Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 1 of 71
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`U NI T E D S T A T E S DI S T RI C T C O U R T
`S O U T H E R N DI S T RI C T O F N E W Y O R K
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`S E C U RI TI E S A N D E X C H A N G E C O
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`MI S SI O N, :
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`a n d C H RI S TI A N A. L A R S E N,
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`2 0 Ci v. 1 0 8 3 2 ( A T) ( S N)
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`E C F C a s e
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`MI S SI O N’ S
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`P L AI N TI F F S E C U RI TI E S A N D E X C H A N G E C O
`M O R A N D U
`M O F L A W I N O P P O SI TI O N
` T O D E F E N D A N T S C H RI S TI A N A.
`L A R S E N’ S A N D B R A D L E Y G A R LI N G H O U S E’ S
`M O TI O N S T O DI S
`MI S S
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`M E
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`J or g e G. T e nr eir o
`D u g a n Bliss
`R o b ert S. M o y e
`B e nj a mi n H a n a u er
`M ar k R. S yl v est er
`D a p h n a A. W a x m a n
`J o n A. D a ni els
`L a d a n F. St e w art
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`Co u nsel for t he Pl ai ntiff
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` S e c uriti es
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`a n d
` E x c h a n g e
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` C o m missi o n
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`N e w Y or k R e gi o n al Offi c e
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`Br o o kfi el d Pl a c e
` 2 0 0
`V es e y
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` Str e et,
`S uit e
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` 4 0 0
` N e w
`Y or k,
` 1 0 2 8 1
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 2 of 71
`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 2 of 71
`
`TABLE OF AUTHORITIES ................................................................................................
`
`...iv
`
`TABLE OF CONTENTS
`
`PRELIMINARY STATEMENT ..........................................................................................
`
`....1
`
`BACKGROUND: LEGAL FRAMEWORK AND DIGITAL ASSETS ................................
`
`....4
`
`STATEMENT OF FACTS ...................................................................................................
`
`....5
`
`I. BACKGROUND: RIPPLE, LARSEN, AND GARLINGHOUSE
`
`5
`
`II. RIPPLE OFFERED AND SOLD SECURITIES WITHOUT A REGISTRATION
`
`III. DEFENDANTS KNEW' OR RECKLESSLY DISREGARDED THE UNLAW’FUL
`NATURE OF RIPPLE‘S OFFERS AND SALES OF XRP.
`
`A.
`
`Larsen Received and Ignored Specific W’arnings that Offers and Sales of
`XRP Could Constitute Offers and Sales ofSecurities
`
`1.
`
`2.
`
`3.
`
`Larsen Has Experience with SEC Claims of Section 5 Violations.....-.......-.....-...
`
`Larsen Received Two Le?Memos—
`
`Larsen Knew or Recklesslv Disre
`
`ded that XRP W’as Be'
`
`Offered and Soldfl
`
`10
`
`11
`
`4.
`
`Larsen Received Additional \Varnings that XRP \Vas a Security.
`
`B.
`
`Garlinghouse Knew or Recklessly Disregarded that Ripple’s Offer and Sales
`ofXRP Had the Characteristics ofa Securities Offering
`
`ll
`
`1.
`
`2.
`
`Garlinghouse Knew or Recklessly Disregarded the Facts that Made
`Ripple’s Offers and Sales of XRP the Offers and Sales of Sealrities................
`
`Garlinghouse Knew or Recklesslv Disregarded the Legal Risks.
`
`IV. DEFENDANTS SUBSTANTTALLY ASSISTED RIPPLE’S VIOLATTONS.
`
`11
`
`12
`
`15
`
`A.
`
`Defendants Actively Participated in Ripple’s Unregistered Public
`Distribution of Securities with Their Own Offers and Sales of XRP from the
`
`UnitedStates.
`
`15
`
`1.
`
`2.
`
`Defendants Shared Ripple’s Goal of Selling as Much XRP as Possible
`into Markets They Created and Actively Participated in that
`Endeavor
`
`.15
`
`Defendants’ Offers and Sales of KRP Were an Integral Part of
`Ripple’s Public Distribution of KRP.
`
`B.
`
`Defendants Provided Additional Substantial Assistance to Ripple’s
`Violations.
`
`16
`
`17
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`

`

`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 3 of 71
`
`1.  
`
`2.  
`
`L ars e n ........................................................................................................................ .. 1 7 
`
`G arli n g h o us e .............................................................................................................. 2 1  
`
`S T A N D A R D O F R E VI E W ..................................................................................................... 2 3  
`
`A R G U
`
`M E N T ...................................................................................................................... .... 2 4 
`
`I.  
`
`T H E C O M P L AI N T A D E Q U A T E L Y A L L E G E S T H A T D E F E N D A N T S AI D E D
`A N D A B E T T E D RI P P L E’ S VI O L A TI O N S O F S E C U RI TI E S A C T S E C TI O N 5. ........ 2 4  
`
`A.  
`
`T h e C o m pl ai nt A d e q u at el y Pl e a ds T h at D ef e n d a nts K n e w or R e c kl essl y
`Disr e g ar d e d Ri p pl e’s S e cti o n 5 Vi ol ati o n. ........................................................................ 2 5  
`
`1.  
`
`T h e C o m pl ai nt Pl e a ds S uffi ci e nt F a cts t o I nf er t h at D ef e n d a nts
`A ct e d wit h a Hi g h D e gr e e of S ci e nt er. ................................................................... 2 5  
`
`2.  
`
`D ef e n d a nts’ C o ntr ar y Ar g u m e nts Mis a p pl y t h e L a w. .......................................... 2 8  
`
`B.  
`
`T h e C o m pl ai nt A d e q u at el y All e g es T h at L ars e n S u bst a nti all y Assist e d
`Ri p pl e’s Vi ol ati o ns. .......................................................................................................... .... 3 4 
`
`II. 
`
`T H E C O M P L AI N T A D E Q U A T E L Y A L L E G E S T H A T D E F E N D A N T S
`E N G A G E D I N D O M E S TI C O F F E R S A N D S A L E S O F S E C U RI TI E S. .......................... 3 6  
`
`A.  
`
`B.  
`
`C.  
`
`D.  
`
`E.  
`
`F.  
`
`T h e F o c us of t h e S e c uriti es A ct’s R e gistr ati o n R e q uir e m e nts D et er mi n es If a
`P er missi bl e, D o m esti c A p pli c ati o n of t h e St at ut e Is at Iss u e. ....................................... 3 8  
`
`S e c uriti es A ct S e cti o n 5 F o c us es Br o a dl y o n E v er y As p e ct of a P u bli c
`Off eri n g, N ot J ust P arti c ul ar S al es. .............. ..................................................................... 3 9 
`
`1.  
`
`2.  
`
`T h e T er m “ Off er ” G o es B e y o n d its C o m m o n L a w, C o ntr a ct u al
`C o n c e pt. ...................................................................................................................... 4 1 
`
`S e cti o n 5 a n d S e cti o n 4 T o g et h er M a k e Cl e ar t h at t h e R e gistr ati o n
`R e q uir e m e nt’s F o c us Is All As p e cts of P u b li c Off eri n gs. ................................... 4 3 
`
`Morriso n E x pli citl y R e c o g ni z e d t h at R e g ul ati o n S D efi n es W h at C o nstit ut es a
`“ D o m esti c ” P u bli c Off eri n g u n d er S e c uriti es A ct S e cti o n 5. ........................................ 4 4 
`
`D ef e n d a nts E n g a g e d i n a P u bli c Distri b uti o n of S e c uriti es T h at F ail e d t o
`C o m pl y wit h R e g ul ati o n S. ................................................................................................. 4 5  
`
`Morriso n a n d t h e S e c uriti es A ct B eli e D ef e n d a nts ’ Ot h er Ar g u m e nts. ......................... 4 8 
`
`E v e n if Morriso n ’s Tr a ns a cti o n al T est A p pli e d, t h e C o m pl ai nt Pl e a ds
`Tr a ns a cti o ns t h at S atisf y It. ................................................................................................ 5 2  
`
`1.  
`
`2.  
`
`Morriso n ’s Tr a ns a cti o n al T est M ust A p pl y t o All S al es i n D ef e n d a nts’
`P u bli c Distri b uti o n of X R P. ..................................................................................... 5 2  
`
`T h e Morriso n Tr a ns a cti o n al T est is S atisfi e d E v e n wit h R es p e ct t o
`E a c h I n di vi d u al S al e b y t h e U. S. D ef e n d a nts o n n o n- U. S. Pl atf or ms. .............. 5 3  
`
`III.  T H E C L AI M S F O R M O N E T A R Y R E LI E F A G AI N S T L A R S E N A R E TI M E L Y. ......... 5 9  
`
`C O N C L U SI O N .................................................................................................................... ... 6 0
`
`
`
`iii
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 4 of 71
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`T A B L E O F A U T H O RI TI E S
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`P a g e( s)
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`C a s e s
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`A bsol ute Activist V al ue M aster F u n d Lt d. v. Ficeto ,
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`6 7 7 F. 3 d 6 0 ( 2 d Cir. 2 0 1 2) ................................................................................................................ 5 3, 5 5
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`Ar mstro ng v. Mc Al pi n ,
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`6 9 9 F. 2 d 7 9 ( 2 d Cir. 1 9 8 2) ................................................................................................................ 3 5, 3 6
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`As hcroft v. I q b al ,
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`5 5 6 U. S. 6 6 2 ( 2 0 0 9) ................................................................................................................................... 2 3
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`A T SI Co m mc’ ns, I nc. v. S h a ar F u n d, Lt d .,
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`4 9 3 F. 3 d 8 7 ( 2 d Cir. 2 0 0 7) ....................................................................................................................... 2 4
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`B a nco S afr a S. A. C ay m a n Isl a n ds Br a nc h v. S a m arco Mi ner ac ao S. A. ,
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`_ _ F e d. A p p’ x _ _, 2 0 2 1 W L 8 2 5 7 4 3, ( 2 d Cir. M ar. 4, 2 0 2 1) .............................................................. 5 4
`
`& Holt,
`B ar ker v. He n derso n, Fr a n kli n, St ar nes
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`7 9 7 F. 2 d 4 9 0 ( 7t h Cir. 1 9 8 6) .................................................................................................................... 2 6
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`Bell Atl. Cor p. v. T wo m bly ,
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`5 5 0 U. S. 5 4 4 ( 2 0 0 7) ................................................................................................................................... 2 4
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`Bl ue C hi p St a m ps v. M a nor Dr ug Stores ,
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`4 2 1 U. S. 7 2 3 ( 1 9 7 5) ................................................................................................................................... 3 9
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`C avello B ay Rei ns ur a nce Lt d. v. S h u bi n Stei n ,
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`9 8 6 F. 3 d 1 6 1 ( 2 d Cir. 2 0 1 1) ..................................................................................................................... 5 1
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`C hris- Cr aft I n d us. v. B a ngor P u nt a Cor p .,
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`4 2 6 F. 2 d 5 6 9 ( 2 d Cir. 1 9 7 0) .............................................................................................................. 4 1, 4 2
`
`& Co. ,
`Dis ki n v. Lo m as ney
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`4 5 2 F. 2 d 8 7 1 ( 2 d Cir. 1 9 7 1) ..................................................................................................................... 4 1
`
`E C A a n d Loc al 1 3 4 I B E W Joi n t Pe nsio n Tr. of C hi. v. J. P. Morg a n C h ase Co.,
`
`5 5 3 F. 3 d 1 8 7 ( 2 d Cir. 2 0 0 9) ..................................................................................................................... 2 7
`
`G a belli v. S E C ,
`
`5 6 8 U. S. 4 4 2 ( 2 0 1 3) ................................................................................................................ 5 9 F n. 2 0, 6 0
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`Geiger v. S E C ,
`
`3 6 3 F. 3 d 4 8 1 ( D. C. Cir. 2 0 0 4) .......................................................................................................... 4 4, 5 3
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`& Co. v. S. E. C. ,
`Gillig a n, Will
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`2 6 7 F. 2 d 4 6 1 ( 2 n d Cir. 1 9 5 9) ...................................................................................................... 4 4 F n. 1 4
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`i v
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 5 of 71
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`Gi u nt a v. Di ng m a n,
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`8 9 3 F. 3 d 7 3 ( 2 d Cir. 2 0 1 8) ....................................................................................................................... 5 6
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`Gle n- Ar de n Co m mo dities, I nc. v. Cost a nti no ,
`
`4 9 3 F. 2 d 1 0 2 7 ( 2 d Cir. 1 9 7 4) ................................................................................................................... 4 2
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`Glo b al- Tec h A p pli a nces, I nc. v. S E B S. A .,
`
`5 6 3 U. S. 7 5 4 ( 2 0 1 1) ................................................................................................................................... 3 1
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`G ust afso n v. Alloy d Co . I nc.,
`
`5 1 3 U. S. 5 6 1 ( 1 9 9 5) ................................................................................................................................... 3 9
`
`Hero d’s Sto ne Desig n v. Me di terr a ne a n S hi p pi ng Co. S. A.,
`
`4 3 4 F. S u p p. 3 d 1 4 2 ( S. D. N. Y. 2 0 2 0)..................................................................................................... 2 4
`
`I n re Refco I nc. Secs. Litig.,
`
`N o. 0 8 Ci v. 3 0 6 5, 2 0 1 2 W L 9 9 6 9 1 0 ( S. D. N. Y. J a n. 1 7, 2 0 1 2) ........................................................... 3 6
`
`I n re Te zos Sec. Litig.,
`
`N o. 1 7 Ci v. 6 7 7 9, 2 0 1 8 W L 4 2 9 3 3 41 ( N. D. C al. A u g. 7, 2 0 1 8) ......................................................... 5 8
`
`I n re Vive n di U nivers al, S. A. Sec. Litig.,
`
`7 6 5 F. S u p p. 2 d 5 1 2 ( S. D. N. Y. 2 0 1 1)..................................................................................................... 5 7
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`II T v. Cor nfel d,
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`6 1 9 F. 2 d 9 0 9 ( 2 d Cir. 1 9 8 0) ............................................................................................................ 2 7 F n. 8
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`K al nit v. Eic hler ,
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`2 6 4 F. 3 d 1 3 1 ( 2 d Cir. 2 0 0 1) ..................................................................................................................... 2 7
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`Ko kes h v. S E C,
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`1 3 7 S. Ct. 1 6 3 5 ( 2 0 1 7) ................................................................................................................. 5 9 F n. 2 0
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`Logi novs k ay a v. B atr atc he n ko ,
`
`7 6 4 F. 3 d 2 6 6 ( 2 d Cir. 2 0 1 4) .............................................................................................................. 5 3, 5 4
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`M arti n v. Pe psi Bottli ng Co. ,
`
`6 3 9 F. S u p p. 9 3 1 ( D. M d. 1 9 8 6).................................................................................................... 2 7 F n. 8
`
`Mo nse n v. Co nsol. Dresse d Beef Co ., I nc.,
`
`5 7 9 F. 2 d 7 9 3 ( 3 d Cir. 1 9 7 8) ..................................................................................................................... 2 4
`
`Morriso n v. N atio n al A ustr ali a B a n k Lt d. ,
`
`5 6 1 U. S. 2 4 7 ( 2 0 1 0) ............................................................................................................................. p assi m
`
`My u n- U k C hoi v. To wer Rsc h. C a p. L L C ,
`
`8 9 0 F. 3 d 6 0 ( 2 d Cir. 2 0 1 8) .............................................................................................. 5 3 Fn. 1 7, 5 4, 5 7
`
`Nov a k v. K as a ks ,
`
`2 1 6 F. 3 d 3 0 0 ( 2 d Cir. 2 0 0 0) ..................................................................................................................... 2 7
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 6 of 71
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`P ar kce ntr al Glo b al H u b Lt d. v. Porsc he A uto Hol di ngs S E ,
`
`7 6 3 F. 3 d 1 9 8 ( 2 d Cir. 2 0 1 4) ..................................................................................................................... 5 1
`
`Pi nter v. D a hl ,
`
`4 8 6 U. S. 6 2 2 ( 1 9 8 8) ............................................................................................................................ 4 1, 4 8
`
`Pl u m bers’ U nio n Loc. No. 1 2 Pe nsio n F u n d v. S wiss Rei ns ur a nce Co. ,
`
`7 5 3 F. S u p p. 2 d 1 6 6 ( S. D. N. Y. 2 0 1 0)..................................................................................................... 5 7
`
`& Co., I nv. v. S E C ,
`R. A. Hol m a n
`
`3 6 6 F. 2 d 4 4 6 ( 2 d Cir. 1 9 6 6) ..................................................................................................................... 4 4
`
`Rev a k v. S E C Re alty Cor p. ,
`
`1 8 F. 3 d 8 1 ( 2 d Cir. 1 9 9 4) ....................................................................................................................... 8, 9
`
`& Yo u ng ,
`Reves v. Er nst
`
`4 9 4 U. S. 5 6 ( 1 9 9 0) ................................................................................................................................... 8, 9
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`RJ R N a bisco, I nc. v. E uro pe a n Co m m u nity ,
`
`1 3 6 S. Ct. 2 0 9 0 ( 2 0 1 6) ................................................................................................................. 3 8, 3 9, 4 9
`
`R u bi n v. U nite d St ates ,
`
`4 4 9 U. S. 4 2 4 ( 1 9 8 1) ................................................................................................................ 4 0, 4 1, 4 6, 4 7
`
`S afeco I ns. Co. A m. v. B urr ,
`
`5 5 1 U. S. 4 7 ( 2 0 0 7) ..................................................................................................................................... 3 2
`
`Sc he nt ag v. Ne bge n,
`
`N o. 1 7 Ci v. 8 7 3 4, 2 0 1 8 W L 3 1 0 4 0 9 2 ( S. D. N. Y. J u n e 2 1, 2 0 1 8) ........................................................ 5 1
`
`S E C v. A aro n ,
`
`6 0 5 F. 2 d 6 1 2 ( 2 d Cir. 1 9 7 9) ..................................................................................................................... 4 0
`
`S E C v. A h me d ,
`
`3 0 8 F. S u p p. 3 d 6 2 8 ( D. C o n n. 2 0 1 8) .................................................................................................... 5 5
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`S E C v. A p u z zo ,
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`6 8 9 F. 3 d 2 0 4 ( 2 d Cir. 2 0 1 2) .............................................................................................................. 2 4, 2 5
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`S E C v. Arvi da Cor p .,
`
`1 6 9 F. S u p p. 2 1 1 ( S. D. N. Y. 1 9 5 8) .......................................................................................................... 4 2
`
`S E C v. Bio Defe n se Cor por atio n,
`
`N o. 1 2 Ci v. 1 1 6 6 9, 2 0 1 9 W L 7 57 8 5 2 5 ( D. M ass. S e pt. 6, 2 0 1 9), aff’ d s u b no m. S E C v. Morro ne , N o.
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`1 9- 2 0 0 6, _ _ F. 3 d _ _, 2 0 2 1 W L 1 8 5 0 5 5 1 ( 1st Cir. M ay 1 0, 2 0 2 1) ...................................................... 5 1
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`S E C v. Bloc kvest, L L C ,
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`N o. 1 8 Ci v. 2 2 8 7, 2 0 1 9 W L 6 2 5 1 6 3 ( S. D. C al. F e b. 1 4, 2 0 1 9) ..................................................... 4 1- 4 2
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`S E C v. C av a n ag h ,
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`1 F. S u p p. 2 d 3 3 7 ( S. D. N. Y. 1 9 9 7), aff’ d 1 5 5 F. 3 d 1 2 9 ( 2 d Cir. 1 9 9 8) . 3 6 F n. 1 2, 4 0, 4 1, 5 0, 5 9, 6 0
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`vi
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 7 of 71
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`S E C v. C av a n ag h ,
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`4 4 5 F. 3 d 1 0 5( 2 d Cir. 2 0 0 6) ............................................................................................................... 3 6, 5 2
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`S E C v. C hi nese Co nsoli d ate d Be nevole nt Ass’ n ,
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`1 2 0 F. 2 d 7 3 8 ( 2 d Cir. 1 9 4 1) ..................................................................................... 4 0, 4 1, 4 2, 4 3, 4 4, 4 6
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`S E C v. C. M. Joi ner Le asi ng Co. ,
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`3 2 0 U. S. 3 4 4 ( 1 9 4 3) ................................................................................................................................... 4 2
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`S E C v. Co nti ne nt al Co m mo dities Cor p. ,
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`4 9 7 F. 2 d 5 1 6 ( 5t h Cir. 1 9 7 4) .................................................................................................................... 5 0
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`S E C v. Di Bell a ,
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`5 8 7 F. 3 d 5 5 3 ( 2 d Cir. 2 0 0 9) .............................................................................................................. 2 4, 2 5
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`S E C v. Es p u el as,
`
`9 0 5 F. S u p p. 2 d 5 0 7 ( S. D. N. Y. 2 0 1 2)..................................................................................................... 2 9
`
`S E C v. Es p uel as,
`
`9 0 8 F. S u p p. 2 d 4 0 2 ( S. D. N. Y. 2 0 1 2)............................................................................................ ......... 3 0
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`S E C v. F alst aff Bre wi ng Cor p. ,
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`6 2 9 F. 2 d 6 2 ( D. C. Cir. 1 9 8 0) ............................................................................................................ 2 8, 2 9
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`& Co. ,
`S E C v. Gol d m a n S ac hs
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`7 9 0 F. S u p p. 2 d 1 4 7 ( S. D. N. Y. 2 0 1 1)........................................................................................ 5 0 F n. 1 5
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`S E C v. Holsc h u h ,
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`6 9 4 F. 2 d 1 3 0 ( 7t h Cir. 1 9 8 2) .................................................................................................................... 4 0
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`S E C v. H urgi n ,
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`4 8 4 F. S u p p. 3 d 9 8 ( S. D. N. Y. 2 0 2 0) .......................................................................................... 2 5, 2 8, 3 1
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`S E C v. Jo nes,
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`3 0 0 F. S u p p. 3 1 2 ( D. M ass. 2 0 1 8) .............................................................................................. ............. 6 0
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`S E C v. Ker n ,
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`4 2 5 F. 3 d 1 4 3 ( 2 d Cir. 2 0 0 5) .............................................................................................................. 4 4, 5 2
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`S E C v. Ki k I nter active, I nc. ,
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`4 9 2 F. S u p p. 3 d 1 6 9 ( S. D. N. Y. 2 0 2 0)..................................................................................................... 4 2
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`S E C v. Ko kes h ,
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`8 8 4 F. 3 d 9 7 9 ( 1 0t h Cir. 2 0 1 8) ................................................................................................................. 6 0
`
`S E C v. M attessic h ,
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`4 0 7 F. S u p p. 3 d 2 6 4 ( S. D. N. Y. 2 0 1 9).............................................................................................. 2 5, 2 9
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`S E C v. N atio n al Sec urities , I nc.,
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`3 9 3 U. S. 4 5 3 ( 1 9 6 9) ............................................................................................................................ 2 9, 5 0
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 8 of 71
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`S E C v. Nort h A meric a n Rese arc h Develo p me nt Cor por atio n,
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`4 2 4 F. 2 d 6 3 ( 2 d Cir. 1 9 7 0) ............................................................................................. 2 6, 43, 4 4, 4 7, 5 9
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`S E C v. P a ulse n ,
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`N o. 1 8 Ci v. 6 7 1 8, 2 0 2 0 W L 1 9 1 1 2 0 8 ( S. D. N. Y. A pr. 1 8, 2 0 2 0) .............................................. 3 0 F n. 9
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`S E C v. P a ulse n ,
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`N o. 1 8 Ci v. 6 7 1 8, 2 0 2 0 W L 6 2 6 3 1 8 0 ( S. D. N. Y. O ct. 2 3, 2 0 2 0) ........................................................ 2 5
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`S E C v. Pe nt ago n C a pit al Mg mt. P L C ,
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`7 2 5 F. 3 d 2 7 9 ( 2 d Cir. 2 0 1 3) ..................................................................................................................... 6 0
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`S E C v. R alsto n P uri n a Co. ,
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`3 4 6 U. S. 1 1 9 ( 1 9 5 3), v ac ate d o n ot her gro u n ds, 4 4 6 U. S. 6 8 0 ( 1 9 8 0) ....................................................... 4 0
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`S E C v. Rio Ti nto plc ,
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`N o. 1 7 Ci v. 7 9 9 4, 2 0 1 9 W L 1 2 4 4 9 3 3 ( S. D. N. Y. M ar. 1 8, 2 0 1 9) ........................................................ 3 4
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`S E C v. S aso n ,
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`4 3 3 F. S u p p. 3 d 4 9 6 ( S. D. N. Y. 2 0 2 0)..................................................................................................... 3 6
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`S E C v. S u b aye, I nc .,
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`N o. 1 3 Ci v. 3 1 1 4, 2 0 1 4 W L 4 4 8 4 1 4 ( S. D. N. Y. F e b. 4, 2 0 1 4) ............................................................ 2 7
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`S E C v. S ug ar m a n ,
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`N o. 1 9 Ci v. 5 9 9 8, 2 0 2 0 W L 5 8 1 9 8 48 ( S. D. N. Y. S e pt. 3 0, 2 0 2 0) ....................................................... 3 6
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`S E C v. Telegra m Gr p., I nc. ,
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`N o. 1 9 Ci v. 9 4 3 9, 2 0 2 0 W L 1 5 4 7 8 3 8 ( S. D. N. Y. A pr. 1, 2 0 2 0) .......................................................... 5 2
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`S E C v. Telegra m Gr p., I nc. ,
`4 4 8 F. S u p p. 3 d 3 5 2 ( S. D. N. Y. 2 0 2 0)............................................................................................ ......... 3 6
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`S E C v. Wey ,
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`2 4 6 F. S u p p. 3 d 8 9 4 ( S. D. N. Y. 2 0 1 7).............................................................................................. 2 4, 3 6
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`S E C v. W.J. Ho wey Co. ,
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`3 2 8 U. S. 2 9 3 ( 1 9 4 6) ..................................................................................................... 4, 6, 7, 9, 1 0, 3 0, 3 2
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`Sl ayto n v. A meric a n E x press Co.,
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`6 0 4 F. 3 d 7 5 8 ( 2 d Cir. 2 0 1 0) ................................................................................................... ........... 3 3, 3 4
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`S ulliv a n v. B arcl ays P L C ,
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`N o. 1 3 Ci v. 2 8 1 1, 2 0 1 7 W L 6 8 5 5 7 0 ( S. D. N. Y. F e b. 2 1, 2 0 1 7) .................................................. 5 F n. 2
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`& Rig hts, Lt d. ,
`Tell a bs, I nc. v. M a kor Iss ues
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`5 5 1 U. S. 3 0 8 ( 2 0 0 7) ................................................................................................................................... 2 7
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`U nite d St ates v. Bro w n ,
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`5 7 8 F. 2 d 1 2 8 0 ( 9t h Cir. 1 9 7 8) ................................................................................................................. 2 9
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 9 of 71
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`U nite d St ates v. Georgio u ,
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`7 7 7 F. 3 d 1 2 5 ( 3 d Cir. 2 0 1 5) ........................................................................................................ 5 3 F n. 1 7
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`U nite d St ates v. Leo n ar d ,
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`5 2 9 F. 3 d 8 3 ( 2 d Cir. 2 0 0 8) ....................................................................................................................... 2 9
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`U nite d St ates v. N aft ali n ,
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`4 4 1 U. S. 7 6 8 ( 1 9 7 9) ...................................................................................................................... 4 1, 4 2, 5 6
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`U nite d St ates v. Svo bo d a ,
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`3 4 7 F. 3 d 4 7 1 ( 2 d Cir. 2 0 0 3) ..................................................................................................................... 3 1
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`U nite d St ates v. Vil ar ,
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`7 2 9 F. 3 d 6 2 ( 2 d Cir. 2 0 1 3) ................................................................................................................ 5 5, 5 6
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`U nite d St ates v. Z asl avs kiy ,
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`N o. 1 7 Cr. 6 4 7, 2 0 1 8 W L 4 3 4 6 3 3 9 ( E. D. N. Y. S e pt. 11, 2 0 1 8) .................................................... 3 2- 3 3
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`U nite d St ates v. Wells F argo B a n k, N. A. ,
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`1 3 2 F. S u p p. 3 d 5 5 8 ( S. D. N. Y. 2 0 1 5)........................................................................................ 3 4 F n. 1 1
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`W al ker v. T ho m pso n ,
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`4 0 4 F. S u p p. 3 d 8 1 9 ( S. D. N. Y. 2 0 1 9)............................................................................................. 5 F n. 2
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`W atso n v. N. Y. Doe 1 ,
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`4 3 9 F. S u p p. 3 d 1 5 2 ( S. D. N. Y. 2 0 2 0)..................................................................................................... 2 5
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`Wester n Geco L L C v. I O N Geo p hysic al Cor p .,
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`1 3 8 S. Ct. 2 1 2 9 ( 2 0 1 8) ................................................................................................................. 3 9, 4 7, 4 9
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`St at ut e s
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`1 5 U. S. C. § 7 7 b ............................................................................................................... ........................... 4 0, 4 1
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`1 5 U. S. C. § 7 7 d ............................................................................................................... ............... 3 9- 4 0, 4 2, 5 2
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`1 5 U. S. C. § 7 7 e ............................................................................................................... ............................ p assi m
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`1 5 U. S. C. § 7 7 o( b) ............................................................................................................ ................................ 2 4
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`1 5 U. S. C. § 7 7 q( a) ............................................................................................................ ................... 4 9 F n. 1 5
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`1 5 U. S. C. § 7 7l( a) ............................................................................................................ .................................. 5 0
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`1 5 U. S. C. § 7 8 c( a)( 1 0) ........................................................................................................ .............................. 3 1
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`1 5 U. S. C. § 7 7t( d) ............................................................................................................ ................................. 5 9
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`1 5 U. S. C. § 7 8 e ............................................................................................................... ..................... 5 3 F n. 1 7
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`1 5 U. S. C. § 7 8j( b) ............................................................................................................. ........................... p assi m
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`1 5 U. S. C. § 7 8 u( d)( 7) ......................................................................................................... .............................. 5 9
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 10 of 71
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`1 5 U. S. C. § 7 0 0 1 et. s e q. ..................................................................................................... ................ 5 5, 5 6, 5 7
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`2 8 U. S. C. § 2 4 6 2 .............................................................................................................. .................... 5 9 F n. 2 0
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`C alif or ni a Ci vil C o d e § 1 6 3 3. 1 5( d) ............................................................................................ .................... 5 6
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`R ul e s
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`F e d. Ci v. R. P. 1 2( b)( 6)....................................................................................................... ............................. 2 3
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`1 7 C. F. R. § 2 3 0. 4 0 5 ........................................................................................................... ..................... 1 5 F n. 5
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`1 7 C. F. R. § 2 3 0. 9 0 1 .......................................................................................................... ................. 3 7, 4 3, 4 4
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`1 7 C. F. R. § 2 3 0. 9 0 2 ........................................................................................................... ............................... 4 5
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`1 7 C. F. R. § 2 3 0. 9 0 3 ........................................................................................................... ........................ 4 4, 4 5
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`Ot h er A ut h oriti e s
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`G ui deli nes for t he Rele ase of I nfor m atio n by Iss uers W hose Sec urities are i n Registr atio n, R el. 3 3- 5 1 8 0, 1 9 7 1 W L
` 1 2 0 4 7 4, ( S. E. C. A u g. 1 9 7 1) ......................................................................................................................... 4 2
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`H. R. R e p. N o. 8 5, 7 3 d C o n g., 1st S ess. 1 5 ( 1 9 3 3) .............................................................................. ......... 4 0
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`Offs hore Offers a n d S ales , 5 5 F. R. 1 8 3 0 6- 0 1, 1 8 3 0 6, R el. N o. 3 3- 68 6 3 ( S. E. C. M a y 2, 1 9 9 0) ...... 4 4, 4 5, 4 7
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`Re port of I nvestig atio n P urs u a nt to Sectio n 2 1( a ) of t he Sec urities E xc h a nge Act of 1 9 3 4: T he D A O, 1 1 7 S. E. C.
` D o c k et 7 4 5, 2 0 1 7 W L 7 1 8 4 6 7 0 (J ul y 2 5, 2 0 1 7) ..................................................................................... 1 3
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`L. L oss & J. S eli g m a n, 2 S e c uriti es R e g ul ati o n 6 2 7 ( 3 d e d. 1 9 8 9) ............................................................ 4 0
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`Case 1:20-cv-10832-AT-SN Document 182 Filed 05/14/21 Page 11 of 71
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`Pl ai ntiff S e c uriti es a n d E x c h a n g e C o m mi ssi o n ( “ S E C ”) r es p e ctf ull y s u b mits t his
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`m e m or a n d u m of l a w i n o p p ositi o n t o D ef e n d a nts C hristi a n A. L ars e n’s ( “ L ars e n ”) a n d Br a dl e y
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`G arli n g h o us e’s ( “ G arli n g h o us e, ” t o g et h er “ D ef e n d a nts ”) m oti o ns t o dis miss ( D. E. 1 0 5, 1 1 0)
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`( “ M oti o ns ”) t h e S E C’s Fi