n! r iaj JS«44C/SDNY CIVIL COVE REV. 4/2014 14 Cf "PtSJJwH wRovef^iBrana'tne information contained herein neither replace nor supplement the filing and service qtjL pleadings or other papers as required bylaw, exceptas provided bylocal rulesofcourt. Thisform, approved bythe 2 1 2014 Judicial Conference ofthe United States inSeptember1974, is required foruse ofthe Clerk ofCourtforthe purposeof initiating the civil docket sheet.
PLAINTIFFS DEFENDANTS BRIDGEWATER ASSOCIATES, LP CONVOYFUNDS, LP, CONVOYFUND, LP, CONVOYGLOBAL FUND,LP, CONVOYINVESTMENTS, LLC, CONVOYMACRO FUND, LP, CONVOYOPTIMAL FUND, LP, CONVOYPREMIUM FUND,LP, WENQUAN WU, AND HOWARD WANG ATTORNEYS (FIRM NAME, ADDRESS, ANDTELEPHONE NUMBER ATTORNEYS (IF KNOWN) Atif Khawaja , KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212)446-4800 Facsimile: (212)446-6460 • CAUSE OFACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE ABRIEF STATEMENT OF CAUS^ (DO NOTCITEJURISDICTIONAL STATUTES UNLESSDIVERSITY) False advertising inviolation of section 43(a)(1)(B) ofthe Lanham Act. See 15 U.S.C. § 1125(a)(1)(B).
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UNITED STATES DISTRICT COURT (NEW YORK SOUTHERN) ORIGINAL BB00EB\Cfc UNITED STATES DISTRICT COURT JVJDG6 SOUTHERN DISTRICT OF NEW YORK
BRIDGEWATER ASSOCIATES, LP ) 14 CV 8418 Plaintiff, ) Civil Action No.
CONVOY FUND, LP, ) CONVOY FUNDS, LP, ) CONVOY GLOBAL FUND, LP, ) CONVOY INVESTMENTS, LLC, ) CONVOY MACRO FUND, LP, ) CONVOY OPTIMAL FUND, LP, ) CONVOY PREMIUM FUND, LP, ) WENQUAN WU, AND ) HOWARD WANG. )
Defendants. )
COMPLAINT '3 <•' • Plaintiff Bridgewater Associates, LP ("Bridgewater"), by and through its attorneys,0
Kirkland & Ellis LLP, for its Complaint against Convoy Fund, LP, Convoy Funds, LP, Convoy ---i
,— O Global Fund, LP, Convoy Investments, LLC, Convoy Macro Fund, LP, Convoy Optimal Fund, -^
LP, and Convoy Premium Fund, LP (together, "Convoy"), and Wenquan WuandHoward Wang
(collectively with Convoy, the "Defendants"), hereby alleges as follows:
NATURE OF THE CASE
1. This action arises out of a series of false and misleading advertising claims published by Convoy and its founders, Wenquan "Robert" Wu and Howard Wang, about their affiliation with Bridgewater. As one of the largest and most successful hedge fund firms in the world, Bridgewater is widely recognized by insiders as both a market- and thought-leader in the field of investment management. Fully aware of Bridgewater's venerable reputation, Mr. Wu and Mr. Wang tried to publicize their own newly-formed competing hedge fund, Convoy, by
lying to the market about their former roles at Bridgewater. Despite having served in only low-
ranking roles at Bridgewater with limited responsibility, Mr. Wu and Mr. Wang have tried to
pass themselves off in several public forums as former key figures responsible for core aspects of
Bridgewater's business.
2. They were nothing of the sort. In reality, Mr. Wu and Mr. Wang were junior-
level Bridgewater employees who left Bridgewater in 2010 and 2012, respectively. Despite
agreeing to inform Bridgewater of their post-employment plans before pursuing any such plans,
Mr. Wu and Mr. Wang kept their competitive ambitions hidden—telling Bridgewater that they
were "traveling," "ballroom dancing," and only passively advising "friends and family" on how
to invest their money. Mr. Wu and Mr. Wang sustained their charade until their non-compete
periods with Bridgewater ended, at which point they began marketing Convoy as a "global
macro investment hedge fund" that caters to the very clients that Bridgewater has successfully
serviced for years.
3. Rather than promote their new venture honestly, Defendants elected to trade off
of Bridgewater's hard-earned reputation. To that end, Defendants advertised Convoy by
exaggerating and misrepresenting their short, limited stints at Bridgewater to suggest an
affiliation between the two firms. Indeed, although Mr. Wu and Mr. Wang were only junior
members of Bridgewater's information technology and Client Services departments respectively,
Defendants published extravagant claims on Convoy's website and elsewhere about Mr. Wu and
Mr. Wang's prior roles and responsibilities at Bridgewater, including that:
• Mr. Wang—one of several hundred junior analysts to have worked in Bridgewater's Client Services department during the time he was there—personally "managed" multi-billion dollar "portfolios" for Bridgewater and was "part of a 3-member investment team responsible for overseeing and marketing" Bridgewater's $70 billion All Weather fund; and
• Mr. Wu, a software engineer who primarily worked on coding for Bridgewater's client fee calculators, was on "the team that built and oversaw" the various "critical components" of Bridgewater's extensive company-wide "operations systems."
4. Bridgewater has confronted Defendants about these statements and other
troubling behavior. Instead of cooperating with Bridgewater, Defendants' conduct has only
raised further concern. For example, Defendants selectively took down some, but not all, oftheir
misleading statements and have mysteriously hidden the bulk of Convoys' website behind a
password. Defendants have refused to confirm that they will make no similar false advertising
claims in the future. In fact, even after Bridgewater alerted Defendants of their harmful and
inaccurate statements, Defendants published and submitted the very same exaggerated claims to
no less than the U.S. Patent and Trademark Office in support of a trademark application for
Convoy. And despite multiple requests by Bridgewater, Defendants have refused to identify the materials that they continue to possess from their brief employment at Bridgewater.
5. Bridgewater has thus been forced to bring this action to compel cessation of
Defendants' publicly-available false advertising claims, to enjoin Defendants from making any
similar false advertising claims in the future, and to recover for damages suffered as a result of
Defendants' actions.
JURISDICTION AND VENUE
6. This action arises under the Lanham Act, 15 U.S.C. §§ 1051 et seq. Jurisdiction is proper in this Court pursuant to 15 U.S.C. § 1121, and 28 U.S.C. §§ 1331, 1338(b), 1367(a).
7. This Court has personal jurisdiction over Defendants, because Defendants are all residents ofthe state ofNew York and regularly transact business in the state ofNew York.
8. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) and (c). THE PARTIES
9. Bridgewater Associates, LP is among the world's most preeminent investment
management firms. Headquartered in Westport, Connecticut, Bridgewater offers hedge fund
products to institutional clients and utilizes a global macroinvestment approach.
10. Convoy Funds, LP is a Delaware limited partnership. Upon information and
belief, Convoy Funds, LP is an entity through which Convoy offers a hedge fund product to
institutional clients and also purports to utilize a global macro investment approach. Convoy
Funds, LP's principal place ofbusiness is 307 E. 44th St., Apt. 819, New York, New York 10017.
11. Convoy Fund, LP is a Delaware limited partnership. Upon information and
belief, Convoy Fund, LP is an affiliate of Convoy Funds, LP or an entity through through which
Convoy offers a hedge fund product and its principal place of business is 307 E. 44th St., Apt.
819, New York, New York 10017.
12. Convoy Global Fund, LP is a Delaware limited partnership. Upon information
and belief, Convoy Global Fund, LP is an affiliate of Convoy Funds, LP or an entity through
through which Convoy offers a hedge fund product and its principal place of business is 307 E.
44th St., Apt. 819, New York, New York 10017.
13. Convoy Macro Fund, LP is a Delaware limited partnership. Upon information
and belief, Convoy Macro Fund, LP is an affiliate of Convoy Funds, LP or an entity through through which Convoy offers a hedge fund product and its principal place of business is 307 E.
44th St., Apt. 819, New York, New York 10017.
14. Convoy Optimal Fund, LP is a Delaware limited partnership. Upon information and belief, Convoy Optimal Fund, LP is an affiliate of Convoy Funds, LP or an entity through through which Convoy offers a hedge fund product and its principal place of business is 307 E. 44th St, Apt. 819, New York, New York 10017. 15. Convoy Premium Fund, LP is a Delaware limited partnership. Upon information and belief, Convoy Premium Fund, LP is an affiliate of Convoy Funds, LP or an entity through through which Convoy offers a hedge fund product and its principal place of business is 307 E.
44th St., Apt. 819, New York, New York 10017.
16. Convoy Investments, LLC is a Delaware limited liability company through which
Convoy is now marketing and offering its Convoy hedge fund. Upon information and belief,
Convoy Investments, LLC's principal place of business is 501 5th Avenue, Suite 427, New York,
New York 10017.
17. Wenquan "Robert" Wu is a founder and principal of Convoy. Upon information and belief, Mr. Wu resides at 307 E. 44th St, Apt. 819, New York, New York 10017.
18. Howard Wang is a founder and principal of Convoy. Upon information and belief, Mr. Wang also resides at 307 E. 44th St., Apt 819, New York, New York 10017.
BACKGROUND OF THE DISPUTE
A. Bridgewater and Its $70 Billion "All Weather" Hedge Fund.
19. Hedge funds are private investment vehicles typically comprised of a portfolio of investments that are actively managed using proprietary investment strategies.
20. Founded in 1975 by Ray Dalio, Bridgewater is a global investment firm that is widely heralded today as one of the largest and most successful hedge fund firms in the world.
Industry insiders and investors alike recognize that Bridgewater's position as a market leader is built upon a unique understanding of global financial markets, which is driven by Bridgewater's unmatched investment in economic research. Indeed, Bridgewater has devoted significant resources over the last four decades mastering economic markets and the forces that drive them.
Bridgewater's clients recognize that Bridgewater's understanding of marketplace forces has enabled it to identify and master a set of fundamental "timeless and universal" economic truths that hold true "across time" and "across countries." With that highly valuable and proprietary knowledge, Bridgewater is able to craft investment portfolios that differ substantially from traditional approaches.
21. As a result of this ongoing, resource-intensive investment in research,
Bridgewater has been able to achieve remarkable results for its clients. Within the past year alone, Bridgewater was voted as the #1 firm in the industry by investors in independent client satisfaction surveys by Cogenthedge and IPE magazine. Before that, Pensions & Investments, an international newspaper focused exclusively on money management, rated Bridgewater as one of the top four managers in the industry in multi-asset class solutions for institutional investors.
Bridgewater has also ranked at the top of Institutional Investor's "world's top 100 hedge funds" list and received such distinctions as the "Macro-Focused Hedge Fund Finn of the Year," aiCIO's "Hedge Fund Industry Innovation Award," and Absolute Return's "Management Firm of the Year."
22. Bridgewater offers its institutional investors several exclusive hedge fund products that are consistently ranked among the best in the world. One such product is
Bridgewater's "All Weather" fund. Launched in 1996, the All Weather fund is comprised of holdings spanning multiple asset classes and dozens of individual markets across the world. The
All Weather fund relies on an investment strategy known as "risk parity," which prioritizes the ability to generate stable returns regardless of shifts in surrounding economic conditions. The
All Weather fund's "risk parity" investment strategy was created by Bridgewater's founder, Ray
Dalio, along with a handful ofBridgewater senior investment officers.
23. Today, Bridgewater commands over $150 billion in assets under management.
Over $70 billion ofthose assets are currently invested in the All Weather fund. B. In 2007 and 2008, Robert Wu and Howard Wang Join Bridgewater as Junior-Level Employees.
24. Convoy's co-founders and principals, Robert Wu and Howard Wang, are former
junior-level Bridgewater employees who worked in Bridgewater's information technology and
Client Services departments, respectively.
25. Mr. Wu joined Bridgewater in February 2007 as a software developer in
Bridgewater's internal finance department. In that role, Mr. Wu's primary responsibilities
involved coding isolated portions of software applications used to calculate certain Bridgewater
fees. In April 2008, Mr. Wu was transferred to the Core Technology department, which is
responsible for maintaining the different information technology systems and applications used
at Bridgewater. Mr. Wu's role in Core Technology again related to discrete coding projects.
26. In September 2008, Mr. Wang joined Bridgewater as an entry-level, junior analyst
in Bridgewater's "Client Services" department. Unlike Bridgewater's Research, Account
Management, and Trading departments, which devise and implement Bridgewater's trading and
risk management strategies, Bridgewater's Client Services department is responsible for
managing Bridgewater's relationships with clients. As a junior employee in the Client Services
group, Mr. Wang spent his time supporting others on marketing projects and responding to
routine client requests.
C. In 2010 and 2012, Mr. Wu and Mr. Wang Leave Bridgewater.
27. Mr. Wu and Mr. Wang did not work at Bridgewater long. After being transferred between internal departments in April 2008, Mr. Wu left Bridgewater after three years of employment in April 2010. Similarly, after three-and-a-half years in the Client Services department, Mr. Wang left Bridgewater in January 2012. Neither Mr. Wu nor Mr. Wang ever received promotions above their initial, entry-level positions at Bridgewater. 28. Neither Mr. Wu nor Mr. Wang had any responsibility for, or experience with, managing, overseeing, or operating Bridgewater's funds, portfolios, or investment strategies.
Whereas Mr. Wu was granted limited access to confidential information relating to the specific fee-calculation software and other applications with which he worked during his time at
Bridgewater, his responsibilities as a software developer never entailed the actual management or operation of any Bridgewater fund. And although Mr. Wang was likewise exposed to certain proprietary Bridgewater information as a junior analyst in Client Services, he was never asked or permitted to in any way manage or oversee any Bridgewater fund. Nor did he ever make any investment decisions for Bridgewater.
D. After Leaving Bridgewater, Mr. Wu and Mr. Wang Hide Their Plans to Launch a Competing Global Macro Hedge Fund from Bridgewater.
29. Given that its deep understanding of timeless economic principles is central to its success and highly valuable to the marketplace, Bridgewater requires its employees, including junior staff like Mr. Wang and Mr. Wu, to safeguard confidential Bridgewater information.
30. Under their respective employment agreements with Bridgewater, Mr. Wu and
Mr. Wang expressly agreed that they would not "use, divulge, disclose, or otherwise make accessible to any other person" any Bridgewater confidential information without Bridgewater's prior written consent. They further agreed to not "directly or indirectly engage in any business . . . that is in competition with any business of Bridgewater" for a two-year period after leaving Bridgewater. In order to "expeditiously, economically and in good faith resolv[e] any potential dispute as to whether a new employer, position, profession, endeavor or business" is in competition with Bridgewater, both Mr. Wu and Mr. Wang agreed to inform Bridgewater of any potential new employment opportunities before accepting or engaging in them.
31. Upon leaving Bridgewater, Mr. Wu consistently reported to Bridgewater in emails over a two-year period that he was simply unemployed and "traveling." At no point during that correspondence did Mr. Wu indicate that he planned to create a competing hedge fund.
32. Nor did Mr. Wang. Upon his departure from Bridgewater, Mr. Wang stated in a
November 2012 email to Bridgewater that he intended to pursue ballroom dancing "full time as a competitor"—an activity that he "intend[ed] to do for the foreseeable future." While Mr. Wang separately requested approval from Bridgewater to start a small business to "look[] after the savings" of certain friends and family to help subsidize his ballroom dancing, he represented to
Bridgewater that this would only be a side business, that he would not "actively manag[e] money," and that the passive investment strategy he planned to use would not in any way "mimic
All Weather" or All Weather's "growth/inflation framework."
33. In light of these representations, Bridgewater approved Mr. Wang's narrow request to modify his non-compete in January 2013. In return, Mr. Wang expressly agreed to
"not provide any asset management services or investment advice, either directly or indirectly, to anyone other than family members or personal friends" and further pledged to "not use, develop, or market any investment or trading strategy (or any substantially similar investment strategy or strategies) that was used, developed, or investigated by Bridgewater during his employment, including, but not limited to, the global macro fundamental approach or the All Weather approach."1
34. Unbeknownst to Bridgewater, however, Mr. Wu and Mr. Wang had already taken steps to launch their own competing hedge fund by mid-2012. In fact, despite claiming to have been unemployed throughout the two-year period since leaving Bridgewater, Mr. Wu paid for
1 While this limitation would expire at the conclusion of his non-compete in January 2014, Mr. Wang expressly acknowledged that his obligation to not use or disclose confidential Bridgewater information is perpetual and ongoing. Bridgewater's investigation into any improper use, disclosure, or theft of Bridgewater's confidential information by Defendants continues. and registered Convoy's current web address, www.convoyinvestments.com, on July 5, 2012.
And the following day, Mr. Wu incorporated Convoy Investments, LLC, the Delaware limited liability company through which Convoy is now marketing its fund.
35. On March 17, 2014, merely weeks after his non-compete expired, Mr. Wang announced to Bridgewater for the first time that he was expanding his modest side business.
Instead of "looking after the savings" of friends and family, Mr. Wang revealed that he was launching a hedge fund that would "market[] to institutional investors," the type of investors that make up Bridgewater's client base. Mr. Wang further stated that he would also be modifying his investment strategy. Despite previously assuring Bridgewater that his strategy would not resemble the "All Weather growth/inflation framework," Mr. Wang indicated that his strategy would now place a heavy emphasis on growth and inflation.
36. These actions surprised Bridgewater given Mr. Wang's prior representations. In a phone conversation with Mr. Wang on or around March 18, 2014, Bridgewater requested that
Mr. Wang discuss his future plans with Bridgewater to ensure that he would not violate his ongoing obligations to safeguard Bridgewater's confidential information. Despite agreeing to do so at that time, Mr. Wang never did.
E. Unable to Gain Legitimate Traction with the Investing Public, Defendants Resort to Publishing False Statements about Convoy's Principals.
37. After announcing that it would expand to institutional investors in March 2014,
Convoy was unable to generate the type of business and attention that it sought.2 Defendants then decided to take a different tack. Rather than acquire legitimacy in the investment management and hedge fund worlds on their own, they attempted to poach it from their former
2 Despite proclaiming to seek $200 million in investments, Convoy has not yet filed a Form ADV with the Securities and Exchange Commission—a filing that is required for companies managing more than $25 million in assets.
10 employer. Thus, in a transparent bid to trump up the investment credentials of Convoy's two founders and draw attention to Convoy as a hedge fund, Defendants published the following statements on Convoy's website, www,convoyinvestments.com:
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i!i-ii'r.in'K.il sir.c-toi- im>-.i lCvfiuK 'ii Butkcw.iic: Asstx. sales whci-' lie nitl Rnt-tfii lit-t met Hi'W.iul h,is pan tit >i '-uu'iiiK'i m.t'-tsuiM.t ic.ua ic-[)oij-iI>le t^i mtKeina .mil nuiikeliiiii the S"li l-llioii Ml We.iiitei Stia!t-_'\ on lieli.ii! of some »>( the l.Hfc-t imi iti<>-: -v>|"ln-tit..ited tii.e-tois m !Sk" ".\>ulit imJiuiimi -i>' -Mfii'i. *>.c tliii him!- pen-ton- cnifoAiiiciiis ,uhI iutimi.ilitnis Il>i"..•:.! Is.i- -•> i.i'l.uu'il '.Uuie ,i.i|)ci- ami comment,utc- on ,i b.o.i.i j.iiitjc o! Hi'(.-liiicul (\'|>iv- -tuii ,i- Sail n-k itill.ttioii ami
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Howard [Wang] is a co-founder of Convoy Investments and is responsible for research and portfolio management. Prior to founding Convoy in 2013, Howard spent his career managing portfolios for institutional investors, most recently at Bridgewater Associates where he and Robert [Wu] first met. Howard was part of a 3-member investment team responsible for overseeing and marketing the $70 billion All Weather Strategy on behalf of some of the largest and most sophisticated investors in the world, including sovereign wealth funds, pensions, endowments and foundations.
* * *
These statements were published as early as May 17, 2014, and may have been published before that date.
11 Koheri Wu. < ¥ \. < o-Foun
As the co-founder of Convoy Investments, Robert [Wu] is responsible for strategic business planning and trading operations. Prior to founding Convoy, Robert spent his career working in technology and operations, most recently at Bridgewater Associates, where he was part of the team that built and oversaw critical components ofoperations systems.
(See Ex. A (emphasis added).)
38. In a further effort to generate interest in their fund and to trade off of
Bridgewater's market-leading industry reputation, Defendants made similar proclamations in the media. For example, upon information and belief, Defendants instructed a contact at Bloomberg to publish a marketing piece about Convoy entitled "Ex-Bridgewater Analyst Wang Starts No-
Fee Hedge Fund" on August 5, 2014. (Ex. B.) In that article, Mr. Wang, speaking on behalf of
Convoy, claimed that the performance of "most hedge fund[s]" merely "mirrors the broader market" and, thus, "fail[s] to justify the high fees collected." (Id.) In an attempt to legitimize those views, Defendants again misrepresented Mr. Wang's roles and responsibilities at
Bridgewater:
Convoy Investments co-Founder Howard Wang worked for $160 billion Bridgewater Associates LP from 2008 to 2012 and was an analyst on the investment team for the Westport, Connecticut-based firm's $80 billion All Weather strategy.
(Id. (emphasis added).)
39. In addition to the claims above, as of August 7, 2014, Mr. Wang's public
12 Linkedln page similarly claimed that Mr. Wang "was part ofa small investment team that helped to market and oversee the $70 billion All Weather Strategy on behalf of some of the largest and most sophisticated investors in the world . . . ." (Ex. C (emphasis added).)
40. There can be no question that these statements are both literally false and materially misleading. To begin, Mr. Wang did not "manage" or "oversee" Bridgewater's All
Weather fund. Nor was he ever on a "3-member investment team responsible for overseeing"
All Weather or "the investment team" for All Weather. While Mr. Wang worked in a limited capacity on projects relating to the marketing of All Weather—a common task for a junior associate in the Client Services department—he never "managed" or had any investment authority over any money or assets while at Bridgewater.
41. Nor could Mr. Wang have "managed" any of the Bridgewater funds (or
"portfolios," as he calls them) as a junior analyst. To put Convoy's statements in perspective,
Bridgewater presently employs roughly 1,400 people—more than 200 of which are "analysts" working in several different departments. In the Client Services department alone, there are currently dozens of such analysts working on "All Weathef'-related projects who have the same level of responsibility as Mr. Wang had, or more. None of those analysts have any managerial responsibility or authority over the All Weather fund whatsoever.
42. Similarly, the suggestion that Robert Wu was part of "the team" at Bridgewater
"that built and oversaw critical components [of Bridgewater's] operations systems," including its
"trading operations," is likewise false and materially misleading. Mr. Wu did not "oversee" any aspects ofBridgewater's multi-billion dollar "operations systems." Instead, he was a junior-level software developer and technician, who worked on only one sliver of Bridgewater software related to the calculation of client fees. Nothing in his Bridgewater work history can be
13 characterized as "overseeing" the "critical components" of Bridgewater's overall operations.
And to the extent that Convoy's statements regarding Mr. Wu suggest that he had anything to do with "trading operations" at Bridgewater, they are false. Indeed, Bridgewater has an entire department devoted to "trading operations" in which Mr. Wu was never employed.
43. Defendants' false claims have already caused palpable marketplace confusion.
Numerous news outlets have parroted Defendants' claims, mischaracterizing Mr. Wu and Mr.
Wang's former roles, responsibilities, and ranks at Bridgewater. In fact, the unifying theme in such articles is their claim that Mr. Wu and Mr. Wang are former Bridgewater "traders," "alum," or "veterans" of significant stature. (See Ex. D.) For example, one financial news outlet has even referred to Mr. Wu and Mr. Wang as Ray Dalio's "apostles"—despite the fact that neither
Mr. Wu nor Mr. Wang ever directly worked with, or reported to, Mr. Dalio. (Id.) Embedded within each ofthese statements is the false and damaging suggestion that Mr. Wu and Mr. Wang are former high-profile Bridgewater employees, who were each responsible, in a primary role, for the development, management, or implementation of Bridgewater's world-renowned investment strategies. Upon information and belief, this is precisely the type of marketplace confusion that Defendants intended to create by making such claims.
44. Collectively, the false statements and claims attributable to Defendants described in this section "E" shall be referred to as the "False Advertising Claims."
F. After Being Confronted, Defendants Lock Convoy's Website and Refuse to Affirm That They Will Not Make Any Additional False Advertising Claims.
45. After discovering the August 5, 2014 Bloomberg article and the corresponding
False Advertising Claims on Convoy's website, Bridgewater reached out to Defendants on or around August 7, 2014. During a telephone conversation between Bridgewater and Mr. Wang,
Mr. Wang did not deny that the above False Advertising Claims regarding Mr. Wang and Mr.
14 Wu were indeed false and misleading. In fact, Mr. Wang pledged to take down the False
Advertising Claims "off the [Convoy] website" in order to "minimize the damage here."
Thereafter, Defendants purportedly attempted to remove some ofthe False Advertising Claims.
46. Despite the above attempts, Defendants have failed to remove, let alone remedy all of the False Advertising Claims that have been published. For example, Convoy's website continues to proclaim that Mr. Wang "spent his career managing portfolios for institutional investors, most recently at Bridgewater Associates . . . ." Moreover, Defendants have not retracted or removed any of their statements in the August 5, 2014 Bloomberg article, which continues to remain online.
47. Tellingly, after the August 7, 2014 telephone conversation and Bridgewater's follow up letters, Defendants took steps to conceal the vast majority of Convoy's website— including the "Investments," "Operations," and "Insights" tabs—locking away sections of the site behind a password-protected "Client Login."
48. For example, Convoy's website used to include a section entitled "Our
Advantage" on which Defendants purported to describe Convoy's approach to investments. As
15 further evidence of Defendants' attempt to trade off of Bridgewater's name and reputation, this section of Convoy's website was plastered with language that mimics the way Bridgewater describes its own investment approach, including:
To create a portfolio that truly protects an investor's financial future requires a deep, timeless, and universal understanding ofhow markets work and how asset prices move. . . . [A]t their most fundamental level, the economy and the markets can be understood through basic yet timeless and universal logic. ... A portfolio designed to perform consistently over long periods of time must be based on an ageless logic ....
(See Ex. A.) Like the "Investments," "Operations," and "Insights" pages, Defendants appear to have now hidden the "Our Advantage" section as well.
49. On top of hiding the contents of its website behind a login, Defendants have been uncooperative and have refused to respond in a timely or meaningful manner to Bridgewater's multiple attempts to reach out to address the False Advertising Claims and other concerns.
50. Defendants appear intent on continuing to make similar false statements. After the August 7 phone call, Bridgewater sent letters on August 12 and August 28, 2014, to
Convoy's principals, requesting, among other things, that Defendants confirm that they will not publish similar false statements in the future. Despite two letters and multiple phone calls and email communications, Defendants have refused to make this simple confirmation.
51. Convoy has even continued to circulate the same False Advertising Claims made on its website. For example, on August 29, 2014, Mr. Wu filed a federal trademark application bearing serial number 86380574 with the U.S. Patent and Trademark Office in the hope of obtaining a proposed mark on behalf of Convoy. (Ex. E.) As part of that submission, Mr. Wu filed "a [sic] advertisement brochure for the company's service" entitled "Fund Overview" as a trademark specimen. (Id.) Even though Mr. Wang had already assured Bridgewater that
Defendants would take down the False Advertising Claims published on its website just three
16 weeks earlier, the "Fund Overview" specimen attached to Convoy's trademark application recites the most damaging statements among the False Advertising Claims, including that Mr.
Wang "spent his career managing portfolios for institutional investors, most recently at
Bridgewater Associates where he was part of a 3-member team responsible for overseeing and marketing the $70 billion All Weather Strategy," and that Mr. Wu "was part of the team at
Bridgewater that built and oversaw critical components of operations systems." Nowhere in that submission to the U.S. Patent and Trademark Office did Mr. Wu, or any representative from
Convoy, disclose that these statements are in any way incorrect.
52. To the contrary, Mr. Wu expressly declared that all of the information contained in the trademark application that he submitted on behalf of Convoy was truthful and accurate. In fact, as a signatory to the application, Mr. Wu affirmed the veracity of his submission, expressly acknowledging that any "willful false statements" in the application "may jeopardize the validity of the application" and "are punishable by fine or imprisonment, or both, under 18 U.S.C.
Section 1001."
53. To enjoin and remedy the ongoing harm that it continues to incur from these improper actions, Bridgewater now seeks relief from this Court.
CAUSE OF ACTION
COUNT I (False Advertising in Violation ofthe Lanham Act)
54. Bridgewater incorporates by reference the allegations set forth in paragraphs 1 through 53 ofthis Complaint.
55. Defendants knowingly and intentionally published the False Advertising Claims in commercial speech.
56. Convoy's founders and sole principals, Robert Wu and Howard Wang directed,
17 controlled, ratified, participated in, and were the moving forces behind Convoy's publication of the False Advertising Claims.
57. The False Advertising Claims are literally false, and expressly and/or impliedly misrepresent the nature, characteristics, and qualities of Convoy's products and services in a material way in violation of section 43(a)(1)(B) of the Lanham Act. See 15 U.S.C.
§ 1125(a)(1)(B).
58. The False Advertising Claims mislead and deceive consumers in interstate commerce and may lead them to choose Convoy's products and services over Bridgewater's products and services. Defendants' past and continued publication of the False Advertising
Claims is willful, deliberate, and in bad faith.
59. Bridgewater has been and is likely to continue to be damaged by Defendants'
False Advertising Claims in an amount to be determined by the trier of fact. In addition, by marketing Convoy as a global macro hedge fund catering to institutional investors, Defendants have sought to position Convoy as a direct competitor of Bridgewater. As such, Defendants'
False Advertising Claims are injurious to Bridgewater.
60. Defendants' False Advertising Claims will irreparably and unfairly harm
Bridgewater, including harm to Bridgewater's reputation and goodwill for which Bridgewater has no adequate remedy at law.
PRAYER FOR RELIEF
WHEREFORE, Bridgewater prays that this Court enter judgment in its favor on its claim for relief set forth above and award it relief including, but not limited to, the following:
(i) An injunction requiring Defendants to remove any remaining False Advertising Claims in the public domain;
(ii) An injunction permanently enjoining Defendants, and all persons in active concert or participation with any of them from, representing by any means whatsoever, directly or indirectly, that
a. the False Advertising Claims, or similar variations of such claims, are true; and
b. any Defendants, any products or services offered by Defendants, or any activities undertaken by Defendants, are associated or connected in any way with Bridgewater;
(iii) An Order holding Defendants liable, jointly and severally, for, and requiring Defendants to pay, Bridgewater compensatory damages in an amount as yet undetermined caused by the foregoing acts of false advertising and trebling such compensatory damages for payment to Bridgewater in accordance with 15 U.S.C. §1117;
(iv) An Order requiring Defendants to pay Bridgewater' costs and attorney's fees in this action pursuant to 15 U.S.C. § 1117; and
(v) Other reliefthe Court may deem appropriate.
Dated: October 21,2014 Respectjfftly New York, New York
AtifKhawaja KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212) 446-4800 Facsimile: (212)446-6460
Gregg F. LoCascio, P.C. KIRKLAND & ELLIS LLP 655 Fifteenth Street, N.W. Washington, D.C. 20005-5793 Telephone: (202) 879-5000 Facsimile: (202) 879-5200
Attorneysfor Bridgewater Associates, LP
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