You are on page 1of 55

CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO.

INDEX NO. UNASSIGNED


NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

6835(0( &2857 2) 7+( 67$7( 2) 1(: <25.


&2817< 2) 1(: <25.
 [

6($1 5$' -21$7+$1 %$'((1

3$8/ &$)$5'2 *$5(7+ -2+1621

-$0(6 .,0 $/(;$ 0$7((1
 ,QGH[ 1R
-867,1 0$7((1 -26+8$ 0(7=

5<$1 2*/( DQG 526(77( 3$0%$.,$1
 &203/$,17
3ODLQWLIIV 
 -85< 75,$/ '(0$1'('
 DJDLQVW  

,$&,17(5$&7,9(&253 DQG 
0$7&+ *5283 ,1& 

'HIHQGDQWV 

 [

3ODLQWLIIV 6HDQ 5DG -RQDWKDQ %DGHHQ 3DXO &DIDUGR *DUHWK -RKQVRQ -DPHV .LP $OH[D

0DWHHQ -XVWLQ 0DWHHQ -RVKXD 0HW] 5\DQ 2JOH DQG 5RVHWWH 3DPEDNLDQ FROOHFWLYHO\ WKH

³7LQGHU 3ODLQWLIIV´  E\ DQG WKURXJK WKHLU DWWRUQH\V *LEVRQ 'XQQ &UXWFKHU //3 KHUHE\ DOOHJH

DV IROORZV

,1752'8&7,21

 7LQGHU LV RQH RI WKH IDVWHVWJURZLQJ VWDUWXSV LQ WKH KLVWRU\ RI WKH WHFKQRORJ\

LQGXVWU\ 7KH 7LQGHU 3ODLQWLIIV DUH WKH IRXQGHUV FXUUHQW H[HFXWLYHV DQG HDUO\ HPSOR\HHV ZKR EXLOW

7LQGHU 7KH GHIHQGDQWV DUH 7LQGHU¶V SDUHQW FRPSDQLHV ,$&,QWHU$FWLYH&RUS ³,$&´ DQG LWV

VXEVLGLDU\ 0DWFK *URXS ,QF ³0DWFK´ DQG FROOHFWLYHO\ ³'HIHQGDQWV´  7KLV FDVH DULVHV IURP

'HIHQGDQWV¶ VFKHPH WR FKHDW WKH 7LQGHU 3ODLQWLIIV RXW RI ELOOLRQV RI GROODUV E\ YLRODWLQJ WKHLU

FRQWUDFWXDO ULJKWV DV RSWLRQKROGHUV

 )URP 7LQGHU¶V IRXQGLQJ LQ  WKH 7LQGHU 3ODLQWLIIV EXLOW WKH FRPSDQ\ LQWR D

JOREDO EUDQG WKDW WUDQVIRUPHG WKH ZD\ DQ HQWLUH JHQHUDWLRQ PDNHV QHZ URPDQWLF FRQQHFWLRQV /HG

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 1 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

E\ FRIRXQGHUV DQG 3ODLQWLIIV 6HDQ 5DG -XVWLQ 0DWHHQ DQG -RQDWKDQ %DGHHQ WKH 7LQGHU 3ODLQWLIIV

DQG RWKHU 7LQGHU RSWLRQKROGHUV ZRUNHG WLUHOHVVO\ WR GHYHORS VFDOH DQG PRQHWL]H WKH FRPSDQ\²

WDNLQJ LW IURP XQNQRZQ VWDUWXS WR FXOWXUDO LFRQ LQ OHVV WKDQ ILYH \HDUV DQG HDUQLQJ PRUH WKDQ 

PLOOLRQ LQ DQQXDO UHYHQXH E\ 

 $OWKRXJK RZQHG E\ ,$& DQG 0DWFK 7LQGHU DOZD\V KDV RSHUDWHG IURP /RV $QJHOHV

ZLWK LWV RZQ RIILFHV H[HFXWLYH WHDP DQG HPSOR\HH EDVH %HFDXVH RI WKH KDUG ZRUN DQG WDOHQW RI

WKH 7LQGHU 3ODLQWLIIV DQG WKHLU FROOHDJXHV 7LQGHU KDV H[SHULHQFHG PHWHRULF JOREDO JURZWK DQG KDV

EHFRPH RQH RI WKH KLJKHVWJURVVLQJ DSSV LQ WKH KLVWRU\ RI $SSOH¶V $SS 6WRUH /DVW ZHHN RQ

$XJXVW   0DWFK DQQRXQFHG LQ LWV ODWHVW HDUQLQJV FDOO WKDW 7LQGHU¶V H[SORVLYH JURZWK

FRQWLQXHV WR WKLV GD\ ZLWK  \HDURYHU\HDU JURZWK LQ VXEVFULEHUV DQG  \HDURYHU\HDU

JURZWK LQ UHYHQXHV $FFRUGLQJ WR 0DWFK 7LQGHU LV QRZ RQ SDFH WR H[FHHG  PLOOLRQ LQ 

UHYHQXH 7KLV VXFFHVV LV WKH SURGXFW RI WKH KDUG ZRUN RI WKH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU

RSWLRQKROGHUV VRPH RI ZKRP DUH VWLOO JXLGLQJ WKH FRPSDQ\ WR WKLV GD\

 7R FRPSHQVDWH WKH WHDP IRU FUHDWLQJ DQG QXUWXULQJ WKLV NLQG RI JURZWK DQG VXFFHVV

LQ  'HIHQGDQWV VLJQHG ZULWWHQ FRQWUDFWV DZDUGLQJ WKH 7LQGHU 3ODLQWLIIV²DQG PDQ\ RWKHU

FXUUHQW DQG IRUPHU 7LQGHU HPSOR\HHV²VWRFN RSWLRQV LQ 7LQGHU WKH ³$JUHHPHQWV´  ,Q WRWDO WKH

7LQGHU 3ODLQWLIIV RZQHG RSWLRQV UHSUHVHQWLQJ PRUH WKDQ  RI WKH YDOXH RI 7LQGHU

 7KH $JUHHPHQWV UHZDUGHG WKH 7LQGHU 3ODLQWLIIV IRU WKHLU KDUG ZRUN DQG VXFFHVV E\

JLYLQJ WKHP VNLQ LQ WKH JDPH²WKH DELOLW\ WR KROG DQG VHOO WKHLU RSWLRQV RYHU VKHYHUDO \HDUV DV WKH

YDOXH RI WKH FRPSDQ\ LQFUHDVHG )RXQGHUV DQG HDUO\ HPSOR\HHV RI VWDUWXS FRPSDQLHV RIWHQ UHFHLYH

HTXLW\ LQ WKH FRPSDQLHV WKH\ FUHDWH JLYLQJ WKHP DQ LQFHQWLYH WR EXLOG WKH FRPSDQ\¶V VXFFHVV ORQJ

LQWR WKH IXWXUH )RXQGHUV RI VXFFHVVIXO FRPSDQLHV RIWHQ KROG WKHLU VWDNHV IRU \HDUV DV WKHLU

FRPSDQLHV FRQWLQXH WR JURZ PRUH YDOXDEOH 7KH $JUHHPHQWV RIIHUHG WKH VDPH RSSRUWXQLW\ WR WKH

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 2 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

7LQGHU 3ODLQWLIIV ZKR UHFHLYHG 7LQGHU VWRFN RSWLRQV ZLWK WKH ULJKW WR KROG WKHP IRU \HDUV EHIRUH

H[HUFLVLQJ

 8QOLNH VWRFN RSWLRQV LQ D SXEOLF FRPSDQ\ ZKLFK DOORZ RSWLRQKROGHUV WR H[HUFLVH

DQG VHOO RQ WKH RSHQ PDUNHW WKH 7LQGHU 3ODLQWLIIV¶ VWRFN RSWLRQV FDOOHG IRU D GLIIHUHQW SODQ %HFDXVH

7LQGHU LV D SULYDWH FRPSDQ\ WKH FRQWUDFWV EHWZHHQ 'HIHQGDQWV DQG WKH 7LQGHU 3ODLQWLIIV VHW D

VFKHGXOH RI IRXU VSHFLILF IXWXUH GDWHV RQ ZKLFK WKH VWRFN RSWLRQV ZRXOG EH LQGHSHQGHQWO\ YDOXHG

DQG FRXOG EH H[HUFLVHG DQG VROG RQO\ WR 'HIHQGDQWV 7KRVH IRXU HYHQWV²UHIHUUHG WR DV

³6FKHGXOHG 3XWV´ XQGHU WKH $JUHHPHQWV²ZHUH UHTXLUHG WR RFFXU LQ RU SURPSWO\ DIWHU 0D\ 

1RYHPEHU  0D\  DQG 0D\ 

 'HIHQGDQWV KDG DQ LOOLFLW PRWLYH WR XQGHUYDOXH DQG HOLPLQDWH WKH 7LQGHU 3ODLQWLIIV¶

RSWLRQV 8QGHU WKH $JUHHPHQWV 'HIHQGDQWV ZHUH UHVSRQVLEOH IRU SD\LQJ WKH FRVW ZKHQ WKH 7LQGHU

3ODLQWLIIV FDVKHG LQ WKHLU RSWLRQV 7KH PRUH YDOXDEOH 7LQGHU EHFDPH WKH PRUH WKH 7LQGHU

3ODLQWLIIV¶ VWRFN RSWLRQV ZRXOG FRVW 'HIHQGDQWV $V 7LQGHU FRQWLQXHG WR EHFRPH PRUH YDOXDEOH

RYHU WLPH WKH ORQJWHUP FRVW RI WKRVH RSWLRQV ZRXOG VN\URFNHW %XW LI 'HIHQGDQWV FRXOG

XQGHUPLQH 7LQGHU¶V YDOXDWLRQ DW WKHLU ILUVW RSSRUWXQLW\ LQ  DQG WKHQ HOLPLQDWH WKH IXWXUH

6FKHGXOHG 3XWV LQ   DQG  WKH\ FRXOG VDYH WKHPVHOYHV ELOOLRQV RI GROODUV %HFDXVH

WKH 6FKHGXOHG 3XWV RFFXUUHG LQ SULYDWH²EH\RQG WKH YLHZ RI SXEOLF LQYHVWRUV DQG UHJXODWRUV²

'HIHQGDQWV FRXOG OLH DERXW 7LQGHU¶V ILQDQFLDO SURMHFWLRQV DQG XQGHUPLQH WKH YDOXDWLRQ RI 7LQGHU

ZLWKRXW KXUWLQJ WKHLU VWRFN SULFHV RU WKH SXEOLF SHUFHSWLRQ RI 7LQGHU¶V YDOXH

 7KURXJK D SDWWHUQ RI GHFHSWLRQ 'HIHQGDQWV H[HFXWHG WKLV VFKHPH WR V\VWHPDWLFDOO\

GHSULYH WKH 7LQGHU 3ODLQWLIIV RI WKHLU ULJKWV DV RSWLRQKROGHUV 'HIHQGDQWV ILUVW FRQGXFWHG D

GLVLQIRUPDWLRQ FDPSDLJQ²IORRGLQJ WKH SULYDWH YDOXDWLRQ RI 7LQGHU LQ 0D\  ZLWK IDOVH

PLVOHDGLQJ DQG LQFRPSOHWH ILQDQFLDO LQIRUPDWLRQ DQG SURMHFWLRQV %\ FUHDWLQJ D IDOVH SLFWXUH RI

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 3 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

7LQGHU¶V ILQDQFLDO FRQGLWLRQ DQG SURVSHFWV 'HIHQGDQWV DUULYHG DW D  ELOOLRQ YDOXDWLRQ EDVHG RQ

WKHLU ERJXV QXPEHUV 7KHQ KDYLQJ XQGHUPLQHG WKH ILUVW VFKHGXOHG YDOXDWLRQ RI 7LQGHU

'HIHQGDQWV PRYHG WR H[WLQJXLVK WKH 7LQGHU 3ODLQWLIIV¶ ULJKWV WR SDUWLFLSDWH LQ WKH FRPSDQ\¶V IXWXUH

XSVLGH 2QO\ KRXUV DIWHU ILQDOL]LQJ WKHLU  ELOOLRQ YDOXDWLRQ 'HIHQGDQWV PHUJHG 7LQGHU RXW RI

FRUSRUDWH H[LVWHQFH²ZLWKRXW WKH SULRU NQRZOHGJH RU FRQVHQW RI 7LQGHU¶V %RDUG RI 'LUHFWRUV RU

DQ\ RI WKH 7LQGHU 3ODLQWLIIV 7KURXJK WKLV SUHWH[WXDO PHUJHU 'HIHQGDQWV VWULSSHG DZD\ WKH 7LQGHU

3ODLQWLIIV¶ RSWLRQV LQ 7LQGHU FDQFHOOHG WKH WKUHH UHPDLQLQJ 6FKHGXOHG 3XWV LQ   DQG

 DQG SXUSRUWHG WR WHUPLQDWH WKH $JUHHPHQWV +DYLQJ JXDUDQWHHG WKH 7LQGHU 3ODLQWLIIV IRXU

LQGHSHQGHQW YDOXDWLRQV DQG RSSRUWXQLWLHV WR ULGH 7LQGHU¶V JURZWK \HDUV LQWR WKH IXWXUH 'HIHQGDQWV

SHUPDQHQWO\ GHSULYHG WKHP RI WKH PRQH\ WKH\ KDG HDUQHG

 8QGHU WKH $JUHHPHQWV 7LQGHU¶V PDQDJHPHQW QRW ,$& RU 0DWFK ZDV UHVSRQVLEOH

IRU SURYLGLQJ WKH ILQDQFLDO LQIRUPDWLRQ WKDW ZRXOG GHWHUPLQH 7LQGHU¶V YDOXDWLRQ 7KLV UHIOHFWHG D

FOHDU DQG FRPPRQVHQVH DOLJQPHQW RI LQWHUHVWV WKH YDOXDWLRQ ZRXOG GHFLGH KRZ PXFK PRQH\

7LQGHU RSWLRQKROGHUV ZRXOG HDUQ DQG HQDEOH WKH FRPSDQ\ WR UHFUXLW HPSOR\HHV DQG RXWVLGH

LQYHVWRUV 7LQGHU DV D FRPSDQ\ LWV RSWLRQKROGHUV DQG 5DG DQG WKH 7LQGHU 3ODLQWLIIV VKDUHG WKH

VDPH JRDO LQ WKH YDOXDWLRQ SURFHVV²WR HQVXUH WKDW 7LQGHU ZDV YDOXHG DFFXUDWHO\

 %\ WKH HQG RI  5DG KDG OHG 7LQGHU WR UHFRUG KHLJKWV 'XULQJ 5DG¶V WHQXUH DV

&(2 7LQGHU¶V UHYHQXH DQG SURILWDELOLW\ KDG JURZQ IDVWHU WKDQ SHUKDSV DQ\ RWKHU WHFK FRPSDQ\ LQ

KLVWRU\ 5DG DOVR KDG KLUHG VHYHUDO VNLOOHG DQG H[SHULHQFHG H[HFXWLYHV WR VWUHQJWKHQ 7LQGHU¶V

PDQDJHPHQW WHDP :LWK WKH  6FKHGXOHG 3XW DSSURDFKLQJ WKH FRQWUDFWXDO SODQ ZDV IRU 7LQGHU

&(2 5DG DQG WKH 7LQGHU 3ODLQWLIIV WR RYHUVHH WKH YDOXDWLRQ RQ EHKDOI RI 7LQGHU DQG HQIRUFH WKH

$JUHHPHQWV ZKLFK 5DG KDG QHJRWLDWHG WR SURWHFW DOO 7LQGHU RSWLRQKROGHUV 5DG DQG WKH 7LQGHU

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 4 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

PDQDJHPHQW WHDP QRW RQO\ KDG WKH FRQWUDFWXDO ULJKW WR RYHUVHH 7LQGHU¶V YDOXDWLRQ WKH\ ZHUH LQ

WKH EHVW SRVLWLRQ WR GHYHORS WKH ILQDQFLDO LQIRUPDWLRQ WKDW ZRXOG GHWHUPLQH WKH YDOXDWLRQ

 'HIHQGDQWV RQ WKH RWKHU KDQG ZHUH QRW FRQFHUQHG DERXW SURWHFWLQJ WKH EHVW

LQWHUHVWV RI 7LQGHU RU LWV RSWLRQKROGHUV GXULQJ WKH YDOXDWLRQ 'HIHQGDQWV ZHUH UHVSRQVLEOH IRU

SD\LQJ WKH ELOO ZKHQ WKH 7LQGHU 3ODLQWLIIV H[HUFLVHG WKHLU RSWLRQV $Q DFFXUDWH YDOXDWLRQ EDVHG RQ

WUXWKIXO LQIRUPDWLRQ SURYLGHG E\ &(2 5DG DQG 7LQGHU PDQDJHPHQW ZRXOG FRVW 'HIHQGDQWV

ELOOLRQV

 ,Q RUGHU WR JXW WKH $JUHHPHQWV DQG VHL]H FRQWURO RI WKH YDOXDWLRQ 'HIHQGDQWV

LQVWDOOHG WKHLU RZQ H[HFXWLYHV DW WKH KLJKHVW OHYHOV RI 7LQGHU PDQDJHPHQW ,Q 'HFHPEHU 

RQO\ PRQWKV EHIRUH WKH  6FKHGXOHG 3XW 'HIHQGDQWV UHPRYHG 5DG DQG GHVLJQDWHG *UHJ %ODWW

0DWFK¶V &KDLUPDQ DQG &(2 DV WKH ³LQWHULP´ &(2 RI 7LQGHU 'HIHQGDQWV DOVR LQVHUWHG 0DWFK¶V

&KLHI )LQDQFLDO 2IILFHU DQG &KLHI 6WUDWHJ\ 2IILFHU LQWR 7LQGHU¶V RSHUDWLRQV 7KH UHDVRQ IRU WKHVH

PDQDJHPHQW FKDQJHV ZDV FOHDU WR DOORZ 'HIHQGDQWV WR FRQWURO WKH YDOXDWLRQ RI 7LQGHU DQG GHSULYH

7LQGHU RSWLRQKROGHUV RI WKHLU ULJKW WR SDUWLFLSDWH LQ WKH FRPSDQ\¶V IXWXUH VXFFHVV

 %ODWW D ORQJWLPH ODFNH\ RI ,$&¶V FRQWUROOLQJ VKDUHKROGHU %DUU\ 'LOOHU KDG VHUYHG

LQ QXPHURXV H[HFXWLYH UROHV DW ,$& DQG 0DWFK WKURXJKRXW KLV FDUHHU +H KDG D ZHOOHDUQHG

UHSXWDWLRQ DV D QRWRULRXV EXOO\ ZLWK D YROFDQLF WHPSHU DQG D KDELW RI WKUHDWHQLQJ WR ILUH HPSOR\HHV

ZKR FRQWUDGLFWHG KLP $V ³LQWHULP´ &(2 RI 7LQGHU %ODWW ZRXOG FRQWURO 7LQGHU WKURXJKRXW WKH

YDOXDWLRQ SURFHVV²DOO WKH ZKLOH VWLOO DFWLQJ DV 0DWFK¶V &KDLUPDQ DQG &(2 7KLV ZDV D JODULQJ

FRQIOLFW RI LQWHUHVW $V 7LQGHU¶V ³LQWHULP´ &(2 %ODWW KDG D GXW\ WR FRPSO\ ZLWK WKH WHUPV RI WKH

$JUHHPHQWV DQG DGYDQFH WKH EHVW LQWHUHVWV RI 7LQGHU RSWLRQKROGHUV %XW DV 0DWFK¶V &KDLUPDQ DQG

&(2 %ODWW KDG D SURIHVVLRQDO DQG SHUVRQDO LQFHQWLYH WR XQGHUYDOXH 7LQGHU DQG FKHDW LWV

RSWLRQKROGHUV VR WKDW 'HIHQGDQWV FRXOG VDYH PRQH\ %ODWW ZDV OR\DO RQO\ WR 'HIHQGDQWV

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 5 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 +DYLQJ SXW %ODWW LQ FKDUJH RI FDUU\LQJ RXW WKHLU VFKHPH 'HIHQGDQWV QHHGHG KLP WR

UHPDLQ DW WKH KHOP RI 7LQGHU ORQJ HQRXJK WR ILQLVK WKH MRE %XW %ODWW ZDV FRPSURPLVHG GXULQJ

DQG DIWHU 7LQGHU¶V  KROLGD\ SDUW\ LQ /RV $QJHOHV %ODWW KDG JURSHG DQG VH[XDOO\ KDUDVVHG

3ODLQWLII 5RVHWWH 3DPEDNLDQ 7LQGHU¶V 9LFH 3UHVLGHQW RI 0DUNHWLQJ DQG &RPPXQLFDWLRQV ZLWK

FROOHDJXHV SUHVHQW %ODWW¶V ZRUNSODFH PLVFRQGXFW ZDV UHSRUWHG WR 'HIHQGDQWV %HFDXVH D FUHGLEOH

LQYHVWLJDWLRQ²OHW DORQH D ILULQJ LQ SXEOLF YLHZ²ZRXOG KDYH GHUDLOHG WKHLU VFKHPH 'HIHQGDQWV

ZKLWHZDVKHG %ODWW¶V PLVFRQGXFW 'HIHQGDQWV NHSW %ODWW LQ SODFH DV 7LQGHU¶V ³LQWHULP´ &(2 ORQJ

HQRXJK WR FRPSOHWH WKH SULYDWH YDOXDWLRQ DQG VHFUHW PHUJHU RI 7LQGHU %XW MXVW WZR ZHHNV DIWHU

WKHLU VFKHPH FRQFOXGHG 'HIHQGDQWV SXEOLFO\ DQQRXQFHG %ODWW¶V ³UHWLUHPHQW´²UHZDUGLQJ KLP

ZLWK D OXFUDWLYH JROGHQ SDUDFKXWH DQG D JORZLQJ IDUHZHOO PHVVDJH IURP 'LOOHU SUDLVLQJ %ODWW¶V

³LQWHJULW\´

 (PEHGGHG ZLWKLQ 7LQGHU¶V UDQNV %ODWW DQG RWKHU ,$& DQG 0DWFK H[HFXWLYHV

H[HFXWHG 'HIHQGDQWV¶ VFKHPH 7KH\ FUHDWHG IDOVH ILQDQFLDO SURMHFWLRQV LQIODWLQJ 7LQGHU¶V

H[SHQVHV DQG LQYHQWLQJ DQ DOWHUQDWH XQLYHUVH LQ ZKLFK 7LQGHU ZDV VWDJQDWLQJ WRZDUG IUHHIDOO 7KH\

GHOD\HG DQG FRQFHDOHG WKH LPSDFW QHZ SURGXFWV DQG IHDWXUHV VXFK DV VXEVFULSWLRQ VHUYLFH 7LQGHU

*ROG ZRXOG KDYH RQ WKH FRPSDQ\¶V SHUIRUPDQFH²HYHQ WKRXJK H[LVWLQJ GDWD DOUHDG\ FRQILUPHG

WKRVH SURGXFWV ZRXOG VXSHUFKDUJH 7LQGHU¶V SURILWV 7KH\ VXSSUHVVHG DQG OLHG DERXW WKH H[LVWHQFH

RI WUXH ILQDQFLDO IRUHFDVWV WKDW FRQWUDGLFWHG 'HIHQGDQWV¶ IDOVH SURMHFWLRQV $QG WKH\ EXOOLHG DQG

WKUHDWHQHG WR ILUH 7LQGHU H[HFXWLYHV²LQFOXGLQJ 3ODLQWLII -DPHV .LP 7LQGHU¶V FXUUHQW 9LFH

3UHVLGHQW RI )LQDQFH²WR VWRS WKHP IURP WHOOLQJ WKH WUXWK 2Q WKLV EDVLV 'HIHQGDQWV PDQXIDFWXUHG

D  ELOOLRQ YDOXDWLRQ RI 7LQGHU WKDW GUDPDWLFDOO\ XQGHUYDOXHG WKH FRPSDQ\

 'HIHQGDQWV ZHUH QRW FRQWHQW RQO\ WR PDQXIDFWXUH D VKDP YDOXDWLRQ RI 7LQGHU DQG

FKHDW WKH 7LQGHU 3ODLQWLIIV LQ WKH VKRUW WHUP 2Q -XO\   WKH YHU\ VDPH GD\ 'HIHQGDQWV

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 6 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

FRPSOHWHG WKH YDOXDWLRQ WKH\ PHUJHG 7LQGHU LQWR 0DWFK²VHFUHWO\ DQG ZLWKRXW DQ\ QRWLFH WR

7LQGHU RSWLRQKROGHUV 7KLV PHUJHU ZDV D SUHWH[W ,W FDXVHG QR PHDQLQJIXO FKDQJH LQ 7LQGHU¶V

RSHUDWLQJ VWUXFWXUH DVVHWV RU LQWHJUDWLRQ LQWR 'HIHQGDQWV¶ RWKHU EXVLQHVVHV ,W KDG QR OHJLWLPDWH

EXVLQHVV MXVWLILFDWLRQ RU UHDOZRUOG FRQVHTXHQFH 7KH PHUJHU ZDV RUFKHVWUDWHG WR GHSULYH WKH

7LQGHU 3ODLQWLIIV DQG RWKHU RSWLRQKROGHUV RI WKHLU ULJKW WR SDUWLFLSDWH LQ WKH IXWXUH XSVLGH RI 7LQGHU

 $FWLQJ XQGHU FRYHU RI WKH VHFUHW PHUJHU 'HIHQGDQWV LPPHGLDWHO\ FRQYHUWHG DOO

7LQGHU VWRFN RSWLRQV LQWR 0DWFK RSWLRQV DW WKH ORZEDOO  ELOOLRQ YDOXDWLRQ 7KLV PHDQW WKDW WKH

7LQGHU 3ODLQWLIIV UHFHLYHG IDU IHZHU 0DWFK RSWLRQV DQG D IDU OHVV YDOXDEOH VWRFN RSWLRQ WKDQ WKH\

KDG EHHQ SURPLVHG 'HIHQGDQWV WKHQ SXUSRUWHG WR WHUPLQDWH WKH $JUHHPHQWV DQG HOLPLQDWH WKH

IXWXUH VFKHGXOHG YDOXDWLRQV LQ   DQG  'HIHQGDQWV¶ VKDP PHUJHU DQG FRQYHUVLRQ

SHUPDQHQWO\ GHSULYHG WKH 7LQGHU 3ODLQWLIIV RI WKH ORQJWHUP YDOXH WKH\ KDG HDUQHG

 'HIHQGDQWV H[HFXWHG WKHLU GLVKRQHVW VFKHPH LQ SULYDWH EHKLQG FORVHG GRRUV DQG

RXWVLGH WKH YLHZ RI WKH SXEOLF PDUNHWV DQG UHJXODWRUV $W WKH VDPH WLPH DV SXEOLFO\ WUDGHG DQG

UHJXODWHG FRPSDQLHV 'HIHQGDQWV PDGH UHSUHVHQWDWLRQV WR LQYHVWRUV DQDO\VWV DQG UHJXODWRUV²RQ

6(&UHJXODWHG HDUQLQJV FDOOV DQG LQ SXEOLF ILOLQJV²DERXW 7LQGHU DQG WKHLU RWKHU EXVLQHVVHV $V

ZLWK DQ\ SXEOLF GLVFORVXUH DERXW ILQDQFLDO SHUIRUPDQFH IHGHUDO DQG VWDWH VHFXULWLHV ODZV UHTXLUH

WKDW HYHU\WKLQJ VDLG RQ DQ HDUQLQJV FDOO E\ D FRPSDQ\ DQG LWV H[HFXWLYHV PXVW EH WUXWKIXO DFFXUDWH

DQG QRW PLVOHDGLQJ

 %HFDXVH WKH YDOXDWLRQ DQG PHUJHU RI 7LQGHU RFFXUUHG LQ SULYDWH 'HIHQGDQWV FRXOG

HQULFK WKHPVHOYHV E\ WDONLQJ RXW RI ERWK VLGHV RI WKHLU PRXWKV ,Q VHFUHW 'HIHQGDQWV SHGGOHG IDOVH

SURMHFWLRQV DQG RUFKHVWUDWHG D VKDP PHUJHU WR FKHDW WKH 7LQGHU 3ODLQWLIIV RXW RI ELOOLRQV RI

GROODUV $V D SULYDWH FRPSDQ\ 7LQGHU GLG QRW LWVHOI SXEOLFO\ UHSRUW ILQDQFLDO

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 7 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

LQIRUPDWLRQ 'HIHQGDQWV FUHDWHG D  ELOOLRQ YDOXDWLRQ RI 7LQGHU EDVHG RQ ERJXV GRRPDQGJORRP

QXPEHUV WKH\ PDQXIDFWXUHG IRU D SULYDWH SURFHVV

 0HDQZKLOH LQ SXEOLF 'HIHQGDQWV FRXOG ERRVW WKHLU VWRFN SULFHV E\ H[WROOLQJ

7LQGHU¶V H[SORVLYH JURZWK DQG ORQJWHUP SURILWDELOLW\ 6LQFH WKH YDOXDWLRQ DQG PHUJHU

'HIHQGDQWV KDYH PDGH QXPHURXV SXEOLF VWDWHPHQWV DERXW 7LQGHU²PDQ\ GXULQJ 6(&UHJXODWHG

HDUQLQJV FDOOV²WKDW FHOHEUDWH 7LQGHU¶V ILQDQFLDO SHUIRUPDQFH DQG GLUHFWO\ FRQWUDGLFW WKHLU SULYDWH

PLVUHSUHVHQWDWLRQV GXULQJ WKH YDOXDWLRQ

 )RU H[DPSOH WKURXJKRXW WKH SULYDWH YDOXDWLRQ 'HIHQGDQWV WULYLDOL]HG 7LQGHU

*ROG¶V DQWLFLSDWHG LPSDFW SURYLGLQJ GHSUHVVHG SURMHFWLRQV DERXW DQ H[SORVLYH QHZ VXEVFULSWLRQ

SURGXFW WKDW 'HIHQGDQWV NQHZ ZRXOG FDWDO\]H 7LQGHU¶V SURILWV %XW GXULQJ 0DWFK¶V $XJXVW 

HDUQLQJV FDOO²RQO\ ZHHNV DIWHU WKH YDOXDWLRQ FRQFOXGHG²%ODWW WROG LQYHVWRUV WKDW 0DWFK H[SHFWHG

7LQGHU *ROG WR EH ³WKH VLQJOH ELJJHVW GULYHU RI LQFUHPHQWDO PRQHWL]DWLRQ WKDW >7LQGHU KDG@

ODXQFKHG VLQFH WKH EHJLQQLQJ´ 7KH PDUNHW UHFRJQL]HG WKH WUXH YDOXH RI 7LQGHU *ROG LPPHGLDWHO\

DIWHU LW ODXQFKHG LQ ODWH $XJXVW ²ZLWKLQ RQH ZHHN 0DWFK¶V PDUNHW FDSLWDOL]DWLRQ LQFUHDVHG

E\ DSSUR[LPDWHO\ RQH ELOOLRQ GROODUV RU PRUH WKDQ 

 'HIHQGDQWV DOVR FODLPHG GXULQJ WKH SULYDWH YDOXDWLRQ LQ  WKDW 7LQGHU¶V UHYHQXH

JURZWK UDWH ZRXOG FROODSVH E\ PRUH WKDQ  RYHU WKH QH[W ILYH \HDUV %XW GXULQJ 0DWFK¶V $XJXVW

 HDUQLQJV FDOO²DJDLQ RQO\ ZHHNV DIWHU 'HIHQGDQWV ILQDOL]HG WKHLU YDOXDWLRQ²'HIHQGDQWV

VDQJ WKH RSSRVLWH WXQH WKH\ DFNQRZOHGJHG WKDW 7LQGHU ZRXOG VHH ³PHDQLQJIXO H[SDQVLRQ DQG   

UHDFFHOHUDWLRQ´ RI LWV JURZWK UDWH DQG FRQWLQXH WR EH ³WKH PDMRU GULYHU RI 0DWFK *URXS UHYHQXH

JURZWK IRU FHUWDLQO\ VHYHUDO \HDUV´

 'HIHQGDQWV DUH QRZ WHOOLQJ WKH WUXWK DERXW 7LQGHU SXEOLFO\ IRU WKH VDPH UHDVRQ WKH\

OLHG DERXW 7LQGHU SULYDWHO\²WR HQULFK WKHPVHOYHV %XW 'HIHQGDQWV KDYH QHYHU GLVFORVHG WR

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 8 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

LQYHVWRUV RU WR UHJXODWRUV WKH WUXH PXOWLELOOLRQGROODU SULFH WDJ RI DOO 7LQGHU RSWLRQV RU WKDW

'HIHQGDQWV IDFHG ELOOLRQV RI GROODUV LQ OLDELOLW\ UHVXOWLQJ IURP WKHLU VFKHPH

 7LQGHU¶V ILQDQFLDO SHUIRUPDQFH VLQFH -XO\  IXUWKHU FRQILUPV ZLWK REMHFWLYH

SUHFLVLRQ WKH LOOHJLWLPDF\ RI 'HIHQGDQWV¶ IDOVH ILQDQFLDO SURMHFWLRQV DQG UHVXOWLQJ ORZEDOO

YDOXDWLRQ 'XULQJ WKH YDOXDWLRQ LQ  'HIHQGDQWV VDLG WKDW 7LQGHU ZRXOG HDUQ  PLOOLRQ LQ

 UHYHQXH /DVW ZHHN LQ LWV $XJXVW   HDUQLQJV FDOO 0DWFK DQQRXQFHG WKDW ³7LQGHU LV RQ

SDFH WR H[FHHG  PLOOLRQ LQ UHYHQXH LQ ´²PRUH WKDQ  KLJKHU WKDQ 'HIHQGDQWV

SURMHFWHG IRU  UHYHQXH DQG PRUH WKDQ  KLJKHU WKDQ 'HIHQGDQWV SURMHFWHG HYHQ IRU 

UHYHQXH 'HIHQGDQWV DOVR GLVFORVHG WKDW 7LQGHU *ROG¶V VXFFHVV KDG ³UHVHW´ 7LQGHU¶V PHWULFV

JHQHUDWLQJ ³YHU\ VXVWDLQHG OLIWV´ LQ NH\ 7LQGHU SHUIRUPDQFH PHDVXUHV 'HIHQGDQWV WROG LQYHVWRUV

WKH\ ZHUH ³FRQILGHQW´ WKDW 7LQGHU¶V SURILW PDUJLQV DOUHDG\ ³VWURQJ´ ZLOO ³FRQWLQXH WR H[SDQG´

PDNLQJ WKH FRPSDQ\ HYHQ PRUH SURILWDEOH IRU \HDUV LQ WKH IXWXUH

 'HIHQGDQWV¶ DGPLVVLRQV RI 7LQGHU¶V FRQWLQXHG H[SORVLYH JURZWK DQG ILQDQFLDO

VXFFHVV FRQILUP WKDW WKHLU YDOXDWLRQ SURMHFWLRQV LQ  ZHUH D IDUFH +DYLQJ VXFFHVVIXOO\

H[HFXWHG WKHLU VFKHPH 'HIHQGDQWV DUH QRZ WHOOLQJ WKH WUXWK DERXW 7LQGHU¶V ILQDQFLDO SHUIRUPDQFH

DQG SURVSHFWV²H[SRVLQJ WKH OLHV DW WKH KHDUW RI WKHLU ILQDQFLDO PDQLSXODWLRQV LQ 

 7KH 7LQGHU 3ODLQWLIIV IRXQGHG DQG EXLOW 7LQGHU LQWR WKH FRPSDQ\ LW LV WRGD\ 7KH\

LQFOXGH VHYHUDO RI 7LQGHU¶V FXUUHQW VHQLRU H[HFXWLYHV LWV &KLHI 6WUDWHJ\ 2IILFHU 9LFH 3UHVLGHQW RI

)LQDQFH DQG 9LFH 3UHVLGHQW RI 0DUNHWLQJ DQG &RPPXQLFDWLRQV 6WDQGLQJ DORQJVLGH WKH

FRPSDQ\¶V IRXQGHUV DQG HDUO\ HPSOR\HHV WKRVH VHQLRU PHPEHUV RI 7LQGHU¶V FXUUHQW OHDGHUVKLS DUH

QRZ VSHDNLQJ RXW DJDLQVW ,$& DQG 0DWFK¶V V\VWHPDWLF GHSULYDWLRQ RI WKHLU ULJKWV²D VFKHPH WKDW

KDV KDUPHG QRW RQO\ WKH 7LQGHU 3ODLQWLIIV EXW VFRUHV RI RWKHU FXUUHQW DQG IRUPHU 7LQGHU HPSOR\HHV

ZKR DOVR KHOG 7LQGHU RSWLRQV

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 9 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 'HIHQGDQWV FKHDWHG WKH 7LQGHU 3ODLQWLIIV RXW RI WKHLU FRQWUDFWXDO ULJKW WR SDUWLFLSDWH

LQ WKH IXWXUH JURZWK RI WKH FRPSDQ\ WKH\ EXLOW 'HIHQGDQWV ZLOOIXOO\ EUHDFKHG WKHLU FRQWUDFWV DQG

WKHLU OHJDO GXWLHV SRFNHWLQJ ELOOLRQV RI GROODUV HDUQHG E\ WKH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU

RSWLRQKROGHUV 7KH 7LQGHU 3ODLQWLIIV EULQJ WKLV DFWLRQ WR ULJKW WKDW ZURQJ DQG WR UHFODLP WKH GLJQLW\

FUHGLW DQG PRQH\ 'HIHQGDQWV VWROH IURP WKHP

7+( 3$57,(6

 6HDQ 5DG ³5DG´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV &DOLIRUQLD 5DG LV

D FRIRXQGHU RI 7LQGHU $W YDULRXV WLPHV IURP DSSUR[LPDWHO\ )HEUXDU\  WR 6HSWHPEHU 

5DG VHUYHG DV WKH &(2 RI 7LQGHU

 -RQDWKDQ %DGHHQ ³%DGHHQ´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV

&DOLIRUQLD %DGHHQ LV D FRIRXQGHU RI 7LQGHU %DGHHQ KDV VHUYHG LQ PXOWLSOH UROHV DW 7LQGHU VLQFH

 LQFOXGLQJ WRGD\ DV &KLHI 6WUDWHJ\ 2IILFHU +H DOVR ZDV WKH IRUPHU 6HQLRU 9LFH 3UHVLGHQW RI

3URGXFW DQG WKH IRUPHU 9LFH 3UHVLGHQW RI (QJLQHHULQJ

 3DXO &DIDUGR ³&DIDUGR´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV &DOLIRUQLD

&DIDUGR VHUYHG DV DQ HQJLQHHU DW 7LQGHU IURP $SULO  WR -XQH  LQFOXGLQJ DV 'LUHFWRU RI

(QJLQHHULQJ IURP -DQXDU\  WR -XQH 

 *DUHWK -RKQVRQ ³-RKQVRQ´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV

&DOLIRUQLD -RKQVRQ VHUYHG DV /HDG 'HVLJQHU DW 7LQGHU IURP )HEUXDU\  WR -XQH 

 -DPHV .LP ³.LP´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV &DOLIRUQLD .LP

KDV VHUYHG DV 7LQGHU¶V 9LFH 3UHVLGHQW RI )LQDQFH VLQFH )HEUXDU\ 

 $OH[D 0DWHHQ ³$OH[D 0DWHHQ´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV

&DOLIRUQLD $OH[D 0DWHHQ MRLQHG 7LQGHU LQ 0D\  DQG VHUYHG LQ D YDULHW\ RI UROHV XQWLO 0D\

 LQFOXGLQJ DV 7LQGHU¶V +HDG RI 86 ([SDQVLRQ

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 10 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 -XVWLQ 0DWHHQ ³0DWHHQ´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /DV 9HJDV 1HYDGD

0DWHHQ LV D FRIRXQGHU RI 7LQGHU )URP DSSUR[LPDWHO\ )HEUXDU\  WR 6HSWHPEHU  0DWHHQ

VHUYHG DV WKH &KLHI 0DUNHWLQJ 2IILFHU RI 7LQGHU )URP 6HSWHPEHU  XQWLO  KH VHUYHG DV

DQ DGYLVRU WR 7LQGHU

 -RVKXD 0HW] ³0HW]´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV &DOLIRUQLD

0HW] MRLQHG 7LQGHU LQ -XQH  DV 7LQGHU¶V 0DUNHWLQJ 0DQDJHU DQG KDV VHUYHG DV 'LUHFWRU RI

0DUNHWLQJ VLQFH -XO\ 

 5\DQ 2JOH ³2JOH´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV &DOLIRUQLD 2JOH

VHUYHG DV 7LQGHU¶V &KLHI 7HFKQRORJ\ 2IILFHU IURP $XJXVW  WR -XQH 

 5RVHWWH 3DPEDNLDQ ³3DPEDNLDQ´ LV DQ LQGLYLGXDO ZKR UHVLGHV LQ /RV $QJHOHV

&DOLIRUQLD 3DPEDNLDQ EHJDQ OHDGLQJ 7LQGHU¶V FRPPXQLFDWLRQV HIIRUWV LQ  3DPEDNLDQ MRLQHG

7LQGHU IXOOWLPH LQ 0DUFK  DQG WRGD\ VHUYHV DV 7LQGHU¶V 9LFH 3UHVLGHQW RI 0DUNHWLQJ DQG

&RPPXQLFDWLRQV

 $V RI -XO\  DOO RI WKH 7LQGHU 3ODLQWLIIV RZQHG DQG ZHUH SHUPLWWHG WR H[HUFLVH

7LQGHU VWRFN RSWLRQV

 ,$&,QWHU$FWLYH&RUS ³,$&´ LV D 'HODZDUH FRUSRUDWLRQ ZLWK LWV SULQFLSDO SODFH RI

EXVLQHVV LQ 1HZ <RUN 1HZ <RUN ,$& LV D PHGLD DQG ,QWHUQHW FRQJORPHUDWH FRQWUROOHG E\ LWV

&KDLUPDQ DQG 6HQLRU ([HFXWLYH %DUU\ 'LOOHU 2Q LQIRUPDWLRQ DQG EHOLHI ,$& RZQV RU FRQWUROV

RYHU  EUDQGV LQFOXGLQJ 'LFWLRQDU\FRP 7KH 'DLO\ %HDVW 9LPHR ,QYHVWRSHGLD DQG $VNFRP

,$& DOVR KDV VSXQ RII D QXPEHU RI LWV IRUPHU DVVHWV LQWR VHSDUDWH FRUSRUDWH HQWLWLHV LQFOXGLQJ

0DWFK *URXS ,QF

 0DWFK *URXS ,QF ³0DWFK´ DQG WRJHWKHU ZLWK ,$& ³'HIHQGDQWV´ LV D 'HODZDUH

FRUSRUDWLRQ ZLWK LWV SULQFLSDO SODFH RI EXVLQHVV LQ 'DOODV 7H[DV 2Q LQIRUPDWLRQ DQG EHOLHI 0DWFK

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 11 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

RZQV VHYHUDO RQOLQH GDWLQJ EUDQGV LQFOXGLQJ 0DWFKFRP DQG 2N&XSLG %HIRUH 0DWFK EHFDPH D

SXEOLF FRPSDQ\ RQ 1RYHPEHU   LW ZDV D ZKROO\ RZQHG VXEVLGLDU\ RI ,$& 6LQFH

1RYHPEHU   ,$& KDV RZQHG D PDMRULW\ RI 0DWFK¶V RXWVWDQGLQJ VKDUHV

 7LQGHU ,QF ³7LQGHU´ RU WKH ³&RPSDQ\´ ZDV D 'HODZDUH FRUSRUDWLRQ ZLWK LWV

SULQFLSDO SODFH RI EXVLQHVV LQ /RV $QJHOHV &DOLIRUQLD )URP 0DUFK   WR -XO\  

7LQGHU ZDV D 'HODZDUH FRUSRUDWLRQ RZQHG E\ 0DWFK 2Q -XO\   0DWFK PHUJHG 7LQGHU

LQWR LWVHOI 2Q LQIRUPDWLRQ DQG EHOLHI 7LQGHU FXUUHQWO\ RSHUDWHV LQ /RV $QJHOHV &DOLIRUQLD DV D

EUDQG ZLWKLQ 0DWFK 2Q LQIRUPDWLRQ DQG EHOLHI XSRQ WKH PHUJHU 0DWFK DVVXPHG DOO RI 7LQGHU¶V

OLDELOLWLHV DQG REOLJDWLRQV LQFOXGLQJ WKRVH DULVLQJ IURP WKH DJUHHPHQWV WKDW XQGHUOLH WKH 7LQGHU

3ODLQWLIIV¶ FODLPV LQ WKLV DFWLRQ

-85,6',&7,21 $1' 9(18(

 7KLV &RXUW KDV VXEMHFW PDWWHU MXULVGLFWLRQ RI WKLV GLVSXWH SXUVXDQW WR $UWLFOH 9,

6HFWLRQ  RI WKH 1HZ <RUN &RQVWLWXWLRQ

 7KLV &RXUW KDV SHUVRQDO MXULVGLFWLRQ RYHU ,$& SXUVXDQW WR 1< &3/5 † 

EHFDXVH ,$&¶V SULQFLSDO SODFH RI EXVLQHVV LV 1HZ <RUN

 7KLV &RXUW KDV SHUVRQDO MXULVGLFWLRQ RYHU 0DWFK SXUVXDQW WR 1< &3/5 †† 

 D   DQG  D  

D 0DWFK LV VXEMHFW WR JHQHUDO MXULVGLFWLRQ SXUVXDQW WR 1< &3/5 † 

EHFDXVH 0DWFK LV UHJLVWHUHG WR GR EXVLQHVV LQ 1HZ <RUN ZLWK WKH 1HZ <RUN

'HSDUWPHQW RI 6WDWH DQG KDV FRQVHQWHG WR SHUVRQDO MXULVGLFWLRQ LQ 1HZ

<RUN

E 0DWFK LV VXEMHFW WR JHQHUDO MXULVGLFWLRQ SXUVXDQW WR 1< &3/5 † 

EDVHG RQ LWV VWDWXV DV D VXEVLGLDU\ RI ,$& 2Q LQIRUPDWLRQ DQG EHOLHI 0DWFK

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 12 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

RSHUDWHV DV D PHUH GHSDUWPHQW RI ,$& ZKLFK H[HUWV SHUYDVLYH FRQWURO RYHU

0DWFK¶V RSHUDWLRQV LQFOXGLQJ WKH VHOHFWLRQ DQG DVVLJQPHQW RI 0DWFK¶V

SHUVRQQHO DQG 0DWFK¶V PDUNHWLQJ DQG RSHUDWLRQDO SROLFLHV 2Q LQIRUPDWLRQ

DQG EHOLHI 0DWFK VKDUHV FRUSRUDWH UHVRXUFHV ZLWK ,$& LQ 1HZ <RUN 2Q

LQIRUPDWLRQ DQG EHOLHI ,$& DOVR DFWHG DV 0DWFK¶V DJHQW LQ 1HZ <RUN WR

IXUWKHU 0DWFK¶V LQWHUHVWV LQ QHJRWLDWLQJ DQG HQIRUFLQJ DJUHHPHQWV WKDW DUH

UHOHYDQW WR WKLV GLVSXWH

F 0DWFK LV VXEMHFW WR VSHFLILF MXULVGLFWLRQ SXUVXDQW WR 1< &3/5

†  D   2Q LQIRUPDWLRQ DQG EHOLHI 0DWFK DQG 7LQGHU EHIRUH LW ZDV

PHUJHG LQWR 0DWFK QHJRWLDWHG LQ 1HZ <RUN WKH DJUHHPHQWV WKDW XQGHUOLH

WKH 7LQGHU 3ODLQWLIIV¶ FODLPV LQ WKLV DFWLRQ

G 0DWFK LV VXEMHFW WR VSHFLILF MXULVGLFWLRQ SXUVXDQW WR 1< &3/5

†  D   2Q LQIRUPDWLRQ DQG EHOLHI 0DWFK DQG 7LQGHU EHIRUH LW ZDV

PHUJHG LQWR 0DWFK FRPPLWWHG WRUWLRXV DFWV LQ 1HZ <RUN WKDW JLYH ULVH WR

FHUWDLQ RI WKH 7LQGHU 3ODLQWLIIV¶ FODLPV LQ WKLV DFWLRQ

L 2Q LQIRUPDWLRQ DQG EHOLHI *UHJ %ODWW 0DWFK¶V &KDLUPDQ DQG &(2

DQG 7LQGHU¶V ³LQWHULP´ &(2 GXULQJ WKH HYHQWV JLYLQJ ULVH WR WKLV

ODZVXLW SULQFLSDOO\ OLYHG LQ 1HZ <RUN ZRUNHG RXW RI WKH ,$& RIILFH

LQ 1HZ <RUN DQG ZDV SK\VLFDOO\ ORFDWHG LQ 1HZ <RUN GXULQJ WKH

SHULRG LQ ZKLFK DV DQ DJHQW RI 0DWFK DQG ,$& KH KDG

FRPPXQLFDWLRQV DQG PDGH GHFLVLRQV WKDW LQIOLFWHG KDUP RQ WKH

7LQGHU 3ODLQWLIIV $PRQJ RWKHU WKLQJV ZKLOH ZRUNLQJ DQG OLYLQJ LQ

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 13 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

1HZ <RUN %ODWW PDGH GHFLVLRQV DQG SDUWLFLSDWHG LQ FDOOV DQG HPDLO

H[FKDQJHV ZLWK UHVSHFW WR WKH HYHQWV JLYLQJ ULVH WR WKLV ODZVXLW

LL 2Q LQIRUPDWLRQ DQG EHOLHI *DU\ 6ZLGOHU 0DWFK¶V &KLHI )LQDQFLDO

2IILFHU GXULQJ WKH HYHQWV JLYLQJ ULVH WR WKLV ODZVXLW SULQFLSDOO\ OLYHG

LQ 1HZ <RUN ZRUNHG RXW RI WKH ,$& RIILFH LQ 1HZ <RUN DQG ZDV

SK\VLFDOO\ ORFDWHG LQ 1HZ <RUN GXULQJ WKH SHULRG LQ ZKLFK DV DQ

DJHQW RI 0DWFK DQG ,$& KH KDG FRPPXQLFDWLRQV DQG PDGH

GHFLVLRQV WKDW LQIOLFWHG KDUP RQ WKH 7LQGHU 3ODLQWLIIV $PRQJ RWKHU

WKLQJV ZKLOH ZRUNLQJ DQG OLYLQJ LQ 1HZ <RUN 6ZLGOHU PDGH

GHFLVLRQV DQG SDUWLFLSDWHG LQ FDOOV DQG HPDLO H[FKDQJHV ZLWK UHVSHFW

WR WKH HYHQWV JLYLQJ ULVH WR WKLV ODZVXLW

 9HQXH LV SURSHU LQ 1HZ <RUN &RXQW\ SXUVXDQW WR 1< &3/5 †  D DQG F

EHFDXVH ,$&¶V SULQFLSDO SODFH RI EXVLQHVV LV 1HZ <RUN &RXQW\ DQG EHFDXVH ,$& LV UHJLVWHUHG WR

GR EXVLQHVV LQ 1HZ <RUN &RXQW\ ZLWK WKH 1HZ <RUN 'HSDUWPHQW RI 6WDWH

)$&78$/ %$&.*5281'

, 5DG ,QYHQWV 7LQGHU

 ,Q ODWH  6HDQ 5DG²DOUHDG\ DQ DFFRPSOLVKHG HQWUHSUHQHXU ZLWK WZR VXFFHVVIXO

VWDUWXSV XQGHU KLV EHOW²LQYHQWHG WKH FRQFHSW IRU 7LQGHU D ORFDWLRQEDVHG VRFLDO QHWZRUNLQJ DSS

WKDW ZRXOG FRQQHFW PXWXDOO\ LQWHUHVWHG XVHUV

 5DG¶V LQVSLUDWLRQ IRU WKLV DSS FDPH IURP KLV RZQ OLIH H[SHULHQFH $V D VK\ WZHQW\

VRPHWKLQJ 5DG VWUXJJOHG WR PDNH LQLWLDO FRQQHFWLRQV ZLWK ZRPHQ +H UHDOL]HG WKDW WKH ELJJHVW

REVWDFOH KH DQG PLOOLRQV RI RWKHUV IDFHG ZDV WKH IHDU RI UHMHFWLRQ

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 14 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 7KLV SUREOHP FU\VWDOL]HG IRU 5DG RQH QLJKW DW D UHVWDXUDQW ZLWK KLV IULHQGV 7KH

UHVWDXUDQW ZDV IXOO RI \RXQJ SHRSOH DOO SRWHQWLDOO\ LQWHUHVWHG LQ IRUPLQJ QHZ FRQQHFWLRQV EXW KLV

IULHQGV ZHUH IRFXVHG RQ WKHLU SKRQHV LQVWHDG RI LQWHUDFWLQJ ZLWK RWKHUV LQ WKH URRP

 5DG GHVLJQHG D VROXWLRQ D VPDUWSKRQH DSS WKDW ZRXOG OHW XVHUV H[SUHVV LQWHUHVW LQ

LQGLYLGXDOV QHDU WKHLU SK\VLFDO ORFDWLRQ 5DG DOVR XQGHUVWRRG WKDW D PRELOH DSSEDVHG SODWIRUP

ZRXOG WDNH DGYDQWDJH RI WKH WUHQG WR PRELOH GHYLFHV²XQOLNH OHJDF\ GDWLQJ SODWIRUPV OLNH

0DWFKFRP WKDW UHPDLQHG ZHEEDVHG DQG IDLOHG WR DGDSW WKHLU FOXQN\ LQWHUIDFHV IRU QHZ XVHUV $QG

RQO\ ZKHQ WZR XVHUV H[SUHVVHG LQWHUHVW LQ HDFK RWKHU FRXOG WKH\ VWDUW FKDWWLQJ ZLWKLQ WKH DSS 5DG

EHOLHYHG WKDW WKLV ³GRXEOH RSWLQ´ V\VWHP ZRXOG VLJQLILFDQWO\ UHGXFH WKH EDUULHUV WR QHZ

FRQQHFWLRQV E\ HOLPLQDWLQJ WKH IHDU RI UHMHFWLRQ 5DG¶V FHQWUDO LQVLJKWV ZHQW RQ WR UHYROXWLRQL]H

WKH RQOLQH GDWLQJ LQGXVWU\

 5DG DQG -XVWLQ 0DWHHQ DQRWKHU /RV $QJHOHV HQWUHSUHQHXU ZLWK VXFFHVVIXO VWDUWXSV

WR KLV FUHGLW EHJDQ GLVFXVVLQJ SRWHQWLDO HQGHDYRUV DURXQG WKLV WLPH DV ZHOO $PRQJ RWKHU FRQFHSWV

WKH\ GLVFXVVHG 5DG¶V LGHD IRU ZKDW ZRXOG EHFRPH 7LQGHU

,, 7KH 7LQGHU 3ODLQWLIIV %HJLQ 7R %XLOG 7LQGHU

 5DG ZDV UHFUXLWHG WR MRLQ +DWFK /DEV LQ RU DURXQG )HEUXDU\  +DWFK /DEV ZDV

D VWDUWXS LQFXEDWRU²D WHUP IRU D FRPSDQ\ WKDW SURYLGHV UHVRXUFHV DQG VXSSRUW VHUYLFHV WR HDUO\

VWDJH HQWHUSULVHV +DWFK /DEV KDG IRUPDOO\ ODXQFKHG LQ 0DUFK  DV D MRLQW YHQWXUH EHWZHHQ

,$& DQG ;WUHPH /DEV D PRELOH VWUDWHJ\ DQG SURGXFW GHYHORSPHQW FRPSDQ\ ,$& ZDV WKH

PDMRULW\ RZQHU RI +DWFK /DEV DQG ;WUHPH /DEV RZQHG D PLQRULW\ VWDNH

 'D\V DIWHU MRLQLQJ +DWFK /DEV LQ )HEUXDU\  5DG SDUWLFLSDWHG LQ D ³KDFNDWKRQ´

RU ³+$7&+DWKRQ´ KRVWHG E\ WKH LQFXEDWRU²D VKRUWWHUP LQWHQVH GHVLJQ HYHQW LQ ZKLFK

SDUWLFLSDQWV FROODERUDWH WR GHYHORS WKH EHVW QHZ VRIWZDUH SURGXFW 5DG FRPSHWHG LQ WKH KDFNDWKRQ

ZLWK -RH 0XxR] DQRWKHU +DWFK /DEV HPSOR\HH 5DG XVHG WKH HYHQW WR GHYHORS KLV GDWLQJ DSS LGHD

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 15 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

EXLOGLQJ D SUHVHQWDWLRQ IRU ZKDW ZDV RULJLQDOO\ FDOOHG ³0DWFK%R[´ DQG HYHQWXDOO\ EHFDPH NQRZQ

WKURXJKRXW WKH ZRUOG DV 7LQGHU 5DG¶V SUHVHQWDWLRQ LQFOXGHG WKH FRUH GHVLJQV DQG IXQFWLRQDOLW\ RI

WKH DSS ZKLFK UHPDLQ WKH FHQWHUSLHFH RI WKH 7LQGHU H[SHULHQFH WRGD\ DV ZHOO DV GHVFULSWLRQV RI

ZKDW ZRXOG EHFRPH VRPH RI 7LQGHU¶V PDLQ UHYHQXH VWUHDPV 0XxR] H[SORUHG YDULRXV ORFDWLRQ

EDVHG WHFKQRORJLHV IRU WKH DSS

 5DG¶V 0DWFK%R[ FRQFHSW ZRQ WKH KDFNDWKRQ %XW RQFH WKH KDFNDWKRQ HQGHG 5DG

UHWXUQHG WR KLV ³GD\ MRE´ DW +DWFK /DEV EXLOGLQJ &DUGLI\ D GLIIHUHQW DSS IRFXVHG RQ OR\DOW\ FDUG

SURJUDPV IRU UHWDLO EXVLQHVVHV 7KH &DUGLI\ WHDP JUHZ DV 5DG UHFUXLWHG FROOHDJXHV WR MRLQ KLV

SURMHFW LQFOXGLQJ -RQDWKDQ %DGHHQ -RH 0XxR] DQG &KULV *XOF]\QVNL 7RJHWKHU WKH\ VSHQW

VHYHUDO PRQWKV EXLOGLQJ &DUGLI\ 5DG DQG %DGHHQ DOVR UHFUXLWHG 5\DQ 2JOH DQG &KULV /LP WR ZRUN

RQ DQRWKHU +DWFK /DEV SURGXFW *XOF]\QVNL 2JOH DQG /LP ZRXOG HDFK JR RQ WR SOD\ NH\ UROHV LQ

WKH HDUO\ VWDJHV DQG JURZWK RI 7LQGHU

 5DG DOVR VXJJHVWHG FUHDWLQJ D QHZ +DWFK /DEV LQLWLDWLYH WR LQFXEDWH 0DWFK%R[

+DWFK /DEV PDQDJHPHQW WROG 5DG WKH LQFXEDWRU ZRXOG QRW IXQG DQ\ DGGLWLRQDO VWDUWXSV DW WKDW WLPH

5DG SURSRVHG WKDW KH ZRXOG SDUWQHU ZLWK 0DWHHQ DQG WRJHWKHU WKH\ ZRXOG ILQDQFH WKH GHYHORSPHQW

RI 0DWFK%R[ RXWVLGH RI +DWFK /DEV +DWFK /DEV DOVR GLG QRW ZDQW 5DG WR SXUVXH WKH 0DWFK%R[

SURMHFW LQGHSHQGHQWO\ ,QVWHDG +DWFK /DEV VXJJHVWHG WKDW 5DG ZRUN RQ 0DWFK%R[ XVLQJ WKH

H[LVWLQJ &DUGLI\ WHDP OHYHUDJLQJ WKHLU IUHH WLPH ZLWKRXW DGGLWLRQDO IXQGLQJ

 %HFDXVH 0DWFK%R[ ZDV 5DG¶V LGHD DQG ZRXOG EH EXLOW RQ WKH VLGH ZLWK IHZ +DWFK

/DEV UHVRXUFHV 5DG SURSRVHG IRXQGHUIULHQGO\ RZQHUVKLS WHUPV IRU 0DWFK%R[ WKH IRXQGLQJ WHDP

ZRXOG RZQ D VXEVWDQWLDO PDMRULW\ RI 0DWFK%R[ ZLWK +DWFK /DEV DV D PLQRULW\ RZQHU RU LQYHVWRU

,$& DQG +DWFK /DEV DJUHHG WR WKLV SURSRVDO

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 16 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

,,, 7KH 7LQGHU 3ODLQWLIIV /DXQFK 7LQGHU $QG ,$& 'HSULYHV 7KHP 2I 7KHLU
3URPLVHG 2ZQHUVKLS

 5DG DVNHG 0DWHHQ WR SDUWQHU ZLWK KLP DQG WR VSHDUKHDG LQQRYDWLYH PDUNHWLQJ DQG

JURZWK VWUDWHJLHV IRU WKH DSS 5DG DVNHG %DGHHQ WR SDUWQHU ZLWK KLP LQ GHYHORSLQJ WKH DSS $QG

KH DVNHG 0XxR] DQG *XOF]\QVNL WR GHGLFDWH WKHLU IUHH WLPH WR EXLOGLQJ WKH DSS %DGHHQ DQG

*XOF]\QVNL ZRUNHG RQ EUDQG DQG DSS JUDSKLFDO GHVLJQ %DGHHQ ZDV UHVSRQVLEOH IRU SURJUDPPLQJ

WKH RULJLQDO DSS IRU L3KRQH +H UHPDLQV ZLWK WKH FRPSDQ\ WRGD\ DV LWV &KLHI 6WUDWHJ\ 2IILFHU

 ,Q RU DURXQG -XO\  +DWFK /DEV WROG 5DG WKDW KH ZRXOG KDYH WR UHQDPH

0DWFK%R[ EHIRUH VXEPLWWLQJ LW WR $SSOH¶V $SS 6WRUH²,$& ZRXOG QRW SHUPLW DQRWKHU GDWLQJ

FRPSDQ\ WR KDYH D QDPH VLPLODU WR LWV OHJDF\ GDWLQJ EUDQG 0DWFKFRP 0DWFK%R[ ZDV UHQDPHG

7LQGHU DQG WKH WHDP VXEPLWWHG WKH DSS WR $SSOH¶V $SS 6WRUH LQ $XJXVW  7LQGHU ZDV RIILFLDOO\

UHOHDVHG IRU L3KRQH XVHUV LQ 6HSWHPEHU  DQG IRU $QGURLG XVHUV LQ -XO\ 

 0DWHHQ SDUWQHUHG ZLWK 5DG WR ODXQFK 7LQGHU DQG ZRUNHG WLUHOHVVO\ WR SURPRWH LW

+H WDUJHWHG FROOHJH FDPSXVHV DQG GHYHORSHG DQ LQWHUQDWLRQDO QHWZRUN RI FHOHEULWLHV DQG VRFLDO

PHGLD ³LQIOXHQFHUV´ WR SURPRWH WKH DSS WKURXJKRXW WKH ZRUOG $OPRVW LPPHGLDWHO\ WKH 7LQGHU

WHDP UHDOL]HG LW KDG FUHDWHG VRPHWKLQJ YLUDO DQG SRWHQWLDOO\ H[SORVLYH 7LQGHU GRZQORDGV VRDUHG

DQG XVHU HQJDJHPHQW ZDV RIIWKHFKDUWV

 7KH 7LQGHU WHDP FRQWLQXHG WR H[SDQG LQ RUGHU WR VFDOH WKH UDSLGO\ JURZLQJ

FRPSDQ\ 7KH WHDP UHFUXLWHG $OH[D 0DWHHQ DQG :KLWQH\ :ROIH ERWK WKHQ ZRUNLQJ DW &DUGLI\

WR KHOS GHILQH WKH FRPSDQ\¶V JUDVVURRWV VWUDWHJ\ WR UHDFK PLOOHQQLDOV LQFOXGLQJ E\ UHFUXLWLQJ

³VWXGHQW DPEDVVDGRUV´ WR SURPRWH WKH DSS RQ FROOHJH FDPSXVHV 7KH WHDP DOVR UHFUXLWHG *DUHWK

-RKQVRQ ZKR KHOSHG VKDSH 7LQGHU¶V PDUNHWLQJ GHVLJQ 5RVHWWH 3DPEDNLDQ WKHQ DQ HVWDEOLVKHG

FRPPXQLFDWLRQV SURIHVVLRQDO DW D SURPLQHQW SXEOLF UHODWLRQV DJHQF\ MRLQHG IRUFHV WR EXLOG DQG

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 17 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

VFDOH 7LQGHU¶V JOREDO FRPPXQLFDWLRQV DQG EUDQG VWUDWHJ\ $QG -RVKXD 0HW] FDPH RQERDUG WR

MXPSVWDUW 7LQGHU¶V LQWHUQDWLRQDO H[SDQVLRQ

 7R NHHS SDFH ZLWK 7LQGHU¶V XQSUHFHGHQWHG JURZWK WKH WHDP DOVR UHFUXLWHG QHZ

HQJLQHHUV LQFOXGLQJ 5\DQ 2JOH WR OHDG WKH HQJLQHHULQJ WHDP DV &KLHI 7HFKQRORJ\ 2IILFHU DQG

UHEXLOG 7LQGHU¶V FRGH IURP VFUDWFK 2JOH ZRUNHG VOHHSOHVV QLJKWV WR UHEXLOG 7LQGHU¶V EDFNHQG

WHFKQRORJ\ %DGHHQ LQYHQWHG DQG EXLOW 7LQGHU¶V LFRQLF ³VZLSH´ IHDWXUH +H DOVR FROODERUDWHG ZLWK

2JOH DQG RWKHUV RQ UHZULWLQJ WKH 7LQGHU L3KRQH DSS

 $URXQG WKH HQG RI  WKH 7LQGHU 3ODLQWLIIV OHDUQHG WKDW ,$& SODQQHG WR VKXWWHU

+DWFK /DEV DQG QR ORQJHU ZDQWHG WR LQFXEDWH FRPSDQLHV²DQ DSSURDFK ,$& &KDLUPDQ DQG 6HQLRU

([HFXWLYH %DUU\ 'LOOHU UHFHQWO\ GHVFULEHG DV LQKHUHQWO\ D ³FUDSVKRRW>@´ 7LQGHU ZRXOG QHHG WR

UDLVH RXWVLGH FDSLWDO WR NHHS 7LQGHU DOLYH

 5DG DQG 0DWHHQ¶V HVWDEOLVKHG UHODWLRQVKLSV DQG FUHGLELOLW\ LQ WKH WHFK FRPPXQLW\

DQG 7LQGHU¶V SRWHQWLDO HQDEOHG WKHP WR UDLVH PXOWLPLOOLRQGROODU LQYHVWPHQW RIIHUV IURP D QXPEHU

RI SURPLQHQW WHFKQRORJ\ YHQWXUH FDSLWDOLVWV 7KH\ H[HFXWHG WKLV VXFFHVVIXO IXQGUDLVLQJ HIIRUW

ZKLOH WKH\ DQG WKH UHVW RI WKH 7LQGHU WHDP FRQWLQXHG ZRUNLQJ DURXQG WKH FORFN ZLWK IHZ UHVRXUFHV

WR NHHS SDFH ZLWK WKH JURZLQJ GHPDQGV RI 7LQGHU

 $IWHU ZDWFKLQJ 7LQGHU FRQWLQXH WR VN\URFNHW DQG SURPLQHQW RXWVLGH LQYHVWRUV

H[SUHVV LQWHUHVW LQ EX\LQJ WKH FRPSDQ\ ,$& UHQHJHG RQ WKH IRXQGHUIULHQGO\ GHDO WR ZKLFK LW KDG

DJUHHG DQG LQVLVWHG WKDW +DWFK /DEV RZQHG DOO RI 7LQGHU¶V HTXLW\ 7KH 7LQGHU WHDP UHFHLYHG QR

HTXLW\ LQ 7LQGHU ,QF ZKHQ LW ZDV IRUPDOO\ LQFRUSRUDWHG LQ 0DUFK  ,QVWHDG WKH\ UHFHLYHG

RQO\ GLOXWDEOH ³VWRFN DSSUHFLDWLRQ ULJKWV´ UHSUHVHQWLQJ D IUDFWLRQ RI WKH YDOXH ,$& KDG SURPLVHG

'HIHQGDQWV ZRXOG FRPH WR RZQ DOO RI WKH HTXLW\ RI 7LQGHU ,QF

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 18 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

,9 $V 7LQGHU 6N\URFNHWV ,$& 6HFXUHV ,WV 2ZQHUVKLS 7KURXJK 'HFHSWLRQ

 )ROORZLQJ 7LQGHU¶V VXFFHVVIXO ODXQFK WKH 7LQGHU 3ODLQWLIIV DQG WKHLU FROOHDJXHV

ZRUNHG WLUHOHVVO\ WR EXLOG DQG VFDOH WKH FRPSDQ\¶V SURGXFW RUJDQL]DWLRQ DQG UHYHQXH VWUHDPV WR

ZKDW WKH\ DUH WRGD\

 5DG DQG -RQDWKDQ %DGHHQ 7LQGHU¶V FXUUHQW &KLHI 6WUDWHJ\ 2IILFHU RYHUVDZ

7LQGHU¶V SURGXFW DQG GHVLJQ WHDP ZKLFK ZHQW RQ WR LGHDWH DQG FUHDWH DOO RI 7LQGHU¶V FXUUHQW

SURGXFWV DQG UHYHQXH IHDWXUHV²IURP WKH LFRQLF ³VZLSH´ WR PDQ\ RI 7LQGHU¶V NH\ UHYHQXH IHDWXUHV

-XVWLQ 0DWHHQ VFDOHG 7LQGHU¶V XVHU EDVH IURP VFUDWFK ERWK GRPHVWLFDOO\ DQG LQWHUQDWLRQDOO\ E\

GHYHORSLQJ LQQRYDWLYH PDUNHWLQJ DQG SURGXFW PRQHWL]DWLRQ VWUDWHJLHV WKDW UHGHILQHG KRZ

FRPSDQLHV FRQQHFW ZLWK PLOOHQQLDOV ZRUOGZLGH 5\DQ 2JOH EXLOW DQG OHG 7LQGHU¶V HQJLQHHULQJ

WHDP DQG DUFKLWHFWHG WKH LQIUDVWUXFWXUH UHTXLUHG WR VFDOH WR WHQV RI PLOOLRQV RI XVHUV $V WKH OHDGHU

RI 7LQGHU¶V JOREDO FRPPXQLFDWLRQV JURXS DQG QRZ 9LFH 3UHVLGHQW RI 0DUNHWLQJ DQG

&RPPXQLFDWLRQV 5RVHWWH 3DPEDNLDQ IRUJHG 7LQGHU¶V XQLTXH LGHQWLW\ DQG FRPPXQLFDWLRQV

LQIUDVWUXFWXUH IURP WKH JURXQG XS -RVKXD 0HW] 7LQGHU¶V FXUUHQW 'LUHFWRU RI 0DUNHWLQJ FDWDO\]HG

7LQGHU¶V JOREDO JURZWK $OH[D 0DWHHQ KHOSHG GHILQH WKH FRPSDQ\¶V JUDVVURRWV VWUDWHJLHV 3DXO

&DIDUGR RYHUVDZ WKH GHYHORSPHQW RI 7LQGHU¶V $QGURLG DSS KHOSLQJ 7LQGHU H[SDQG WR D KXJH SRRO

RI QHZ $QGURLG XVHUV *DUHWK -RKQVRQ KHOSHG GHYHORS DQG FRQVWUXFW 7LQGHU¶V PDUNHWLQJ GHVLJQ

$QG -DPHV .LP 7LQGHU¶V FXUUHQW 9LFH 3UHVLGHQW RI )LQDQFH VHW LQ SODFH WKH ILQDQFLDO V\VWHPV DQG

FRQWUROV WKDW HQDEOHG WKH WHDP DQG LQYHVWRUV WR JDLQ FOHDU NQRZOHGJH RI WKH FRPSDQ\¶V ILQDQFLDO

SHUIRUPDQFH

 7LQGHU¶V IRXQGHUV DQG HDUO\ HPSOR\HHV IRUPHG D FORVH DQG SDVVLRQDWH FRPPXQLW\

RI FROOHDJXHV DQG IULHQGV 7KH\ NQHZ WKH\ ZHUH ZRUNLQJ WRJHWKHU RQ D RQFHLQDOLIHWLPH

RSSRUWXQLW\ DQG VXSSRUWHG HDFK RWKHU ZKLOH EXLOGLQJ DQ H[SORVLYH WHFK FRPSDQ\ IURP VFUDWFK

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 19 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 7KH 7LQGHU 3ODLQWLIIV¶ GHGLFDWLRQ DQG KDUG ZRUN SURSHOOHG 7LQGHU WR HQRUPRXV

VXFFHVV %\ 0DUFK  7LQGHU KDG RYHU  PLOOLRQ WRWDO UHJLVWHUHG XVHUV ZLWK PRUH WKDQ IRXU

PLOOLRQ GDLO\ DFWLYH XVHUV (DFK GD\ 7LQGHU XVHUV FROOHFWLYHO\ VZLSHG RQ RYHU  PLOOLRQ SURILOHV

ZLWK HDFK XVHU VSHQGLQJ HQRXJK WLPH HQJDJHG WR VZLSH RQ DYHUDJH DSSUR[LPDWHO\  SURILOHV

 $V 7LQGHU FRQWLQXHG WR JURZ ,$& VHW DERXW VHFXULQJ WRWDO RZQHUVKLS RI 7LQGHU E\

EX\LQJ RXW ;WUHPH /DEV¶ PLQRULW\ VWDNH LQ +DWFK /DEV $JDLQ ,$& UHVRUWHG WR GHFHSWLRQ 2Q

LQIRUPDWLRQ DQG EHOLHI ,$& PLVOHG ;WUHPH /DEV DERXW 7LQGHU¶V WUXH YDOXH GXULQJ D SULYDWH

YDOXDWLRQ WR GHWHUPLQH WKH ZRUWK RI ;WUHPH /DEV¶ PLQRULW\ VWDNH UHVWULFWLQJ ;WUHPH /DEV¶ DFFHVV

WR LQIRUPDWLRQ DQG IHHGLQJ LW LQDFFXUDWH GDWD 2Q LQIRUPDWLRQ DQG EHOLHI ,$& PLVOHG ;WUHPH /DEV

LQWR YDOXLQJ 7LQGHU DW RQO\  PLOOLRQ²KDOI RI ZKDW H[LVWLQJ HYLGHQFH VKRZHG LW ZDV DOUHDG\

ZRUWK²DQG DFTXLUHG FRPSOHWH RZQHUVKLS RI 7LQGHU DW D VLJQLILFDQW GLVFRXQW

9 7KH 7LQGHU 3ODLQWLIIV 2EWDLQ :ULWWHQ &RQWUDFWV 7R 3URWHFW 7LQGHU 2SWLRQKROGHUV

 $IWHU 'HIHQGDQWV KDG VHFXUHG FRPSOHWH RZQHUVKLS RI 7LQGHU E\ GHFHLYLQJ WKH

IRXQGLQJ WHDP DQG ;WUHPH /DEV 5DG DQG 0DWHHQ UHDOL]HG WKH\ QHHGHG WR UHQHJRWLDWH WKHLU

DJUHHPHQWV ZLWK 'HIHQGDQWV WR REWDLQ VSHFLILF SURWHFWLRQV IRU WKH 7LQGHU WHDP

 &RQYHQWLRQDOO\ D VWDUWXS HPSOR\HH PD\ UHFHLYH VRPH QXPEHU RI VWRFN RSWLRQV LQ

D FRPSDQ\ ZKHQ KH RU VKH MRLQV 7KRVH RSWLRQV YHVW RYHU WLPH²DV WKH HPSOR\HH UHPDLQV DW WKH

FRPSDQ\ KH RU VKH JDLQV FRQWURO RYHU DQ LQFUHDVLQJO\ ODUJH SRUWLRQ RI KLV RU KHU RSWLRQV 2QFH

WKRVH RSWLRQV YHVW HPSOR\HHV KDYH WKH ULJKW WR H[HUFLVH WKHP XQYHVWHG RSWLRQV E\ FRQWUDVW FDQQRW

EH H[HUFLVHG 7KLV DUUDQJHPHQW VWDQGDUG LQ VWDUWXSV PHDQV WKDW HPSOR\HHV WDNH D ULVN RQ WKH

FRPSDQLHV WKH\ MRLQ 7KH\ HDUQ ORZHU VDODULHV WKDQ PD\ RWKHUZLVH EH DYDLODEOH %XW LI WKH\ ZRUN

ORQJ HQRXJK IRU WKHLU RSWLRQV WR YHVW DQG WKH FRPSDQ\ VXFFHHGV WKHLU RSWLRQV FDQ EHFRPH YHU\

YDOXDEOH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 20 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 )RU SXEOLF FRPSDQLHV WKH SURFHVV RI YDOXLQJ VWRFN RSWLRQV LV VWUDLJKWIRUZDUG

(PSOR\HHV W\SLFDOO\ UHFHLYH VWRFN RSWLRQV JUDQWLQJ WKHP WKH ULJKW WR EX\ D VKDUH RI WKH FRPSDQ\¶V

VWRFN DW D FHUWDLQ VWULNH SULFH :KHQ HPSOR\HHV KDYH ZRUNHG ORQJ HQRXJK IRU WKHLU RSWLRQV WR YHVW

WKH\ KDYH WKH ULJKW WR H[HUFLVH WKHP DW WKHLU GLVFUHWLRQ PHDQLQJ WKH\ EX\ WKH VWRFN DW WKH RSWLRQ¶V

VWULNH SULFH DQG WKHQ VHOO LW DW WKH FXUUHQW PDUNHW SULFH RQ D SXEOLF VWRFN H[FKDQJH UHFHLYLQJ WKH

GLIIHUHQFH DV SURILW )RU D SULYDWH FRPSDQ\ OLNH 7LQGHU KRZHYHU WKHUH LV QR SXEOLF PDUNHW IRU

HPSOR\HHV WR EX\ DQG VHOO VKDUHV 3ULYDWHO\ KHOG VWDUWXSV PXVW WKHUHIRUH XVH D GLIIHUHQW SURFHVV WR

VHW D IDLU YDOXDWLRQ RQ WKH FRPSDQ\ DV D ZKROH VR WKDW RSWLRQV FDQ EH YDOXHG DQG H[HUFLVHG

 7KH H[LVWLQJ DJUHHPHQWV JRYHUQLQJ 7LQGHU ³VWRFN DSSUHFLDWLRQ ULJKWV´²ZKLFK ,$&

KDG LPSRVHG RQ WKH 7LQGHU 3ODLQWLIIV LQ  ZKHQ LW KHOG DOO WKH FDUGV²ODFNHG FULWLFDO VDIHJXDUGV

IRU WKH HPSOR\HHV 5DG DQG 0DWHHQ VHW RXW WR QHJRWLDWH QHZ DJUHHPHQWV WKDW ZRXOG EHWWHU SURWHFW

7LQGHU HPSOR\HHV DQG KLUHG UHVSHFWHG 6LOLFRQ 9DOOH\ DWWRUQH\ /DUU\ 6RQVLQL D IRXQGHU RI WKH ODZ

ILUP :LOVRQ 6RQVLQL *RRGULFK 5RVDWL ³:6*5´  WR QHJRWLDWH ZLWK 'HIHQGDQWV

 ,$& DQG 0DWFK H[HFXWLYHV H[SUHVVHG DQJHU ZKHQ WKH\ OHDUQHG 5DG DQG 0DWHHQ KDG

KLUHG :6*5 WR UHQHJRWLDWH WKHLU FRQWUDFWV DQG WR VROLGLI\ DQG VWUHQJWKHQ WKH ULJKWV RI WKH 7LQGHU

WHDP 2Q RQH RFFDVLRQ *UHJ %ODWW WKHQ &KDLUPDQ RI 0DWFK ZKR OHG WKH EXVLQHVV QHJRWLDWLRQV IRU

'HIHQGDQWV HUXSWHG DW 5DG VFUHDPLQJ SURIDQHO\ LQ VXP DQG VXEVWDQFH ³:K\ WKH IXFN GLG \RX

JHW /DUU\ 6RQVLQL LQYROYHG"´

 %ODWW ZDV D FORVH DGYLVRU WR ,$& &KDLUPDQ DQG FRQWUROOLQJ VKDUHKROGHU %DUU\ 'LOOHU

DQG KDV VHUYHG 'LOOHU LQ YDULRXV VHQLRU OHDGHUVKLS UROHV ZLWKLQ ,$& VLQFH ²LQFOXGLQJ DV &(2

RI ,$& IURP  WR  &KDLUPDQ RI 0DWFK IURP  WR  DQG &(2 RI 0DWFK IURP 

WR  2Q LQIRUPDWLRQ DQG EHOLHI %ODWW¶V SHUVRQDO ILQDQFLDO LQWHUHVWV ZHUH DOLJQHG ZLWK ,$& DQG

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 21 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

0DWFK EDVHG RQ KLV RZQHUVKLS RI VLJQLILFDQW ,$& DQGRU 0DWFK HTXLW\ DQGRU VWRFN RSWLRQV %ODWW

DOVR KDG D UHSXWDWLRQ IRU EXOO\LQJ DQG LQWLPLGDWLRQ

 2WKHU H[HFXWLYHV DW ,$& LQFOXGLQJ *UHJJ :LQLDUVNL ,$&¶V *HQHUDO &RXQVHO

SDUWLFLSDWHG LQ WKH  FRQWUDFW QHJRWLDWLRQV :LQLDUVNL KDG VHUYHG DV DQ LQKRXVH DWWRUQH\ IRU

,$& VLQFH  DQG DV ,$&¶V *HQHUDO &RXQVHO VLQFH 

 $IWHU QHJRWLDWLQJ IRU VL[ PRQWKV 5DG DQG 0DWHHQ REWDLQHG YDOXDEOH FRQWUDFWXDO

SURWHFWLRQV IRU WKH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU RSWLRQKROGHUV 7KH QHZ FRQWUDFWV JUDQWHG

7LQGHU HPSOR\HHV WUDGLWLRQDO VWRFN RSWLRQV²WKH LQGXVWU\ VWDQGDUG IRU HPSOR\HH HTXLW\ DQG IDU

HDVLHU IRU SURVSHFWLYH HPSOR\HHV WR XQGHUVWDQG²LQVWHDG RI ³VWRFN DSSUHFLDWLRQ ULJKWV´ DQG WKH\

SURWHFWHG WKRVH RSWLRQV DJDLQVW GLOXWLRQ E\ 'HIHQGDQWV 7KH FRQWUDFWV VHW D VFKHGXOH RI VSHFLILF

IXWXUH GDWHV ZKHQ 7LQGHU HPSOR\HHV FRXOG H[HUFLVH WKHLU RSWLRQV LQ    DQG 

$QG WKH\ LQVWLWXWHG DQ LQGHSHQGHQW SURFHVV IRU YDOXLQJ 7LQGHU RQ HDFK RI WKRVH VSHFLILF GDWHV

7LQGHU HPSOR\HHV FRXOG FKRRVH WR H[HUFLVH WKHLU RSWLRQV RQ DQ\ RI WKRVH GDWHV EDVHG RQ WKH SULFH

GHWHUPLQHG WKURXJK WKH YDOXDWLRQ SURFHVV²RU LI WKH\ EHOLHYHG WKDW 7LQGHU ZRXOG FRQWLQXH WR

EHFRPH PRUH YDOXDEOH 7LQGHU HPSOR\HHV FRXOG KROG WKHLU RSWLRQV XQWLO WKH QH[W RSSRUWXQLW\

9, 7KH  $JUHHPHQWV &RQWUDFWXDO 5LJKWV $QG 3URWHFWLRQV )RU $OO 7LQGHU
2SWLRQKROGHUV

 )RXU SULPDU\ DJUHHPHQWV WKH ³$JUHHPHQWV´ VHW IRUWK WKH QHZ GHDO 5DG DQG

0DWHHQ QHJRWLDWHG WR SURWHFW 7LQGHU RSWLRQKROGHUV  WKH 7LQGHU ,QF 5HVWDWHG  (TXLW\

,QFHQWLYH 3ODQ  WKH 7LQGHU ,QF  (TXLW\ 6HWWOHPHQW 3ODQ  D )XQGLQJ DQG *RYHUQDQFH

$JUHHPHQW EHWZHHQ 7LQGHU ,$& DQG 5DG DQG IRU HDFK RI WKH 7LQGHU 3ODLQWLIIV  D 7LQGHU ,QF

5HVWDWHG  (TXLW\ ,QFHQWLYH 3ODQ 5HVWDWHG 6WRFN 2SWLRQ $JUHHPHQW

 7KH 7LQGHU ,QF 5HVWDWHG  (TXLW\ ,QFHQWLYH 3ODQ DGRSWHG E\ 7LQGHU RQ -XO\

  WKH ³ (TXLW\ ,QFHQWLYH 3ODQ´  SHUPLWWHG WKH FRPSDQ\ WR DPRQJ RWKHU WKLQJV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 22 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

JUDQW ³1RQVWDWXWRU\ 6WRFN 2SWLRQV 6WRFN $SSUHFLDWLRQ 5LJKWV 5HVWULFWHG 6WRFN DQG 5HVWULFWHG

6WRFN 8QLWV´ IRU WKH SXUSRVHV RI ³DWWUDFW>LQJ@ DQG UHWDLQ>LQJ@ WKH EHVW DYDLODEOH SHUVRQQHO IRU

SRVLWLRQV RI VXEVWDQWLDO UHVSRQVLELOLW\´ ³SURYLG>LQJ@ DGGLWLRQDO LQFHQWLYH>V@ WR (PSOR\HHV

'LUHFWRUV DQG &RQVXOWDQWV´ DQG ³SURPRW>LQJ@ WKH VXFFHVV RI WKH &RPSDQ\¶V EXVLQHVV´

 7KH 7LQGHU ,QF  (TXLW\ 6HWWOHPHQW 3ODQ DGRSWHG E\ 7LQGHU DQG ,$& DV RI

-XO\   DQG DPHQGHG DV RI 2FWREHU   WKH ³6HWWOHPHQW 3ODQ´  SURYLGHG WZR GLIIHUHQW

W\SHV RI RSSRUWXQLWLHV IRU 7LQGHU RSWLRQKROGHUV WR H[HUFLVH WKHLU YHVWHG RSWLRQV

D 2Q VSHFLILF GDWHV WHUPHG ³6FKHGXOHG 3XWV´ 7LQGHU ZRXOG EH UHTXLUHG WR

XQGHUJR DQ LQGHSHQGHQW YDOXDWLRQ DQG RSWLRQKROGHUV ZRXOG KDYH WKH ULJKW

WR H[HUFLVH WKHLU RSWLRQV DW WKH SULFH GHWHUPLQHG WKURXJK WKDW SURFHVV 7KH

6FKHGXOHG 3XWV ZHUH UHTXLUHG WR RFFXU ³>R@Q RU SURPSWO\ IROORZLQJ´ 0D\

  1RYHPEHU   0D\   DQG 0D\  

E 7LQGHU ZRXOG DOVR KDYH WKH DXWKRULW\ WR JUDQW DGGLWLRQDO XQVFKHGXOHG

RSSRUWXQLWLHV IRU RSWLRQKROGHUV WR H[HUFLVH WKHLU YHVWHG RSWLRQV WHUPHG

³'LVFUHWLRQDU\ 3XWV´

F 'XULQJ DQ\ H[HUFLVH HYHQW ZKHWKHU D 6FKHGXOHG 3XW RU D 'LVFUHWLRQDU\ 3XW

7LQGHU ZDV UHTXLUHG WR ³GHOLYHU WR DOO 3ODQ %HQHILFLDULHV HOLJLEOH WR

SDUWLFLSDWH LQ WKH 4XDOLI\LQJ 3XW ZULWWHQ QRWLFH RI WKH 3XW 3ULFH DQG

VXSSRUWLQJ FDOFXODWLRQ V WKH µ3XW 3ULFH 1RWLFH¶ ´ 7KH 3XW 3ULFH 1RWLFH

ZDV UHTXLUHG WR ³LQFOXGH LQVWUXFWLRQV IRU H[HUFLVLQJ DQ\ YHVWHG 2SWLRQV WKDW

VXFK KROGHUV PD\ FKRRVH WR H[HUFLVH´

G 7LQGHU ZDV DOVR UHTXLUHG WR SURYLGH YHVWHG RSWLRQKROGHUV ZLWK D ³3XW

([HUFLVH :LQGRZ´ RI DW OHDVW  GD\V¶ GXUDWLRQ ZKHQ WKH\ FRXOG H[HUFLVH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 23 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

WKHLU RSWLRQV E\ GHOLYHULQJ D ³3XW ([HUFLVH 1RWLFH´ WR 7LQGHU ZKLFK VHUYHG

DV ZULWWHQ QRWLFH RI WKH GHFLVLRQ WR H[HUFLVH

H 1R PRUH WKDQ  GD\V IROORZLQJ UHFHLSW RI D 3XW ([HUFLVH 1RWLFH 7LQGHU

ZDV UHTXLUHG WR SD\ DQ H[HUFLVLQJ RSWLRQKROGHU DQ DPRXQW HTXDO WR WKH

³2SWLRQ 6SUHDG´ RI WKH H[HUFLVHG RSWLRQV OHVV DSSOLFDEOH WD[ ZLWKKROGLQJ

³2SWLRQ 6SUHDG´ ZDV GHILQHG DV ³DQ DPRXQW HTXDO WR [ WKH H[FHVV LI DQ\

RI WKH DSSOLFDEOH 3XW 3ULFH RYHU WKH H[HUFLVH SULFH RI VXFK 2SWLRQ PXOWLSOLHG

E\ \ WKH QXPEHU RI 6KDUHV XQGHUO\LQJ VXFK 2SWLRQ´

I 7KH 2SWLRQ 6SUHDG ZDV SD\DEOH LQ IUHHO\ WUDGDEOH VKDUHV RI 0DWFK RU ,$&

 7KH 6HWWOHPHQW 3ODQ DOVR PDQGDWHG WZR DOWHUQDWLYH RXWFRPHV LQ WKH HYHQW WKDW ,$&

RU DQ\ RI LWV DIILOLDWHV PHUJHG ZLWK RU DFTXLUHG 7LQGHU DQ ³,$& $FTXLVLWLRQ´ 

D ,I VXFK DQ ,$& $FTXLVLWLRQ FDXVHG D ³PHDQLQJIXO FKDQJH´ LQ WKH DVVHWV

RZQHG RU FRQWUROOHG E\ 7LQGHU ³RU LWV VXFFHVVRU´ RU LQ ³WKH RSHUDWLQJ

VWUXFWXUH RU LQWHJUDWLRQ RI WKH >7LQGHU@ EXVLQHVV LQWR DQ\ RI ,$&¶V RWKHU

EXVLQHVVHV´ WKHQ 7LQGHU ZDV UHTXLUHG WR LQVWLWXWH D 'LVFUHWLRQDU\ 3XW LQ

ZKLFK 7LQGHU RSWLRQKROGHUV FRXOG H[HUFLVH WKHLU RSWLRQV LI WKH\ FKRVH 7KH

6HWWOHPHQW 3ODQ IXUWKHU SURYLGHG WKDW ³>D@OO RXWVWDQGLQJ 2SWLRQV WKDW DUH QRW

H[HUFLVHG LQ VXFK 'LVFUHWLRQDU\ 3XW LI VXFK 'LVFUHWLRQDU\ 3XW LV

FRQVXPPDWHG SULRU WR WKH ,$& $FTXLVLWLRQ VKDOO EH FRQYHUWHG LQWR RSWLRQV

LQ WKH VXFFHVVRU HQWLW\ DV SHUPLWWHG E\ DQG SXUVXDQW WR WKH WHUPV RI WKH

6WRFN 2SWLRQ 3ODQ DQG WKH 6WRFN 2SWLRQ $JUHHPHQW DSSOLFDEOH WR VXFK

2SWLRQV´

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 24 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

E $OWHUQDWLYHO\ ³QRWZLWKVWDQGLQJ WKH IRUHJRLQJ´ WKH 6HWWOHPHQW 3ODQ

SURYLGHG WKDW LI VXFK DQ ,$& $FTXLVLWLRQ GLG QRW FDXVH ³DQ\ PHDQLQJIXO

FKDQJH´ LQ WKH DVVHWV RZQHG RU FRQWUROOHG E\ 7LQGHU ³RU LWV VXFFHVVRU´ RU LQ

³WKH RSHUDWLQJ VWUXFWXUH RU LQWHJUDWLRQ RI WKH >7LQGHU@ EXVLQHVV LQWR DQ\ RI

,$&¶V RWKHU EXVLQHVVHV´ WKHQ ³QR 'LVFUHWLRQDU\ 3XW VKDOO EH WULJJHUHG DQG

WKHVH DUUDQJHPHQWV VKDOO UHPDLQ XQFKDQJHG´

 7KH 6HWWOHPHQW 3ODQ SURYLGHG WKDW LW ZRXOG WHUPLQDWH RQO\ LQ WKH HYHQW RI ³D 3XEOLF

2IIHULQJ´ RI 7LQGHU RU DW ³VXFK WLPH DV ,$& WRJHWKHU ZLWK LWV DIILOLDWHV RZQV OHVV WKDQ D PDMRULW\

RI WKH RXWVWDQGLQJ HTXLW\ RI´ 7LQGHU

 6FKHGXOH $ WR WKH 6HWWOHPHQW 3ODQ GHVFULEHG WKH YDOXDWLRQ SURFHVV²WKH

³4XDOLI\LQJ 9DOXDWLRQ 3URFHVV´²E\ ZKLFK 7LQGHU ZRXOG EH YDOXHG LQ D 6FKHGXOHG 3XW RU D

'LVFUHWLRQDU\ 3XW

D 7KH 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV UHTXLUHG 7LQGHU QRW 0DWFK RU ,$& WR

UHWDLQ WZR EDQNV WR SURYLGH WKHLU ³LQGHSHQGHQW´ GHWHUPLQDWLRQV RI 7LQGHU¶V

³3XEOLF &RPSDQ\ 7UDGLQJ 3ULFH´ RU WKH ³EHVW HVWLPDWH RI WKH SULFH DW

ZKLFK D 6KDUH ZRXOG WUDGH LI WKH 6KDUHV ZHUH WKHQ WUDGLQJ LQ WKH 8QLWHG

6WDWHV RQ D PDMRU H[FKDQJH WUHDWLQJ WKH &RPSDQ\ DV ZLGHO\ WUDGHG ZLWK D

VLJQLILFDQW SXEOLF IORDW´

E 7LQGHU QRW 0DWFK RU ,$& ZDV UHTXLUHG WR SURYLGH DFFHVV WR GLOLJHQFH

LQIRUPDWLRQ DQG LWV PDQDJHPHQW WR GLVFXVV 7LQGHU¶V EXVLQHVV DQG SURVSHFWV

DV ZHOO DV LQSHUVRQ RSSRUWXQLWLHV IRU PDQDJHPHQW WR SUHVHQW LWV

SHUVSHFWLYHV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 25 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 7KH )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW HQWHUHG LQWR E\ DQG DPRQJ 5DG 7LQGHU

DQG ,$& DV RI -XO\   ³5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW´  SURYLGHG DPRQJ

RWKHU WKLQJV WKDW 5DG ZRXOG UHFHLYH XQDXGLWHG EDODQFH VKHHWV DQG VWDWHPHQWV RI LQFRPH DQG FDVK

IORZV IRU 7LQGHU DW WKH HQG RI HDFK ILVFDO TXDUWHU DQG ILVFDO \HDU ³DOO GHWHUPLQDWLRQV RI WKH 3XEOLF

&RPSDQ\ 7UDGLQJ 3ULFH    IROORZLQJ DQ\ VXFK GHWHUPLQDWLRQ´ DQG ³FRSLHV RI DOO 3XW 3ULFH

1RWLFHV´

 5DG HQWHUHG LQWR D QHZ VWRFN RSWLRQ DJUHHPHQW WKH 7LQGHU ,QF 5HVWDWHG 

(TXLW\ ,QFHQWLYH 3ODQ 5HVWDWHG 6WRFN 2SWLRQ $JUHHPHQW E\ DQG DPRQJ 5DG 7LQGHU DQG ,$& DV

RI -XO\   ³5DG¶V 2SWLRQ $JUHHPHQW´ WR JRYHUQ KLV 7LQGHU VWRFN RSWLRQV 5DG¶V 2SWLRQ

$JUHHPHQW VHW IRUWK FHUWDLQ VSHFLILF SURYLVLRQV RI 5DG¶V HTXLW\ GHDO

D 5DG ZDV DQ ³H[SUHVV WKLUG SDUW\ EHQHILFLDU\´ RI WKH 6HWWOHPHQW 3ODQ

E 0DWWHUV UHODWLQJ WR WKH H[HUFLVH WUDQVIHU DQG VHWWOHPHQW RI 5DG¶V 7LQGHU

RSWLRQV ³VKDOO EH FRQWUROOHG E\ WKH 6HWWOHPHQW 3ODQ´ ³IRU VR ORQJ DV WKH

6HWWOHPHQW 3ODQ LV LQ HIIHFW SXUVXDQW WR LWV WHUPV´

F :LWK UHVSHFW WR WKH 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV VHW IRUWK LQ 6FKHGXOH $ RI

WKH 6HWWOHPHQW 3ODQ 5DG ³VKDOO KDYH WKH VDPH ULJKWV DV ,$&´ ,Q DGGLWLRQ

7LQGHU VKDOO SURYLGH 5DG ZLWK HTXLYDOHQW GLOLJHQFH LQIRUPDWLRQ DQG

UHDVRQDEOH DFFHVV WR FRPSDQ\ PDQDJHPHQW

G ³>,@Q FRQQHFWLRQ ZLWK DQ ,$& $FTXLVLWLRQ >5DG¶V@ 2SWLRQV VKDOO EH WUHDWHG

DV FRQWHPSODWHG LQ WKH 6HWWOHPHQW 3ODQ´

 (DFK RI WKH RWKHU 7LQGHU 3ODLQWLIIV²-RQDWKDQ %DGHHQ 3DXO &DIDUGR *DUHWK

-RKQVRQ -DPHV .LP $OH[D 0DWHHQ -XVWLQ 0DWHHQ -RVKXD 0HW] 5\DQ 2JOH DQG 5RVHWWH

3DPEDNLDQ²HQWHUHG LQWR RQH RU PRUH VWRFN RSWLRQ DJUHHPHQWV E\ DQG DPRQJ HDFK 7LQGHU

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 26 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

3ODLQWLII 7LQGHU DQG ,$& IRU HDFK 7LQGHU 3ODLQWLII DQ ³2SWLRQ $JUHHPHQW´ DQG WRJHWKHU ZLWK

5DG¶V 2SWLRQ $JUHHPHQW WKH ³7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV´ WR JRYHUQ HDFK 7LQGHU

3ODLQWLII¶V 7LQGHU VWRFN RSWLRQV 7KRVH DJUHHPHQWV ZHUH VXEVWDQWLDOO\ LGHQWLFDO LQ UHOHYDQW SDUW

,Q SDUWLFXODU

D (DFK 7LQGHU 3ODLQWLII ZDV DQ ³H[SUHVV WKLUG SDUW\ EHQHILFLDU\´ RI WKH

6HWWOHPHQW 3ODQ

E 0DWWHUV UHODWLQJ WR WKH H[HUFLVH WUDQVIHU DQG VHWWOHPHQW RI HDFK 7LQGHU

3ODLQWLII¶V 7LQGHU RSWLRQV ³VKDOO EH FRQWUROOHG E\ WKH 6HWWOHPHQW 3ODQ´ ³IRU

VR ORQJ DV WKH 6HWWOHPHQW 3ODQ LV LQ HIIHFW SXUVXDQW WR LWV WHUPV´

F ³>,@Q FRQQHFWLRQ ZLWK DQ ,$& $FTXLVLWLRQ >HDFK 7LQGHU 3ODLQWLII¶V@ 2SWLRQV

VKDOO EH WUHDWHG DV FRQWHPSODWHG LQ WKH 6HWWOHPHQW 3ODQ´

9,, 'HIHQGDQWV *DLQ $GGLWLRQDO &RQWURO 2I 7LQGHU

 ,Q WKH PLGVW RI QHJRWLDWLQJ WKHVH QHZ FRQWUDFWXDO WHUPV WR SURWHFW DOO 7LQGHU

HPSOR\HHV :KLWQH\ :ROIH ILOHG D FRPSODLQW DJDLQVW 7LQGHU 0DWFK DQG ,$& LQ WKH 6XSHULRU &RXUW

RI &DOLIRUQLD IRU /RV $QJHOHV &RXQW\ DOOHJLQJ WKDW VKH KDG EHHQ VXEMHFWHG WR VH[XDO KDUDVVPHQW

GLVFULPLQDWLRQ DQG UHWDOLDWLRQ DW 7LQGHU

 :ROIH SUHYLRXVO\ KDG VHUYHG DV 7LQGHU¶V 9LFH 3UHVLGHQW RI 0DUNHWLQJ EHIRUH VKH

OHIW 7LQGHU LQ HDUO\  :ROIH DQG 0DWHHQ SUHYLRXVO\ KDG EHHQ LQ D ORQJWHUP SXEOLF URPDQWLF

UHODWLRQVKLS LQFOXGLQJ ZKHQ 7LQGHU ZDV IRXQGHG DQG ZKLOH WKH\ ERWK ZRUNHG DW 7LQGHU

 %HIRUH ILOLQJ :ROIH PDGH KHU HPSOR\PHQW DOOHJDWLRQV SULYDWHO\ WR 0DWFK DQG ,$&

'HIHQGDQWV VXVSHQGHG 0DWHHQ DW WKDW WLPH DQG GLUHFWHG KLP QRW WR FRPPHQW RU UHVSRQG

 'HIHQGDQWV UHVSRQGHG WR WKH ODZVXLW E\ WKUHDWHQLQJ WKDW LI 0DWHHQ GLG QRW DJUHH WR

UHVLJQ LPPHGLDWHO\ DQG IRUIHLW RSWLRQV ,$& ZRXOG ILUH 5DG HYHQ WKRXJK ,$& GLG QRW VXJJHVW 5DG

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 27 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

KDG GRQH DQ\WKLQJ ZURQJ 0DWHHQ NQHZ WKDW 5DG¶V OHDGHUVKLS ZDV HVVHQWLDO WR 7LQGHU¶V FRQWLQXHG

VXFFHVV +H DJUHHG WR UHVLJQ DQG UHOXFWDQWO\ JDYH XS KDOI RI KLV 7LQGHU RSWLRQV WR 'HIHQGDQWV

 ,Q 6HSWHPEHU  'HIHQGDQWV VHWWOHG :ROIH¶V ODZVXLW DJDLQVW 7LQGHU 0DWFK DQG

,$& ZLWKRXW DQ\ DGPLVVLRQ RI ZURQJGRLQJ

9,,, 'HIHQGDQWV 'HPRWH 5DG²$QG 7KHQ 5HLQVWDWH +LP $V &(2 )LYH 0RQWKV /DWHU

 %\ 1RYHPEHU  7LQGHU KDG PRUH WKDQ  PLOOLRQ UHJLVWHUHG XVHUV DQG DOPRVW

 PLOOLRQ GDLO\ DFWLYH XVHUV ,Q WKH VSDQ RI RQO\ WZR \HDUV 5DG 0DWHHQ DQG %DGHHQ DV FR

IRXQGHUV DORQJ ZLWK WKH 7LQGHU WHDP FUHDWHG EXLOW DQG OHG RQH RI WKH IDVWHVW JURZLQJ WHFK

FRPSDQLHV HYHU

 'HVSLWH WKLV UHFRUG LQ ODWH  6DP <DJDQ WKHQ WKH &(2 RI 0DWFK LQIRUPHG

5DG WKDW 'HIHQGDQWV QR ORQJHU ZDQWHG 5DG WR VHUYH DV 7LQGHU¶V &(2 'HIHQGDQWV QRZ VDLG WKDW

5DG ODFNHG DGHTXDWH H[SHULHQFH WR FRQWLQXH DV &(2

 5DG DJUHHG WR VHUYH DV &(2 XQWLO 'HIHQGDQWV IRXQG D VXLWDEOH UHSODFHPHQW )RU

ILYH PRQWKV ,$& DQG 0DWFK VHDUFKHG XQVXFFHVVIXOO\ IRU D UHSODFHPHQW &(2 $OO WKH ZKLOH 5DG

UHPDLQHG FRPPLWWHG WR VXSSRUWLQJ KLV HPSOR\HHV DQG QXUWXULQJ WKH FRPSDQ\ KH KDG IRXQGHG

8QGHU 5DG¶V OHDGHUVKLS 7LQGHU FRQWLQXHG WR JURZ %\ PLG0DUFK  7LQGHU KDG DOPRVW 

PLOOLRQ PRQWKO\ DFWLYH XVHUV

 'XULQJ WKLV SHULRG 7LQGHU DOVR GHYHORSHG DQG ODXQFKHG LQFUHGLEO\ VXFFHVVIXO

UHYHQXH IHDWXUHV )RU H[DPSOH 5DG DQG %DGHHQ GHYHORSHG D SDLG VXEVFULSWLRQ RSWLRQ WR DOORZ

XQOLPLWHG VZLSLQJ 7KLV IHDWXUH ODXQFKHG LQ  WR LPPHGLDWH VXFFHVV ,W KDV EHHQ D PDLQVWD\

RI 7LQGHU¶V UHYHQXH DQG SURILW VWUDWHJ\ HYHU VLQFH

 ,Q 0DUFK  'HIHQGDQWV KLUHG IRUPHU H%D\ H[HFXWLYH &KULV 3D\QH WR VHUYH DV

7LQGHU¶V QHZ &(2 5DG DJUHHG WR VWHS GRZQ WDNH WKH QHZ WLWOH RI ³3UHVLGHQW´ UHPDLQ RQ 7LQGHU¶V

%RDUG RI 'LUHFWRUV DQG IRFXV GD\WRGD\ RQ SURGXFW GHYHORSPHQW

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 28 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 3D\QH¶V WHQXUH DV &(2 ZDV VKRUWOLYHG +LV PDQDJHPHQW VW\OH FODVKHG ZLWK 7LQGHU

HPSOR\HHV DQG WKH FRPSDQ\ VWUXJJOHG ,Q $XJXVW  DIWHU RQO\ ILYH PRQWKV 'HIHQGDQWV ILUHG

3D\QH DQG DVNHG 5DG WR UHVXPH KLV UROH DV &(2

,; ,Q  'HIHQGDQWV 9DOXH 7LQGHU $W  %LOOLRQ

 $V 7LQGHU¶V VXFFHVV FRQWLQXHG 5DG ZDQWHG WR JLYH WKH FRPSDQ\¶V KDUGZRUNLQJ

WHDP DQ RSSRUWXQLW\ WR SDUWLFLSDWH LQ 7LQGHU¶V VXFFHVV 7KH $JUHHPHQWV LQFOXGHG D SURYLVLRQ

DOORZLQJ 7LQGHU¶V IRXQGHUV WR VHOO VRPH RI WKHLU RSWLRQV WR RXWVLGH LQYHVWRUV LQ D VRFDOOHG

VHFRQGDU\ VDOH 5DG GLG QRW ZDQW WR WDNH DGYDQWDJH RI WKDW RSSRUWXQLW\ XQOHVV LW ZDV H[WHQGHG WR

DOO 7LQGHU HPSOR\HHV 5DG DVNHG 'HIHQGDQWV WR SHUPLW DOO RI 7LQGHU¶V YHVWHG RSWLRQKROGHUV WR

SDUWLFLSDWH LQ D VHFRQGDU\ VDOH DQG 'HIHQGDQWV DJUHHG

 ,QYHVWRUV ZKR ZDQWHG WR EX\ 7LQGHU VWRFN RSWLRQV LQ D VHFRQGDU\ VDOH ZRXOG SD\

RSWLRQKROGHUV GLUHFWO\ WR DFTXLUH WKHLU RSWLRQV 7R VHW D SULFH RQ WKRVH RSWLRQV LQ VXFK D VDOH

RXWVLGH LQYHVWRUV ZRXOG KDYH WR GHWHUPLQH WKH YDOXH WKH\ DVVLJQHG WR 7LQGHU DV D ZKROH²LQ RWKHU

ZRUGV WKH YDOXH WKH\ EHOLHYHG 7LQGHU ZRXOG FRPPDQG LI LW ZHUH D SXEOLFO\ WUDGHG FRPSDQ\²DQG

XVH WKDW YDOXH WR GHWHUPLQH ZKDW DQ LQGLYLGXDO 7LQGHU RSWLRQ ZDV ZRUWK

 7KH 7LQGHU IRXQGHUV VROLFLWHG RIIHUV IURP VHYHUDO SURPLQHQW RXWVLGH LQYHVWRUV WR

SXUFKDVH RSWLRQV IURP DOO WKH 7LQGHU 3ODLQWLIIV DQG RWKHU RSWLRQKROGHUV 6HYHUDO LQYHVWRUV RIIHUHG

WR SXUFKDVH RSWLRQV DW YDOXDWLRQV RI 7LQGHU RI  ELOOLRQ DQG DERYH

 'HIHQGDQWV UHIXVHG WR SHUPLW D VHFRQGDU\ VDOH ,QVWHDG WKH\ RIIHUHG WR EX\ EDFN

RSWLRQV GLUHFWO\ IURP 7LQGHU RSWLRQKROGHUV²EXW ZLWK D FDWFK (LWKHU 0DWFK ZRXOG RIIHU DOO

RSWLRQKROGHUV²LQFOXGLQJ 5DG DQG 0DWHHQ²WKH RSSRUWXQLW\ WR VHOO WKHLU RSWLRQV DW D YDOXDWLRQ RI

 ELOOLRQ RU 0DWFK ZRXOG RIIHU DOO HPSOR\HHV²H[FHSW 5DG DQG 0DWHHQ²WKH VDPH

RSSRUWXQLW\ DW D  ELOOLRQ YDOXDWLRQ ,Q RWKHU ZRUGV 'HIHQGDQWV IRUFHG 5DG DQG 0DWHHQ WR FKRRVH

EHWZHHQ WKHLU RZQ LQWHUHVWV DQG WKH LQWHUHVWV RI WKH 7LQGHU WHDP

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 29 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 5DG DQG 0DWHHQ SXW WKH 7LQGHU WHDP ILUVW 'HIHQGDQWV DOORZHG DOO YHVWHG

RSWLRQKROGHUV H[FHSW 5DG DQG 0DWHHQ WR H[HUFLVH WKHLU RSWLRQV DW D  ELOOLRQ YDOXDWLRQ

; ,Q  'HIHQGDQWV )RUFH $ /RZEDOO  %LOOLRQ 9DOXDWLRQ

 2Q 1RYHPEHU   0DWFK KHOG DQ LQLWLDO SXEOLF RIIHULQJ ³,32´ IRU LWV VWRFN

0DWFK UDLVHG RYHU  PLOOLRQ WKDW ILUVW GD\ 2Q LQIRUPDWLRQ DQG EHOLHI 7LQGHU ZDV E\ IDU WKH

PRVW LPSRUWDQW DQG IDVWHVWJURZLQJ FRPSDQ\ LQ 0DWFK¶V SRUWIROLR ,Q IDFW PXFK RI WKH SUHVV

UHSRUWHG 0DWFK¶V ,32 ZLWK D KHDGOLQH H[SODLQLQJ WKDW ³7LQGHU¶V SDUHQW FRPSDQ\´ ZDV JRLQJ

SXEOLF

 $ZDUH RI WKH VLJQLILFDQW UROH 7LQGHU KDG SOD\HG LQ 0DWFK¶V ,32 7LQGHU HPSOR\HHV

ZDQWHG DQ RSSRUWXQLW\ WR UHDOL]H VRPH RI WKH YDOXH WKH\ KDG FUHDWHG ,Q PLG 5DG SURSRVHG

WR %ODWW WKDW 7LQGHU LQVWLWXWH D 'LVFUHWLRQDU\ 3XW DOORZLQJ HYHU\ RSWLRQKROGHU WKH RSSRUWXQLW\ WR

H[HUFLVH KLV RU KHU YHVWHG RSWLRQV 7KH ILUVW 6FKHGXOHG 3XW LQ 0D\  ZDV RQH \HDU DZD\ DQG

5DG EHOLHYHG WKDW WKH 7LQGHU WHDP GHVHUYHG DQ HDUOLHU RSSRUWXQLW\ WR UHFHLYH PRQH\ IRU WKH YDOXH

WKH\ KDG FUHDWHG

 $OWKRXJK %ODWW DJUHHG WR SHUPLW WKH 'LVFUHWLRQDU\ 3XW KH UHIXVHG WR IROORZ WKH

$JUHHPHQWV WR VHW WKH YDOXH RI 7LQGHU %ODWW ZRXOG DOORZ WKH 'LVFUHWLRQDU\ 3XW WR JR IRUZDUG RQO\

LI WKH YDOXDWLRQ RI 7LQGHU ZDV GHWHUPLQHG E\ DYHUDJLQJ WKH YDOXDWLRQV LQ RXWVLGH ILQDQFLDO DQDO\VW

UHSRUWV WKDW %ODWW KLPVHOI VHOHFWHG 7KRVH KDQGSLFNHG UHSRUWV GLG QRW DFFXUDWHO\ UHIOHFW WKH YDOXH

RI WKH FRPSDQ\ DQG ODFNHG PDWHULDO LQIRUPDWLRQ DERXW 7LQGHU

 5DG WROG %ODWW WKH DQDO\VW UHSRUWV XQGHUYDOXHG 7LQGHU EXW %ODWW LQVLVWHG RQ XVLQJ

WKHP $YHUDJLQJ WKRVH UHSRUWV %ODWW DVVLJQHG 7LQGHU WKH ORZEDOO YDOXDWLRQ RI DSSUR[LPDWHO\ 

ELOOLRQ IRU WKH 'LVFUHWLRQDU\ 3XW²HYHQ WKRXJK 'HIHQGDQWV WKHPVHOYHV KDG YDOXHG 7LQGHU DW 

ELOOLRQ RQH \HDU HDUOLHU ZKHQ LW ZDV PXFK VPDOOHU DQG IDU OHVV SURILWDEOH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 30 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 %HFDXVH KH EHOLHYHG WKDW %ODWW¶V YDOXDWLRQ ZDV IDU WRR ORZ 5DG WROG 7LQGHU

HPSOR\HHV WKDW KH ZDV QRW H[HUFLVLQJ KLV RZQ RSWLRQV DQG XUJHG WKHP QRW WR H[HUFLVH 5DG DQG

RWKHU H[HFXWLYHV WROG 7LQGHU HPSOR\HHV WKH\ VKRXOG ZDLW XQWLO WKH 0D\  6FKHGXOHG 3XW ZKHQ

WKH $JUHHPHQWV UHTXLUHG DQ LQGHSHQGHQW YDOXDWLRQ RI WKH FRPSDQ\ UDWKHU WKDQ WKH YDOXDWLRQ %ODWW

KDG PDQXIDFWXUHG

;, 'HIHQGDQWV +LMDFN 7LQGHU $QG 7KH 9DOXDWLRQ 3URFHVV

 )URP WKH VWDUW 'HIHQGDQWV VFKHPHG WR XQGHUPLQH WKH 0D\  6FKHGXOHG 3XW

 8QGHU WKH $JUHHPHQWV 7LQGHU PDQDJHPHQW QRW ,$& RU 0DWFK ZRXOG FRQWURO WKH

LQIRUPDWLRQ WKDW ZRXOG GHWHUPLQH 7LQGHU¶V YDOXDWLRQ 7KLV PHDQW WKDW DEVHQW D PDQDJHPHQW

FKDQJH 7LQGHU &(2 6HDQ 5DG ZRXOG RYHUVHH WKH YDOXDWLRQ

 7KH $JUHHPHQWV UHIOHFWHG D FOHDU DQG FRPPRQVHQVH DOLJQPHQW RI LQWHUHVWV

EHWZHHQ 7LQGHU 7LQGHU PDQDJHPHQW DQG DOO RI 7LQGHU¶V HPSOR\HHV 8QGHU WKH $JUHHPHQWV

7LQGHU ZDV WKH FRPSDQ\ EHLQJ YDOXHG DQG 7LQGHU PDQDJHPHQW ZDV UHVSRQVLEOH IRU SURYLGLQJ WKH

LQIRUPDWLRQ WKDW ZRXOG GHWHUPLQH 7LQGHU¶V YDOXH 7KH YDOXDWLRQ ZRXOG GHFLGH KRZ PXFK

FRPSHQVDWLRQ 7LQGHU RSWLRQKROGHUV ZRXOG HDUQ $Q DFFXUDWH YDOXDWLRQ ZRXOG EHQHILW 7LQGHU LWVHOI

PDNLQJ LW HDVLHU WR UHFUXLW WKH PRVW WDOHQWHG HPSOR\HHV JHQHUDWH SRVLWLYH PHGLD DWWHQWLRQ DQG

DWWUDFW RXWVLGH LQYHVWRUV 7LQGHU DV D FRPSDQ\ LWV RSWLRQKROGHUV DQG LWV HPSOR\HHV VKDUHG WKH

VDPH JRDO LQ WKH YDOXDWLRQ SURFHVV²WR HQVXUH 7LQGHU ZDV YDOXHG DFFXUDWHO\

 'HIHQGDQWV LQ FRQWUDVW KDG D FOHDU LQFHQWLYH WR XQGHUYDOXH 7LQGHU 'HIHQGDQWV

ZHUH UHVSRQVLEOH IRU SD\LQJ WKH ELOO ZKHQ WKH 7LQGHU 3ODLQWLIIV DQG RWKHU RSWLRQKROGHUV H[HUFLVHG

WKHLU RSWLRQV 7KH JUHDWHU WKH YDOXH DVVLJQHG WR 7LQGHU LQ WKH YDOXDWLRQ SURFHVV WKH PRUH LW ZRXOG

FRVW 'HIHQGDQWV WR FRPSHQVDWH 7LQGHU RSWLRQKROGHUV %XW LI 'HIHQGDQWV FRXOG GHYDOXH WKH 7LQGHU

3ODLQWLIIV¶ RSWLRQV DQG HOLPLQDWH WKHLU ULJKW WR SDUWLFLSDWH LQ WKH IXWXUH XSVLGH RI WKH FRPSDQ\

'HIHQGDQWV FRXOG VDYH WKHPVHOYHV ELOOLRQV RI GROODUV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 31 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 %\ WKH HQG RI  WKH GHFLVLRQ WR UHLQVWDWH 5DG DV &(2 WKH \HDU EHIRUH KDG SDLG

HQRUPRXV GLYLGHQGV 5DG¶V VHFRQG WHQXUH DV &(2 ZDV DQRWKHU EDQQHU SHULRG IRU 7LQGHU %\ WKH

HQG RI  7LQGHU LQFUHDVHG UHYHQXHV WR RYHU  PLOOLRQ ZLWK UHYHQXHV IRUHFDVWHG WR UHDFK

RYHU  PLOOLRQ LQ  7LQGHU¶V UHYHQXH DQG SURILWDELOLW\ E\ WKLV WLPH KDG JURZQ IDVWHU WKDQ

SHUKDSV DQ\ RWKHU WHFK FRPSDQ\ LQ KLVWRU\

 7LQGHU DOVR KLUHG VHYHUDO VNLOOHG DQG H[SHULHQFHG H[HFXWLYHV WR H[SDQG WKH 7LQGHU

H[HFXWLYH WHDP LQFOXGLQJ VHDVRQHG H[HFXWLYHV LQ HQJLQHHULQJ PDQDJHPHQW DQG ILQDQFH UROHV

2QH VXFK H[HFXWLYH -DPHV .LP KDG ZRUNHG LQ WKH ILQDQFH DQG DFFRXQWLQJ GHSDUWPHQWV RI VHYHUDO

ILQDQFH DQG WHFK FRPSDQLHV LQ /RV $QJHOHV .LP MRLQHG 7LQGHU LQ )HEUXDU\  DV WKH 9LFH

3UHVLGHQW RI )LQDQFH D UROH KH VWLOO KROGV WRGD\

 $OWKRXJK 5DG ZDV OHDGLQJ 7LQGHU WR UHFRUG JURZWK 'HIHQGDQWV GHFLGHG WR UHPRYH

KLP DV &(2 LQ RUGHU WR H[HFXWH WKHLU VFKHPH WR GHSULYH WKH 7LQGHU 3ODLQWLIIV RI WKHLU ULJKWV :LWK

5DG DW WKH KHOP 7LQGHU ZRXOG XVH WUXWKIXO DQG DFFXUDWH LQIRUPDWLRQ DERXW WKH FRPSDQ\¶V ILQDQFLDO

SURVSHFWV DQG 7LQGHU ZRXOG EH DVVLJQHG D YDOXH FRQVLVWHQW ZLWK LWV PHWHRULF JURZWK SURILOH %XW

LI 'HIHQGDQWV FRXOG KLMDFN 7LQGHU WKH\ FRXOG H[HFXWH WKHLU VFKHPH

 'HIHQGDQWV LPSOHPHQWHG WKHLU WDNHRYHU RI 7LQGHU RQ 'HFHPEHU   ZKHQ WKH\

LQVWDOOHG %ODWW²0DWFK¶V &KDLUPDQ DQG &(2²DV ³LQWHULP´ &(2 RI 7LQGHU ,Q IXUWKHUDQFH RI WKHLU

VFKHPH 'HIHQGDQWV DOVR LQVHUWHG DW OHDVW WZR RWKHU 0DWFK DQG ,$& H[HFXWLYHV LQWR 7LQGHU¶V

RSHUDWLRQV *DU\ 6ZLGOHU DQG $PDUQDWK 7KRPEUH 6ZLGOHU 0DWFK¶V &KLHI )LQDQFLDO 2IILFHU

ZRUNHG IURP ,$&¶V KHDGTXDUWHUV LQ 1HZ <RUN 7KRPEUH WKHQ 0DWFK¶V &KLHI 6WUDWHJ\ 2IILFHU

ZDV HPEHGGHG LQ 7LQGHU¶V ILQDQFH GHSDUWPHQW LQ /RV $QJHOHV 7KH UHDVRQ IRU WKHVH PDQDJHPHQW

FKDQJHV ZDV FOHDU WR DOORZ 'HIHQGDQWV WR FRQWURO DQG XQGHUPLQH 7LQGHU¶V YDOXDWLRQ

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 32 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 2QFH LQVWDOOHG DV ³LQWHULP´ &(2 RI 7LQGHU %ODWW GLVSOD\HG KLV LQIDPRXV

PDQDJHPHQW VW\OH²URXWLQHO\ EXOO\LQJ DQG GHJUDGLQJ HPSOR\HHV %ODWW KDG D YROFDQLF WHPSHU

DQG KH FUHDWHG DQG H[SORLWHG D FOLPDWH RI IHDU LQ ZKLFK HPSOR\HHV ZHUH DIUDLG WR WHOO WKH WUXWK

%ODWW DOVR EDQQHG 5DG WKH FRPSDQ\¶V IRXQGHU DQG OHDGHU IURP 7LQGHU¶V KHDGTXDUWHUV

 'HIHQGDQWV¶ FRQIOLFW RI LQWHUHVW ZDV JODULQJ $V 7LQGHU¶V &(2 %ODWW KDG D GXW\ WR

FRPSO\ ZLWK WKH $JUHHPHQWV DQG WR DGYDQFH WKH EHVW LQWHUHVWV RI WKH 7LQGHU 3ODLQWLIIV DQG RWKHU

7LQGHU RSWLRQKROGHUV %XW %ODWW OR\DO RQO\ WR 'HIHQGDQWV YLRODWHG WKDW GXW\ 2Q LQIRUPDWLRQ DQG

EHOLHI %ODWW KHOG VLJQLILFDQW RSWLRQV DQGRU HTXLW\ LQ 0DWFK DQGRU ,$& PHDQLQJ WKH OHVV

'HIHQGDQWV KDG WR SD\ WKH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU RSWLRQKROGHUV WKH PRUH YDOXDEOH

%ODWW¶V 0DWFK DQGRU ,$& HTXLW\ ZRXOG EH

;,, 'HIHQGDQWV 7U\ 7R &LUFXPYHQW 7KH $JUHHPHQWV

 ,Q HDUO\  %ODWW DWWHPSWHG WR NLOO WKH XSFRPLQJ  6FKHGXOHG 3XW %HFDXVH

'HIHQGDQWV GLG QRW ZDQW DQ DFFXUDWH YDOXDWLRQ RI 7LQGHU WKH\ SURSRVHG WR YDOXH 7LQGHU RXWVLGH

WKH VWUXFWXUH RI WKH $JUHHPHQWV %ODWW VXJJHVWHG WKDW WKH\ XVH DSSUR[LPDWHO\  ELOOLRQ DV WKH

YDOXDWLRQ

 'HIHQGDQWV¶ SURSRVHG  ELOOLRQ YDOXDWLRQ ZDV D VKDP 7ZR \HDUV HDUOLHU

'HIHQGDQWV KDG DJUHHG WR YDOXH 7LQGHU DW  ELOOLRQ DQG RXWVLGH LQYHVWRUV KDG H[SUHVVHG LQWHUHVW

LQ EX\LQJ 7LQGHU RSWLRQV DW HYHQ KLJKHU YDOXDWLRQV ,Q  7LQGHU KDG DSSUR[LPDWHO\  PLOOLRQ

PRQWKO\ DFWLYH XVHUV DQG HDUQHG DOPRVW  PLOOLRQ LQ UHYHQXH %\  7LQGHU KDG H[SORGHG

OLNH D URFNHW VKLS ,Q $SULO  7LQGHU KDG PRUH WKDQ  PLOOLRQ PRQWKO\ DFWLYH XVHUV $QG

7LQGHU ZDV SURMHFWLQJ DQG ZRXOG DFKLHYH  UHYHQXH RI DSSUR[LPDWHO\  PLOOLRQ²

DSSUR[LPDWHO\  KLJKHU WKDQ LWV  UHYHQXH <HW 'HIHQGDQWV SUHVVHG IRU D ORZHU YDOXDWLRQ

WKDQ LW KDG DVVLJQHG WZR \HDUV HDUOLHU

 5DG UHMHFWHG 'HIHQGDQWV¶ SURSRVDO DQG UHTXLUHG 7LQGHU WR IROORZ WKH $JUHHPHQWV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 33 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

;,,, 'HIHQGDQWV 8QGHUPLQH 7KH 9DOXDWLRQ 3URFHVV

 'HIHQGDQWV¶ DWWHPSW WR YDOXH 7LQGHU RXWVLGH WKH $JUHHPHQWV IDLOHG :LWK WKH 

6FKHGXOHG 3XW DSSURDFKLQJ 'HIHQGDQWV XQGHUVWRRG WKDW WKH\ ZRXOG QRZ KDYH WR SURYLGH ILQDQFLDO

LQIRUPDWLRQ DERXW 7LQGHU WR YDOXH WKH FRPSDQ\ 'HIHQGDQWV KDG WZR FKRLFHV WKH\ FRXOG SURYLGH

WUXWKIXO LQIRUPDWLRQ WR IDFLOLWDWH DQ DFFXUDWH YDOXDWLRQ RU WKH\ FRXOG SURYLGH IDOVH DQG LQFRPSOHWH

LQIRUPDWLRQ WR XQGHUPLQH DQ DFFXUDWH YDOXDWLRQ

 'HIHQGDQWV FKRVH WKH ODWWHU )URP DSSUR[LPDWHO\ $SULO  XQWLO -XO\ 

'HIHQGDQWV NQRZLQJO\ DQG ZLOOIXOO\ FUHDWHG IDOVH PLVOHDGLQJ DQG LQFRPSOHWH LQIRUPDWLRQ DERXW

7LQGHU¶V ILQDQFLDO SHUIRUPDQFH DQG SURMHFWHG JURZWK 7KH IDOVH ILQDQFLDO SLFWXUH PDQXIDFWXUHG E\

'HIHQGDQWV ZDV GLUHFWO\ FRQWUDGLFWHG E\ WUXWKIXO ILQDQFLDO LQIRUPDWLRQ DQG GDWD ZLWKLQ 'HIHQGDQWV¶

NQRZOHGJH DQG FRQWURO %XW 'HIHQGDQWV VXSSUHVVHG WKLV LQIRUPDWLRQ DQG WKUHDWHQHG WR ILUH 7LQGHU

HPSOR\HHV LI WKH\ DWWHPSWHG WR WHOO WKH WUXWK RU RWKHUZLVH LQWHUIHUH ZLWK 'HIHQGDQWV¶ VFKHPH %ODWW

LQ SDUWLFXODU EXOOLHG DQG LQWLPLGDWHG 7LQGHU H[HFXWLYHV DQG PDQDJHPHQW WR VLOHQFH WKHP %ODWW DQG

RWKHU HPEHGGHG 0DWFK H[HFXWLYHV VXFK DV 7KRPEUH DOVR SUHVVXUHG 7LQGHU¶V ILQDQFH WHDP WR DGRSW

DVVXPSWLRQV DQG SURMHFWLRQV WKDW 'HIHQGDQWV NQHZ WR EH LQFRUUHFW

 'XULQJ WKH YDOXDWLRQ SURFHVV LW ZDV DJUHHG WKDW 7LQGHU ZRXOG EH YDOXHG EDVHG RQ

LWV SUHVHQW DQG SURMHFWHG ILQDQFLDO SHUIRUPDQFH WKURXJK  7R FDUU\ RXW WKHLU VFKHPH

'HIHQGDQWV PDQXIDFWXUHG IDOVH PLVOHDGLQJ DQG LQFRPSOHWH ILQDQFLDO LQIRUPDWLRQ DERXW 7LQGHU¶V

IXWXUH UHYHQXHV H[SHQVHV DQG JURZWK UDWH DQG KLG WKH LPSDFW RI QHZ SURGXFWV DQG IHDWXUHV

 ,Q SDUWLFXODU 'HIHQGDQWV PDQLSXODWHG WKH SURMHFWLRQV RI 7LQGHU¶V UHYHQXH LQ 

DQG VXEVHTXHQW \HDUV E\ IRU H[DPSOH DVVLJQLQJ RQO\ OLPLWHG LQFUHPHQWDO UHYHQXH ERRVWV WR

IRUWKFRPLQJ QHZ SURGXFWV 'HIHQGDQWV DOVR LQIODWHG²ZLWKRXW DQ\ EDVLV LQ UHDOLW\²7LQGHU¶V

H[SHQVHV LQ VHYHUDO FDWHJRULHV LQFOXGLQJ LWV PDUNHWLQJ EXGJHW

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 34 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 7LQGHU¶V JURZWK UDWH DOZD\V KDG EHHQ H[WUDRUGLQDU\ DQG WKH FRPSDQ\¶V QHZ

SURGXFWV DQG IHDWXUHV PDGH FHUWDLQ WKDW LWV KLVWRULF PRPHQWXP ZRXOG FRQWLQXH DQG LQFUHDVH %XW

'HIHQGDQWV FUHDWHG WKH LOOXVLRQ WKDW 7LQGHU ZDV KHDGHG IRU VWDJQDWLRQ 7KH\ FRQFHDOHG PDWHULDO

LQIRUPDWLRQ DERXW 7LQGHU¶V QHZ SURGXFWV DQG SURMHFWHG WKDW 7LQGHU¶V UHYHQXH JURZWK UDWH ZRXOG

FROODSVH E\ PRUH WKDQ  RYHU WKH QH[W ILYH \HDUV $QG 'HIHQGDQWV IDOVHO\ SURMHFWHG WKDW WKH

JURZWK UDWH RI 7LQGHU¶V SURILWV ZRXOG DOVR SOXPPHW

 'HIHQGDQWV KLG WKH LPSDFW RI QHZ SURGXFWV DQG IHDWXUHV WKDW 7LQGHU NQHZ ZRXOG

SURSHO WKH FRPSDQ\ WR HYHQ IDVWHU JURZWK

D 7LQGHU *ROG %\ WKH WLPH WKH YDOXDWLRQ SURFHVV ZDV XQGHUZD\ 7LQGHU

DOUHDG\ NQHZ WKDW D QHZ VXEVFULSWLRQ SURGXFW 7LQGHU *ROG ZRXOG

VXSHUFKDUJH 7LQGHU¶V HDUQLQJV ZKHQ LW ODXQFKHG ZRUOGZLGH %XW

'HIHQGDQWV FODLPHG WKDW 7LQGHU *ROG ZDV ULVN\ DQG XQGHUVWDWHG WKH LPSDFW

LW ZRXOG KDYH RQ UHYHQXH 2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV HYHQ

GHOD\HG WKH GHVLJQ DQG ZRUOGZLGH ODXQFK RI 7LQGHU *ROG VR WKDW LWV

HQRUPRXV YDOXH WR 7LQGHU ZRXOG QRW DSSHDU LQ 7LQGHU¶V ILQDQFLDOV XQWLO DIWHU

WKH YDOXDWLRQ HQGHG²VXEMHFWLQJ LW WR XQXVXDOO\ KHDY\ VFUXWLQ\ GHPDQGLQJ

XQQHFHVVDU\ DQG H[FHVVLYH WHVWLQJ SRVWSRQLQJ GHDGOLQHV DQG ODXQFK JRDOV

DQG PDNLQJ RWKHU GHFLVLRQV WR GHOD\ WKH ODXQFK

E 606 $XWKHQWLFDWLRQ 7LQGHU KDG GHYHORSHG D QHZ IHDWXUH WKDW ZRXOG

DOORZ QHZ XVHUV WR UHJLVWHU IRU WKH DSS DQG DXWKHQWLFDWH WKHLU LGHQWLW\ E\

UHFHLYLQJ WH[W PHVVDJHV VRPHWLPHV FDOOHG ³6KRUW 0HVVDJH 6HUYLFH´ RU

³606´ PHVVDJHV WR WKHLU FHOOSKRQHV 'HIHQGDQWV UHSUHVHQWHG WKDW 606

DXWKHQWLFDWLRQ ZRXOG KDYH RQO\ D VPDOO HIIHFW RQ QHZ UHJLVWUDWLRQV %XW

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 35 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

H[LVWLQJ GDWD DOUHDG\ FRQILUPHG WKDW 606 DXWKHQWLFDWLRQ ZRXOG GULYH D KXJH

LQFUHDVH LQ QHZ UHJLVWUDWLRQV²SRWHQWLDOO\ DV KLJK DV  ,Q IDFW DIWHU

WKH YDOXDWLRQ SURFHVV EHJDQ 7LQGHU ODXQFKHG 606 DXWKHQWLFDWLRQ LQ VRPH

PDUNHWV DURXQG WKH ZRUOG DQG VDZ WZLFH DV PDQ\ QHZ XVHUV UHJLVWHU ZLWK

606 DXWKHQWLFDWLRQ WKDQ 'HIHQGDQWV KDG SURMHFWHG 7LQGHU¶V SD\LQJ

VXEVFULEHU EDVH DOUHDG\ KDG LQFUHDVHG D ZKRSSLQJ  DERYH 'HIHQGDQWV¶

LQLWLDO ILFWLWLRXV HVWLPDWHV

 ,Q IXUWKHUDQFH RI WKHLU VFKHPH 'HIHQGDQWV DOVR FRQFHDOHG WUXH ILQDQFLDO

LQIRUPDWLRQ WKDW GLUHFWO\ FRQWUDGLFWHG WKHLU IDEULFDWHG ILQDQFLDO SLFWXUH RI 7LQGHU ,Q -XO\ 

7LQGHU XSGDWHG LWV LQWHUQDO SURMHFWLRQV LQ WKH RUGLQDU\ FRXUVH RI EXVLQHVV 7KH XSGDWHG IRUHFDVW

UHIOHFWHG VLJQLILFDQW GRFXPHQWHG JDLQV LQ UHYHQXH DQG SURILW ERRVWLQJ 7LQGHU¶V SURMHFWHG ILQDQFLDO

SHUIRUPDQFH IRU  E\ D ODUJH PDUJLQ 7KH IRUHFDVW FRQILUPHG WKDW 7LQGHU ZRXOG VLJQLILFDQWO\

RXWSHUIRUP 'HIHQGDQWV¶ IDOVH ILQDQFLDO SURMHFWLRQV EDVHG RQ H[LVWLQJ EXVLQHVV WUHQGV DORQH

'HIHQGDQWV KLG WKH XSGDWHG IRUHFDVW GXULQJ WKH YDOXDWLRQ SURFHVV²JRLQJ VR IDU DV WR VD\ WKDW LW GLG

QRW HYHQ H[LVW

;,9 'HIHQGDQWV &RYHU 8S :RUNSODFH 0LVFRQGXFW

 :LWK 'HIHQGDQWV LQ FRQWURO RI 7LQGHU WKURXJKRXW WKH YDOXDWLRQ RI WKH FRPSDQ\

'HIHQGDQWV ZHUH SRLVHG WR VXFFHVVIXOO\ H[HFXWH WKHLU VFKHPH %XW XQEHNQRZQVW WR PRVW SHRSOH

HYHQWV WKDW WRRN SODFH LQ 'HFHPEHU  WKUHDWHQHG WR GHUDLO WKH VFKHPH

 $W 7LQGHU¶V 'HFHPEHU  KROLGD\ SDUW\ LQ /RV $QJHOHV %ODWW ZKR KDG MXVW WDNHQ

RYHU DV 7LQGHU¶V ³LQWHULP´ &(2 JURSHG DQG VH[XDOO\ KDUDVVHG 5RVHWWH 3DPEDNLDQ 7LQGHU¶V 9LFH

3UHVLGHQW RI 0DUNHWLQJ DQG &RPPXQLFDWLRQV

 ,Q PLG 5DG OHDUQHG DERXW WKHVH HYHQWV 5DG DVNHG 3DPEDNLDQ DERXW WKHP

DQG VKH FRQILUPHG WKDW %ODWW KDG JURSHG DQG VH[XDOO\ KDUDVVHG KHU ZLWK FROOHDJXHV SUHVHQW

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 36 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 5DG LPPHGLDWHO\ UHSRUWHG %ODWW¶V FRQGXFW WR 0DWFK¶V *HQHUDO &RXQVHO -DUHG 6LQH

DQG GHPDQGHG WKDW 7LQGHU FRPPLVVLRQ DQ LQGHSHQGHQW LQYHVWLJDWLRQ

 6LQH LQIRUPHG 5DG WKDW WKH 0DWFK %RDUG RI 'LUHFWRUV²RI ZKLFK %ODWW ZDV

&KDLUPDQ²ZRXOG UXQ LWV RZQ LQYHVWLJDWLRQ LQVWHDG 'HIHQGDQWV SODFHG 6LQH DQG WKH KHDG RI

0DWFK¶V +XPDQ 5HVRXUFHV 'HSDUWPHQW /LVD 1HOVRQ²ZKR KDG ZRUNHG IRU %ODWW IRU PRUH WKDQ 

\HDUV²DW WKH KHDG RI WKH ³LQYHVWLJDWLRQ´ 2Q LQIRUPDWLRQ DQG EHOLHI ,$& *HQHUDO &RXQVHO *UHJJ

:LQLDUVNL DOVR ZDV DZDUH RI WKLV ³LQYHVWLJDWLRQ´ DQG LQFOXGHG RQ FRUUHVSRQGHQFH UHODWHG WR LW

0HDQZKLOH %ODWW UHPDLQHG DW WKH KHOP RI 7LQGHU DV LWV ³LQWHULP´ &(2

 %HOLHYLQJ WKDW FUHGLEOH DOOHJDWLRQV RI ZRUNSODFH PLVFRQGXFW DJDLQVW LWV &(2

WKUHDWHQHG 7LQGHU DQG VKRXOG EH LQGHSHQGHQWO\ LQYHVWLJDWHG 5DG SUHVVHG IRU D PHHWLQJ RI 7LQGHU¶V

%RDUG RI 'LUHFWRUV 'HIHQGDQWV UHIXVHG DQG FRYHUHG XS %ODWW¶V FRQGXFW LQVWHDG 'HIHQGDQWV HYHQ

DOORZHG %ODWW WR FRQWDFW 3DPEDNLDQ DQG RQH RI WKH H\HZLWQHVVHV GLUHFWO\ ZKRP %ODWW WKHQ

SUHVVXUHG WR FRQFHDO KLV PLVFRQGXFW 2Q LQIRUPDWLRQ DQG EHOLHI %ODWW DOVR PLVOHG ,$& DQG 0DWFK

%RDUG PHPEHUV DERXW WKH DOOHJDWLRQV PDGH DJDLQVW KLP 2Q LQIRUPDWLRQ DQG EHOLHI EDVHG RQ

VWDWHPHQWV PDGH E\ D IRUPHU ,$& FRPPXQLFDWLRQV H[HFXWLYH 0DWFK KDG SUHYLRXVO\ FRQFHDOHG

RWKHU VH[XDO PLVFRQGXFW DOOHJDWLRQV WKURXJK FRQILGHQWLDO SD\RIIV DQG VHWWOHPHQWV

 2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV FRYHUHG XS %ODWW¶V PLVFRQGXFW LQ SDUW

EHFDXVH KH ZDV HVVHQWLDO WR WKH H[HFXWLRQ RI 'HIHQGDQWV¶ VFKHPH WR GHSULYH WKH 7LQGHU 3ODLQWLIIV

RI WKHLU ULJKWV DV RSWLRQKROGHUV²DQG WR VDYH 'HIHQGDQWV ELOOLRQV RI GROODUV LQ WKH SURFHVV

;9 'HIHQGDQWV 9DOXH 7LQGHU $W  %LOOLRQ

 2Q -XO\   'HIHQGDQWV YDOXHG 7LQGHU DW DSSUR[LPDWHO\  ELOOLRQ 7KDW

YDOXDWLRQ ZDV EDVHG RQ DQ DYHUDJH RI WKH YDOXDWLRQV VXEPLWWHG E\ WKH EDQNV 7KRVH YDOXDWLRQV

UHOLHG RQ ILQDQFLDO LQIRUPDWLRQ SURYLGHG E\ 'HIHQGDQWV $V D SULYDWH FRPSDQ\ 7LQGHU GLG QRW

LWVHOI SXEOLFO\ UHSRUW ILQDQFLDO LQIRUPDWLRQ 7KH EDQNV EDVHG WKHLU YDOXDWLRQV RQ WKH ILQDQFLDO

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 37 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

LQIRUPDWLRQ SURYLGHG E\ 'HIHQGDQWV GXULQJ WKH SULYDWH YDOXDWLRQ SURFHVV 7KH EDQNV ZHUH HQWLWOHG

WR UHO\ XSRQ WKH DFFXUDF\ DQG FRPSOHWHQHVV RI DOO LQIRUPDWLRQ 'HIHQGDQWV VXEPLWWHG DQG WR UHO\

H[FOXVLYHO\ RQ WKDW LQIRUPDWLRQ 7KH EDQNV ZHUH QRW WDVNHG ZLWK WKH LQGHSHQGHQW YHULILFDWLRQ RI

DQ\ LQIRUPDWLRQ SURYLGHG E\ 'HIHQGDQWV 7KH 7LQGHU 3ODLQWLIIV XQGHUVWDQG WKDW WKH EDQNV DFWHG

SURIHVVLRQDOO\ DQG GLOLJHQWO\ GXULQJ WKH YDOXDWLRQ SURFHVV 'HIHQGDQWV GLG WKH RSSRVLWH

 'HIHQGDQWV NQHZ WKDW WKH  ELOOLRQ YDOXDWLRQ ZDV D VKDP EDVHG RQ WKHLU ERJXV

QXPEHUV 7LQGHU ZDV LQ WKH PLGVW RI H[SORVLYH XVHU DQG UHYHQXH JURZWK \HW 'HIHQGDQWV¶ YDOXDWLRQ

PHDQW WKH FRPSDQ\ ZDV VWDJQDWLQJ DQG KHDGHG WRZDUG IUHHIDOO 'HIHQGDQWV WKHPVHOYHV KDG YDOXHG

7LQGHU DW  ELOOLRQ WZR \HDUV HDUOLHU ZKHQ WKH FRPSDQ\ ZDV IDU VPDOOHU DQG OHVV SURILWDEOH $V

DOOHJHG EHORZ 7LQGHU FRQWLQXHG LWV G\QDPLF JURZWK LQ ²IXUWKHU FRQILUPLQJ ZLWK REMHFWLYH

SUHFLVLRQ WKH LOOHJLWLPDF\ RI 'HIHQGDQWV¶ ILQDQFLDO SURMHFWLRQV DQG UHVXOWLQJ  ELOOLRQ YDOXDWLRQ

;9, 'HIHQGDQWV 0HUJH 7LQGHU 7R ([WLQJXLVK 7LQGHU 2SWLRQ 5LJKWV

 6RPH RI WKH 7LQGHU 3ODLQWLIIV ZKR OHIW WKH FRPSDQ\ EHIRUH WKH  6FKHGXOHG 3XW

EHJDQ ZHUH FRQWUDFWXDOO\ UHTXLUHG WR H[HUFLVH WKHLU RSWLRQV DW 'HIHQGDQWV¶ LOOHJLWLPDWH  ELOOLRQ

YDOXDWLRQ %XW RWKHU 7LQGHU 3ODLQWLIIV KDG WKH FRQWUDFWXDO ULJKW WR NHHS WKHLU RSWLRQV XQWLO RQH RI

WKH WKUHH UHPDLQLQJ 6FKHGXOHG 3XWV LQ   DQG 

 'HIHQGDQWV ZHUH QRW FRQWHQW RQO\ WR XQGHUPLQH WKH  6FKHGXOHG 3XW²ZKLFK

LWVHOI KDG UREEHG WKH 7LQGHU 3ODLQWLIIV RI ELOOLRQV RI GROODUV E\ ORZEDOOLQJ WKH YDOXDWLRQ RI 7LQGHU

'HIHQGDQWV ZHUH GHWHUPLQHG WR H[WLQJXLVK IRUHYHU WKH 7LQGHU 3ODLQWLIIV¶ ULJKW WR SDUWLFLSDWH LQ WKH

IXWXUH JURZWK RI WKH FRPSDQ\ WKH\ KDG EXLOW 7KURXJK D VHFUHW PHUJHU 'HIHQGDQWV ZRXOG PRYH

WR WHUPLQDWH WKH $JUHHPHQWV DQG HOLPLQDWH WKH 7LQGHU 3ODLQWLIIV¶ RSSRUWXQLW\ WR H[HUFLVH WKHLU

RSWLRQV \HDUV LQ WKH IXWXUH ZKHQ 7LQGHU ZRXOG EH HYHQ PRUH YDOXDEOH

 2QO\ KRXUV DIWHU ILQDOL]LQJ WKHLU  ELOOLRQ YDOXDWLRQ RI 7LQGHU 'HIHQGDQWV PHUJHG

7LQGHU LQWR 0DWFK²D FOHDUO\ SUHPHGLWDWHG DFW 0DWFK¶V %RDUG RI 'LUHFWRUV YRWHG XQDQLPRXVO\ WR

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 38 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

GLVVROYH 7LQGHU DQG WUDQVIHU LWV DVVHWV WR 0DWFK DV WKH VXUYLYLQJ FRUSRUDWLRQ 7LQGHU¶V %RDUG RI

'LUHFWRUV ZDV QRW DZDUH RI DQG GLG QRW FRQVHQW WR WKH PHUJHU 1HLWKHU 5DG QRU DQ\ RWKHU 7LQGHU

3ODLQWLII KDG DQ\ SULRU QRWLFH WKDW WKH FRPSDQ\ WKH\ KDG EXLOW WRJHWKHU ZDV DERXW WR EH PHUJHG RXW

RI H[LVWHQFH

 $W DSSUR[LPDWHO\  SP RQ -XO\   0DWFK ILOHG D &HUWLILFDWH RI

2ZQHUVKLS DQG 0HUJHU ZLWK WKH 'HODZDUH 6HFUHWDU\ RI 6WDWH 2Q LQIRUPDWLRQ DQG EHOLHI %ODWW

:LQLDUVNL DQG RWKHU ,$& DQG 0DWFK H[HFXWLYHV ZHUH ZRUNLQJ DW ,$&¶V RIILFHV LQ 1HZ <RUN ZKHQ

WKH\ SODQQHG DQG H[HFXWHG WKH PHUJHU 7KH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU RSWLRQKROGHUV ZHUH

QRW QRWLILHG XQWLO WKH QH[W GD\ -XO\ 

 7KH GHDGRIQLJKW PHUJHU ZDV D SUHWH[W 8QGHU WKH $JUHHPHQWV 'HIHQGDQWV KDG D

OLPLWHG ULJKW WR FRQYHUW 7LQGHU RSWLRQV LQWR 0DWFK RSWLRQV EXW RQO\ XSRQ DQ DFTXLVLWLRQ RU PHUJHU

WKDW FDXVHG D ³PHDQLQJIXO FKDQJH´ LQ 7LQGHU¶V RSHUDWLQJ VWUXFWXUH DVVHWV RU LQWHJUDWLRQ LQWR

'HIHQGDQWV¶ RWKHU EXVLQHVVHV

 ,Q UHDOLW\ 'HIHQGDQWV¶ PHUJHU RI 7LQGHU LQWR 0DWFK ZDV D VKDP ,W FDXVHG QR

PHDQLQJIXO FKDQJH RI DQ\ NLQG IRU 7LQGHU¶V RSHUDWLQJ VWUXFWXUH DVVHWV RU LQWHJUDWLRQ LQWR

'HIHQGDQWV¶ RWKHU EXVLQHVVHV %RWK EHIRUH DQG DIWHU WKH PHUJHU 0DWFK ZDV 7LQGHU¶V VROH

VWRFNKROGHU DQG KDG XOWLPDWH FRQWURO RYHU WKH FRPSDQ\ 7LQGHU FRQWLQXHG WR KDYH LWV RZQ &(2

MXVW DV LW GLG EHIRUH WKH PHUJHU 7KH 7LQGHU EXVLQHVV RSHUDWHG DV LW DOZD\V KDG ZLWK LWV RZQ

RSHUDWLQJ GLYLVLRQ ORFDWHG LQ /RV $QJHOHV VXEMHFW WR 0DWFK RYHUVLJKW 7KH FRUSRUDWH IXQFWLRQV

WKDW 7LQGHU SHUIRUPHG LQWHUQDOO\ VWLOO FRQWLQXHG WR EH SHUIRUPHG E\ 7LQGHU HPSOR\HHV ZKLOH WKH

IXQFWLRQV WKDW KDG DOZD\V EHHQ RXWVRXUFHG WR 'HIHQGDQWV UHPDLQHG VR ,Q VKRUW 'HIHQGDQWV¶

PHUJHU RI 7LQGHU LQWR 0DWFK KDG QR OHJLWLPDWH EXVLQHVV MXVWLILFDWLRQ RU UHDOZRUOG FRQVHTXHQFH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 39 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

,W VLPSO\ JDYH 'HIHQGDQWV D SUHWH[W WR FRQYHUW WKH 7LQGHU 3ODLQWLIIV¶ RSWLRQV DQG HOLPLQDWH WKHLU

FRQWUDFWXDO ULJKW WR WKUHH DGGLWLRQDO 6FKHGXOHG 3XWV

 $V D UHVXOW RI WKH VHFUHW PHUJHU WKH 7LQGHU 3ODLQWLIIV ORVW WKHLU 7LQGHU RSWLRQV

ZKLFK ZHUH FRQYHUWHG ZLWKRXW WKHLU FRQVHQW LQWR 0DWFK RSWLRQV EDVHG RQ WKH  ELOOLRQ YDOXDWLRQ

'HIHQGDQWV KDG ULJJHG 7KLV PHDQW WKDW WKH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU RSWLRQKROGHUV

UHFHLYHG VLJQLILFDQWO\ IHZHU 0DWFK RSWLRQV LQ WKH FRQYHUVLRQ WKDQ WKHLU 7LQGHU RSWLRQV DFWXDOO\

ZHUH ZRUWK $QG E\ IRUFLQJ WKH 7LQGHU 3ODLQWLIIV DQG RWKHU 7LQGHU RSWLRQKROGHUV WR DFFHSW 0DWFK

RSWLRQV 'HIHQGDQWV VWULSSHG DZD\ VRPHWKLQJ LQFUHGLEO\ YDOXDEOH²VWRFN RSWLRQV LQ 7LQGHU RQH

RI WKH IDVWHVW JURZLQJ VWDQGDORQH FRPSDQLHV LQ WHFK KLVWRU\²IRU RSWLRQV LQ 0DWFK D EORDWHG

VWDJQDQW KROGLQJ FRPSDQ\ ZHLJKHG GRZQ E\ DJLQJ EUDQGV

 +DYLQJ PHUJHG 7LQGHU LQWR 0DWFK DQG GHSULYHG WKH 7LQGHU 3ODLQWLIIV RI WKHLU VWRFN

RSWLRQV LQ 7LQGHU 'HIHQGDQWV WKHQ SXUSRUWHG WR WHUPLQDWH WKH $JUHHPHQWV²HYHQ WKRXJK

'HIHQGDQWV KDG QR ULJKW WR GR VR XQGHU WKHVH FLUFXPVWDQFHV²DQG HOLPLQDWH WKH IXWXUH 6FKHGXOHG

3XWV LQ   DQG 

 2Q LQIRUPDWLRQ DQG EHOLHI 'HIHQGDQWV QHYHU UHYHDOHG WR LQYHVWRUV RU WR UHJXODWRUV

WKH WUXH PXOWLELOOLRQGROODU SULFH WDJ RI DOO 7LQGHU RSWLRQV WKHLU PLVFRQGXFW LQ ULJJLQJ 7LQGHU¶V

YDOXDWLRQ RU WKDW WKH\ IDFHG ELOOLRQV RI GROODUV LQ OLDELOLW\ EDVHG RQ XQGHUPLQLQJ 7LQGHU¶V

YDOXDWLRQ

;9,, 'HIHQGDQWV 5HZDUG %ODWW $QG )LUH 5DG

 2QO\ WZR ZHHNV ODWHU RQ $XJXVW   'HIHQGDQWV DQQRXQFHG WKDW %ODWW ZRXOG

VRRQ OHDYH KLV SRVLWLRQV DV WKH &(2 RI 0DWFK DQG 7LQGHU %ODWW KDG EHHQ ³LQWHULP´ &(2 RI 7LQGHU

IRU IHZHU WKDQ HLJKW PRQWKV VSHQGLQJ WKH EXON RI KLV WLPH H[HFXWLQJ 'HIHQGDQWV¶ VFKHPH +H KDG

DOVR EHHQ FUHGLEO\ DFFXVHG RI JURSLQJ DQG VH[XDOO\ KDUDVVLQJ D VXERUGLQDWH <HW %ODWW UHFHLYHG D

OXFUDWLYH JROGHQ SDUDFKXWH IURP 'HIHQGDQWV IHDWXULQJ D JORZLQJ IDUHZHOO PHVVDJH IURP ,$&¶V

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 40 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

FRQWUROOLQJ VKDUHKROGHU %DUU\ 'LOOHU LQ ZKLFK 'LOOHU SUDLVHG %ODWW¶V ³LQWHJULW\´ 2Q LQIRUPDWLRQ

DQG EHOLHI 'HIHQGDQWV DOORZHG %ODWW WR ZDON DZD\ ZLWK KXQGUHGV RI PLOOLRQV RI GROODUV ZLWKRXW

DQ\ GLVFORVXUH WR WKH LQYHVWLQJ SXEOLF RU WKH ,$& %RDUG RI WKH DOOHJDWLRQV RI VH[XDO PLVFRQGXFW

WKH HQVXLQJ FRYHUXS RU WKH VFKHPH WR WDNH ELOOLRQV RI GROODUV IURP WKH 7LQGHU 3ODLQWLIIV DQG RWKHU

7LQGHU RSWLRQKROGHUV

 ,Q 6HSWHPEHU  %ODWW DVNHG 5DG WR PHHW LQ SHUVRQ %ODWW ZDV LUDWH WKDW 5DG KDG

UHSRUWHG WKH DOOHJDWLRQV RI %ODWW¶V VH[XDO PLVFRQGXFW %ODWW WKUHDWHQHG 5DG DQJULO\ VD\LQJ LQ VXP

DQG VXEVWDQFH WKDW LI 5DG RU DQ\RQH HOVH PDGH SXEOLF WKH PLVFRQGXFW DOOHJDWLRQV DJDLQVW KLP %ODWW

ZRXOG ³WDNH >5DG@ GRZQ´ ZLWK KLP

 2Q 6HSWHPEHU   0DWFK¶V *HQHUDO &RXQVHO 6LQH WHUPLQDWHG 5DG¶V

HPSOR\PHQW DW 7LQGHU

;9,,, 'HIHQGDQWV¶ 3XEOLF 6WDWHPHQWV $QG 7LQGHU¶V 3HUIRUPDQFH &RQWUDGLFW


'HIHQGDQWV¶ 3ULYDWH 6WDWHPHQWV

 'HIHQGDQWV H[HFXWHG WKHLU GLVKRQHVW VFKHPH LQ SULYDWH EHKLQG FORVHG GRRUV DQG

RXWVLGH WKH YLHZ RI WKH SXEOLF PDUNHWV DQG UHJXODWRUV $W WKH VDPH WLPH DV SXEOLFO\ WUDGHG DQG

UHJXODWHG FRPSDQLHV 'HIHQGDQWV URXWLQHO\ PDGH VWDWHPHQWV WR LQYHVWRUV DQDO\VWV DQG

UHJXODWRUV²RQ HDUQLQJV FDOOV DQG LQ SXEOLF ILOLQJV²DERXW 7LQGHU DQG WKHLU RWKHU EXVLQHVVHV

(DUQLQJV FDOOV LQ SDUWLFXODU DUH D FULWLFDO PRPHQW ZKHQ WKH SXEOLF SD\V FDUHIXO DWWHQWLRQ WR HYHU\

ZRUG D FRPSDQ\ VD\V DERXW LWV JURZWK ULVNV DQG YDOXH $QG DV ZLWK DQ\ SXEOLF GLVFORVXUH DERXW

ILQDQFLDO SHUIRUPDQFH IHGHUDO DQG VWDWH VHFXULWLHV ODZV UHTXLUH WKDW HYHU\WKLQJ VDLG RQ DQ HDUQLQJV

FDOO E\ D FRPSDQ\ DQG LWV H[HFXWLYHV PXVW EH WUXWKIXO DFFXUDWH DQG QRW PLVOHDGLQJ

 %HFDXVH WKH YDOXDWLRQ RI 7LQGHU ZDV FRQGXFWHG LQ SULYDWH 'HIHQGDQWV FRXOG HQULFK

WKHPVHOYHV E\ WDONLQJ RXW RI ERWK VLGHV RI WKHLU PRXWKV ,Q VHFUHW 'HIHQGDQWV PDGH IDOVH GRRP

DQGJORRP VWDWHPHQWV WR IOHHFH WKH 7LQGHU 3ODLQWLIIV RXW RI ELOOLRQV RI GROODUV %XW ZKHQ LW FDPH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 41 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

WLPH WR PDNH SXEOLF VWDWHPHQWV DERXW 7LQGHU WKDW ZRXOG LPSDFW WKHLU VWRFN SULFHV 'HIHQGDQWV WROG

WKH WUXWK²EUDJJLQJ WR WKH SXEOLF PDUNHWV DERXW 7LQGHU¶V KLVWRULF JURZWK DQG SURILWDELOLW\

 6LQFH WKH YDOXDWLRQ DQG PHUJHU 'HIHQGDQWV KDYH PDGH QXPHURXV SXEOLF VWDWHPHQWV

DERXW 7LQGHU²PDQ\ GXULQJ 6(&UHJXODWHG HDUQLQJV FDOOV²WKDW SUDLVH 7LQGHU¶V ILQDQFLDO

SHUIRUPDQFH DQG GLUHFWO\ FRQWUDGLFW WKHLU SULYDWH PLVUHSUHVHQWDWLRQV GXULQJ WKH YDOXDWLRQ

 7LQGHU *ROG

D Private Statements 'HIHQGDQWV VDLG WKDW 7LQGHU *ROG ZRXOG KDYH D WULYLDO

LPSDFW RQ 7LQGHU¶V UHYHQXH PRGHO DQG ZRXOG KDYH QR PHDQLQJIXO ORQJWHUP

LPSDFW RQ LWV UHYHQXH JURZWK UDWH

E Public Statements 'XULQJ DQ $XJXVW   HDUQLQJV FDOO %ODWW WROG

LQYHVWRUV WKDW 'HIHQGDQWV KDG ³D JUHDW GHDO RI FRQILGHQFH LQ´ 7LQGHU *ROG

ZKLFK ZDV ³UHDOO\ XQORFNLQJ D WUHPHQGRXV DPRXQW RI YDOXH´ HYHQ GXULQJ

WHVWLQJ 'HIHQGDQWV VDLG WKDW 7LQGHU *ROG ZRXOG EH ³RQH RI LI QRW WKH VLQJOH

ELJJHVW GULYHU RI LQFUHPHQWDO PRQHWL]DWLRQ WKDW >7LQGHU KDG@ ODXQFKHG VLQFH

WKH EHJLQQLQJ´ :LWKLQ RQH ZHHN RI 7LQGHU *ROG¶V 86 ODXQFK LQ $XJXVW

 0DWFK¶V PDUNHW FDSLWDOL]DWLRQ LQFUHDVHG E\ DSSUR[LPDWHO\ RQH ELOOLRQ

GROODUV RU PRUH WKDQ  ,Q D 0D\   HDUQLQJV FDOO 'HIHQGDQWV

GLVFORVHG WKH WUXWK 7LQGHU *ROG KDG ³OHG WR D VXUJH LQ VXEVFULEHU OHYHOV´

DQG ZDV WKH ³PRVW REYLRXV GULYHU´ IRU 7LQGHU¶V ³GUDPDWLFDOO\ KLJKHU´

UHYHQXH SHU XVHU

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 42 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 606 $XWKHQWLFDWLRQ

D Private Statements 'HIHQGDQWV GLVPLVVHG WKH VLJQLILFDQFH RI 606

DXWKHQWLFDWLRQ DUJXLQJ WKDW LW ZRXOG KDYH RQO\ OLPLWHG LPSDFW RQ 7LQGHU¶V

EXVLQHVV

E Public Statements 2Q D 0D\   HDUQLQJV FDOO 'HIHQGDQWV GLVFORVHG

WKDW ZLWKLQ WZR PRQWKV RI ODXQFKLQJ 606 DXWKHQWLFDWLRQ  RI DOO QHZ

7LQGHU UHJLVWUDWLRQV LQ 1RUWK $PHULFD DQG D VLPLODU SURSRUWLRQ RI DOO QHZ

UHJLVWUDWLRQV JOREDOO\ XVH 606 DXWKHQWLFDWLRQ 7LQGHU¶V VXFFHVV ZLWK 606

DXWKHQWLFDWLRQ ZDV WKH SULQFLSDO GDWD SRLQW 'HIHQGDQWV UHOLHG RQ GXULQJ WKDW

FDOO WR GHPRQVWUDWH WR DQDO\VWV WKDW )DFHERRN¶V QHZO\ DQQRXQFHG RQOLQH

GDWLQJ SURGXFW GLG QRW UHSUHVHQW D VLJQLILFDQW WKUHDW WR 7LQGHU

 *URZWK 5DWH

D Private Statements 'HIHQGDQWV VDLG WKDW 7LQGHU¶V EHVW GD\V ZHUH EHKLQG LW

7LQGHU¶V JURZWK UDWH ZRXOG VRRQ VWDOO DQG SHUPDQHQWO\ GHFOLQH 'HIHQGDQWV

SURMHFWHG WKDW 7LQGHU¶V UHYHQXH ZRXOG RQO\ JURZ E\  E\ WKH HQG RI

 DQG LWV UHYHQXH JURZWK UDWH ZRXOG FROODSVH E\ PRUH WKDQ  RYHU

WKH QH[W ILYH \HDUV

E Public Statements 'XULQJ DQ $XJXVW   HDUQLQJV FDOO %ODWW WROG

LQYHVWRUV WKDW 7LQGHU ZRXOG FRQWLQXH WR EH ³WKH PDMRU GULYHU RI 0DWFK

*URXS UHYHQXH JURZWK IRU FHUWDLQO\ VHYHUDO \HDUV´ 6ZLGOHU WROG WKH SXEOLF

WKDW 'HIHQGDQWV H[SHFWHG ³UHYHQXH PRPHQWXP WR EXLOG WKURXJKRXW >@

DV 7LQGHU¶V SURGXFW PRPHQWXP DFFHOHUDWH>G@´ $QG %ODWW WROG LQYHVWRUV WKDW

7LQGHU ZRXOG VHH ³PHDQLQJIXO H[SDQVLRQ DQG    UHDFFHOHUDWLRQ´ RI LWV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 43 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

JURZWK UDWH 0RUH UHFHQWO\ RQ D 0D\   HDUQLQJV FDOO 'HIHQGDQWV

H[SODLQHG WKDW WKDQNV WR ³WKH ORQJWHUP SODQ WKDW >WKH\ KDG@ SXW LQ SODFH´

³7LQGHU¶V PDUJLQV DUH H[SDQGLQJ ZKLOH DW WKH VDPH WLPH 7LQGHU LV DFKLHYLQJ

WUHPHQGRXV JURZWK´ $QG 'HIHQGDQWV FURZHG WKDW 7LQGHU LV ³ZHOO

SRVLWLRQHG WR NHHS FDSWXULQJ PRUH DQG PRUH RI >LWV@ PDUNHW RYHU WLPH´ KDV

³PXOWLSOH UHYHQXH GULYHUV´ DQG UHPDLQV ³LQ WKH HDUO\ VWDJHV >RI@ KRZ

VRSKLVWLFDWHG >LW@ FDQ EH LQ WHUPV RI PRQHWL]DWLRQ´

 'HIHQGDQWV DUH QRZ WHOOLQJ WKH WUXWK DERXW 7LQGHU SXEOLFO\ IRU WKH VDPH UHDVRQ WKH\

OLHG DERXW 7LQGHU SULYDWHO\²WR HQULFK WKHPVHOYHV %XW 'HIHQGDQWV KDYH QHYHU GLVFORVHG WR

LQYHVWRUV RU WR UHJXODWRUV WKH WUXH PXOWLELOOLRQGROODU SULFH WDJ RI DOO 7LQGHU RSWLRQV RU WKDW WKH\

IDFHG ELOOLRQV RI GROODUV LQ OLDELOLW\ UHVXOWLQJ IURP WKHLU VFKHPH

 7LQGHU¶V ILQDQFLDO SHUIRUPDQFH VLQFH -XO\  IXUWKHU FRQILUPV WKH LOOHJLWLPDF\ RI

'HIHQGDQWV¶ ILQDQFLDO SURMHFWLRQV DQG UHVXOWLQJ  ELOOLRQ YDOXDWLRQ 'XULQJ WKH YDOXDWLRQ

'HIHQGDQWV FODLPHG WKDW 7LQGHU ZRXOG HDUQ  PLOOLRQ LQ  UHYHQXH 2Q $XJXVW  

GXULQJ 0DWFK¶V ODWHVW HDUQLQJV FDOO 'HIHQGDQWV UHYHDOHG WKDW ³7LQGHU LV RQ SDFH WR H[FHHG 

PLOOLRQ LQ UHYHQXH LQ ´²PRUH WKDQ  KLJKHU WKDQ 'HIHQGDQWV SURMHFWHG IRU  UHYHQXH

DQG PRUH WKDQ  KLJKHU WKDQ 'HIHQGDQWV SURMHFWHG HYHQ IRU  UHYHQXH 'HIHQGDQWV DVVXUHG

LQYHVWRUV WKH\ ZHUH ³FRQILGHQW´ WKDW 7LQGHU¶V SURILW PDUJLQV DOUHDG\ ³VWURQJ´ ZLOO ³FRQWLQXH WR

H[SDQG´ PDNLQJ WKH FRPSDQ\ HYHQ PRUH SURILWDEOH 'HIHQGDQWV DOVR GLVFORVHG WKDW 7LQGHU *ROG¶V

VXFFHVV KDG ³UHVHW´ 7LQGHU¶V PHWULFV JHQHUDWLQJ ³YHU\ VXVWDLQHG OLIWV´ LQ NH\ 7LQGHU SHUIRUPDQFH

PHDVXUHV

 1RZ WKDW WKH\ KDYH VXFFHVVIXOO\ H[HFXWHG WKHLU VFKHPH 'HIHQGDQWV IUHHO\ DGPLW

WKDW 7LQGHU LV H[DFWO\ WKH KLVWRULF FRPSDQ\ WKH 7LQGHU 3ODLQWLIIV DOZD\V NQHZ LW ZDV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 44 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 'HIHQGDQWV¶ SDWK WR 7LQGHU ³JROG´ ZDV SDYHG ZLWK V\VWHPDWLF H[SORLWDWLRQ DQG

JUHHG )RU \HDUV 'HIHQGDQWV FKHDWHG WKH 7LQGHU 3ODLQWLIIV RXW RI WKH FUHGLW DQG YDOXH WKH\ KDG

HDUQHG²FXOPLQDWLQJ LQ 'HIHQGDQWV¶ VFKHPH WR GHSULYH WKH 7LQGHU 3ODLQWLIIV RI WKHLU FRQWUDFWXDO

ULJKWV DV 7LQGHU RSWLRQKROGHUV 7KH 7LQGHU 3ODLQWLIIV VHHN UHGUHVV IRU WKHPVHOYHV DQG DOO WKH RWKHU

7LQGHU HPSOR\HHV ZKRP 'HIHQGDQWV PDQLSXODWHG DQG FKHDWHG

&/$,06 )25 5(/,()

&2817 ,

%5($&+ 2) &2175$&7
(Against IAC and Match)

 7KH 7LQGHU 3ODLQWLIIV UHSHDW DQG UHDOOHJH SDUDJUDSKV  WKURXJK  RI WKLV

&RPSODLQW DV LI IXOO\ VHW IRUWK KHUHLQ

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU KLV RU

KHU 2SWLRQ $JUHHPHQW DV DSSOLFDEOH H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

 3XUVXDQW WR WKH 6HWWOHPHQW 3ODQ DQG HDFK RI WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ

$JUHHPHQWV HDFK RI WKH 7LQGHU 3ODLQWLIIV LV DQ H[SUHVV WKLUGSDUW\ EHQHILFLDU\ RI WKH 6HWWOHPHQW

3ODQ

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU WKH

6HWWOHPHQW 3ODQ H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

 (DFK RI WKH 7LQGHU 3ODLQWLIIV LV DQ LQWHQGHG WKLUGSDUW\ EHQHILFLDU\ RI 5DG¶V )XQGLQJ

DQG *RYHUQDQFH $JUHHPHQW DV WKH DJUHHPHQW¶V SULPDU\ SXUSRVH ZDV WR HIIHFWXDWH DQG SURWHFW WKH

LQWHJULW\ RI WKH 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV VHW IRUWK LQ WKH 6HWWOHPHQW 3ODQ RI ZKLFK HDFK RI WKH

7LQGHU 3ODLQWLIIV LV DQ H[SUHVV WKLUGSDUW\ EHQHILFLDU\

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU 5DG¶V

)XQGLQJ DQG *RYHUQDQFH $JUHHPHQW H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 45 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 2Q LQIRUPDWLRQ DQG EHOLHI XSRQ WKH -XO\   PHUJHU RI 7LQGHU LQWR 0DWFK

0DWFK DVVXPHG DOO RI 7LQGHU¶V OLDELOLWLHV DQG REOLJDWLRQV

$ ,QIRUPDWLRQ 5LJKWV

 'HIHQGDQWV EUHDFKHG 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW E\ IDLOLQJ WR

SURYLGH KLP ZLWK FHUWDLQ LQIRUPDWLRQ WR ZKLFK KH ZDV HQWLWOHG

 3XUVXDQW WR 6HFWLRQ  D RI 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW 7LQGHU ZDV

UHTXLUHG WR ³IXUQLVK WKH IROORZLQJ ILQDQFLDO LQIRUPDWLRQ WR >5DG@ L DV VRRQ DV SUDFWLFDEOH DIWHU

WKH HQG RI HDFK ILVFDO \HDU RI WKH &RPSDQ\ DQ XQDXGLWHG EDODQFH VKHHW RI WKH &RPSDQ\ DV DW WKH

HQG RI VXFK ILVFDO \HDU DQG XQDXGLWHG VWDWHPHQWV RI LQFRPH DQG FDVK IORZV RI WKH &RPSDQ\ IRU

VXFK \HDU SUHSDUHG LQ DFFRUGDQFH ZLWK 86 JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV FRQVLVWHQWO\

DSSOLHG DQG LL DV VRRQ DV SUDFWLFDEOH DIWHU WKH HQG RI WKH ILUVW VHFRQG DQG WKLUG TXDUWHUO\

DFFRXQWLQJ SHULRGV LQ HDFK ILVFDO \HDU RI WKH &RPSDQ\ DQ XQDXGLWHG EDODQFH VKHHW RI WKH &RPSDQ\

DV RI WKH HQG RI HDFK VXFK TXDUWHUO\ SHULRG DQG XQDXGLWHG VWDWHPHQWV RI LQFRPH DQG FDVK IORZV RI

WKH &RPSDQ\ IRU VXFK SHULRG SUHSDUHG LQ DFFRUGDQFH ZLWK 86 JHQHUDOO\ DFFHSWHG DFFRXQWLQJ

SULQFLSOHV FRQVLVWHQWO\ DSSOLHG VXEMHFW WR FKDQJHV UHVXOWLQJ IURP QRUPDO \HDUHQG DXGLW

DGMXVWPHQWV´ 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ E\ IDLOLQJ WR SURYLGH 5DG ZLWK DOO VXFK

LQIRUPDWLRQ RU SUHYHQWLQJ WKH SURYLVLRQ WKHUHRI

% 0D\  6FKHGXOHG 3XW

 %\ WKHLU DFWLRQV LQ FRQQHFWLRQ ZLWK WKH 0D\  6FKHGXOHG 3XW 'HIHQGDQWV

EUHDFKHG WKH 6HWWOHPHQW 3ODQ DQG WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV

 3XUVXDQW WR 6HFWLRQ  RI 6FKHGXOH $ WR WKH 6HWWOHPHQW 3ODQ LQ FRQQHFWLRQ ZLWK WKH

0D\  6FKHGXOHG 3XW 7LQGHU ZDV UHTXLUHG WR REWDLQ ³LQGHSHQGHQW´ GHWHUPLQDWLRQV RI 7LQGHU¶V

3XEOLF &RPSDQ\ 7UDGLQJ 3ULFH 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ RI WKH 6HWWOHPHQW 3ODQ E\

XQGHUPLQLQJ WKH LQGHSHQGHQW GHWHUPLQDWLRQ RI 7LQGHU¶V YDOXDWLRQ

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 46 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 3XUVXDQW WR 6HFWLRQ  RI 6FKHGXOH $ WR WKH 6HWWOHPHQW 3ODQ LQ FRQQHFWLRQ ZLWK WKH

0D\  6FKHGXOHG 3XW 7LQGHU ZDV REOLJDWHG WR SURYLGH DOO UHDVRQDEO\ UHTXHVWHG GLOLJHQFH

LQIRUPDWLRQ UHJDUGLQJ 7LQGHU 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ RI WKH 6HWWOHPHQW 3ODQ E\

ZLWKKROGLQJ DQG UHIXVLQJ WR SURYLGH UHDVRQDEO\ UHTXHVWHG GLOLJHQFH LQIRUPDWLRQ

 6HFWLRQ  RI 6FKHGXOH $ WR WKH 6HWWOHPHQW 3ODQ DOVR REOLJDWHG 7LQGHU WR JUDQW DFFHVV

WR 7LQGHU PDQDJHPHQW WR GLVFXVV 7LQGHU¶V EXVLQHVV DQG SURVSHFWV DQG GLOLJHQFH LQIRUPDWLRQ DERXW

7LQGHU 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ RI WKH 6HWWOHPHQW 3ODQ E\ OLPLWLQJ DQG LQWHUIHULQJ ZLWK

DFFHVV WR 7LQGHU H[HFXWLYHV DQG HPSOR\HHV

 3XUVXDQW WR 6HFWLRQ  G LLL RI 5DG¶V 2SWLRQ $JUHHPHQW LQ FRQQHFWLRQ ZLWK WKH

0D\  6FKHGXOHG 3XW 7LQGHU ZDV UHTXLUHG WR JLYH 5DG HTXDO DFFHVV WR 7LQGHU GLOLJHQFH

LQIRUPDWLRQ DQG UHDVRQDEOH DFFHVV WR 7LQGHU PDQDJHPHQW 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ RI

5DG¶V 2SWLRQ $JUHHPHQW E\ ZLWKKROGLQJ LQIRUPDWLRQ IURP 5DG DQG LQWHUIHULQJ ZLWK 5DG¶V DELOLW\

WR VSHDN ZLWK 7LQGHU PDQDJHPHQW

 3XUVXDQW WR 6HFWLRQ  E RI WKH 6HWWOHPHQW 3ODQ LQ FRQQHFWLRQ ZLWK WKH 0D\ 

6FKHGXOHG 3XW 7LQGHU ZDV UHTXLUHG WR ³GHOLYHU WR DOO 3ODQ %HQHILFLDULHV HOLJLEOH WR SDUWLFLSDWH LQ

WKH 4XDOLI\LQJ 3XW´ D 3XW 3ULFH 1RWLFH ZKLFK ZDV VXSSRVHG WR FRQWDLQ WKH 3XW 3ULFH VXSSRUWLQJ

FDOFXODWLRQV DQG LQVWUXFWLRQV IRU H[HUFLVLQJ YHVWHG RSWLRQV 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ RI

WKH 6HWWOHPHQW 3ODQ E\ GHSULYLQJ WKH 7LQGHU 3ODLQWLIIV RI WKLV QRWLFH

 3XUVXDQW WR 6HFWLRQ  F RI WKH 6HWWOHPHQW 3ODQ LQ FRQQHFWLRQ ZLWK WKH 0D\ 

6FKHGXOHG 3XW 7LQGHU RSWLRQKROGHUV ZHUH HQWLWOHG WR D WHQ EXVLQHVV GD\ SHULRG FDOOHG D 3XW

([HUFLVH :LQGRZ LQ ZKLFK WR H[HUFLVH WKHLU YHVWHG 7LQGHU RSWLRQV 'HIHQGDQWV EUHDFKHG WKLV

SURYLVLRQ RI WKH 6HWWOHPHQW 3ODQ E\ GHSULYLQJ WKH 7LQGHU 3ODLQWLIIV RI WKLV ZLQGRZ

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 47 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

& 7LQGHU0DWFK 0HUJHU

 %\ WKHLU DFWLRQV LQ FRQQHFWLRQ ZLWK WKH -XO\   PHUJHU RI 7LQGHU LQWR 0DWFK

'HIHQGDQWV EUHDFKHG WKH 6HWWOHPHQW 3ODQ DQG 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW

 3XUVXDQW WR 6HFWLRQ  RI WKH 6HWWOHPHQW 3ODQ LQ FRQQHFWLRQ ZLWK DQ ³,$&

$FTXLVLWLRQ´ LQFOXGLQJ DQ\ PHUJHU RI 7LQGHU ³ZLWK ,$& RU DQ\ RI LWV DIILOLDWHV´ 7LQGHU EHIRUH

WKH PHUJHU RU 0DWFK DIWHU WKH PHUJHU ZDV UHTXLUHG WR ³LQVWLWXWH D 'LVFUHWLRQDU\ 3XW ZLWK UHVSHFW

WR ZKLFK DOO 3ODQ %HQHILFLDULHV >ZRXOG@ EH GHHPHG +ROGHUV´ DQG FRQGXFW WKDW 'LVFUHWLRQDU\ 3XW

SXUVXDQW WR 6HFWLRQ  DQG 6FKHGXOH $ RI WKH 6HWWOHPHQW 3ODQ

 6HFWLRQ  RI WKH 6HWWOHPHQW 3ODQ DOWHUQDWLYHO\ SURYLGHG WKDW ³LI WKH ,$& $FTXLVLWLRQ

>GLG@ QRW UHVXOW LQ DQ\ PHDQLQJIXO FKDQJH LQ WKH DVVHWV RZQHG RU FRQWUROOHG E\ >7LQGHU@ RU LWV

VXFFHVVRU DQG WKHUH >ZDV@ QR PHDQLQJIXO FKDQJH LQ WKH RSHUDWLQJ VWUXFWXUH RU LQWHJUDWLRQ RI WKH

EXVLQHVV LQWR DQ\ RI ,$&¶V RWKHU EXVLQHVVHV QR 'LVFUHWLRQDU\ 3XW >ZRXOG@ EH WULJJHUHG DQG WKHVH

DUUDQJHPHQWV VKDOO UHPDLQ XQFKDQJHG´

 'HIHQGDQWV EUHDFKHG 6HFWLRQ  RI WKH 6HWWOHPHQW 3ODQ 7KH PHUJHU RI 7LQGHU LQWR

0DWFK GLG QRW UHVXOW LQ DQ\ ³PHDQLQJIXO FKDQJH´ LQ WKH DVVHWV RZQHG RU FRQWUROOHG E\ 7LQGHU RU

0DWFK RU LQ WKH RSHUDWLQJ VWUXFWXUH RU LQWHJUDWLRQ RI 7LQGHU¶V EXVLQHVV LQWR DQ\ RI ,$&¶V RWKHU

EXVLQHVVHV <HW 'HIHQGDQWV IDLOHG WR SUHVHUYH WKH DUUDQJHPHQWV RI WKH 6HWWOHPHQW 3ODQ IROORZLQJ

WKH PHUJHU DV 6HFWLRQ  UHTXLUHG

 $OWHUQDWLYHO\ HYHQ LI WKH PHUJHU RI 7LQGHU LQWR 0DWFK GLG UHVXOW LQ D ³PHDQLQJIXO

FKDQJH´ LQ 7LQGHU¶V DVVHWV RU RSHUDWLQJ VWUXFWXUH RU LQ WKH LQWHJUDWLRQ RI 7LQGHU¶V EXVLQHVV LQWR RQH

RU PRUH RI ,$&¶V RWKHU EXVLQHVVHV 'HIHQGDQWV EUHDFKHG 6HFWLRQ  E\ IDLOLQJ WR LQVWLWXWH RU FRQGXFW

D 'LVFUHWLRQDU\ 3XW

 3XUVXDQW WR 6HFWLRQ  RI 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW ³>L@Q WKH HYHQW

RI DQ ,$& $FTXLVLWLRQ WKH SULFH SDLG WR    WKH KROGHUV RI 2SWLRQV DQG 6KDUHV LVVXHG XSRQ WKH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 48 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

H[HUFLVH WKHUHRI´ ZDV UHTXLUHG WR EH GHWHUPLQHG LQ DFFRUGDQFH ZLWK WKH 4XDOLI\LQJ 9DOXDWLRQ

3URFHVV VHW IRUWK LQ 6FKHGXOH $ WR WKH 6HWWOHPHQW 3ODQ 7KXV HYHQ LI 'HIHQGDQWV ZHUH QRW DOUHDG\

UHTXLUHG WR LQVWLWXWH D 'LVFUHWLRQDU\ 3XW LQ FRQQHFWLRQ ZLWK WKH PHUJHU RI 7LQGHU LQWR 0DWFK WKH\

ZHUH UHTXLUHG LQ DQ\ HYHQW WR LQLWLDWH D 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV WR DGHTXDWHO\ FRPSHQVDWH

WKH 7LQGHU 3ODLQWLIIV 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ RI 5DG¶V )XQGLQJ DQG *RYHUQDQFH

$JUHHPHQW E\ IDLOLQJ WR LQVWLWXWH D FRPSOLDQW 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV LQ FRQQHFWLRQ ZLWK WKH

PHUJHU RI 7LQGHU LQWR 0DWFK

' 7HUPLQDWLRQ RI WKH $JUHHPHQWV

 'HIHQGDQWV EUHDFKHG WKH 6HWWOHPHQW 3ODQ WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ

$JUHHPHQWV DQG 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW E\ LPSURSHUO\ WHUPLQDWLQJ WKHP DIWHU

WKH PHUJHU RI 7LQGHU LQWR 0DWFK

 3XUVXDQW WR 6HFWLRQ  RI WKH 6HWWOHPHQW 3ODQ WKH 6HWWOHPHQW 3ODQ FRXOG RQO\

WHUPLQDWH ³XSRQ WKH HDUOLHU WR RFFXU RI L D 3XEOLF 2IIHULQJ DQG LL VXFK WLPH DV ,$& WRJHWKHU

ZLWK LWV DIILOLDWHV RZQV OHVV WKDQ D PDMRULW\ RI WKH RXWVWDQGLQJ HTXLW\ RI WKH &RPSDQ\ PHDVXUHG

RQ D IXOO\GLOXWHG DVFRQYHUWHGWRFRPPRQVWRFN EDVLV ´ 'HIHQGDQWV EUHDFKHG WKLV SURYLVLRQ E\

WHUPLQDWLQJ WKH 6HWWOHPHQW 3ODQ ZLWKRXW D SURSHU EDVLV WR GR VR

D $W WKH WLPH WKH 6HWWOHPHQW 3ODQ ZDV WHUPLQDWHG D 3XEOLF 2IIHULQJ KDG QRW

WDNHQ SODFH )RU SXUSRVHV RI WKH 6HWWOHPHQW 3ODQ DV VHW IRUWK LQ 6HFWLRQ 

D ³3XEOLF 2IIHULQJ´ PHDQV ³D WUDQVDFWLRQ RU VHULHV RI UHODWHG WUDQVDFWLRQV

UHVXOWLQJ LQ WKH FRPPRQ VWRFN RI >7LQGHU@ RU RI VXFK FRPSDQ\ UHVXOWLQJ

IURP VXFK WUDQVDFWLRQV RU VHULHV RI WUDQVDFWLRQV EHLQJ SXEOLFO\ WUDGHG DQG

UHJLVWHUHG XQGHU WKH ([FKDQJH $FW ZKHWKHU E\ XQGHUZULWWHQ SXEOLF

RIIHULQJ VSLQ RII WR VKDUHKROGHUV RU VLPLODU PHDQV ´ 7LQGHU¶V VKDUHV KDYH

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 49 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

QHYHU EHHQ SXEOLFO\ WUDGHG DQG WKH 7LQGHU0DWFK PHUJHU GLG QRW UHVXOW LQ

0DWFK¶V VKDUHV EHLQJ SXEOLFO\ WUDGHG

E $W WKH WLPH WKH 6HWWOHPHQW 3ODQ ZDV WHUPLQDWHG ,$& DQG LWV DIILOLDWHV GLG

QRW RZQ OHVV WKDQ D PDMRULW\ RI WKH RXWVWDQGLQJ VKDUHV RI 7LQGHU 0DWFK DQ

,$& DIILOLDWH RZQHG DOO RI 7LQGHU¶V RXWVWDQGLQJ VKDUHV DW WKDW WLPH

 'HIHQGDQWV DOVR EUHDFKHG HDFK RI WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV DQG

5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW E\ WHUPLQDWLQJ WKHP ZLWKRXW D SURSHU EDVLV WR GR VR

 $V D UHVXOW RI 'HIHQGDQWV¶ PDWHULDO EUHDFKHV RI WKH 6HWWOHPHQW 3ODQ WKH 7LQGHU

3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV DQG 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW WKH 7LQGHU

3ODLQWLIIV KDYH EHHQ GDPDJHG LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO EXW QRW OHVV WKDQ



&2817 ,,

%5($&+ 2) 7+( ,03/,(' &29(1$17 2)


*22' )$,7+ $1' )$,5 '($/,1*
(Against IAC and Match)

 7KH 7LQGHU 3ODLQWLIIV UHSHDW DQG UHDOOHJH SDUDJUDSKV  WKURXJK  RI WKLV

&RPSODLQW DV LI IXOO\ VHW IRUWK KHUHLQ

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU KLV RU

KHU 2SWLRQ $JUHHPHQW DV DSSOLFDEOH H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

 3XUVXDQW WR WKH 6HWWOHPHQW 3ODQ DQG HDFK RI WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ

$JUHHPHQWV HDFK RI WKH 7LQGHU 3ODLQWLIIV LV DQ H[SUHVV WKLUGSDUW\ EHQHILFLDU\ RI WKH 6HWWOHPHQW

3ODQ

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU WKH

6HWWOHPHQW 3ODQ H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 50 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 (DFK RI WKH 7LQGHU 3ODLQWLIIV LV DQ LQWHQGHG WKLUGSDUW\ EHQHILFLDU\ RI 5DG¶V )XQGLQJ

DQG *RYHUQDQFH $JUHHPHQW DV WKH DJUHHPHQW¶V SULPDU\ SXUSRVH ZDV WR HIIHFWXDWH DQG SURWHFW WKH

LQWHJULW\ RI WKH 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV VHW IRUWK LQ WKH 6HWWOHPHQW 3ODQ RI ZKLFK HDFK RI WKH

7LQGHU 3ODLQWLIIV LV DQ H[SUHVV WKLUGSDUW\ EHQHILFLDU\

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU 5DG¶V

)XQGLQJ DQG *RYHUQDQFH $JUHHPHQW H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

 2Q LQIRUPDWLRQ DQG EHOLHI XSRQ WKH -XO\   PHUJHU RI 7LQGHU LQWR 0DWFK

0DWFK DVVXPHG DOO RI 7LQGHU¶V OLDELOLWLHV DQG REOLJDWLRQV

 ,PSOLHG LQ HDFK RI WKH 6HWWOHPHQW 3ODQ WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV

DQG 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW LV D FRYHQDQW WKDW WKH SDUWLHV ZLOO DFW LQ JRRG IDLWK

DQG GHDO IDLUO\ ZLWK HDFK RWKHU LQFOXGLQJ LQ FRQQHFWLRQ ZLWK WKH 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV VHW

IRUWK LQ 6FKHGXOH $ WR WKH 6HWWOHPHQW 3ODQ

 7KH LQFOXVLRQ RI DQ LQGHSHQGHQW JRRGIDLWK 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV WR IDLUO\

YDOXH 7LQGHU RSWLRQV LQ FRQQHFWLRQ ZLWK FHUWDLQ OLTXLGLW\ HYHQWV ZDV FHQWUDO WR WKH EDUJDLQ WKH

SDUWLHV VWUXFN DQG WR WKH RYHUDUFKLQJ SXUSRVH RI WKH $JUHHPHQWV

 'HIHQGDQWV DFWLQJ LQ EDG IDLWK EUHDFKHG WKH LPSOLHG FRYHQDQW RI JRRG IDLWK DQG

IDLU GHDOLQJ LQKHUHQW LQ HDFK RI WKH 6HWWOHPHQW 3ODQ WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV DQG

5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW E\ DPRQJ RWKHU WKLQJV XQGHUPLQLQJ WKH 4XDOLI\LQJ

9DOXDWLRQ 3URFHVV LQ 

 $V D UHVXOW RI 'HIHQGDQWV PDWHULDO EUHDFKHV RI WKH LPSOLHG FRYHQDQW RI JRRG IDLWK

DQG IDLU GHDOLQJ WKH 7LQGHU 3ODLQWLIIV KDYH EHHQ GDPDJHG LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO

EXW QRW OHVV WKDQ 

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 51 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

&2817 ,,,

81-867 (15,&+0(17
(Against IAC and Match)

 7KH 7LQGHU 3ODLQWLIIV UHSHDW DQG UHDOOHJH SDUDJUDSKV  WKURXJK  RI WKLV

&RPSODLQW DV LI IXOO\ VHW IRUWK KHUHLQ

 ,Q WKH DOWHUQDWLYH WR WKH 7LQGHU 3ODLQWLIIV¶ FODLPV IRU EUHDFK RI FRQWUDFW DQG EUHDFK

RI WKH LPSOLHG FRYHQDQW RI JRRG IDLWK DQG IDLU GHDOLQJ 'HIHQGDQWV ZHUH XQMXVWO\ HQULFKHG DW WKH

H[SHQVH RI WKH 7LQGHU 3ODLQWLIIV

 'HIHQGDQWV XQMXVWO\ EHQHILWWHG E\ XQGHUFRPSHQVDWLQJ WKH 7LQGHU 3ODLQWLIIV IRU WKHLU

7LQGHU RSWLRQV LQWHQWLRQDOO\ DQG LQ EDG IDLWK

 (TXLW\ DQG JRRG FRQVFLHQFH UHTXLUH WKDW WKH 7LQGHU 3ODLQWLIIV UHFHLYH UHVWLWXWLRQ DV

LW ZRXOG EH XQMXVW WR DOORZ 'HIHQGDQWV WR UHWDLQ WKH EHQHILW RI WKHLU EDG IDLWK DQG PDQLSXODWLYH

FRQGXFW

 $V D UHVXOW RI 'HIHQGDQWV¶ XQMXVW HQULFKPHQW DW WKH 7LQGHU 3ODLQWLIIV¶ H[SHQVH WKH

7LQGHU 3ODLQWLIIV KDYH EHHQ GDPDJHG LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO EXW QRW OHVV WKDQ



&2817 ,9

,17(5)(5(1&( :,7+ &2175$&78$/ 5(/$7,216


(Against Match)

 7KH 7LQGHU 3ODLQWLIIV UHSHDW DQG UHDOOHJH SDUDJUDSKV  WKURXJK  RI WKLV

&RPSODLQW DV LI IXOO\ VHW IRUWK KHUHLQ

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU KLV RU

KHU 2SWLRQ $JUHHPHQW DV DSSOLFDEOH H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 52 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 3XUVXDQW WR WKH 6HWWOHPHQW 3ODQ DQG HDFK RI WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ

$JUHHPHQWV HDFK RI WKH 7LQGHU 3ODLQWLIIV LV DQ H[SUHVV WKLUGSDUW\ EHQHILFLDU\ RI WKH 6HWWOHPHQW

3ODQ

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU WKH

6HWWOHPHQW 3ODQ H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

 (DFK RI WKH 7LQGHU 3ODLQWLIIV LV DQ LQWHQGHG WKLUGSDUW\ EHQHILFLDU\ RI 5DG¶V )XQGLQJ

DQG *RYHUQDQFH $JUHHPHQW DV WKH DJUHHPHQW¶V SULPDU\ SXUSRVH ZDV WR HIIHFWXDWH DQG SURWHFW WKH

LQWHJULW\ RI WKH 4XDOLI\LQJ 9DOXDWLRQ 3URFHVV VHW IRUWK LQ WKH 6HWWOHPHQW 3ODQ RI ZKLFK HDFK RI WKH

7LQGHU 3ODLQWLIIV LV DQ H[SUHVV WKLUGSDUW\ EHQHILFLDU\

 (DFK RI WKH 7LQGHU 3ODLQWLIIV KDV IXOO\ SHUIRUPHG KLV RU KHU REOLJDWLRQV XQGHU 5DG¶V

)XQGLQJ DQG *RYHUQDQFH $JUHHPHQW H[FHSW DV H[FXVHG RU SUHYHQWHG E\ 7LQGHU 0DWFK RU ,$&

 $OWKRXJK EHIRUH WKH PHUJHU RI 7LQGHU LQWR 0DWFK 0DWFK ZDV QRW D SDUW\ WR WKH

6HWWOHPHQW 3ODQ WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV RU 5DG¶V )XQGLQJ DQG *RYHUQDQFH

$JUHHPHQW 0DWFK KDG NQRZOHGJH RI WKHVH DJUHHPHQWV

 %\ LWV DFWLRQV LQ FRQQHFWLRQ ZLWK WKH 0D\  6FKHGXOHG 3XW DQG WKH PHUJHU RI

7LQGHU LQWR 0DWFK 0DWFK LQGXFHG QXPHURXV EUHDFKHV RI DQG XQGHUPLQHG WKH 7LQGHU 3ODLQWLIIV¶

ULJKWV XQGHU WKH 6HWWOHPHQW 3ODQ WKH 7LQGHU 3ODLQWLIIV¶ 2SWLRQ $JUHHPHQWV DQG 5DG¶V )XQGLQJ

DQG *RYHUQDQFH $JUHHPHQW

 0DWFK HLWKHU DFWHG ZLWK WKH SXUSRVH DQG LQWHQW WR FDXVH D EUHDFK RU LQWHUIHUH ZLWK

WKH 7LQGHU 3ODLQWLIIV¶ FRQWUDFWXDO ULJKWV RU DOWHUQDWLYHO\ 0DWFK NQHZ WKDW D EUHDFK RU GLVUXSWLRQ

LQ WKH 7LQGHU 3ODLQWLIIV¶ FRQWUDFWXDO ULJKWV ZDV FHUWDLQ RU VXEVWDQWLDOO\ FHUWDLQ WR RFFXU DV D UHVXOW

RI LWV DFWLRQV

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 53 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

 $V D UHVXOW RI 0DWFK¶V LQWHUIHUHQFH ZLWK WKH 6HWWOHPHQW 3ODQ WKH 7LQGHU 3ODLQWLIIV¶

2SWLRQ $JUHHPHQWV DQG 5DG¶V )XQGLQJ DQG *RYHUQDQFH $JUHHPHQW WKH 7LQGHU 3ODLQWLIIV KDYH

EHHQ GDPDJHG LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO EXW QRW OHVV WKDQ 

&2817 9

,17(5)(5(1&( :,7+ 35263(&7,9( (&2120,& $'9$17$*(


(Against IAC and Match)

 7KH 7LQGHU 3ODLQWLIIV UHSHDW DQG UHDOOHJH SDUDJUDSKV  WKURXJK  RI WKLV

&RPSODLQW DV LI IXOO\ VHW IRUWK KHUHLQ

 'HIHQGDQWV ZHUH DZDUH WKDW WKH 7LQGHU 3ODLQWLIIV KDG HFRQRPLF UHODWLRQVKLSV ZLWK

7LQGHU IURP ZKLFK WKH\ H[SHFWHG WR UHFHLYH IXWXUH HFRQRPLF EHQHILWV LQFOXGLQJ LQ FRQQHFWLRQ

ZLWK WKHLU 7LQGHU RSWLRQV

 %\ WKHLU DFWLRQV LQ FRQQHFWLRQ ZLWK WKH 0D\  6FKHGXOHG 3XW DQG WKH PHUJHU RI

7LQGHU LQWR 0DWFK 'HIHQGDQWV GLVUXSWHG WKH 7LQGHU 3ODLQWLIIV¶ HFRQRPLF UHODWLRQVKLSV ZLWK 7LQGHU

 'HIHQGDQWV HLWKHU DFWHG ZLWK WKH SXUSRVH DQG LQWHQW WR GLVUXSW WKHVH UHODWLRQVKLSV

RU DOWHUQDWLYHO\ 'HIHQGDQWV NQHZ WKDW WKH GLVUXSWLRQ ZDV FHUWDLQ RU VXEVWDQWLDOO\ FHUWDLQ WR RFFXU

DV D UHVXOW RI WKHLU DFWLRQV

 $V D UHVXOW RI 'HIHQGDQWV¶ LQIHUHQFH ZLWK WKH HFRQRPLF UHODWLRQVKLSV EHWZHHQ WKH

7LQGHU 3ODLQWLIIV DQG 7LQGHU WKH 7LQGHU 3ODLQWLIIV KDYH EHHQ GDPDJHG LQ DQ DPRXQW WR EH

GHWHUPLQHG DW WULDO EXW QRW OHVV WKDQ 

35$<(5 )25 5(/,()

:+(5()25( WKH 7LQGHU 3ODLQWLIIV UHVSHFWIXOO\ UHTXHVW WKH IROORZLQJ UHOLHI

D &RPSHQVDWRU\ GDPDJHV LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO EXW QRW OHVV WKDQ



E 3XQLWLYH GDPDJHV LQ DQ DPRXQW WR EH GHWHUPLQHG DW WULDO

New York State court rules (22 NYCRR §202.5-b(d)(3)(i))


This is a copy of a pleading filed electronically pursuant to
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 54 of 55
CAUTION: THIS DOCUMENT HAS NOT YET BEEN REVIEWED BY THE COUNTY CLERK. (See below.) INDEX NO. UNASSIGNED
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 08/14/2018

This is a copy of a pleading filed electronically pursuant to New York State court rules (22 NYCRR §202.5-b(d)(3)(i))
which, at the time of its printout from the court system's electronic website, had not yet been reviewed and
approved by the County Clerk. Because court rules (22 NYCRR §202.5[d]) authorize the County Clerk to reject
filings for various reasons, readers should be aware that documents bearing this legend may not have been
accepted for filing by the County Clerk. 55 of 55

You might also like