00b4 Id\u0011 FLWLQJ Twombly,\n\n\u0018\u0018\u0013 8\u00116\u0011 DW \u0018\u0018\u0019 \u0011 0RUH VSHFL\u00bfFDOO\\\u000f WKH SODLQWL\u0d75 PXVW DOOHJH VX\u0d76FLHQW IDFWV WR VKRZ\n\n\u00b3PRUH WKDQ D VKHHU SRVVLELOLW\\ WKDW D GHIHQGDQW KDV DFWHG XQODZIXOO\\\u0011\u00b4 Id\u0011 ,I WKH SODLQWL\u0d75\n\nKDV QRW \u00b3QXGJHG >KLV@ FODLPV DFURVV WKH OLQH IURP FRQFHLYDEOH WR SODXVLEOH\u000f >WKH@\n\nFRPSODLQW PXVW EH GLVPLVVHG\u0011\u00b4 Twombly\u000f \u0018\u0018\u0013 8\u00116\u0011 DW \u0018\u001a\u0013\u0011\n\n         \u0e60H TXHVWLRQ LQ D 5XOH \u0014\u0015 E \u0019 PRWLRQ WR GLVPLVV \u00b3LV QRW ZKHWKHU D SODLQWL\u0d75 ZLOO\n\nXOWLPDWHO\\ SUHYDLO EXW ZKHWKHU WKH FODLPDQW LV HQWLWOHG WR R\u0d75HU HYLGHQFH WR VXSSRUW WKH\n\n\n                                              20\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25       Page 21 of 46\n\n\n\n\nFODLPV\u0011\u00b4 Sikhs for Justice v. Nath\u000f \u001b\u001c\u0016 )\u0011 6XSS\u0011 \u0015G \u0018\u001c\u001b\u000f \u0019\u0014\u0018 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0015 TXRWLQJ\n\nVillager Pond, Inc. v. Town of Darien\u000f \u0018\u0019 )\u0011\u0016G \u0016\u001a\u0018\u000f \u0015\u001a\u001b \u0015G &LU\u0011 \u0014\u001c\u001c\u0018 \u0011 \u00b3>7@KH SXUSRVH\n\nRI )HGHUDO 5XOH RI &LYLO 3URFHGXUH \u0014\u0015 E \u0019 \u00b5LV WR WHVW\u000f LQ D VWUHDPOLQHG IDVKLRQ\u000f WKH\n\nIRUPDO VX\u0d76FLHQF\\ RI WKH SODLQWL\u0d75\u00b6V VWDWHPHQW RI D FODLP IRU UHOLHI ZLWKRXW UHVROYLQJ D\n\nFRQWHVW UHJDUGLQJ LWV VXEVWDQWLYH PHULWV\u000f\u00b6\u00b4 DQG ZLWKRXW UHJDUG IRU WKH ZHLJKW RI WKH\n\nHYLGHQFH WKDW PLJKW EH R\u0d75HUHG LQ VXSSRUW RI WKH SODLQWL\u0d75\u00b6V FODLPV\u0011 Halebian v. Berv\u000f \u0019\u0017\u0017\n\n)\u0011\u0016G \u0014\u0015\u0015\u000f \u0014\u0016\u0013 \u0015G &LU\u0011 \u0015\u0013\u0014\u0014 TXRWLQJ Global Network Communications, Inc. v. City of\n\nNew York, \u0017\u0018\u001b )\u0011\u0016G \u0014\u0018\u0013\u000f \u0014\u0018\u0018 \u0015G &LU\u0011 \u0015\u0013\u0013\u0019 \u0011 )XUWKHUPRUH\u000f \u00b3RQO\\ D FRPSODLQW WKDW VWDWHV\n\nD SODXVLEOH FODLP IRU UHOLHI VXUYLYHV D PRWLRQ WR GLVPLVV\u00b4 DQG \u00b3>G@HWHUPLQLQJ ZKHWKHU D\n\nFRPSODLQW VWDWHV D SODXVLEOH FODLP IRU UHOLHI ZLOO \u0011\u0011\u0011 EH D FRQWH[W-VSHFL\u00bfF WDVN WKDW UHTXLUHV\n\nWKH UHYLHZLQJ FRXUW WR GUDZ RQ LWV MXGLFLDO H[SHULHQFH DQG FRPPRQ VHQVH\u0011\u00b4 Iqbal, 556\n\n8\u00116\u0011 DW \u0019\u001a\u001c\u0011\n       B. Rule 9(b)\n\n       %HFDXVH FODLPV XQGHU 6HFWLRQ \u0014\u0013 E RI WKH ([FKDQJH $FW DQG 5XOH \u0014\u0013E-5\n\nWKHUHXQGHU VRXQG LQ IUDXG\u000f WKH\\ DUH VXEMHFW WR WKH KHLJKWHQHG SOHDGLQJ UHTXLUHPHQWV RI\n\n)HG\u0011 5\u0011 &LY\u0011 3\u0011 \u001c E DQG WKH 3ULYDWH 6HFXULWLHV /LWLJDWLRQ 5HIRUP $FW WKH \u00b336/5$\u00b4 \u0011\n\nNovak v. Kasaks, 216 F.3d 300, 306\u2013\u0013\u001a \u0015G &LU\u0011 \u0015\u0013\u0013\u0013 \u0011 5XOH \u001c E UHTXLUHV WKDW WKH\n\nFRPSODLQW \u00b3VWDWH ZLWK SDUWLFXODULW\\ WKH FLUFXPVWDQFHV FRQVWLWXWLQJ IUDXG\u0011\u00b4 )HG\u0011 5\u0011 &LY\u0011 3\u0011\n\u001c E \u0011 7R VDWLVI\\ WKDW UHTXLUHPHQW\u000f WKH FRPSODLQW PXVW\u001d \u00b3 \u0014 VSHFLI\\ WKH VWDWHPHQWV WKDW WKH\n\nSODLQWL\u0d75 FRQWHQGV ZHUH IUDXGXOHQW\u000f \u0015 LGHQWLI\\ WKH VSHDNHU\u000f \u0016 VWDWH ZKHUH DQG ZKHQ WKH\n\nVWDWHPHQWV ZHUH PDGH\u000f DQG \u0017 H[SODLQ ZK\\ WKH VWDWHPHQWV ZHUH IUDXGXOHQW\u0011\u00b4 ATSI\n\nCommunications, Inc. v. Shaar Fund, Limited, \u0017\u001c\u0016 )\u0011\u0016G \u001b\u001a\u000f \u001c\u001c \u0015G &LU\u0011 \u0015\u0013\u0013\u001a FLWLQJ\n\nNovak\u000f \u0015\u0014\u0019 )\u0011\u0016G DW \u0016\u0013\u0019 \u0011 \u0e60H 36/5$ LPSRVHV VLPLODU UHTXLUHPHQWV RQ FODLPV EURXJKW\n\nXQGHU WKH ([FKDQJH $FW\u001d \u00b3WKH FRPSODLQW VKDOO VSHFLI\\ HDFK VWDWHPHQW DOOHJHG WR KDYH\n\nEHHQ PLVOHDGLQJ\u000f WKH UHDVRQ RU UHDVRQV ZK\\ WKH VWDWHPHQW LV PLVOHDGLQJ\u000f DQG\u000f LI DQ\n\nDOOHJDWLRQ UHJDUGLQJ WKH VWDWHPHQW RU RPLVVLRQ LV PDGH RQ LQIRUPDWLRQ DQG EHOLHI\u000f WKH\n\n\n\n\n                                              21\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25      Page 22 of 46\n\n\n\n\nFRPSODLQW VKDOO VWDWH ZLWK SDUWLFXODULW\\ DOO IDFWV RQ ZKLFK WKDW EHOLHI LV IRUPHG\u0011\u00b4 \u0014\u0018\n\n8\u00116\u0011&\u0011 \u0086 \u001a\u001bX-\u0017 E \u0014 \u0011 \u0e60H 36/5$ IXUWKHU UHTXLUHV WKDW WKH FRPSODLQW \u00b3VWDWH ZLWK\n\nSDUWLFXODULW\\ IDFWV JLYLQJ ULVH WR D VWURQJ LQIHUHQFH WKDW WKH GHIHQGDQW DFWHG ZLWK WKH\n\nUHTXLUHG VWDWH RI PLQG\u00b4 ZLWK UHVSHFW WR HDFK DOOHJHG PLVVWDWHPHQW RU RPLVVLRQ\u0011 \u0014\u0018 8\u00116\u0011&\u0011\n\n\u0086 \u001a\u001bX-\u0017 E \u0015 $ \u0011 $ FRPSODLQW ZLOO VXUYLYH XQGHU WKDW KHLJKWHQHG VWDQGDUG \u00b3RQO\\ LI D\n\nUHDVRQDEOH SHUVRQ ZRXOG GHHP WKH LQIHUHQFH RI VFLHQWHU FRJHQW DQG DW OHDVW DV FRPSHOOLQJ\n\nDV DQ\\ RSSRVLQJ LQIHUHQFH RQH FRXOG GUDZ IURP WKH IDFWV DOOHJHG\u0011\u00b4 Tellabs, Inc. v. Makor\n\nIssues & Rights, Ltd., 551 U.S. 308, \u0016\u0015\u0017 \u0015\u0013\u0013\u001a .\n       C. External Documents\n\n       ,Q UHVROYLQJ D PRWLRQ WR GLVPLVV XQGHU 5XOH \u0014\u0015 E \u0019 \u000f FRXUWV JHQHUDOO\\ PD\\ QRW\n\nFRQVLGHU PDWHULDOV H[WULQVLF WR WKH FRPSODLQW\u0011 )HG\u0011 5\u0011 &LY\u0011 3\u0011 \u0014\u0015 G \u0011 +RZHYHU\u000f WKDW UXOH LV\n\nQRW DEVROXWH\u0011 ,Q DGGLWLRQ WR WKH IDFWV DOOHJHG LQ WKH FRPSODLQW\u000f FRXUWV \u00b3PD\\ FRQVLGHU DQ\\\n\nZULWWHQ LQVWUXPHQW DWWDFKHG WR WKH FRPSODLQW\u000f VWDWHPHQWV RU GRFXPHQWV LQFRUSRUDWHG LQWR\n\nWKH FRPSODLQW E\\ UHIHUHQFH\u000f OHJDOO\\ UHTXLUHG SXEOLF GLVFORVXUH GRFXPHQWV \u00bfOHG ZLWK WKH\n\n6(&\u000f DQG GRFXPHQWV SRVVHVVHG E\\ RU NQRZQ WR WKH SODLQWL\u0d75 DQG XSRQ ZKLFK LW UHOLHG LQ\n\nEULQJLQJ WKH VXLW\u0011\u00b4 ATSI Communications, \u0017\u001c\u0016 ).3d at 98\u0011 &RXUWV PD\\ DOVR FRQVLGHU\n\n\u00b3PDWWHUV RI ZKLFK MXGLFLDO QRWLFH PD\\ EH WDNHQ\u0011\u00b4 Goel v. Bunge, Ltd.\u000f \u001b\u0015\u0013 )\u0011\u0016G \u0018\u0018\u0017\u000f \u0018\u0018\u001c\n\n\u0015G &LU\u0011 \u0015\u0013\u0014\u0019 FLWDWLRQ RPLWWHG \u0011 \u0e60H &RXUW PD\\ DOVR \u00b3WDNH MXGLFLDO QRWLFH RI SXEOLF\nGLVFORVXUH GRFXPHQWV WKDW PXVW EH \u00bfOHG ZLWK WKH >6(&@ DQG GRFXPHQWV WKDW ERWK \u00b5EHDU RQ\n\nWKH DGHTXDF\\\u00b6 RI 6(& GLVFORVXUHV DQG DUH \u00b5SXEOLF GLVFORVXUH GRFXPHQWV UHTXLUHG E\\ ODZ\u0011\u00b6\u00b4\n\nSilsby v. Icahn\u000f \u0014\u001a )\u0011 6XSS\u0011 \u0016G \u0016\u0017\u001b\u000f \u0016\u0018\u0017 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0017 \u000f D\u09fc\u2019d sub nom. Lucas v. Icahn,\n\n\u0019\u0014\u0019 )HG\u0011 $SS\u00b6[\u0011 \u0017\u0017\u001b \u0015G &LU\u0011 \u0015\u0013\u0014\u0018 VXPPDU\\ RUGHU FLWLQJ Kramer v. Time Warner, Inc.,\n\n\u001c\u0016\u001a )\u0011\u0015G \u001a\u0019\u001a\u000f \u001a\u001a\u0016\u2013\u001a\u0017 \u0015G &LU\u0011 \u0014\u001c\u001c\u0014 \u001e see also In re Bank of America AIG Disclosure\n\nSecurities Litigation\u000f \u001c\u001b\u0013 )\u0011 6XSS\u0011 \u0015G \u0018\u0019\u0017\u000f \u0018\u001a\u0013 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0016 \u000f D\u09fc\u2019d\u000f \u0018\u0019\u0019 )HG\u0011 $SS\u00b6[\u0011\n\n\u001c\u0016 \u0015G &LU\u0011 \u0015\u0013\u0014\u0017 VXPPDU\\ RUGHU \u0011 +RZHYHU\u000f WKH &RXUW FDQ FRQVLGHU a FRPSDQ\\\u00b6V SXEOLF\n\n\u00bfOLQJV ZLWK WKH 6(& \u00b3\u00b5RQO\\ WR GHWHUPLQH ZKDW WKH GRFXPHQWV VWDWHG\u000f\u00b6 DQG \u00b5QRW WR SURYH\n\n\n\n\n                                             22\n\f      Case 1:23-cv-10982-ER               Document 73            Filed 09/30/25       Page 23 of 46\n\n\n\n\nWKH WUXWK RI WKHLU FRQWHQWV\u0011\u00b6\u00b4 Roth v. Jennings\u000f \u0017\u001b\u001c )\u0011\u0016G \u0017\u001c\u001c\u000f \u0018\u0013\u001c \u0015G &LU\u0011 \u0015\u0013\u0013\u001a TXRWLQJ\n\nKramer\u000f \u001c\u0016\u001a )\u0011\u0015G DW \u001a\u001a\u0017 \u0011\nIII.       DISCUSSION\n           A. Judicial Notice of External Documents\n\n           \u0e60H ,QGLYLGXDO 'HIHQGDQWV DWWDFK 29 GRFXPHQWV WR WKH 'HFODUDWLRQ RI -DVRQ &\u0011\n\n+HJW LQ VXSSRUW RI WKHLU PRWLRQ WR GLVPLVV. See 'RF\u0011 \u0017\u0018\u0011\n\n           \u0e60H CAC FLWHV DOO EXW VL[ RI WKH DWWDFKHG GRFXPHQWV:\n                x   ([KLELW \u0014\u0019\u001d )RUP \u0014\u0016* (-\u0011 1HYHV) 20;    19F\n\n\n\n\n                x   ([KLELW \u0014\u001a\u001d )RUP \u0014\u0017\u0017 (1RWLFH RI 3URSRVHG 6DOH RI 6HFXULWLHV, E.\n                    -RUGDQ) 21;\n                             20F\n\n\n\n\n                x   ([KLELW \u0014\u001b\u001d )RUP \u0014\u0017\u0017 (1RWLFH RI 3URSRVHG 6DOH RI 6HFXULWLHV, 6\u0011 3KDLU) 22;    21F\n\n\n\n\n                x   E[KLELW \u0015\u001a\u001d \u00b3\u0e60H /X[XU\\ 6OXPS\u001d :KDW\u00b6V KDSSHQLQJ ZLWK WKH ZRUOG\u00b6V\n                    ODUJHVW IDVKLRQ KRXVHV\u00b4 SXEOLVKHG LQ WKH 9DQJXDUG \u0e60LQN \u0e60DQN\u000f GDWHG\n                    1RYHPEHU \u0015\u0013\u0015\u0015;\n\n                x   ([KLELW \u0015\u001b\u001d \u201c9LUJLO $EORK\u00b6V )LQDO 2\u0d75-:KLWH &ROOHFWLRQ ,V +LV 0RVW\n                    Radical\u00b4 SXEOLVKHG LQ *4\u000f GDWHG 0DUFK \u0014\u000f \u0015\u0013\u0015\u0015; and\n\n                x   ([KLELW \u0015\u001c\u001d \u00b3$IWHU 9LUJLO \u0e60H ELOOLRQ-GROODU XQFHUWDLQW\\ LQ WKH ZDNH RI\n                    GHVLJQHU 9LUJLO $EORK\u00b6V VXGGHQ GHDWK ODVW IDOO\u00b4 SXEOLVKHG LQ \u0e60H &XW, dated\n                    $XJXVW \u0016\u0014\u000f \u0015\u0013\u0015\u0015.\n\n           $ GLVWULFW FRXUW LV HQWLWOHG WR FRQVLGHU \u00b3WKH IXOO WH[W RI WKRVH GRFXPHQWV\u00b4 SDUWLDOO\\\n\nTXRWHG LQ D FRPSODLQW EXW FRQVLGHUHG LQWHJUDO WR UXOLQJ RQ D PRWLRQ WR GLVPLVV\u0011 San\n\nLeandro Emergency Medical *URXS 3UR\u00bfW 6KDULQJ 3ODQ Y\u0011 3KLOLS 0RUULV &RPSDQLHV\u000f\n\nInc.\u000f \u001a\u0018 )\u0011\u0016G \u001b\u0013\u0014\u000f \u001b\u0013\u001c \u0015G &LU\u0011 \u0014\u001c\u001c\u0019 \u0011 +HUH\u000f VHFXULWLHV \u00bfOLQJV SDUWLDOO\\ TXRWHG LQ WKH &$&\n\nDUH LQWHJUDO WR WKH DOOHJDWLRQV EDVHG RQ VHFXULWLHV IUDXG\u0011 $FFRUGLQJO\\\u000f WKH CAC\n\n\n\n\n20\n     \u0e60H IRUP UH\u00c0HFWV 1HYHV\u00b6V KROGLQJV RI \u0017\u001c\u000f\u001b\u001a\u0019\u000f\u0015\u0015\u0016 VKDUHV DV RI 'HFHPEHU \u0016\u0014\u000f \u0015\u0013\u0015\u0016.\n21\n     \u0e60H IRUP UH\u00c0HFWV -RUGDQ\u00b6V KROGLQJV RI \u0014\u000f\u0019\u0013\u0017\u000f\u0014\u001b\u0018 VKDUHV DV RI $XJXVW \u0016\u0013\u000f \u0015\u0013\u0015\u0016.\n22\n     \u0e60H IRUP UH\u00c0HFWV 3KDLU\u00b6V KROGLQJV RI \u0014\u000f\u0015\u0014\u001a\u000f\u0015\u001b\u0016 VKDUHV DV RI $XJXVW 2, 2023.\n\n\n\n                                                      23\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25      Page 24 of 46\n\n\n\n\nLQFRUSRUDWHV WKHVH GRFXPHQWV E\\ UHIHUHQFH DQG WKH &RXUW ZLOO FRQVLGHU WKHP LQ GHFLGLQJ\n\nWKH SUHVHQW PRWLRQV.\n\n       5HJDUGLQJ WKH GRFXPHQWV QRW FLWHG LQ WKH CAC\u2014)RUP \u0014\u0016* (-\u0011 1HYHV)\u000f )RUPV \u0014\u0017\u0017\n\n((\u0011 -RUGDQ and 6\u0011 3KDLU), WKH 9DQJXDUG aUWLFOH\u000f WKH *4 aUWLFOH\u000f DQG WKH \u0e60H &XW aUWLFOH\u2014\n\nWKH &RXUW PD\\ \u00b3WDNH MXGLFLDO QRWLFH RI SXEOLF GLVFORVXUH GRFXPHQWV WKDW PXVW EH \u00bfOHG ZLWK\n\nWKH 6(&\u00b4 DV ZHOO DV GRFXPHQWV WKDW ERWK \u00b5EHDU RQ WKH DGHTXDF\\\u00b6 RI 6(& GLVFORVXUHV DQG\n\nDUH \u00b5SXEOLF GLVFORVXUH GRFXPHQWV UHTXLUHG E\\ ODZ\u000f\u00b6\u00b4 Silsby\u000f \u0014\u001a )\u0011 6XSS\u0011 \u0016G DW \u0016\u0018\u0017\u000f DQG RI\n\n\u00b3SUHVV FRYHUDJH HVWDEOLVKLQJ ZKDW LQIRUPDWLRQ H[LVWHG LQ WKH SXEOLF GRPDLQ GXULQJ\n\nSHULRGV UHOHYDQW WR WKH SODLQWL\u0d75V\u00b6 FODLPV\u0011\u00b4 In re Bank of America AIG Disclosure\n\nSecurities Litigation\u000f \u001c\u001b\u0013 )\u0011 6XSS\u0011 \u0015G DW \u0018\u001a\u0013 FLWLQJ Staehr v. Hartford Financial Services\n\nGroup Inc.\u000f \u0018\u0017\u001a )\u0011\u0016G \u0017\u0013\u0019\u000f \u0017\u0015\u0018\u2013\u0015\u0019 \u0015G &LU\u0011 \u0015\u0013\u0013\u001b \u0011 $OWKRXJK 3ODLQWL\u0d75V UDLVH REMHFWLRQV to\n\nWKH &RXUW\u00b6V FRQVLGHUDWLRQ RI WKH PDMRULW\\ RI WKH DWWDFKHG GRFXPHQWV, WKLV &RXUW PD\\ WDNH\n\nMXGLFLDO QRWLFH RI all RI WKH GRFXPHQWV DWWDFKHG WR WKH 'HIHQGDQWV\u00b6 PRWLRQ WR GLVPLVV\u0011\n       B. Section 10(b) and Rule 10(b)-5 Liability\n\n       6HFWLRQ \u0014\u0013 E RI WKH ([FKDQJH $FW SURKLELWV XVLQJ RU HPSOR\\LQJ\u000f \u00b3LQ FRQQHFWLRQ\n\nZLWK WKH SXUFKDVH RU VDOH RI DQ\\ VHFXULW\\ \u0011\u0011\u0011 DQ\\ PDQLSXODWLYH RU GHFHSWLYH GHYLFH RU\n\nFRQWULYDQFH\u000f\u00b4 \u0014\u0018 8\u00116\u0011&\u0011 \u0086 \u001a\u001bM E \u0014\u001c\u0016\u0017 \u000f ZKLOH 5XOH \u0014\u0013(b)-\u0018 FUHDWHV OLDELOLW\\ IRU D SHUVRQ\n\nZKR PDNHV \u00b3DQ\\ XQWUXH VWDWHPHQW RI D PDWHULDO IDFW RU \u0011\u0011\u0011 RPLW>V@ WR VWDWH D PDWHULDO IDFW \u0011\u0011\u0011\nLQ FRQQHFWLRQ ZLWK WKH SXUFKDVH RU VDOH RI DQ\\ VHFXULW\\\u0011\u00b4 In re OSG Securities Litigation,\n\n\u001c\u001a\u0014 )\u0011 6XSS\u0011 \u0015G \u0016\u001b\u001a\u000f \u0016\u001c\u001a 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0016 TXRWLQJ \u0014\u001a &\u0011)\u00115\u0011 \u0086 \u0015\u0017\u0013\u0011\u0014\u0013E-\u0018 \u0014\u001c\u0018\u0014 \u0011 5XOH\n\n10(b)-\u0018\u000f SURPXOJDWHG E\\ WKH 6(& WR LPSOHPHQW VHFWLRQ \u0014\u0013 E \u000f \u00b3PRUH VSHFL\u00bfFDOO\\\n\nGHOLQHDWHV ZKDW FRQVWLWXWHV D PDQLSXODWLYH RU GHFHSWLYH GHYLFH RU FRQWULYDQFH\u0011\u00b4 Press v.\n\nChemical Investment Services Corporation, \u0014\u0019\u0019 )\u0011\u0016G \u0018\u0015\u001c\u000f \u0018\u0016\u0017 \u0015G &LU\u0011 \u0014\u001c\u001c\u001c \u0011 8QGHU\n\n5XOH \u0014\u0013(b)-\u0018\u000f LW LV XQODZIXO IRU DQ\\ SHUVRQ\u000f GLUHFWO\\ RU LQGLUHFWO\\\u000f E\\ XVH RI DQ\\ PHDQV\n\nVSHFL\u00bfHG LQ VHFWLRQ \u0014\u0013 E \u001d\n            D 7R HPSOR\\ DQ\\ GHYLFH\u000f VFKHPH\u000f RU DUWL\u00bfFH WR GHIUDXG\u000f E 7R PDNH\n           DQ\\ XQWUXH VWDWHPHQW RI D PDWHULDO IDFW RU WR RPLW WR VWDWH D PDWHULDO\n\n\n\n                                             \u0015\u0017\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 25 of 46\n\n\n\n\n            IDFW QHFHVVDU\\ LQ RUGHU WR PDNH WKH VWDWHPHQWV PDGH\u000f LQ WKH OLJKW RI\n            WKH FLUFXPVWDQFHV XQGHU ZKLFK WKH\\ ZHUH PDGH\u000f QRW PLVOHDGLQJ\u000f RU\n             F 7R HQJDJH LQ DQ\\ DFW\u000f SUDFWLFH\u000f RU FRXUVH RI EXVLQHVV ZKLFK\n            RSHUDWHV RU ZRXOG RSHUDWH DV D IUDXG RU GHFHLW XSRQ DQ\\ SHUVRQ\u000f LQ\n            FRQQHFWLRQ ZLWK WKH SXUFKDVH RU VDOH RI DQ\\ VHFXULW\\\u0011\n\n\u0014\u001a &\u0011)\u00115\u0011 \u0086 \u0015\u0017\u0013\u0011\u0014\u0013(b)-5.\n\n       7R VWDWH D SULYDWH FLYLO FODLP XQGHU VHFWLRQ \u0014\u0013 E DQG 5XOH \u0014\u0013(b)-\u0018\u000f D SODLQWL\u0d75 PXVW\n\nSOHDG WKDW\u001d \u0014 WKH GHIHQGDQW PDGH D PDWHULDO PLVUHSUHVHQWDWLRQ RU RPLVVLRQ\u000f \u0015 ZLWK\n\nVFLHQWHU\u000f i.e.\u000f D ZURQJIXO VWDWH RI PLQG\u000f \u0016 LQ FRQQHFWLRQ ZLWK WKH SXUFKDVH RU VDOH RI D\n\nVHFXULW\\\u000f DQG \u0017 WKDW WKH SODLQWL\u0d75 UHOLHG RQ WKH PLVUHSUHVHQWDWLRQ RU RPLVVLRQ\u000f WKHUHE\\ \u0018\n\nFDXVLQJ HFRQRPLF ORVV\u0011 Dura Pharmaceuticals, Inc. v. Broudo\u000f \u0018\u0017\u0017 8\u00116\u0011 \u0016\u0016\u0019\u000f \u0016\u0017\u0014\u2013\u0017\u0015\n\n(2005); see also Lattanzio v. Deloitte & Touche LLP\u000f \u0017\u001a\u0019 )\u0011\u0016G \u0014\u0017\u001a\u000f \u0014\u0018\u0016 \u0015G &LU\u0011 \u0015\u0013\u0013\u001a \u0011\n\n'HIHQGDQWV FRQWHVW RQO\\ WKH \u00bfUVW WZR HOHPHQWV\u0011\n            Material Misrepresentations or Omissions\n       a. Particularity and Puzzle Pleading\n\n       'HIHQGDQWV \u00bfUVW DUJXH WKDW WKH CAC VKRXOG EH GLVPLVVHG GXH WR LPSHUPLVVLEOH\n\n\u00b3SX]]OH SOHDGLQJ\u0011\u00b4 'RF\u0011 \u0017\u0017 DW 23\u2013\u0015\u0017. 3X]]OH SOHDGLQJ\u000f RU DOOHJDWLRQV ZLWKRXW DQ\\ H\u0d75RUW\n\nWR \u00b3GHPRQVWUDWH ZLWK VSHFL\u00bfFLW\\ ZK\\ DQG KRZ HDFK VWDWHPHQW LV PDWHULDOO\\ IDOVH RU\n\nPLVOHDGLQJ\u000f\u00b4 LV LPSURSHU DQG DORQH ZDUUDQWV GLVPLVVDO\u000f DV LW FRQVWLWXWHV D IDLOXUH WR PHHW\n\n5XOH \u001c E DQG WKH 36/5$\u00b6V SOHDGLQJ UHTXLUHPHQWV. %RFD 5DWRQ )LUH\u00bfJKWHUV             3ROLFH\nPension Fund v. Bahash\u000f \u0018\u0013\u0019 )\u0011 $SS\u00b6[ \u0016\u0015\u000f \u0016\u001a\u201338 \u0015G &LU\u0011 \u0015\u0013\u0014\u0015 LQWHUQDO TXRWDWLRQV\n\nRPLWWHG .\n\n       +HUH\u000f WKH CAC LQFOXGHV LPSHUPLVVLEOH SX]]OH SOHDGLQJ ZDUUDQWLQJ GLVPLVVDO\u0011\n\n3ODLQWL\u0d75V HPSOR\\ D \u001486-SDJH\u000f 525-SDUDJUDSK &RPSODLQW\u000f RI ZKLFK \u0014\u001a\u0014 SDUDJUDSKV\n\nVSDQQLQJ 80 SDJHV DUH GHGLFDWHG WR UHFLWLQJ 'HIHQGDQWV\u00b6 VWDWHPHQWV GXULQJ WKH &ODVV\n\n3HULRG. \u0088\u0088 \u0015\u001b\u0017\u2013\u0017\u0018\u0017\u0011 See In re PetroChina Co. Ltd., Securities Litig.\u000f \u0014\u0015\u0013 )\u0011 6XSS\u0011 \u0016G\n\n\u0016\u0017\u0013\u000f \u0016\u0018\u0019 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0018 \u00b3GLVWULFW FRXUWV VKRXOG QRW KDYH WR VHDUFK WKH ORQJ TXRWDWLRQV\n\nLQ WKH FRPSODLQW IRU SDUWLFXODU IDOVH VWDWHPHQWV\u000f DQG WKHQ GHWHUPLQH RQ LWV RZQ LQLWLDWLYH\n\n\n\n\n                                            25\n\f   Case 1:23-cv-10982-ER          Document 73         Filed 09/30/25      Page 26 of 46\n\n\n\n\nKRZ DQG ZK\\ WKH VWDWHPHQWV ZHUH IDOVH DQG KRZ RWKHU IDFWV PLJKW VKRZ D VWURQJ\n\nLQIHUHQFH RI VFLHQWHU\u0011\u00b4 LQWHUQDO TXRWDWLRQV RPLWWHG \u0011\n\n       \u0e60H VHFWLRQ WLWOHG \u00b3)DOVH DQG 0LVOHDGLQJ 6WDWHPHQWV\u00b4 FRQWDLQV OHQJWK\\ EORFN\n\nTXRWDWLRQV WDNHQ IURP RYHU \u001b\u0013 GLVFORVXUHV RYHU D QHDUO\\ WZR-\\HDU SHULRG\u000f IROORZHG E\\ D\n\n\u00b3\u00b5FRQFOXVRU\\ DVVHUWLRQ WKDW WKH\\ ZHUH IDOVHO\\ PDGH\u00b6 GXH WR D ODXQGU\\ OLVW RI JHQHUDOL]HG\n\nUHDVRQV\u0011\u00b4 'RF\u0011 \u0017\u0017 DW \u0015\u0017\u0011 3ODLQWL\u0d75 XVHV VRPH YDULDWLRQ RI WKH VDPH nine RU VR JHQHUDOL]HG\n\nUHDVRQV WR DOOHJH ZK\\ 81 SDJHV RI TXRWDWLRQV WDNHQ IURP D P\\ULDG RI \u00bfQDQFLDO UHSRUWV DQG\n\nLQYHVWRU FDOOV VSDQQLQJ DOPRVW WZR \\HDUV ZHUH IDOVH RU PLVOHDGLQJ ZKHQ PDGH\u0011 Plumbers\n\n  6WHDP\u00bfWWHUV /RFal 773 Pension Fund v. Danske Bank A/S, No. 19-cv-\u0013\u0013\u0015\u0016\u0018 9(& \u000f\n\n\u0015\u0013\u0015\u0013 :/ \u0017\u001c\u0016\u001a\u0017\u0019\u0014\u000f DW \u0016 6\u0011'\u00111\u0011<\u0011 $XJ\u0011 \u0015\u0017\u000f \u0015\u0013\u0015\u0013 FRPSODLQW ZKLFK \u00b3XVH>G@ WZR WHUVH\n\nSDUDJUDSKV JHQHULFDOO\\ WR DOOHJH ZK\\ \u0016\u0019 SDJHV RI TXRWDWLRQV VSDQQLQJ \u001b\u0016 SDUDJUDSKV\n\nFRQWDLQ>HG@ IDOVH RU PLVOHDGLQJ VWDWHPHQWV\u00b4 IDLOHG WR SOHDG ZLWK UHTXLVLWH SDUWLFXODULW\\ \u000f\n\nD\u09fc\u00b6G\u000f \u0014\u0014 )\u0011\u0017WK \u001c\u0013 \u0015G &LU\u0011 \u0015\u0013\u0015\u0014 \u00b33OXPEHUV ,,\u00b4 \u0011 \u00b3\u0e60DW LV IDU WRR JUHDW D ZHLJKW IRU\n\nVZHHSLQJ H[SODQDWLRQV RI IUDXG WR EHDU\u0011\u00b4 Id.\n\n       3ODLQWL\u0d75V SXUSRUW WR DVVLVW WKH UHDGHU LQ LGHQWLI\\LQJ WKH IDOVH RU PLVOHDGLQJ\n\nVWDWHPHQWV E\\ EROGLQJ DQG LWDOLFL]LQJ VHYHUDO TXRWHV WKURXJKRXW WKH 81 SDJHV RI\n\nVWDWHPHQWV ZKHUH WKH\\ GHHP LW QHFHVVDU\\\u000f 'RF\u0011 \u0017\u001b DW \u0015\u0019\u000f EXW WKDW GRHV VX\u0d76FH WR FXUH WKH\n\nCAC RI LWV GH\u00bfFLHQFLHV. 7R VWDUW\u000f WKH PDMRULW\\ RI WKH EORFN TXRWHV do not FRQWDLQ EROGIDFH\n\nRU LWDOLFV\u000f OHDYLQJ WKH UHDGHU WR JXHVV ZKLFK SKUDVHV LQ WKH EORFN TXRWHV\u000f ZKLFK DUH RIWHQ\n\nVHYHUDO SDUDJUDSKV ORQJ\u000f DUH WKH PLVVWDWHPHQWV WKDW IRUP WKH EDVLV RI 3ODLQWL\u0d75V FDXVeV RI\n\naction. IQ WKH LQVWDQFHV ZKHUH WKHUH DUH EROGHG DQG LWDOLFL]HG VWDWHPHQWV\u000f tKH UHDGHU LV\n\nVWLOO OHIW WR JXHVV ZKDW LQ WKH EROGHG DQG LWDOLFL]HG VWDWHPHQWV DUH IDOVH RU PLVOHDGLQJ DQG\n\nZK\\.\n\n       3ODLQWL\u0d75V DVVHUW WKDW \u00b3'HIHQGDQWV\u00b6 PLVVWDWHPHQWV ZHUH RIWHQ IDOVH RU PLVOHDGLQJ E\\\n\nRPLVVLRQ\u000f ZKLFK UHTXLUH ORQJHU TXRWDWLRQV WR LOOXVWUDWH DQ DEVHQFH DQG UHEXW DFFXVDWLRQV\n\nRI FKHUU\\-SLFNHG TXRWHV\u0011\u00b4 'RF\u0011 \u0017\u001b DW \u0015\u0019\u0011 \u0e60LV\u000f KRZHYHU\u000f GRHV QRW UHFWLI\\ 3ODLQWL\u0d75\u00b6V\n\nIDLOXUH WR PHHW WKH SDUWLFXODULW\\ UHTXLUHPHQW\u0011 'HIHQGDQWV DUJXH WKDW\u000f LQ IDLOLQJ WR VSHFLI\\\n\n\n                                             26\n\f     Case 1:23-cv-10982-ER             Document 73           Filed 09/30/25         Page 27 of 46\n\n\n\n\nZKLFK SDUW RI WKH VWDWHPHQWV DUH PLVOHDGLQJ RU IDOVH\u000f 3ODLQWL\u0d75V FRQFHGH WKDW WKH CAC\n\nIDLOHG WR VSHFLI\\ ZKLFK SDUWV RI WKH \u001b\u0013\u000e GLVFORVXUHV WKH\\ FKDOOHQJH\u0011 'RF\u0011 \u00180 DW \u001a\u0011 \u0e60H\n\n&RXUW DJUHHV\u0011 3ODLQWL\u0d75V IXUWKHU DWWHPSW WR MXVWLI\\ WKHLU XVH RI JHQHUDOL]HG UHDVRQV E\\\n\nDOOHJLQJ WKDW PDQ\\ RI WKH 'HIHQGDQWV\u00b6 VWDWHPHQWV ZHUH IDOVH RU PLVOHDGLQJ IRU \u00b3FRPPRQ\u000f\n\nRYHUODSSLQJ UHDVRQV\u00b4 DQG WKHUHIRUH \u00b3WKH VDPH HYLGHQFH ZDV SUREDWLYH RI IDOVLW\\ IRU PDQ\\\n\nPLVVWDWHPHQWV\u0011\u00b4 'RF\u0011 \u0017\u001b DW \u0015\u0019\u0011 (YHQ DVVXPLQJ WKLV LV WUXH\u000f 3ODLQWL\u0d75\u00b6V ten RU VR\n\nJHQHUDOL]HG UHDVRQV H[SODLQLQJ ZK\\ WKH DOOHJHV VWDWHPHQWV DUH IDOVH RU PLVOHDGLQJ DUH\n\nFRQFOXVRU\\\u0011 23\n             22F\n\n\n\n\n        \u0e60H &RXUW LV XQDEOH WR PHDQLQJIXOO\\ GLVWLQJXLVK WKH CAC IURP RWKHUV LQ WKLV\n\nCLUFXLW WKDW KDYH EHHQ GLVPLVVHG IRU IDLOXUH WR SOHDG IUDXG ZLWK WKH UHTXLVLWH SDUWLFXODULW\\\u0011\n\n\u0e60H CAC IDLOV WR \u00b3GHVFULEH>@ ZKDW SRUWLRQ RI HDFK TXRWDWLRQ FRQVWLWXWHV D IDOVH\n\nUHSUHVHQWDWLRQ\u000f\u00b4 LQVWHDG \u00b3SODFLQJ WKH EXUGHQ RQ WKH &RXUW WR VRUW RXW WKH DOOHJHG\n\nPLVUHSUHVHQWDWLRQV DQG WKHQ PDWFK WKHP ZLWK WKH FRUUHVSRQGLQJ DGYHUVH IDFWV\u0011\u00b4\n\nConstruction Laborers Pension Trust for Southern California v. CBS Corp.\u000f \u0017\u0016\u0016 )\u0011 6XSS\u0011\n\n3d 515, 530 (S.D.N.Y. 2020) (LQWHUQDO TXRWDWLRQV RPLWWHG). \u0e60H CAC LV FRQVHTXHQWO\\\n\nGLVPLVVHG IRU IDLOLQJ WR PHHW WKH SOHDGLQJ VWDQGDUGV RI 5XOH \u001c E DQG WKH 36/5$\u0011\n        b. 3ODLQWL\u09fcV )DLO WR 3OHDG 0DWHULDO 0LVUHSUHVHQWDWLRQV RU 2PLVVLRQV\u0011\n        (YHQ LI WKH CAC KDG PHW WKH SOHDGLQJ VWDQGDUGV RI 5XOH \u001c E DQG WKH 36/5$,\n3ODLQWL\u0d75V KDYH QRW DOOHJHG D PDWHULDOO\\ IDOVH RU PLVOHDGLQJ VWDWHPHQW WKDW FRXOG VXVWDLQ D\n\n\n\n23\n   \u0e60e ten UHDVRQV 3ODLQWL\u0d75V DOOHJH DUH\u001d \u0014 )DUIHWFK ODFNHG SURSHU RYHUVLJKW FRQFHUQLQJ WKH FDVK QHHGV RI\nGL\u0d75HUHQW GLYLVLRQV RI WKH )DUIHWFK *URXS\u000f LQFOXGLQJ inter alia, NGG; (2) )DUIHWFK ZDV H[SHULHQFLQJ\nVLJQL\u00bfFDQW FKDOOHQJHV PDQDJLQJ LWV RSHUDWLQJ FRVWV UHODWLQJ WR VXSSO\\ FKDLQ DQG LQYHQWRU\\ ZKHQ LW PDGH WKH\nDOOHJHGO\\ IDOVH RU PLVOHDGLQJ VWDWHPHQWV\u001e (3) KLJK 9$7 FRVWV DQG ORZ WDNH UDWHV QHJDWLYHO\\ LPSDFWHG\n)DUIHWFK\u00b6V FDVK SRVLWLRQ, E%,7'$\u000f DQG JURVV PDUJLQV; \u0017 9LROHW *UH\\ ZDV DOUHDG\\ VWUXJJOLQJ \u00bfQDQFLDOO\\\nZKHQ )DUIHWFK DFTXLUHd it; (5) )DUIHWFK ZDV H[SHULHQFLQJ D VORZGRZQ LQ &KLQD DQG WKH 8\u00116\u0011\u2014LWV WZR\nODUJHVW PDUNHWV\u2014ZKHQ WKH DOOHJHGO\\ IDOVH RU PLVOHDGLQJ VWDWHPHQWV ZHUH PDGH\u001e (6) WKH KDOW RI VDOHV LQ\n5XVVLD\u2014)DUIHWFK\u00b6V WKLUG ODUJHVW PDUNHW\u2014KDG DOUHDG\\ QHJDWLYHO\\ LPSDFWHG )DUIHWFK ZKHQ WKH DOOHJHGO\\\nIDOVH RU PLVOHDGLQJ VWDWHPHQWV ZHUH PDGH\u001e \u001a )DUIHWFK\u00b6V RSHUDWLRQDO DQG LQIRUPDWLRQDO WHFKQRORJ\\ FRQWUROV\nIRU 1** ZHUH LQDSSURSULDWHO\\ GHVLJQHG DQG WKHUHIRUH )DUIHWFK \\ ODFNHG DGHTXDWH LQWHUQDO FRQWUROV RYHU\n1**\u00b6V \u00bfQDQFLDO UHSRUWLQJ RI UHYHQXH DQG *09; (8) )DUIHWFK LPSURSHUO\\ UHFRJQL]ed VDOHV; (9) 5HHERN KDG\nEHHQ RYHUYDOXHG DW WKH WLPH RI DFTXLVLWLRQ; and (10) )DUIHWFK\u00b6V JXLGDQFH RU H[SHFWDWLRQV ZHUH PDWHULDOO\\\nRYHUVWDWHG.\n\n\n\n                                                   \u0015\u001a\n\f     Case 1:23-cv-10982-ER               Document 73             Filed 09/30/25        Page 28 of 46\n\n\n\n\nVHFXULWLHV IUDXG FODLP\u0011 See Construction Laborers Pension Trust\u000f \u0017\u0016\u0016 )\u0011 6XSS\u0011 \u0016G at 532\n\n GHVFULELQJ VWDQGDUGV IRU PDWHULDOLW\\ DQG IDOVLW\\ \u0011 \u0015\u0017     23F\n\n\n\n\n         i. Non-Actionable Corporate Optimism or 3X\u09fcHU\\\n\n         0DQ\\ RI WKH FKDOOHQJHG VWDWHPHQWV FRQVWLWXWH QRQ-DFWLRQDEOH FRUSRUDWH RSWLPLVP\n\nRU SX\u0d75HU\\\u0011 )RU D VWDWHPHQW WR EH DFWLRQDEOH\u000f \u00b3WKH UHSUHVHQWDWLRQ PXVW EH RQH RI H[LVWLQJ\n\nIDFW\u000f DQG QRW PHUHO\\ DQ H[SUHVVLRQ RI RSLQLRQ\u000f H[SHFWDWLRQ RU GHFODUDWLRQ RI LQWHQWLRQ\u0011\u00b4 In\n\nre Duane Reade Inc. Securities Litigation, No. 02-cv-\u0019\u0017\u001a\u001b 15% \u000f \u0015\u0013\u0013\u0016 :/ \u0015\u0015\u001b\u0013\u0014\u0017\u0014\u0019\u000f\n\nDW \u0017 6\u0011'\u00111\u0011<\u0011 1RY\u0011 \u0015\u0018\u000f \u0015\u0013\u0013\u0016 TXRWLQJ Greenberg v. Chrust, 282 F. 6XSS\u0011 2d 112, 121\n\n(S.D.N.Y. 2003)), D\u09fc\u00b6G VXE QRP\u0011 1DGR\u09fc Y\u0011 'XDQH 5HDGH\u000f ,QF\u0011\u000f \u0014\u0013\u001a )HG\u0011 $SS[\u0011 \u0015\u0018\u0013 \u0015G\n\n&LU\u0011 \u0015\u0013\u0013\u0017 VXPPDU\\ RUGHU \u0011 \u00b3>*@HQHUDOL]DWLRQV UHJDUGLQJ LQWHJULW\\\u000f \u00bfVFDO GLVFLSOLQH DQG\n\nULVN PDQDJHPHQW FRQVWLWXWH SUHFLVHO\\ WKH W\\SH RI \u00b5SX\u0d75HU\\\u00b6 WKDW WKLV DQG RWKHU FLUFXLWV KDYH\n\nFRQVLVWHQWO\\ KHOG WR EH LQDFWLRQDEOH\u0011\u00b4 In re JP Morgan Chase Securities Litigation, No.\n\n02-cv-\u0014\u0015\u001b\u0015 6+6 \u000f \u0015\u0013\u0013\u001a :/ \u001c\u0018\u0013\u0014\u0016\u0015\u000f DW \u0014\u0015 6\u0011'\u00111\u0011<\u0011 0DU\u0011 \u0015\u001c\u000f \u0015\u0013\u0013\u001a LQWHUQDO\n\nTXRWDWLRQV DQG FLWDWLRQV RPLWWHG \u000f D\u09fc\u00b6G VXE QRP\u0011 (&$, 553 F.3d at 206; In re New York\n\nCommunity Bancorp, Inc., Securities Litigation\u000f \u0017\u0017\u001b )\u0011 6XSS\u0011 \u0015G \u0017\u0019\u0019\u000f \u0017\u001a\u001b\u2013\u001a\u001c (\u0011'\u00111\u0011<\u0011\n\n\n\u0015\u0017\n   :KLOH WKH &RXUW GRHV QRW \u00bfQG LW QHFHVVDU\\ WR R\u0d75HU D GHWDLOHG H[SODQDWLRQ RI HYHU\\ SRWHQWLDOO\\ IRUZDUG-\nORRNLQJ VWDWHPHQW JLYHQ WKDW WKH FRPSODLQW LQFOXGHV SX]]OH SOHDGLQJ\u000f LW LV LPSRUWDQW WR QRWH WKDW 'HIHQGDQWV\nGLG SURYLGH PHDQLQJIXO FDXWLRQDU\\ ODQJXDJH DORQJ ZLWK WKHLU GLVFORVXUHV\u0011 'HIHQGDQWV FRQWHQG WKDW PDQ\\ RI\nWKHVH VWDWHPHQWV DUH SURWHFWHG E\\ WKH 36/5$\u00b6V VDIH KDUERU SURYLVLRQ, 'RF\u0011 \u0017\u0017 DW \u0015\u0018\u201329, ZKLFK SURYLGHV\nWKDW QR OLDELOLW\\ DWWDFKHV WR FHUWDLQ IRUZDUG-ORRNLQJ VWDWHPHQWV WKDW DUH LGHQWL\u00bfHG DV VXFK DQG \u00b3DFFRPSDQLHG\nE\\ PHDQLQJIXO FDXWLRQDU\\ ODQJXDJH LGHQWLI\\LQJ LPSRUWDQW IDFWRUV WKDW FRXOG FDXVH DFWXDO UHVXOWV WR GL\u0d75HU\nPDWHULDOO\\ IURP WKRVH LQ WKH IRUZDUG ORRNLQJ VWDWHPHQWV\u0011\u00b4 In re Nokia Oyj (Nokia Corporation) Securities\nLitigation\u000f \u0017\u0015\u0016 )\u0011 6XSS\u0011 \u0015G \u0016\u0019\u0017\u000f \u0017\u0013\u0013 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0019 FLWLQJ \u0014\u0018 8\u00116\u0011&\u0011 \u0086 \u001a\u001bX\u2013\u0018 F \u0011 \u00b37R DYDLO WKHPVHOYHV\nRI VDIH KDUERU SURWHFWLRQ XQGHU WKH PHDQLQJIXO FDXWLRQDU\\ ODQJXDJH SURQJ\u000f GHIHQGDQWV PXVW GHPRQVWUDWH\nWKDW WKHLU FDXWLRQDU\\ ODQJXDJH ZDV QRW ERLOHUSODWH DQG FRQYH\\HG VXEVWDQWLYH LQIRUPDWLRQ\u0011\u00b4 Slayton v.\nAmerican Express Co.\u000f \u0019\u0013\u0017 )\u0011\u0016G \u001a\u0018\u001b\u000f \u001a\u001a\u0015 \u0015G &LU\u0011 \u0015\u0013\u0014\u0013 ; Villare v. Abiomed, Inc., No. 19-cv-\u001a\u0016\u0014\u001c (5 \u000f\n\u0015\u0013\u0015\u0014 :/ \u0017\u0016\u0014\u0014\u001a\u0017\u001c\u000f DW \u0014\u001b 6\u0011'\u00111\u0011<\u0011 6HS\u0011 \u0015\u0014\u000f \u0015\u0013\u0015\u0014 \u00b3IRUZDUG-ORRNLQJ\u00b4 VWDWHPHQWV QRW DFWLRQDEOH ZKHUH\n\u00b3FDXWLRQDU\\ ODQJXDJH ZDUQ>HG@ RI WKH YHU\\ ULVNV WKDW >SODLQWL\u0d75@ DOOHJHV WKDW 'HIHQGDQWV IDLOHG WR GLVFORVH\u0011\u00b4 \u0011\n+HUH\u000f IRU H[DPSOH\u000f 'HIHQGDQWV SURSHUO\\ ZDUQHG LQYHVWRUV RI ULVNV FRQFHUQLQJ 9LUJLO $EORK\u00b6V GHDWK DQG\n9LROHW *UH\\. 'RF\u0011 \u0017\u0017 DW \u0016\u0016\u2013\u0016\u0017; 'RF\u0011 \u0017\u0018-25 at 36 \u00b3&HUWDLQ GHVLJQHUV DQG FUHDWRUV\u000f LQFOXGLQJ 9LUJLO $EORK\u000f\nWKH IRXQGHU DQG &UHDWLYH 'LUHFWRU RI 2\u0d75-:KLWH\u000f DUH FULWLFDO WR WKH VXFFHVV RI WKH EUDQGV ZLWKLQ WKH 1HZ\n*XDUGV SRUWIROLR\u000f DQG WKHLU GHSDUWXUH FRXOG KDYH D VLJQL\u00bfFDQW LPSDFW RQ \u0011 \u0011 \u0011 1HZ *XDUGV\u00b6 EXVLQHVV\u0011\u00b4 \u001e see\nalso 'RF\u0011 \u0017\u0018-2 at 3\u001a )DUIHWFK \u00b3PD\\ EH XQVXFFHVVIXO LQ LQWHJUDWLQJ\u00b4 LWV \u00b3DFTXLVLWLRQV\u00b4 OLNH \u00b39LROHW *UH\\\u00b4\nDQG \u00b3PD\\ QRW DFKLHYH WKH DQWLFLSDWHG EHQH\u00bfWV\u00b4 GXH WR SRVVLEOH \u00b3XQDQWLFLSDWHG DQG VXEVWDQWLDO FRVWV RU\nOLDELOLWLHV\u00b4 \u0011 \u0e60HUHIRUH\u000f 'HIHQGDQWV\u00b6 ULVN GLVFORVXUHV WLPHO\\ \u00b3ZDUQ>HG@ RI WKH SUHFLVH ULVNV >PODLQWL\u0d75V@\nFODLP>@ ZHUH RPLWWHG\u0011\u00b4 In re MINISO Group Holding Ltd. Securities Litigation.\u000f \u0015\u0013\u0015\u0017 :/ \u001a\u0018\u001c\u0015\u0017\u0019\u000f DW \u0014\u0017\n 6\u0011'\u00111\u0011<\u0011 )HE\u0011 \u0015\u0016\u000f \u0015\u0013\u0015\u0017 .\n\n\n\n                                                     28\n\f   Case 1:23-cv-10982-ER          Document 73       Filed 09/30/25      Page 29 of 46\n\n\n\n\n2006) (\u201c*HQHUDOL]HG VWDWHPHQWV UHJDUGLQJ D FRPSDQ\\\u00b6V \u00bfVFDO GLVFLSOLQH DQG ULVN\n\nPDQDJHPHQW DPRXQW WR QR PRUH WKDQ LQDFWLRQDEOH SX\u0d75HU\\.\u00b4 \u0011\n\n       +RZHYHU\u000f \u00b3>V@WDWHPHQWV UHJDUGLQJ SURMHFWLRQV RI IXWXUH SHUIRUPDQFH PD\\ EH\n\nDFWLRQDEOH XQGHU 6HFWLRQ \u0014\u0013 E RU 5XOH \u0014\u0013E-\u0018 LI WKH\\ DUH ZRUGHG DV JXDUDQWHHV RU DUH\n\nVXSSRUWHG E\\ VSHFL\u00bfF VWDWHPHQWV RI IDFW\u000f RU LI WKH VSHDNHU GRHV QRW JHQXLQHO\\ RU\n\nUHDVRQDEO\\ EHOLHYH WKHP\u0011\u00b4 In re International Business Machines Corporate Securities\n\nLitigation, 163 F. \u0016G \u0014\u0013\u0015\u000f \u0014\u0013\u001a \u0015G &LU\u0011 \u0014\u001c\u001c\u001b LQWHUQDO FLWDWLRQV RPLWWHG \u001e see also Gissin\n\nv. Endres\u000f \u001a\u0016\u001c )\u0011 6XSS\u0011 \u0015G \u0017\u001b\u001b\u000f \u0018\u0013\u0015 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0013 \u00b3VWDWHPHQWV DUH QRW SURWHFWHG ZKHUH\n\nGHIHQGDQWV KDG QR EDVLV IRU WKHLU RSWLPLVWLF VWDWHPHQWV DQG DOUHDG\\ NQHZ DOOHJHGO\\ WKDW\n\nFHUWDLQ ULVNV KDG EHFRPH UHDOLW\\\u00b4 LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG .\n\n       +HUH\u000f )DUIHWFK\u00b6V VWDWHPHQWV WKDW WKH &RPSDQ\\ ZDV \u00b3RQ WUDFN WR GHOLYHU RQ RXU SODQ\n\nIRU \u0015\u0013\u0015\u0016\u000f\u00b4 WKDW 5HHERN ZDV \u00b3RQ EXGJHW DQG RQ VFKHGXOH\u000f\u00b4 &KLQD ZDV \u00b3EDFN WR JURZWK\u000f\u00b4\n\nDQG WKDW WKH 8\u00116\u0011 KDG \u00b3FRQWLQXHG VRIWQHVV\u000f\u00b4 EXW \u00b3JLYHV XV FRQ\u00bfGHQFH WKDW ZH\u00b6UH JRLQJ WR\n\nJR EDFN WR JURZWK\u000f\u00b4 DUH DOO QRQ-DFWLRQDEOH SX\u0d75HU\\\u0011 \u0088\u0088 \u0017\u0013\u0017\u000f \u0017\u0014\u0014\u000f \u0017\u0014\u0017\u000f \u0017\u0014\u0019\u000f \u0017\u0015\u0014\u000f \u0017\u0015\u0016; see\n\nGissin, \u001a\u0016\u001c )\u0011 6XSS\u0011 \u0015G at 511\u201312 \u00bfQGLQJ WKH GHIHQGDQW V VWDWHPHQW WKDW WKH FRPSDQ\\\n\n\u00b3FRQWLQXHV WR PDLQWDLQ D VWURQJ EDODQFH VKHHW\u00b4 ZDV PHUH SX\u0d75HU\\ EHFDXVH LW GLG QRW \u00b3R\u0d75HU\n\nDQ\\ RI WKH \u00b5ORQJ-WHUP JXDUDQWHHV\u00b6 RU VSHFL\u00bfFV ZKLFK ZRXOG FRQYHUW DQ RSLQLRQ RU\n\nSURMHFWLRQ LQWR D IDFWXDO PLVUHSUHVHQWDWLRQ\u0011\u00b4 \u001e see also Livingston v. Cablevision Systems\n\nCorp., 966 F. 6XSS\u0011 2d 208, 220 (E.D.N.Y. \u0015\u0013\u0014\u0016 \u00bfQGLQJ VWDWHPHQWV WKDW D FRPSDQ\\\n\n\u201c\u00b5FDQ FRQWLQXH WR SURYLGH VXSHULRU SURGXFWV\u000f VXSHULRU FXVWRPHU VHUYLFH\u000f DQG FRPSHWH\n\nDJJUHVVLYHO\\\u000f DQG FRQWLQXH WR JURZ\u00b6 LV TXLQWHVVHQWLDO LQDFWLRQDEOH SX\u0d75HU\\\u0011\u00b4 \u0011 \u00b3>T@KHVH\n\nVWDWHPHQWV DUH WRR JHQHUDO WR FDXVH D UHDVRQDEOH LQYHVWRU WR UHO\\ XSRQ WKHP,\u00b4 DQG\u000f DV D\n\nUHVXOW\u000f GR QRW YLRODWH VHFXULWLHV ODZV\u0011 In re Australia & New Zealand Banking Group Ltd.\n\nSecurities Litigation, No. 08-cv-\u0014\u0014\u0015\u001a\u001b '/& \u000f \u0015\u0013\u0013\u001c :/ \u0017\u001b\u0015\u0016\u001c\u0015\u0016\u000f DW \u0014\u0014 6\u0011'\u00111\u0011<\u0011 'HF\u0011\n\n\u0014\u0017\u000f \u0015\u0013\u0013\u001c LQWHUQDO TXRWDWLRQV RPLWWHG . 3ODLQWL\u0d75V DUJXH WKDW WKHVH VWDWHPHQWV \u00b3DUH\n\nYHUL\u00bfDEOH VWDWHPHQWV RI IDFW DQG FDQQRW VLPSO\\ EH FDVW DV RSWLPLVWLF VWDWHPHQWV\u0011\u00b4 'RF\u0011 \u0017\u001b\n\nDW \u0015\u001a\u0011 +RZHYHU\u000f DV WKLV CRXUW KDV SUHYLRXVO\\ KHOG\u000f VWDWHPHQWV DERXW D FRPSDQ\\ EHLQJ\n\n\n                                            29\n\f   Case 1:23-cv-10982-ER           Document 73       Filed 09/30/25      Page 30 of 46\n\n\n\n\n\u00b3EDFN WR JURZWK\u00b4 DUH QRW VX\u0d76FLHQWO\\ VSHFL\u00bfF RU FRQFUHWH WR PLVOHDG UHDVRQDEOH LQYHVWRUV\u0011\n\nVillare, \u0015\u0013\u0015\u0014 :/ \u0017\u0016\u0014\u0014\u001a\u0017\u001c\u000f DW \u0014\u0018 LQWHUQDO TXRWDWLRQV RPLWWHG \u0011\n        ii. Non-Actionable Opinion Statements\n\n        'HIHQGDQWV DOVR DUJXH WKDW WKH VWDWHPHQWV DW LVVXH DUH QRQ-DFWLRQDEOH RSLQLRQV\u0011 \u201cA\n\n\u00b5VLQFHUH VWDWHPHQW RI SXUH RSLQLRQ LV QRW DQ XQWUXH VWDWHPHQW RI PDWHULDO IDFW\u000f UHJDUGOHVV\n\nRI ZKHWKHU DQ LQYHVWRU FDQ XOWLPDWHO\\ SURYH WKH EHOLHI ZURQJ\u0011\u00b6\u00b4 6WHDP\u00bfWWHUV /RFal 449\n\nPension Plan v. Skechers U.S.A., Inc.\u000f \u0017\u0014\u0015 )\u0011 6XSS\u0011 \u0016G \u0016\u0018\u0016\u000f \u0016\u0019\u0017 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001c \u000f D\u09fc\u00b6G\n\nsub nom. Cavalier Fundamental Growth Fund v. Skechers U.S.A., Inc.\u000f \u001b\u0015\u0019 )\u0011 $SS\u00b6[ \u0014\u0014\u0014\n\n\u0015G &LU\u0011 \u0015\u0013\u0015\u0013 TXRWLQJ Omnicare, Inc. v. Laborers District Council Constr. Industry\n\nPension Fund\u000f \u0018\u001a\u0018 8\u00116\u0011 \u0014\u001a\u0018\u000f \u0014\u001b\u0019 \u0015\u0013\u0014\u0018 \u0011 \u00b3([SUHVVLRQV RI RSWLPLVP DQG SURMHFWLRQV\n\nDERXW WKH IXWXUH DUH TXLQWHVVHQWLDO RSLQLRQ VWDWHPHQWV\u0011\u00b4 Id. TXRWLQJ Martin v.\n\nQuartermain\u000f \u001a\u0016\u0015 )\u0011 $SS\u00b6[ \u0016\u001a\u000f \u0017\u0013 Q\u0011\u0014 \u0015G &LU\u0011 \u0015\u0013\u0014\u001b VXPPDU\\ RUGHU \u0011\n\n        $Q RSLQLRQ VWDWHPHQW\u000f KRZHYHU\u000f PD\\ JLYH ULVH WR OLDELOLW\\ XQGHU VHFWLRQ \u0014\u0013 E LI\n\nHLWKHU RI WKH IROORZLQJ LV WUXH\u001d \u0014 \u00b3LI HLWKHU \u00b5WKH VSHDNHU GLG QRW KROG WKH EHOLHI\n\n>'HIHQGDQWV@ SURIHVVHG\u00b6 RU \u00b5WKH VXSSRUWLQJ IDFW>V@ >'HIHQGDQWV@ VXSSOLHG ZHUH XQWUXH,\u00b6\u00b4\n\n7RQJXH Y\u0011 6DQR\u00bf\u000f \u001b\u0014\u0019 )\u0011\u0016G \u0014\u001c\u001c\u000f \u0015\u0014\u0013 \u0015G &LU\u0011 \u0015\u0013\u0014\u0019 TXRWLQJ Omnicare\u000f \u0018\u001a\u0018 8\u00116\u0011 DW \u0014\u001b\u0018\u2013\n\n86)\u001e RU \u0015 LI WKH \u00b3VSHDNHU RPLWV LQIRUPDWLRQ ZKRVH RPLVVLRQ PDNHV WKH VWDWHPHQW\n\nPLVOHDGLQJ WR D UHDVRQDEOH LQYHVWRU\u00b4 HYHQ LI WKH RSLQLRQ LV \u00b3VLQFHUHO\\ KHOG DQG RWKHUZLVH\nWUXH DV D PDWWHU RI IDFW\u0011\u00b4 Id. at 210.\n\n        \u0e60H 6XSUHPH &RXUW KDV \u00b3FDXWLRQHG DJDLQVW DQ RYHUO\\ H[SDQVLYH UHDGLQJ RI WKLV\n\nVWDQGDUG\u000f QRWLQJ WKDW \u00b5>U@HDVRQDEOH LQYHVWRUV XQGHUVWDQG WKDW RSLQLRQV VRPHWLPHV UHVW RQ D\n\nZHLJKLQJ RI FRPSHWLQJ IDFWV\u000f\u00b6 DQG DGGLQJ WKDW \u00b5>D@ UHDVRQDEOH LQYHVWRU GRHV QRW H[SHFW\n\nWKDW HYHU\\ IDFW NQRZQ WR DQ LVVXHU VXSSRUWV LWV RSLQLRQ VWDWHPHQW\u0011\u00b6\u00b4 Id. TXRWLQJ\n\nOmnicare\u000f \u0018\u001a\u0018 8\u00116\u0011 DW \u0014\u001b\u001c\u201390). $FFRUGLQJO\\\u000f \u00b3D VWDWHPHQW RI RSLQLRQ \u00b5LV QRW QHFHVVDULO\\\n\nPLVOHDGLQJ ZKHQ DQ LVVXHU NQRZV\u000f EXW IDLOV WR GLVFORVH\u000f VRPH IDFW FXWWLQJ WKH RWKHU ZD\\\u0011\u00b6\u00b4\n\nId. TXRWLQJ Omnicare\u000f \u0018\u001a\u0018 8\u00116\u0011 DW \u0014\u001b\u001c \u0011 0RUHRYHU\u000f WKH 6XSUHPH &RXUW KDV HPSKDVL]HG\n\n\n\n\n                                             30\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25      Page 31 of 46\n\n\n\n\nWKDW \u00b3VWDWHPHQWV RI RSLQLRQV PXVW EH FRQVLGHUHG LQ WKH FRQWH[W LQ ZKLFK WKH\\ DULVH\u0011\u00b4\n\nAratana\u000f \u0016\u0014\u0018 )\u0011 6XSS\u0011 \u0016G DW \u001a\u0018\u0018\u0011 \u00b3\u00b5>7@KH LQYHVWRU WDNHV LQWR DFFRXQW WKH FXVWRPV DQG\n\nSUDFWLFHV RI WKH UHOHYDQW LQGXVWU\\\u000f\u00b6 DQG \u00ab \u00b5DQ RPLVVLRQ WKDW UHQGHUV PLVOHDGLQJ D\n\nVWDWHPHQW RI RSLQLRQ ZKHQ YLHZHG LQ D YDFXXP PD\\ QRW GR VR RQFH WKDW VWDWHPHQW LV\n\nFRQVLGHUHG\u000f DV LV DSSURSULDWH\u000f LQ D EURDGHU IUDPH\u0011\u00b6\u00b4 6DQR\u00bf\u000f \u001b\u0014\u0019 )\u0011\u0016G DW \u0015\u0014\u0013 TXRWLQJ\n\nOmnicare\u000f \u0018\u001a\u0018 8\u00116\u0011 DW \u0014\u001c\u0013 \u0011\n\n       +HUH\u000f PDQ\\ RI 'HIHQGDQWV\u00b6 FKDOOHQJHG VWDWHPHQWV DUH RSLQLRQV\u000f DQG 3ODLQWL\u0d75V GR\n\nQRW SURYLGH D VXEVWDQWLYH DUJXPHQW WKDW FRXOG OHDG WR D GL\u0d75HUHQW FRQFOXVLRQ. FRU\n\nH[DPSOH\u000f 'HIHQGDQWV SUHIDFHG WKH VWDWHPHQWV UHJDUGLQJ 5HHERN\u000f 9LROHW *UH\\\u000f 1**\u000f DQG\n\nNet-a-3RUWHU ZLWK TXDOL\u00bfHUV OLNH \u00b3ZH H[SHFW\u000f\u00b4 \u00b3ZH EHOLHYH\u000f\u00b4 \u00b3,\u00b6YH DOZD\\V IHOW\u000f\u00b4 RU \u00b3,\n\nWKLQN\u0011\u00b4 \u0088 \u0017\u0016\u0013 \u00b3ZH EHOLHYH WKDW FDVK \u00c0RZ \u0011 \u0011 \u0011 ZLOO EH VX\u0d76FLHQW\u00b4 \u000f \u0088 \u0017\u0017\u0015 \u00b3ZH H[SHFW D\n\nVWURQJ UHFRYHU\\\u00b4 \u000f \u0088 \u0017\u0018\u0016 \u00b3>Z@H WKLQN >Net-a-3RUWHU@ LV D JUHDW SDUWQHUVKLS\u00b4 \u0011 6WDWHPHQWV\n\nVXFK DV WKHVH DUH WKH TXLQWHVVHQWLDO non-actionable RSLQLRQV\u0011 ,Q UH $UDWDQD \u0b61HUDSHXWLFV\n\nInc. Securities Litigation\u000f \u0016\u0014\u0018 )\u0011 6XSS\u0011 \u0016G \u001a\u0016\u001a\u000f \u001a\u0018\u0013-\u0018\u0014\u000f \u001a\u0018\u001b 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001b VWDWHPHQWV\n\nPDUNHG E\\ TXDOL\u00bfHUV OLNH \u00b3, WKLQN\u000f\u00b4 \u00b3ZH H[SHFW\u000f\u00b4 RU \u00b3, EHOLHYH\u00b4 RIWHQ \u00b3UH\u00c0HFW MXGJPHQWV\n\nDV WR YDOXHV WKDW >DUH@ QRW REMHFWLYHO\\ GHWHUPLQDEOH\u00b4 DQG VR DUH LQDFWLRQDEOH RSLQLRQV\n\nDOWHUDWLRQV LQ RULJLQDO .\n\n       \u0e60H &RXUW PXVW WKHQ GHWHUPLQH ZKHWKHU 3ODLQWL\u0d75V VDWLVI\\ HLWKHU EDVLV IRU\n\nHVWDEOLVKLQJ OLDELOLW\\ IRU RSLQLRQ VWDWHPHQWV. First, 3ODLQWL\u0d75V DUJXH WKDW HYHQ LI\n\n'HIHQGDQWV\u00b6 VWDWHPHQWV ZHUH RSLQLRQV\u000f WKH\\ DUH QRQHWKHOHVV DFWLRQDEOH EHFDXVH\n\n'HIHQGDQWV \u00b3ODFNHG >D@ EDVLV IRU PDNLQJ WKRVH VWDWHPHQWV\u0011\u00b4 Omnicare, \u0018\u001a\u0018 8\u00116\u0011 at \u0014\u001b\u0017\u2013\n\n\u001b\u0019\u000f \u0014\u001c\u0019\u001e 'RF\u0011 \u0017\u001b DW \u0016\u0016\u0011 \u0e60LV DUJXPHQW LV UHOHYDQW WR WKH \u00bfUVW VFHQDULR XQGHU ZKLFK DQ\n\nRSLQLRQ VWDWHPHQW FRXOG JLYH ULVH WR OLDELOLW\\ XQGHU 6HFWLRQ \u0014\u0013 E \u2014WKDW LV\u000f WKDW WKH\n\nVXSSRUWLQJ IDFWV WKDW 'HIHQGDQWV VKDUHG ZHUH XQWUXH\u0011 :KLOH 3ODLQWL\u0d75V DWWHPSW WR DUJXH\n\nWKDW 'HIHQGDQWV ZHUH EODWDQWO\\ O\\LQJ DERXW 9LROHW *UH\\\u00b6V EXVLQHVV\u000f 1**\u00b6V LQWHUQDO\n\nFRQWUROV\u000f DQG 5HHERN\u00b6V LQYHQWRU\\\u000f 'RF\u0011 \u0017\u001b DW \u0016\u0016\u000f WKH 6XSUHPH &RXUW HVWDEOLVKHG WKDW \u201ca\n\nVWDWHPHQW RI RSLQLRQ \u00b5LV QRW QHFHVVDULO\\ PLVOHDGLQJ ZKHQ DQ LVVXHU NQRZV\u000f EXW IDLOV WR\n\n\n                                             31\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 32 of 46\n\n\n\n\nGLVFORVH\u000f VRPH IDFW FXWWLQJ WKH RWKHU ZD\\\u0011\u00b6\u00b4 6DQR\u00bf, 816 F.3d at 210 FLWLQJ Omnicare,\n\n\u0018\u001a\u0018 8\u00116\u0011 DW \u0014\u0016\u0015\u001c \u0011 3ODLQWL\u0d75V\u00b6 DOOHJDWLRQV\u000f LQ VXP\u000f DUH WKDW WKH FKDOOHQJHG VWDWHPHQWV ZHUH\n\nIDOVH RU PLVOHDGLQJ EHFDXVH WKH 'HIHQGDQWV GLG QRW LQFOXGH IDFWV WKDW FRXOG KDYH\n\nXQGHUPLQHG 'HIHQGDQWV\u00b6 REMHFWLRQV\u0011 Omnicare\u000f KRZHYHU\u000f LPSRVHV QR VXFK GLVFORVXUH\n\nUHTXLUHPHQWV RQ LVVXHUV. Id.\n\n       Second\u000f 3ODLQWL\u0d75V SXW IRUWK D YHU\\ VLPLODU DUJXPHQW WR DOOHJH WKDW 'HIHQGDQWV\n\nRPLWWHG UHOHYDQW LQIRUPDWLRQ ZKHQ WKH\\ PDGH WKH FKDOOHQJHG VWDWHPHQWV DQG WKHUHIRUH\n\nWKHLU VWDWHPHQWV ZHUH PLVOHDGLQJ\u0011 'RF\u0011 \u0017\u001b DW \u0016\u0016\u0011 6SHFL\u00bfFDOO\\\u000f 3ODLQWL\u0d75V QRWH WKDW\u000f IRU\n\nH[DPSOH\u000f 9LROHW *UH\\\u00b6V EXVLQHVV ZDV VWUXJJOLQJ, \u0088\u0088 162\u2013\u0019\u001c\u001e 5HHERN\u00b6V SURGXFWV ZHUH\n\nKHDYLO\\ GLVFRXQWHG\u000f DQG WKH EUDQG KDG H[FHVV LQYHQWRU\\, \u0088\u0088 \u0014\u001a\u0013\u2013\u001b\u0017\u001e DQG )DUIHWFK KDG\n\nIDLOHG WR UHPHGLDWH 1**\u00b6V FRQWURO ZHDNQHVVHV, \u0088\u0088 198\u2013235. See 'RF\u0011 \u0017\u001b DW \u0016\u0016\u0011 3ODLQWL\u0d75V\n\nIXUWKHU DOOHJH WKDW WKH IRUPHU HPSOR\\HHV NQHZ WKDW 'HIHQGDQWV GLVFXVVHG WKHVH LVVXHV\u000f \u0088\u0088\n\n\u0014\u0017\u001a\u2013\u0017\u001b\u000f \u0014\u0018\u001b\u000f \u0015\u0014\u001c-\u0015\u0014\u000f \u0017\u0019\u0015\u000f \u0017\u0019\u0016\u000f DQG WKHUHIRUH RPLWWHG UHOHYDQW LQIRUPDWLRQ LQ PDNLQJ WKH\n\nFKDOOHQJHG VWDWHPHQWV\u0011\n\n       \u0e60H &RXUW DJUHHV ZLWK 'HIHQGDQWV WKDW WKH\\ SURYLGHG DGHTXDWH GLVFORVXUHV and\n\nQRWHV WKDW \u201c>W@KH H[LVWHQFH RI \u00bfQDQFLDO FKDOOHQJHV\u000f SDUWLFXODUO\\ ZKHUH 'HIHQGDQWV KDG\n\nDFNQRZOHGJHG WKHVH FKDOOHQJHV DQG RXWOLQHG H\u0d75RUWV WR PLWLJDWH WKHP\u000f GRHV QRW UHQGHU\n\n'HIHQGDQWV\u00b6 RSWLPLVWLF RSLQLRQ VWDWHPHQWV DFWLRQDEOH\u0011\u00b4 In re Anheuser-Busch InBev\n\nSA/NV Securities Litigation, No. 19-cv-\u0018\u001b\u0018\u0017 $.+ , \u0015\u0013\u0015\u0013 :/ \u0018\u001b\u0014\u001c\u0018\u0018\u001b\u000f DW \u0019 6\u0011'\u00111\u0011<\u0011\n\n6HSW\u0011 \u0015\u001c\u000f \u0015\u0013\u0015\u0013 FLWLQJ Omnicare\u000f \u0018\u001a\u0018 8\u00116\u0011 DW \u0014\u001b\u001c \u0011 $FFRUGLQJO\\\u000f HYHQ LI WKH CAC KDG\n\nQRW EHHQ GLVPLVVHG DV FRQVWLWXWLQJ LPSHUPLVVLEOH SX]]OH-SOHDGLQJ\u000f WKH &RXUW FRQFOXGHV\n\nWKDW 3ODLQWL\u0d75V KDYH IDLOHG WR DOOHJH D PDWHULDO PLVUHSUHVHQWDWLRQ RU RPLVVLRQ WR VXSSRUW D\n\nFODLP XQGHU VHFWLRQ 10(b).\n       iii. Non-Actionable Misrepresentations and Omissions\n\n       3ODLQWL\u0d75V\u000f SHUKDSV LQ D ODVW-GLWFK H\u0d75RUW WR VDYH WKH CAC IURP D \u00bfQGLQJ RI\n\nLPSHUPLVVLEOH SX]]OH SOHDGLQJ\u000f DWWHPSW WR UHRUJDQL]H WKHLU DOOHJDWLRQV LQWR VL[ GLVWLQFW\n\n\n\n\n                                            32\n\f      Case 1:23-cv-10982-ER             Document 73             Filed 09/30/25      Page 33 of 46\n\n\n\n\nEXFNHWV: \u0014 RPLVVLRQV RI )DUIHWFK\u00b6V GH\u00bfFLHQW LQWHUQDO FRQWUROV\u001e \u0015 WKRVH FRQFHUQLQJ\n\n)DUIHWFK\u00b6V FXUUHQW VWDWH RI D\u0d75DLUV\u001e \u0016 WKRVH FRQFHUQLQJ )DUIHWFK\u00b6V \u00bfQDQFLDO SURMHFWLRQV\u001e\n\n \u0017 WKRVH FRQFHUQLQJ )DUIHWFK\u00b6V \u00bfQDQFLDO FRQGLWLRQ; \u0018 IDOVH D\u0d76UPDWLRQV RI FRQWUROV RYHU\n\n\u00bfQDQFLDO UHSRUWLQJ\u001e DQG \u0019 RYHUVWDWHG YDOXH RI )DUIHWFK\u00b6V LQWDQJLEOH DVVHWV\u0011 'RF\u0011 \u0017\u001b DW\n\n19.\n\n         First, 3ODLQWL\u0d75 DOOHJHV WKDW )DUIHWFK\u00b6V LQWHUQDO FRQWUROV ZHUH LQ GLVDUUD\\ WKURXJKRXW\n\nWKH &ODVV 3HULRG DQG ZHUH QHYHU UHPHGLDWHG SULRU WR OLTXLGDWLRQ\u0011 See \u0088\u0088 \u0014\u001c\u001b\u2013235.\n\n+RZHYHU\u000f WKH CAC FRQFHGHV WKDW \u00b3)DUIHWFK \u00bfUVW UHSRUWHG WKH PDWHULDO ZHDNQHVVHV ZLWKLQ\n\n1** \u0011 \u0011 \u0011 >RQ@ 0DUFK \u0017\u000f \u0015\u0013\u0015\u0014\u00b4\u2014QHDUO\\ one \\HDU prior WR WKH VWDUW RI WKH &ODVV 3HULRG\u0011 \u0088\n\n202\u001e \u0088 \u0015\u0014\u001c \u00b3>6@KDUHKROGHUV ZHUH WKUHDWHQLQJ WR SXOO WKHLU PRQH\\ RXW RI )DUIHWFK EHFDXVH\n\nRI WKH ORQJVWDQGLQJ PDWHULDO ZHDNQHVV DW 1**\u0011\u00b4 \u0011 \u0e60HVH GLVFORVXUHV IXOO\\ XQGHUPLQH\n\n3ODLQWL\u0d75V\u00b6FODLPV UHJDUGLQJ WKH ZHDNQHVVHV LQ 1**\u00b6V LQWHUQDO FRQWUROV\u0011 Shemian v.\n\nResearch In Motion Ltd., No. 11-cv-\u0017\u0013\u0019\u001b (RJS), \u0015\u0013\u0014\u0016 :/ \u0014\u0015\u001b\u0018\u001a\u001a\u001c\u000f DW \u0015\u0013 6\u0011'\u00111\u0011<\u0011\n\n0DU\u0011 \u0015\u001c\u000f \u0015\u0013\u0014\u0016 GLVPLVVLQJ FODLPV ZKHUH \u00b3'HIHQGDQWV did PDNH GLVFORVXUHV\u00b4 RI DOOHJHG\n\nRPLVVLRQ HPSKDVLV LQ RULJLQDO \u0011 $FFRUGLQJO\\\u000f WKH &RXUW \u00bfQGV WKDW )DUIHWFK GLG QRW\n\nPDWHULDOO\\ PLVUHSUHVHQW WKH ZHDNQHVVHV LQ 1**\u00b6V LQWHUQDO FRQWUROV.\n\n         Second, 3ODLQWL\u0d75V DOOHJH WKDW )DUIHWFK\u00b6V DFTXLVLWLRQV ZHUH RYHUSULFHG\u000f SOD\\LQJ D\n\nVLJQL\u00bfFDQW UROH LQ WKH &RPSDQ\\\u00b6V \u00bfQDQFLDO VWUXJJOHV\u0011 'RF\u0011 \u0017\u001b DW \u0015\u0014\u0011 $FFRUGLQJ WR\n\n3ODLQWL\u0d75V\u000f 'HIHQGDQWV UHSHDWHGO\\ PLVUHSUHVHQWHG WKH VWDWH RI D\u0d75DLUV RI LWV DFTXLVLWLRQV DQG\n\nSDUWQHUV\u000f QDPHO\\ 1**\u000f 9LROHW *UH\\\u000f DQG 5HHERN. 25 Id. 'HIHQGDQWV DUJXH WKDW WKHVH\n                                                          24F\n\n\n\n\nDOOHJDWLRQV DUH EDVHG RQ WKH SHUVRQDO RSLQLRQV RI IRUPHU HPSOR\\HHV ZKR ZHUH QRW GLUHFWO\\\n\nLQYROYHG ZLWK WKRVH DFTXLVLWLRQV RU SDUWQHUVKLSV\u0011 'RF\u0011 \u0018\u0013 DW \u0014\u0013\u0011\n\n\n\n25\n  3ODLQWL\u0d75V GR QRW GLVSXWH 'HIHQGDQWV\u00b6 DUJXPHQW WKDW WKHLU DOOHJDWLRQV DERXW WKH Net-a-3RUWHU DFTXLVLWLRQ\nDUH LPSHUPLVVLEOH IUDXG-E\\-KLQGVLJKW DOOHJDWLRQV. 'RF\u0011 \u0017\u0017 DW \u0016\u0016\u001e In re PetroChina\u000f \u0014\u0015\u0013 )\u0011 6XSS\u0011 \u0016G at 366,\nD\u09fc\u00b6G 0DU\u0011 \u0015\u0014\u000f \u0015\u0013\u0014\u0019 \u00b3>,@W LV ZHOO-VHWWOHG WKDW \u00b5IUDXG E\\ KLQGVLJKW\u00b6 LV QRW D FRJQL]DEOH WKHRU\\ RI UHOLHI\u00b4\n TXRWLQJ In re Longtop Financial Technologies Ltd. Securities Litigation\u000f \u001c\u0014\u0013 )\u0011 6XSS\u0011 \u0015G \u0018\u0019\u0014\u000f \u0018\u001a\u001c\n 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0015 \u0011 $V VXFK\u000f WKDW FODLP ZRXOG QRW SURFHHG HYHQ LI WKH CAC KDG QRW EHHQ LPSHUPLVVLEO\\\nSX]]OH-SOHDG\u0011\n\n\n\n                                                    33\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25      Page 34 of 46\n\n\n\n\n       $V GLVFXVVHG DERYH\u000f WKH 5HHERN VWDWHPHQWV DUH QRQ-DFWLRQDEOH SX\u0d75HU\\\u0011 :LWK\n\nUHVSHFW WR 1*G, 1HYHV VWDWHG WKDW \u00b3WKH FRQVXPHU GHPDQG DURXQG >1** EUDQG@ 2\u0d75-\n\n:KLWH \u00ab UHPDLQV YHU\\ VWURQJ\u00b4 GXULQJ WKH 4\u0015 \u0015\u0013\u0015\u0016 HDUQLQJV FDOO RQ $XJXVW \u0015\u001a\u000f \u0015\u0013\u0015\u0016\u201421\n\nPRQWKV after 9LUJLO $EORK\u00b6V GHDWK LQ 1RYHPEHU \u0015\u0013\u0015\u0014\u0011 \u0088\u0088 \u0017\u0017\u001c\u2013\u0018\u0013\u001e 'RF\u0011 \u0017\u001b DW \u0015\u0014\u0011\n\n'HIHQGDQWV DUJXH WKDW WKH DOOHJDWLRQ WKDW 2\u0d75-:KLWH VDOHV VHYHUHO\\ GURSSHG LQ WKH VL[ to\n\n\u0014\u0015 PRQWKV DIWHU $EORK\u00b6V GHDWK VD\\V QRWKLQJ DERXW WKH VWDWH RI 2\u0d75-:KLWH WKUHH to nine\n\nPRQWKV DIWHU WKH VDOHV GURSSHG\u0011 \u0e60H &RXUW \u00bfQGV WKDW WKLV VWDWHPHQW ZDV QRW IDOVH RU\n\nPLVOHDGLQJ JLYHQ )DUIHWFK GLVFORVHG WKH \u00b3XS-and-GRZQ SHUIRUPDQFH LQ WKLV EXVLQHVV\u0011\u00b4\n\nSee, e.g.\u000f 'RF\u0011 \u0017\u0018-\u0015 DW \u0015\u0013 \u00b3WKH PDMRULW\\ RI 1HZ *XDUGV\u00b6 H[LVWLQJ EUDQGV\u000f LQFOXGLQJ LWV\n\nODUJHVW EUDQGV\u000f 2\u0d75-:KLWH DQG 3DOP $QJHOV\u000f DUH FXUUHQWO\\ IRFXVHG RQ OX[XU\\ VWUHHWZHDU\n\nDQG VKRXOG FRQVXPHU SUHIHUHQFHV IRU VWUHHWZHDU GHFOLQH WKDW FRXOG KDYH D VLJQL\u00bfFDQW\n\nLPSDFW RQ RXU EXVLQHVV\u00b4 \u001e 'RF\u0011 \u0017\u0018-\u0015 DW \u0015\u0015 VDPH \u0011 Police & Fire Retirement Systems of\n\nthe City of Detroit v. La Quinta Holdings Inc., No. 16-cv-\u0016\u0013\u0019\u001b $-1 \u000f \u0015\u0013\u0014\u001a :/ \u0017\u0013\u001b\u0015\u0017\u001b\u0015\u000f\n\nDW \u0019 6\u0011'\u00111\u0011<\u0011 $XJ\u0011 \u0015\u0017\u000f \u0015\u0013\u0014\u001a \u000f D\u09fc\u00b6G VXE QRP\u0011 3ROLFH         )LUH 5HWLUHPHQW 6\\VWHPV RI &LW\\\n\nof Detroit v. La Quinta Holdings, Inc.\u000f \u001a\u0016\u0018 )\u0011 $SS\u00b6[ \u0014\u0014 \u0015G &LU\u0011 \u0015\u0013\u0014\u001b GLVPLVVLQJ\n\nVHFXULWLHV IUDXG FODLPV LQ SDUW EHFDXVH \u00b3DOO RI WKLV LQIRUPDWLRQ >GLVFORVHG E\\ WKH GHIHQGDQW\n\nDQG LQ WKH SXEOLF GRPDLQ@\u000f ZKHQ FRPELQHG\u000f VX\u0d76FLHQWO\\ DSSULVHG LQYHVWRUV RI WKH ULVNV\n\n3ODLQWL\u0d75 LGHQWL\u00bfHV\u0011\u00b4 \u0011\n\n       WLWK UHVSHFW WR WKH 9LROHW *UH\\\u000f 3ODLQWL\u0d75V DVVHUW WKDW 3KDLU\u00b6V GHVFULSWLRQ RI 9LROHW\n\n*UH\\ DV \u00b3D FXOW IDYRULWH EHDXW\\ GHVWLQDWLRQ\u00b4 ZHUH IDOVH EHFDXVH RI LWV \u00b3GHFOLQLQJ JURZWK\n\nDQG GHSOHWHG \u00bfQDQFHV\u0011\u00b4 \u0088\u0088 \u0014\u0019\u0015\u2013\u0019\u001c\u001e 'RF\u0011 \u0017\u001b DW \u0015\u0014\u0011 \u0e60H &RXUW GRHV QRW \u00bfQG LW QHFHVVDU\\ WR\n\nUHDFK D FRQFOXVLRQ RQ WKHVH VWDWHPHQWV VLQFH 'HIHQGDQWV GLVFORVHG WKDW 9LROHW *UH\\\n\n\u00b3UHSUHVHQWHG OHVV WKDQ \u0014\b RI >)DUIHWFK\u00b6V@ WRWDO DVVHWV DQG \u0011 \u0011 \u0011 UHYHQXH\u000f\u00b4 \u0088 \u0016\u001c\u0017\u000f DQG\u000f DV\n\nVXFK\u000f LW LV XQOLNHO\\ WKDW WKHVH VWDWHPHQWV VZD\\HG LQYHVWRUV RQH ZD\\ RU DQRWKHU\u0011\n\n       \u0b61LUG\u000f ZKLOH tKH &RXUW GRHV QRW \u00bfQG LW QHFHVVDU\\ WR DGGUHVV HDFK RI WKHVH\n\nLQGLYLGXDOO\\\u000f WKH &RXUW UHVHUYHV WKH GLVFXVVLRQ DERXW )DUIHWFK\u00b6V )< \u0015\u0013\u0015\u0015 DQG )< \u0015\u0013\u0015\u0016\n\n\n\n\n                                             \u0016\u0017\n\f     Case 1:23-cv-10982-ER              Document 73            Filed 09/30/25         Page 35 of 46\n\n\n\n\nDQQXDO UHSRUWV\u000f IRU ZKLFK 1HYHV DQG -RUGDQ SURYLGHG VLJQHG 6DUEDQHV-2[OH\\\n\nFHUWL\u00bfFDWLRQV\u000f EHORZ LQ WKH 6HFWLRQ \u0015\u0013 D /LDELOLW\\ VHFWLRQ. 26         25F\n\n\n\n\n             3ODLQWL\u09fcV 'R 1RW $OOHJH D 6WURQJ ,QIHUHQFH RI Scienter\n\n         7R VDWLVI\\ WKH 36/5$\u00b6V SOHDGLQJ UHTXLUHPHQWV IRU VFLHQWHU\u000f D SODLQWL\u0d75 PXVW DOOHJH\n\nIDFWV ZLWK SDUWLFXODULW\\ WKDW ZRXOG JLYH ULVH \u00b3WR D VWURQJ LQIHUHQFH WKDW WKH GHIHQGDQW DFWHG\n\nZLWK WKH UHTXLUHG VWDWH RI PLQG\u0011\u00b4 ECA & Local 134 IBEW Joint Pension Trust of\n\nChicago v. JP Morgan Chase Co.\u000f \u0018\u0018\u0016 )\u0011\u0016G \u0014\u001b\u001a\u000f \u0014\u001c8 \u0015G &LU\u0011 \u0015\u0013\u0013\u001c \u0011 $ \u00b3VWURQJ LQIHUHQFH\u00b4\n\nWKDW D GHIHQGDQW DFWHG ZLWK D FHUWDLQ LQWHQW LV RQH WKDW LV \u00b3PRUH WKDQ PHUHO\\ SODXVLEOH RU\n\nUHDVRQDEOH\u2014LW PXVW EH FRJHQW DQG DW OHDVW DV FRPSHOOLQJ DV DQ\\ RSSRVLQJ LQIHUHQFH RI\n\nQRQIUDXGXOHQW LQWHQW\u0011\u00b4 Tellabs, 551 U.S. at \u0016\u0014\u0017.\n\n         \u0e60LV LQTXLU\\ JRHV EH\\RQG WKH RUGLQDU\\ 5XOH \u001c E IUDPHZRUN DQG UHTXLUHV FRXUWV WR\n\nFRQVLGHU \u00b3QRW RQO\\ LQIHUHQFHV XUJHG E\\ WKH SODLQWL\u0d75 \u0011\u0011\u0011 EXW DOVR FRPSHWLQJ LQIHUHQFHV\n\nUDWLRQDOO\\ GUDZQ IURP WKH IDFWV DOOHJHG\u0011\u00b4 Id. \u00b3\u0e60H UHOHYDQW LQTXLU\\ IRU WKH &RXUW \u00b5LV\n\nZKHWKHU all RI WKH IDFWV DOOHJHG\u000f WDNHQ FROOHFWLYHO\\\u000f JLYH ULVH WR D VWURQJ LQIHUHQFH RI\n\nVFLHQWHU\u000f QRW ZKHWKHU DQ\\ individual DOOHJDWLRQ\u000f VFUXWLQL]HG LQ LVRODWLRQ\u000f PHHWV WKDW\n\nVWDQGDUG\u0011\u00b6\u00b4 In re Magnum Hunter Resources Corp. Securities Litigation, No. 13-cv-2668\n\n .%) \u000f \u0015\u0013\u0014\u0017 :/ \u0015\u001b\u0017\u0013\u0014\u0018\u0015\u000f DW \u0014\u001a 6\u0011'\u00111\u0011<\u0011 -XQH \u0015\u0016\u000f \u0015\u0013\u0014\u0017 HPSKDVLV LQ RULJLQDO FLWLQJ\n\nTellabs, 551 U.S. at 322\u2013\u0015\u0016\u000f \u0014\u0015\u001a \u0011\n         $ SODLQWL\u0d75 PD\\ HVWDEOLVK VFLHQWHU E\\ DOOHJLQJ IDFWV WKDW HLWKHU \u0014 VKRZ WKDW WKH\n\nGHIHQGDQW KDG ERWK WKH \u00b3PRWLYH DQG RSSRUWXQLW\\\u00b4 WR FRPPLW WKH DOOHJHG IUDXG\u000f RU \u0015\n\n\u00b3FRQVWLWXWH VWURQJ FLUFXPVWDQWLDO HYLGHQFH RI FRQVFLRXV PLVEHKDYLRU RU UHFNOHVVQHVV\u0011\u00b4\n\nLerner v. Fleet Bank, N.A.\u000f \u0017\u0018\u001c )\u0011\u0016G \u0015\u001a\u0016\u000f \u0015\u001c\u0013\u2013\u001c\u0014 \u0015G &LU\u0011 \u0015\u0013\u0013\u0019 \u0011\n\n         3ODLQWL\u0d75V FRQWHQG WKDW WKHLU DOOHJDWLRQV JLYH ULVH WR D VWURQJ LQIHUHQFH RI VFLHQWHU\n\nWKDW 'HIHQGDQWV\u001d \u0014 NQHZ WKDW WKH \u00bfQDQFLDO VWDWHPHQWV LVVXHG RU GLVVHPLQDWHG LQ WKH\n\n\n26\n  3ODLQWL\u0d75V DOOHJH WKDW 1HYHV DQG -RUGDQ SURYLGHG VLJQHG 6DUEDQHV-2[OH\\ FHUWL\u00bfFDWLRQV DQG UHSRUWV RQ\nLQWHUQDO FRQWUROV RYHU \u00bfQDQFLDO UHSRUWLQJ WKDW PLVVWDWHG WKH GHVLJQ DQG H\u0d75HFWLYHQHVV RI )DUIHWFK\u00b6V FRQWUROV\u000f\nIDOVHO\\ FODLPLQJ WKH\\ ZHUH GHVLJQHG DSSURSULDWHO\\ DQG\u0012RU H\u0d75HFWLYH. \u0088\u0088 \u0015\u001c\u0017\u201396, 393\u201395.\n\n\n\n                                                     35\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 36 of 46\n\n\n\n\n)DUIHWFK QDPH GXULQJ WKH &ODVV 3HULRG ZHUH IDOVH DQG\u0012RU PDWHULDOO\\ PLVOHDGLQJ\u001e (2) NQHZ\n\nWKDW VXFK VWDWHPHQWV RU GRFXPHQWV ZRXOG EH LVVXHG RU GLVVHPLQDWHG WR WKH LQYHVWLQJ\n\nSXEOLF\u001e DQG (3) NQRZLQJO\\ DQG VXEVWDQWLDOO\\ SDUWLFLSDWHG RU DFTXLHVFHG LQ WKH LVVXDQFH RU\n\nGLVVHPLQDWLRQ RI VXFK VWDWHPHQWV RU GRFXPHQWV DV SULPDU\\ YLRODWLRQV RI WKH IHGHUDO\n\nVHFXULWLHV ODZV\u0011 'RF \u0016\u0017 DW \u0014\u0019\u001b\u0011 \u0e60H ,QGLYLGXDO 'HIHQGDQWV DVVHUW WKDW 3ODLQWL\u0d75V KDYH QRW\n\nVX\u0d76FLHQWO\\ SOHDGHG D FRJQL]DEOH PRWLYH QRU WKDW UHTXLVLWH \u00b3FRUUHVSRQGLQJO\\ JUHDWHU\u00b4\n\nVKRZLQJ RI \u201cFRQVFLRXV PLVEHKDYLRU RU UHFNOHVVQHVV\u000f\u00b4 ZKHQ PRWLYH LV DEVHQW\u0011 'RF\u0011 \u0017\u0017 DW\n\n35\u2013\u0017\u0017. $V WKH ,QGLYLGXDO 'HIHQGDQWV DVVHUW\u000f 3ODLQWL\u0d75V ODUJHO\\ LJQRUH WKH DUJXPHQWV LQ WKH\n\nPRWLRQ WR GLVPLVV\u2014WKDW WKH 6HFRQG &LUFXLW UHTXLUHV SDUWLFXODUL]HG DOOHJDWLRQV VKRZLQJ\n\nFRQVFLRXV UHFNOHVVQHVV\u000f ZKLFK LV D \u00b3VWDWH RI PLQG DSSUR[LPDWLQJ DFWXDO LQWHQW\u000f\u00b4 WKDW\n\nDGHTXDWHO\\ SOHDG PRWLYH UHTXLUHV D VKRZLQJ WKDW WKH GHIHQGDQWV EHQH\u00bfWWHG LQ D FRQFUHWH\n\nZD\\\u000f DQG WKDW WKH 'HIHQGDQWV GLG QRW HQJDJH LQ VXVSLFLRXV WUDGLQJ DFWLYLW\\\u000f DV ZDV LQLWLDOO\\\n\nSUR\u0d75HUHG LQ WKH &$&, 'RF\u0011 \u0017\u0017 DW \u0016\u0018\u2013\u0017\u0017\u2014DQG LQVWHDG DGYDQFH QHZ WKHRULHV RI VFLHQWHU\n\nQRW LQLWLDOO\\ SOHG LQ WKH FRPSODLQW\u0011 'RF\u0011 \u0017\u001b DW \u0016\u001c\u2013\u0017\u0014\u001e Doc. 50 at 15.\n       a. 3ODLQWL\u09fc\u00b6V $OOHJDWLRQV RI Motive DUH ,QVX\u09fdFLHQW.\n\n       7R HVWDEOLVK PRWLYH\u000f WKH 3ODLQWL\u0d75V PXVW HVWDEOLVK WKDW WKH ,QGLYLGXDO 'HIHQGDQWV\n\nHQJDJHG LQ \u00b3XQXVXDO\u00b4 RU \u00b3VXVSLFLRXV\u00b4 WUDGLQJ DFWLYLW\\\u000f DQG WKH \u00b3PHUH IDFW WKDW LQVLGHU\n\nVWRFN VDOHV RFFXUUHG GRHV QRW VX\u0d76FH\u0011\u00b4 Gagnon v. Alkermes PLC, 368 )\u0011 6XSS\u0011 \u0016G \u001a\u0018\u0013\u000f\n\u001a\u001a\u0015 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001c LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG . ,Q WKH C$&\u000f 3ODLQWL\u0d75V DOOXGH WR\n\nDOOHJHG \u00b3VXVSLFLRXV WUDGLQJ DFWLYLW\\\u000f\u00b4 \u0088 \u0017\u0019\u0017\u000f EXW WKH\\ QHYHU VSHFLI\\ ZKDW WKLV DFWLYLW\\ ZDV\u000f\n\nQRU GR WKH\\ GLVSXWH WKDW WKH 'HIHQGDQWV increased WKHLU VWRFN GXULQJ WKH ClDVV PHULRG\u0011\n\n'RF\u0011 \u0017\u0017 DW 36\u2013\u0016\u001a. \u0e60H \u00b3SXUFKDVH> RI@ VWRFN GXULQJ WKH UHOHYDQW SHULRG>@ UHEXWV DQ\n\nLQIHUHQFH RI VFLHQWHU\u0011\u00b4 Turner v. MagicJack VocalTec, Ltd., No. 13-cv-\u0013\u0017\u0017\u001b (RWS)\u000f \u0015\u0013\u0014\u0017\n\n:/ \u0017\u0013\u0019\u001c\u0014\u001a\u000f DW \u0014\u0014 6\u0011'\u00111\u0011<\u0011 )HE\u0011 \u0016\u000f \u0015\u0013\u0014\u0017).\n\n       3ODLQWL\u0d75V DGYDQFH WZR RWKHU WKHRULHV WR DWWHPSW WR HVWDEOLVK PRWLYH: (1) WKDW\n\n)DUIHWFK FRPPLWWHG IUDXG WR HQVXUH WKH\\ ZRXOG FRQWLQXH UDLVLQJ FDSLWDO and (2) WKDW WKH\n\n\n\n\n                                             36\n\f   Case 1:23-cv-10982-ER           Document 73        Filed 09/30/25      Page 37 of 46\n\n\n\n\n&RXUW VKRXOG LJQRUH WKH ,QGLYLGXDO 'HIHQGDQWV\u00b6 VWRFN KROGLQJV DQG LQVWHDG IRFXV RQ WKHLU\n\nSHUVRQDO LQFHQWLYH WR DUWL\u00bfFLDOO\\ LQ\u00c0DWH )DUIHWFK\u00b6V FRPPRQ VWRFN SULFH JLYHQ )DUIHWFK\u00b6V\n\nFRPSHQVDWLRQ VWUXFWXUH. 'RF\u0011 \u0017\u001b DW \u0017\u0013\u2013\u0017\u0014\u0011\n\n       %RWK RI WKHVH DUJXPHQWV DUH LQVX\u0d76FLHQW WR HVWDEOLVK PRWLYH\u0011 \u0e60H \u00bfUVW RI WKHVH\n\nDOOHJDWLRQV LV \u00b3QRWKLQJ PRUH WKDQ WKH RUGLQDU\\ PRWLYHV SRVVHVVHG E\\ YLUWXDOO\\ DOO\n\nFRUSRUDWH LQVLGHUV\u0011\u00b4 In re Plug Power, Inc. Securities Litigation, No. 21-cv-\u0015\u0013\u0013\u0017 (5 \u000f\n\n\u0015\u0013\u0015\u0015 :/ \u0017\u0019\u0016\u0014\u001b\u001c\u0015\u000f DW \u0014\u0015 6\u0011'\u00111\u0011<\u0011 6HSW\u0011 \u0015\u001c\u000f \u0015\u0013\u0015\u0015 . $V WKLV &RXUW KDV SUHYLRXVO\\\n\nSRLQWHG RXW\u000f \u00b3FRXUWV LQ WKLV GLVWULFW KDYH JHQHUDOO\\ IRXQG DOOHJDWLRQV UHJDUGLQJ WKH GHVLUH\n\nWR UDLVH FDSLWDO LQDGHTXDWH WR SOHDG VFLHQWHU\u0011\u00b4 Id. \u0e60LV &RXUW KDV DOVR HVWDEOLVKHG WKDW\n\nDOOHJDWLRQV WKDW FRUSRUDWH LQVLGHUV ZHUH WU\\LQJ WR FRQFHDO OLTXLGLW\\ FULVHV DUH LQVX\u0d76FLHQW\n\nWR HVWDEOLVK PRWLYH\u0011 Francisco v. Abengoa, S.A.\u000f \u0017\u001b\u0014 )\u0011 6XSS\u0011 \u0016G \u0014\u001a\u001c\u000f \u0015\u0014\u0015\u201313 (S.D.N.Y.\n\n\u0015\u0013\u0015\u0013 H[SODLQLQJ WKDW WKH GHVLUH IRU D FRPSDQ\\ WR DSSHDU SUR\u00bfWDEOH and to NHHS VWRFN\n\nSULFHV KLJK WR LQFUHDVH R\u0d76FHU FRPSHQVDWLRQ GR QRW VX\u0d76FH WR HVWDEOLVK D PRWLYH). $V IRU\n\nWKH VHFRQG DOOHJDWLRQ\u000f WKLV &RXUW KDV REVHUYHG WKDW \u00b3WKH GHVLUH IRU WKH FRUSRUDWLRQ WR \u0011 \u0011 \u0011\n\nNHHS VWRFN SULFHV KLJK WR LQFUHDVH R\u0d76FHU FRPSHQVDWLRQ \u0011 \u0011 \u0011 GRHV QRW VX\u0d76FH WR HVWDEOLVK D\n\nPRWLYH\u0011\u00b4 Plug Power, \u0015\u0013\u0015\u0015 :/ \u0017\u0019\u0016\u0014\u001b\u001c\u0015\u000f DW \u0014\u0014\u0011 AFFRUGLQJO\\\u000f 3ODLQWL\u0d75V KDYH IDLOHG WR\n\nSURSHUO\\ DOOHJH PRWLYH IRU DQ\\ RI WKH ,QGLYLGXDO 3ODLQWL\u0d75V\u0011\n       b. 3ODLQWL\u09fcV $OOHJDWLRQV RI 5HFNOHVV 'LVUHJDUG or \u201cCircumstantial\u201d Scienter are\n          ,QVX\u09fdFLHQW.\n\n       :KHQ D SODLQWL\u0d75 IDLOV WR DOOHJH D PRWLYH WR FRPPLW IUDXG\u000f WKH SODLQWL\u0d75\u00b6V DOOHJDWLRQV\n\nWKDW LQGLFDWH D GHIHQGDQW\u00b6V UHFNOHVVQHVV \u00b3PXVW EH FRUUHVSRQGLQJO\\ JUHDWHU\u0011\u00b4 Kalnit v.\n\nEichler\u000f \u0015\u0019\u0017 )\u0011\u0016G \u0014\u0016\u0014\u000f \u0014\u0017\u0015 \u0015G &LU\u0011 \u0015\u0013\u0013\u0014 LQWHUQDO FLWDWLRQV RPLWWHG \u001e accord S. Cherry\n\nSt., LLC v. Hennessee Group LLC\u000f \u0018\u001a\u0016 )\u0011\u0016G \u001c\u001b\u000f \u0014\u0013\u001c \u0015G &LU\u0011 \u0015\u0013\u0013\u001c \u0011 3ODLQWL\u0d75V PXVW SOHDG\n\nFRQGXFW WKDW LV \u00b3KLJKO\\ XQUHDVRQDEOH\u00b4 RU UH\u00c0HFWV \u00b3DQ H[WUHPH GHSDUWXUH\u00b4 IURP WKH\n\nVWDQGDUGV RI RUGLQDU\\ FDUH\u0011 Board of Trustees of City of Ft. Lauderdale General\n\nEmployees\u2019 Retirement System v. Mechel OAO\u000f \u001b\u0014\u0014 )\u0011 6XSS\u0011 \u0015G \u001b\u0018\u0016\u000f \u001b\u0019\u001c 6\u0011'\u00111\u0011< \u0015\u0013\u0014\u0014 \u000f\n\nD\u09fc\u00b6G VXE QRP\u0011 )UHGHULFN Y\u0011 0HFKHO 2$2\u000f \u0017\u001a\u0018 )\u0011 $SS\u00b6[ \u0016\u0018\u0016 \u0015G &LU\u0011 \u0015\u0013\u0014\u0015 \u0011 \u0e60LV UHTXLUHV\n\n\n                                              \u0016\u001a\n\f   Case 1:23-cv-10982-ER          Document 73         Filed 09/30/25      Page 38 of 46\n\n\n\n\nSOHDGLQJ SDUWLFXODUL]HG IDFWV WKDW VKRZ WKH GHIHQGDQWV KDG \u00b3NQRZOHGJH RI IDFWV RU DFFHVV\n\nWR LQIRUPDWLRQ FRQWUDGLFWLQJ WKHLU SXEOLF VWDWHPHQWV\u0011\u00b4 Kalnit\u000f \u0015\u0019\u0017 )\u0011\u0016G DW \u0014\u0017\u0015\u0011 3ODLQWL\u0d75V\n\n\u00b3PXVW VSHFL\u00bfFDOO\\ LGHQWLI\\ WKH UHSRUWV RU VWDWHPHQWV FRQWDLQLQJ WKLV LQIRUPDWLRQ\u0011\u00b4 Mechel\n\nOAO\u000f \u001b\u0014\u0014 )\u0011 6XSS\u0011 \u0015G DW \u001b\u0019\u001c\u0011\n\n       8QGHU WKH \u00b3FRQVFLRXV PLVEHKDYLRU RU UHFNOHVVQHVV\u00b4 SURQJ\u000f WR TXDOLI\\ DV \u00b3VWURQJ\u000f\u00b4\n\nWKH LQIHUHQFH RI VFLHQWHU IURP WKH IDFWV DOOHJHG \u00b3PXVW EH PRUH WKDQ PHUHO\\ SODXVLEOH RU\n\nUHDVRQDEOH\u2014LW PXVW EH FRJHQW DQG DW OHDVW DV FRPSHOOLQJ DV DQ\\ RSSRVLQJ LQIHUHQFH RI\n\nnoQIUDXGXOHQW LQWHQW\u0011\u00b4 Tellabs\u000f \u0018\u0018\u0014 8\u00116\u0011 DW \u0016\u0014\u0017\u0011 ,I DQ LQIHUHQFH RI IUDXGXOHQW LQWHQW LV QRW\n\n\u00b3DW OHDVW DV FRPSHOOLQJ\u00b4 DV D FRQWUDU\\ LQIHUHQFH\u000f LW LV LQDGHTXDWH\u000f HYHQ LQ D \u00b3FORVH FDVH\u0011\u00b4\n\nSlayton, \u0019\u0013\u0017 )\u0011\u0016G DW \u001a\u001a\u001a\u0011 $Q LQIHUHQFH RI VFLHQWHU QHHG QRW EH \u00b3LUUHIXWDEOH\u000f i.e\u0011\u000f RI WKH\n\n\u00b5VPRNLQJ-JXQ\u00b6 JHQUH\u000f RU HYHQ WKH PRVW SODXVLEOH RI FRPSHWLQJ LQIHUHQFHV\u0011\u00b4 Tellabs, 551\n\n8\u00116\u0011 DW \u0016\u0015\u0017 TXRWDWLRQ RPLWWHG \u001e see also City of Pontiac General Employees\u2019 Retirement\n\nSystem v. Lockheed Martin Corporation\u000f \u001b\u001a\u0018 )\u0011 6XSS\u0011 \u0015G \u0016\u0018\u001c\u000f \u0016\u001a\u0015 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0015 \u00b3>$@W\n\nWKH PRWLRQ WR GLVPLVV VWDJH\u000f D WLH RQ VFLHQWHU JRHV WR WKH SODLQWL\u0d75\u0011\u00b4 \u0011 \u00b3%XW JHQHULF DQG\n\nFRQFOXVRU\\ DOOHJDWLRQV EDVHG XSRQ UXPRU RU FRQMHFWXUH DUH XQGLVSXWHGO\\ LQVX\u0d76FLHQW WR\n\nVDWLVI\\ WKH KHLJKWHQHG SOHDGLQJ VWDQGDUG\u0011\u00b4 Campo v. Sears Holdings Corporation, 635 F.\n\n6XSS\u0011 \u0015G \u0016\u0015\u0016\u000f \u0016\u0016\u0019 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u001c \u000f D\u09fc\u2019d\u000f \u0016\u001a\u0014 )\u0011 $SS\u00b6[ \u0015\u0014\u0015 \u0015G &LU\u0011 \u0015\u0013\u0014\u0013 \u0011 \u00b3\u0e60XV\u000f D\n\nFRPSODLQW \u00b5ZKLFK IDLOV WR DGGXFH DQ\\ VSHFL\u00bfF IDFWV VXSSRUWLQJ DQ LQIHUHQFH RI\n\nNQRZOHGJHDEOH SDUWLFLSDWLRQ LQ WKH DOOHJHG IUDXG\u000f ZLOO QRW VDWLVI\\ HYHQ D UHOD[HG\n\nVWDQGDUG\u0011\u00b6\u00b4 Faulkner v. Verizon Communications, Inc., \u0014\u0018\u0019 )\u0011 6XSS\u0011 \u0015G \u0016\u001b\u0017\u000f \u0016\u001c\u0016\n\n6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0014 TXRWLQJ Devaney v. Chester\u000f \u001b\u0014\u0016 )\u0011\u0015G \u0018\u0019\u0019\u000f \u0018\u0019\u001c \u0015G &LU\u0011 \u0014\u001c\u001b\u001a \u0011\n\n       +HUH\u000f 3ODLQWL\u0d75V DOOHJH WKDW \u0014 IRUPHU HPSOR\\HHV\u00b6 UHSRUWV GHVFULEH WKH \u00b3VSHFL\u00bfF\n\nDQG FRQWUDGLFWRU\\ LQIRUPDWLRQ\u00b4 'HIHQGDQWV ZHUH DZDUH RI\u000f \u0015 WKDW WKH DOOHJHG\n\nPLVUHSUHVHQWDWLRQV DQG RPLVVLRQV ZHUH ZLWK UHVSHFW WR WKH PRVW VLJQL\u00bfFDQW SDUWV RI\n\n)DUIHWFK\u00b6V EXVLQHVV\u000f \u0016 WKH ,QGLYLGXDO 'HIHQGDQWV KHOG WKHPVHOYHV RXW DV NQRZOHGJHDEOH\u000f\n\nDQG \u0017 WKH \u00b3VXVSLFLRXV\u00b4 WLPLQJ RI H[HFXWLYHV\u00b6 GHSDUWXUH DUH VX\u0d76FLHQW WR HVWDEOLVK UHFNOHVV\n\nGLVUHJDUG\u0011 \u0088\u0088 158, 220\u201325, \u0017\u0018\u0019\u201358\u000f \u0017\u001a\u0015\u201381.\n\n\n                                             38\n\f     Case 1:23-cv-10982-ER             Document 73           Filed 09/30/25        Page 39 of 46\n\n\n\n\n        :LWK UHJDUGV WR WKH \u00bfUVW WZR SRLQWV\u000f 3ODLQWL\u0d75V ODUJHO\\ UHSHDW WKHLU DOOHJDWLRQV RI\n\nVFLHQWHU EDVHG RQ WKH IRUPHU HPSOR\\HHV\u00b6 DOOHJDWLRQV\u000f \u0088\u0088 \u0018\u0017\u2013\u0019\u0018\u000f DQG FODLPV WKDW WKHVH ZHUH\n\nUHG \u00c0DJV WKDW 'HIHQGDQWV KDG NQRZOHGJH RI DW WKH WLPH RI WKH DOOHJHG PLVVWDWHPHQWV\u0011 \u0015\u001a             26F\n\n\n\n\n'RF\u0011 \u0017\u001b DW \u0016\u0018. TR WKH H[WHQW WKDW SODLQWL\u0d75V DVVHUW WKDW GHIHQGDQWV KDG DFFHVV WR FRQWUDU\\\n\nIDFWV\u000f WKH FRPSODLQW PXVW \u00b3VSHFL\u00bfFDOO\\ LGHQWLI\\ WKH UHSRUWV RU VWDWHPHQWV FRQWDLQLQJ WKLV\n\nLQIRUPDWLRQ\u0011\u00b4 In re General Electric Co. Securities Litigation\u000f \u001b\u0018\u0019 )\u0011 6XSS\u0011 \u0015G \u0019\u0017\u0018\u000f \u0019\u0018\u001c\n\n 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0015 FLWDWLRQ RPLWWHG \u0011 \u00b35HFNOHVVQHVV LQ WKH VFLHQWHU FRQWH[W>\u000f KRZHYHU\u000f@\n\nFDQQRW EH PHUHO\\ HQKDQFHG QHJOLJHQFH\u0011\u00b4 In re JP Morgan Chase Securities Litigation,\n\n\u0016\u0019\u0016 )\u0011 6XSS\u0011 \u0015G \u0018\u001c\u0018\u000f \u0019\u0015\u0017 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u0018 .\n\n        +HUH, QRQH RI WKH IRUPHU HPSOR\\HHV VSRNH ZLWK 1HYHV RU 3KDLU\u000f DQG RQO\\ RQH RI\n\nWKHP\u000f )(\u0019\u000f VSRNH ZLWK -RUGDQ\u000f once\u0011 \u0088\u0088 \u0015\u0014\u001c\u2013\u0015\u0013\u0011 \u00b3>7@KH ODZ LV DEXQGDQWO\\ FOHDU WKDW >LQ\n\nFDVHV ZKHUH WKH ZLWQHVVHV KDG QR FRQWDFW ZLWK WKH ,QGLYLGXDO 'HIHQGDQWV\u000f WKHLU@\n\nDOOHJDWLRQV DUH LQVX\u0d76FLHQW WR VXSSRUW VFLHQWHU\u0011\u00b4 Wilbush v. Ambac Financial Group, Inc.,\n\n\u0015\u001a\u0014 )\u0011 6XSS\u0011 \u0016G \u0017\u001a\u0016\u000f \u0017\u001c\u001a 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001a LQWHUQDO TXRWDWLRQV RPLWWHG \u0011 &RQVHTXHQWO\\\u000f\n\nRQO\\ )(\u0019\u00b6V VWDWHPHQWV DERXW -RUGDQ\u00b6V IDLOXUH WR GLVFORVH WKH DOOHJHG GH\u00bfFLHQFLHV LQ\n\niQWHUQDO FRQWUROV and at NGG PHULW IXUWKHU DQDO\\VLV\u0011 \u0e60H CAC DOOHJHV WKDW\u000f LQ $SULO \u0015\u0013\u0015\u0016\u000f\n\n)(\u0019 KDG D PHHWLQJ ZLWK -RUGDQ ZKHUH -RUGDQ DFNQRZOHGJHG WKDW VKDUHKROGHUV ZHUH\n\nWKUHDWHQLQJ WR SXOO WKHLU PRQH\\ RXW RI )DUIHWFK EHFDXVH RI WKH ORQJVWDQGLQJ PDWHULDO\n\nZHDNQHVV DW 1**. \u0088 219\u001e 'RF\u0011 \u0017\u001b DW \u0016\u0019\u0011 $W WKLV PHHWLQJ )(\u0019 VXJJHVWHG D FRUUHFWLYH\n\nDFWLRQ\u000f ZKLFK -RUGDQ WXUQHG GRZQ\u0011 28 \u0088\u0088 220\u20132. )(\u0019 ZDV SXW oQ D SHUIRUPDQFH\n                                        27F\n\n\n\n\nLPSURYHPHQW SODQ DERXW D PRQWK ODWHU\u000f DOWKRXJK LW LV XQFOHDU IURP WKH CAC ZK\\ WKLV\n\n\n\u0015\u001a\n  \u0e60H CAC DOOHJHV WKDW WKH IRUPHU HPSOR\\HHV KDG FRQWUDGLFWRU\\ LQIRUPDWLRQ UHJDUGLQJ JURZWK SURMHFWLRQV\nDQG SRRUO\\ LQWHJUDWHG DFTXLVLWLRQV\u000f WKH \u00b39$7 VLWXDWLRQ\u000f\u00b4 DQG GH\u00bfFLHQFLHV LQ LQWHUQDO FRQWUROV\u0011 'RF\u0011 \u0017\u001b DW\n\u0016\u0017\u2013\u0019\u0011 6SHFL\u00bfFDOO\\\u000f 3ODLQWL\u0d75V DVVHUW WKDW GXULQJ )(\u0015\u00b6V WHQXUH DW )DUIHWFK\u000f )(\u0015 DQG WKHLU WHDP KDG\nFRQYHUVDWLRQV ZLWK )DUIHWFK\u00b6V OHDGHUVKLS DERXW WKH QHJDWLYH LPSDFW WKH 9$7 LVVXH ZDV KDYLQJ RQ )DUIHWFK\u00b6V\nRSHUDWLQJ FRVWV DQG OLTXLGLW\\ DV ZHOO DV WKH OHQJWK\\ ZDLW WLPHV EHWZHHQ VXEPLWWLQJ DQG UHFHLYLQJ WKH WD[\nFUHGLWV\u0011 \u0088 \u0014\u0018\u001a\u201358.\n28\n  \u0e60H SDUWLHV H[SUHVV GL\u0d75HULQJ YLHZSRLQWV DV WR ZKHWKHU WKLV PHHWLQJ FRQVWLWXWHV PRUH WKDQ GL\u0d75HUHQFHV LQ\nRSLQLRQ\u0011 'RF\u0011 \u0017\u0017 DW \u0017\u0013\u2013\u0014\u001e 'RF\u0011 \u0017\u001b DW \u0016\u0019\u001e 'RF\u0011 \u0018\u0013 DW \u0014\u001b\u0011 \u0e60H &RXUW GRHV QRW \u00bfQG WKLV DUJXPHQW QHFHVVDU\\ WR\nWKH GHWHUPLQDWLRQ RI VFLHQWHU\u0011\n\n\n\n                                                   39\n\f   Case 1:23-cv-10982-ER          Document 73         Filed 09/30/25      Page 40 of 46\n\n\n\n\nDFWLRQ ZDV WDNHQ\u000f DQG VLQFH WKH LQWHUQDO FRQWUROV WHDP DW )DUIHWFK KDd EHHQ \u00bfUHG SULRU WR\n\n)(\u0019 EHLQJ KLUHG\u000f )DUIHWFK KLUHG 'HORLWWH WR SURYLGH PRUH UHVRXUFHV DQG \u00bfQDQFLDO H[SHUWLVH\n\nWR DVVLVW ZLWK WKH WDVN. \u0088\u0088 220\u201323. )DUIHWFK\u00b6V VWDWHPHQWV UHJDUGLQJ WKH LQWHUQDO FRQWUROV\n\nand NGG ZHUH QRW IDOVH RU PLVOHDGLQJ EHFDXVH )DUIHWFK GLVFORVHG LW ZDV ZRUNLQJ RQ\n\nLPSURYLQJ PDWHULDO ZHDNQHVVHV LQ LQWHUQDO FRQWUROV DQG FRQWLQXHG WR XSGDWH LQYHVWRUV DQG\n\nDQDO\\VWV DERXW WKH SRVVLEOH GHOD\\V LQ WKHLU H\u0d75RUWV WR DGGUHVV WKH LVVXHV DQG IRU WKHLU\n\nUHPHGLDWLRQ PHDVXUHV WR WDNH H\u0d75HFW. \u0088\u0088 202\u000f \u0015\u001c\u0018\u000f \u0016\u001c\u0017\u000f \u0017\u0017\u0015; Doc. 50 at 12.\n\n       )(\u0019\u00b6V DOOHJDWLRQV WKDW 1HYHV DQG -RUGDQ PDGH ODVW-PLQXWH FKDQJHV WR WKH 4\u0014 \u0015\u0013\u0015\u0016\n\nLQWHUQDO FRQWURO GLVFORVXUH EHIRUH LW ZDV SXEOLVKHG\u000f \u0088 \u0015\u0015\u0018\u001e Doc. 50 at 32, OLNHZLVH DUH\n\nLQVX\u0d76FLHQW WR VXSSRUW DQ LQIHUHQFH RI VFLHQWHU\u0011 3ODLQWL\u0d75V GR QRW DOOHJH WKDW PDNLQJ WKHVH\n\nFKDQJHV ZDV LPSURSHU RU LQFRUUHFW\u000f QRU SURYLGH VSHFL\u00bfFLW\\ DV WR ZKDW WKH FKDQJHV ZHUH\u0011\n\nIn re Canopy Growth Securities Litigation, No. 23-cv-\u0017\u0016\u0013\u0015 3$( \u000f \u0015\u0013\u0015\u0017 :/ \u0016\u0017\u0017\u0018\u0017\u0016\u0019\u000f DW\n\n \u0014\u0017 6\u0011'\u00111\u0011<\u0011 -XO\\ \u0014\u001a\u000f \u0015\u0013\u0015\u0017 \u000f appeal withdrawn sub nom. In re Canopy Growth\n\nSecurities Litigation\u000f 1R\u0011 \u0015\u0017-\u0015\u0014\u0015\u0014\u000f \u0015\u0013\u0015\u0017 :/ \u0017\u001a\u0019\u0016\u0015\u0015\u0018 \u0015G &LU\u0011 2FW\u0011 \u001c\u000f \u0015\u0013\u0015\u0017 \u00bfQGLQJ\n\nDJDLQVW DQ LQIHUHQFH RI VFLHQWHU ZKHUH WKH DOOHJDWLRQV GR \u00b3QRW HVWDEOLVK ZKDW VSHFL\u00bfF\n\nFRQWUDGLFWRU\\ LQIRUPDWLRQ WKH PDNHUV RI WKH VWDWHPHQWV KDG DQG WKH FRQQHFWLRQ WHPSRUDO\n\nRU RWKHUZLVH EHWZHHQ WKDW LQIRUPDWLRQ DQG WKH VWDWHPHQWV DW LVVXH\u00b4 ; Abengoa\u000f \u0017\u001b\u0014 )\u0011\n\n6XSS\u0011 \u0016G at \u0015\u0013\u001c GHWHUPLQLQJ WKDW IRUPHU HPSOR\\HH DOOHJDWLRQV ZHUH LQVX\u0d76FLHQW ZKHUH\n\n\u00b3>W@KHUH LV QRWKLQJ WR VXJJHVW WKDW \u0011 \u0011 \u0011 WKH PHWKRG IRU FRUUHFWLQJ DQ\\ GLVFUHSDQFLHV ZDV\n\nLQKHUHQWO\\ LPSURSHU\u0011\u00b4 .\n\n       )XUWKHUPRUH\u000f 3ODLQWL\u0d75V\u00b6 UHPDLQLQJ DUJXPHQWV DOVR IDLO WR SODXVLEO\\ DOOHJH WKDW WKH\n\n,QGLYLGXDO 'HIHQGDQWV NQHZ RU VKRXOG KDYH NQRZQ WKDW WKH FKDOOHQJHG VWDWHPHQWV ZHUH\n\nIDOVH RU PLVOHDGLQJ\u000f RU RWKHUZLVH SURYLGH HYLGHQFH FRQVWLWXWLQJ VWURQJ FLUFXPVWDQWLDO\n\nHYLGHQFH RI PLVEHKDYHU RU UHFNOHVVQHVV\u0011 'RF\u0011 \u0017\u001b DW \u0016\u001a\u20139.\n\n       First, 3ODLQWL\u0d75V DOOHJH WKDW WKH ,QGLYLGXDO 'HIHQGDQWV KDG NQRZOHGJH RI WKH\n\nDOOHJHG PLVUHSUHVHQWDWLRQV DQG RPLVVLRQV\u000f ZKLFK FRQFHUQHG WKH PRVW LPSRUWDQW OLQHV RI\n\nEXVLQHVV DW )DUIHWFK\u000f GXH WR WKHLU SRVLWLRQV\u0011 'RF\u0011 \u0017\u001b DW \u0016\u001a\u2013\u001b\u0011 +RZHYHU\u000f WKH \u00b3FRUH\n\n\n                                             \u0017\u0013\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 41 of 46\n\n\n\n\nRSHUDWLRQV\u00b4 WKHRU\\ DW PRVW FRQVWLWXWHV \u00b3VXSSOHPHQWDO VXSSRUW\u00b4 IRU DOOHJLQJ VFLHQWHU EXW\n\nGRHV QRW LQGHSHQGHQWO\\ HVWDEOLVK VFLHQWHU\u0011 See New Orleans Employees Retirement\n\nSystem v. Celestica, Inc.\u000f \u0017\u0018\u0018 )HG\u0011 $SS\u00b6[\u0011 \u0014\u0013\u000f \u0014\u0017 Q\u0011 \u0016 \u0015G &LU\u0011 \u0015\u0013\u0014\u0014 VXPPDU\\ RUGHU\n\nGHFOLQLQJ WR GHFLGH ZKHWKHU WKH IDFW WKDW WKH DOOHJHG PLVUHSUHVHQWDWLRQV UHODWHG WR WKH\n\nGHIHQGDQW V \u00b3FRUH RSHUDWLRQV\u00b4 ZDV VX\u0d76FLHQW RQ LWV RZQ WR HVWDEOLVK VFLHQWHU EXW QRWLQJ\n\nWKDW WKH FRQFHSW WKDW \u00b3DOOHJDWLRQV RI D FRPSDQ\\\u00b6V FRUH RSHUDWLRQV\u00abFDQ SURYLGH\n\nVXSSOHPHQWDO VXSSRUW IRU DOOHJDWLRQV RI VFLHQWHU\u000f HYHQ LI WKH\\ FDQQRW HVWDEOLVK VFLHQWHU\n\nLQGHSHQGHQWO\\\u00b4 KDV VXSSRUW LQ WKH FDVH ODZ \u001e see also In re Wachovia Equity Securities\n\nLitigation, \u001a\u0018\u0016 )\u0011 6XSS\u0011 \u0015G \u0016\u0015\u0019\u000f \u0016\u0018\u0016 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0014 \u00b3WKH &RXUW FRQVLGHUV \u00b5FRUH\n\nRSHUDWLRQV\u00b6 DOOHJDWLRQV WR FRQVWLWXWH VXSSOHPHQWDU\\ EXW QRW LQGHSHQGHQWO\\ VX\u0d76FLHQW\n\nPHDQV WR SOHDG VFLHQWHU\u0011\u00b4 \u001e Freudenberg v. E*Trade Financial Corporation\u000f \u001a\u0014\u0015 )\u0011 6XSS\u0011\n\n\u0015G \u0014\u001a\u0014\u000f \u0015\u0013\u0014 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0013 \u00bfQGLQJ WKDW WKH SODLQWL\u0d75V DGHTXDWHO\\ SOHDG VFLHQWHU ZKHUH\n\nRQH RI PDQ\\ DOOHJDWLRQV ZDV WKDW WKH PLVVWDWHPHQWV FRQFHUQHG WKH GHIHQGDQWV\u00b6 FRUH\n\nRSHUDWLRQV \u0011\n\n       Second, 3ODLQWL\u0d75V DOOHJH WKDW WKH ,QGLYLGXDO DHIHQGDQWV FRQVLVWHQWO\\ KHOG\n\nWKHPVHOYHV RXW DV NQRZOHGJHDEOH DERXW )DUIHWFK\u00b6V NH\\ \u00bfQDQFLDO WRSLFV DQG WKDW WKHLU\n\nDXWKRULW\\ ZLWK ZKLFK WKH\\ VSRNH DQG \u00b3LQGLFDWHG WKDW WKH\\ HLWKHU KDG DFWXDO NQRZOHGJH RI\n\nWKH VXEMHFW PDWWHU GLVFXVVHG RU ZHUH UHFNOHVV WR WKH OLNHOLKRRG RI PLVOHDGLQJ LQYHVWRUV\u0011\u00b4\n\n'RF\u0011 \u0017\u001b DW \u0016\u001b\u20139. +RZHYHU\u000f WR HVWDEOLVK DQ LQIHUHQFH RI VFLHQWHU\u000f 3ODLQWL\u0d75 PXVW GR PRUH\n\nWKDQ DOOHJH WKDW WKH ,QGLYLGXDO 'HIHQGDQWV KDG NQRZOHGJH RI FHUWDLQ IDFWV FRQWUDU\\ WR WKHLU\n\nSXEOLF VWDWHPHQWV VLPSO\\ E\\ YLUWXH RI WKHLU KLJK-OHYHO SRVLWLRQV\u0011 Lipow v. Net1 UEPS\n\nTechnologies, Inc.\u000f \u0014\u0016\u0014 )\u0011 6XSS\u0011 \u0016G \u0014\u0017\u0017\u000f \u0014\u0019\u0016 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0018 FLWLQJ In re Nokia Oyj\n\n(Nokia Corp.) Securities Litigation\u000f \u0017\u0015\u0016 )\u0011 6XSS\u0011 \u0015G \u0016\u0019\u0017\u000f \u0017\u0013\u0019 6\u0011'\u00111\u0011<\u0011\u0015\u0013\u0013\u0019 KROGLQJ\n\nWKDW JHQHUDOL]HG DOOHJDWLRQV WKDW WKH LQGLYLGXDO GHIHQGDQWV \u00b3NQHZ\u000f RU VKRXOG KDYH NQRZQ\u000f\n\nWKDW WKH\\ ZHUH PLVUHSUHVHQWLQJ PDWHULDO IDFWV\u000f EDVHG RQ WKHLU VHQLRU SRVLWLRQV LQ WKH\n\nFRPSDQ\\\u00b4 DUH LQVX\u0d76FLHQW WR HVWDEOLVK VFLHQWHU ). \u201c>C@RXUWV LQ WKLV &LUFXLW KDYH ORQJ KHOG\n\nWKDW DFFXVDWLRQV IRXQGHG RQ QRWKLQJ PRUH WKDQ D GHIHQGDQW\u00b6V FRUSRUDWH SRVLWLRQ DUH\n\n\n                                            \u0017\u0014\n\f   Case 1:23-cv-10982-ER           Document 73         Filed 09/30/25     Page 42 of 46\n\n\n\n\nHQWLWOHG WR QR ZHLJKt\u0011\u00b4 City of Brockton Retirement System v. Avon Products, Inc., No.\n\n11-cv-\u0017\u0019\u0019\u0018 (PGG), \u0015\u0013\u0014\u0017 :/ \u0017\u001b\u0016\u0015\u0016\u0015\u0014\u000f DW \u0014\u001c 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0017 \u0011\n\n       \u0b61LUG, 3ODLQWL\u0d75V DVVHUW WKDW WKH WLPLQJ RI WKH UHVLJQDWLRQ RI DW OHDVW HLJKW VHQLRU\n\nH[HFXWLYHV IURP $XJXVW \u0015\u0013\u0015\u0015 WR 1RYHPEHU \u0015\u0013\u0015\u0015 \u00b3VXJJHVWV WKDW &RPSDQ\\ H[HFXWLYHV\n\nZHUH DZDUH RI )DUIHWFK\u00b6V WUXH \u00bfQDQFLDO FRQGLWLRQ DQG VRPH OHIW WR DYRLG OLDELOLW\\\u0011\u00b4 Doc.\n\n\u0017\u001b DW \u0016\u001c\u0011 $V D JHQHUDO VWDWHPHQW RI ODZ\u000f UHVLJQDWLRQV PXVW EH \u00b3KLJKO\\ XQXVXDO DQG\n\nVXVSLFLRXV\u00b4 LQ RUGHU WR VXSSRUW DQ LQIHUHQFH RI VFLHQWHU\u0011 In re Scottish Re Group\n\nSecurities Litigation\u000f \u0018\u0015\u0017 )\u0011 6XSS\u0011 \u0015G \u0016\u001a\u0013\u000f Q\u0011 \u0014\u001a\u0019 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0013\u001a \u0011 $ UHVLJQDWLRQ FDQ EH\n\nKLJKO\\ XQXVXDO RU VXVSLFLRXV ZKHQ LQGHSHQGHQW IDFWV SRLQW WR WKH UHVLJQDWLRQ EHLQJ WLHG WR\n\nWKH DOOHJHG IUDXG\u000f WKDW WKH UHVLJQDWLRQ DOHUWHG WKH ,QGLYLGXDO 'HIHQGDQWV WR WKH IUDXG\u000f RU\n\nWKDW VFLHQWHU ZDV RWKHUZLVH HYLGHQW\u0011 Id. DW \u0016\u001c\u0017 SRLQWLQJ WR PXOWLSOH UHVLJQDWLRQV DQG\n\nHYLGHQFH LQGLFDWLQJ WKDW GHIHQGDQWV\u00b6 IUDXG ZDV \u00b3WDQWDPRXQW WR FRQVFLRXV PLVEHKDYLRU\u00b4).\n\n+HUH\u000f 3ODLQWL\u0d75V KDYH QRW FRPH UHPRWHO\\ FORVH WR W\\LQJ WKRVH UHVLJQDWLRQV WR WKH DOOHJHG\n\nIUDXG\u0011 \u0e60H RQO\\ UHVLJQDWLRQ WKDW 3ODLQWL\u0d75V DWWHPSW WR WLH WR WKH DOOHJDWLRQV LV WKDW RI J.\n\n0LFKDHO (YDQ IURP WKH %RDUG RI 'LUHFWRUV\u0011 3ODLQWL\u0d75V DVVHUW WKDW VLJQDOHG WR LQYHVWRUV\u000f\n\nDQDO\\VWV DQG PDUNHW H[SHUWV WKDW SUHYLRXV VXSSRUWHUV ZHUH VWHSSLQJ EDFN IURP WKH\n\n&RPSDQ\\\u0011 \u0088 \u0015\u0018\u0018\u0011 \u0e60LV VWDWHPHQW\u000f KRZHYHU\u000f GRHV QRW FRPH FORVH WR EHLQJ DQ LQGLFLXP RI\n\nKLJKO\\ XQXVXDO RU VXVSLFLRXV FLUFXPVWDQFHV DQG LV WKHUHIRUH LQVX\u0d76FLHQW WR VXSSRUW WKH\n\nUHTXLUHG VWURQJ FLUFXPVWDQWLDO HYLGHQFH RI VFLHQWHU\u0011\n\n       \u0e60HUHIRUH\u000f IRU WKH UHDVRQV GLVFXVVHG DERYH\u000f 3ODLQWL\u0d75V KDYH QRW VX\u0d76FLHQWO\\ DOOHJHd\n\nDQ LQIHUHQFH RI VFLHQWHU \u00b3DW OHDVW DV VWURQJ DV DQ\\ RSSRVLQJ LQIHUHQFH>\u0011@\u00b4 In re Scottish,\n\n\u0018\u0015\u0017 )\u0011 6XSS\u0011 \u0015G at 383\u0011 +HUH\u000f WKH \u00b3PRUH FRPSHOOLQJ\u00b4 LQIHUHQFH LV WKDW WKH ,QGLYLGXDO\n\n'HIHQGDQW EHOLHYHG WKDW WKHLU GLVFORVXUHV UHJDUGLQJ WKH 1** DFTXLVLWLRQ DQG WKHLU\n\nLQWHUQDO FRQWUROV ZHUH VX\u0d76FLHQW\u0011 See generally In re Bank of America AIG Disclosure\n\nSecurities Litigation\u000f \u001c\u001b\u0013 )\u0011 6XSS\u0011 \u0015G \u0018\u0019\u0017 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u0016 \u000f D\u09fc\u00b6G\u000f \u0018\u0019\u0019 )\u0011 $SS\u00b6[ 93 (2d\n\n&LU\u0011 \u0015\u0013\u0014\u0017 (UHMHFWLQJ a \u00bfQGLQJ RI UHFNOHVVQHVV ZKHUH GHIHQGDQWV UHDVRQDEO\\ EHOLHYHG WKH\\\n\n\n\n\n                                             \u0017\u0015\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 43 of 46\n\n\n\n\nKDG QR GLVFORVXUH REOLJDWLRQV \u0011 $FFRUGLQJO\\\u000f 3ODLQWL\u0d75V\u00b6 6HFWLRQ \u0014\u0013 E DQG 5XOH \u0014\u0013 E -5\n\nFODLPV DV WR WKH ,QGLYLGXDO 'HIHQGDQWV DUH ',60,66('\u0011\n           3ODLQWL\u09fcV +DYH 1RW $GHTXDWHO\\ 3OHG Scheme Liability Under Rule 10b-5(a)\n           and (c)\n\n       6FKHPH OLDELOLW\\ DULVHV ZKHQ GHIHQGDQWV HQJDJH LQ GHFHSWLYH FRQGXFW LQ\n\nFRQMXQFWLRQ ZLWK GHFHSWLYH VWDWHPHQWV\u0011 See Lorenzo v. SEC\u000f \u0018\u001b\u001a 8\u00116\u0011 \u001a\u0014\u000f \u001a\u001b\u201382 (2019).\n\n7R VWDWH D FODLP IRU VFKHPH OLDELOLW\\\u000f D SODLQWL\u0d75 PXVW SUHVHQW IDFWV VKRZLQJ \u0014 WKDW WKH\n\nGHIHQGDQW FRPPLWWHG D GHFHSWLYH RU PDQLSXODWLYH DFW\u000f \u0015 LQ IXUWKHUDQFH RI WKH DOOHJHG\n\nVFKHPH WR GHIUDXG\u000f \u0016 ZLWK VFLHQWHU\u000f DQG \u0017 UHOLDQFH\u0011 Puddu v. 6D Glob. Technologies,\n\nInc., No. 15-cv-\u001b\u0013\u0019\u0014 $-1 \u000f \u0015\u0013\u0015\u0014 :/ \u0014\u0014\u001c\u001b\u0018\u0019\u0019\u000f DW \u001c 6\u0011'\u00111\u0011<\u0011 0DU\u0011 \u0016\u0013\u000f \u0015\u0013\u0015\u0014 \u001e see also\n\nMenaldi v. Och-=L\u09fc &DSLWDO PDQDJHPHQW *URXS //&\u000f \u0015\u001a\u001a )\u0011 6XSS\u0011 \u0016G \u0018\u0013\u0013\u000f \u0018\u0014\u001a\n\n6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001a \u001e In re Turquoise Hill Resources Limited Securities Litigation, 625 F.\n\n6XSS\u0011 \u0016G \u0014\u0019\u0017\u000f \u0015\u0017\u001a 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0015\u0015 \u0011\n\n       3ODLQWL\u0d75V IDLO WR SOHDG VFKHPH OLDELOLW\\\u0011 'HIHQGDQWV FRUUHFWO\\ SRLQW RXW WKDW \u00b3WKH\n\nCAC FRQWDLQV H[DFWO\\ ]HUR UHIHUHQFHV WR \u00b5VFKHPH OLDELOLW\\\u000f\u00b6 OHW DORQH DOOHJDWLRQV LQ\n\nVXSSRUW RI LW\u0011\u00b4 'RF\u0011 \u0018\u0013 DW \u0015\u0013\u0011 ,QGHHG\u000f WKH ZRUG \u00b3VFKHPH\u00b4 DSSHDUV RQO\\ WKULFH LQ WKH\n\nHQWLUHW\\ RI WKH \u0014\u001b6-SDJH FRPSODLQW\u0011 \u0088 \u0017\u0018\u0018 \u00b3'HIHQGDQWV SDUWLFLSDWHG LQ WKH IUDXGXOHQW\n\nVFKHPH DOOHJHG KHUHLQ E\\ YLUWXH RI WKHLU SRVVHVVLRQ RI DQG\u0012RU DFFHVV WR LQIRUPDWLRQ\nUH\u00c0HFWLQJ WKH WUXH IDFWV UHJDUGLQJ )DUIHWFK\u00b6V \u00bfQDQFLDO KHDOWK\u000f OLTXLGLW\\ VWUHQJWK\u000f and\n\nLQWHUQDO FRQWUROV RYHU \u00bfQDQFLDO UHSRUWLQJ\u0011\u00b4 \u001e \u0088 \u0017\u001c\u0016 \u00b3>7@KH GDPDJHV VX\u0d75HUHG E\\ 3ODLQWL\u0d75V\n\nDQG RWKHU PHPEHUV RI WKH &ODVV ZHUH IRUHVHHDEO\\ DQG SUR[LPDWHO\\ FDXVHG E\\ 'HIHQGDQWV\u00b6\n\nIUDXGXOHQW VFKHPH WR DUWL\u00bfFLDOO\\ LQ\u00c0DWH )DUIHWFK\u00b6V VWRFN SULFHV DQG WKH VXEVHTXHQW\n\nVLJQL\u00bfFDQW GHFOLQHV LQ WKH YDOXH RI )DUIHWFK VHFXULWLHV ZKHQ 'HIHQGDQWV\u00b6 SULRU\n\nPLVUHSUHVHQWDWLRQV DQG RPLVVLRQV ZHUH UHYHDOHG\u0011\u00b4 \u001e \u0088 \u0018\u0014\u0019 \u00b3'HIHQGDQWV YLRODWHG 6HFWLRQ\n\n\u0014\u0013 E RI WKH ([FKDQJH $FW \u0014\u0018 8\u00116\u0011&\u0011 \u0086\u001a\u001bM E DQG 5XOH \u0014\u0013E-\u0018 \u0014\u001a &\u0011)\u00115\u0011 \u0086\u0015\u0017\u0013\u0011\u00140b-5) in\n\nWKDW WKH\\\u001d D HPSOR\\HG GHYLFHV\u000f VFKHPHV\u000f DQG DUWL\u00bfFHV WR GHIUDXG\u00ab\u00b4 \u0011 1RQH RI WKHVH\n\nLQVWDQFHV FRPH FORVH WR PHHWLQJ WKH SOHDGLQJ UHTXLUHPHQW\u0011 See In re Teva Securities\n\n\n                                             \u0017\u0016\n\f   Case 1:23-cv-10982-ER            Document 73        Filed 09/30/25     Page 44 of 46\n\n\n\n\nLitigation\u000f \u0018\u0014\u0015 )\u0011 6XSS\u0011 \u0016G \u0016\u0015\u0014\u000f \u0016\u0016\u001a '\u0011 &RQQ\u0011 \u0015\u0013\u0015\u0014 \u00b3&RXUWV ULJKWO\\ LQVLVW WKDW D\n\nSODLQWL\u0d75 ZKR LQWHQGV WR EULQJ D 5XOH \u0014\u0013E-\u0018 FODLP EDVHG RQ ERWK PLVVWDWHPHQW DQG VFKHPH\n\nOLDELOLW\\ PXVW GR VR FOHDUO\\ DQG VSHFL\u00bfFDOO\\\u000f\u00b4 W\\SLFDOO\\ \u00b3LQ WZR VHSDUDWH FRXQWV\u00b4 FLWLQJ In\n\nre Smith Barney Transfer Agent Litigation\u000f \u001b\u001b\u0017 )\u0011 6XSS\u0011 \u0015G \u0014\u0018\u0015\u000f \u0014\u0019\u0013\u201361 (S.D.N.Y.\n\n2012)).\n\n          ,Q WKHLU 2SSRVLWLRQ WR WKH 0RWLRQ WR 'LVPLVV\u000f 3ODLQWL\u0d75V UDLVH D VFKHPH OLDELOLW\\\n\nFODLP IRU WKH \u00bfUVW WLPH, DUJXLQJ WKDW \u00b3'HIHQGDQWV\u00b6 GHFHSWLYH FRQGXFW JRHV EH\\RQG WKH\n\nGLVVHPLQDWLRQ RI PLVVWDWHPHQWV WKHPVHOYHV\u0011\u00b4 'RF\u0011 \u0017\u001b DW \u0014\u001a\u0011 6SHFL\u00bfFDOO\\\u000f WKH\\ DOOHJH WKDW\n\nFE6 VKDUHG WKDW 'HIHQGDQWV UHTXLUHG FE6 WR VLJQ R\u0d75 RQ )DUIHWFK\u00b6V LQWHUQDO FRQWUROV IRU\n\nWKH 4\u0014 \u0015\u0013\u0015\u0016 SXEOLF \u00bfQDQFLDO UHSRUWV HYHQ WKRXJK WKH 'HIHQGDQWV LPSOHPHQWHG ODVW-\n\nPLQXWH FKDQJHV\u000f ZKLFK OLPLWHG WKH WLPH )(\u0019 KDG WR XQGHUVWDQG ZKDW WKH FKDQJHV ZHUH\u0011\n\n\u0088\u0088 \u0015\u0015\u0017\u2013\u0015\u0018\u0011 3ODLQWL\u0d75V WKHQ DUJXH WKDW 1HYHV DQG -RUGDQ ERWK UHOLHG RQ WKHVH UHSRUWV\u000f DQG\n\nWKH DOOHJHGO\\ PLVOHDGLQJ LQIRUPDWLRQ FRQWDLQHG WKHUHLQ\u000f ZKHQ GLVFXVVLQJ )DUIHWFK\u00b6V\n\nTXDUWHUO\\ UHVXOWV ZLWK DQDO\\VLV DQG LQYHVWRUV GXULQJ WKH TXDUWHUO\\ FDOO\u0011 See \u0088\u0088 \u0017\u0013\u0013\u2013\u0015\u0017;\n\n'RF\u0011 \u0017\u001b DW \u0014\u001a\u0011 \u0e60H\\ WKHQ DUJXH WKDW\u000f DFFRUGLQJ WR )(\u0019\u000f 'HIHQGDQWV PLVOHDGLQJO\\ DGGHG\n\n\u00b3,QWHUQDO $XGLW\u00b4 WR HPSOR\\HH WLWOHV PDNH LW VHHP OLNH )DUIHWFK KDG a \u201cOHJDOO\\ UHTXLUHG\n\nLQGHSHQGHQW LQWHUQDO DXGLWLQJ IXQFWLRQ\u0011\u00b4 'RF\u0011 \u0017\u001b DW \u0014\u001b\u0011 3ODLQWL\u0d75V DOOHJH WKDW\u000f DV D UHVXOW\u000f\n\n'HIHQGDQWV \u00b3ZHUH DEOH WR DUWL\u00bfFLDOO\\ SURS XS WKH VWRFN SULFH\u000f KLGH WKH &RPSDQ\\\u00b6V\n\nGH\u00bfFLHQW LQWHUQDO FRQWUROV DQG PDWHULDO ULVN RI LQVROYHQF\\ IURP WKH PDUNHW\u000f DQG UDLVH RYHU\n\n\u0007\u0015 ELOOLRQ EHWZHHQ )HEUXDU\\ \u0015\u0013\u0015\u0013 DQG 6HSWHPEHU \u0015\u0013\u0015\u0016\u0011\u00b4 'RF\u0011 \u0017\u001b DW \u0014\u001b\u0011\n\n          $V GLVFXVVHG DERYH\u000f 3ODLQWL\u0d75V KDYH QRW VX\u0d76FLHQWO\\ SOHDGHG VFLHQWHU IRU\n\n'HIHQGDQWV\u0011 \u0e60HUHIRUH\u000f 3ODLQWL\u0d75V\u00b6 VFKHPH OLDELOLW\\ FODLPV DOVR IDLO DV WR WKHP\u0011 Menaldi v.\n\nOch-=L\u09fc &DSLWDO PDQDJHPHQW *URXS //&\u000f \u0015\u001a\u001a )\u0011 6XSS\u0011 \u0016G \u0018\u0013\u0013\u000f \u0018\u0014\u001a 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001a)\n\n\u00b3>V@FKHPH OLDELOLW\\ FODLPV DUH VXEMHFW WR WKH 36/5$ SOHDGLQJ VWDQGDUG ZLWK UHVSHFW WR\n\nVFLHQWHU\u0011\u00b4 \u0011\n\n\n\n\n                                              \u0017\u0017\n\f   Case 1:23-cv-10982-ER          Document 73        Filed 09/30/25      Page 45 of 46\n\n\n\n\n       C. Section 20(a) Liability\n\n       3ODLQWL\u0d75V FRQWHQG WKDW WKH ,QGLYLGXDO 'HIHQGDQWV ZHUH FRQWUROOLQJ SHUVRQV RI\n\n)DUIHWFK GXULQJ WKH &ODVV 3HULRG DQG DUH OLDEOH WR 3ODLQWL\u0d75V IRU YLRODWLRQV RI 6HFWLRQ \u0015\u0013 D\n\nRI WKH 6HFXULWLHV ([FKDQJH $FW\u0011 'RF\u0011 \u0016\u0017 \u0088\u0088 518\u201325.\n\n       \u00b37R DVVHUW D SULPD IDFLH FDVH XQGHU 6HFWLRQ \u0015\u0013 D \u000f D SODLQWL\u0d75 \u00b5PXVW VKRZ D SULPDU\\\n\nYLRODWLRQ E\\ WKH FRQWUROOHG SHUVRQ DQG FRQWURO RI WKH SULPDU\\ YLRODWRU E\\ WKH WDUJHWHG\n\nGHIHQGDQW\u000f DQG VKRZ WKDW WKH FRQWUROOLQJ SHUVRQ ZDV LQ VRPH PHDQLQJIXO VHQVH D FXOSDEle\n\nSDUWLFLSDQW LQ WKH IUDXG SHUSHWUDWHG E\\ WKH FRQWUROOHG SHUVRQ\u0011\u00b6\u00b4 Mechel\u000f \u001b\u0014\u0014 )\u0011 6XSS\u0011 \u0015G\n\nat \u001b\u001b\u0015 TXRWLQJ S.E.C. v. First Jersey Sec., Inc.\u000f \u0014\u0013\u0014 )\u0011\u0016G \u0014\u0017\u0018\u0013\u000f \u0014\u0017\u001a\u0015 \u0015G &LU\u0011 \u0014\u001c\u001c\u0019 \u000f\n\nD\u09fc\u00b6G VXE QRP\u0011 )UHGHULFN\u000f \u0017\u001a\u0018 )\u0011 $SS\u00b6[ \u0016\u0018\u0016\u0011 %HFDXVH 3ODLQWL\u0d75V KDve IDLOHG WR DOOHJH D\n\nSULPDU\\ YLRODWLRQ RI WKH ([FKDQJH $FW\u000f WKHLU FODLP SXUVXDQW WR 6HFWLRQ \u0015\u0013 D LV DOVR\n\nGLVPLVVHG\u0011 6HH 6WHDP\u00bfWWHUV /RFal 449 Pension Plan v. Skechers U.S.A., Inc.\u000f \u0017\u0014\u0015 )\u0011\n\n6XSS\u0011 \u0016G \u0016\u0018\u0016\u000f \u0016\u0019\u001c 6\u0011'\u00111\u0011<\u0011 \u0015\u0013\u0014\u001c \u000f D\u09fc\u00b6G VXE QRP\u0011 &DYDOLHU )XQGDPHQWDO *URZWK )XQG\n\nv. Skechers U.S.A., Inc.\u000f \u001b\u0015\u0019 )\u0011 $SS\u00b6[ \u0014\u0014\u0014 \u0015G &LU\u0011 \u0015\u0013\u0015\u0013 \u0011\nIV.    LEAVE TO AMEND\n\n       \u0e60H 6HFRQG &LUFXLW KDV LQVWUXFWHG &RXUWV QRW WR GLVPLVV D FRPSODLQW \u00b3ZLWKRXW\n\nJUDQWLQJ OHDYH WR DPHQG DW OHDVW RQFH ZKHQ D OLEHUDO UHDGLQJ RI WKH FRPSODLQW JLYHV DQ\\\n\nLQGLFDWLRQ WKDW D YDOLG FODLP PLJKW EH VWDWHG\u0011\u00b4 Shabazz v. Bezio\u000f \u0018\u0014\u0014 )\u0011 $SS\u00b6[\u0011 \u0015\u001b\u000f \u00160 (2d\n&LU\u0011 \u0015\u0013\u0014\u0016 TXRWLQJ Shomo v. City of New York\u000f \u0018\u001a\u001c )\u0011\u0016G \u0014\u001a\u0019\u000f \u0014\u001b\u0016 \u0015G &LU\u0011 \u0015\u0013\u0013\u001c\n\nLQWHUQDO TXRWDWLRQ PDUNV RPLWWHG \u0011 +HUH\u000f 3ODLQWL\u0d75V UHTXHVW WKDW WKH\\ EH JUDQWHG OHDYH WR\n\nDPHQG WKHLU SOHDGLQJV LI WKH &RXUW JUDQWV WKH PRWLRQ WR GLVPLVV LQ ZKROH RU LQ SDUt. Doc.\n\n\u0017\u001b DW \u0017\u0017\u0011 :KLOH WKH &RXUW KDV DOUHDG\\ JUDQWHG 3ODLQWL\u0d75V WKH RSSRUWXQLW\\ WR DPHQG WKHLU\n\nRULJLQDO &RPSODLQW\u000f LW ZDV QRW LQ WKH FRQWH[W RI D PRWLRQ WR GLVPLVV DQG WKH &RXUW KDV\n\nWKHUHIRUH QRW SURYLGHG JXLGDQFH DV WR KRZ WKHLU FODLPV PD\\ EH DGHTXDWHO\\ PDGH\u0011 In\n\nLoreley Financing (Jersey) No. 3 Ltd. v. Wells Fargo Securities\u000f //&\u000f \u001a\u001c\u001a )\u0011\u0016G \u0014\u0019\u0013 \u0015G\n\n&LU\u0011 \u0015\u0013\u0014\u0018 \u000f WKH 6HFRQG &LUFXLW UHD\u0d76UPHG WKDW WKH \u00b3OLEHUDO VSLULW\u00b4 RI WKH )HGHUDO 5XOH RI\n\n&LYLO 3URFHGXUH \u0014\u0018 HPERGLHV D \u00b3VWURQJ SUHIHUHQFH IRU UHVROYLQJ GLVSXWHV RQ WKH PHULWV\u0011\u00b4\n\n\n                                            \u0017\u0018\n\f     Case 1:23-cv-10982-ER        Document 73        Filed 09/30/25       Page 46 of 46\n\n\n\n\nSee id. at 190\u2013\u001c\u0014 TXRWLQJ Williams v. Citigroup Inc., 659 F.3d 208, 212-\u0014\u0016 \u0015G &LU\u0011\n\n2011)). Loreley WKXV FRXQVHOV VWURQJO\\ DJDLQVW WKH GLVPLVVDO RI FODLPV ZLWK SUHMXGLFH\n\nSULRU WR \u00b3WKH EHQH\u00bfW RI D UXOLQJ\u00b4 WKDW KLJKOLJKWV \u00b3WKH SUHFLVH GHIHFWV\u00b4 RI WKRVH FODLPV\u0011 Id.\n\nat 190\u201391. $FFRUGLQJO\\\u000f 3ODLQWL\u0d75V DUH JUDQWHG OHDYH WR DPHQG WKHLU FRPSODLQW.\nV.       CONCLUSION\n         )RU WKH IRUHJRLQJ UHDVRQV\u000f WKH ,QGLYLGXDO 'HIHQGDQW\u00b6V PRWLRQ WR GLVPLVV LV\n\nGRANTED, and 'HIHQGDQWV\u00b6 UHTXHVW IRU RUDO DUJXPHQW LV '(1,(' DV PRRW\u0011 3ODLQWL\u0d75V\n\nPD\\ \u00bfOH D 6HFRQG &RQVROLGDWHG $PHQGHG &RPSODLQW\u000f LI DW DOO\u000f E\\ 2FWREHU 21, 2025\u0011 ,I\n\nWKH\\ GR QRW GR VR\u000f WKH ,QGLYLGXDO 'HIHQGDQWV ZLOO EH WHUPLQDWHG. \u0e60H &OHUN RI WKH &RXUW LV\n\nUHVSHFWIXOO\\ GLUHFWHG WR WHUPLQDWH WKH PRWLRQV\u000f 'RFV\u0011 \u0017\u0016 DQG \u0017\u001a\u0011\n\n,W LV SO ORDERED.\n\n\n\nDated:    6HSWHPEHU \u0016\u0013\u000f \u0015\u0013\u0015\u0018\n          1HZ <RUN\u000f 1HZ <RUN\n\n                                                          EDGARDO RAMOS, U.S.D.J.\n\n\n\n\n                                             \u0017\u0019\n\f","ocr_status":2,"date_upload":"2025-12-13T05:23:04.775344-08:00","document_number":"73","attachment_number":null,"pacer_doc_id":"127038302220","is_available":true,"is_free_on_pacer":true,"is_sealed":null,"document_type":1,"description":"Memorandum & Opinion","acms_document_guid":""}],"date_created":"2025-09-30T14:12:50.413180-07:00","date_modified":"2026-10-20T06:53:42.035926-07:00","date_filed":"2025-09-30","time_filed":"15:56:43","entry_number":73,"recap_sequence_number":"2025-09-30.001","pacer_sequence_number":259,"description":"OPINION AND ORDER re: 43 MOTION to Dismiss Amended Class Action Complaint. filed by Elliot Jordan, Jose Neves, Stephanie Phair, 47 LETTER MOTION for Oral Argument addressed to Judge Edgardo Ramos from Jeff G. Hammel dated September 11, 2024. filed by Elliot Jordan, Jose Neves, Stephanie Phair.,For the foregoing reasons, the Individual Defendant's motion to dismiss is GRANTED, and Defendants' request for oral argument is DENIED as moot. Plaintiffs may file a Second Consolidated Amended Complaint, if at all, by October 21, 2025. If they do not do so, the Individual Defendants will be terminated. The Clerk of the Court is respectfully directed to terminate the motions, Docs. 43 and 47. It is SO ORDERED. (Amended Pleadings due by 10/21/2025.) (Signed by Judge Edgardo Ramos on 9/30/2025) (jca) (Entered: 09/30/2025)","tags":[]},{"resource_uri":"https://www.courtlistener.com/api/rest/v4/docket-entries/426910360/","id":426910360,"docket":"https://www.courtlistener.com/api/rest/v4/dockets/68102459/","recap_documents":[{"resource_uri":"https://www.courtlistener.com/api/rest/v4/recap-documents/441094496/","id":441094496,"tags":[],"absolute_url":"/docket/68102459/72/in-re-farfetch-limited-securities-litigation/","date_created":"2025-05-29T19:21:48.289996-07:00","date_modified":"2026-06-23T05:42:46.327784-07:00","sha1":"b66083fe010ab9323c6c1953a81ddb5c164aa8d2","page_count":12,"file_size":606854,"filepath_local":"recap/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.72.0.pdf","filepath_ia":"https://archive.org/download/gov.uscourts.nysd.612301/gov.uscourts.nysd.612301.72.0.pdf","ia_upload_failure_count":null,"thumbnail":null,"thumbnail_status":0,"plain_text":"     Case 1:23-cv-10982-ER   Document 72   Filed 05/29/25   Page 1 of 12\n\n\n\n\n                    UNITED STATES DISTRICT COURT\n                   SOUTHERN DISTRICT OF NEW YORK\n\n\n\nIN RE FARFETCH LIMITED SECURITIES\nLITIGATION                             Case No.: 1:23-cv-10982-ER-KHP [rel.\n                                       1:24-cv-00532-ER]\n\n\nTHIS DOCUMENT RELATES TO:\n\nALL ACTIONS\n\n\n\n\n          PLAINTIFFS\u2019 MEMORANDUM OF LAW IN REPLY AND\n FURTHER SUPPORT OF MOTION TO MODIFY THE PSLRA DISCOVERY STAY\n\f       Case 1:23-cv-10982-ER                       Document 72                 Filed 05/29/25               Page 2 of 12\n\n\n\n\n                                               TABLE OF CONTENTS\n\n                                                                                                                                  Page(s)\n\n\nI.     INTRODUCTION ............................................................................................................1\n\nII.    ARGUMENT ....................................................................................................................3\n\n       A.        The Liquidator Has Live \u201cClaims\u201d against Defendants. ......................................3\n\n       B.        Plaintiffs\u2019 \u201cParticularized\u201d Subpoena Will Not Shoulder Defendants or\n                 Surpique With \u201cUndue\u201d Burden. ..........................................................................4\n\n       C.        Defendants and Surpique Grossly Downplay the Risk of Evidentiary Loss and\n                 Spoliation. .............................................................................................................7\n\n       D.        Surpique\u2019s \u201cMeet and Confer\u201d Argument Lacks Credibility. ..............................8\n\n       E.        The PSLRA Does Not Prohibit Amendment of Pleadings but Instead Requires\n                 Plaintiffs to Plead \u201cAll Facts\u201d in Support of Claims. ...........................................8\n\nIII.   CONCLUSION .................................................................................................................9\n\n\n\n\n                                                                 -i-\n\f        Case 1:23-cv-10982-ER           Document 72         Filed 05/29/25      Page 3 of 12\n\n\n\n\nI.      INTRODUCTION\n\n        Plaintiffs satisfy the requirements for modifying the PSLRA\u2019s automatic discovery stay.\n\nThe discovery they seek is \u201cparticularized\u201d and necessary to preserve evidence and prevent \u201cundue\n\nprejudice.\u201d See In re Equifax Inc., No. 1:17-CV-3463-TWT, 2018 WL 3023278, at *1 (N.D. Ga.\n\nJune 15, 2018) (internal quotations omitted). Despite collectively submitting 35 pages of briefing\n\nin opposition to Plaintiffs\u2019 motion, Defendants and Surpique L.P. do not contest Plaintiffs\u2019 core\n\nargument: that the liquidator currently pursuing Defendants is acting in the interests of Farfetch\u2019s\n\nformer note holders to the detriment of Farfetch\u2019s former equity holders. This dynamic confirms\n\nthe potential prejudice Plaintiffs and the putative class will incur as former shareholders, especially\n\nas the liquidator\u2019s ongoing prosecution of claims wastes valuable insurance proceeds that would\n\notherwise be available to satisfy any judgment obtained by Plaintiffs. While the liquidator\n\nadvances its claims through discovery, Plaintiffs are being left in the dark and deprived of any\n\nopportunity to similarly develop their case and protect their potential recovery.\n\n        Instead addressing this primary aspect of the motion, Defendants and Surpique level\n\nbaseless accusations of Plaintiffs attempting to end-run the PSLRA\u2019s ban against frivolous actions.\n\nBut Plaintiffs\u2019 case is not even remotely comparable to the \u201cstrike suits\u201d that Congress had in mind\n\nwhen initially enacting the statute. In truth, Plaintiffs present a compelling claim of securities fraud\n\nthat stands only to grow in strength once discovery commences. Defendants know this, which is\n\nwhy they are doing everything they can to keep Farfetch\u2019s books and records hidden\u2014not just\n\nfrom Plaintiffs but all interested parties in the matter including the Cayman Islands liquidator\n\npursuing breach of duty claims on behalf of the company\u2019s former note holders.\n\n        Defendants and Surpique also rely on self-serving claims that no discovery has been lost\n\n(yet) and that the relief sought would trigger a near-insurmountable privilege review, all of which\n\ncollectively tips the scales in favor of denying the motion. These arguments are unsupported by\n\f       Case 1:23-cv-10982-ER          Document 72        Filed 05/29/25      Page 4 of 12\n\n\n\n\nthe factual record. Bankruptcy filings contain attorney declarations and emails showing that\n\nSurpique previously admitted it lost access to a virtual data room containing Farfetch\u2019s historical\n\nfinancial records and other critical materials. Surpique also recently faced compulsory liquidation\n\nproceedings due to an \u201cinadvertent\u201d statutory filing mistake. While Surpique might promise to\n\npreserve records going forward, that commitment is not worth much given that Surpique has\n\nalready demonstrated an inability to properly oversee important information and comply with basic\n\nstatutory filing requirements.\n\n       Surpique\u2019s \u201cburden\u201d argument also lacks credibility. The production currently contains\n\napproximately 100,000 documents (but is likely to be winnowed down substantially as\n\n\u201cnegotiations\u201d with the liquidator continue). Whatever Surpique ultimately agrees to produce to\n\nthe liquidator will be reviewed for privilege, thereby greatly reducing any amount of work that\n\nwould need to be completed for reproducing the materials to Plaintiffs. To the extent any second-\n\nlevel review would need to be done, ESI review platforms (e.g., Relativity) make quick work out\n\nof this. Surpique\u2019s counsel at Kirkland & Ellis are familiar with e-discovery tools and could surely\n\n\u201cfilter\u201d the production to exclude any communications to/from Farfetch\u2019s counsel. Document\n\nproductions in complex commercial litigations are routinely much, much larger than the\n\nproduction being contemplated here. Surpique and its lawyers cannot credibly claim \u201cundue\n\nburden.\u201d\n\n       Plaintiffs make the necessary showing to justify relief from the PSLRA\u2019s discovery stay.\n\nFor all the briefing Defendants and Surpique submit, none of their arguments warrants denying\n\nPlaintiffs\u2019 motion. Accordingly, Plaintiffs respectfully request that the Court grant the motion in\n\nits entirety and allow Plaintiffs to issue their proposed subpoena. See Dkt. No. 61-3.\n\n\n\n\n                                               -2-\n\f        Case 1:23-cv-10982-ER          Document 72        Filed 05/29/25      Page 5 of 12\n\n\n\n\nII.    ARGUMENT\n\n       A.      The Liquidator Has Live \u201cClaims\u201d against Defendants.\n\n       Defendants and Surpique make much of the fact that the liquidator has not filed any\n\n\u201cseparate proceeding\u201d (Dkt. No. 68 at 8) or \u201cidentified any potentially viable claims\u201d (Dkt. No. 67\n\nat 11) that could possibly compete with Plaintiffs for Farfetch\u2019s remaining assets (i.e., insurance\n\nproceeds). Their argument blithely disregards the practicalities of the liquidator\u2019s actions. Since\n\nthis debacle began, Wilmington Trust (as Trustee for $400 million of Farfetch\u2019s notes) petitioned\n\nthe Grand Court of the Cayman Islands to force Farfetch into liquidation proceedings. See Dkt.\n\nNo. 61-1 (Winding-Up Petition). That petition explained in chapter-and-verse the grounds for its\n\nbelief that Defendants committed various breaches of duty against Farfetch\u2019s note holders. This\n\nincluded Farfetch\u2019s abrupt financial collapse whereby the company reported over $800 million of\n\ncash and equivalents in August 2023 only to delay quarterly reporting in November 2023 and\n\nultimately announce bankruptcy in December 2023 (with the additional revelation that \u201cholders of\n\nits Class A and B ordinary shares and its convertible notes . . . will not recovery any of their\n\noutstanding investments\u201d). Id. at 8-9. Importantly, the petition accused Defendants of \u201cserious\n\ndeficiencies in the company\u2019s governance and management\u201d pertaining to Farfetch\u2019s sale to\n\nSurpique (and by extension Coupang Inc.) which allowed Defendants to write-off \u201cover US$1\n\nbillion of debt obligations\u201d and effectively secure releases for \u201cvalue-destructive steps . . . taken\n\nprior to the December 2023 Announcement [bankruptcy].\u201d Id. at 11-12.\n\n       Wilmington Trust\u2019s Winding-Up Petition has proven to be just the tip of the iceberg. In\n\naddition to the Cayman Islands, Wilmington Trust and the Joint Official Liquidators (the \u201cJOLs\u201d)\n\nhave been pursuing Defendants in Delaware as well as various courts in the United Kingdom. The\n\nbankruptcy filings make clear that Defendants and Surpique have uniformly stonewalled the JOLs\n\ndespite the authority they hold under Cayman Islands law. See, e.g., Dkt. No. 61-2 at 2 (\u00b61). This\n\n\n                                                -3-\n\f        Case 1:23-cv-10982-ER           Document 72         Filed 05/29/25       Page 6 of 12\n\n\n\n\napproach is what led to the subpoena proceedings giving rise to Plaintiffs\u2019 instant motion. Thus,\n\nwhile Defendants and Surpique argue there are no claims against which Plaintiffs are competing,\n\nthe true state of affairs shows that Plaintiffs have already fallen behind (and will fall further behind)\n\nclaimants in bankruptcy proceedings that will leave them \u201cunfairly disadvantaged.\u201d In re Delphi\n\nCorp., No. 05-MD-1725, 2007 WL 518626, at *8 (E.D. Mich. Feb. 15, 2007) (\u201cWithout discovery\n\nof documents already made available to federal authorities and to interested parties in the Delphi\n\nbankruptcy action, Plaintiffs would be unfairly disadvantaged in pursuing litigation and settlement\n\nstrategy.\u201d).\n\n        B.      Plaintiffs\u2019 \u201cParticularized\u201d Subpoena Will Not Shoulder Defendants or\n                Surpique With \u201cUndue\u201d Burden.\n\n        Plaintiffs\u2019 subpoena requests simply \u201c[a]ll non-privileged documents already produced or\n\nto be produced to Farfetch\u2019s Joint Official Liquidators.\u201d Dkt. No. 61-3. This is meant to capture\n\nwhatever non-privileged material Surpique ultimately produces to the JOLs in the course of the\n\npending subpoena proceedings. Consequently, the demand cannot be considered overly broad\n\nbecause by definition it is limited to whatever agreement the JOLs and Surpique strike in the course\n\nof their negotiations before U.S. Bankruptcy Court Judge Craig T. Goldblatt. See In re Bank of\n\nAm. Corp. Sec., Derivative, & Emp. Ret. Income Sec. Act (ERISA) Litig., No. 09 MDL 2058 (DC),\n\n2009 WL 4796169, at *3 (S.D.N.Y. Nov. 16, 2009) (request particularized and no additional\n\nburden on defendants where \u201cthey have already collected, reviewed, and organized the documents\n\nfor production in other proceedings, and the burden of making another copy for plaintiffs here will\n\nbe slight\u201d); In re Metro. Sec. Litig., No. CV-04-25-FVS, 2005 WL 940898, at *2-3 (E.D. Wash.\n\nMar. 31, 2005) (lifting PSLRA stay to allow plaintiffs to obtain documents \u201cprovided to the\n\nExaminer in Bankruptcy Court\u201d as \u201cdefendants will not be unduly burdened by producing the\n\ndocuments to Plaintiffs\u201d); see also In re FirstEnergy Corp. Sec. Litig., 229 F.R.D. 541, 545 (N.D.\n\n\n\n                                                  -4-\n\f        Case 1:23-cv-10982-ER          Document 72        Filed 05/29/25       Page 7 of 12\n\n\n\n\nOhio 2004) (defendants \u201ccannot, and indeed d[o] not, allege any burden from providing documents\n\nthat it has already reviewed and compiled.\u201d).\n\n       Surpique is represented by one of the country\u2019s preeminent firms, Kirkland & Ellis. The\n\nnotion that Plaintiffs\u2019 subpoena would stymie their attorneys and deplete their resources rings\n\nhollow. The current universe of potentially responsive material contains 100,000 documents. See\n\nDkt. No. 67 at 19. But even a review of that size is relatively small in today\u2019s world, especially for\n\nlarge corporate law firms experienced in complex commercial litigation. See, e.g., Synchronoss\n\nTechs., Inc. v. Dropbox Inc., No. 416CV00119HSGKAW, 2018 WL 4613151, at *7 (N.D. Cal.\n\nSept. 26, 2018) (\u201c100,000 documents may not be a particularly large or burdensome amount,\n\nespecially compared to the average quantity of discovery exchanged or produced in patent\n\nlitigation cases\u201d). Moreover, Surpique will be collecting, reviewing, and producing these\n\ndocuments regardless of Plaintiffs\u2019 motion because it was already ordered to do so by the U.S.\n\nBankruptcy Court in connection with the JOLs\u2019 subpoena and motion to compel.\n\n       Surpique claims (without any factual support) that producing documents to Plaintiffs will\n\nentail more than a \u201csimple, quick copy\u201d of the materials it sends to the JOLs. Dkt. No. 67 at 19-\n\n20. Notably, Surpique\u2019s attorney declaration does not explain how Plaintiffs\u2019 subpoena will trigger\n\nan additional \u201centirely new and highly nuanced privileged review\u201d; instead, counsel states only\n\nthat negotiations with the JOLs are \u201congoing\u201d and that the \u201cfinal search protocol remans pending\u201d\n\nwith the \u201ctimeline for production\u201d still uncertain. Dkt. No. 69 at \u00b6\u00b64-5. This does not suffice for\n\nproof of burden (let alone \u201cundue\u201d burden). See Exp.-Imp. Bank of Republic of China v.\n\nDemocratic Republic of Congo, No. 16-CV-4480 (JMF), 2022 WL 1452523, at *1 (S.D.N.Y. May\n\n9, 2022) (denying motion to quash where movant \u201cprovides no support for that assertion [undue\n\nburden], such as an affidavit or other evidence, and identifies no specific harm that would result\n\n\n\n\n                                                -5-\n\f        Case 1:23-cv-10982-ER            Document 72         Filed 05/29/25       Page 8 of 12\n\n\n\n\nfrom disclosure\u201d); Moll v. Telesector Res. Grp., Inc., No. 04-CV-0805 (SR), 2016 WL 6093995,\n\nat *2 (W.D.N.Y. Oct. 19, 2016) (\u201c[T]he burden of persuasion on a motion to quash a subpoena is\n\nborne by the movant.\u201d); Aristocrat Leisure Ltd. v. Deutsche Bank Tr. Co. Americas, 262 F.R.D.\n\n293, 300 (S.D.N.Y. 2009) (\u201c\u2018A party objecting to a subpoena on the ground of undue burden\n\ngenerally must present an affidavit or other evidentiary proof of the time or expense involved in\n\nresponding to the discovery request.\u2019\u201d) (quoting 9 James Wm. Moore et al., Moore\u2019s Federal\n\nPractice - Civil \u00b645.51[4] (3d ed. 2009)).\n\n        Any privilege review necessary could be negotiated by, for example, removing from\n\nproduction any communication sent by or between Farfetch\u2019s attorneys. This is easily done by\n\nfiltering the production using the ESI\u2019s metadata (specifically, removing from production any\n\ncommunication in which a Farfetch attorney was a sender or recipient). This is neither novel nor\n\nhard to do and certainly does not amount to \u201can entirely new and highly nuanced privilege review.\u201d\n\nDkt. No. 67 at 19-20. In fact, this sort of filtering is commonly done using ESI platforms such as\n\nRelativity and should pose no problem to Surpique\u2019s team of attorneys, especially because they\n\nwill already be conducting a privilege review in connection with its production to the JOLs. In\n\nsum, Surpique may encounter \u201csome\u201d burden, but it will be \u201cslight\u201d and certainly outweighed by\n\nthe prejudice Plaintiffs will incur absent the relief sought. See In re Equifax Inc. Sec. Litig., No.\n\n1:17-CV-3463-TWT, 2018 WL 3023278, at *5 (N.D. Ga. June 18, 2018) (modifying stay where\n\n\u201c[a]lthough Equifax will undoubtedly experience some burden in engaging in these planning\n\nactivities for the securities action, the Court finds that it is a slight burden when put into the context\n\nof this entire complex litigation due to the overlap that these preparations will have with those of\n\nthe MDL\u201d).\n\n\n\n\n                                                  -6-\n\f        Case 1:23-cv-10982-ER           Document 72         Filed 05/29/25      Page 9 of 12\n\n\n\n\n        C.      Defendants and Surpique Grossly Downplay the Risk of Evidentiary Loss\n                and Spoliation.\n\n        The JOLs, who are legally entitled to Farfetch\u2019s books and records, have spent the better\n\npart of the past year fighting to obtain documents from Defendants and Surpique. As the JOLs told\n\nthe U.S. Bankruptcy Court, \u201cDespite having effectively purchased Farfetch\u2019s entire business\n\nfollowing the Company\u2019s financial implosion in late 2023, Surpique has refused to produce any\n\ndocuments or communications to the Foreign Representatives. Instead, Surpique has at every turn\n\nattacked, blocked, and circumvented the JOLs\u2019 efforts to obtain core documents\u2014including\n\nFarfetch books and records and communications that are maintained on a Farfetch server that\n\nSurpique possesses.\u201d Dkt. No. 61-2 at 2 (\u00b61). Making matters worse is the reality that Surpique\n\nalready lost relevant information (according to the JOLs\u2019 counsel) and has proven itself incapable\n\nof timely filing paperwork necessary to avoid compulsory liquidation proceedings. The risk of loss\n\nor, even worse, spoliation is real.\n\n        Defendants and Surpique gloss over Plaintiffs\u2019 concern by offering to preserve relevant\n\ninformation for \u201cthree years.\u201d Dkt. No. 67 at 12; Dkt. No. 68 at 7. This amounts to little, if anything,\n\nconsidering what has already transpired. Defendants and Surpique have demonstrated a willful\n\nrefusal to comply with the simplest of requests from the JOLs, necessitating a subpoena along with\n\na motion to compel. See Dkt. No. 61-4 at 2-3 (\u201c . . . Absent Court intervention, the Foreign\n\nRepresentatives\u2019 investigation into Farfetch\u2019s financial collapse will continue to be materially\n\nimpeded by Surpique\u2019s refusal to produce historic documents and communications that are plainly\n\nresponsive to the subpoena and highly relevant to the Foreign Representatives\u2019 mandate.\u201d). On top\n\nof that, Surpique revealed to the JOLs that it lost access to a virtual data room containing Farfetch\u2019s\n\nfinancial records and therefore \u201cwould not produce documents from the data room.\u201d See Dkt. No.\n\n61-2 at 15 (\u00b643). And, to make matters even worse, Surpique was almost involuntarily pushed into\n\n\n\n                                                 -7-\n\f       Case 1:23-cv-10982-ER           Document 72        Filed 05/29/25     Page 10 of 12\n\n\n\n\nliquidation (\u201ccompulsory dissolution proceeding\u201d) due to \u201cinadvertently miss[ing] a statutory\n\nfiling deadline.\u201d Dkt. No. 69 at \u00b68.\n\n       Although Surpique claims to have resolved the \u201cstatutory filing\u201d issue and appears to have\n\nsomehow regained access to the financial records from the virtual data room (see id. at \u00b6\u00b69, 12),\n\nmistakes have already been made. These mistakes evidence a heightened risk of evidentiary\n\ndestruction. Plaintiffs cannot sit idle hoping that Defendants and Surpique will not err again or, if\n\nthey do, that the harm will not be irreparable. See In re Royal Ahold N.V. Sec. & Erisa Litig., 220\n\nF.R.D. 246, 251 (D. Md. 2004) (lifting stay where defendant\u2019s \u201cdivestitures create a reasonable\n\nconcern that documents may be lost despite Royal Ahold\u2019s best efforts to preserve them\u201d).\n\n       D.      Surpique\u2019s \u201cMeet and Confer\u201d Argument Lacks Credibility.\n\n       Surpique faults Plaintiffs for failing to meet-and-confer prior to filing the instant motion.\n\nDkt. No. 67 at 8-9. Given Surpique\u2019s documented history of uncooperativeness (with the JOLs),\n\nthere was realistically no scenario in which any meet-and-confer would have obviated the need to\n\nfile this motion. Had there been even a remote chance of any agreement, Surpique would have\n\ncontacted Plaintiffs after speaking with Defendants in advance of the pre-motion conference.\n\nIndeed, Defendants\u2019 counsel spoke with Surpique\u2019s counsel prior to the pre-motion conference, as\n\nconfirmed during the pre-motion conference. See Dkt. No. 64 at 10:3-10:15 (Hearing Transcript).\n\nConsequently, the notion that Surpique was caught off-guard or somehow disadvantaged by the\n\nchronology of events leading to this motion falls flat.\n\n       E.      The PSLRA Does Not Prohibit Amendment of Pleadings but Instead\n               Requires Plaintiffs to Plead \u201cAll Facts\u201d in Support of Claims.\n\n       Defendants cannot prevent Plaintiffs from incorporating information obtained from this\n\ndiscovery motion into future pleadings. See Dkt. No. 68 at 5. While they accuse Plaintiffs of\n\n\u201cbacktrack[ing]\u201d on the sufficiency of the operative pleading currently on file (id.), the PSLRA\n\n\n\n                                                -8-\n\f       Case 1:23-cv-10982-ER           Document 72        Filed 05/29/25      Page 11 of 12\n\n\n\n\nrequires plaintiffs to \u201cstate with particularity all facts\u201d supporting their allegations of fraud. 15\n\nU.S.C. \u00a778u-4(b)(1)(B) (emphasis added). Thus, if additional relevant information is obtained by\n\nway of the subpoena to Surpique, Plaintiffs are duty-bound to present that information to the Court.\n\n        \u201c[I]t is also not the case that, as Defendants argue, permitting the amendment would run\n\nafoul of the policies underlying the PSLRA by permitting information obtained in discovery to be\n\nused to amend the complaint, despite the PSLRA\u2019s discovery stay. There is not a categorical bar\n\non amending PSLRA complaints.\u201d Lickteig v. Cerberus Cap. Mgmt., L.P., No. 1:19-CV-5263-\n\nGHW, 2020 WL 7629876, at *6 (S.D.N.Y. Dec. 22, 2020); see also In re Pfizer Inc. Sec. Litig.,\n\nNo. 04-cv-9866 (LTS)(HBP), 2012 WL 983548, at *2-3 (S.D.N.Y. Mar. 22, 2012) (granting leave\n\nto amend PSLRA complaint using information obtained during discovery and noting that \u201c[c]ourts\n\nroutinely grant leave to amend when a plaintiff seeks to refine the complaint to reflect evidence\n\nobtained during discovery\u201d). In any event, if Defendants truly believed Plaintiffs\u2019 case was as\n\nmeritless as they claim, there would be no harm in allowing Plaintiffs to receive the documents\n\nthey seek as they would show an absence of any wrongdoing.\n\nIII.    CONCLUSION\n\n        Plaintiffs seek particularized discovery to avoid undue prejudice and preserve evidence.\n\nThat is all that is required to modify the PSLRA\u2019s discovery stay. See In re Equifax Inc. Sec. Litig.,\n\n2018 WL 3023278, at *1. Absent Plaintiffs\u2019 requested discovery, they risk being left holding the\n\nbag as the liquidator advances its claims through discovery. Defendants\u2019 and Surpique\u2019s contrary\n\narguments do not outweigh Plaintiffs\u2019 showing. Respectfully, the Court should grant Plaintiffs\u2019\n\nmotion in its entirety.\n\n\n\n                               [Signature blocks on following page]\n\n\n\n\n                                                -9-\n\f      Case 1:23-cv-10982-ER   Document 72     Filed 05/29/25    Page 12 of 12\n\n\n\n\nDated: May 29, 2025                Respectfully submitted,\n\n                                   LEVI & KORSINSKY, LLP\n\n                                   /s/ Adam M. Apton\n                                   Adam M. Apton\n                                   33 Whitehall Street, 17th Floor\n                                   New York, New York 10004\n                                   Telephone: (212) 363-7500\n                                   Facsimile: (212) 363-7171\n                                   aapton@zlk.com\n\n                                   Counsel for Co-Lead Plaintiff Fernando Sulichin\n                                   and Co-Lead Counsel for the Class\n\n                                      -and-\n\n                                   Lucas E. Gilmore (admitted pro hac vice)\n                                   Reed R. Kathrein (pro hac vice forthcoming)\n                                   HAGENS BERMAN SOBOL SHAPIRO LLP\n                                   715 Hearst Avenue, Suite 300\n                                   Berkeley, CA 94710\n                                   Telephone: (510) 725-3000\n                                   Facsimile: (510) 725-3001\n                                   lucasg@hbsslaw.com\n                                   reed@hbsslaw.com\n\n                                      -and-\n\n                                   Nathan Emmons (admitted pro hac vice)\n                                   HAGENS BERMAN SOBOL SHAPIRO LLP\n                                   455 North Cityfront Plaza Drive, Suite 2410\n                                   Chicago, IL 60611\n                                   Telephone: (708) 628-4957\n                                   Facsimile: (708) 628-4950\n                                   nathane@hbsslaw.com\n\n                                   Counsel for Co-Lead Plaintiff Yuanzhe Fu and\n                                   Co-Lead Counsel for the Class\n\n\n\n\n                                    - 10 -\n\f","ocr_status":2,"date_upload":"2026-06-22T23:27:21.559729-07:00","document_number":"72","attachment_number":null,"pacer_doc_id":"127037609732","is_available":true,"is_free_on_pacer":null,"is_sealed":null,"document_type":1,"description":"Reply Memorandum of Law in Support of Motion","acms_document_guid":""}],"date_created":"2025-05-29T19:21:48.273665-07:00","date_modified":"2026-10-20T06:53:42.017720-07:00","date_filed":"2025-05-29","time_filed":"20:48:13","entry_number":72,"recap_sequence_number":"2025-05-29.001","pacer_sequence_number":256,"description":"REPLY MEMORANDUM OF LAW in Support re: 59 MOTION for Discovery . . Document filed by Yuanzhe Fu, Fernando Sulichin..(Apton, Adam) (Entered: 05/29/2025)","tags":[]}],"entries_total":"https://www.courtlistener.com/api/rest/v4/docket-entries/?count=on&docket=68102459&page_size=40"}