Professional Documents
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UNITED STATES DISTRICT COURT
10 NORTHERN DISTRICT OF CALIFORNIA
OAKLAND DIVISION
11
AVNER GREENWALD, individually and on behalf Case No. 18-cv-4790-PJH
12 of all others similarly situated,
CLASS ACTION
13 Plaintiff,
14 vs. PLAINTIFF’S NOTICE OF
RIPPLE LABS INC., et al., MOTION AND MOTION TO
15 REMAND; MEMORANDUM OF
Defendants. POINTS AND AUTHORITIES IN
16 SUPPORT THEREOF
17
Date: October 17, 2018
18 Time: 9:00 a.m.
Courtroom: 3
19
Hon. Phyllis J. Hamilton
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3 PLEASE TAKE NOTICE that on October 17, 2018 at 9:00 a.m., before the Honorable
4 Phyllis J. Hamilton, United States District Judge, at the United States District Court, Northern
5 District of California, 1301 Clay Street, Courtroom 3, Oakland, California 94612, Avner Greenwald
6 (“Plaintiff”) will move this Court for an order, pursuant to 28 U.S.C. §1447(c), remanding this action
7 to the Superior Court of the State of California, County of San Mateo. This motion is based on this
8 Notice of Motion and Motion, the Memorandum of Points and Authorities in support thereof, the
9 Declaration of John T. Jasnoch and the Proposed Order filed herewith, all pleadings and papers filed
10 herewith, arguments of counsel, and any other matters properly before the Court.
13 County of San Mateo. This case only asserts claims under the Securities Act of 1933 (the
14 “Securities Act” or “1933 Act”) and was improperly removed to this Court by Defendants1 pursuant
15 to the Class Action Fairness Act (“CAFA”), 28 U.S.C. §1453. Because the 1933 Act bars removal
16 of actions alleging only 1933 Act claims and 9th Circuit precedent, Luther v. Countrywide Home
17 Loans Servicing LP, 533 F.3d 1031 (9th Cir. 2008), addresses this precise circumstance and holds
18 that the 1933 Act removal bar prohibits removal under CAFA, this case must be remanded.
19 QUESTIONS PRESENTED
20 1. Does the anti-removal provision in Section 22(a) of the 1933 Act prohibit removal
22 2. Should this case be remanded given that controlling 9th Circuit precedent, Luther v.
23 Countrywide Home Loans Servicing LP, 533 F.3d 1031 (9th Cir. 2008), holds that the anti-removal
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25
1
Defendants are Ripple Labs Inc. (“Ripple”), XRP II, LLC (“XRP II”), Bradley Garlinghouse,
26 Christian Larsen, Ron Will, Antoinette O’Gorman, Eric van Miltenburg, Susan Athey, Zoe Cruz,
Ken Kurson, Ben Lawsky, Anja Manuel, and Takashi Okita (collectively, “Defendants”).
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 3 of 9
1 provision of the 1933 Act prohibits removal under CAFA of cases asserting only 1933 Act claims,
6 County of San Mateo, on July 3, 2018, on behalf of all persons or entities who purchased XRP
7 tokens, a virtual currency, from July 3, 2015 through the present. (ECF No. 1-1, Compl., ¶87.) This
8 action asserts only claims brought under §§5, 12(a)(1), and 15 of the Securities Act. On August 8,
9 2018, Defendants removed the action to this Court under CAFA, 28 U.S.C. §1453(b). See Defs’
10 Removal, ¶¶3-4.2 Defendants explicitly do not rely on the general removal statute, 28 U.S.C.
12 Removal was improper because, as the U.S. Supreme Court recently confirmed, the 1933 Act
13 explicitly bars removal of actions bringing only 1933 Act claims. 15 U.S.C. §77v(a); Cyan, Inc. v.
14 Beaver County Employees Retirement Fund, 138 S. Ct. 1061 (2018). Moreover, Defendants’
15 position that the 1933 Act’s removal bar should be disregarded when CAFA is invoked is foreclosed
16 by controlling 9th Circuit law. In Luther, the 9th Circuit squarely held that the 1933 Act’s anti-
17 removal bar prohibits removal under CAFA. 533 F.3d at 1034. The 9th Circuit’s holding is directly
18 applicable here and requires the Court to resolve this motion in favor of remand.
20 II. ARGUMENT
21 A. Controlling Law of this Circuit Requires Remand
22 Directly applicable 9th Circuit authority requires this Court to grant remand. In Luther, the
23 9th Circuit held that section 22(a) of the Securities Act of 1933 provides an “express exception to
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26 2
See Notice of Removal of State Court Action (ECF No. 1) (“Defs’ Removal”).
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 4 of 9
1 removal” that trumps CAFA, meaning that CAFA does not provide a basis for removal of cases that
3 Section 22(a) of the 1933 Act (enacted as part of the Private Securities Litigation Reform Act
4 of 1998 (“PSLRA”)) states, “no case arising under this subchapter and brought in any State court of
5 competent jurisdiction shall be removed to any court of the United States.”4 15 U.S.C. §77v(a).
6 CAFA authorizes removal of class actions where: (1) the amount in controversy exceeds
7 $5,000,000; (2) the putative class has more than 100 members; and (3) any member of the class is a
8 citizen of a state different from any defendant. 28 U.S.C. §§1332(d)(2), (d)(2)(A), 5(B), 1453(b).
9 Luther held that “CAFA’s general grant of the right of removal of high-dollar class actions does not
10 trump §22(a)’s specific bar to removal of cases arising under the Securities Act of 1933.” 533 F.3d
11 at 1034. Luther relied on ‘“a basic principle of statutory construction that a statute dealing with a
12 narrow, precise, and specific subject is not submerged by a later enacted statute covering a more
13 generalized spectrum.”’ Id. (citing Radzanower v. Touche Ross & Co., 426 U.S. 148, 153 (1976)).
14 As here, Luther was a case that alleged only 1933 Act claims. Applying Luther, remand is required.
15 This Court is bound by Luther’s interpretation of federal statutes. “Circuit decisions are stare
16 decisis unless they are overruled by the court en banc or come into conflict with a subsequent
17 decision to which it owes obedience, such as a decision by the Supreme Court.” Hurst v. Prudential
18 Sec. Inc., 923 F. Supp. 150, 155 (N.D. Cal. 1995) (citing Spinelli v. Gaughan, 12 F.3d 853, 855 (9th
19 Cir. 1993); Atonio v. Wards Cove Packing Co., Inc., 810 F.2d 1477, 1478-79 (9th Cir. 1987)). “A
20 district judge may not respectfully (or disrespectfully) disagree with his learned colleagues on his
21 own court of appeals who have ruled on a controlling legal issue[.]” Hart v. Massanari, 266 F.3d
22
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24 In Cyan, the Supreme Court recently confirmed that SLUSA provides no basis for removal of
pure 1933 Act cases. See generally Cyan, 138 S. Ct. 1061. Notably, CAFA was not even raised as a
25 potential source of defeating the removal ban. See id.
26 4
There is an “except clause” to this provision, but it is not applicable here.
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 5 of 9
1 1155, 1170 (9th Cir. 2001). Since it was decided 10 years ago, neither the Supreme Court nor the
3 Indeed, during oral argument in a related case that, unlike this case, involved both 1933 Act
4 claims and state law claims, the Court unequivocally stated that Luther requires remand of pure 1933
5 Act cases. In Coffey v. Ripple Labs, Inc., No. 18-cv-03286-PJH, the Court considered the import of
6 Luther on the remand motion of a plaintiff who asserted both state law and 1933 Act claims. 2018
7 WL 3812076, at *1 (N.D. Cal. Aug. 10, 2018).6 Because of the presence of state law claims, Coffey
8 was materially different from the instant case and the Court’s ultimate decision in Coffey, that the
9 presence of state law claims allowed for removal under CAFA is inapt. However, during oral
10 argument, the Court acknowledged that Luther was controlling precedent and that Luther would
11 have required remand had Coffey only asserted 1933 Act claims. Specifically, the Court stated that it
12 “has no authority to overturn Luther” and that, if the case had been brought with only 1933 Act
13 claims, “it wouldn’t present a dilemma for me[;] I’d remand it, obviously.” Coffey Aug. 1, 2018
14 Hr’g Trans., attached to Declaration of John T. Jasnoch (“Jasnoch Decl.”), Ex. A at 13:11-12 and
15 28:17-19, respectively. This sentiment was echoed in the Court’s opinion, which stated, “defendants
16 did not remove this action based on the Securities Act claim satisfying CAFA’s requirements –
17 likely a losing proposition under Luther.” 2018 WL 3812076, at *4. By this motion, Plaintiff asks
18 no more than that the Court draw the “obvious” conclusion and remand pursuant to Luther.
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21 The Supreme Court’s decision in Dart Cherokee Basin Operating Co., LLC v. Owens, 135 S.
Ct. 547 (2014), is not “clearly irreconcilable” with Luther. Dart Cherokee addressed ‘“whether a
22 defendant seeking removal to federal court is required to include evidence supporting federal
jurisdiction in the notice removal, or whether alleging the required short and plain statement of the
23
grounds for removal [is] enough.”’ Jordan v. Nationstar Mortg. LLC, 781 F.3d 1178, 1183 (9th Cir.
24 2015) (citing Dart Cherokee, 135 S. Ct. at 552-53) This issue is wholly distinct from the issue
decided in Luther. The 9th Circuit has since made clear that Dart Cherokee limited Luther only as
25 related to the presumption against removal – a presumption that generally exists under 9th Circuit
law, but which does not exist for CAFA cases after Dart Cherokee. Id. at 1182-83.
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Coffey has since dismissed his case. (ECF No. 29 in Case No. 18-cv-03286.)
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 6 of 9
1 B. Greenwald’s Foreign Citizenship Has No Impact on the Effect of the 1933 Act
Removal Bar
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In an effort to avoid the result clearly compelled by Luther, Defendants put forth a
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nonsensical argument that Greenwald’s “alienage” status somehow impacts this Court’s remand
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analysis and “takes this case outside the purview of Luther.” Defs’ Removal, ¶¶11-15. This fig leaf
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argument cannot conceal the glaring weakness of Defendants’ position or the fact that they ask the
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Court to ignore controlling precedent. Nothing in the cases cited by Defendants provides a basis for
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this Court not to follow Luther and remand.7 To the extent Defendants argue that this case does not
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properly bring claims under the Securities Act because it addresses “international transactions”
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(Defs’ Removal, ¶14), that issue is separate and apart from Greenwald’s citizenship and, most
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importantly, an argument to be made in a motion to dismiss. That argument is not ripe for
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discussion at this jurisdictional stage.
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C. Defendants’ Improper Removal Has Caused Unnecessary Delay and, Unless
13 Promptly Corrected, Will Cause Inefficiency
14 Defendants’ removal has delayed this case from properly proceeding in state court and
15 threatens to undermine judicial economy. This case was filed over two months ago, on July 3, 2018.
16 Two related class actions are pending in the same state court, San Mateo County, and the instant case
17 is ripe for coordination with those cases. See Zakinov v. Ripple Labs, Inc., No. 18CIV02845
18 (Superior Court, San Mateo) (filed June 5, 2018); Oconor v. Ripple Labs, Inc., No. 18CIV03332
19 (Superior Court, San Mateo) (filed June 27, 2018). Indeed, prior to removal, counsel in this case
21 Zakinov and Oconor allege state law claims on behalf of a class of California purchasers of
22 XRP during the same class period alleged in the instant complaint, July 3, 2015 through the present.
23 Jasnoch Decl., Exs. B and C. Like the instant case, Zakinov and Oconor allege that XRP should
24 have been registered securities – but under California law, rather than federal law. See, e.g., Ex. C,
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New Jersey Carpenters Vacation Fund v. HarborView Mortg. Loan Trust 2006-4 held that
CAFA overrode the 1933 Act’s anti-removal provision to permit removal of case, unless a CAFA
26 statutory exception applied. 581 F. Supp. 2d 581, 583 (S.D.N.Y. 2008). This is in direct conflict
with Luther and thus is contrary to the law of this Circuit.
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 7 of 9
1 ¶¶3-4, 58. Demonstrating the similarity of the issues raised, Zakinov and Oconor point to federal
2 SEC guidance in support of their position. See, e.g., Ex. C, ¶¶65-72; see similarly Compl., ¶¶84-86.
3 Many of the factual allegations in Zakinov and Oconor overlap as they both relate to the creation,
4 sale, and solicitation of XRP. Compare Compl., ¶¶29-77 with Ex. C, ¶¶14-57. Thus, coordination of
5 dispositive motions and discovery makes sense in order to promote judicial economy.
6 Notably, Defendants did not seek to remove Zakinoc and Oconor to this Court. It makes
7 little sense for this case to proceed in federal court while related cases have been consolidated and
8 are proceeding in state court. In the consolidated state case, a Consolidated Complaint is due
9 October 15, 2018. Jasnoch Decl., Ex. D, ¶8. Defendants have until November 29, 2018 to file a
10 demurrer, and a briefing schedule has been put in place for the demurrer. Id.
11 The unnecessary delay caused by Defendants, potential for judicial inefficiency if this case is
12 further delayed, and clarity of the Luther precedent warrant a prompt remand. See similarly Book v.
13 ProNAi Therapeutics, Inc., No. 16-7408, 2017 WL 2533664, at *1 (N.D. Cal. June 12, 2017)
14 (holding that a stay pending the Supreme Court’s consideration of writs of certiorari related to Cyan
16 III. CONCLUSION
17 Based on the foregoing, Plaintiff respectfully requests that the Court remand this action to the
21 s/ John T. Jasnoch
22 JOHN T. JASNOCH
600 W. Broadway, Suite 3300
23 San Diego, CA 92101
Telephone: 619-233-4565
24 Facsimile: 619-233-0508
jjasnoch@scott-scott.com
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− and −
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 8 of 9
1 Thomas L. Laughlin, IV
Rhiana L. Swartz
2 SCOTT+SCOTT ATTORNEYS AT LAW LLP
The Helmsley Building
3 230 Park Avenue, 17th Floor
4 New York, NY 10169
Telephone: 212-223-6444
5 Facsimile: 212-223-6334
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15 Filed 09/07/18 Page 9 of 9
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CERTIFICATE OF SERVICE
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I hereby certify that on September 7, 2018, I authorized the electronic filing of the foregoing
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with the Clerk of the Court using the CM/ECF system which will send notification of such filing to
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the email addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I
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caused to be mailed the foregoing document or paper via the United States Postal Service to the non-
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CM/ECF participants indicated on the attached Manual Notice List.
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s/ John T. Jasnoch
8 JOHN T. JASNOCH
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28 PLAINTIFF’S NOTICE OF MOTION AND MOTION TO REMAND; MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT THEREOF
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15-1 Filed 09/07/18 Page 1 of 2
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UNITED STATES DISTRICT COURT
9 NORTHERN DISTRICT OF CALIFORNIA
OAKLAND DIVISION
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AVNER GREENWALD, individually and on behalf Case No. 18-cv-4790-PJH
11 of all others similarly situated,
CLASS ACTION
12 Plaintiff,
vs. [PROPOSED] ORDER ON
13 RIPPLE LABS INC., et al., PLAINTIFF’S MOTION TO
REMAND
14 Defendants.
Date: October 17, 2018
15 Time: 9:00 a.m.
Courtroom: 3
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Hon. Phyllis J. Hamilton
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PROPOSED] ORDER ON PLAINTIFF’S MOTION TO REMAND
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15-1 Filed 09/07/18 Page 2 of 2
1 The Court, having considered Plaintiff’s Motion to Remand this case to the Superior Court of
2 the State of California, County of San Mateo (“State Court”) and the authorities and arguments
4 IT IS, THEREFORE, ORDERED that Plaintiff’s Motion to Remand is GRANTED and that
5 the Clerk is directed to take all necessary action to effectuate the remand of the above-referenced
7 IT IS SO ORDERED.
8 Dated: _____________ ____________________________________
HON. PHYLLIS J. HAMILTON
9 UNITED STATES DISTRICT JUDGE
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PROPOSED] ORDER ON PLAINTIFF’S MOTION TO REMAND
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15-2 Filed 09/07/18 Page 1 of 2
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UNITED STATES DISTRICT COURT
9 NORTHERN DISTRICT OF CALIFORNIA
OAKLAND DIVISION
10
AVNER GREENWALD, individually and on behalf Case No. 18-cv-4790-PJH
11 of all others similarly situated,
CLASS ACTION
12 Plaintiff,
vs. DECLARATION OF JOHN T.
13 RIPPLE LABS INC., et al., JASNOCH IN SUPPORT OF
PLAINTIFF’S MOTION TO
14 Defendants. REMAND
15 Date: October 17, 2018
Time: 9:00 a.m.
16 Courtroom: 3
17 Hon. Phyllis J. Hamilton
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3 (“Scott+Scott”), counsel for Plaintiff Avner Greenwald. I make this Declaration in support of the
4 motion by Plaintiff to remand this case to the Superior Court of the State of California, County of
5 San Mateo.
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28 DECLARATION OF JOHN T. JASNOCH IN SUPPORT OF
PLAINTIFF’S MOTION TO REMAND
CASE NO. 18-CV-4790-PJH
Case 4:18-cv-04790-PJH Document 15-3 Filed 09/07/18 Page 1 of 31
EXHIBIT A
Case 4:18-cv-04790-PJH Document 15-3 Filed 09/07/18 Page 2 of 31
CERTIFIED COPY
UNITED STATES DISTRICT COURT
APPEARANCES:
2 P R O C E E D I N G S
21 Mr. Copeland?
24 Let me just tell you what the difficulty I'm having with
10 frankly don't know why you even put in the state claims if you
22 vice versa.
22 removal bar.
5 securities --
6 (Simultaneous colloquy.)
16 amending the removal bar because those claims would have been
2 Okay.
4 Anything else?
9 explicitly.
13 subject chapter stated that removal was only proper where the
24 Luther --
1 (Simultaneous colloquy.)
7 in the law.
24 Act claim and a state law claim, does the removal bar in 22(a)
25 serve to bar removal of all of it, not just the '33 Act claim.
8 of Congress." Okay?
22 removal bars.
1 Your Honor, that means that the removal bar doesn't apply to
4 cases --
6 specified exceptions.
10 Honor. And just briefly for the record, the Providence case
13 quote, "by way of vivid contrast," end quote, "the third did
17 Honor, and it's a quote from the case, where Congress includes
2 federal court.
3 Want to make one more point on that, Your Honor. And then
10 construction argument.
11 Remember what CAFA did. CAFA did two things. The first
14 Okay?
19 exactly the way it is. And then if you want to remove, you
24 But that's not what they did. Not only did they expand
6 Beyond that, and the point that Your Honor made is,
9 to removal bars.
19 yes.
21 the remarks, and I will cover the Luther case, Your Honor.
23 with a '33 Act claim and not '33 Act and state law claims.
6 But I'll give you another rationale for why Luther can't
11 the board.
13 to apply the removal bar based on CAFA, to not just '33 Act
14 claims but any other claim brought along with a '33 Act claim.
17 could bring a '33 Act claim, and I could bring 99 other state
18 law claim (sic) that other would be removable, and then none
22 idea that the removal bar is more narrow and CAFA is more
5 should be overturned.
20 it.
24 Honor.
7 situation.
10 And the only way to read 1453 and 1441(a) together would
19 that the removal bar says "no case arising under this chapter
10 claims, and a '33 Act claim. And the Ninth Circuit looked at
12 The Ninth Circuit did not say, Well, there's a '33 Act
14 Actually what happened was it kept the RICO and state law
16 Now, I'm not arguing for you to sever the claims here,
21 But what did exist at the time of the Emrich case was the
23 22(a) and the word "case" in the removal bar of 22(a), the
25 each individual claim and didn't just say, "if you have a '33
19 it's just not accurate and so I want to make sure the court's
20 aware of it.
22 can respond to. But his third major argument -- so his first
23 argument is Luther.
25 isn't indeed any authority for the remand -- for the remand in
8 (Simultaneous colloquy.)
13 cases --
15 respond.
23 you to --
6 brief and his reply brief that one of the reasons why CAFA
11 matter of law.
15 inapplicable.
18 removal statutes.
22 that because you have a removal bar in the '33 Act, unless you
23 can find a path up through the removal bar on the SLUSA side
24 of things, you can't remove the case, and you have to ignore
3 case --
5 (Simultaneous colloquy.)
14 claims.
3 are recommendable under CAFA, the '33 Act claim and the state
4 law claims. The removal bar doesn't apply in the CAFA context
9 me add this, Your Honor. This case is far better than some of
10 the other Supreme Court cases that have dealt with similar
14 you had clearly removable claims and then you had other claims
19 claim under the '34 Act and a derivative claim, state law,
24 Your Honor, you had one case that clearly had original -- one
1 jurisdiction.
12 that the Securities Acts removal bar trumps CAFA, and despite
19 cases.
21 court there was dealing with a statute which went through when
23 individual claims.
6 not in this case. They -- they all arise out of the same
8 securities.
14 Honor?
25 Cherokee and the Supreme Court has said that when you apply
2 against removal.
10 class action.
14 So CAFA alone and the Supreme Court tells the court how to
1 Your Honor.
2 Thank you.
4 that?
10 securities cases.
16 to federal court.
19 bar, and this is what the Ninth Circuit says in Luther, is the
12 MR. TAYLOR-COPELAND: So --
14 the state claims were dismissed, that the case would still be
15 removable?
23 MR. MORRISON: If --
25 court.
2 counsel only had brought '33 Act claims, then you would be in
7 (Simultaneous colloquy.)
9 (Simultaneous colloquy.)
12 claims make this very different from Luther, but I don't want
16 differently.
19 obviously. Yeah.
22 were to deny the motion to remand and keep the case here, I
6 hear it.
11 Anything else?
15 Thank you.
19 --o0o--
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2 CERTIFICATE OF REPORTER
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EXHIBIT B
Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 2 of 16
(1a-CIV-02845
I CMP
: Complaint
,, '~ ' ,,
. "' " .. , - •' '" " .. , '
Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 3 of 16
. '"
,.. '
1 ~- '< ·iNTRODUCTiON'
" 1: ,:;;·;::;;
''-2: 1. Plaintiff, individually and · on:·behalf Of all others similarly situated, by gis
' '"' ····--
;i-"::;:g_ ~~e,~~igned attorneys, alleges the following based upon personal knowledge as to plaintiff an,d
<.:'';; 4 · 'piilln~iffs own acts, and upon information and belief as to all other matters based on ~e
.. :. :::: ~::- .' :~ '
5 _iny9stigation conducted by and through plaintiffs attorneys, which included, among other things,,
"
,, :'> 6'- :<1 '~:f,#yiew of media and reports about the Company and Campany press releases agai:P-St .
'db~~~dants Ripple Labs Inc. ("Ripple" or the "Company"), its wholly owned subsidiary XRi~II,
:- - :_ j_.
,:'i ~d~¢:;<"XRP II"), and Ripple's Chief Executive Officer, Bradley Garlinghouse ("Garlinghous6"):
9. ,;~~~#tiff believes that substantial additional evidentiary support will exist for the allegations ,set '.
·forth herein.
-,, 11 ;_;'·i.H[;' .,stJM:MARv·olf:f'ftt:A:ctto:No -" -.,
~lass ~:tiC>~ -~n ~~~:ii o~:~li.C~ifornia citizens who purchased
'
:.. ;:- 12 { · }Jrm· 2. Plaintiff brings this
~~
':
13 .~i'~"erwise acquired Ripple tokj~,;~;~::j'ii~~~J 'J;;~i:i1d ~~ defendants. •
14 : . ;;;:;1\ 3. 'Ill :
(
XRP, despite its name as a "token," is actually a security under California law.
' . >: ·<:::•; .
15 p~~¢:ular: (i) Ripple uses the funds it raised from the sale of XR? to fund its business ventur~s;·
{~ , ,~~i).~Th~; Company indiscriminately offers XRP for sale to the public at large; (iii) plaintiff and ~e- :
'i
,,~: ,,
l "
~·
,'
"
: ~ ' :' ' . .. ~ ~. ~
" 17 .Cl~((as defined herein) are effectively powerless to control the success of Ripple and XRP; and.:
" 1:~ (i~) .pl~intiff and the Class members' investment is substantially at risk and is without any'
. .: , : ~~ .. ;. '
·~~· ' . ~. -·~ ),~:~i
'
,19: :seco/it~~-
'
:
..
"
2(f : :: ~m::: 4. As a result, defendants were required to register XRP when offering or selling it. '
21: Jhe(~id not. Instead, they made a series of improper statemcn:s which drove up the price ~f :·
"~ '"
24-. This Court ha!?j frrisdiction ·over' the- c~uses of adion asserted herein pursuant tb.
25 the S.aiifornia Constitution, Article VI, section 10, because this case is a cause not given by
'.
··: '.'·: .. :. . ...
1 6 Th~:.vi_q,l~tion!!. Q( l:iw.coroplhlrt~<f. of.her~in pc~l,JP"ed,in:,C.ali.fQmia,':and·:.in);ITg¢
2·p~ inthl~;c9~t~~::·~~r~;,~~~~i~:~H~e de~~~:~~ts·r~~id~:~;:'~~~~t~~ coJ~~. . ., ,·.
3 . . .'x?.::· ...-,... ·:fB~s;bnirf:;h~~~ ~~~~~h~:-~ilii~dicfi~'Ii ;~v~~·· ~a~h-.-~tili~,l~~tg~d~~~~:i~med· h~?~~p :: .
4:: b~~iiuse th~y ~Ql1~~~t bu~in~~~, . 'Yer~ .citii~ns. 9t ()r, t~~~ step~_ici. ~on4:u9t t~!! .i~i~~~(coi11. ()ff~ring
.. ·s (;'ICO,~')~~:;t~ti~~~~~;:: "...... ''·"·'·"" ..., .... ,., ......,,,_, ............,,.;:,·::· ... . ..... ··:·,;. . '.·.
, ...... " "' " ' ' . :~ ~-.;·~. '" ~~·.-::::. .
6.. . .
, , ,. ' ''"" '""''
~anli~_'2?~.~-,~~~~~~:.4:~~E~~;~~rt~~Y·
Def~~,d~~t~ ;
16; {i. Defeilctarif'Ri' ··'re':H;::~'
.·. , .... ·.·.... pp::),, .. ,,,,,co ·"otatiori
..·rp_ .... ·.... :'.'<"With '·i'rinci · ~f exec.u'ti:V~''orficefioc·ate~r'~f
.. :::R,· .. p _, -:: ·,'·,....... . .... ::,:':'.' 31:5.
'· ·:
17 M:di;itgomery~ stil~er;1'2ri<f FJqor~ ~siili:.fran(;is(;o, ,.c_;Jirdciia; :'·Rippi~:,oper~t~s 'RippleN~f; ~'~iob~r :.
18 pa;me~t~:-n~~or~ -:lJ.ase~--~n~~:~ip~kcha~~- t~cfu10:l~gy. t~oug~f:ii~pp~e~'~1?.: ba~:~::~d: ~a~ent .
,·,
<:! ~- ~- J ·>LF :·~·--- ··:. "---~~::>J~ -~:::·.: .;. __ ::: __
1.9 proviqe~s ·c.~ _u~~:~~~- digiilif'as,seFXRP. to··p~~-~~~s~':~~~-;~--~~~~·fg~; ~~~~ia~,~~~F~i,~~,~-'ij:~~al-
20 time ~9ficiwi~e. · ·· .
1~.: . -; b~f,~~?~rxru> rr~~:·~J~~~:d ifabil~ttcomp:~r~:~~;~:'wh~~~fo~ed subs~~i~! ·., ,,
·22 · of Ripple.·: Its pri~bi·p·~I'place of.b~~iness:'i~ in san:·Ftancisd~;::c_arifh~ia. XR£ rl'sold.XRP arid,·:, ··'
23 SoliCited the purch¥e~ of,:)(~ -~m PI~~IlH;,~tJie SI~s for i~ ~,;b~e~~~~ ~:i~~fit :~: '
24 its' parent, R.ipple;·_ang1ts:¢?Cecufly~~;·an.Ci'o}Vllers~ ~ii,chas defeiiti~'~J!nghouse ·:: i: ...
25 . lj. ~fOnd.;;; ~ililingliOUse ~··~upp\e;tb~f~~ ExeCutiVe ~Cer ar:~'J,eeil since, , ..
,,
j
'·'< '
;\ :;
10: · 1;s. Ripp~~. s~l,ls XRP thro,ugh ex~p~g~~ and directly to inves~or,s::/l]l~,.Cpmp~y list~
:
11 the vario~::~_exc~~~~t:::~~--~4ikP. irivesior{6#f:,purch~~ej~~ p!l_::itf;~el?,;~~~l)_'~~-~:~J~--;~o~~ ::
)2. pr(jvi<les:st~p by.st~P:~w-2h~~:i~i~~~~-cti6hs. . . . . . . .. . - . . .. '. :;
· ·""· tHF;~:~::;~· :·:~~:::· ·--.:::·::~:::"· ... -- ., ... : ·:-- .... , . .-~~:+ ·.::·.~:~::!.: . ·. .:~ "; ;t
> 20' ·confl~ted t4e _valu~ of xRP:q'ili its. ofuer so:th~~re effbrts. . .'
. ~-~-~·:::.··:·· ~~>· .·;~~~::_~~----~~.·;:E·~: :;~;;-~::~·~:·:.. -- ~::>··~::;:·::·.:·. ... . ..
~I RIPP.LE USE·s PLAINTIFF ANifTHE CLASS MEMBERS'' ·uNSECURED PASSiVE::" .i
22 ,! ·· L:.:: :~;::<.I~:.ESTME~T-~ !~:~!J.l\lD':J:H~ COMMON:.EN~~~~SE:,::' '" '·'' :!;~-~ .. •:
23.. lt
Ripple" CQI1Cedt;:s,. that it "s~~ls XRP to fund its ope~~tion:):;:~~~:;·~~ornot~ ~e· -:
24 · n¢i~ork. ··This :~llo.w:~. Ripp,le [] to have aspectacularly:*illed: te~- to. dev_elop[la:rid pr,mppte th~ :
2's ~~pie p~otocoi, ~~:~emrori~:ll ·fu~ple ~ol~ neaa; $92 ·milli~n:worth ;~~;;~l~~i~e fou~·;~~art~r. ~
26 : of 2017 aiorie~: ·Ortihf~hi:{~tion and':belief; the saJe' ofXRP ·subkt~~t1hl:dWfu:ti ·anyoih~f ~~~ce -~f }
.,.· . ' ·:: .. . .. ~;· : (:;~:
: :::~~h1~ir:~:;::~=~ti;:~~~~~~~i;;:;~ji~~~=;
6 they}iav~ ri~ar'<:9tri.Piete §o~troJ;,_1S,,.expl~n~c(b~)qW.
7 -· 2~. ~;i~intiif::~~ fu~':Class.:member~;':~vestment:in<x_:uqs'unsecurect an(Fafi-lsk of
8. .io.ss•,;~t ·. ~ll:,:times~;:,l~gely.'d~J~~~i~g :, o~ ,:de~~hdimts': .~~tio~~;:•';!~'t~::d~;~rld~~~:_:jaii::·~k: create ~
~:. ~::~;~~:~~,:::::~:.:~r·::";;lmd:~tr.l~:~~~~~~~:~:
11: )nvestffie#(i~ x,~P. v.;iifli~~ly)b~~ moi¥y. .. : .,
"'
i
. .. "'
"
s "'
,. ..
d~~
fs . -;i)efcndants'Contr:ol Both th'e·Snppiy.ofXRP ildhe.Markefand the:'XRP Ledger,.
,· ~--' ~ __ : :: ..
'' ·.:~'":~ ·. .. ' . --.;:·: :. "' ~-' ': ·: .·:.·~:~:: ~:.-· •.::-- ·----~: :~:· ~: __ : .·. :.... :_:·
' ' " '' '",·
· 22.:·- Sfuce·'its· ·creation, defendants have ·focused .on,·:'hqw,·to create;• •mrunf#~n•. an~ ;'
~ . 1'i: ~crease:· th~:~ ~~l~~:'<>'{m . ..:·Pi;~t,
''" ..
,.t1i~~:: fd~~sect: ..on·..-liinitirig··.t&e
,.,
·,supbtF~£-~x'RP whi~t
. . . . . . . . ... -- .. .. -- .. ·. ;.--:.
also; :; · ;",;, ···~.·~ ~ ~.· ~·
t&· incre.r~~~;:~~~,-us,f~f:i'l:b6r:~~f:t~;:mh~.~t~~:•ap_;tg?;.~~~~i~~::xiU>.·a~.~~~~::~i;~:;·~~.:i:~:;f:;se~~~Y ~~ _.
19 third Iargesfcoin'· by ,ma:rket ·capitalization,. with>a ·market· capitaliz'atio:n ,_of: ~pproximat~W $24· · ·
' ·.~: .•·· • :· ," ~:-~ :: .. -~ . . ' '~!: ;. ·:·· ~:·: . ...... :~;:: .. :~:~::~:~~: ::~~:~~:: .. ~~~;~;: ~ '
io bi!l,~<;m.
21: 23.
' ~
R1ppl~'ipr()y~ded 'hs_fo1md.~rs with'.twe~ty· pilU:9u
" . .' '' '~.. ' : ':· ~' . . "'"
·xRP and. ·h~id.':6~t({the rest.
-::~: "' ': ;
22 deferid?Uts': pl~n .~a~:-io::s~ll' th~ ?ther: eighty,.bil_l~_on.'m_ inb~~ica,Il~, ~never, ~~_duig: IGO. ~n;-
23:: particul~, Rippl~ put-fifty.;five• biliiotiXRP. inio an.escrbw. accou~tjilid:has.the;:~bility to s~ll ~P
;·:<. .. ' ' " ... ~:;· ·,' ,' ·~·; ' .. • ~ :·~·~ :· .·• ~ ~~"···~ .: .. ::, :·:·' ".: '... ::.~ ' '
.. '
.:28. example in the United Stat~s, the Federal Reserve system cor..trols the supply of currency,
•'
1 ..~ry~t~currencies work through distributed ledger technology, whmh has no central administratbr :
2 !,J/~~~tralized data storage. It is the ledger of a cryptocurrency that can record transactio~:;.:;
3 %k~~~n two parties. This instant creation of the XRP security, which its set cap, stands in st~~ ' ~
4 ~~~t:,~t to other well-known cryptocurrencies, such as BitcoiD.,
::s· "~ir16'd.." 1
Ripple created and continues to work on the XRP Ledger, in which XRP!.s,
...
/·t :ad?~t~?n and value depends. 'fhe XRP Ledger, as opposed to Bitcoin, is not decentralized,~~~
8 Ri~pl~: basically admits. The Company has a multiple page ex_I:lanation on "The XRP Ledg~t
:. ' ~;:\: ~>:~ '
9 1• (:on~~~sus Process" on its website. There, Ripple explains how tl:e "nodes" of the network sh~t; i:
10 · ih.ro~ktion about candidate transactions, which validates the t8nsactions. Unlike Bitcoin '~f :~
II Eth~~~' which is open to the world, the XRP Ledger nodes "evaluate proposals from a specifi~
14; set o(peers, called chosen validators [also known as Uniduq 1\ode Lists ("UNLs")]." Th~s6
- ~Tc:~:~ :,·:~ ~.
l3 .UNL~{are chosen by Ripple itself based on what it deems "trusted," meaning nodes that will ri6t
~~: ~II~~~; .,
;'.,
t'5: 26. In its long discussion of the XRP Ledger Consensus Process, Ripple never c~ll~ . :
:
f6 xR:P:;'ct~centralized, though it does confusingly say the ledger ccnsists of "distributed" serv~n,~' : '.
"
:
.,1· : " ·~-~ ' :~ :! ' .
'•
I 7·. .Rathei}it claims to have come up with a plan "to increase dece:::ttralization and ensure that .
~
no' ~" ~~
18\ :~ingle..~ntity has operational control of the XRP Ledger." While the XRP Ledger could one 'day
19:i be d.~~~ntralized, it is not currently. Instead, Ripple admitE that "Beyond our work ~~~
20 dece~tr;uization, we have also focused on refining and improvir:.g the XRP Ledger Consens~~: :
21 .. ProtJ~~i, the algorithm underlying the XRP Ledger." ':' ... '. ·
~ ~i '; ," :
22- 27. On February 6, 2018, BitMEX ran an article titled "The Ripple Story," in th~
' '
43 .wake of XRP's substantial increase in value. In short, the researchers found that "the def~uit
"
•'
24 6~payipur of Rippled nodes effectively hands full control over updating the ledger to til~.
"
"
'
25" Ripp~~.com server" and that "More significant than the disputes is the fact that the Ripple systerrt
.... . ". "> .
26 .... "
27 :1Mi$g ·is ~hen.transactiori~·~e verified and added to the public ledger, known as a blockchaln,
2$ :a.~ -~.l11eans,:iJu-ou¥~,;'¥.hich p.ew bitcoin are released. ·
•
"
4 28. BifMEk
.
~xpl8,ih~~;i~·:r~~~9ping.. thided_ it_ to
"." ' ' .: '~"..
. coich!cte·_that
.. '
tH¢·x~·:,£~4~~r i~-
' '" ' '' " '.. ' ':" " . " : "" : -. " ': ·:.:: :' " ' " . "' .~. ' .
;,•
.s ce~traih~~d:
1
,,-
. 2~:~'---_, _,,:~~:rJ:-~;;f:~:;:Biihl,~~:h:f~:~~,:~~-{f~~,r~:'fep?~,'~~tai_¥~~J1~::,~~~~~;;f,~2:}~~::::·x~y. :; .
ecosy~~~,T·" "Ii\~~-~/~po~-,~~,I:,~~~-:~.t!<?Orid _qu~er ~f 2p17;' the Co~Clf{:~~~tted ~.~~ -~t:p()~t,~nu~:s :
'ts::' !~ w9rk::~r,vthe,xR'PJ~:~edg~~/:iA pwticiilat~:it st~t~d, "[rrt]ost itiipQrtantly,-'W~ ar~.at2~i~r~ting m~ ·
16,, pace of ~ur ifly~si~~~/iAi:the_:~~ Led~~~\o'-b~if~ on i~\P;;.~~~:4p!iffie~:_;~d. sc~l:~i't~ty, ~h ·:
17· .eri~Uic:xiJ:~~:ih~:;~ost iAl~~6~ ~Jt~rprise~g;~~e'digital:ass~(;,' ",,. =' ' "· ·"''·"'" .•. ,., '' . ' .'' .,, ' ;~; .· ,, ::
'' ''"
"
..
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'
.
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.. .. " " '" .. '" "'" .
. <:;
21 31. " · In addition; 'defendants control the value of XRP by co~linuousl_Y;_f~utirig itir ~~ .
.2~ P!e.ss~~.obs~~~pJhe_.!gle.,?f~e security; In the press .release a:mouncing·the:formatjon.oft~e' '; ::
:zs
... : 'CLASS ACTION COMPLAINT ..
.. "'' "
.. "
Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 9 of 16
'
32. -Pi~~'!l~~ing:t}1~_ ~.scrow. account; defend!lllt Garljngb,pu~e -~ta(~c:l :th!'lt, ::';'_Qu~;.go_al i~{ ;_
' : .---~· .: ~·.·:" · · " ' ' · '· ... · ~ .~. ·L'', ,: · ·· .:.c:;:
''. :_,,'., · :. ·~:~.. ::
' '' '· ·:'.~:~.:.i:.·:·:::·
21 •• ~~~.u~.~~~,r:~;~~:,~~t~,tf.~.~~~~,.~~·:'~i~~";j~:~~0~,··~~.i~~C~t:·r~: ;:
22:; 111es~age ·e_ac.h,·ptb¢r;;i_n::r~al~t~fu,e_:~<f~~lifirmpayni~p~_ detags prior ~oinitiating.the trans~ctioi:t ancf ;-
:h=: ;tb- cJhlf~::d~iix~E~i
~ : .:· .:::
~~~~·. ~L~~tii~~~:;;· '. -xv~~,;~,i~~:fof ;2~rp~:ii~~:: pa~~n~::~r~yid_e;~:: ~d. b~~::wh~; ,:
:·: .. · . = . " -~.· . -~~
'
l .. 3.6. I~:()r~;:instan_c:e,;:,_o_n::}l:ln.e: 28,:- 201-7.;-_ :deff;!ndank Qa;linghous~ ,:p~icipated. in :art.
1
Z ,·interview:ci~i"c~~C. Dur~~i;~~~~~te~iew~ ~efe~da~TGariingh~~se:~is~u~~~J'~~;;·~RP ~~:.a •
:·:3, ~ore :stiblt('idi;~;it~k~ss~t.:' 'raHb;hg :.oth~r:· thing~~;_ defendant~ G~lingh~~~~i :highlf~i~d the: .
;::·:.·, .; ·~;:::::~~~;:\_-::~~:~~~:u~~:~~;:::~::.: :>:.:.·~::~~~-~<i~~:~:;:,:·.:: · .. ..·::;:·: · . ~:·. :> :.. _:·;~::\.-~;::~~ ::.. ·--~-- · ·-·-:;;; "" >~~~:. ..
4; :paymen(teqJ.m¢.\Qgy•:.tP~fRippJ.~ .Was' working _on';', Ill.d<;>irig.so, 'defendant. Gafli.nghouse'·agairi :;
5 : c<>nflated:;·~e.'t~illi~:;;gi:;jcRP\~ii~;~oft~are';J~~~e::~as: ~~~~1~1i~~:.. Ti/~ake ,'~rtf~r~' ~O~Se; .
·.6_· :~ipgl~ th~~·.r~i«;~~!~~t::~::priiii~riA;•[;lli~t;:i~ii&i~W:;that:\~ar~A~~hcJiy,,.t\Ve~tea,1Jy;llthe c~~9·
1: reporter.
. "
''
. ' " . ..·. ~:.- ~- ~~:_:~::~~:~;~~;~f ::~~:::::i~: .;·~~---- ' ., . --~~~:~::·.<.::~:~::~2:~~:{: ;; i>·· ~- ~::~ " ' -i: ~ ...,:.:.:: ·.··' ;~:
~ ?,.., de_inat\<i..for_ the tokens:and the price will go up~:· F orXRP.we ~-~VE· seen: because' it's reiiitired, it'~ ;
Ps·i·
.;: l
19;
. . .. " . i ~
t9.
'"'".. .... , "
2'L: · ..
22 ,., 3~~,, ._,,._Mfcles ~bgut rtpple'.~, software p~bd.~~~s ·~ft~n ca~.~-e ·a ris,e in:.fue .price of !XRP,' .
23 even tho~gii"ili~::~o are:~~o~:~fi~~~:-''t)i(e4~ants ~,aye;'fc)stere~~t~~s:~:~~i.~A:~hrough ~~;~-own' .
-24·; 'stat¢~e~f~'and ~~r~t'Weet~::".:' F:<ii~~tanc~~;·~~: May:'j•::·2of7;· Rip~le; quote· t«ieeted ·~J(~f~Ie/rr~k'
,&~~daq.com, ~t~ting ';)Rippi~ ado~tion i~:spar~~~~:ii~tereste~ i~g4i&~ 'which:'had an impre~sive
1
· 25! .;
. . . ' : .
· 27 '·loi;a(cilrrency: a~co~hts ai-o~d;'the world, liquiditY costs· are high.'' xRapid d~aniatically Jowers ' ·
2 g·' the capita.I:r~quirementsfor-~i,quic,lity."
. ' . " ' ·';.· 8~- . ..
CLASS ACTION COMPLAINT
u
Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 11 of 16
u
,,
"
"
'chiiffis t6:.the·co!i'trru:y> '.:-:.: '· _, ,, ' ::· ·;:. · ':::: ·'' ···.::·: :·': ·: ,,. _ ·
23
:- ··~ :· _. It's J19.t. cle~~}<;>}~~ ,:VV.hY:;:J,SitP:wo:u,I~,.b~,}l~.~<i ,bY;::P~ .at~~b ~Rf ~()u~d
"
' " "
'1
:
Defendant Garling~ouse responded by tweeting: "Over the last few months I've . ·
.: ..
~
: '
2:. 'jpo~~~~ with ACTUAL banks and payment providers. They are: indeed pll:iniling to use xRapid· .':
3 (our){RJ> liquidity product) in a serious way .... " Ripple's XRP product manager, tweeted: "Dd:: .'
4.. ·~ou~:nk I left #Bitcoin and joined @Ripple to build bank software? Think again. $XRP." .; 1 • :.
5· 43. Accordingly, as shown above, the defendants ac:ed on behalf of the common1: :
... :'!
'l'
.~.; ·enterpfi'se, with the expectation of increase the value ofXRP, and thus causing a profit. :· .
. i'
::1 ,:
•.• i
: ::1 '"
Plaintiff brings this class actibn irtdi~id~~ily. fir$;;·on behalf of all California' : ·
44 .
. ' j ·.: ...
·9:;1 '<;hiz~~S.:-who purchased or otherwise acquired XRP froin Janua.-y 1, 2013 to the' present (tl::~~....
10.· ·;'Cla~s;)). Excluded from the Class are defendants and their fam:.lies, the officers and directors
11·; :and a{filiates of defendants, at all relevant times, members of their immediate families and theif
12· 'i~ega{~~prcsentatives,
~
heirs, successors, or assigns, and any entity in which defendants have oi. :,
'
\: :I,~: 'i~p~[ic~icable. While the exact number of Class members is unknown to plaintiff at this time an~.'
i6< ·c~~"~1ii~:be ascertained through appropriate discovery, plaintiffbelieves that there are thousand~ ..
t1'i q·(i;n~$1bers in the proposed Class. XRP owners and other members of the Class may b6 .
'i'~ j .i~~~~i~ed from records maintained by Ripple and may be notified of the pendency of this actio~
··::Ii· I :
..
••
1'9.' :by_'m:rii; using the form of notice similar to that customarily used in class actions.
46. Plaintiffs claims are typical of the claims of the members of the Class, as a~l
2'1 ·, members of the Class are similarly affected by defendants' wrongful conduct, as complained o.f
22 · ·herein.
23' 47. Plaintiff,wUI fairly and adequately protect the interests of the members of the'
..
24 • Cl84s''and has retained counsel competent and experienced in class and securities litigation.
25" 48. There are<no unique defenses that may be asserted against plaintiff individually,'
...
26 ~ (l1~tl.ttguished from the other members of the Class. Plaintiff has no interest that is in conflic(
.....
27. ~th, or is antagonistic to, the interests of the members of the Clas5, and has no conflict with any
!~, ' . • :-::;;:- '
-28
~ . . ' '
- ·io::
CLASS Ac'ndN COMPLAINT ·
•
Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 13 of 16
u
·~ ' ~~~~·
:~,: :!~~:,~j~i~f;~i~Ji~~id~~~~~;~bii~~~!ii::~i~:.:;;ae!·
:~~~~~~
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16: FIRST:CAUSE- OF ACTION: ,,
.:'. ,~g~in:s~:AJI.D~f~*!i~#t~,ana noe!d~2s· tor-iiieiuilr~gistefed_,Qfi~l:~~4:sa.l~.~t>,
It 'Securities'lli Vioiatio'n. of'California Corporations
··~~: ~:~~~~~·~:;~; ·~~:· --.·
Code. Sectio.ns-2511
~~r;;~:>· ·: :: .. ;
0. and 255'()3':
::--
·· ·:.~::::·:~~:; :~;:::~~":~; ·:~·~:~~~-··
IS' ,·:·
19- · ' 5-J. Plaintiff;:;:~I?:f~!'IJdra1~~';;,~Y/refe~.~pce·:,and '· i:ealleg~. each:--and,, every .:·rulega~io~
i2of .~cw~~~~~--~P:?~:~i:;~}fd~~~:t~~;~~::~~titoih~:i~~~]ih. .... -
2I:: . · 5~:· Thl~- .ca~~··-qf:A.~tio:rl't:is::l)rpughi:"'pursuant: t_q§Ciiliforniii ·corporatiorls',:(:::o~~: ._.
::22' .:s~c~~gp~,,~5rrQ::~;~:*~~6~~:~~~-eM~~:f,~-i~~,ci~ss,- ag~~~~~:all-~~fend~ruts,~::. - - ._
.. xR}f~lsecuriti~~'~th:iitili~:~~knin 6:filie califomi~;c~"- oratlons'coctc:·, ·.:
23: ' 53. !:;,•:•:•: > g :;::·:·:; ry,::,:.:::C:"''"::i::::'"""' ::: 'ii_::i'
' :~
..
..
,' . 5(). Pl~int'fffav4 m~tn~~rs of::the Class-pwchascd X~co~eqiriii'b!\·from defendants. '
2 ·· 57. .~y re~~;~~;;i{.\~~:-ii~~e~Qihg;.each;:;:~--~~~~ def~h~~!ts h~y~·.u.~~t~~~J'.:~~,~~~~~~, and :
"
;.9
-~·:~:·. ~~~- ·~:~ :~~-~~: ~ -~
~;~i
11., p6rs6.n :5;::~i~u6;~:6F&i~;:;p'~i~i:tiqn,_a~l'~~ offlc~r or:Ripp~~--aJ~or. ~thoJ::jze~t t:~pres_entatiye Jr th~
.
18 other:J~f~~ci-~t's. D~~e~d~t~~:~~pple:·lri~ .da~i~ng~~h~~': eac~-~~f~~~~-~~~~~::~d--i~tl~~:~~ and ~
l9. exerhii~d-the'~~e to;;~ause:ih~:unlai~~f'~fr~i1 hna sal~:~f x~l~c~~uri~l~l :~~~!6escri~~d ·heref~. ,.: :,
20 · 62. b:~fertdan~~ Rippl:(:and Garli~~~ouse,::.:sep~rate~;;·:~/¥~~ether, h~J~<~~cie~t· j
ii iptl~<~ to ha~~·i~Y:·~F Il,@'~'?':Jti~p!t t":,~~i{~ Fsi~~~·~~~~~~· : ·: '' ',,, ' .•.• :
22 · 63. Defen,danis Ripple· ~a Garlingi;J.ouse, :$8paratelf C.ttc}geth~rdo.i:rij(y;j)l3,rticipated' :.
23 in, arid!oi:'aide~:~~;;~.f:tr~~?:.~:ttr ruiJ/~{ii~~~~:,;~h~e to:;~~~~lfi:x~:.· '" '' "'" "" ' . ·,'
24~; :: · PRAYER FOR RELIEF ..
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judgment'· on· his:;:be~alf:'anCI')l:tal;
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:28. Class adtlon, appoiritiP:g plaintiff~s:a Class rewesentative under·califomia Rule of Court }i764, .' ··
.. '- ii:.:... ·
. CLASS ACTION COMPLAINT . - ' ..
u
Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 15 of 16 w
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?:jl B. Awarding damages in favor of plaintiff and the Class against all defendan,t~, ;_
Awarding plaintiff and the Class their reasonable costs and expenses incurred)~f •·
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5' this:~9tion, including counsel fees and expert fees;
Y, D. Awarding rescission or a rescissory measure of da.nages; and
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','~estiitltion, as deemed appropriate by t)j~
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20
ROBBINS GELLER RUDMAN
21 &DOWDLLP
SHAWN A. WllLIAMS (213113) " ..
,' 22 Post Montgomery Center
...
One Montgome:-y Street, Suite 1800
23 San Francisco, CA 94104
24 Telephone: (415) 288-4545
Facsimile: (415) 288-4534
' 25 E-mail: shawnw@rgrdlaw.com
:;::26' DAVID C. WALTON (167268)
BRIAN 0. O'MARA (229737)
.. 27 BRIAN E. COCHRAN (286202)
·-·. is·,, 655 West Broacway, Suite 1900
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Case 4:18-cv-04790-PJH Document 15-4 Filed 09/07/18 Page 16 of 16
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 1 of 30
EXHIBIT C
Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 2 of 30
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 4 of 30
Indeeef'a'feature
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"2: s~cu;hY' i~ higii1j'6e~ti~1ii~~I:li?rup~i~::;~rh.~ c~ll1Pariy;cre~~ed. th~ J9tP t~ic~n\ilid:ili~ri~~se~. sat~~ of9l~: .,
3 ~~kens· in:'order;:to;·~d:;itl{·
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i3 • r~se~~i~li~~: s~~ff~;:~~~~;~86~fhlij':~g~~JR:ih~b~tdf~~ i~ ~:fi;'cii: ·tih£6~ftilii~!~1~Yi8§~;~W~t~,~~poni~ a·
14 ?7a~~~Jof,~~§~~g~~~~~''fjf,~~~~e,§''~~i~~il:4.>: ., .:.
15 ·; 5. Pl~~1if.f' bl}~g~:;~hi{~~if:fo~ 'J~yl¥f!,tpry' r~lief that:~ ·:is.{Ti{fact~''<i' sec~o/ u~(ier:
16; AJ?pliA~P.~~ lavys;':~a·.fqr .d~~;~ge~;:r~~di~~i~n;arii61her reli~f as. det~le.g, hJ~~i~. .:~::::~: . ' ..
19 :Corporati6ri~:::c:6d.e:lJthci":;,,Comox~ti.9J:i~·
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Coq~'\). Jurisqiction:is'',g.otrfet:t:~d :b;·. A.tt~-'\.{::§:u)'
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•'-~ • ' ' <' . •• ' . • .• ' . . • • ' •• • • ... ; • • •. • • ; • •• • .• • ' .. ". . • • .
. :2: ~se4 ~~:;~#~~~: ·ai\~(w~~~D,t,~i~i~s· 9f int~z:~t~t.e, :co~~,er~e~-~9i~gi~g;, ~ut::~9t. l~ted. tti?~:tl1~. ~~C: :' . .
'>3. :int~~~~c·teie~h9~e.eo~uilicat1~~-:a#~nlie fa~ili~esofth~'na~b~ts~curl~~-~~Ice~.' · :. " · .:·.
{ • • • ' • ' ' ~ • • < • -. •• • ' •••• < • " • ':~ } • :-:-- •• • " • • • • • • • " • • " • • • •• " • • <• ••• : •' • '
.1:7'. pmcha~e;>_:or:i~.frotji'plmpti:ff:~i~1¥:c·l~s~l~~-his·,o\vb:
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benefif~(ftlie.pefiefif·ci:rrupple~.,
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,1 ,\vith tli6~xp~da~6n. that these investid~IiiswitUrtcre~e, the t6k:~ris' v~ii~}and~.~ !A~lms:C>f cixchang~ ·. .
' '""' •• < ~-·' ·~ ~'' '. u ,. • " •• • •• : ' • • ::. ··-· ..... -~ •• ·'. ~ ".. {'• : ; ·., ••• < • ~ ~ • • •~ : .... ··~.·· • • • ·' ' •
·2· pro~Qiei~y-ru~pi~~·'ui~:RiPJ>ks)'5t~~is:ba5eda!P~d:~em.Le<JgeJ;~:th~xRP·~~~,CQn5iS!sor ·
: · 3.: '~~~·~~&i~. ?~~·l;cin~~~s~«hwcil a#pt.~d p~riee~sl#actlo~s~ ·. pi_el1f'~ppi~h.~~ons.~ig{i ~4:~e~d :
_, ·~:· ··1rnn~a6ii9~;·to'.~6a~s]\&~c~:·$e~:iel~y:·U1~-~e· caridiaat~:~~adi~¥··~~hghout:th.~.·~eiw~ik.fot
·s· :;;oce~~~~-·: ft~~ac~i~fi~:·ai~· ~e~·_veri±i~d -~~ ·b~cb~~·part:·of ili8jazy~· L6dg~rhi~i~ritlm>~gk~ :
.· 6. 'coh~~~~~s;$r()c.ess,. ··E~~~.tr~s~~~~~~·iU·~RP.:must ti~ ~ade ~Y· ftPd thr~ug~:th~:~::t~~ge~,:w~~~·is
···:.7 ~~~~~~~;:~J!·,d~fe~~~:.;,.·~-·;td'~~::i~ . ~IJ,~ri:·an::~cbo~~:·~#th~·_x.@)~~dgei;::.:~·ti~~i:is:f~Jir~~t~;..·
' . ::iL·.' .'defe~danbi'to'nuuntai~:~iri1hlrilriili acco~t)jaianc~
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~f20 XRP: :F~ennofe 'each ti~e akn;actlon u; .
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ho-foufid:6r; McCaleb'Jollowii@ anLinte.tria:kdisput~{ 'tfi~··ability 'of Rip :IeJq:conttol the flo.w ~f xRP
2. ~etmin~;~~,~~:~~ ~~i~e~~~:,;:~~~ ~.w;~~ ;hili~ £2~:±,: ~'fflJi"i/>~':~·~~bruky .·
3 . ~01 8:..8, I~P9tt::J::>y'BitMEX Re.sear~h st~ted that a test:oftlie Ripple systeip revealed that ·au flv~ public
4 fey~ u~~·t1!:YJ~,",~fr4~o.~~d'dtp'~~f~',"rJI',P,IE:r.~~~lli~'~·fuPP,!,~;:~."~e~aiiy.if,
5 ; \:()mp)~te controi;'of\noyin[fthe l~dgerJofV\icrrd. "4 1'fitfrepor(conclude4't4at Rippl~!s' c.Jaims that the
6 ;~·~ste~·~~~·w1:i~~ib~~~d'':~~Ul~;ihie:mr~I~~dil1~,:a~,;~PIJ1#.e~ient~~~~-~~rtrbii~B·t~~:~;fe~F:~,r~roc~~s·.;
7 • ·As ihe. steward~:of:liie:XRP e.cosy~t~ni'i!d~f~~ciants' slic~~ss .iii:4e\t~Iopi#g;j)rqilf6,~ng, aritf~airitairiipg ·
1:, ~~~~rE:i~::~~;~~sii~~~;:ii;:~~~s~1 .
11 :e,cosysteril, :~.~.·sh tran8:~6tiB~m1xRP·:involves .a.transactfbh 'dih~'Ctl)V:\Yith ,det~riaants:.;, ·--
•< -~ •
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,a ril.m~ber oft~iJ1edial: meas!Jfes;' i,n(!~ljdiiig_registratiotfwith' Fip.GEl":fwith~n '3.0::ctay(of,the.ag~eement .
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 8 of 30
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8 •seciured~escrow·accoU:n:t:: and onr' offer arid'sdl ·limited·amounts of<XRP:al defuled:ihteiVhls, The ·
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 11 of 30
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 23 of 30
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 24 of 30
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i3 Recertns'Ec·dulaance:Undermines. Ripple~s D.enials
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20 · re:gul~t?r~. ~1,~ve ~~g~n to '~t~~y_i~~ ·d~~~g; g1,1idance.;t~<1t: ~ndermhles•· defendEiflt;PciJrii~ls'; an:d tik •
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23 legality of~e~ist~r~q t9iceh.'s~es, ~'lith as th~,s~es o:fXRP,,;uid riiad.e. Clear that sellers:ofuhregist~fed
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19 that thg~,e,: organizing· ~<?gistered offeFin:gs "~ay _be·liable for:vigi~tiog~;:gf the::f~p~r~~ ~~curities : '
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 26 of 30
5. to ptoyi~e:~qme' utility does ri()~ prev¢ntth.e to,Cen frorn:being a -~~c~iitjr, ~· aAd .~¢ie~rs~cill1!Y offeiorn'
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' :17 ···' -lM.]a,ny tQ~~n: ()ff~rings ·app~a(~o h~ve gon~:b-~yond ¢.is ~ori~truct:·~ct. are .mo~e.
·. ancJ.ogous Jo .inter~~ts 'in a.ye.t-to:-be~bUilt. publishiri.g :house\yitp: .the auth9t~. b9~kS.::
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18 · :~d ~ii~trib~tio!i:net~orla;:a11 ~~;~()m~. .1,t.is especitz.lly tro_J!hljw/lJ'lien the p~qmo~e_rs '·
jjf: tl~e$e: offe/';,ngs :emp/t/isiie ;t/t{i.'secondary '·miirket tri#!ing':pote~tial :of these:
·::.:./19 .. .:tokens: .:P,~o$p~~'tiye 'purcl{i#ers 'ar~ being sol{t on' _t/te· j}~tential jor)oke_)z{to .
-:'2o . ini;f:eriS¢ in yafuf!:~:.vit~ the ~bii!ty io locfr in those incr~ases by r4se~Jing th_~·'uiken~ ::.
on :a secondal)i niark¢t ~or to "otherwise profitfrom tit~ tokens. "based on the e.t/oris: .
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'iizvoiv~: ~~~: 'offer:-:'a.~ir:~ale'" (Ji set;urlties,' 'anct4irect1Jiimpiica'ie :the,::s~~uii,ties' ,,
'23' '; regiStr"aiii}n ·reqil{rei:tzeni~' f!-fid otlzer, fnvesiorprotection provisions_ 'of our fetf.erqi '
.... " .slcltrities.:Linvs/ .G¢nerally spe~ing,, these laws provide tha(inve~tprs.· deserve :to .. ·
.:,:2.4 .' -}a~<hv'':Wh~t,.f4~~·ar¢ll?:yesnng iil-;~4,tlie re~eyririt risks~vof~~(L'. ". . ·.' ' ' '... .. . ..
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;16' ::! : 73. Pi~~~tiffbtings'±h~s 'action as'a''class action pursu~t to;§3.82.,.C>fthe Calif(jr~fa Code of · ·
/iJ;. :.civu~:Pr62~d~re''8~;b.~hai.f.~f~''dass''cBfl.s~§##r{of'aii·cii1zen5:·9f¢aiif~~i·~:,~ho:purc;~i~~.d. m:(~e· · ' ·
:·18 : u'cta§~n.:: fm~luded ·~$~ ·t~e:d~~~ .are.d~~~n~~ts. and thi~ raillilie~,-:~~:6·ffi~~~s~"cliteg~~;s ~d affili~~e:~ .
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 28 of 30
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Case 4:18-cv-04790-PJH Document 15-5 Filed 09/07/18 Page 29 of 30
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sale h~~"be¢rVquaHfied ... or'\tP.le~'s 'sucii security•:ot:: ti$lsa~tiof(is:'JiX:empted:':oJ.::'p.otsubje6~--t9.
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Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 1 of 16
EXHIBIT D
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 2 of 16
18
19
20
21
22
23
24
25
26
27
28
2 PLEASE TAKE NOTICE that on August 30, 2018, the Court entered the
3 Stipulation and Order Consolidating Related Actions and Related Matters, a true and correct
8
STEPHEN J. ODDO
9
600 B Street, Suite 1900
10 San Diego, CA 92101
Telephone: (619) 525-3990
11 Facsimile: (619) 525-3991
E-mail: brobbins@robbinsarroyo.com
12 soddo@robbinsarroyo.com
ecarrino@robbinsarroyo.com
13
ROBBINS GELLER RUDMAN
14 & DOWD LLP
DAVID C. WALTON (167268)
15 BRIAN E. COCHRAN (286202)
655 West Broadway, Suite 1900
16 San Diego, CA 92101
Telephone: (619) 231-1058
17 Facsimile: (619) 231-7423
E-mail: davew@rgrdlaw.com
18 bomara@rgrdlaw.com
bcochran@rgrdlaw.com
19
Co-Lead Counsel for Plaintiffs
20
SHAWN A. WILLIAMS (213113)
21 Post Montgomery Center
One Montgomery Street, Suite 1800
22 San Francisco, CA 94104
Telephone: (415) 288-4545
23 Facsimile: (415) 288-4534
E-mail: shawnw@rgrdlaw.com
24
Additional counsel for Plaintiff Vladi Zakinov
25
26
1292660
27
28
-1-
NOTICE OF ENTRY OF ORDER
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 4 of 16
1 DECLARATION OF SERVICE
3 1. That declarant is and was, at all times herein mentioned, a citizen of the United
4 States and a resident of the County of San Diego, over the age of 18 years, and not a party to or
5 interest in the within action; that declarant's business address is 600 B Street, Suite 1900, San
26
27 KATHERINE B. SCHEELE
28
-2-
NOTICE OF ENTRY OF ORDER
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 5 of 16
In re Ripple Labs Inc. Litigation, Lead Case No. 18CIV02845
1292662
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 6 of 16
EXHIBIT A
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 7 of 16
b-A
ROBBINS ARROYO LLP
BRIAN J. ROBBINS (190264)
STEPHEN J. ODDO (174828)
ERIC M. CARRINO (310765)
1
600 B Street, Suite 1900
San Diego, CA 92101
FILED
SAN MATEO COUNI'
Telephone: (619) 525—3990
'
Dept: 16
Defendants. Date Action Filed: June 5, 2018
OOflQM-PWNHOKOOONO‘sUl-bkflND—‘O
VVVVVVVVVVVVVVVVVVVVVVVVVVV
‘
DAVID OCONER, Individually and on Case No. 18-CIV-03332
Behalf of All Others Similarly Situated,
Plaintiff, 153—
(1111—02845
l
Isiipulation 81 Order
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Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 9 of 16
1. The above-captioned actions pending in this Court (the "Related Actions") make
substantially the same allegations against defendant Ripple Labs Inc. ("Ripple" or the
unnecessary duplication of effort, counsel for the respective parties in the Related Actions
hereby enter into this Stipulation and [Proposed] Order Consolidating Related Actions and 1,
3. Counsel for the parties to this Stipulation include Robbins Arroyo LLP 1
' ("Robbins Arroyo") and Robbins Geller Rudman & Dowd LLP ("Robbins Geller") On behalf of
10 plaintiff Vladi Zakinov; Robbins Arroyo on behalf of David Oconer (collectively, "Plaintiffs"); .
‘7
11 'Skadden, Alps, Slate, Meagher & Flom LLP and Debevoise & Plimpton LLP on behalf of
12 defendants Ripple Labs, Inc., XRP II, LLC, and Bradley Garlinghouse (collectively,
13
'
"Defendants").
I
14 4. The parties agree that it would be duplicative and wasteful of the Court's
15 resources for Defendants named in the Related Actions to have to respond to the individual
16 complaints prior to the agreed upon consolidation and in light of the anticipated filing of a _
17 consolidated complaint. Therefore, the parties agree that Defendants need not respond to the
20 21, 2018, it was assigned to the Honorable Richard H. DuBois, Department 16, for all purposes.
21 A complex case status conference in the Oconer action is set for August 29, 2018.
22 4
CONSOLIDATION
23 6. The following Related Actions are hereby consolidated for all purposes,
28
1- 1 _
STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED ACTIONS & RELATED MATTERS
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 10 of 16
H Every pleading filed in the Consolidated Action, or in any separate action included herein, shall
L93
SUPERIOR COURT OF THE STATE OF CALIFORNIA
4}
COUNTY OF SAN MATEO
U1
g CLASS ACTION
“’3
GO
ALL ACTIONS.
)
,.)
KO
7. The files of the Consolidated Action shall be maintained in one file under Master
I--\
O
b—A
4}
agreed upon by the parties. If filed, the Consolidated Complaint shall be the operative
complaint and shall supersede all complaints filed in any of the actions consolidated herein.
r—-\
(J!
Defendants shall respond to the operative complaint or Consolidated Complaint within 45 days .
)—-t O\
after service, unless otherwise agreed by the parties. In the event that Defendants file any
)-‘ \l
motions directed at the operative complaint or Consolidated Complaint, the opposition and
)-‘ 00
Ereply briefs shall be filed within 45 and 20 days, respectively, of the motions, unless otherwise
i—d
\D
agreed upon by the parties. Counsel agrees to confer to select a hearing date.
NO
APPOINTMENT OF A LEADERSHIP STRUCTURE
NH
9. The Plaintiffs agree that Robbins Arroyo and Robbins Geller shall serve as Co-
[\J N
Lead Counsel for Plaintiffs ("Co-Lead Counsel") in the Consolidated Action, and Defendants
N U) i
take no position on the Court's appointment of Co—Lead Counsel for Plaintiffs or the
NA
.
responsibilities assumed by that Co—Lead Counsel.
[\J U!
10. Plaintiffs agree that Co—Lead Counsel shall have sole authority to speak for ,
N O\
Plaintiffs in matters regarding pro-trial procedure, trial, and settlement and shall make all work '
[\J \I
N 00
-2-‘
STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED ACTIONS & RELATED MATTERS
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 11 of 16
assignments in such manner as to facilitate the orderly and efficient prosecution of the .
activities and appearances on behalf of Plaintiffs. No motion, request for discovery, or other i
pre—trial or trial proceedings shall be initiated or filed by any Plaintiff except through Co-Lead
\OOOQO'xU‘s-P
Counsel.
12. Plaintiffs agree that Co—Lead Counsel shall be available and responsible for ‘,
'
communications to and from this Court, including distributing orders and other directions from-
the Court to counsel, and shall be reSponsible for communication with Defendants' counsel on
10 matters of case administration and scheduling. Co—Lead Counsel shall further be responsible for:
ll creating and maintaining a master service list of all parties and their respective counsel.
12 13. Defendants' counsel may rely upon all agreements made with Co—Lead Counsel, '3
or other duly authorized representative of Co—Lead Counsel, and such agreements shall be
:
13
17 transactions and/or events as the Related Actions which is currently pending in, subsequently
Litigation, Lead Case No. 18-CIV-02845, is hereafter or has been filed in, remanded to, or
21 transferred to this Court, counsel for the parties shall call such filing, remand, or transfer to the :
22: attention of the clerk of this Court for purposes of moving the Court for an order consolidating
23' such case(s) with In re Ripple Labs Inc. Litigation, Lead Case No. 18—CIV—0284S. Counsel for
24' the parties will further assist in assuring that counsel for the parties in such subsequent
action(s)
26:
27.
'
28
‘
-3- ‘
'STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED ACTIONS &RELATED MATTERS
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 12 of 16
'
IT IS SO STIPULATBD.
\lO’xUl-bUJN
‘ '
(’ S 'EPiIbNTODDO
'
15 §
BRIAN o, osMAgA (229737)
'.
16
DAVID C. WALTON (167268)
17
BRIAN E. COCHRAN (286202)
655 West Broadway, Suite 1900
18' San Diego, CA 92101
Telephone: (619) 231-1058
Facsimile: (619) 23 1-7423
19
E—mail: davew@rgrdlaw.com
20 bomara@rgrdlaw.com
bcochran@rgrdlaw.com
21
Pr0posed Co—Lead Counsel for Plaintiffs and
' Counsel for Plaintiff Vladi Zakinov
22
23 .
SHAWN A. WILLIAMS (2131 13)
Post Montgomery Center
One Montgomery Street, Suite 1800
24" San Francisco, CA 94104
Telephone: (415) 288-4545
25
Facsimile: (415) 288-4534
E-mail: shawnw@rgrdlaw.com
26f
27
Additional counsel for Plaintiff Vladi Zakinov
28
-4-
STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED ACTIONS & RELATED MATTERS
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 13 of 16
la)
How/f ”7cm”
PETERB MORRISON
‘A
Peter B. Morrison
Virginia F. Milstead
SKADDEN, ARPS, SLATE, MEAGHER
& FLOM LLP
300 South Grand Avenue, Suite 3400
Los Angeles, CA 90071
\ooeqmu:
Telephone: (213) 687-5000
Facsimile: (213) 687-5600
Email: petermorrison@skadden.com
Virginia.milstead@skadden.com
John Neukom
SKADDEN, ARPS, SLATE, MEAGHER
& FLOM LLP
525 University Avenue, Suite 1400
Palo Alto, CA 94301
Telephone: (650) 470—4500
Facsimile: (650) 470-4570
Email: john.neukom@skadden.com
, 111286406
-5-
STI'PULATION‘ & [PROPOSED] ORDER CONSOLIDATING RELATED ACTIONS '& RELATED MATTERS ,
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 14 of 16
ORDER
)—-l
‘
The above Stipulation Consolidating Related Actions and Related Matters having been
IT IS SO ORDERED.
\OOOVQUI-BUJN
DATED: 5/] 7‘ , / 3’ HONORABLE‘RICHARD H; DUBOIS’
JUDGE OF THE SUPERIOR COURT
MMMNNNNNNHr—awr—Ap—Ir—A—t—ay—AH
Wumm-P‘J-‘Nb‘OOOOQO’xUI-h-WNHO
—6-
STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED ACTIONS & RELATED MATTERS
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 15 of 16
DECLARATION OF SERVICE
I, the undersigned, declare:
'
1. That declarant is and was, at all times herein mentioned, a citizen of the United
'
States and a resident of the County of San Diego, over the age of 18 years, and not a party to or
interest in the within action; that declarant's business address is 600 B Street, Suite 1900, San
16
By depositing in a box or other facility regularly maintained by UPS, an
express service cairier, or delivered to a courier or driver authorized by said
express service carrier to receive documents, in an envelope designated by the
17
said express service carrier, with delivery fees paid or provided for, addressed
to the parties on the attached Service List.
18
Based on a court order or an agreement of the parties to accept service by e~
191‘;
mail or electronic transmission, I sent the documents described herein to the
persons at the e—mail addresses on the attached service list. I did not receive,
203:
1
within a reasonable time after the transmission, any electronic message or
other indication that the transmission was unsuccessful.
21
22'
3. That there is a regular communication by mail between the place of mailing and
23 ,
the places so addressed.
24 g I declare under penalty of perjury under the laws of the State of California that the
"
25:”foregoing is true and correct. Executed this August 23, 2018,
‘
at San D13
26‘
-7-
STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED ACTTONS & RELATED MATTERS
Case 4:18-cv-04790-PJH Document 15-6 Filed 09/07/18 Page 16 of 16
1278419