Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 1 of 61
81,7('67$7(6',675,&7&2857 )257+(6287+(51',675,&72)1(:<25.
%(1-$0,10,&+$(/0(55<0$1$0< &LYLO$FWLRQ1RFY&0.1) :+,7$.(50(55<0$175867$1'% 0(55<0$1$1'$0(55<0$17+ *(1(5$7,215(0$,1'(575867 LQGLYLGXDOO\DQGRQEHKDOIRIDOORWKHUV VLPLODUO\VLWXDWHG 3ODLQWLIIV Y &,7,*5283,1&&,7,%$1.1$DQG &,7,*5283*/2%$/0$5.(76,1& 'HIHQGDQWV
'(&/$5$7,212)6+$5$11,508/,168332572) , 3/$,17,))6¶027,21 )25),1$/$33529$/2)352326('&/$66$&7,216(77/(0(17$1'3/$1 2)$//2&$7,21$1' ,, /($'&2816(/¶6027,21)25$1$:$5'2) $77251(<6¶)((6$1'5(,0%856(0(172)/,7,*$7,21(;3(16(6
Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 2 of 61
7$%/(2)&217(176 3DJH
, 35(/,0,1$5<67$7(0(17 ,, %$&.*5281'2)7+(/,7,*$7,21 $ 6XPPDU\RIWKH&ODLPV$VVHUWHG$JDLQVW&LWLLQWKH/LWLJDWLRQ % 5HOHYDQW3URFHGXUDO+LVWRU\ ,QYHVWLJDWLRQDQG&RPPHQFHPHQWRIWKH/LWLJDWLRQ &LWL¶V0RWLRQWR'LVPLVV 7KH&RXUW¶V5XOLQJRQ'HIHQGDQW¶V0RWLRQWR'LVPLVVDQG 'HIHQGDQW¶V$QVZHU &LWL¶V0RWLRQWR&HUWLI\WKH07'2UGHUIRU,QWHUORFXWRU\ $SSHDODQG6WD\'LVFRYHU\ 3URWHFWLYH2UGHUDQG$PHQGHG6FKHGXOLQJ2UGHU & 7KH3DUWLHV¶([WHQVLYH'LVFRYHU\(IIRUWV ' 1DPHG3ODLQWLIIV¶'LVFRYHU\3URSRXQGHGRQ'HIHQGDQW 1DPHG3ODLQWLIIV¶'RFXPHQW5HTXHVWV 7KH3DUWLHV¶1HJRWLDWLRQV5HJDUGLQJ(IILFLHQW'RFXPHQW 'LVFRYHU\ 0RWLRQWR&RPSHO'RFXPHQWV ,PSOHPHQWDWLRQRI5HYLHZ3URWRFRO 'HSRVLWLRQV :ULWWHQ'LVFRYHU\ 1DPHG3ODLQWLIIV¶'LVFRYHU\3URSRXQGHGRQ1RQ3DUWLHV ( 'HIHQGDQW¶V'LVFRYHU\3URSRXQGHGRQ1DPHG3ODLQWLIIV ) 3ODLQWLIIV¶6LJQLILFDQW:RUNZLWK([SHUWV * 0RWLRQ3UDFWLFH 1DPHG3ODLQWLIIV¶0RWLRQIRU&ODVV&HUWLILFDWLRQ &LWL¶V0RWLRQWR([FOXGH3URIHVVRU%URZQ¶V([SHUW 2SLQLRQV 1DPHG3ODLQWLIIV¶0RWLRQWR3UHFOXGH &KHVWHU&RXQW\(PSOR\HHV5HWLUHPHQW)XQGDQG6WHSKHQ +LOGUHWK¶V0RWLRQWR,QWHUYHQH $QWLFLSDWHG0RWLRQVIRU6XPPDU\-XGJPHQW ,,, 6800$5<2)3/$,17,))6¶:25.$6&/$66 5(35(6(17$7,9(6 ,9 7+(5,6.62)&217,18('/,7,*$7,21
L Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 3 of 61
$ 5LVNVRI3URYLQJ)UDXGXOHQW&RQFHDOPHQW % 5LVNVRI(VWDEOLVKLQJ/LDELOLW\ & 5LVNV&RQFHUQLQJ'DPDJHV ' 5LVNVRI0RWLRQWR,QWHUYHQH 9 6(77/(0(17',6&866,2160(',$7,211(*27,$7,212) 6(77/(0(17'2&80(176$1'6&+('8/,1*2)),1$/ $33529$/+($5,1* 9, 7+(3/$12)$//2&$7,21,6)$,5$1'$'(48$7( 9,, /($'&2816(/¶6&203/,$1&(:,7+7+(&2857¶6 35(/,0,1$5<$33529$/25'(5$1'127,&(02',),&$7,21 25'(5$1'7+(&/$66¶65($&7,2172'$7( 9,,, /($'&2816(/¶6)(($1'(;3(16($33/,&$7,21 $ /HDG&RXQVHO¶V)HH5HTXHVW,V)DLUDQG5HDVRQDEOHDQG:DUUDQWV $SSURYDO 7KH5LVNVRI/LWLJDWLRQDQGWKH1HHGWR(QVXUHWKH $YDLODELOLW\RI&RPSHWHQW&RXQVHOLQ+LJK5LVN &RQWLQJHQW/LWLJDWLRQ 7KH:RUNRI3ODLQWLIIV¶&RXQVHODQGWKH/RGHVWDU&URVV &KHFN 7KH4XDOLW\RI/HDG&RXQVHO¶V5HSUHVHQWDWLRQ % /HDG&RXQVHO¶V5HTXHVWIRU/LWLJDWLRQ([SHQVHV:DUUDQWV $SSURYDO /HDG&RXQVHO6HHN3D\PHQWRI,WV5HDVRQDEOHDQG 1HFHVVDU\/LWLJDWLRQ([SHQVHVIURPWKH6HWWOHPHQW)XQG 6HUYLFH$ZDUGVWR3ODLQWLIIV$UH)DLUDQG5HDVRQDEOH ,; &21&/86,21
LL Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 4 of 61
,6+$5$11,508/GHFODUHDVIROORZVSXUVXDQWWR86&
,DPDSDUWQHURIWKHODZILUPRI.HVVOHU7RSD]0HOW]HU &KHFN//3 ³.HVVOHU
7RSD]´ .HVVOHU7RSD]ZDVGHVLJQDWHGE\WKH&RXUWDV,QWHULP/HDG&RXQVHO KHUHLQUHIHUUHGWR
DV³/HDG&RXQVHO´ LQWKHDERYHFDSWLRQHGFODVVDFWLRQ WKH³/LWLJDWLRQ´ DQGUHSUHVHQWV%HQMDPLQ
0LFKDHO 0HUU\PDQ $P\ :KLWDNHU 0HUU\PDQ 7UXVW DQG % 0HUU\PDQ DQG $ 0HUU\PDQ WK
*HQHUDWLRQ 5HPDLQGHU 7UXVW FROOHFWLYHO\ ³1DPHG 3ODLQWLIIV´ DV ZHOO DV &KHVWHU &RXQW\
(PSOR\HHV5HWLUHPHQW)XQGDQG6WHSKHQ+LOGUHWK ³3URSRVHG,QWHUYHQRUV´DQGWRJHWKHUZLWK
1DPHG3ODLQWLIIV³3ODLQWLIIV´ ,KDYHSHUVRQDONQRZOHGJHRIWKHPDWWHUVVHWIRUWKKHUHLQEDVHG
RQP\DFWLYHVXSHUYLVLRQRIDQGSDUWLFLSDWLRQLQWKHSURVHFXWLRQDQGUHVROXWLRQRIWKH/LWLJDWLRQ
,UHVSHFWIXOO\VXEPLWWKLV'HFODUDWLRQLQVXSSRUWRI3ODLQWLIIV¶PRWLRQSXUVXDQWWR
5XOH H RIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH WKH³)HGHUDO5XOHV´ IRUILQDODSSURYDORIWKH
SURSRVHG VHWWOHPHQW WKH ³6HWWOHPHQW´ ZLWK &LWLEDQN 1$ ³'HIHQGDQW´ ³&LWL´ RU WKH
³'HSRVLWDU\´ 7KH 6HWWOHPHQW ZLOO UHVROYH DOO FODLPV DVVHUWHG LQ WKH /LWLJDWLRQ DJDLQVW WKH
'HIHQGDQWRQEHKDOIRIWKH&ODVVFRQVLVWLQJRIDOOSHUVRQVRUHQWLWLHV ZKRUHFHLYHGFDVK
GLVWULEXWLRQVIURPWKH'HSRVLWDU\VSRQVRUHG$PHULFDQ'HSRVLWDU\5HFHLSWV ³$'5V´ OLVWHGLQ
$SSHQGL[WRWKH6WLSXODWLRQIURP-DQXDU\WR6HSWHPEHULQFOXVLYHDQGZKRZHUH
GDPDJHGWKHUHE\ WKH³'DPDJHV&ODVV´ DQGRU ZKRFXUUHQWO\RZQWKH'HSRVLWDU\VSRQVRUHG
$'5VOLVWHGLQ$SSHQGL[WRWKH6WLSXODWLRQ WKH³&XUUHQW+ROGHU&ODVV´DQGWRJHWKHUZLWKWKH
'DPDJHV&ODVVWKH³&ODVV´ 7KH&RXUWSUHOLPLQDULO\DSSURYHGWKH6HWWOHPHQWDQGGLUHFWHGQRWLFH
$OO FDSLWDOL]HG WHUPV WKDW DUH QRW GHILQHG LQ WKLV 'HFODUDWLRQ VKDOO KDYH WKH PHDQLQJV DVFULEHG WR WKHP LQ WKH 6WLSXODWLRQ DQG $JUHHPHQW RI 6HWWOHPHQW GDWHG $XJXVW ³6WLSXODWLRQ´ (&)1R 3ODLQWLIIVDQG&LWLEDQN1$DUHVRPHWLPHVFROOHFWLYHO\UHIHUUHGWRKHUHLQDVWKH³3DUWLHV´ &HUWDLQ SHUVRQV DQG HQWLWLHV DUH H[FOXGHG IURP WKH &ODVV DV SURYLGHG LQ K RI WKH 6WLSXODWLRQ
Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 5 of 61
RIWKH6HWWOHPHQWWRWKH&ODVVE\2UGHUHQWHUHG6HSWHPEHU WKH³3UHOLPLQDU\$SSURYDO
2UGHU´ (&)1R7KHUHDIWHUWKH&RXUWRQ)HEUXDU\HQWHUHGDQ2UGHUDSSURYLQJ
FHUWDLQPRGLILFDWLRQVWRWKHQRWLFHSODQDQGVFKHGXOHIRUDSSURYDORIWKH6HWWOHPHQW WKH³1RWLFH
0RGLILFDWLRQ2UGHU´ (&)1R
, DOVR UHVSHFWIXOO\ VXEPLW WKLV 'HFODUDWLRQ LQ VXSSRUW RI WKH SURSRVHG SODQ IRU
DOORFDWLQJWKHQHWSURFHHGVRIWKH6HWWOHPHQWWRHOLJLEOH'DPDJHV&ODVV0HPEHUV WKH³3ODQRI
$OORFDWLRQ´ DQG /HDG &RXQVHO¶V PRWLRQ RQ EHKDOI RI 3ODLQWLIIV¶ &RXQVHO IRU DQ DZDUG RI
DWWRUQH\V¶IHHVDQGUHLPEXUVHPHQWRI/LWLJDWLRQ([SHQVHV WKH³)HHDQG([SHQVH$SSOLFDWLRQ´
LQFOXGLQJWKHUHTXHVWVIRU6HUYLFH$ZDUGVWR3ODLQWLIIVIRUWKHLUHIIRUWVLQFRQQHFWLRQZLWKWKH
SURVHFXWLRQRIWKH/LWLJDWLRQ
)RU WKH UHDVRQV GLVFXVVHG EHORZ DQG LQ WKH DFFRPSDQ\LQJ PHPRUDQGD,
UHVSHFWIXOO\VXEPLWWKDW L WKHWHUPVRIWKH6HWWOHPHQWDUHIDLUUHDVRQDEOHDQGDGHTXDWHLQDOO
UHVSHFWVDQGVKRXOGEHDSSURYHGE\WKH&RXUW LL WKHSURSRVHG3ODQRI$OORFDWLRQLVIDLUDQG
UHDVRQDEOH DQG VKRXOG EH DSSURYHG E\ WKH &RXUW DQG LLL /HDG &RXQVHO¶V )HH DQG ([SHQVH
$SSOLFDWLRQLVUHDVRQDEOHDQGVXSSRUWHGE\WKHIDFWVDQGODZDQGVKRXOGEHJUDQWHGLQDOOUHVSHFWV
, 35(/,0,1$5<67$7(0(17
)ROORZLQJ WKUHH \HDUV RI KDUGIRXJKW OLWLJDWLRQ DQG PRQWKV RI DUP¶VOHQJWK
QHJRWLDWLRQVIDFLOLWDWHGE\DQH[SHULHQFHGQHXWUDO3ODLQWLIIVDQG/HDG&RXQVHOKDYHVXFFHHGHGLQ
5HIHUHQFHVKHUHLQWR³3ODLQWLIIV¶&RXQVHO´LQFOXGHV.HVVOHU7RSD]DORQJZLWKDGGLWLRQDO FRXQVHO*&KDGG0DVRQ(VTRI3UHYRVW6KDII0DVRQ &DUQV3//& IRUPHUO\RI0DVRQ/DZ )LUP3/& DQG$P\&0DUWLQ(VTRI$P\&0DUWLQ3$ IRUPHUO\RI(YHUHWW:DOHVDQG &RPVWRFN ,Q DGGLWLRQ WR WKLV 'HFODUDWLRQ 3ODLQWLIIV DQG /HDG &RXQVHO DUH VXEPLWWLQJ L WKH 0HPRUDQGXP RI /DZ LQ 6XSSRUW RI 3ODLQWLIIV¶ 0RWLRQ IRU )LQDO $SSURYDO RI 3URSRVHG &ODVV $FWLRQ 6HWWOHPHQW DQG 3ODQ RI $OORFDWLRQ WKH ³6HWWOHPHQW 0HPRUDQGXP´ DQG LL WKH 0HPRUDQGXPRI/DZLQ6XSSRUWRI/HDG&RXQVHO¶V0RWLRQIRUDQ$ZDUGRI$WWRUQH\V¶)HHVDQG 5HLPEXUVHPHQWRI/LWLJDWLRQ([SHQVHV WKH³)HH0HPRUDQGXP´
Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 6 of 61
REWDLQLQJDUHFRYHU\RILQFDVKSOXVYDOXDEOHLQMXQFWLYHUHOLHILQZKLFK&LWLKDVDJUHHG
WRFDSLWVFKDUJHVIRUFRQGXFWLQJIRUHLJQH[FKDQJH ³&RQYHUVLRQV´ IURPFDVKGLVWULEXWLRQVLVVXHG
E\IRUHLJQFRPSDQLHVDQGRZHGWR$'5KROGHUV$VSURYLGHGLQWKH6WLSXODWLRQLQH[FKDQJHIRU
WKLVFRQVLGHUDWLRQWKH6HWWOHPHQWUHVROYHVDOOFODLPVDVVHUWHGLQWKH/LWLJDWLRQE\3ODLQWLIIVDQGWKH
&ODVVDJDLQVW&LWLLWVDIILOLDWHVRIILFHUVGLUHFWRUVDQGHPSOR\HHV
8SXQWLODUHVROXWLRQZDVUHDFKHGLQ-XQHWKLV/LWLJDWLRQZDVDFWLYHO\DQG
YLJRURXVO\OLWLJDWHGE\WKH3DUWLHVDQGDWWKHWLPHWKH6HWWOHPHQWZDVUHDFKHG3ODLQWLIIVZHUH
DFWLYHO\SUHSDULQJIRUVXPPDU\MXGJPHQW3ULRUWRUHDFKLQJWKH6HWWOHPHQW/HDG&RXQVHOKDG
DPRQJRWKHUWKLQJV L FRQGXFWHGDVLJQLILFDQWOHJDODQGIDFWXDOLQYHVWLJDWLRQLQWRWKH&RQYHUVLRQV
DWLVVXHLQWKHFDVH LL IRXJKWDFKDQJHRIMXULVGLFWLRQDOYHQXH LLL GUDIWHGWKHGHWDLOHGRSHUDWLYH
FRPSODLQW LY IXOO\ EULHIHG WZR PRWLRQV WR GLVPLVV DQG &LWL¶V VXEVHTXHQW PRWLRQ VHHNLQJ
SHUPLVVLRQ WR ILOH DQ LQWHUORFXWRU\ DSSHDO RI WKLV &RXUW¶V UXOLQJ RQ LWV PRWLRQ WR GLVPLVV Y
HQJDJHGLQH[WHQVLYHGLVFRYHU\HIIRUWVLQFOXGLQJUHYLHZLQJDQGDQDO\]LQJRYHUSDJHVRI
GRFXPHQWVSURGXFHGE\&LWLSDUWLFLSDWLQJLQQXPHURXVPHHWDQGFRQIHUVZLWK&LWL¶VFRXQVHOLQDQ
HIIRUW WR UHVROYH YDULRXV GLVFRYHU\ GLVSXWHV GHSRVLQJ WHQ IDFW ZLWQHVVHV DQG GHIHQGLQJ WKH
GHSRVLWLRQRI1DPHG3ODLQWLIIV YL FRQVXOWHGZLWKDQH[SHUWWRGHYHORSDFODVVZLGHGDPDJHV
PHWKRGRORJ\ YLL FRQGXFWHGH[SHUWGLVFRYHU\LQFOXGLQJH[FKDQJLQJH[SHUWUHSRUWVSDUWLFLSDWLQJ
LQWKUHHH[SHUWGHSRVLWLRQVDQGIXOO\EULHILQJ&LWL¶VPRWLRQWRH[FOXGH3ODLQWLIIV¶H[SHUW YLLL
PRYHGIRUFODVVFHUWLILFDWLRQ L[ IXOO\EULHIHGDPRWLRQWRLQWHUYHQHDQG [ HQJDJHGLQVHYHUDO
PRQWKVRIVHWWOHPHQWGLVFXVVLRQVLQFOXGLQJIRUPDOPHGLDWLRQ$VDUHVXOWRIWKHVHHIIRUWV/HDG
7KHFDVKSRUWLRQRIWKH6HWWOHPHQWZDVUHFHLYHGDQGGHSRVLWHGLQWRDQLQWHUHVWEHDULQJ HVFURZDFFRXQWRQ6HSWHPEHU
Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 7 of 61
&RXQVHO KDG D GHHS XQGHUVWDQGLQJ RI WKH VWUHQJWKV DQG ZHDNQHVVHV RI WKH 3DUWLHV¶ UHVSHFWLYH
SRVLWLRQVDWWKHWLPHWKH6HWWOHPHQWZDVUHDFKHG
,QGHFLGLQJWRVHWWOHWKH/LWLJDWLRQ3ODLQWLIIVDQG/HDG&RXQVHOFDUHIXOO\FRQVLGHUHG
WKHVLJQLILFDQWULVNVDVVRFLDWHGZLWKDGYDQFLQJWKHLUFDVHWKURXJKVXPPDU\MXGJPHQWWULDODQGWKH
LQHYLWDEOHSRVWWULDODSSHDOV1RWDEO\DWWKHWLPHWKH6HWWOHPHQWZDVUHDFKHGWKH3DUWLHVZHUH
DZDLWLQJWKH&RXUW¶VUXOLQJRQDFULWLFDOPRWLRQ²3URSRVHG,QWHUYHQRUV¶PRWLRQWRLQWHUYHQHLQWKH
/LWLJDWLRQ²ZKLFKLIGHQLHGZRXOGKDYHOLPLWHGWKHFDVHWRWKHWKUHH$'5VRZQHGE\1DPHG
3ODLQWLIIV DVOLPLWHGE\WKH&RXUW¶VSULRUFODVVFHUWLILFDWLRQUXOLQJ DQGZRXOGKDYHSUHFOXGHG
FODVVZLGHLQMXQFWLYHUHOLHI
(YHQLIWKH&RXUWJUDQWHGWKHSHQGLQJPRWLRQDQGWKHWZHQW\RQH$'5VRZQHGE\
3ODLQWLIIVZHUHLQFOXGHGLQWKH/LWLJDWLRQJRLQJIRUZDUG&LWLZRXOGKDYHFRQWLQXHGWRYLJRURXVO\
FRQWHVW3ODLQWLIIV¶FODLPV7KURXJKRXWWKH/LWLJDWLRQ&LWLVWUHQXRXVO\DUJXHGWKDWLWVSUDFWLFHRI
DGGLQJDVSUHDGWR&RQYHUVLRQUDWHVGLGQRWFRQVWLWXWHDEUHDFKRILWVFRQWUDFWXDOREOLJDWLRQVDVWKH
FRQWUROOLQJ'HSRVLW$JUHHPHQWVDXWKRUL]HG&LWLWRFKDUJHIRUFRQGXFWLQJVXFK&RQYHUVLRQV,Q
DGGLWLRQDVWKH&RXUWLQUXOLQJRQ&LWL¶VPRWLRQWRGLVPLVVGHQLHGZLWKRXWSUHMXGLFHWRUHQHZDOO
FODLPVDVVHUWHGE\3ODLQWLIIVprior to1RYHPEHU3ODLQWLIIVVWLOOIDFHGWKHULVNWKDWWKH
&RXUW DW VXPPDU\ MXGJPHQW FRXOG VKRUWHQ WKH FODVV SHULRG WR WKH DSSOLFDEOH VWDWXWH RI
OLPLWDWLRQV²OLPLWLQJ WKH &ODVV¶V SRWHQWLDO GDPDJHV 0RUHRYHU &LWL KDG DOUHDG\ VRXJKW WR
XQGHUPLQH3ODLQWLIIV¶H[SHUW¶VGDPDJHVPHWKRGRORJ\DQGZRXOGKDYHFRQWLQXHGWRFKDOOHQJHKLV
RSLQLRQV JRLQJ IRUZDUG $W WULDO GDPDJHV ZRXOG KDYH EHHQ KRWO\ FRQWHVWHG 7KH RXWFRPH RI
VXPPDU\ MXGJPHQW DQG WULDO HVSHFLDOO\ LQ D FRPSOH[ FDVH VXFK DV WKLV RQH FDQ QHYHU EH
SUHGLFWHGDQGEXWIRUWKH6HWWOHPHQWDUHFRYHU\IRUWKH&ODVVZDVHQWLUHO\DWULVN
Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 8 of 61
/HDG&RXQVHOEHOLHYHVWKDWWKH6HWWOHPHQWSDUWLFXODUO\ZKHQYLHZHGLQWKHFRQWH[W
RIWKHULVNVDQGXQFHUWDLQWLHVRIFRQWLQXHGOLWLJDWLRQDQGWULDOLVDQH[FHOOHQWUHVXOWIRUWKH&ODVV
,QGHHGWKH6HWWOHPHQW$PRXQWZLWKWKHLQFOXVLRQRIDOOWZHQW\RQH$'5VRZQHGE\WKH3URSRVHG
,QWHUYHQRUV WKHLQWHUYHQWLRQRIZKLFK&LWLLVVWLSXODWLQJWRRQO\IRUSXUSRVHVRIWKH6HWWOHPHQW
UHSUHVHQWVEHWZHHQURXJKO\WRRIWKH'DPDJHV&ODVV¶VSRWHQWLDOGDPDJHVEDVHGRQWKH
DQDO\VLVRI3ODLQWLIIV¶GDPDJHVH[SHUW i.e.PLOOLRQWRPLOOLRQ 7KLVLVDVXEVWDQWLDO
UHVXOWZKHQFRPSDUHGWRWKHPHGLDQUHFRYHU\RILQYHVWRUORVVHVDVDSHUFHQWDJHRIGDPDJHVLQ
UHFHQW FRPSDUDEO\VL]HG VHFXULWLHVFDVHV )XUWKHU XQGHUVFRULQJ WKH 6HWWOHPHQW $PRXQW LVWKH
LPSRUWDQWLQMXQFWLYHUHOLHIWKLV6HWWOHPHQWVHFXUHVIRUWKH&XUUHQW+ROGHU&ODVVSURYLGLQJDOLPLW
RIWZHQW\EDVLVSRLQWVRQWKH'HSRVLWDU\¶VFKDUJHVRQ&RQYHUVLRQVJRLQJIRUZDUGDQDGGLWLRQDO
IXWXUHPRQHWDU\EHQHILWIRUDOO$'5KROGHUV
7KH&ODVV¶VUHDFWLRQWRWKH6HWWOHPHQWWKXVIDUKDVEHHQSRVLWLYH,QDFFRUGDQFHZLWK
WKH &RXUW¶V 1RWLFH 0RGLILFDWLRQ 2UGHU WKH &RXUWDXWKRUL]HG &ODLPV $GPLQLVWUDWRU .XUW]PDQ
&DUVRQ&RQVXOWDQWV//& ³.&&´ KDVPDLOHG3RVWFDUG1RWLFHVWR5HJLVWHUHG+ROGHU
'DPDJHV &ODVV 0HPEHUV ,Q DGGLWLRQ WKH &RXUWDXWKRUL]HG 3XEOLFDWLRQ 1RWLFH 3ODQ
$GPLQLVWUDWLRQ +) 0HGLD //& ³+) 0HGLD´ KDV FRQGXFWHG DQ H[WHQVLYH PHGLD FDPSDLJQ
See e.g. 5HFHQW 7UHQGV LQ 6HFXULWLHV &ODVV $FWLRQ /LWLJDWLRQ )XOO Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 9 of 61 FRPSULVHGRISUHVVUHOHDVHVSXEOLFDWLRQVLQPDJD]LQHVQHZVSDSHUVDQGLQYHVWPHQWHQHZVOHWWHUV EDQQHU DGYHUWLVHPHQWV RYHU WKH ,QWHUQHW DQG DFURVV VRFLDO PHGLD FKDQQHOV DQG GLUHFW ,QWHUQHW DGYHUWLVLQJWRFHUWDLQSRWHQWLDO&ODVV0HPEHUVXVLQJ,QWHUQHW3URWRFRO ³,3´ DGGUHVVPDWFKLQJ 5HTXHVWVIRUH[FOXVLRQIURPWKH&ODVVDQGREMHFWLRQVDUHGXHWREHUHFHLYHGQRODWHUWKDQ-XQH 7RGDWHWKHUHKDYHEHHQQRREMHFWLRQVWRDQ\DVSHFWRIWKH6HWWOHPHQW3ODQRI$OORFDWLRQ RU/HDG&RXQVHO¶VUHTXHVWIRUDWWRUQH\V¶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i.e.FODVVPHPEHUV &LWLKHOG VKDUHVLVVXHGE\IRUHLJQFRPSDQLHVRQEHKDOIRIDQGIRUWKHEHQHILWRI8QLWHG6WDWHV ³86´ LQYHVWRUVLQWKH$'5V8QGHUWKRVHDJUHHPHQWVFDOOHG³'HSRVLW$JUHHPHQWV´&LWLFRQYHUWHGLQWR 86GROODUVDQ\FDVKGLVWULEXWLRQVUHFHLYHGIURPWKHVHIRUHLJQFRPSDQLHV ³&DVK'LVWULEXWLRQV´ IRUWKHEHQHILWRI$'5KROGHUV i.e.&RQYHUVLRQV See'HFODUDWLRQRI-HDQQH&)LQHJDQ$35&RQFHUQLQJ,PSOHPHQWDWLRQRI1RWLFHWR&ODVV 0HPEHUV7KURXJK0XOWL0HGLD1RWLFH3URJUDP WKH³)LQHJDQ'HFODUDWLRQ´RU³)LQHJDQ'HFO´ DWWDFKHGKHUHWRDV([KLELWDW See +XJKHV 'HFO 6KRXOG DQ\ DGGLWLRQDO UHTXHVWV IRU H[FOXVLRQ RU REMHFWLRQV EH UHFHLYHGDIWHUWKHGDWHRIWKLVVXEPLVVLRQ/HDG&RXQVHOZLOODGGUHVVWKHPLQWKHLUUHSO\SDSHUVWR EHILOHGRQRUEHIRUH-XO\ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 10 of 61 3ODLQWLIIV DOOHJH WKDW &LWL DGGHG D VSUHDG RYHU DQG DERYH WKH IRUHLJQ H[FKDQJH ³);´ UDWHVLWREWDLQHGZKHQFRQYHUWLQJ&DVK'LVWULEXWLRQVIURPIRUHLJQFXUUHQFLHVLQWR86 GROODUVRQEHKDOIRI3ODLQWLIIVDQG&ODVV0HPEHUV 3ODLQWLIIVDOOHJH&LWL¶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¶VSXEOLFGRFXPHQWVDQGDQQRXQFHPHQWV LL QHZVSDSHUDUWLFOHVDQG RWKHU SXEOLFDWLRQV FRQFHUQLQJ &LWL¶V SUDFWLFHV UHODWLQJ WR ); FXUUHQF\ WUDGLQJ LLL IRUHLJQ FRPSDQLHV¶ SXEOLF GRFXPHQWV ZLUH DQG SUHVV UHOHDVHV %ORRPEHUJ GDWD DQG 8QLWHG 6WDWHV 6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ ³6(&´ ILOLQJV LY WKHSULFLQJRI&RQYHUVLRQVE\&LWLDQG Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 11 of 61 Y WKHXQGHUO\LQJJRYHUQLQJGRFXPHQWVUHODWLQJWR&LWL¶VSURYLVLRQRI$'5VHUYLFHVWR1DPHG 3ODLQWLIIV 2ISDUWLFXODULPSRUWDQFHLQWKLVFDVHZDV/HDG&RXQVHO¶VUHYLHZDQGDQDO\VLVRI WKH 'HSRVLW $JUHHPHQWV WKHPVHOYHV /HDG &RXQVHO UHYLHZHG GR]HQV RI 'HSRVLW $JUHHPHQWV ZKLFKZHUHSXEOLFO\DYDLODEOHWRGHWHUPLQH&LWL¶VREOLJDWLRQVWR$'5KROGHUVDQGZKHWKHUVXFK 'HSRVLW$JUHHPHQWVZHUHVXEVWDQWLDOO\VLPLODUWRRQHDQRWKHUVXFKWKDW&LWL¶VDOOHJHGFRQGXFW ZRXOGFRQVWLWXWHDEUHDFKRIHDFKDJUHHPHQW/HDG&RXQVHOFRPSDUHGWKHUDWHVUHFHLYHGE\$'5 KROGHUV DV&LWLSXEOLFO\GLVFORVHG WRWKH);UDWHVDYDLODEOHLQWKHPDUNHWDWRUDURXQGWKHVDPH WLPH 7KH GLYHUJHQFH LQ WKH WZR UDWHV RU ³VSUHDG´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inter aliaWKDWWKH :HVWHUQ'LVWULFWRI$UNDQVDVODFNHGSHUVRQDOMXULVGLFWLRQRYHU&LWLEDQN1$&LWLJURXS,QFDQG &LWLJURXS *OREDO 0DUNHWV ,QF &LWL VLPLODUO\ DUJXHG WKDW WKH FRQYHQLHQFH RI WKH SDUWLHV DQG LQWHUHVWVRIMXVWLFHUHTXLUHGDWUDQVIHURIYHQXHWRWKH6RXWKHUQ'LVWULFWRI1HZ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 12 of 61 2Q6HSWHPEHU1DPHG3ODLQWLIIVILOHGDQRSSRVLWLRQWR&LWL¶VPRWLRQWR GLVPLVV:LWKUHVSHFWWR&LWL¶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¶ FRPSODLQW ZLWKRXW SUHMXGLFH -XGJH %URRNV GLG QRW DGGUHVV DQ\ VXEVWDQWLYHLVVXHVUHODWLQJWR1DPHG3ODLQWLIIV¶FODLPV 2Q 1RYHPEHU 1DPHG 3ODLQWLIIV ILOHG WKHLU LQLWLDO FRPSODLQW LQ WKLV &RXUW²DQGWKHRSHUDWLYHFRPSODLQWLQWKH/LWLJDWLRQ (&)1R WKH³&RPSODLQW´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erryman v. JPMorgan Chase Bank, N.A.1RFY 9(& 6'1< ³JPMorgan´ &LWLGHFOLQHGWRWDNHDSRVLWLRQDVWRZKHWKHUJPMorgan VKRXOG EHWUHDWHGDVD³UHODWHG´FDVH,QUHVSRQVH1DPHG3ODLQWLIIVVXEPLWWHGDOHWWHURQ'HFHPEHU Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 13 of 61 DJUHHLQJWKDWWKH/LWLJDWLRQDQGJPMorgan DOOHJHVLPLODUSUDFWLFHVEXWEHFDXVHWKH\FRQFHUQ GLIIHUHQWGHIHQGDQWVDQGDGLIIHUHQWVHWRIDJUHHPHQWVDVVHUWLQJWKDWWUHDWPHQWDV³UHODWHG´FDVHV RURWKHUFRRUGLQDWLRQZRXOGQRWEHDSSURSULDWH7KH&RXUWWRRNQRDFWLRQWR³UHODWH´RURWKHUZLVH FRRUGLQDWHWKHWZRFDVHV &LWL¶V0RWLRQWR'LVPLVV 2Q'HFHPEHU&LWLPRYHGWRGLVPLVVWKH&RPSODLQWXQGHU)HGHUDO5XOHV E DQG E (&)1RV,QVRGRLQJ&LWLDGYDQFHGIRXUSULPDU\DUJXPHQWVLQIDYRU RIGLVPLVVDO )LUVW &LWL DUJXHG WKDW 1DPHG 3ODLQWLIIV¶ FODLPV ZHUH EDUUHG E\WKH6HFXULWLHV /LWLJDWLRQ 8QLIRUP 6WDQGDUGV $FW ³6/86$´ ZKLFK IRUELGV FODVV DFWLRQV EDVHG RQ VWDWH ODZ FODLPV KHUHEUHDFKRIFRQWUDFWEUHDFKRIWKHLPSOLHGGXW\RIJRRGIDLWKDQGIDLUGHDOLQJDQG FRQYHUVLRQ ZKHQ1DPHG3ODLQWLIIV¶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¶FODLPVZHUHWLPHEDUUHG XQGHU WKH DSSOLFDEOH VWDWXWHV RI OLPLWDWLRQV DQG WKDW 1DPHG 3ODLQWLIIV KDG QRW DGHTXDWHO\ SOHG IUDXGXOHQWFRQFHDOPHQW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 14 of 61 /HDG&RXQVHOFDUHIXOO\UHYLHZHGDQGDQDO\]HG&LWL¶VWZHQW\ILYHSDJHVRIEULHILQJ DQG WKH H[WHQVLYH OHJDO DXWKRULW\ FLWHG WKHUHLQ /HDG &RXQVHO DOVR FRQGXFWHG VLJQLILFDQW OHJDO UHVHDUFKLQWR&LWL¶VDUJXPHQWVDQGLWVUHVSRQVHVWKHUHWRSDUWLFXODUO\ZLWKUHVSHFWWRLWV6/86$ DQGFODVVVWDQGLQJDUJXPHQWV 2Q -DQXDU\ 1DPHG 3ODLQWLIIV ILOHG D WZHQW\ILYH SDJH RSSRVLWLRQ WR 'HIHQGDQW¶VPRWLRQWRGLVPLVVFLWLQJIRUW\IRXUFDVHVRIWKHLURZQDQGGLVWLQJXLVKLQJWKHNH\ DXWKRULWLHVWKDW'HIHQGDQWFLWHGLQVXSSRUWRILWVPRWLRQ(&)1R,QWKHLURSSRVLWLRQ1DPHG 3ODLQWLIIVYLJRURXVO\GHIHQGHGWKHLUDOOHJDWLRQVLQFOXGLQJWKDWWKH&RPSODLQWDGHTXDWHO\DOOHJHG EUHDFKRIFRQWUDFWIUDXGXOHQWFRQFHDOPHQWDQGVWDQGLQJ 1DPHG3ODLQWLIIVDUJXHGinter alia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ealth & Welfare Fund v. Goldman Sachs & Co. )G G&LU DQG LWVSURJHQ\DQG Y &LWL¶VVWDWXWHRIOLPLWDWLRQVDUJXPHQWVGLGQRWEDU1DPHG3ODLQWLIIV¶FODLPV DQGLQDQ\HYHQWZHUHSUHPDWXUH 'HIHQGDQWILOHGDWHQSDJHUHSO\LQIXUWKHUVXSSRUWRILWVPRWLRQRQ-DQXDU\ (&)1R,QLWVUHSO\&LWLIXUWKHUDGYDQFHGLWVDUJXPHQWVIRUGLVPLVVLQJWKH&RPSODLQW :KLOHWKHPRWLRQWRGLVPLVVZDVEHLQJEULHIHGWKHSDUWLHVKHOGDQLQLWLDO)HGHUDO 5XOH I FRQIHUHQFH DQG WKHUHDIWHU VXEPLWWHG D &LYLO &DVH 0DQDJHPHQW 3ODQ SURSRVLQJ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 15 of 61 GHDGOLQHV IRU WKH DPHQGPHQW RI SOHDGLQJV GLVFRYHU\ DQG SUHWULDO VXEPLVVLRQV EDVHG RQ WKH &RXUW¶VGHFLVLRQRQWKHPRWLRQWRGLVPLVV2Q-DQXDU\WKH&RXUWHQGRUVHGWKH&DVH 0DQDJHPHQW3ODQVXEPLWWHGE\WKHSDUWLHVZLWKVRPHPRGLILFDWLRQV(&)1R 7KH&RXUW¶V5XOLQJRQ'HIHQGDQW¶V0RWLRQWR'LVPLVVDQG'HIHQGDQW¶V $QVZHU %\0HPRUDQGXP'HFLVLRQDQG2UGHUGDWHG$XJXVWWKH&RXUWJUDQWHGLQ SDUW DQG GHQLHG LQ SDUW &LWL¶V PRWLRQ WR GLVPLVV WKH &RPSODLQW ³07' 2UGHU´ (&) 1R 6SHFLILFDOO\E\LWV07'2UGHUWKH&RXUWVXVWDLQHG1DPHG3ODLQWLIIV¶FRUHEUHDFKRIFRQWUDFW DOOHJDWLRQVVWDWLQJ³3ODLQWLIIVKDYHXQTXHVWLRQDEO\VWDWHGDFODLPIRUEUHDFKRIFRQWUDFWDULVLQJ RXWRI&LWL¶VGHGXFWLRQDQGUHWHQWLRQRIDPRXQWVWKDWLWPD\QRWEHDXWKRUL]HGXQGHUWKHOLWHUDO WHUPVRIWKHJRYHUQLQJFRQWUDFW´IdDW ,QWKH07'2UGHUWKH&RXUWDOVRIRXQGWKDW6/86$GLGQRWEDU1DPHG3ODLQWLIIV¶ FODLPVUHDVRQLQJ³>L@WLVREYLRXVIURPDFORVHUHDGLQJRIWKH&RPSODLQWWKDW3ODLQWLIIVLQFOXGHG ODQJXDJHW\SLFDOO\DVVRFLDWHGZLWKIUDXG«LQDQHIIRUWWRSOHDGIUDXGXOHQWFRQFHDOPHQWDQGWROO WKHVWDWXWHRIOLPLWDWLRQVUDWKHUWKDQWRSOHDGDIUDXGOLNHFODLP´IdDW 7KH&RXUWDOVRUHMHFWHG&LWL¶VDUJXPHQWVWKDW1DPHG3ODLQWLIIV¶FODLPVVKRXOGEH OLPLWHGWRWKHDSSOLFDEOHVWDWXWHRIOLPLWDWLRQVRUWKDW1DPHG3ODLQWLIIVKDGQRWDGHTXDWHO\SOHG FODVV VWDQGLQJ ,Q SHUWLQHQW SDUW WKH &RXUW GHWHUPLQHG WKDW WKH DOOHJDWLRQV RI IUDXGXOHQW FRQFHDOPHQWZHUHVXIILFLHQWDWWKLVVWDJHRIWKHOLWLJDWLRQ DQG1DPHG3ODLQWLIIVFRXOGWKHUHIRUH SXUVXHFODLPVGDWLQJEDFNWR-DQXDU\ /LNHZLVHWKH&RXUWIRXQGWKDW&LWL¶VFODVVVWDQGLQJ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 16 of 61 DUJXPHQWZDVSUHPDWXUH i.e.1DPHG3ODLQWLIIVFRXOGUHSUHVHQWDOOSXUFKDVHUVRI&LWLVSRQVRUHG $'5VUHJDUGOHVVRIZKHWKHURUQRWWKH\KDGRZQHGWKDWSDUWLFXODU$'5 7KH &RXUW JUDQWHG &LWL¶V PRWLRQ WR GLVPLVV DV WR 1DPHG 3ODLQWLIIV¶ FODLPV IRU EUHDFKRIWKHLPSOLHGGXW\RIJRRGIDLWKDQGIDLUGHDOLQJDQGFRQYHUVLRQDQGGLVPLVVHGWKHVH FODLPVZLWKSUHMXGLFH$V&LWLJURXS,QFDQG&LWLJURXS*OREDO0DUNHWV,QFZHUHRQO\QDPHGLQ WKHFRQYHUVLRQFODLPWKH&RXUW¶VGHFLVLRQUHVXOWHGLQWKHLUGLVPLVVDOIURPWKH/LWLJDWLRQ &LWLDQVZHUHGWKH&RPSODLQWRQ$XJXVW WKH³$QVZHU´ (&)1R,Q LWV$QVZHU&LWLFRQWLQXHGWRGHQ\WKDWLWKDGEUHDFKHGWKH'HSRVLW$JUHHPHQWVDQGWKDWLWKDG IUDXGXOHQWO\FRQFHDOHGLWV);SUDFWLFHV &LWL¶V0RWLRQWR&HUWLI\WKH07'2UGHUIRU,QWHUORFXWRU\$SSHDODQG 6WD\'LVFRYHU\ 2Q2FWREHU&LWLILOHGD0RWLRQIRU&HUWLILFDWLRQRIWKH&RXUW¶V2UGHUIRU ,QWHUORFXWRU\$SSHDODQGIRUD3DUWLDO6WD\RI'LVFRYHU\ ³0RWLRQWR&HUWLI\DQG6WD\´ DORQJ ZLWKDQLQHWHHQSDJHVXSSRUWLQJEULHI(&)1RV7KHPRWLRQIRFXVHGRQWZRLVVXHV 1DPHG3ODLQWLIIV¶VWDQGLQJWRUHSUHVHQW$'5KROGHUVZKRRZQHGGLIIHUHQW$'5V DQGZKLFKZHUH JRYHUQHG E\ GLIIHUHQW 'HSRVLW $JUHHPHQWV DQG WKH VWDWXWH RI OLPLWDWLRQV DQG 1DPHG 3ODLQWLIIV¶DOOHJDWLRQVRIIUDXGXOHQWFRQFHDOPHQW6SHFLILFDOO\&LWLDUJXHGLQLWVPRWLRQWKDWDQ LQWHUORFXWRU\DSSHDORIERWKLVVXHVZDVZDUUDQWHGEHFDXVHWKH\SUHVHQWHGFRQWUROOLQJTXHVWLRQVRI ODZRQZKLFKFRXUWVZHUHVSOLWDQGWKDWUHVROXWLRQRIWKHVHLVVXHVZRXOGDGYDQFHWKH/LWLJDWLRQ 0RVWQRWDEO\&LWLFLWHGWRWKH+RQRUDEOH9DOHULH(&DSURQL¶VFRQWUDU\GHFLVLRQRQFODVVVWDQGLQJ &LWL¶VDUJXPHQWZLWKUHVSHFWWRIUDXGXOHQWFRQFHDOPHQWZDVGHQLHGZLWKRXWSUHMXGLFHWR UHQHZDOHLWKHURQVXPPDU\MXGJPHQWDIWHUGLVFRYHU\RUDWWULDO/LNHZLVHWKH&RXUWGHIHUUHGIXOO FRQVLGHUDWLRQRIWKHFODVVVWDQGLQJLVVXHXQWLOFODVVFHUWLILFDWLRQ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 17 of 61 DQGIUDXGXOHQWFRQFHDOPHQWJPMorgan:/ 6'1<6HSW $VSDUWRI LWVPRWLRQ&LWLDOVRUHTXHVWHGDSDUWLDOVWD\RIGLVFRYHU\ 1DPHG3ODLQWLIIVRSSRVHGWKH0RWLRQWR&HUWLI\DQG6WD\RQ2FWREHU ILOLQJ D WZHWQ\ILYH SDJH EULHI (&) 1R :LWK UHVSHFW WR FODVV VWDQGLQJ 1DPHG 3ODLQWLIIV DUJXHG WKDW WKLV &RXUW¶V DQG WKH JPMorgan FRXUW¶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³VXJJHVW>HG@WKDW'HIHQGDQWWDNHFODVVGLVFRYHU\DQGWKDW3ODLQWLIIVPRYHIRUFODVV FHUWLILFDWLRQVRWKDWWKH&RXUWFDQFRPHWRVRPHUHVROXWLRQRIZKHWKHUWKLVDFWLRQFDQSURFHHGDV DFODVVDFWLRQ´(&)1RDW7KH&RXUWIXUWKHUKHOGWKDW³>W@KHIUDXGXOHQWFRQFHDOPHQWLVVXHV SHUWLQHQWWRWKHVWDWXWHRIOLPLWDWLRQVTXHVWLRQDUHDSSURSULDWHVXEMHFWVIRUGLVFRYHU\DWWKLVWLPH´ IdDW 7KH&RXUW¶V2UGHURQWKH0RWLRQWR&HUWLI\DQG6WD\DOVRLQYLWHGWKHSDUWLHVWR VXEPLWDMRLQWVFKHGXOHIRUGLVFRYHU\ 3URWHFWLYH2UGHUDQG$PHQGHG6FKHGXOLQJ2UGHU $IWHUH[WHQVLYHQHJRWLDWLRQVWKHH[FKDQJHRIPXOWLSOHGUDIWVDQGURXQGVRIHGLWV DQGQXPHURXVWHOHSKRQLFPHHWDQGFRQIHUVHVVLRQVWKHSDUWLHVHQWHUHGLQWRD6WLSXODWHG3URWHFWLYH 2UGHU WR JRYHUQ FRQILGHQWLDOLW\ LQ WKH /LWLJDWLRQ 7KH &RXUW HQWHUHG WKH SDUWLHV¶ VWLSXODWHG SURWHFWLYHRUGHURQ2FWREHU(&)1R Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 18 of 61 $OVRDIWHUWKH&RXUW¶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¶UHEXWWDOH[SHUWUHSRUWV 7KH&RXUWHQWHUHGWKH$PHQGHG6FKHGXOLQJ2UGHURQ-DQXDU\DGRSWLQJ WKHGHDGOLQHVLQWKHSDUWLHV¶SURSRVDOVDQGDGGLQJDGHDGOLQHIRUUDLVLQJDQ\GLVFRYHU\GLVSXWHV (&)1R & 7KH3DUWLHV¶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ase 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 19 of 61 &LWLOLNHZLVHDJJUHVVLYHO\SXUVXHGGLVFRYHU\IURP1DPHG3ODLQWLIIV,QUHVSRQVHWR &LWL¶VGLVFRYHU\UHTXHVWV1DPHG3ODLQWLIIVSURGXFHGPRUHWKDQSDJHVRIGRFXPHQWVDQGVDW IRUDGHSRVLWLRQ1DPHG3ODLQWLIIVDOVRVHUYHGLQLWLDOGLVFORVXUHVDQGUHVSRQGHGWRFRPSUHKHQVLYH FRQWHQWLRQLQWHUURJDWRULHV /HDG&RXQVHO¶VGLVFRYHU\HIIRUWVSURYLGHG3ODLQWLIIVZLWKDWKRURXJKXQGHUVWDQGLQJ RIWKHVWUHQJWKVDQGZHDNQHVVHVRIWKHLUFODLPVDQGDVVLVWHG/HDG&RXQVHOLQFRQVLGHULQJDQG HYDOXDWLQJWKHIDLUQHVVRIWKH6HWWOHPHQW$VXPPDU\RIWKRVHGLVFRYHU\HIIRUWVIROORZV ' 1DPHG3ODLQWLIIV¶'LVFRYHU\3URSRXQGHGRQ'HIHQGDQW 1DPHG3ODLQWLIIV¶'RFXPHQW5HTXHVWV 1DPHG 3ODLQWLIIV¶ )LUVW 6HW RI 5HTXHVWV IRU 3URGXFWLRQ ³)LUVW 5)3V´ ZKLFK LQFOXGHGWZHQW\WZRXQLTXHUHTXHVWVZDVVHUYHGRQ$XJXVW7KHVHUHTXHVWVVRXJKWinter alia L WUDQVDFWLRQGDWDIRU&LWL¶V&RQYHUVLRQVi.e.WKH);UDWHVWKDW&LWLDFWXDOO\DSSOLHGWKH); UDWHVWKDWZHUHSDVVHGRQWR$'5KROGHUVDQGWKHUHYHQXHJHQHUDWHGIRUHDFK&RQYHUVLRQGXULQJ WKH UHOHYDQW WLPH SHULRG DPRQJ RWKHU WKLQJV LL DFWXDO H[SHQVHV LQFXUUHG E\ 'HIHQGDQW LQ FRQQHFWLRQZLWK&RQYHUVLRQVDQG&DVK'LVWULEXWLRQV LLL DOO$'5VVSRQVRUHGE\&LWL LY WKH 'HSRVLW$JUHHPHQWVZKLFKJRYHUQHG&LWL¶VFRQWUDFWXDOREOLJDWLRQV Y 'HIHQGDQW¶VSROLFLHVDQG SUDFWLFHVIRU&RQYHUVLRQVDQG YL LQTXLULHVIURP$'5KROGHUVUHJDUGLQJ&LWL¶V);SUDFWLFHV&LWL SURYLGHGUHVSRQVHVDQGREMHFWLRQVWR1DPHG3ODLQWLIIV¶)LUVW5)3VRQ6HSWHPEHU 1DPHG 3ODLQWLIIV IROORZHG LWV )LUVW 5)3V ZLWK D 6HFRQG 6HW RI 5HTXHVWV IRU 3URGXFWLRQ ³6HFRQG5)3V´ RQ-DQXDU\VHHNLQJDGGLWLRQDOGHWDLOVUHJDUGLQJWKH$'5V DWLVVXHDQGDQ\UHODWHGWUDQVDFWLRQVRUZLWKKROGLQJV&LWLSURYLGHGUHVSRQVHVDQGREMHFWLRQVWRWKH 6HFRQG5)3VRQ)HEUXDU\ ,QUHVSRQVHWR1DPHG3ODLQWLIIV¶)LUVWDQG6HFRQG5)3V&LWLXOWLPDWHO\SURGXFHG RYHUSDJHVRIGRFXPHQWV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 20 of 61 7KH3DUWLHV¶1HJRWLDWLRQV5HJDUGLQJ(IILFLHQW'RFXPHQW'LVFRYHU\ 7KHSDUWLHVPHWDQGFRQIHUUHGH[WHQVLYHO\FRQFHUQLQJ1DPHG3ODLQWLIIV¶)LUVWDQG 6HFRQG5)3V )LUVWWKHSDUWLHVKHDYLO\QHJRWLDWHGWKHQXPEHUDQGLGHQWLW\RI&LWL¶V(6,FXVWRGLDQV DQGWKHVHDUFKWHUPVWKDWZRXOGEHXWLOL]HGWRLGHQWLI\GRFXPHQWVUHVSRQVLYHWR1DPHG3ODLQWLIIV¶ GLVFRYHU\UHTXHVWV7KHQHJRWLDWLRQVZLWKUHVSHFWWR(6,FXVWRGLDQVZHUHEDVHGRQ&LWL¶V,QLWLDO 'LVFORVXUHVRUJDQL]DWLRQDOFKDUWVSURGXFHGE\&LWLLQIRUPDWLRQFRQYH\HGGXULQJWKHSDUWLHV¶PHHW DQGFRQIHUVDQGLQGHSHQGHQWUHVHDUFKFRQGXFWHGE\/HDG&RXQVHO7KHSDUWLHVHYHQWXDOO\DJUHHG RQHLJKWSULPDU\(6,FXVWRGLDQVZLWKWKHLUFXVWRGLDOILOHVEHLQJVHDUFKHGIRUGRFXPHQWVGDWLQJ EDFNDVHDUO\DV :LWKUHVSHFWWRWKHVHDUFKWHUPVWREHDSSOLHGWRWKH(6,FXVWRGLDQV/HDG&RXQVHO LQLWLDOO\ SURSRVHG D VHW RI WHUPV GHVLJQHG WR LGHQWLI\ GRFXPHQWV UHODWHG WR &LWL¶V SUDFWLFH IRU KDQGOLQJ &DVK 'LVWULEXWLRQV DQG &RQYHUVLRQV &LWL REMHFWHG WR FHUWDLQ VXJJHVWHG WHUPV WR WKH H[WHQWWKDW&LWLEHOLHYHGWKH\ZHUHOHVVUHOHYDQWRUUHVXOWHGLQDQH[FHVVLYHQXPEHURIUHVXOWV7KH SDUWLHVWKXVHQJDJHGLQDVHULHVRIPHHWDQGFRQIHUVFRQFHUQLQJWKHVHDUFKWHUPVWKDWZRXOGEH DSSOLHGZLWKWKHSDUWLHVHYHQWXDOO\DJUHHLQJRQRYHUWZHQW\VHDUFKVWULQJVDLPHGDWLGHQWLI\LQJ UHOHYDQWLQIRUPDWLRQ 6HFRQGWKHSDUWLHVKDGH[WHQVLYHEDFNDQGIRUWKUHJDUGLQJWKHWUDQVDFWLRQGDWDIRU &LWL¶V&RQYHUVLRQV0RUHVSHFLILFDOO\1DPHG3ODLQWLIIVVRXJKWGDWDRQHDFK&DVK'LVWULEXWLRQIRU &LWLVSRQVRUHG$'5VGXULQJWKHUHOHYDQWWLPHSHULRGLQFOXGLQJWKHDPRXQWVDQGFXUUHQFLHVDW LVVXHWKH);UDWHVDWZKLFK&LWL RULWV);SURYLGHUV DFWXDOO\FRQYHUWHGWKHFXUUHQF\WKH);UDWHV ZKLFKZHUHSURYLGHGWR$'5KROGHUVDQ\ZLWKKROGLQJVDQGGHGXFWLRQVE\&LWLDQGWKHDPRXQWRI 86 GROODUV DFWXDOO\ GLVWULEXWHG ,Q UHVSRQVH &LWL SURGXFHG D VHULHV RI GLIIHUHQW VSUHDGVKHHWV FRQWDLQLQJSRUWLRQVRIWKHGDWDUHTXHVWHGE\1DPHG3ODLQWLIIV$IWHUWKHSURGXFWLRQRIHDFKVXFK Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 21 of 61 VSUHDGVKHHW/HDG&RXQVHOVRXJKWFODULILFDWLRQDQGRUIXUWKHUGHWDLODWWHPSWHGWRUHFRQFLOHDQ\ GLVFUHSDQFLHVDQGLGHQWLILHGGHILFLHQFLHVZKHUHDSSOLFDEOH&LWL¶VILQDOSURGXFWLRQVRIVXFKGDWD ZKLFKLQFOXGHGGDWDIURPLWVDIILOLDWHG);SURYLGHU:RUOG/LQN3D\PHQW6HUYLFHV ³:RUOG/LQN´ GLVFXVVHGEHORZ ZHUHFULWLFDOWR3ODLQWLIIV¶H[SHUW¶VFDOFXODWLRQRIGDPDJHVLQWKH/LWLJDWLRQ 7KLUGWKHSDUWLHVKHOGQXPHURXVPHHWDQGFRQIHUVUHODWHGWRWKHLGHQWLILFDWLRQDQG SURGXFWLRQRIGDWDIURP&LWL¶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¶V UHGDFWLRQV DQG SULYLOHJHORJV$IWHUUHYLHZ/HDG&RXQVHOZURWHOHWWHUVWR&LWLRQ$SULO0D\ DQG0D\LGHQWLI\LQJUHOHYDQFHDQGSULYLOHJHUHGDFWLRQVWKDW1DPHG3ODLQWLIIVYLHZHGDV LPSURSHU$IWHUPHHWLQJDQGFRQIHUULQJRQVHYHUDORFFDVLRQVWKHSDUWLHVZHUHDEOHWRUHDFKDQ DSSURSULDWHFRPSURPLVHUHJDUGLQJWKHVHLVVXHV 0RWLRQWR&RPSHO'RFXPHQWV $VQRWHGDERYHWKHSDUWLHVZHUHQRWDEOHWRUHVROYHWKHLUGLVDJUHHPHQWZLWKUHVSHFW WR&LWL¶VREOLJDWLRQWRSURGXFH&RQYHUVLRQGDWDIURPLWV);SURYLGHUV$VVXFKRQ0DUFK WKHSDUWLHVHDFKVXEPLWWHGDSUHPRWLRQOHWWHUWR0DJLVWUDWH-XGJH)R[UHTXHVWLQJDGLVFRYHU\ FRQIHUHQFHDQGVHWWLQJIRUWKWKHLUUHVSHFWLYHSRVLWLRQV2Q$SULO0DJLVWUDWH-XGJH)R[ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 22 of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¶VDJHQWLQSHUIRUPLQJ&RQYHUVLRQV(&)1R&LWLVXSSRUWHGLWVWZHQW\ILYHSDJHEULHI ZLWKWHQH[KLELWVDQGDIDFWXDOGHFODUDWLRQ(&)1R1DPHG3ODLQWLIIVILOHGDQLQHSDJHUHSO\ LQIXUWKHUVXSSRUWRIWKHLUPRWLRQWRFRPSHORQ$SULO(&)1R 7KHUHDIWHURQ-XQH0DJLVWUDWH-XGJH)R[LVVXHGD0HPRUDQGXPDQG 2UGHUGHQ\LQJ1DPHG3ODLQWLIIV¶PRWLRQWRFRPSHODQGVXVWDLQLQJ&LWL¶VREMHFWLRQVILQGLQJWKDW WKHUHOHYDQWGRFXPHQWUHTXHVWVSURSRXQGHGRQ&LWLZHUHYDJXHDQGDPELJXRXV(&)1R ,PSOHPHQWDWLRQRI5HYLHZ3URWRFRO /HDG &RXQVHO¶V GRFXPHQW UHYLHZ ZKLFK SURFHHGHG DFFRUGLQJ WR WKH SURWRFROV GLVFXVVHGEHORZEHJDQVKRUWO\DIWHU'HIHQGDQWVWDUWHGSURGXFLQJGRFXPHQWVLQ2FWREHU DQGZHUHXWLOL]HGWKURXJKWKHHQGRIIDFWGLVFRYHU\ )LUVW LQ DQWLFLSDWLRQ RI UHFHLYLQJ GRFXPHQWV /HDG &RXQVHO VROLFLWHG ELGV IURP GDWDEDVHYHQGRUVIRUDGRFXPHQWPDQDJHPHQWV\VWHPWKDWFRXOGDFFRPPRGDWHWKHVL]HRIWKH DQWLFLSDWHGSURGXFWLRQHQDEOHWKHUHYLHZRIGRFXPHQWVKRXVHGRQWKHGDWDEDVHE\PXOWLSOHXVHUV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 23 of 61 DQGRIIHUWKHODWHVWFRGLQJUHYLHZDQGVHDUFKFDSDELOLWLHVIRUHOHFWURQLFGLVFRYHU\PDQDJHPHQW /HDG&RXQVHOWKHQVHOHFWHGWKHGDWDEDVHYHQGRUWKDWRIIHUHGWKHQHFHVVDU\VHUYLFHVDWWKHPRVW FRVWHIIHFWLYHUDWH 6HFRQG WR IDFLOLWDWH WKH GRFXPHQW UHYLHZ /HDG &RXQVHO GHYHORSHG D GHWDLOHG UHYLHZSURWRFRO,QLWLDOO\/HDG&RXQVHOFUHDWHGDFRPSUHKHQVLYHFRGLQJPDQXDOZLWKH[SODQDWRU\ QRWHVFRYHULQJ L WKHNH\IDFWVDWLVVXHLQWKH/LWLJDWLRQ LL UHOHYDQFHFRGLQJLQVWUXFWLRQVDQG LLL ³WDJV´FRYHULQJWKHUHOHYDQWLVVXHVDQGVXELVVXHV 1H[W /HDG &RXQVHO DVVHPEOHG D WHDP RI H[SHULHQFHG DWWRUQH\V WR UHYLHZ DQG DQDO\]H 'HIHQGDQW¶V GRFXPHQWV 7KDW WHDP LQFOXGHG VHYHUDO ODZ\HUV ZKR DQDO\]HG &LWL¶V SURGXFWLRQ7KHVHODZ\HUVUHSRUWHGGLUHFWO\WRVHQLRUDVVRFLDWHVDQGSDUWQHUVDW.HVVOHU7RSD] SDUWLFLSDWHGLQZHHNO\PHHWLQJVWRGLVFXVVWKHLUILQGLQJVDQGSUHSDUHGPHPRUDQGDRQNH\IDFWXDO LVVXHV ,QUHTXLULQJWKHODZ\HUVLQYROYHGLQGRFXPHQWDQDO\VLVWRPHHWDWOHDVWZHHNO\ZLWK VHQLRU DVVRFLDWHV DQGRU SDUWQHUV DV D JURXS /HDG &RXQVHO VRXJKW WR HQVXUH WKDW UHYLHZLQJ DWWRUQH\VZHUHDZDUHRI L WKHLVVXHVEHLQJLGHQWLILHGLQWKHGRFXPHQWUHYLHZ LL ZK\FHUWDLQ GRFXPHQWVZHUHKLJKYDOXHGRFXPHQWVDQG LLL KRZVXFKGRFXPHQWVZHUHLQIRUPLQJ1DPHG 3ODLQWLIIV¶WKHRULHVRIOLDELOLW\7KHZHHNO\PHHWLQJVDOVRVXPPDUL]HGDQGGLVFXVVHGWKH³KRWWHVW´ GRFXPHQWV LGHQWLILHG LQ D JLYHQ ZHHN %H\RQG IRUPDO PHHWLQJV WKH DWWRUQH\V LQYROYHG LQ UHYLHZLQJGRFXPHQWVIRUWKLVPDWWHUFRPPXQLFDWHGIUHTXHQWO\WRHQVXUH WKDW FRGLQJ GHFLVLRQV ZHUHDSSOLHGFRQVLVWHQWO\DQGWKDWDOOWHDPPHPEHUVZHUHDSSULVHGRILPSRUWDQWGHYHORSPHQWV ZLWKUHVSHFWWRWKHGRFXPHQWUHYLHZ )LQDOO\/HDG&RXQVHOXQGHUVWRRGWKDW'HIHQGDQW¶VGRFXPHQWVZRXOGYHU\OLNHO\ IRUPWKHEDVLVIRUOLDELOLW\DWVXPPDU\MXGJPHQWDQGWULDO7KHUHIRUHVLPXOWDQHRXVO\ZLWKWKH Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 24 of 61 OLQHDUUHYLHZRIWKHSURGXFWLRQIRULPSRUWDQWGRFXPHQWV/HDG&RXQVHOHQJDJHGLQDQXPEHURI DGGLWLRQDOGLVFRYHU\SURMHFWVWKDWLQYROYHGDPRUHWDUJHWHGUHYLHZDQGV\QWKHVLVRI'HIHQGDQW¶V SURGXFWLRQ 3HUKDSVWKHPRVWLPSRUWDQWSURMHFWLQWKLVUHVSHFWZDV/HDG&RXQVHO¶VUHYLHZRI WKH 'HSRVLW $JUHHPHQWV 7KHUH ZHUH WZR FULWLFDO FRPSRQHQWV WR WKLV UHYLHZ )LUVW 1DPHG 3ODLQWLIIVQHHGHGWRGHWHUPLQHZKLFK'HSRVLW$JUHHPHQWVJRYHUQHGHDFK$'57KLVZDVQRVPDOO WDVN'HIHQGDQWVSRQVRUHGKXQGUHGVRI$'5VGXULQJWKHUHOHYDQWWLPHSHULRGZLWKFRUUHVSRQGLQJ 'HSRVLW$JUHHPHQWVERWKEHLQJSURGXFHGLQGLVFRYHU\DQGEHLQJDYDLODEOHSXEOLFO\,QPDQ\FDVHV 1DPHG3ODLQWLIIVLGHQWLILHGPXOWLSOH'HSRVLW$JUHHPHQWV²VSDQQLQJGLIIHUHQWDPHQGPHQWVWLPH SHULRGVDQGHYHQSULRUGHSRVLWRU\EDQNV²IRUDJLYHQ$'56HFRQGRQFHWKHRSHUDWLYH'HSRVLW $JUHHPHQWVZHUHLGHQWLILHG1DPHG3ODLQWLIIVSHUIRUPHGDVXEVWDQWLYHUHYLHZRIHDFKDJUHHPHQW WRGHWHUPLQHZKHWKHUWKH\ L FRQWDLQHGWKHREOLJDWLRQVQHFHVVDU\IRU1DPHG3ODLQWLIIV¶EUHDFKRI FRQWUDFWFODLPVDQG LL ZHUHVXEVWDQWLDOO\VLPLODUWRRWKHU'HSRVLW$JUHHPHQWVVXFKWKDWFODVV FHUWLILFDWLRQZRXOGEHDSSURSULDWH%RWKSURMHFWVZHUHHVVHQWLDOQRWMXVWIRUFODVVFHUWLILFDWLRQEXW IRUVXPPDU\MXGJPHQWDQGWULDOLIWKHFDVHKDGQRWUHVROYHG 'HSRVLWLRQV 'HSRVLWLRQVVHUYHGDVDFULWLFDOFRPSRQHQWRIGLVFRYHU\LQWKLV/LWLJDWLRQIURPERWK DIDFWJDWKHULQJSHUVSHFWLYHDQGLQWHUPVRIIOHVKLQJRXWWKHOHJDODUJXPHQWVHDFKSDUW\PDGH 1DPHG3ODLQWLIIVEHJDQWDNLQJGHSRVLWLRQVRI&LWL¶VZLWQHVVHVRQ$SULO%HWZHHQ$SULODQG WKH HQG RI -XQH /HDG &RXQVHO GHSRVHG VHYHQ RI &LWL¶V FXUUHQW DQG IRUPHU HPSOR\HHV SULQFLSDOO\ LQ 1HZ &RXQVHODOVRGHSRVHGDFRUSRUDWHUHSUHVHQWDWLYHRI:RUOG/LQNDQGIRUPHU:RUOG/LQNHPSOR\HH 0RUHWKDQQLQHW\WRWDOH[KLELWVZHUHPDUNHGDWWKHVHGHSRVLWLRQV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 25 of 61 7KH IDFW GHSRVLWLRQV WKDW /HDG &RXQVHO WRRN ZHUH DW WLPHV KLJKO\ WHFKQLFDO FRQFHUQLQJ WKH PHFKDQLFV RI ); DQG WKH ZRUNLQJV RI &LWL¶V $'5 GHSDUWPHQW %XW 1DPHG 3ODLQWLIIV¶GLVFRYHU\HIIRUWVHQDEOHGWKHPWRFRQVWUXFWDFRKHVLYHQDUUDWLYHRIWKHGHYHORSPHQWRI &LWL¶V&RQYHUVLRQVGXULQJWKHUHOHYDQWWLPHSHULRG )RU WKH )HGHUDO 5XOH E GHSRVLWLRQ RI &LWL ZKLFK GHULYHGIURPD FRPSUHKHQVLYHQLQHWHHQWRSLFQRWLFH/HDG&RXQVHOGHSRVHGWZR&LWLFRUSRUDWHGHVLJQHHV7RSLFV IURPWKHQRWLFHLQFOXGHG'HIHQGDQW¶VSROLFLHVDQGSURFHGXUHVUHJDUGLQJ L &DVK'LVWULEXWLRQV LL WKH H[HFXWLRQ SURFHVVLQJ DQG SULFLQJ RI ); LLL FRPPXQLFDWLRQV ZLWK $'5 KROGHUV RU IRUHLJQ LVVXHUV LY &LWL¶V UHFRUG NHHSLQJ SURFHVVHV DQG Y WKH QHJRWLDWLRQ DQG WHUPV RI WKH 'HSRVLW$JUHHPHQWV 7KH VSHFLILF FRQWRXUV RI WKH WHVWLPRQ\ SURYLGHG E\ HDFK )HGHUDO 5XOH E GHVLJQHH ZDV QHJRWLDWHG RYHU WKH FRXUVH RI QXPHURXV PHHW DQG FRQIHU VHVVLRQV $OO WROG WKH )HGHUDO5XOH E WHVWLPRQ\ZDVLQVWUXPHQWDOIURPERWKDIDFWJDWKHULQJSHUVSHFWLYH e.g.E\ KHOSLQJ3ODLQWLIIVXQGHUVWDQGKRZ&LWL¶V$'5GHSDUWPHQWRSHUDWHGDQGKRZ&RQYHUVLRQVZHUH SULFHG DQGIURPDVWUDWHJLFVWDQGSRLQW 1RWDEO\/HDG&RXQVHOZRUNHGKDUGWRUHGXFHGHSRVLWLRQFRVWVZKLOHHQVXULQJWKDW FULWLFDOLQIRUPDWLRQUHJDUGLQJ&LWL¶V$'5EXVLQHVVDQG);SUDFWLFHVZDVREWDLQHG7RWKDWHQG /HDG &RXQVHO QHJRWLDWHG KLJKO\ IDYRUDEOH SULFLQJ IRU GHSRVLWLRQ VHUYLFHV DQG HIIHFWLYHO\ XVHG WHFKQRORJ\WRNHHSFRVWVIRUGHSRVLWLRQVGRZQ /HDG &RXQVHO DOVR PDQDJHG WKHLU LWV HIILFLHQWO\ LQ SUHSDULQJ IRU LQGLYLGXDO GHSRVLWLRQV)LUVWWLHUGRFXPHQWUHYLHZDVGHVFULEHGDERYHZDVFRQGXFWHGE\DWWRUQH\VZKRVH SULPDU\UHVSRQVLELOLW\ZDVWRSHUIRUPGRFXPHQWUHYLHZ$VVRFLDWHDWWRUQH\VZRXOGWKHQFRQGXFW DVHFRQGWLHUUHYLHZRIWKRVHGRFXPHQWVPRVWOLNHO\WRFRQWDLQXVHIXOLQIRUPDWLRQIRUDJLYHQ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 26 of 61 GHSRQHQW 2IWHQ WKLV LQYROYHG UHYLHZLQJ DOO ³+RW´ DQG ³+LJKO\ 5HOHYDQW´ GRFXPHQWV LQ D GHSRQHQW¶VFXVWRGLDOILOH,IWLPHSHUPLWWHGWKLVUHYLHZZRXOGEHIXUWKHUH[SDQGHGWRLQFOXGHDOO ³+RW´DQG³+LJKO\5HOHYDQW´GRFXPHQWVPHQWLRQLQJWKDWGHSRQHQWDVZHOO )URPWKLVUHYLHZWKHGRFXPHQWUHYLHZDWWRUQH\VZRXOGFUHDWHDPHPRUDQGXPDQG GHSRVLWLRQNLWLGHQWLI\LQJGRFXPHQWVWKDWFRXOGSRWHQWLDOO\VHUYHDVHIIHFWLYHWRROVDQGH[KLELWVIRU DJLYHQGHSRVLWLRQ7KLVPHPRUDQGXPZRXOGDOVRFRQWDLQDGLVFXVVLRQ RI WKH GHSRQHQW¶V UROH ZLWKLQ&LWLDQGLGHQWLI\SRWHQWLDODUHDVRILQWHUHVWWREHH[SORUHGDWGHSRVLWLRQDVZHOODVDQ\SULRU WHVWLPRQ\WKDWPHQWLRQHGWKHGHSRQHQW8VLQJWKHVHPHWKRGV1DPHG3ODLQWLIIVJDLQHGWKHEHQHILW RIPXOWLSOHSHUVSHFWLYHVZLWKRXWGXSOLFDWLQJHIIRUWV :ULWWHQ'LVFRYHU\ $VSHUPLWWHGE\WKH)HGHUDO5XOHVWKHSDUWLHVDOVRHQJDJHGLQH[WHQVLYHDQGWLPH FRQVXPLQJZULWWHQGLVFRYHU\ )LUVW 1DPHG 3ODLQWLIIV SUHSDUHG DQG VHUYHG WZHOYH KLJKO\ SDUWLFXODUL]HG LQWHUURJDWRULHVFRQWDLQHGLQWKUHHXQLTXHVHWVRQ&LWL,QLWLDOO\1DPHG3ODLQWLIIV¶LQWHUURJDWRULHV ZHUHGHVLJQHGWRDOORZ1DPHG3ODLQWLIIVWRLGHQWLI\LQGLYLGXDOVZLWKNQRZOHGJHRI&LWL¶VSURFHVV IRU &RQYHUVLRQV LQGLYLGXDOV ZLWK UHVSRQVLELOLW\ IRU GUDIWLQJ DQG QHJRWLDWLQJ WKH 'HSRVLW $JUHHPHQWV DQG LQGLYLGXDOV UHVSRQVLEOH IRU FRPPXQLFDWLQJ ZLWK $'5 KROGHUV 7KH LQWHUURJDWRULHVDOVRVRXJKWWKHLGHQWLILFDWLRQRIDQ\HQWLWLHVLQYROYHGLQ&RQYHUVLRQV $V 1DPHG 3ODLQWLIIV¶ NQRZOHGJH RI WKH FDVH HYROYHG RYHU WLPH²JDLQHG IURP DQDO\]LQJVLJQLILFDQWDPRXQWVRIWHVWLPRQLDODQGGRFXPHQWDU\HYLGHQFH²1DPHG3ODLQWLIIVZHUH DEOHWRFUDIWDQGVHUYHPRUHWDUJHWHGLQWHUURJDWRULHVGHVLJQHGWRDGGUHVVVSHFLILFSURRIVQHHGHGIRU FODVVFHUWLILFDWLRQDQGOLDELOLW\)RULQVWDQFH1DPHG3ODLQWLIIV¶VHFRQGVHWRILQWHUURJDWRULHVVRXJKW SDUWLFXODULQIRUPDWLRQUHJDUGLQJLGHQWLILHG&DVK'LVWULEXWLRQVDQG&RQYHUVLRQV1DPHG3ODLQWLIIV¶ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 27 of 61 WKLUG VHW RI LQWHUURJDWRULHV ODUJHO\ UHTXHVWHG &LWL WR LGHQWLI\ WKH HYLGHQFH LQ VXSSRUW RI LWV DIILUPDWLYHGHIHQVHVDQGSULPDU\DUJXPHQWVRQOLDELOLW\ 1DPHG3ODLQWLIIVDOVRGUDIWHGDQGVHUYHGWKLUWHHQXQLTXH5HTXHVWVIRU$GPLVVLRQ DVNLQJ'HIHQGDQWWRDGPLWFHUWDLQIXQGDPHQWDOIDFWVUHOHYDQWWRFODVVFHUWLILFDWLRQDQGWKHPHULWV )RUH[DPSOHWKHUHTXHVWVFRQFHUQHG L WKHGLVFORVXUHRI);UDWHVWR$'5KROGHUV LL &LWL¶V FKDUDFWHUL]DWLRQRIWKHVSUHDGIRU&RQYHUVLRQVDQG LLL WKHVL]HRIWKHSURSRVHGFODVV 1DPHG3ODLQWLIIV¶'LVFRYHU\3URSRXQGHGRQ1RQ3DUWLHV 1DPHG 3ODLQWLIIV DOVR VHUYHG WKUHH QRQSDUW\ VXESRHQDV²RQ :RUOG/LQN &RPSXWHUVKDUH,QF ³&RPSXWHUVKDUH´ DQGWKH'HSRVLWDU\7UXVW&RPSDQ\ ³'7&´ 7KHVXESRHQDWR:RUOG/LQNRQHRI&LWL¶V);SURYLGHUVVRXJKWGDWDUHODWHGWR &RQYHUVLRQV1DPHG3ODLQWLIIVDOVRGHSRVHGDFRUSRUDWHUHSUHVHQWDWLYHRI:RUOG/LQNDQGDIRUPHU :RUOG/LQN HPSOR\HH FRQFHUQLQJ WKH SURGXFHG GDWD DQG :RUOG/LQN¶V UROH DQG SUDFWLFH ZLWK UHVSHFWWR&RQYHUVLRQV 7KHVXESRHQDVWR&RPSXWHUVKDUHDQG'7&DLPHGDWOHDUQLQJWKHLGHQWLWLHVRIFODVV PHPEHUV i.e.$'5KROGHUV 1DPHG3ODLQWLIIVPHWDQGFRQIHUUHGRQQXPHURXVRFFDVLRQVZLWK ERWK&RPSXWHUVKDUHDQG'7&UHJDUGLQJWKHVFRSHRIWKHLUUHVSHFWLYHSURGXFWLRQVDQGWKHUHODWHG FRVWVDVVRFLDWHGZLWKHDFKSURGXFWLRQ )URP '7& 1DPHG 3ODLQWLIIV REWDLQHG VHFXULW\ SRVLWLRQ UHSRUWV WKDW LGHQWLILHG EURNHUKROGLQJVDWWKHWLPHRIHDFK&DVK'LVWULEXWLRQ:LWKUHVSHFWWR&RPSXWHUVKDUH1DPHG 3ODLQWLIIV¶UHTXHVWUHTXLUHGLWWRFUHDWHDEHVSRNHFRPSXWHUSURJUDPWRKDUYHVWWKHLQIRUPDWLRQ VRXJKWDVZHOODVGHYRWHVHYHUDOHPSOR\HHVIXOOWLPHWRRYHUVHHLQJWKDWSURFHVV7KHQHJRWLDWLRQV &RPSXWHUVKDUHLVDWKLUGSDUW\³WUDQVIHUDJHQW´ZKRKHOSHGHIIHFWXDWHGLVWULEXWLRQVRI86 'ROODUVWR$'5KROGHUVIROORZLQJ&RQYHUVLRQV'7&LVWKHUHJLVWHUHGKROGHURQEHKDOIRIWKH PDMRULW\RI&ODVV0HPEHUVZKRRZQ$'5VEHQHILFLDOO\ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 28 of 61 UHJDUGLQJWKDWSURFHVVRFFXUUHGRYHUWKHFRXUVHRIVHYHUDOPRQWKVDQGLQYROYHGFRXQWOHVVSKRQH FDOOVDQGZULWWHQFRUUHVSRQGHQFH7KHGDWDXOWLPDWHO\UHFHLYHGZDVLQVWUXPHQWDOWR/HDG&RXQVHO LQHIIHFWXDWLQJQRWLFHRIWKH6HWWOHPHQWWRWKH&ODVVSDUWLFXODUO\WR5HFRUG+ROGHU'DPDJHV&ODVV 0HPEHUVDQGGHYHORSLQJWKHSURSRVHGSODQIRUDOORFDWLQJWKH6HWWOHPHQWSURFHHGV ( 'HIHQGDQW¶V'LVFRYHU\3URSRXQGHGRQ1DPHG3ODLQWLIIV &LWLDOVRVRXJKWH[WHQVLYHGLVFRYHU\IURP1DPHG3ODLQWLIIV)LUVWRQ1RYHPEHU 'HIHQGDQW VHUYHG 1DPHG 3ODLQWLIIV ZLWK WZHQW\WKUHH XQLTXH GRFXPHQW UHTXHVWV ZKLFK FRYHUHG VXEMHFWV LQFOXGLQJ L 1DPHG 3ODLQWLIIV¶ LQYHVWPHQWV LQ $'5V LL 1DPHG 3ODLQWLIIV¶ LQYHVWPHQWVWUDWHJLHVDQGUHFRUGV LLL 1DPHG3ODLQWLIIV¶SDUWLFLSDWLRQLQWKH/LWLJDWLRQDQG LY 1DPHG 3ODLQWLIIV¶ FRQYHUVLRQ RI IRUHLJQ FXUUHQF\ LQWR 86 'ROODUV1DPHG3ODLQWLIIVVHUYHG UHVSRQVHVDQGREMHFWLRQVWR'HIHQGDQW¶VGRFXPHQWUHTXHVWVRQ'HFHPEHU 7KH SDUWLHV WKHUHDIWHU PHW DQG FRQIHUUHG UHJDUGLQJ WKH VFRSH RI 'HIHQGDQW¶V GRFXPHQWUHTXHVWVZKLFKLQFOXGHGVXEVWDQWLDOZULWWHQFRUUHVSRQGHQFH2QHLVVXHWKDWUHTXLUHG UHVROXWLRQZDV'HIHQGDQW¶VUHTXHVWIRULQIRUPDWLRQUHJDUGLQJDOO$'5VKHOGE\1DPHG3ODLQWLIIV UHJDUGOHVV RI ZKHWKHU RU QRW VXFK $'5V ZHUH VSRQVRUHG E\ &LWL $OWKRXJK 1DPHG 3ODLQWLIIV LQLWLDOO\REMHFWHGWRWKLVUHTXHVWLQRUGHUWRDYRLGDQXQQHFHVVDU\GLVSXWHWKH\ODWHUDJUHHGWR SURGXFH GRFXPHQWV UHIOHFWLQJ VXFK LQYHVWPHQWV 7KH SDUWLHV DOVR PHW DQG FRQIHUUHG RYHU WKH DSSURSULDWHWLPHSHULRGDSSOLFDEOHWR'HIHQGDQW¶VUHTXHVW ,QUHVSRQVHWR'HIHQGDQW¶VGRFXPHQWVUHTXHVWV1DPHG3ODLQWLIIVZLWKWKHKHOSRI /HDG &RXQVHO SHUIRUPHG DQ H[WHQVLYH VHDUFK DQG UHYLHZ IRU UHOHYDQW GRFXPHQWV LQ WKHLU SRVVHVVLRQFXVWRG\RUFRQWURO6XFKGRFXPHQWVZHUHORFDWHGLQERWKKDUGFRS\DQGHOHFWURQLF IRUPDW :LWK WKH DVVLVWDQFH RI /HDG &RXQVHO DGGLWLRQDO GRFXPHQWV ZHUH UHWULHYHG IURP WKLUG SDUWLHVLQFOXGLQJLQYHVWPHQWEURNHUVDQGPDQDJHUV,QWRWDO1DPHG3ODLQWLIIVSURGXFHGPRUHWKDQ SDJHVRIGRFXPHQWVWR'HIHQGDQW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 29 of 61 6HFRQG RQ0D\ &LWL GHSRVHG 0U 0HUU\PDQ LQGLYLGXDOO\DQG LQ KLV FDSDFLW\DVWUXVWHHRIWKH$P\:KLWDNHU0HUU\PDQ7UXVWDQG%0HUU\PDQDQG$0HUU\PDQWK *HQHUDWLRQ7UXVWRQIDUUDQJLQJVXEMHFWVLQFOXGLQJKLVNQRZOHGJHRIWKHFDVHKLVLQYHVWPHQW VWUDWHJ\ DQG KLV ILQDQFLDO EDFNJURXQG DQG UHVRXUFHV /HDG &RXQVHO VSHQW VLJQLILFDQW WLPH SUHSDULQJ0U0HUU\PDQIRUWKLVGHSRVLWLRQ,QDGYDQFHD³GHSRVLWLRQNLW´ZDVFUHDWHGLQFOXGLQJ DGLVFXVVLRQRIDOOLPSRUWDQWGRFXPHQWV HLWKHUGRFXPHQWVSURGXFHGE\1DPHG3ODLQWLIIVRURWKHU GRFXPHQWVUHOHYDQWWRWKH/LWLJDWLRQ DVZHOODVOLNHO\DUHDVRILQTXLU\/HDG&RXQVHODOVRPHW ZLWK0U0HUU\PDQLQSHUVRQIRUVHYHUDOKRXUV &LWL DOVR LVVXHG WKUHH GRFXPHQW VXESRHQDV DQG WKUHH GHSRVLWLRQ VXESRHQDV WR 1DPHG 3ODLQWLIIV¶ LQYHVWPHQW DGYLVRUV /HDG &RXQVHO DVVLVWHG WZR RI WKHVH QRQSDUWLHV LQ FROOHFWLQJDQGSURGXFLQJUHVSRQVLYHGRFXPHQWVDQGGHIHQGHGWKHGHSRVLWLRQRI1DPHG3ODLQWLIIV¶ LQYHVWPHQWDGYLVRUVWKDW&LWLGHSRVHG 7KLUG'HIHQGDQWVHUYHGWZRVHWVRILQWHUURJDWRULHVRQ1DPHG3ODLQWLIIV7KHILUVW VHW RI LQWHUURJDWRULHV VHUYHG RQ -DQXDU\ FRQFHUQHG 1DPHG 3ODLQWLIIV¶ DQG /HDG &RXQVHO¶V LQYHVWLJDWLRQ RI WKH DOOHJDWLRQV LQ WKH &RPSODLQW 1DPHG 3ODLQWLIIV UHVSRQGHG DQG REMHFWHGRQ)HEUXDU\DIWHUZKLFKWKHSDUWLHVHQJDJHGLQPXOWLSOHPHHWDQGFRQIHUV 1DPHG3ODLQWLIIVVXSSOHPHQWHGWKHLUUHVSRQVHVRQ0DUFK &LWL¶V VHFRQG VHW RI LQWHUURJDWRULHV VHUYHG RQ 0D\ ZHUH FRQWHQWLRQ LQWHUURJDWRULHV VHHNLQJ ZLGHUDQJLQJ LQIRUPDWLRQ UHJDUGLQJ DPRQJRWKHUWKLQJV L WKH LGHQWLILFDWLRQ RI WKH SURYLVLRQV RI WKH 'HSRVLW $JUHHPHQWV WKDW /HDG 3ODLQWLIIV FRQWHQG ZHUH EUHDFKHG LL ZKHWKHU1DPHG3ODLQWLIIVFRQWHQGWKDW&LWLEUHDFKHGWKH'HSRVLW$JUHHPHQWVZLWK UHVSHFWWRHDFK&RQYHUVLRQ LLL ZKHWKHU1DPHG3ODLQWLIIVFRQWHQGWKDWWKH'HSRVLW$JUHHPHQWV ZHUHEUHDFKHGZKHQDIILOLDWHGRUXQDIILOLDWHG);SURYLGHUVFRQGXFWHG&RQYHUVLRQV LY ZKHWKHU Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 30 of 61 1DPHG3ODLQWLIIVFRQWHQGWKDW&LWLFRQFHDOHGLWVSUDFWLFHZLWKUHVSHFWWRHDFK&RQYHUVLRQ Y ZKHWKHU1DPHG3ODLQWLIIVFRQWHQGWKDW&LWLZDVREOLJDWHGWRFRQGXFW&RQYHUVLRQVDWDSDUWLFXODU );UDWHDQG YL ZKHWKHUFHUWDLQLQIRUPDWLRQRQ);UDWHVZDVSXEOLFO\DYDLODEOH$IWHUSHUIRUPLQJ D WKRURXJK LQYHVWLJDWLRQ 1DPHG 3ODLQWLIIV VXEPLWWHG UHVSRQVHVDQG REMHFWLRQV WR 'HIHQGDQW¶V VHFRQGVHWRILQWHUURJDWRULHVRQ-XQH ) 3ODLQWLIIV¶6LJQLILFDQW:RUNZLWK([SHUWV )URPWKHRXWVHW1DPHG3ODLQWLIIVNQHZWKDWPDQ\DVSHFWVRIWKHLUFODLPVDQGLQ SDUWLFXODU &LWL¶V GHIHQVHV MHFW RI H[SHUW WHVWLPRQ\ ,Q VXSSRUW RI FODVV FHUWLILFDWLRQ 1DPHG 3ODLQWLIIVUHWDLQHG*:LOOLDP%URZQ-U(VTSULQFLSDORI5LYHUV&DSLWDOIRUPHU)HOORZRI 'XNH/DZ6FKRRO ZKHUHKHKDVEHHQD3URIHVVRURIWKH3UDFWLFHRI/DZ DQGIRUPHUKHDGRI); VDOHVDW0RUJDQ6WDQOH\DQG*ROGPDQ6DFKVWRSUHSDUHDFODVVZLGHGDPDJHVDQDO\VLV 3ODLQWLIIV¶OHJDOWKHRU\²WKDW&LWLZDVREOLJDWHGWRSURYLGH$'5KROGHUVZLWKWKH );UDWHVWKDWZHUHDFWXDOO\DYDLODEOHWR'HIHQGDQWDWWKHWLPHD&DVK'LVWULEXWLRQZDVFRQYHUWHG EXWWKDWLQSUDFWLFH&LWLDGGHGDVSUHDGWRWKH);UDWHVDFWXDOO\REWDLQHG²SURYLGHGWKHVWDUWLQJ SRLQW IRU 3URIHVVRU %URZQ¶V GDPDJHV PHWKRGRORJ\ $FFRUGLQJO\ 3URIHVVRU %URZQ¶V GDPDJHV PHWKRGRORJ\VRXJKWWRPHDVXUHWKHVSUHDGRUWKHGLIIHUHQFHEHWZHHQWKH);UDWHDFWXDOO\DYDLODEOH WR&LWLLQWKHPDUNHWDQGWKH);UDWHDWZKLFK$'5KROGHUVDFWXDOO\UHFHLYHG&DVK'LVWULEXWLRQV 7KHUH ZHUH QXPHURXV VWHSV LQYROYHG LQ GHYHORSLQJ WKH IDFWXDO IRXQGDWLRQ IRU 3URIHVVRU%URZQ¶VDQDO\VLVZKLFKZHUHHDFKDVVLVWHGE\/HDG&RXQVHO7ZRVWHSVLQSDUWLFXODU ZHUH FULWLFDO WR GHYHORSLQJ WKH SURRI QHFHVVDU\ )LUVW /HDG &RXQVHO HQGHDYRUHG WR SURFXUH FRPSOHWHDQGDFFXUDWHGDWDIURP&LWLUHJDUGLQJLWV&RQYHUVLRQV7KLVGDWDLQFOXGHGWKHUHOHYDQW &DVK'LVWULEXWLRQVIRU&LWLVSRQVRUHG$'5VWKHFXUUHQFLHVLQYROYHGLQHDFK);WUDQVDFWLRQWKH YROXPHRIVXFK&DVK'LVWULEXWLRQVWKHGDWHRIUHOHYDQW);WUDQVDFWLRQVWKHLGHQWLWLHVRIWKH); SURYLGHUVFRQGXFWLQJ&RQYHUVLRQVWKH);UDWHVDSSOLHGE\&LWL ZKHUHSURYLGHG WKH);UDWHV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 31 of 61 SDVVHG RQ WR $'5 KROGHUV DQG WKH SURFHHGV UHFRUGHG E\ 'HIHQGDQW DV D UHVXOW RI HDFK ); WUDQVDFWLRQ ZKHUH SURYLGHG 6HFRQG 1DPHG 3ODLQWLIIV QHHGHG WR XQGHUVWDQG WKH SULFLQJ SURWRFROV WKH YDULRXV V\VWHPV DQG GDWDEDVHV WKDW 'HIHQGDQW PDLQWDLQHG DQG YDULRXV FRGLQJ FRQYHQWLRQVWKDWZRXOGSHUPLWDQDQDO\VLVE\3ODLQWLIIV¶H[SHUW6XFKLQIRUPDWLRQZDVVRXJKWDQG REWDLQHGWKURXJKLQWHUURJDWRULHVGRFXPHQWUHTXHVWVPHHWDQGFRQIHUVDQGWKHGHSRVLWLRQVRI&LWL DQG:RUOG/LQN 7KURXJK WKHVH GLVFRYHU\ HIIRUWV 3URIHVVRU %URZQ ZDV DEOH WR DQDO\]H D ODUJH YROXPHRIGDWDRQ&LWL¶V&RQYHUVLRQVDQGXOWLPDWHO\SURGXFHGDGDPDJHVUHSRUWLQFOXGLQJDFODVV ZLGH GDPDJHV PHWKRGRORJ\ LQ VXSSRUW RI FODVV FHUWLILFDWLRQ :KHUH &RQYHUVLRQ GDWD ZDV LQFRPSOHWH3URIHVVRU%URZQ¶VPHWKRGRORJ\ZDVGHVLJQHGWRDSSUR[LPDWHWKHVSUHDGVDGGHGE\ &LWL3URIHVVRU%URZQ¶VGDPDJHVPRGHOXOWLPDWHO\IRUPHGWKHEDVLVIRUWKHQHJRWLDWLRQVDPRQJ WKHSDUWLHVWKDWUHVXOWHGLQWKHUHVROXWLRQRIDOOFODLPVDWLVVXHKHUH ,QUHVSRQVHWR3URIHVVRU%URZQ¶VUHSRUWDQGFODVVFHUWLILFDWLRQ&LWLVHUYHGWZR H[SHUWUHSRUWV L WKHUHSRUWRI%UXFH6WURPERPZKLFKFULWLTXHG3URIHVVRU%URZQ¶VPHWKRGRORJ\ DQG SURYLGHG D GLIIHULQJ DQDO\VLV RI GDPDJHV DQG LL WKH UHSRUW RI 8UV %HUQHJJHU ZKLFK PDLQWDLQHGWKDWWKHXVHRIVSUHDGVE\);SURYLGHUVZDVVWDQGDUGLQGXVWU\SUDFWLFHDQGWKDWVSUHDGV ZHUHGHVLJQHGWRFDSWXUHFRVWVDVVRFLDWHGZLWK); 3URIHVVRU%URZQZLWKWKHDVVLVWDQFHRI/HDG&RXQVHOWKHUHDIWHUSUHSDUHGDUHEXWWDO UHSRUWZKLFKIXUWKHUGHIHQGHGKLVGDPDJHVPHWKRGRORJ\DQGUHVSRQGHGWR DQGGLVDJUHHGZLWK WKHRSLQLRQVRI0U%HUQHJJHUDVWRVWDQGDUGSUDFWLFHLQWKH);LQGXVWU\ ,QFRQQHFWLRQZLWK&LWL¶VH[SHUWUHSRUWV/HDG3ODLQWLIIVZHUHUHTXLUHGWRUHYLHZ DQG GLJHVW PRUH WKDQ ILIW\ XQLTXH VRXUFHV RI LQIRUPDWLRQ 1DPHG 3ODLQWLIIV GHSRVHG ERWK 'U Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 32 of 61 6WURPERPDQG0U%HUQHJJHUDQGGHIHQGHG3URIHVVRU%URZQ¶VGHSRVLWLRQH[SHQGLQJVLJQLILFDQW WLPHSUHSDULQJIRUVXFKGHSRVLWLRQV * 0RWLRQ3UDFWLFH 1DPHG3ODLQWLIIV¶0RWLRQIRU&ODVV&HUWLILFDWLRQ 2Q -XQH 1DPHG 3ODLQWLIIV PRYHG IRU FODVV FHUWLILFDWLRQ ³0RWLRQ WR &HUWLI\´ 1DPHG3ODLQWLIIV¶0RWLRQWR&HUWLI\ZDVVXSSRUWHGE\DWZHQW\ILYHSDJHPHPRUDQGXP DVZHOODVVL[W\VL[H[KLELWV(&)1RV,QSDUWLFXODU1DPHG3ODLQWLIIVVRXJKWWRFHUWLI\ XQGHU)HGHUDO5XOH x $³'DPDJHV&ODVV´FRQVLVWLQJRIDOOHQWLWLHVDQGLQGLYLGXDOVZKRUHFHLYHG&DVK 'LVWULEXWLRQVIURPWKLUW\ILYH&LWLVSRQVRUHG$'5VIURP-DQXDU\WRWKH SUHVHQWDQGZHUHGDPDJHGWKHUHE\DQG x $Q³,QMXQFWLRQ&ODVV´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¶V &RQYHUVLRQV 7KLV ZDV FULWLFDO WR HVWDEOLVKLQJ D FRPPRQ SUDFWLFH²RU EUHDFK²E\ 'HIHQGDQW 7KH GHSRVLWLRQV 1DPHG 3ODLQWLIIV WRRN RI &LWL¶V ZLWQHVVHVZHUHDWWLPHVKLJKO\ WHFKQLFDOEXWWKURXJKWKHVHGLVFRYHU\HIIRUWV1DPHG3ODLQWLIIVZHUHDEOHWRFRQVWUXFWDFRKHVLYH QDUUDWLYHRI&LWL¶V);SUDFWLFHVDQG$'5EXVLQHVV 1DPHG3ODLQWLIIVDOVRKDGWRGLVFRYHUDQGXQLWHLQWRFRPPRQWKHPHVWKHDFWXDO FRQWUDFWXDOREOLJDWLRQV VXSSOLHGE\WKH'HSRVLW$JUHHPHQWV WKDWERXQGWKHFODVV$VH[SODLQHG LQGHWDLODERYH1DPHG3ODLQWLIIVSHUIRUPHGDQH[WHQVLYHVHDUFKIRUDQGUHYLHZRIHDFKRIWKH Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 33 of 61 'HSRVLW $JUHHPHQWV DW LVVXH LQ WKLV /LWLJDWLRQ 3ULRU WR ILOLQJ WKHLU 0RWLRQ WR &HUWLI\ 1DPHG 3ODLQWLIIVSHUIRUPHGDVXEVWDQWLYHUHYLHZRIHDFK'HSRVLW$JUHHPHQWWRGHWHUPLQHZKHWKHUWKH DJUHHPHQW L VXSSOLHGWKHREOLJDWLRQVQHFHVVDU\IRU1DPHG3ODLQWLIIV¶EUHDFKRIFRQWUDFWFODLPV DQG LL ZDVVXEVWDQWLDOO\VLPLODUWRRWKHU'HSRVLW$JUHHPHQWVVXFKWKDWFODVVFHUWLILFDWLRQZRXOG EHDSSURSULDWH 7KHEUHDGWKRIWKHHYLGHQWLDU\XQGHUWDNLQJDWFODVVFHUWLILFDWLRQLVHYLGHQFHGE\WKH PRUHWKDQVL[W\H[KLELWV1DPHG3ODLQWLIIVVXEPLWWHGLQFRQQHFWLRQZLWKWKHLU0RWLRQWR&HUWLI\ 1RWVXUSULVLQJO\&LWLDJJUHVVLYHO\RSSRVHG1DPHG3ODLQWLIIV¶PRWLRQ(&)1RV ,QRSSRVLWLRQ'HIHQGDQWDUJXHGWKDW1DPHG3ODLQWLIIVFRXOGQRWXQLWHWKHFODLPVDULVLQJ IURPWKHSOXVWUDQVDFWLRQVRYHUDPRUHWKDQWHQ\HDUFODVVSHULRG&LWL¶VDUJXPHQWVLQFOXGHG D 1DPHG3ODLQWLIIVGLGQRWKDYHFODVVVWDQGLQJWRUHSUHVHQW$'5KROGHUVZKRUHFHLYHGGLIIHUHQW &DVK'LVWULEXWLRQVWKDQWKRVHWKH\UHFHLYHG E 1DPHG3ODLQWLIIVFDQQRWHVWDEOLVKDEUHDFKRIWKH 'HSRVLW $JUHHPHQWV DQG WKXV OLDELOLW\ WKURXJK FRPPRQ HYLGHQFH DV &LWL GLG QRW KDYH D FRQVLVWHQWSUDFWLFHZLWKUHVSHFWWR&RQYHUVLRQV F GDPDJHVFDQQRWEHFDOFXODWHGRQDFODVVZLGH EDVLV JLYHQWKH YDULDWLRQV IRU HDFK&RQYHUVLRQi.e. FXUUHQF\ ); SURYLGHU DQG DPRXQW RI WKH VSUHDGDQG G LQMXQFWLYHUHOLHIZDVQRWSURSHUZKHUHPRQHWDU\GDPDJHVDUHDYDLODEOH 1DPHG 3ODLQWLIIV ILOHG D UHSO\ LQ IXUWKHU VXSSRUW RI WKHLU 0RWLRQ WR &HUWLI\ RQ 6HSWHPEHULQZKLFKWKH\UHVSRQGHGWRHDFKRI'HIHQGDQW¶VDUJXPHQWV(&)1RV $VQRWHGDERYHLQFRQQHFWLRQZLWKWKHLUUHSO\1DPHG3ODLQWLIIVVXEPLWWHGDUHEXWWDOGHFODUDWLRQ IURP3URIHVVRU%URZQ 2Q0DUFKWKH&RXUWHQWHUHGD'HFLVLRQDQG2UGHUJUDQWLQJLQSDUWDQG GHQ\LQJLQSDUWWKH0RWLRQWR&HUWLI\(&)1R,QSHUWLQHQWSDUWWKH&RXUWFRQFOXGHGWKDW 1DPHG 3ODLQWLIIV GLG QRW KDYH FODVV VWDQGLQJ WR UHSUHVHQW WKH KROGHUV RI $'5V WKDW 1DPHG Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 34 of 61 3ODLQWLIIVGLGQRWWKHPVHOYHVRZQ7KH&RXUWLQGLFDWHGWKDWLWVFRQFOXVLRQZLWKUHVSHFWWRFODVV VWDQGLQJZDV³IDUFORVHUWKDQLWDSSHDUVDWILUVWEOXVK´:HLJKLQJLQIDYRURIFODVVVWDQGLQJWKH &RXUW QRWHG WKDW $'5 KROGHUV KDG ³ODUJHO\ LGHQWLFDO ULJKWV XQGHU WKHLU VHSDUDWH >'HSRVLW@ $JUHHPHQWV´DQGWKDWWKHDOOHJDWLRQVDUHWKDW³&LWLEDQNLQMXUHGHDFKRIWKHVWDNHKROGHUVLQH[DFWO\ WKHVDPHZD\´7RWKHODWWHUSRLQWWKH&RXUWDGGHG³LWLVLGHQWLFDOWRWKHSRLQWWKDWZHUH&LWLEDQN WR ORVH LQ D ODZVXLW WKDW ZDV OLPLWHG WR WKH WKUHH $'5V LQ ZKLFK WKH QDPHG SODLQWLIIV KHOG LQYHVWPHQWVWKHLQYHVWRUVLQWKHUHPDLQLQJWKLUW\RQH$'5VZRXOGOLNHO\EHHQWLWOHGWRLPPHGLDWH MXGJPHQW RQ WKHLU RZQ FODLPV XQGHU WKH GRFWULQH RI RIIHQVLYH FROODWHUDO HVWRSSHO´ :HLJKLQJ DJDLQVWFODVVVWDQGLQJKRZHYHUWKH&RXUWGHWHUPLQHGWKDWHVWDEOLVKLQJFODVVZLGHOLDELOLW\ZRXOG UHTXLUH 1DPHG 3ODLQWLIIV WR SUHVHQW HYLGHQFH FRQFHUQLQJ HYHU\ &RQYHUVLRQ DQG QRW RQO\ &RQYHUVLRQVIRU1DPHG3ODLQWLIIV¶$'5V %HFDXVHRIWKLVEXUGHQWKH&RXUWGHFLGHG1DPHG 3ODLQWLIIV¶FODLPVGLGQRWLPSOLFDWHWKH³VDPHVHWRIFRQFHUQV´DVDEVHQWFODVVPHPEHUVZKRRZQHG GLIIHUHQW$'5V 5HJDUGLQJ WKH WKUHH $'5V WKDW 1DPHG 3ODLQWLIIV KHOG GXULQJ WKH UHOHYDQW WLPH SHULRGWKH&RXUWGHWHUPLQHGWKDW1DPHG3ODLQWLIIVKDGPHWWKHDSSOLFDEOHUHTXLUHPHQWVRI)HGHUDO 5XOH D DQGWKDWFRPPRQTXHVWLRQVSUHGRPLQDWHRYHULQGLYLGXDOLQTXLULHV7KXVWKH&RXUW FHUWLILHGDFODVVXQGHU)HGHUDO5XOH E RIDOO$'5KROGHUVRIWKHWKUHH$'5VWKDW1DPHG 3ODLQWLIIVRZQHG7KH&RXUWODVWO\GHWHUPLQHGWKDWFHUWLILFDWLRQXQGHU)HGHUDO5XOH E ZDV QRWDSSURSULDWHDV1DPHG3ODLQWLIIVGLGQRWFXUUHQWO\RZQDQ\&LWLVSRQVRUHG$'5V &LWL¶V0RWLRQWR([FOXGH3URIHVVRU%URZQ¶V([SHUW2SLQLRQV 2Q1RYHPEHUZKLOH1DPHG3ODLQWLIIV¶0RWLRQWR&HUWLI\ZDVSHQGLQJ &LWLILOHGDPRWLRQWRH[FOXGHWKHH[SHUWRSLQLRQVRI3URIHVVRU%URZQ(&)1RV&LWL DUJXHGLQLWVWZHQW\ILYHSDJHVXSSRUWLQJPHPRUDQGXP DQGWKLUWHHQH[KLELWV WKDWKLVRSLQLRQV VKRXOGEHH[FOXGHGEHFDXVHDPRQJRWKHUWKLQJV L KHPLVFKDUDFWHUL]HG7DLZDQ'ROODUVDVDQ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 35 of 61 XQUHVWULFWHG DVRSSRVHGWRUHVWULFWHG FXUUHQF\ZKLFKDIIHFWVKLVRYHUDOOGDPDJHVFDOFXODWLRQ LL KHLJQRUHGFHUWDLQGDWDUHJDUGLQJ&RQYHUVLRQVLQ&LWL¶VSURGXFWLRQDQG LLL KLVPHWKRGRORJ\IRU FDOFXODWLQJGDPDJHVZKHUHGDWDZDVPLVVLQJZDVIODZHG 2Q1RYHPEHU1DPHG3ODLQWLIIVILOHGDWZHQW\ILYHSDJHRSSRVLWLRQ ZLWK HLJKWH[KLELWV WR&LWL¶VPRWLRQWRH[FOXGH(&)1RV1DPHG3ODLQWLIIVFRQWHQGHGWKDW WKHSXUSRUWHGHUURUVLQ3URIHVVRU%URZQ¶VGDPDJHVPHWKRGRORJ\VWHPPHGIURPVKRUWFRPLQJVLQ &LWL¶VGDWDSURGXFWLRQDQGPRUHRYHUWKDW&LWL¶VFULWLFLVPIRFXVHGRQWKHLQSXWVDQGDVVXPSWLRQV RI KLV PHWKRGRORJ\ UDWKHU WKDQ WKH PHWKRGRORJ\ LWVHOI ZKLFK DUH LQDSSURSULDWH JURXQGV IRU H[FOXVLRQ&LWLILOHGDUHSO\EULHILQIXUWKHUVXSSRUWRILWVPRWLRQRQ1RYHPEHU(&)1RV 2Q0DUFKLQFRQMXQFWLRQZLWKLWVGHFLVLRQRQFODVVFHUWLILFDWLRQWKH&RXUW GHQLHG &LWL¶V PRWLRQ WR H[FOXGH VWDWLQJ WKDW ³>W@KH FUX[ RI &LWLEDQN¶V DUJXPHQW LV WKDW JLYHQ GHILFLHQFLHV LQ WKH LQSXWV DQG DVVXPSWLRQV WKDW 0U %URZQ HPSOR\V KLV RSLQLRQV VKRXOG EH H[FOXGHGDQGWKH'DPDJHV&ODVVVKRXOGEHOLPLWHGWR$'5VRZQHGE\3ODLQWLIIV2IFRXUVHJLYHQ WKH&RXUW¶VDERYHUXOLQJRQFODVVFHUWLILFDWLRQWKDWDUJXPHQWLVQRZPRRW0RUHRYHUDUJXPHQWV WKDW DQ H[SHUW¶V DVVXPSWLRQV DUH XQIRXQGHG JR WR WKH ZHLJKW QRW WKH DGPLVVLELOLW\ RI WKH WHVWLPRQ\´(&)1RDW FLWDWLRQVDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG 1DPHG3ODLQWLIIV¶0RWLRQWR3UHFOXGH ,QFRQQHFWLRQZLWKLWVRSSRVLWLRQWRFODVVFHUWLILFDWLRQRQ$XJXVW&LWL VXEPLWWHG D GHFODUDWLRQ IURP D PHPEHU RI LWV $'5 GHSDUWPHQW ZKLFK DWWHPSWHG WR FRUUHFW LQIRUPDWLRQSURGXFHGLQGLVFRYHU\UHODWHGWR&RQYHUVLRQVDQGZKLFKZDVXVHGDVDIDFWXDOEDVLV WRFULWLFL]H3URIHVVRU%URZQ¶VGDPDJHVPHWKRGRORJ\(&)1R 2Q 6HSWHPEHU 1DPHG 3ODLQWLIIV ILOHG D PRWLRQ WR SUHFOXGH WKH GHFODUDWLRQDUJXLQJWKDW&LWLYLRODWHG)HGHUDO5XOH H E\IDLOLQJWRVXSSOHPHQWDQGRUFRUUHFW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 36 of 61 LWVGLVFRYHU\UHVSRQVHVGXULQJWKHIDFWGLVFRYHU\SHULRG(&)1RV,QSDUWLFXODU1DPHG 3ODLQWLIIVDUJXHGWKDW&LWLZDVQRW³VXEVWDQWLDOO\MXVWLILHG´LQLWVGHOD\LQFRUUHFWLQJWKHHUURQHRXV LQIRUPDWLRQDQGWKDWWKHGHOD\ZDVQRWKDUPOHVVDVLWZDVQRWFRUUHFWHGXQWLODIWHU3URIHVVRU%URZQ KDGVXEPLWWHGKLVH[SHUWUHSRUWRQGDPDJHV&LWLRSSRVHGWKHPRWLRQWRSUHFOXGHDVVHUWLQJWKDW WKHGHFODUDWLRQZDVWLPHO\DQGWKDWHYHQLIXQWLPHO\GLGQRWZDUUDQWSUHFOXVLRQ(&)1RV 1DPHG3ODLQWLIIVVXEPLWWHGDUHSO\EULHILQIXUWKHUVXSSRUWRQ6HSWHPEHU(&)1R 2Q 0DUFK DOVR ZLWK LWV FODVV FHUWLILFDWLRQ GHFLVLRQ WKH &RXUW GHQLHG 1DPHG 3ODLQWLIIV¶ PRWLRQ WR SUHFOXGH ILQGLQJ WKDW ³WKHUH LV QR LQGLFDWLRQ WKDW 'HIHQGDQW ZDV VDQGEDJJLQJ3ODLQWLIIVRUDFWLQJLQEDGIDLWKE\IDLOLQJWRGLVFORVHWKHVHFRUUHFWLRQVVRRQHU´ &KHVWHU&RXQW\(PSOR\HHV5HWLUHPHQW)XQGDQG6WHSKHQ+LOGUHWK¶V 0RWLRQWR,QWHUYHQH 2Q 0D\ LQ OLJKW RI WKH &RXUW¶V FODVV VWDQGLQJ GHFLVLRQ ZKLFK OLPLWHG 1DPHG3ODLQWLIIV¶DELOLW\WRUHSUHVHQWWKHLQWHUHVWVRIDEVHQW$'5KROGHUVWRRQO\WKHWKUHH$'5V WKH\RZQHG/HDG&RXQVHORQEHKDOIRI&KHVWHU&RXQW\(PSOR\HHV5HWLUHPHQW)XQGDQG6WHSKHQ +LOGUHWK i.e. WKH 3URSRVHG ,QWHUYHQRUV PRYHG WR LQWHUYHQH LQ WKH /LWLJDWLRQ ³0RWLRQ WR ,QWHUYHQH´ (&)1RV$ORQJZLWKWKHLUPRWLRQWKH3URSRVHG,QWHUYHQRUVVXEPLWWHGD 3URSRVHG,QWHUYHQRUV¶FODVVDFWLRQFRPSODLQW 7KH3URSRVHG,QWHUYHQRUVZKRKHOGHLJKWHHQ$'5VQRWRZQHGE\1DPHG3ODLQWLIIV DQGZKRFRQWLQXHGWRKROGWZRDWWKHWLPHRIWKHLUPRWLRQ DUJXHGWKDWWKH\ZHUHHQWLWOHGWR LQWHUYHQHLQWKH/LWLJDWLRQE\ULJKWXQGHU)HGHUDO5XOH D ,QSDUWLFXODU3URSRVHG,QWHUYHQRUV DUJXHG WKDW DV KROGHUV RI &LWLVSRQVRUHG $'5V WKH\ KDG D FOHDU LQWHUHVW LQ WKH VXEMHFW RI WKH /LWLJDWLRQWKDWZLOOEHDIIHFWHGE\WKHLUGLVSRVLWLRQVDQGFLWHGWKH&RXUW¶VODQJXDJHIURPWKHFODVV FHUWLILFDWLRQGHFLVLRQWKDWWKHLUFODLPVDUH³LGHQWLFDOWRWKHSRLQWWKDWZHUH&LWLEDQNWRORVHLQD ODZVXLWWKDWZDVOLPLWHGWRWKHWKUHH$'5VLQZKLFKWKHQDPHGSODLQWLIIVKHOGLQYHVWPHQWVWKH Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 37 of 61 LQYHVWRUVLQWKHUHPDLQLQJWKLUW\RQH$'5VZRXOGOLNHO\EHHQWLWOHGWRLPPHGLDWHMXGJPHQWRQ WKHLURZQFODLPVXQGHUWKHGRFWULQHRIRIIHQVLYHFROODWHUDOHVWRSSHO´ 7KH3URSRVHG,QWHUYHQRUVIXUWKHUDUJXHGWKDWWKHLULQWHUHVWVZHUHQRWDGHTXDWHO\ SURWHFWHGDVDUHVXOWRIWKH&RXUW¶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¶V FRQGXFWFRQVWLWXWHGDEUHDFKDQGRUIUDXGXOHQWFRQFHDOPHQW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 38 of 61 ,,, 6800$5<2)3/$,17,))6¶:25.$6&/$665(35(6(17$7,9(6 ,QDGGLWLRQWRWKHH[WHQVLYHGLVFRYHU\HIIRUWVGHVFULEHGDERYH1DPHG3ODLQWLIIV SHUIRUPHGDGGLWLRQDOGXWLHVWRIXOILOOWKHLUUHVSRQVLELOLWLHVDVFODVVUHSUHVHQWDWLYHVDQGWRIXUWKHU SURWHFWWKHEHVWLQWHUHVWVRIWKHFODVV1DPHG3ODLQWLIIVKDYHGHYRWHGVXEVWDQWLDOWLPHWRPHHWLQJ WKRVHUHVSRQVLELOLWLHV6RPHRIWKDWZRUNKDVEHHQDVIROORZV D 3ULRU WR DSSURYLQJ WKH ILOLQJ RI WKLV FDVH DQG LQ FRQQHFWLRQ ZLWK WKH LQYHVWLJDWLRQRIWKHFODLPVDVVHUWHGVHDUFKHGWKHLUILOHVDQGIDFLOLWDWHG/HDG&RXQVHO¶VDFFHVVWR ILQDQFLDOLQIRUPDWLRQDQGGRFXPHQWVLQWKHSRVVHVVLRQRIWKHLUILQDQFLDODGYLVRUV E 5HYLHZHGDQGDSSURYHGWKHILOLQJRIWKH&RPSODLQW F 0RQLWRUHGWKHSURVHFXWLRQRIWKLVFDVHWKURXJKRXWWKHPRUHWKDQWKUHH\HDUV WKDWLWKDVEHHQSHQGLQJLQFOXGLQJE\UHFHLYLQJSHULRGLFXSGDWHVRQLWVSURJUHVVDQGRIWKH&RXUW¶V UXOLQJV G 'XULQJ GLVFRYHU\ DQG LQ UHVSRQVH WR GRFXPHQW UHTXHVWV IURP &LWL SHUIRUPHGIXUWKHUVHDUFKHVIRUGRFXPHQWVDQGDJDLQHQVXUHG/HDG&RXQVHO¶VDFFHVVWRUHVSRQVLYH GRFXPHQWVKHOGE\ILQDQFLDODGYLVRUV H 3URYLGHGUHVSRQVHVWRZULWWHQLQWHUURJDWRULHVVHUYHGE\&LWL I 6DW IRU D GHSRVLWLRQ LQ 0D\ RI PHHWLQJ ZLWK /HDG &RXQVHO IRU QXPHURXVKRXUVEHIRUHWKHGHSRVLWLRQLQRUGHUWRSUHSDUHDQGUHYLHZLQJWKHWUDQVFULSWIRUDQ\ HUURUV J 5HYLHZHGDQGDXWKRUL]HGILOLQJVLQFRQQHFWLRQZLWKDPRQJRWKHUWKLQJV WKHPRWLRQWRGLVPLVVPRWLRQWRFHUWLI\IRULQWHUORFXWRU\DSSHDODQGPRWLRQIRUFODVVFHUWLILFDWLRQ K 6WD\HG LQ FRQWDFW ZLWK /HDG &RXQVHO GXULQJ WKH SDUWLHV¶ VHWWOHPHQW GLVFXVVLRQV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 39 of 61 /LNHZLVHWKH3URSRVHG,QWHUYHQRUVGHYRWHGWLPHDQGIXOILOOHGWKHLUUHVSRQVLELOLWLHV DVUHSUHVHQWDWLYHVIRUWKH&ODVV3URSRVHG,QWHUYHQRUV¶ZRUNLQFOXGHGUHYLHZLQJDQGDXWKRUL]LQJ WKHILOLQJRIWKH0RWLRQWR,QWHUYHQHDQG3URSRVHG,QWHUYHQRUV¶FODVVDFWLRQFRPSODLQWVHDUFKLQJ WKHLUILOHVDQGIDFLOLWDWLQJ/HDG&RXQVHO¶VDFFHVVWRUHOHYDQWILQDQFLDOLQIRUPDWLRQDQGGRFXPHQWV DQGUHPDLQLQJLQFRQWDFWZLWK/HDG&RXQVHOGXULQJVHWWOHPHQWGLVFXVVLRQV 0RUHRYHU DOO 3ODLQWLIIV SURYLGHG /HDG &RXQVHO ZLWK DXWKRULW\ WR UHVROYH WKH /LWLJDWLRQIRUWKH6HWWOHPHQW$PRXQWDQGDGGLWLRQDOLQMXQFWLYHUHOLHIDQGIXOO\VXSSRUWDQGHQGRUVH WKH6HWWOHPHQW)XUWKHU3ODLQWLIIVEHOLHYHWKDWWKHDWWRUQH\VUHSUHVHQWLQJWKH&ODVVLQWKLVPDWWHU KDYHZRUNHGGLOLJHQWO\WRVHFXUHWKH6HWWOHPHQWLQWKHEHVWLQWHUHVWVRIWKH&ODVV$GGLWLRQDOO\DOO 3ODLQWLIIVIXOO\VXSSRUWDQGHQGRUVH/HDG&RXQVHO¶VUHTXHVWIRUDQDZDUGRIDWWRUQH\V¶IHHVDQG UHLPEXUVHPHQWRI/LWLJDWLRQ([SHQVHV ,9 7+(5,6.62)&217,18('/,7,*$7,21 $W WKH WLPH WKH 3DUWLHV UHDFKHG WKHLU DJUHHPHQWLQSULQFLSOH WR UHVROYH WKLV /LWLJDWLRQ 3ODLQWLIIV DQG /HDG &RXQVHO KDG VXIILFLHQW PDWHULDO WR HYDOXDWH WKH VWUHQJWKV DQG ZHDNQHVVHVRIWKHFODLPVDOOHJHGLQWKH&RPSODLQW/HDG&RXQVHO¶VH[KDXVWLYHIDFWXDODQGOHJDO UHVHDUFKDQGDQDO\VLVFRXSOHGZLWKWKHLUUHYLHZDQGDQDO\VLVRIRYHUSDJHVRIGLVFRYHU\ SURGXFHGE\&LWLSURYLGHGWKHPZLWKDWKRURXJKXQGHUVWDQGLQJRIWKHVWUHQJWKVDQGZHDNQHVVHV RIWKHFODLPVDWLVVXHLQWKLV/LWLJDWLRQ :KDW¶VPRUH&LWL¶VOHJDODQGIDFWXDODUJXPHQWVDGYDQFHGLQVHHNLQJGLVPLVVDORI WKH&RPSODLQWLQRSSRVLQJFODVVFHUWLILFDWLRQDQGGXULQJWKHPHGLDWLRQLQIRUPHG3ODLQWLIIVDQG /HDG&RXQVHOWKDWZKLOHWKHLUFDVHDJDLQVW&LWLKDGPHULWWKHUHZHUHDOVRDQXPEHURIIDFWRUVWKDW PDGHWKHRXWFRPHRIFRQWLQXHGOLWLJDWLRQXQFHUWDLQ7KHVHIDFWRUVZHUHFRQVFLHQWLRXVO\HYDOXDWHG Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 40 of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¶VH[SHULHQFHLQWKH/LWLJDWLRQLQGLFDWHGWKDW &LWLZDVSUHSDUHGWRFKDOOHQJHFULWLFDOHOHPHQWVRI3ODLQWLIIV¶FODLPV 6RPHRIWKHPRVWVHULRXVULVNVIDFHGE\WKH&ODVVDUHGLVFXVVHGLQWKHIROORZLQJ SDUDJUDSKV 3ODLQWLIIV DQG /HDG &RXQVHO FDUHIXOO\ FRQVLGHUHG HDFK RI WKHVH KXUGOHV GXULQJ WKH SHQGHQF\ RI WKLV /LWLJDWLRQ DQG EHIRUH DQG GXULQJ WKHLU VHWWOHPHQW GLVFXVVLRQV ZLWK &LWL 8OWLPDWHO\FRQVLGHUDWLRQRIWKHULVNVDQGXQLTXHFRPSOH[LWLHVRIWKHFODLPVWKRURXJKO\YHWWHG GXULQJ WKH VHWWOHPHQW GLVFXVVLRQV LQIRUPHG 3ODLQWLIIV¶ DQG /HDG &RXQVHO¶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organ :/DW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 41 of 61 +DG'HIHQGDQWSUHYDLOHGRQWKHLVVXHRIIUDXGXOHQWFRQFHDOPHQWWKHFODVVSHULRG LQWKLV/LWLJDWLRQZRXOGKDYHEHHQGUDPDWLFDOO\UHGXFHG²IURPPRUHWKDQILIWHHQ\HDUVWRDWPRVW VL[\HDUV$QGHYHQLI3ODLQWLIIVZHUHVXFFHVVIXOLQGHIHDWLQJDQDQWLFLSDWHGPRWLRQRQWKLVLVVXH WKH\VWLOOIDFHGVXEVWDQWLDOULVNLQDFWXDOO\SURYLQJWKHDOOHJDWLRQVDWWULDO7KXVVLJQLILFDQWULVN H[LVWHG ZLWK UHVSHFW WR WKH VWDWXWH RI OLPLWDWLRQV DQG 3ODLQWLIIV¶ DELOLW\ WR SURYH IUDXGXOHQW FRQFHDOPHQW % 5LVNVRI(VWDEOLVKLQJ/LDELOLW\ 3URYLQJ OLDELOLW\ DOVR FRQVWLWXWHG D VHULRXV ULVN IRU 3ODLQWLIIV JRLQJ IRUZDUG $OWKRXJKWKLV&RXUWVXVWDLQHGWKHEUHDFKRIFRQWUDFWFODLPVLWDOVRQRWHGVHYHUDORSHQTXHVWLRQV ZLWKUHVSHFWWRWKHVHFODLPV,QSDUWLFXODUWKH&RXUWVWDWHGWKDW³LWPLJKWEHLQGXVWU\FXVWRPWRXVH DQ);UDWHVSUHDGDVDSUR[\IRUUHFRYHULQJH[SHQVHVWKDWDUHDFWXDOO\LQFXUUHGEXWFDQQRWEH SUHFLVHO\GHWHUPLQHG2IFRXUVHLWLVIDUIURPFOHDUZKHWKHUXVLQJWKHVSUHDGDVDSUR[\IRU H[SHQVHVLVSHUPLVVLEOHXQGHUWKHWHUPVRIWKLVSDUWLFXODUFRQWUDFWHYHQLIGRLQJVRFRQIRUPVWR LQGXVWU\SUDFWLFH´7KH07'2UGHUFRQWLQXHV³>L@QGHHGLWLVQRWDOWRJHWKHUSODLQZKHWKHUWKH FRQWUDFWLVVXIILFLHQWO\FOHDUVRWKDWLWFDQEHFRQVWUXHGE\WKHFRXUW´)ROORZLQJWKLVODQJXDJH&LWL LWVIDFWZLWQHVVHVDQGLWVLQGXVWU\H[SHUWDOOPDLQWDLQHGWKDWWKHVSUHDGLWUHWDLQHGZDVDQDFFHSWDEOH DQGFRPPHUFLDOO\UHDVRQDEOH PHDQVRIFRPSHQVDWLQJLWIRUFRQGXFWLQJWKH&RQYHUVLRQV,IWKH &RXUW RU MXU\ FUHGLWHG WKLV WHVWLPRQ\ LW LV SRVVLEOH WKDW 3ODLQWLIIV DQG WKH &ODVV ZRXOG KDYH UHFRYHUHGQRWKLQJ &LWLDOVRFODLPHGWKDWLWZDVLQVXODWHGIURPOLDELOLW\LQWKRVHFDVHVZKHUHDWKLUG SDUW\SHUIRUPHG&RQYHUVLRQVRQ&LWL¶VEHKDOI:KLOH3ODLQWLIIVEHOLHYHGVWURQJO\LQWKHLUDELOLW\WR HVWDEOLVKOLDELOLW\WKLVSRWHQWLDOGHIHQVHZHDNHQHG3ODLQWLIIV¶OLNHOLKRRGRIVXFFHVV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 42 of 61 & 5LVNV&RQFHUQLQJ'DPDJHV (YHQLIOLDELOLW\FRXOGEHHVWDEOLVKHG3ODLQWLIIVIDFHGULVNVLQHVWDEOLVKLQJGDPDJHV 8QOLNHDW\SLFDOVHFXULWLHVFDVHZKHUHGDPDJHVDUHVXEMHFWWRDFRPPRQO\DFFHSWHGGDPDJHV PHWKRGRORJ\ WKHUH ZDV QR WHPSODWH IRU 3URIHVVRU %URZQ WR IROORZ LQ WKLV /LWLJDWLRQ 5DWKHU 3URIHVVRU%URZQ¶VGDPDJHVPHWKRGRORJ\LGHQWLILHGDQGTXDQWLILHGVSUHDGVIRU&RQYHUVLRQVZKHUH WKHUHTXLVLWHGDWDZDVSURGXFHGE\&LWLDQG:RUOG/LQNDQGDSSUR[LPDWHGVSUHDGVIRU&RQYHUVLRQV ZKHUHWKHGDWDZDVPLVVLQJ:KLOHWKLVPHWKRGRORJ\ZDVGHVLJQHGWRDFFRXQWIRUWKHIDFWXDOUHFRUG DQGZDVJURXQGHGLQVRXQGHFRQRPLFWKHRU\ LQ3ODLQWLIIV¶YLHZ LWZDVXQLTXHWRWKLV/LWLJDWLRQ ,QIDFW&LWLKDGDOUHDG\VRXJKWWRH[FOXGH3URIHVVRU%URZQ¶VRSLQLRQVDWWKHFODVVFHUWLILFDWLRQ VWDJHZKLFKWKH&RXUWGHQLHGZLWKRXWSUHMXGLFH:KLOHWKH&RXUWSHUPLWWHG3URIHVVRU%URZQ¶V RSLQLRQLQFRQQHFWLRQZLWKFODVVFHUWLILFDWLRQLWLVOLNHO\WKDW&LWLZRXOGKDYHFKDOOHQJHG3URIHVVRU %URZQ¶VRSLQLRQVDJDLQDWDODWHUVWDJH &LWLOLNHZLVHSXWIRUWKDKLJKO\TXDOLILHGH[SHUWRILWVRZQZKRVRXJKWWRXQGHUPLQH 3URIHVVRU%URZQ¶VGDPDJHVPHWKRGRORJ\:LWKRXWDGRXEWWKHLVVXHRIGDPDJHVKHUHZRXOGOLNHO\ KDYHFRPHGRZQWRDEDWWOHRIWKHH[SHUWV3ODLQWLIIVDQG/HDG&RXQVHOUHFRJQL]HGWKDWWKH&RXUW DQGWKHMXU\ZRXOGEHSUHVHQWHGZLWKYHU\GLIIHUHQWRSLQLRQVIURPKLJKO\TXDOLILHGH[SHUWV,IWKH &RXUWRUWKHMXU\IRXQG&LWL¶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ase 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 43 of 61 9 6(77/(0(17',6&866,2160(',$7,211(*27,$7,212) 6(77/(0(17'2&80(176$1'6&+('8/,1*2)),1$/$33529$/ +($5,1* :KLOHDZDLWLQJWKH&RXUW¶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¶ DJUHHPHQW WR VHWWOH WKH /LWLJDWLRQ DV ZHOO DV 3ODLQWLIIV¶ DQWLFLSDWHG PRWLRQ IRU SUHOLPLQDU\DSSURYDORIWKH6HWWOHPHQW7KLVZRUNLQFOXGHGWKHUHYLHZRIGHWDLOHGELGVSUHYLRXVO\ REWDLQHGIURPVHYHUDORUJDQL]DWLRQVVSHFLDOL]LQJLQFODVVDFWLRQQRWLFHDQGFODLPVDGPLQLVWUDWLRQ LQFRQQHFWLRQZLWKWKHVHWWOHPHQWUHDFKHGLQWKHDQDORJRXVJPMorganFDVHDQGFRQGXFWLQJIROORZ XS FRPPXQLFDWLRQV ZLWK FHUWDLQ RI WKHVH RUJDQL]DWLRQV $V D UHVXOW RI WKLV SURFHVV 3ODLQWLIIV EHOLHYHGLWZRXOGEHEHQHILFLDOWRUHWDLQWKHVDPHDGPLQLVWUDWRUKDQGOLQJWKHDGPLQLVWUDWLRQLQ JPMorganDQGVHOHFWHG.&&WRVHUYHDVWKH&ODLPV$GPLQLVWUDWRUIRUWKH6HWWOHPHQW'XULQJ ,QOLJKWRIGHYHORSPHQWVGXULQJWKHLQLWLDODGPLQLVWUDWLRQRIWKH6HWWOHPHQWUHVXOWLQJIURP WKHXQLTXHDVSHFWVRIWKH&ODVVDQG&ODVV3HULRGKHUH3ODLQWLIIVVXEVHTXHQWO\UHWDLQHGDQGZRUNHG Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 44 of 61 WKLV WLPH /HDG &RXQVHO DOVR ZRUNHG FORVHO\ ZLWK 3ODLQWLIIV¶ GDPDJHV H[SHUW WR FDOFXODWH WKH ³$YHUDJH0DUJLQ3HU See6HFWLRQ9,infra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² VSHFLILFDOO\ WKH SRWHQWLDO YROXPH DQG LQDFFXUDF\ RI LQIRUPDWLRQ EHLQJ UHFHLYHG IURP EDQNV EURNHUVDQGRWKHUQRPLQHHV ³1RPLQHHV´ IRUSRWHQWLDO&ODVV0HPEHUV(&)1R7KH&RXUW FORVHO\ZLWKDQRWLFHH[SHUW-HDQQH&)LQHJDQRI+)0HGLDWRGHYHORSDPRUHFRPSUHKHQVLYH PXOWLPHGLDQRWLFHSURJUDPWRVSHFLILFDOO\WDUJHWWKH&ODVVLQWKLV/LWLJDWLRQSee6HFWLRQ9,,infra Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 45 of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¶PRWLRQDQG HQWHUHGWKH1RWLFH0RGLILFDWLRQ2UGHUUHVFKHGXOLQJWKH)LQDO$SSURYDO+HDULQJIRU-XO\ DWDP(&)1R 9, 7+(3/$12)$//2&$7,21,6)$,5$1'$'(48$7( 7KHSURSRVHGSODQIRUDOORFDWLQJWKH1HW6HWWOHPHQW)XQGWR$XWKRUL]HG5HFLSLHQWV LQWKLVPDWWHU WKH³3ODQRI$OORFDWLRQ´RU³3ODQ´ LVDWWDFKHGDV([KLELWWRWKH1RWLFH7KH3ODQ ZDVSUHSDUHGLQFRQVXOWDWLRQZLWK3ODLQWLIIV¶GDPDJHVH[SHUWDQGLVEDVHGRQ3ODLQWLIIV¶YLHZRI WKHDYHUDJHPDUJLQSHU$'5IRUHDFK\HDURIWKH&ODVV3HULRGWKDW&LWLUHWDLQHGRQ&RQYHUVLRQV DVGHWHUPLQHGE\3ODLQWLIIV¶GDPDJHVH[SHUW,QFDOFXODWLQJWKHDYHUDJHPDUJLQSHU\HDUIRUHDFK RIWKHWZHQW\RQHHOLJLEOH$'5V DVLGHQWLILHGLQWKH$SSHQGL[WRWKH1RWLFH 3ODLQWLIIV¶GDPDJHV H[SHUWXWLOL]HGGDWDSURGXFHGE\&LWLFRQFHUQLQJWKH&RQYHUVLRQUDWHVYROXPHVDQGSD\DEOHGDWHV IRUWKHGLYLGHQGVDQGFDVKGLVWULEXWLRQVIRUWKH$'5VDVZHOOWKHDPRXQW LIDQ\ &LWLUHWDLQHGIRU FHUWDLQRIWKHHOLJLEOH$'5VGXULQJWKHUHOHYDQWWLPHSHULRG7DEOHRIWKH3ODQVHWVIRUWKWKH ³$YHUDJH0DUJLQ3HU Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 46 of 61 7KHREMHFWLYHRIWKH3ODQLVWRHTXLWDEO\GLVWULEXWHWKH1HW6HWWOHPHQW)XQGDPRQJ DVPDQ\&ODVV0HPEHUVDVSRVVLEOH,QFRQQHFWLRQZLWKWKH6HWWOHPHQW3ODLQWLIIVREWDLQHGFRQWDFW KROGLQJDQGGLVWULEXWLRQLQIRUPDWLRQIRUFHUWDLQ'DPDJHV&ODVV0HPEHUVIURP&LWL¶VWUDQVIHU DJHQW&RPSXWHUVKDUH7KRVH'DPDJHV&ODVV0HPEHUV i.e.³5HJLVWHUHG+ROGHU'DPDJHV&ODVV 0HPEHUV´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³5HFRJQL]HG/RVV $PRXQW3HU$'53HU &ODVV 0HPEHU GXULQJ WKH UHOHYDQW WLPH SHULRG i.e. -DQXDU\ WR 6HSWHPEHU LQFOXVLYH DQG IRU ZKLFK WKH\ UHFHLYHG D &DVK 'LVWULEXWLRQ 7KLV FDOFXODWLRQ ZLOO EH GRQH E\ PXOWLSO\LQJ WKH JURVV DPRXQW RI WKH &DVK 'LVWULEXWLRQ UHFHLYHG IRU WKH HOLJLEOH $'5 E\ WKH $YHUDJH0DUJLQ3HU 'DPDJHV&ODVV0HPEHU¶V5HFRJQL]HG/RVV$PRXQWV3HU$'53HU &ODLP´DQGWKH1HW6HWWOHPHQW)XQGZLOOEHGLVWULEXWHGWR$XWKRUL]HG5HFLSLHQWVRQDpro rata 5HJLVWHUHG+ROGHU'DPDJHV&ODVV0HPEHUVZHUHPDLOHG3RVWFDUG1RWLFHVE\.&&7KH 3RVWFDUGVDGYLVHGUHFLSLHQWVWKDW.&&ZRXOGXVHWKHLQIRUPDWLRQSURYLGHGE\WKH'HSRVLWDU\¶V WUDQVIHUDJHQWWRFDOFXODWHWKHLUFODLPSXUVXDQWWRWKH3ODQXQOHVVWKHLQIRUPDWLRQZDVRWKHUZLVH VXSSOHPHQWHG E\ WKH 5HJLVWHUHG +ROGHU 'DPDJHV &ODVV 0HPEHU $FFRUGLQJO\ WKH 3RVWFDUGV IXUWKHUDGYLVHGUHFLSLHQWVWKDWWKH\VKRXOGUHYLHZWKHLQIRUPDWLRQSURYLGHGE\WKH'HSRVLWDU\¶V WUDQVIHUDJHQWDVDFFHVVLEOHYLDWKH6HWWOHPHQWZHEVLWHWRFRQILUPWKHDFFXUDF\DQGFRPSOHWHQHVV RIWKHLQIRUPDWLRQ Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 47 of 61 EDVLVEDVHGRQWKHVL]HRIWKHLU5HFRJQL]HG&ODLPLQFRPSDULVRQWRWKHWRWDO5HFRJQL]HG&ODLPV See generally+XJKHV'HFO([% $SSHQGL[ 2QFH.&&KDVSURFHVVHGDOOFODLPVIRUWKLVPDWWHUDQGSURYLGHG1RQ5HJLVWHUHG +ROGHU'DPDJHV&ODVV0HPEHUVZLWKDQRSSRUWXQLW\WRFXUHDQ\GHILFLHQFLHVLQWKHLUFODLPVRU FKDOOHQJHWKHUHMHFWLRQRIWKHLUFODLPV/HDG&RXQVHOZLOOILOHDPRWLRQIRUDSSURYDORI.&&¶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ase 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 48 of 61 9,, /($'&2816(/¶6&203/,$1&(:,7+7+(&2857¶635(/,0,1$5< $33529$/25'(5$1'127,&(02',),&$7,2125'(5$1'7+( &/$66¶65($&7,2172'$7( 3XUVXDQWWRWKH3UHOLPLQDU\$SSURYDO2UGHUWKH&RXUWDXWKRUL]HG/HDG&RXQVHOWR UHWDLQ.&&DVWKH&ODLPV$GPLQLVWUDWRUWRVXSHUYLVHDQGDGPLQLVWHUWKHQRWLFHSURFHGXUHIRUWKH 6HWWOHPHQWDVZHOODVWKHSURFHVVLQJRI&ODLPV(&)1R.&&XQGHU/HDG&RXQVHO¶V VXSHUYLVLRQLQLWLDWHGWKHQRWLFHSODQVHWIRUWKLQWKH3UHOLPLQDU\$SSURYDO2UGHUE\DPRQJRWKHU WKLQJV L FDXVLQJFRSLHVRIWKH1RWLFHDQG&ODLP)RUP WRJHWKHU³1RWLFH3DFNHW´ WREHPDLOHG WR WKH PDLOLQJ UHFRUGV FRQWDLQHG LQ .&&¶V SURSULHWDU\ GDWDEDVH RI WKH ODUJHVW DQG PRVW FRPPRQ 1RPLQHHV ³1RPLQHH 'DWDEDVH´ ZKLFK GLUHFWHG 1RPLQHHV WR UHVSRQG ZLWKLQ WKLUW\ FDOHQGDUGD\VRIUHFHLSWRIWKH1RWLFHE\HLWKHUUHTXHVWLQJIURP.&&VXIILFLHQWFRSLHVRIWKH1RWLFH 3DFNHW WR IRUZDUG WR EHQHILFLDO RZQHUV RU E\ SURYLGLQJ D OLVW RI WKH QDPHV DQG DGGUHVVHV RI EHQHILFLDORZQHUVWR.&& LL SXEOLVKLQJWKH6XPPDU\1RWLFHLQWKH Wall Street Journal DQG WUDQVPLWWLQJ WKH VDPH RYHU WKH PR Newswire DQG LLL GHYHORSLQJ D ZHEVLWH GHGLFDWHG WR WKH 6HWWOHPHQWIURPZKLFKFRSLHVRIWKH1RWLFHDQG&ODLP)RUPFDQEHGRZQORDGHG$GGLWLRQDOO\ LQDFFRUGDQFHZLWKWKH6WLSXODWLRQDQG3UHOLPLQDU\$SSURYDO2UGHU.&&UHFHLYHGIURP&LWL¶V WUDQVIHU DJHQW &RPSXWHUVKDUH WKH QDPHV DGGUHVVHV DQG FDVK GLVWULEXWLRQ LQIRUPDWLRQ IRU 5HJLVWHUHG+ROGHU'DPDJHV&ODVV0HPEHUV i.e.&ODVV0HPEHUVZKRKROG RUKHOG WKHLUHOLJLEOH $'5VGLUHFWO\DQGDUHOLVWHGRQWKHUHFRUGVRI&LWL¶VWUDQVIHUDJHQW ,QLWLDO+XJKHV'HFO .&&¶VSURFHVVLQJRIVXFKGDWDUHVXOWHGLQWKHLGHQWLILFDWLRQRIWKHQDPHVDGGUHVVHVDQGFDVK $VLQPRVWFODVVDFWLRQVRIWKLVQDWXUHDODUJHPDMRULW\RIWKHSRWHQWLDO&ODVV0HPEHUVDUH EHQHILFLDOSXUFKDVHUVZKRVHVHFXULWLHVDUHKHOGLQ³VWUHHWQDPH´±i.e.WKHVHFXULWLHVDUHSXUFKDVHG E\1RPLQHHVLQWKHQDPHRIWKH1RPLQHHRQEHKDOIRIWKHEHQHILFLDOSXUFKDVHUV See 'HFODUDWLRQ RI -XVWLQ 5 +XJKHV 5HJDUGLQJ 5HJLVWHUHG +ROGHU 'DWD DQG 1RPLQHH 2XWUHDFKDQG5HVSRQVHILOHGZLWKWKH&RXUWRQ-DQXDU\ ³,QLWLDO+XJKHV'HFODUDWLRQ´RU ³,QLWLDO+XJKHV'HFO´ DW(&)1R Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 49 of 61 GLVWULEXWLRQLQIRUPDWLRQIRUDSSUR[LPDWHO\5HJLVWHUHG+ROGHU'DPDJHV&ODVV0HPEHUV Id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¶ 1RWLFH 0RGLILFDWLRQ 0RWLRQ VRXJKW WKH &RXUW¶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¶1RWLFH0RGLILFDWLRQ0RWLRQZLWKLWVHQWU\ RIWKH1RWLFH0RGLILFDWLRQ2UGHURQ)HEUXDU\(&)1R%\LWV2UGHUWKH&RXUW DSSURYHG3ODLQWLIIV¶UHWHQWLRQRI+)0HGLDWRVXSHUYLVHDQGDGPLQLVWHUWKHPXOWLPHGLDSURJUDP LQFRQQHFWLRQZLWKWKH6HWWOHPHQWId Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 50 of 61 6KRUWO\DIWHUWKHHQWU\RIWKH1RWLFH0RGLILFDWLRQ2UGHU+)0HGLDZRUNLQJXQGHU WKHVXSHUYLVLRQRI/HDG&RXQVHOFRPPHQFHGWKH&RXUWDSSURYHGPXOWLPHGLDQRWLFHFDPSDLJQ ³0XOWL0HGLD1RWLFH3URJUDP´ ²DVGHWDLOHGLQWKH)LQHJDQ'HFODUDWLRQDWWDFKHGDV([KLELW KHUHWR²ZLWKWKHUHOHDVHRIWKH6XPPDU\1RWLFHRYHUPR NewswireRQ)HEUXDU\See )LQHJDQ'HFO7KH6XPPDU\1RWLFHFRQWDLQVDJHQHUDOGHVFULSWLRQRIWKH/LWLJDWLRQDQG 6HWWOHPHQWWKHLPSRUWDQWGDWHVDQGGHDGOLQHVDQGLQIRUPDWLRQRQKRZWRREWDLQWKHPRUHGHWDLOHG ORQJIRUP1RWLFH GHVFULEHGEHORZ 2YHUWKHFRXUVHRIHLJKW\WZRGD\V+)0HGLDIDFLOLWDWHGWKH SXEOLFDWLRQ RI WKH 6XPPDU\ 1RWLFH LQ VHYHQ PDJD]LQHV WKUHH QHZVSDSHUV RQ WZR VHSDUDWH RFFDVLRQV DQGLQYHVWPHQWHQHZVOHWWHUVId+)0HGLDDOVRIDFLOLWDWHGWKHVHUYLFH RIEDQQHUDGVWKURXJKDYDULHW\RIEXVLQHVVQHZVDQGLQYHVWPHQWZHEVLWHVDVZHOODVDFURVVVRFLDO PHGLDSODWIRUPVVXFKDV)DFHERRN,QVWDJUDP DQG/LQNHG,Q²UHVXOWLQJ LQ D WRWDO RI RYHU PLOOLRQYDOLGDWHGRQOLQHLPSUHVVLRQVEHLQJVHUYHGWRSRWHQWLDO&ODVV0HPEHUVId,Q DGGLWLRQXWLOL]LQJWKHGDWDSURYLGHGWR.&&E\1RPLQHHV seeDERYH +)0HGLDVHUYHG WDUJHWHG,QWHUQHWDGYHUWLVHPHQWVWR,3DGGUHVVHVWKDWZHUHVXFFHVVIXOO\PDWFKHGWRWKHSK\VLFDO PDLOLQJDGGUHVVHVRISRWHQWLDO&ODVV0HPEHUVId7KURXJKWKLVZLGHUDQJLQJ0XOWL 0HGLD1RWLFH3URJUDP+)0HGLDHVWLPDWHVWKDWHDFK&ODVV0HPEHUKDGWKHRSSRUWXQLW\WRVHH WKHYDULRXVSXEOLFDWLRQVDQGDGV10.7 timesRQDYHUDJHSee)LQHJDQ'HFO $GGLWLRQDOO\ RQ 0DUFK WKH &ODLPV $GPLQLVWUDWRU .&& XQGHU WKH VXSHUYLVLRQRI/HDG&RXQVHOPDLOHGE\ILUVWFODVVPDLOWKH&RXUWDSSURYHG3RVWFDUG1RWLFHWRD WRWDORI5HJLVWHUHG+ROGHU'DPDJHV&ODVV0HPEHUVZKRVHFRQWDFWKROGLQJDQGFDVK GLVWULEXWLRQLQIRUPDWLRQZDVSURYLGHGWR.&&E\&RPSXWHUVKDUHSee+XJKHV'HFO$ORQJ ZLWKDGYLVLQJUHFLSLHQWVRIWKH6HWWOHPHQWWKHLUULJKWVLQFRQQHFWLRQZLWKLWWKHLPSRUWDQWGDWHV DQG GHDGOLQHV DQG LQIRUPDWLRQ RQ KRZ WR REWDLQ IXUWKHU LQIRUPDWLRQ HDFK 3RVWFDUG 1RWLFH Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 51 of 61 FRQWDLQHGDXQLTXHFODLPQXPEHUDQG3,1WRDOORZUHFLSLHQWVWRDFFHVVDQGUHYLHZWKHLUKROGLQJ DQG&DVK'LVWULEXWLRQLQIRUPDWLRQSURYLGHGE\&RPSXWHUVKDUHWKURXJKD³FODLPSRUWDO´DYDLODEOH RQWKH6HWWOHPHQWZHEVLWH+XJKHV'HFO ,QFRQMXQFWLRQZLWKWKHVWDUWRIWKH0XOWL0HGLD1RWLFH3URJUDP.&&XSGDWHGWKH ZHEVLWH GHGLFDWHG WR WKH 6HWWOHPHQW ZZZ&LWLEDQN$'56HWWOHPHQWFRP WKH ³6HWWOHPHQW :HEVLWH´ LQ RUGHU WR SURYLGH &ODVV 0HPEHUV DQG RWKHU LQWHUHVWHG SDUWLHV ZLWK LQIRUPDWLRQ FRQFHUQLQJWKH6HWWOHPHQWDQGWKHLPSRUWDQWGDWHVDQGGHDGOLQHVLQFRQQHFWLRQWKHUHZLWKDVZHOO DVGRZQORDGDEOHFRSLHVRIWKHORQJIRUP1RWLFH&ODLP)RUP6WLSXODWLRQ3UHOLPLQDU\$SSURYDO 2UGHU1RWLFH0RGLILFDWLRQ2UGHUDQGRSHUDWLYHFRPSODLQWIdDW.&&DOVRXSGDWHGWKH ,QWHUDFWLYH9RLFH5HVSRQVH ³,95´ VFULSWIRUWKHWROOIUHHWHOHSKRQHKRWOLQHIdDW 7KH ORQJIRUP 1RWLFH²UHIHUHQFHG LQ WKH 6XPPDU\ DQG 3RVWFDUG 1RWLFHV DQG DYDLODEOH WR UHYLHZ DQG GRZQORDG RQ WKH 6HWWOHPHQW :HEVLWH²FRQWDLQV GHWDLOHG LQIRUPDWLRQ FRQFHUQLQJWKH/LWLJDWLRQDQGWKH6HWWOHPHQWLQFOXGLQJWKHGHILQLWLRQRIWKH&ODVVDGHVFULSWLRQ RIWKHSURSRVHG6HWWOHPHQWLQIRUPDWLRQUHJDUGLQJWKHFODLPVDVVHUWHGLQWKH/LWLJDWLRQDQGWKH SURSRVHG 3ODQ RI $OORFDWLRQ 7KH 1RWLFH DOVR SURYLGHV LQIRUPDWLRQ IRU &ODVV 0HPEHUV WR GHWHUPLQHZKHWKHUWR L VXEPLWD&ODLP)RUPWRSDUWLFLSDWHLQWKH6HWWOHPHQWLIWKH\DUHD1RQ 5HJLVWHUHG+ROGHU'DPDJHV&ODVV0HPEHU LL UHTXHVWH[FOXVLRQIURPWKH&ODVVRU LLL REMHFWWR DQ\DVSHFWRIWKH6HWWOHPHQWWKH3ODQRI$OORFDWLRQRUWKH)HHDQG([SHQVH$SSOLFDWLRQ7KH 1RWLFHDOVRLQIRUPVUHFLSLHQWVRI/HDG&RXQVHO¶VLQWHQWWRDSSO\IRUDQDZDUGRIDWWRUQH\V¶IHHVLQ DQDPRXQWQRWWRH[FHHGѿRIWKH6HWWOHPHQW)XQGDQGUHLPEXUVHPHQWRI/LWLJDWLRQ([SHQVHV LQDQDPRXQWQRWWRH[FHHGZKLFKDPRXQWPD\LQFOXGHUHTXHVWVWR3ODLQWLIIVIRU6HUYLFH ,QWKHHYHQWWKHLQIRUPDWLRQRQWKHFODLPSRUWDOLVLQDFFXUDWHRULQFRPSOHWHWKH5HJLVWHUHG +ROGHU'DPDJHV&ODVV0HPEHUFDQVXSSOHPHQWWKLVLQIRUPDWLRQWKURXJKWKH6HWWOHPHQWZHEVLWH RUE\FRQWDFWLQJ.&& Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 52 of 61 $ZDUGVXSWRDQDJJUHJDWHDPRXQWRISee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n Re: BNYM ADR FX Litig. 1R &9-32-/& 6'1< DQG Merryman et al. v. JPMorgan Chase Bank, N.A.1RFY9(& 6'1< $VQRWHGDERYHDQGDVVHWIRUWKLQWKH1RWLFH6XPPDU\1RWLFH3RVWFDUG1RWLFH DQGRQWKH6HWWOHPHQW:HEVLWHWKHGHDGOLQHIRU&ODVV0HPEHUVWRUHTXHVWH[FOXVLRQIURPWKH&ODVV RU WR VXEPLW REMHFWLRQV WR WKH 6HWWOHPHQW WKH 3ODQ RI $OORFDWLRQ RU WKH )HH DQG ([SHQVH $SSOLFDWLRQLV-XQH7RGDWHRQO\WZHQW\ILYHUHTXHVWVIRUH[FOXVLRQKDYHEHHQUHFHLYHG see+XJKHV'HFO DQGWKHUHKDYHEHHQQRREMHFWLRQVRIDQ\NLQG6KRXOGDQ\DGGLWLRQDO UHTXHVWVIRUH[FOXVLRQRUREMHFWLRQVEHUHFHLYHGDIWHUWKHGDWHRIWKLVVXEPLVVLRQ/HDG&RXQVHO ZLOODGGUHVVWKHPLQWKHLUUHSO\SDSHUVWREHILOHGRQRUEHIRUH-XO\ 9,,, /($'&2816(/¶6)(($1'(;3(16($33/,&$7,21 ,QDGGLWLRQWRVHHNLQJILQDODSSURYDORIWKH6HWWOHPHQWDQG3ODQRI$OORFDWLRQ/HDG &RXQVHODUHPDNLQJDQDSSOLFDWLRQWRWKH&RXUWIRUDQDZDUGRIDWWRUQH\V¶IHHVDQGUHLPEXUVHPHQW RIH[SHQVHVLQFXUUHGGXULQJWKHFRXUVHRIWKH/LWLJDWLRQ6SHFLILFDOO\/HDG&RXQVHORQEHKDOIRI 3ODLQWLIIV¶&RXQVHODUHDSSO\LQJIRUDWWRUQH\V¶IHHVLQWKHDPRXQWRIѿRIWKH6HWWOHPHQW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 53 of 61 )XQGDQGIRUH[SHQVHVLQWKHDPRXQWRI/HDG&RXQVHODUHDOVRVHHNLQJ6HUYLFH $ZDUGVLQWKHDJJUHJDWHDPRXQWRIIRU3ODLQWLIIVLQUHFRJQLWLRQRIWKHZRUNWKH\KDYH SHUIRUPHGLQWKH/LWLJDWLRQIRUWKHEHQHILWRIWKH&ODVV $V GLVFXVVHG DERYH WKH 1RWLFH LQIRUPV UHFLSLHQWV WKDW /HDG &RXQVHO ZRXOG EH DSSO\LQJIRUDQDZDUGRIDWWRUQH\V¶IHHVLQDQDPRXQWQRWWRH[FHHGѿRIWKH6HWWOHPHQW)XQG DQGUHLPEXUVHPHQWRI/LWLJDWLRQ([SHQVHVLQFRQQHFWLRQZLWKWKHSURVHFXWLRQDQGUHVROXWLRQRI WKH/LWLJDWLRQLQDQDPRXQWQRWWRH[FHHGSOXVLQWHUHVWHDUQHGRQWKHVHDPRXQWV7KH 1RWLFHDOVRDGYLVHVUHFLSLHQWVWKDW/HDG&RXQVHO¶VUHTXHVWIRU/LWLJDWLRQ([SHQVHVPD\LQFOXGHD UHTXHVWIRU6HUYLFH$ZDUGVWR3ODLQWLIIVXSWRDQDJJUHJDWHDPRXQWRI/HDG&RXQVHO¶V )HHDQG([SHQVH$SSOLFDWLRQLVFRQVLVWHQWZLWKWKHDPRXQWVVHWIRUWKLQWKH1RWLFHDQGWRGDWH WKHUHKDYHEHHQQRREMHFWLRQVWRWKHPD[LPXPDPRXQWRIDWWRUQH\V¶IHHVDQGH[SHQVHVVHWIRUWKLQ WKH1RWLFH0RUHRYHUWKH)HHDQG([SHQVH$SSOLFDWLRQLVIXOO\VXSSRUWHGE\3ODLQWLIIV %HORZ LV D VXPPDU\ RI WKH SULPDU\ IDFWXDO EDVHV IRU /HDG &RXQVHO¶V )HH DQG ([SHQVH $SSOLFDWLRQ $ IXOO DQDO\VLV RI WKH IDFWRUV FRQVLGHUHG E\ FRXUWV LQ WKLV &LUFXLW ZKHQ /HDG&RXQVHOSURSRVHWKDWWKHIHHDZDUGEHDOORFDWHGLQWKHIROORZLQJPDQQHU L WR .HVVOHU7RSD]DQG LL DWRWDORIWRDGGLWLRQDO3ODLQWLIIV¶&RXQVHO*&KDGG0DVRQ(VTRI 3UHYRVW6KDII0DVRQ &DUQV3//& IRUPHUO\RI0DVRQ/DZ)LUP3/& DQG$P\&0DUWLQ (VTRI$P\&0DUWLQ3$ IRUPHUO\RI(YHUHWW:DOHVDQG&RPVWRFN ZKLFKVHUYHGDVORFDO FRXQVHOZKHQWKHFDVHZDVRULJLQDOO\ILOHGLQWKH:HVWHUQ'LVWULFWRI$UNDQVDVDQGFRQWLQXHWR VHUYHDVOLDLVRQFRXQVHOIRU1DPHG3ODLQWLIIV²i.e.WR$P\&0DUWLQ(VTRI$P\&0DUWLQ 3$DQGWR*&KDGG0DVRQ(VTRI3UHYRVW6KDII0DVRQ &DUQV3//& 7KH ORGHVWDU DQG H[SHQVH VXEPLVVLRQ RI 6KDUDQ 1LUPXO WKH ³/RGHVWDU([SHQVH 'HFODUDWLRQ´ RU ³/RGHVWDU([SHQVH 'HFO´ RQ EHKDOI RI .HVVOHU 7RSD] LV DWWDFKHG KHUHWR DV ([KLELW7KLVGHFODUDWLRQVHWVIRUWKWKHQDPHVRIWKHDWWRUQH\VDQGSURIHVVLRQDOVXSSRUWVWDIIZKR ZRUNHGRQWKH/LWLJDWLRQDQGWKHLUFXUUHQWKRXUO\UDWHVWKHORGHVWDUYDOXHRIWKHWLPHH[SHQGHGE\ VXFKDWWRUQH\VDQGSURIHVVLRQDOVXSSRUWVWDIIWKHH[SHQVHVLQFXUUHGE\/HDG&RXQVHODQGWKH EDFNJURXQGDQGH[SHULHQFHRI.HVVOHU7RSD] Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 54 of 61 HYDOXDWLQJUHTXHVWVIRUDWWRUQH\V¶IHHVDQGH[SHQVHVIURPDFRPPRQIXQGDVZHOODVWKHVXSSRUWLQJ OHJDODXWKRULW\LVSUHVHQWHGLQWKHDFFRPSDQ\LQJ)HH0HPRUDQGXP $ /HDG&RXQVHO¶V)HH5HTXHVW,V)DLUDQG5HDVRQDEOHDQG:DUUDQWV$SSURYDO 7KH 5LVNV RI /LWLJDWLRQ DQG WKH 1HHG WR (QVXUH WKH $YDLODELOLW\RI &RPSHWHQW&RXQVHOLQ+LJK5LVN&RQWLQJHQW/LWLJDWLRQ 7KH XQLTXH DQG VLJQLILFDQW ULVNV IDFHG E\ /HDG &RXQVHO LQ SURVHFXWLQJ WKLV /LWLJDWLRQDUHKLJKO\UHOHYDQWWRWKH&RXUW¶VFRQVLGHUDWLRQRIDQDZDUGRIDWWRUQH\V¶IHHVDVZHOO DVLWVDSSURYDORIWKH6HWWOHPHQW+HUH'HIHQGDQWDGDPDQWO\GHQLHGDQ\ZURQJGRLQJDQGLIWKH /LWLJDWLRQKDGFRQWLQXHGZRXOGKDYHDJJUHVVLYHO\OLWLJDWHGLWVGHIHQVHVWKURXJKWULDO$VGHWDLOHG LQ6HFWLRQ,9DERYH/HDG&RXQVHODQG3ODLQWLIIVIDFHGVLJQLILFDQWULVNVWRSURYLQJ'HIHQGDQW¶V OLDELOLW\DQGWKHIXOODPRXQWRIWKH&ODVV¶VGDPDJHVLIWKH/LWLJDWLRQFRQWLQXHG1RWDEO\ZKHQWKH 6HWWOHPHQWZDVUHDFKHGWKH3URSRVHG,QWHUYHQHUV¶0RWLRQWR,QWHUYHQHZDVsub judiceDQGWKH RXWFRPHRIWKLVPRWLRQFDUULHGVLJQLILFDQWULVNIRUERWKVLGHV,QWKHIDFHRIVXFKXQFHUWDLQW\/HDG &RXQVHOZDVDEOHWRREWDLQDIDYRUDEOHUHFRYHU\²EHWZHHQURXJKO\DQGRIWKH'DPDJHV &ODVV¶VSRWHQWLDOGDPDJHV i.e.UDQJLQJIURPDSSUR[LPDWHO\PLOOLRQWRPLOOLRQ EDVHG RQWKHDQDO\VLVRI3ODLQWLIIV¶GDPDJHVH[SHUW/HDG&RXQVHOZDVDOVRDEOHWRVXFFHVVIXOO\QHJRWLDWH IRUDGGLWLRQDOLQMXQFWLYHUHOLHIIRUWKH&ODVVSURYLGLQJDOLPLWRQWKH'HSRVLWDU\¶VFKDUJHVIRU FRQGXFWLQJ&RQYHUVLRQV 7KHVH FDVHVSHFLILF OLWLJDWLRQ ULVNV DUH LQ DGGLWLRQ WR WKH FRQWLQJHQWIHH ULVN XQGHUWDNHQLQWKH/LWLJDWLRQ)URPWKHRXWVHW3ODLQWLIIV¶&RXQVHOXQGHUVWRRGWKDWWKLVZRXOGEHD &RXUWVLQWKLV&LUFXLWFRQVLGHUWKHIROORZLQJIDFWRUVZKHQGHWHUPLQLQJZKHWKHUDIHHIURPD FRPPRQ IXQG LV IDLU DQG UHDVRQDEOH ³ WKH WLPH DQG ODERU H[SHQGHG E\ FRXQVHO WKH PDJQLWXGHDQGFRPSOH[LWLHVRIWKHOLWLJDWLRQ WKHULVNRIWKHOLWLJDWLRQ WKHTXDOLW\RI UHSUHVHQWDWLRQ WKH UHTXHVWHG IHH LQ UHODWLRQ WR WKH VHWWOHPHQW DQG SXEOLF SROLF\ FRQVLGHUDWLRQV´SeeGoldberger v. Integrated Res., Inc.)G G&LU See also )HH0HPRUDQGXP,,' Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 55 of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¶&RXQVHOKDYHUHFHLYHGQRFRPSHQVDWLRQIRUWKHLUHIIRUWVLQWKLVPDWWHU,QGHHG/HDG &RXQVHOKDVGHGLFDWHGRYHUKRXUVLQSURVHFXWLQJWKLV/LWLJDWLRQIRUWKHEHQHILWRIWKH&ODVV RYHUWKHSDVWWKUHH\HDUV ,WWDNHVKDUGZRUNDQGGLOLJHQFHE\VNLOOHGFRXQVHOWRGHYHORSWKHIDFWVDQGWKHRULHV WKDWDUHQHHGHGWRVXVWDLQDFRPSODLQWRUZLQDWWULDORUWRSHUVXDGHVRSKLVWLFDWHGGHIHQGDQWVWR HQJDJHLQVHULRXVVHWWOHPHQWQHJRWLDWLRQVDWPHDQLQJIXOOHYHOV0RUHRYHUDODZILUP¶VVXFFHVVLQ FRQWLQJHQWOLWLJDWLRQVXFKDVWKLVLVQHYHUJXDUDQWHHG/HDG&RXQVHOLVZHOODZDUHRIPDQ\KDUG IRXJKWODZVXLWVLQZKLFKEHFDXVHRIWKHGLVFRYHU\RIIDFWVXQNQRZQZKHQWKHFDVHFRPPHQFHG RUFKDQJHVLQWKHODZGXULQJWKHSHQGHQF\RIWKHFDVHRUDGHFLVLRQRIDMXGJHRUMXU\IROORZLQJD WULDORQWKHPHULWVH[FHOOHQWSURIHVVLRQDOHIIRUWVE\SODLQWLIIV¶FRXQVHOSURGXFHGQRIHHIRUFRXQVHO +HUH3ODLQWLIIV¶&RXQVHO¶VHIIRUWVLQWKHIDFHRIVXEVWDQWLDOULVNVDQGXQFHUWDLQWLHV KDYHUHVXOWHGLQZKDW/HDG&RXQVHOEHOLHYHVWREHDVLJQLILFDQWDQGJXDUDQWHHGUHFRYHU\IRUWKH EHQHILWRIWKH&ODVV,QWKHVHFLUFXPVWDQFHVDQGLQFRQVLGHUDWLRQRILWVH[WHQVLYHHIIRUWVDQGWKH )RUH[DPSOHWKHUHDUHPDQ\DSSHOODWHGHFLVLRQVDIILUPLQJVXPPDU\MXGJPHQWDQGGLUHFWHG YHUGLFWVIRUGHIHQGDQWVVKRZLQJWKDWVXUYLYLQJDPRWLRQWRGLVPLVVLVQRWDJXDUDQWHHRIUHFRYHU\ See, e.g. In re Oracle Corp., Sec. Litig.)G WK&LU In re Silicon Graphics Sec. Litig.)G WK&LU Phillips v. Sci.-Atlanta, Inc.)$SS¶[ WK&LU In re Smith & Wesson Holding Corp. Sec. Litig.)G VW&LU McCabe v. Ernst & Young, LLP)G G&LU In re Digi Int’l, Inc. Sec. Litig.)$SS¶[ WK&LU Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 56 of 61 YHU\ IDYRUDEOH UHVXOW DFKLHYHG /HDG &RXQVHO VXEPLWV WKDW WKH UHTXHVWHG IHH RI ѿ RI WKH 6HWWOHPHQW)XQGVKRXOGEHDSSURYHG 7KH:RUNRI3ODLQWLIIV¶&RXQVHODQGWKH/RGHVWDU&URVV&KHFN 7KH ZRUN XQGHUWDNHQ E\ 3ODLQWLIIV¶ &RXQVHO LQ SURVHFXWLQJ WKLV /LWLJDWLRQ DQG DUULYLQJ DW WKH 6HWWOHPHQW KDV EHHQ ERWK WLPHFRQVXPLQJ DQG FKDOOHQJLQJ /HDG &RXQVHO KDV GHYRWHGVLJQLILFDQWHIIRUWVWRWKHLQYHVWLJDWLRQSURVHFXWLRQDQGUHVROXWLRQRIWKLV/LWLJDWLRQZKLFK HIIRUWVLQFOXGHDPRQJRWKHUV L FRQGXFWLQJDVLJQLILFDQWOHJDODQGIDFWXDOLQYHVWLJDWLRQLQWRWKH &RQYHUVLRQV DW LVVXH LQ WKH FDVH LL GUDIWLQJ WKH GHWDLOHG &RPSODLQW LLL IXOO\ EULHILQJ WZR PRWLRQVWRGLVPLVVDQG&LWL¶VVXEVHTXHQWPRWLRQVHHNLQJSHUPLVVLRQWRILOHDQLQWHUORFXWRU\DSSHDO RIWKH&RXUW¶V07'2UGHU LY HQJDJLQJLQDQGFRPSOHWLQJH[WHQVLYHIDFWDQGH[SHUWGLVFRYHU\ Y FRQVXOWLQJZLWKDQH[SHUWWRGHYHORSDFODVVZLGHGDPDJHVPHWKRGRORJ\ YL PRYLQJIRUFODVV FHUWLILFDWLRQ DQG YLL HQJDJLQJ LQ KDUGIRXJKW DUP¶VOHQJWK VHWWOHPHQW QHJRWLDWLRQV ZLWK 'HIHQGDQW¶V&RXQVHOLQFOXGLQJDIRUPDOPHGLDWLRQSURFHVVIDFLOLWDWHGE\DQH[SHULHQFH-$06 QHXWUDOSee supra6HFWLRQV,, 9$WDOOWLPHVWKURXJKRXWWKH/LWLJDWLRQ/HDG&RXQVHO¶VHIIRUWV ZHUHGULYHQDQGIRFXVHGRQDGYDQFLQJWKH/LWLJDWLRQWRDFKLHYHWKHPRVWVXFFHVVIXORXWFRPHIRU WKH&ODVVZKHWKHUWKURXJKVHWWOHPHQWRUWULDOE\WKHPRVWHIILFLHQWPHDQVSRVVLEOH 7KH WLPH GHYRWHG WR WKLV /LWLJDWLRQ E\ /HDG &RXQVHO LV VHW IRUWK LQ WKH DFFRPSDQ\LQJ /RGHVWDU([SHQVH 'HFODUDWLRQ DWWDFKHG KHUHWR DV ([KLELW ,QFOXGHG ZLWK WKLV GHFODUDWLRQDUHVFKHGXOHVWKDWVXPPDUL]HWKHWLPHH[SHQGHGE\WKHDWWRUQH\VDQGSURIHVVLRQDO VXSSRUWVWDIIZKRZRUNHGRQWKLVFDVHDQGWKHLUUHVXOWLQJ³ORGHVWDU´i.e.WKHLUKRXUVPXOWLSOLHGE\ WKHLUFXUUHQWKRXUO\UDWHVDVZHOODVH[SHQVHV WKH³)HHDQG([SHQVH6FKHGXOHV´ 7KH)HHDQG ([SHQVH6FKHGXOHVZHUHSUHSDUHGIURPFRQWHPSRUDQHRXVGDLO\WLPHUHFRUGVUHJXODUO\SUHSDUHG DQGPDLQWDLQHGE\.HVVOHU7RSD]ZKLFKUHFRUGVDUHDYDLODEOHDWWKHUHTXHVWRIWKH&RXUW7KH Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 57 of 61 KRXUO\UDWHVIRUWKHDWWRUQH\VDQGSURIHVVLRQDOVXSSRUWVWDIIHPSOR\HHVLQFOXGHGLQWKHVHVFKHGXOHV KDYHEHHQDFFHSWHGLQRWKHUFRPSOH[OLWLJDWLRQ ,QWRWDOIURPWKHLQFHSWLRQRIWKLV/LWLJDWLRQWKURXJK0D\/HDG&RXQVHO H[SHQGHGRYHUKRXUVRQWKHLQYHVWLJDWLRQSURVHFXWLRQDQGUHVROXWLRQRIWKHFODLPVDJDLQVW &LWLIRUDORGHVWDUYDOXHRI7KXVSXUVXDQWWRDORGHVWDU³FURVVFKHFN´DSSOLHG ZLWKLQWKH6HFRQG&LUFXLW/HDG&RXQVHO¶VIHHUHTXHVWRIѿRIWKH6HWWOHPHQW)XQGLIDZDUGHG ZRXOG\LHOGDPRGHVWPXOWLSOLHURIRQLWVORGHVWDUZKLFKIDOOVRQWKHORZHUHQGRIWKHUDQJH RI SRVLWLYH PXOWLSOLHUV DZDUGHG LQ RWKHU FRPSOH[ FDVHV E\ FRXUWV LQ WKLV &LUFXLW See)HH 0HPRUDQGXP,,& 7KH4XDOLW\RI/HDG&RXQVHO¶V5HSUHVHQWDWLRQ $VLWVILUPUHVXPHGHPRQVWUDWHV.HVVOHU7RSD]LVDILUPKLJKO\H[SHULHQFHGLQWKH DUHD RI FRPSOH[ FODVV DFWLRQV DQG FRPPHUFLDO OLWLJDWLRQ DQG KDVDVXFFHVVIXOWUDFNUHFRUGLQ OLWLJDWLQJVXFKFDVHVWKURXJKRXWWKHFRXQWU\See/RGHVWDU([SHQVH'HFO([&.HVVOHU7RSD]¶V UHVXPHDOVRGHVFULEHVWKHH[SHUWLVHDQGH[SHULHQFHRILVDWWRUQH\V7KHVXEVWDQWLDOUHVXOWDFKLHYHG IRUWKH&ODVVKHUHUHIOHFWVWKHVXSHULRUTXDOLW\RI/HDG&RXQVHO¶VUHSUHVHQWDWLRQ 7KHTXDOLW\RIWKHZRUNSHUIRUPHGE\/HDG&RXQVHOLQDWWDLQLQJWKH6HWWOHPHQW VKRXOG DOVR EH HYDOXDWHG LQ OLJKW RI WKH TXDOLW\ RI RSSRVLQJ FRXQVHO 'HIHQGDQW &LWL ZDV UHSUHVHQWHGE\VNLOOHGFRXQVHOIURPWKHQDWLRQDOO\SURPLQHQWGHIHQVHILUP0LOEDQN//3,QWKH IDFHRIWKLVNQRZOHGJHDEOHDQGIRUPLGDEOHGHIHQVH/HDG&RXQVHOZDVQRQHWKHOHVVDEOHWRGHYHORS /HDG&RXQVHOZLOOFRQWLQXHWRSHUIRUPOHJDOZRUNRQEHKDOIRIWKH&ODVVVKRXOGWKH&RXUW DSSURYHWKH6HWWOHPHQW$GGLWLRQDOUHVRXUFHVZLOOEHH[SHQGHGDVVLVWLQJ'DPDJHV&ODVV0HPEHUV ZLWKWKHLU&ODLP)RUPVDQGUHODWHGLQTXLULHVDQGZRUNLQJZLWKWKH&ODLPV$GPLQLVWUDWRU.&&WR HQVXUHWKHVPRRWKSURJUHVVLRQRIFODLPVSURFHVVLQJ1RDGGLWLRQDOOHJDOIHHVZLOOEHVRXJKWIRU WKLVZRUN Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 58 of 61 D FDVH WKDW ZDV VXIILFLHQWO\ VWURQJ WR SHUVXDGH &LWL WR VHWWOH WKH /LWLJDWLRQ RQ WHUPV WKDW DUH IDYRUDEOHWRWKH&ODVV % /HDG&RXQVHO¶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ase 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 59 of 61 DQG L[ PHGLDWLRQ&RXUWVKDYHFRQVLVWHQWO\IRXQGWKDWWKHVHNLQGVRIH[SHQVHVDUHSD\DEOHIURP DIXQGUHFRYHUHGE\FRXQVHOIRUWKHEHQHILWRIDFODVV 7KHODUJHVWFRPSRQHQWRI/HDG&RXQVHO¶VH[SHQVHVE\IDU i.e.RU DSSUR[LPDWHO\RILWVWRWDOH[SHQVHV ZDVLQFXUUHGIRU3ODLQWLIIV¶GDPDJHVH[SHUW3URIHVVRU %URZQRI5LYHUV&DSLWDO7KHQH[WODUJHVWFRPSRQHQWRI/HDG&RXQVHO¶VH[SHQVHVZDVUHVHDUFK FKDUJHV i.e. 7KLVDPRXQWUHSUHVHQWVFKDUJHVIRUFRPSXWHUL]HGUHVHDUFKVHUYLFHVVXFK DV/H[LV$GYDQFH:HVWODZDQG3$&(5,WLVVWDQGDUGSUDFWLFHIRUDWWRUQH\VWRXVHRQOLQHVHUYLFHV WRDVVLVWWKHPLQUHVHDUFKLQJOHJDODQGIDFWXDOLVVXHVDQGLQGHHGFRXUWVUHFRJQL]HWKDWWKHVHWRROV FUHDWHHIILFLHQFLHVLQOLWLJDWLRQDQGXOWLPDWHO\VDYHPRQH\IRUFOLHQWVDQGWKHFODVV 7UDYHOZDVDOVRUHTXLUHGWRSURVHFXWHWKLV/LWLJDWLRQDQG/HDG&RXQVHOLQFXUUHG WKHUHODWHGFRVWVRIUDLODQGDLUOLQHWLFNHWVPHDOVDQGORGJLQJ$FFRUGLQJO\LQFOXGHGLQ/HDG &RXQVHO¶VWRWDOH[SHQVHDPRXQWLVIRUVXFKWUDYHOH[SHQVHV/HDG&RXQVHODOVRLQFXUUHG IRUFRXUWUHSRUWHUVDQGWUDQVFULSWVIRUDYHQGRUWRKRVWWKHGDWDEDVHXVHG WR HIILFLHQWO\ DQG HIIHFWLYHO\ UHYLHZ WKH GRFXPHQWV SURGXFHG E\ &LWL DQG IRU WKH 3DUWLHV¶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¶V ELOOLQJUDWHV Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 60 of 61 $VGHWDLOHGLQ6HFWLRQ,,,supra3ODLQWLIIVKDYHEHHQIXOO\FRPPLWWHGWRSXUVXLQJ WKH&ODVV¶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¶V HIIRUWV )RUWKHVHUHDVRQVDQGLQUHFRJQLWLRQRI3ODLQWLIIV¶HIIRUWVZHUHVSHFWIXOO\VXEPLW WKDW 6HUYLFH $ZDUGV LQ WKH DJJUHJDWH DPRXQW RI i.e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ѿRIWKH6HWWOHPHQW)XQGVKRXOGEH DSSURYHGDVIDLUDQGUHDVRQDEOHDQGWKHUHTXHVWIRUUHLPEXUVHPHQWRIWRWDO/LWLJDWLRQ([SHQVHVLQ WKHDPRXQWRIZKLFKDPRXQWincludesSURSRVHG6HUYLFH$ZDUGVWR3ODLQWLIIVLQWKH DJJUHJDWHDPRXQWRIVKRXOGEHDSSURYHG ,GHFODUHXQGHUSHQDOW\RISHUMXU\WKDWWKHIRUHJRLQJIDFWVDUHWUXHDQGFRUUHFW Case 1:15-cv-09185-CM-KNF Document 154 Filed 05/24/19 Page 61 of 61 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 1 of 35 EXHIBIT 1 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 2 of 35 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK BENJAMIN MICHAEL MERRYMAN, Civil Action No. 1:15-cv-09185-CM-KNF AMY WHITAKER MERRYMAN TRUST, AND B MERRYMAN AND A MERRYMAN 4TH GENERATION REMAINDER TRUST, individually and on behalf of all others similarly situated, Plaintiffs, v. CITIGROUP, INC., CITIBANK, N.A., and CITIGROUP GLOBAL MARKETS INC., Defendants. DECLARATION OF JUSTIN R. HUGHES REGARDING (A)RECEIPT OF REGISTERED HOLDER DATA; (B) MAILING OF THE POSTCARD NOTICE; (C)ESTABLISHMENT OF THE TELEPHONE HOTLINE; (D)ESTABLISHMENT OF THE SETTLEMENT WEBSITE; AND (E) REPORT ON REQUESTS FOR EXCLUSION RECEIVED TO DATE I, Justin R. Hughes, declare and state as follows: 1. I am a Vice President of Class Actions at Kurtzman Carson Consultants LLC (“KCC”). KCC is headquartered at 3301 Kerner Boulevard, San Rafael, California 94901. Pursuant to the Court’s September 4, 2018 Order Preliminarily Approving Settlement and Providing for Notice (ECF No. 134) (the “Preliminary Approval Order”), Lead Counsel was authorized to retain KCC as the Claims Administrator in connection with the proposed Settlement of the above-captioned Litigation.1 I have personal knowledge of the matters stated herein and, if called upon, could and would testify thereto. 1 All terms with initial capitalization not otherwise defined herein shall have the meanings ascribed to them in the Stipulation and Agreement of Settlement, dated August 20, 2018 (ECF No. 131) (the “Stipulation”). Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 3 of 35 MAILING OF THE POSTCARD NOTICE 2. In accordance with the Stipulation and Preliminary Approval Order, and as more fully described in the Declaration of Justin R. Hughes Regarding Registered Holder Data and Nominee Outreach and Response (the “Initial Hughes Declaration”), in September 2018, KCC received from Citibank, N.A.’s transfer agent, Computershare, 24 separate spreadsheets collectively containing the names, addresses and cash distribution information for 209,954 unique Registered Holder Damages Class Members (i.e., Class Members who hold (or held) their eligible American Depositary Receipts (“ADRs”) directly and are listed on the records of Citi’s transfer agent). 3. Pursuant to the Court’s Order Approving Modifications to Notice Plan and Schedule for Approval of Settlement, dated February 14, 2019 (ECF No. 145) (the “Notice Modification Order”), KCC was responsible for disseminating notice via postcard (the “Postcard Notice”) to Registered Holder Damages Class Members.2 A copy of the Postcard Notice is attached hereto as Exhibit A. 4. In accordance with the Notice Modification Order, on March 15, 2019, KCC caused Postcard Notices to be mailed by first-class mail to 209,815 Registered Holder Damages Class Members.3 Following the initial mailing, through May 22, 2019, KCC has re-mailed 2,149 Postcard Notices that were initially returned as undeliverable by the United States Postal Service (“USPS”), but re-mailed based on updated addresses provided by the USPS or obtained through a third-party vendor to which KCC subscribes. 2 The efforts KCC conducted in accordance with the Preliminary Approval Order and prior to the Court’s entry of the Notice Modification Order—e.g., processing data received from Citi’s transfer agent and performing outreach to nominees, is set forth in the Initial Hughes Declaration. 3 Of the 209,954 unique Registered Holder Damages Class Members provided by Citi’s transfer agent, a total of 139 had incomplete address information and these records were removed from the mailing. 2 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 4 of 35 5. As a result of the efforts described above, as of May 22, 2019, KCC has mailed a total of 211,964 Postcard Notices. TELEPHONE HOTLINE 6. In accordance with the Preliminary Approval Order, KCC established and continues to maintain a toll-free telephone number (1-866-680-6138) for potential Class Members to call and obtain information about the Settlement, including important dates and deadlines. The telephone hotline connects callers with an Interactive Voice Recording (“IVR”), providing pre-recoded information about the Settlement and the ability to seek assistance from a live operator during regular business hours. The telephone hotline became operational on October 16, 2018. Following the Court’s entry of the Notice Modification Order, KCC updated the IVR to reflect the modifications to the notice plan approved by the Court as well as the revised Settlement-related dates and deadlines. 7. The telephone hotline is accessible 24 hours a day, 7 days a week. As of May 22, 2019, KCC has received a total of 5,682 calls to the telephone hotline, of which 2,107 calls were handled by a live operator. SETTLEMENT WEBSITE 8. To further assist potential Class Members, KCC, in accordance with the Preliminary Approval Order and in coordination with Lead Counsel, designed, implemented and currently maintains a website, www.CitibankADRSettlement.com, dedicated to the Settlement (the “Settlement Website”). The address for the Settlement Website is set forth in the Postcard Notice, the long-form Notice, the Claim Form,4 and the Summary Notice utilized in the multi- 4 Copies of the Notice and Claim Form are attached hereto as Exhibits B and C. The Notice and Claim Form were updated to reflect the modifications approved by the Court’s Notice Modification Order as well as the revised Settlement-related dates and deadlines. 3 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 5 of 35 media notice campaign (“Multi-Media Notice Program”) and published in various magazines, newspapers and investment newsletters.5 9. The Settlement Website became operational on October 15, 2018, and following the Court’s entry of the Notice Modification Order, was updated to reflect the modifications to the notice plan approved by the Court and the revised Settlement-related dates and deadlines. The Settlement Website is accessible 24 hours a day, 7 days a week. The Settlement Website lists the exclusion, objection, and claim submission deadlines, as well as the date and time of the Final Approval Hearing. In addition, the Settlement Website contains links to downloadable copies of the Stipulation, Preliminary Approval Order, Notice Modification Order, Notice, Claim Form and operative complaint for the Litigation. The Settlement Website also contains detailed instructions for entities who wish to submit claims electronically. Finally, the Settlement Website provides Non-Registered Holder Damages Class Members with the ability to file a claim online. 10. In conjunction with the Postcard Notice mailing to Registered Holder Damages Class Members, on March 15, 2019, KCC added functionality (the “Claim Portal”) to the Settlement Website so that Registered Holder Damages Class Members can access their holding and cash distribution information provided by Citi’s transfer agent using the unique Claim Number and PIN set forth on the Postcard Notice. When accessing the Claim Portal, Registered Holder Damages Class Members are also provided with instructions on how to amend or supplement their claim if they believe the information provided by Citi’s transfer agent is incorrect or incomplete. 5 Details of the Multi-Media Notice Program conducted by HF Media, LLC are described in the Declaration of Jeanne C. Finegan which is also being submitted with Plaintiffs’ settlement submission. 4 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 6 of 35 !WR=@@W2FEN=EP4WFH4J0N=E;WA0=EN0=E=E;W0E3W0MW0HHJFHJ=0N4WPH30N=E;WN<4 (4NO@4A4ENW -41M=N4W PEN=@W N<4W 2FE2@PM=FEW F5W N<4W 03A=E=MNJ0N=FEW MW F5W #0UW W W N<4W (4NN@4A4ENW-41M=N4W<0MWJ424=Q43W W<=NMW EW 033=N=FEW NFW N<4W (4NN@4A4ENW -41M=N4W !W =EW 2FFJ3=E0N=FEW R=N FPEM4@W 34M=;E43W =AH@4A4EN43W 0E3W 2P4EN@UW A0=EN0=EMW 0W ;4E4J0@W 'W .W R41M=N4W RSR'.(4NN@4A4EN2FAWR<=2 M4NN@4A4ENMWF1N0=E43W=EWN<4WJ4@0N43W'W.W20M4MW (( ( ( ( %($FW , &% "W($/W0E3W""' ($((&( !" (#( ( ($FW 2Q ,W($/W)<4W033J4MMW9JWN<=MWR41M=N4WR0MW=E2@P343W=EWN<4W10EE4JW03MWPN=@=V43W=EW N<4W#P@N=#43=0W$FN=24W&JF;J0AW )<4W &FMN20J3W $FN=24W $FN=24W (PAB0JUW $FN=24W 0E3W (4NN@4A4ENW -41M=N4 =E5CDWHFN4EN=0@W@0MMW#4A14JMWN<0NWJ4IP4MNMW6GJW4T2@PM=FEW6KFAWN<4W@0MMWAPMNW14WJ424=Q43WEFW @0N4JW N<0EW PE4W W W )<4W $FN=24W HJFQ=34MW N<0NW J4IP4MNMW 6GJW 4T2@PM=FEW APMNW 14W A0=@43W NFW $ ( ( $$ $( ."+( %$(W 2FW !W @0MMW 2N=FEW (4JQ=24MW W !4L4JW FP@4Q0J3W(0EW'084@WW W0E3W0@MFWM4NMW6GJN 402 W MWF5W#0UWW W!W<0MWJ424=Q43WWJ4IP4MNMW6GJW4T2@PM=FEW6KFAWN<4 @0MMW !W R=@@WMP1A=NW 0W MPHH@4A4EN0@W 342@0J0N=FEW 0:4JW N<4W PE4W W W 3403@=E4W N<0NW R=@@W J4HC>WFEW0@@W4T2@PM=FEWJ4IP4MNMWJ424=Q43W W342@0J4WPE34JWH4E0@NUWF5WH4 ?PJUWPE34JWN<4W@0RMWF5WN<4W+E=N43W(N0N4MWF5WA4J=20WN<0NWN<4W 6GJ4;F=E;W=MWNJP4W0E3W2 *42NWT42PN43W=EW(0EW'07W W0@=9L=0WFEW#0UWW W Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 7 of 35 Exhibit A Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 8 of 35 Citibank ADR Settlement c/o KCC Class Action Services P.O. Box 404077 Louisville, KY 40233-4077 Merryman et al. v. Citigroup, Inc. et al. No. 1:15-cv-09185-CM-KNF (S.D.N.Y.) 2D THIS NOTICE ONLY PROVIDES LIMITED INFORMATION ABOUT THIS CLASS ACTION LAWSUIT «BarCode» Postal Service: Please do not mark barcode AND SETTLEMENT. Claim#: CI2-«ClaimNumber» Please Visit www.CitibankADRSettlement.com «Owner» or call 1-866-680-6138 «CoOwner» for more information. «Representative» «Address1» «Address2» «City» «StateCd» «Zip» «Country» CI2 Carefully separate at perforation NAME/ADDRESS CHANGES (IF ANY): IF YOU HAVE A CHANGE OF NAME/ADDRESS, PLEASE FILL OUT THIS FORMAND MAIL IT TO THE CLAIMS ADMINISTRATOR VIA THE U.S. POSTAL SERVICE. THE ADDRESS IS ON THE BACK OF THIS CARD. First Name Last Name Street Address City State Zip Code «Owner» —— «Address1» «Address2» 2D «City» «StateCd» «Zip» Area Code Telephone Number (Home) «Country» Email *< IMPORTANT. PLEASE READ. Place Stamp +HUH Citibank ADR Settlement c/o KCC Class Action Services P.O. Box 404077 Louisville, KY 40233-4077 CI2 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 10 of 35 Exhibit B Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 11 of 35 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK BENJAMIN MICHAEL MERRYMAN, AMY WHITAKER MERRYMAN TRUST, AND B Civil Action No. 1:15-cv-09185-CM-KNF MERRYMAN AND A MERRYMAN 4TH GENERATION REMAINDER TRUST, individually and on behalf of all others similarly situated, Plaintiffs, v. CITIGROUP, INC., CITIBANK, N.A., and CITIGROUP GLOBAL MARKETS INC., Defendants. NOTICE OF (I) PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT; (II) FINAL APPROVAL HEARING; AND (III) MOTION FOR ATTORNEYS’ FEES AND REIMBURSEMENT OF LITIGATION EXPENSES TO: All persons or entities (1) who received cash distributions from the Depositary-sponsored American Depositary Receipts (“ADRs”) listed in Appendix 1 hereto from January 1, 2006 to September 4, 2018, inclusive, and were damaged thereby (the “Damages Class”) and/or (2) who currently own the Depositary- sponsored ADRs listed in Appendix 1 hereto (the “Current Holder Class” and, together with the Damages Class, the “Class”). A Federal Court authorized this Notice. This is not a solicitation from a lawyer. This notice (“Notice”) is being issued pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Southern District of New York (“Court”). The purpose of this Notice is to advise you of the pendency of the above-captioned class action (“Litigation”) and the proposed Settlement of the Litigation for $14,750,000 in cash and certain additional non-monetary relief (“Settlement”) on the terms and provisions contained in the Stipulation and Agreement of Settlement dated August 20, 2018 (“Stipulation”).1 The Honorable Colleen McMahon is presiding over the Litigation. Judge McMahon has provisionally certified the proposed Class for purposes of settlement only, has approved this Notice to potential members of the Class and has scheduled a final settlement hearing for July 12, 2019, at 10:00 a.m. (“Final Approval Hearing”). The Final Approval Hearing will be held in Courtroom 24A of the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007. The Settlement resolves claims by Benjamin Michael Merryman, Amy Whitaker Merryman Trust, and B Merryman and A Merryman 4th Generation Remainder Trust (“Named Plaintiffs”) and Chester County Employees Retirement Fund and Stephen Hildreth (“Proposed Intervenors” and, together with the Named Plaintiffs, “Plaintiffs”), that have been asserted on behalf of the Class against Citibank, N.A. (“Defendant” or “Depositary”). Plaintiffs allege that, during the relevant time period, Defendant – as depositary bank for the ADRs listed in Appendix 1 to this Notice – systematically deducted impermissible fees for conducting foreign exchange (“Conversion”) from dividends and/or cash distributions issued by foreign companies, and owed to ADR holders. A more detailed description of the claims asserted by Plaintiffs in the Litigation, as well as the history of the Litigation, is set forth in ¶¶ 11-21 below. As more fully described in ¶¶ 26-27 below, the Settlement provides for $14.75 million (“Settlement Amount”) to be paid by or on behalf of Defendant for the benefit of eligible Class Members, which amount has been deposited into an interest-bearing escrow account. The Net Settlement Fund (i.e., the Settlement Amount plus any interest earned thereon (“Settlement Fund”) less (i) any Taxes and Tax Expenses; (ii) any Notice and Administration Costs; and (iii) any attorneys’ fees and Litigation Expenses awarded by the Court) will be distributed to eligible Damages Class Members (i.e., “Authorized Recipients”) according to a Court-approved plan of allocation. The proposed Plan of Allocation is set forth in Exhibit 1 hereto. The Settlement also provides the additional non-monetary relief related to Conversions provided in ț 28 below. PLEASE NOTE: Those Damages Class Members who hold (or held) their eligible ADRs directly and are listed on the records of the Depositary’s transfer agent (the “Registered Holder Damages Class Members”) do not have to take any action in order to be eligible to receive a payment from the Settlement. However, those Damages Class Members who hold (or held) their eligible ADRs through a bank, broker or other nominee and are not listed on the records of the Depositary’s transfer agent (the “Non-Registered Holder Damages Class Members”) must complete and submit a valid Claim Form in order to be eligible to receive a payment from the Settlement. See ¶¶ 38-40 below. 1 The Stipulation can be viewed at www.CitibankADRSettlement.com. Any capitalized terms used in this Notice that are not otherwise defined herein shall have the meanings ascribed to them in the Stipulation. 1 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 12 of 35 Any questions regarding this Notice, the Litigation, the Settlement or your eligibility to participate in the Settlement should be directed to Lead Counsel: Sharan Nirmul, Esq., Kessler Topaz Meltzer & Check, LLP, 280 King of Prussia Road, Radnor, Pennsylvania 19087, (610) 667-7706, [email protected], www.ktmc.com. Further information may be obtained by contacting the Court-authorized Claims Administrator, Kurtzman Carson Consultants LLC (“KCC”), at Citibank ADR Settlement, c/o KCC Class Action Services, P.O. Box 404077, Louisville, KY 40233-4077, 1-866-680-6138, [email protected]. Please DO NOT contact the Court, the Clerk’s office, Citibank, N.A., or its counsel. All questions should be directed to either Lead Counsel or the Claims Administrator. IF YOU ARE A CLASS MEMBER, PLEASE READ THIS NOTICE CAREFULLY. This Notice explains important rights you may have, including the possible receipt of cash from the Settlement. If you are a member of the Class, your legal rights will be affected whether or not you act. A SUMMARY OF YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT SUBMIT A CLAIM FORM If you are a Non-Registered Holder Damages Class Member (as defined above), POSTMARKED NO LATER this is the only way for you to be eligible to receive a payment from the Settlement. THAN AUGUST 12, 2019, UNLESS YOU ARE A If you are a Registered Holder Damages Class Member (as defined above), you do REGISTERED HOLDER not need to take any further action (i.e., submit a Claim Form) to be eligible to receive DAMAGES CLASS MEMBER. a payment from the Settlement. EXCLUDE YOURSELF FROM If you are a member of the Class and choose to exclude yourself from the Class, THE CLASS BY SUBMITTING you will not be eligible to receive any payment from the Settlement. This is the only A WRITTEN REQUEST FOR option that allows you ever to be part of any other lawsuit against the Depositary or EXCLUSION SO THAT IT IS any of the other Defendant Released Parties concerning the Released Claims. See RECEIVED NO LATER THAN ¶¶ 46-51 below for details and requirements for requesting exclusion. JUNE 7, 2019. OBJECT TO THE If you do not like the proposed Settlement, the proposed Plan of Allocation, and/or Lead SETTLEMENT BY Counsel’s request for attorneys’ fees and reimbursement of Litigation Expenses, you SUBMITTING A WRITTEN may write to the Court and explain why you do not like them. You can only object to the OBJECTION SO THAT IT IS Settlement, the Plan of Allocation and/or the fee and expense request if you are a Class RECEIVED NO LATER THAN Member and you do not exclude yourself from the Class. See ¶¶ 56-62 below for details JUNE 7, 2019. and requirements for objecting. FILE A NOTICE OF INTENTION Filing a written objection and notice of intention to appear by June 7, 2019 allows TO APPEAR SO THAT IT IS you to speak in Court, at the discretion of the Court, about the fairness of the RECEIVED NO LATER THAN proposed Settlement, the proposed Plan of Allocation, and/or Lead Counsel’s JUNE 7, 2019, AND GO TO request for attorneys’ fees and reimbursement of Litigation Expenses. If you submit THE FINAL APPROVAL a written objection, you may (but you do not have to) attend the hearing and, at the HEARING ON JULY 12, 2019. discretion of the Court, speak to the Court about your objection. You will remain a member of the Class, which means that you give up your right to sue the Defendant or any of the other Defendant Released Parties about the claims that are resolved by the Settlement and you will be bound by any judgments or DO NOTHING. orders entered by the Court in the Litigation. Please Note: If you are a Non-Registered Holder Damages Class Member and do nothing, you will not be eligible to receive a payment from the Settlement. 2 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 13 of 35 WHAT THIS NOTICE CONTAINS SUMMARY OF THE SETTLEMENT Page 3 BASIC INFORMATION Page 4 What Is The Purpose Of This Notice? Page 4 What Is This Litigation About? What Has Happened So Far? Page 5 Why Is This Litigation A Class Action? Page 6 Why Is There A Settlement? Page 6 How Do I Know If I Am Part Of The Class? Page 6 What Does The Settlement Provide? Page 6 How Do I Participate In The Settlement? What Do I Need To Do? Page 8 What Will Be My Share Of The Settlement Fund? Page 9 When Will I Receive My Payment? Page 9 Can I Exclude Myself From The Class? Page 9 THE LAWYERS REPRESENTING YOU Page 10 Do I Have A Lawyer In This Case? Page 10 How Will The Lawyers Be Paid? Page 10 OBJECTIONS Page 10 How Do I Tell The Court If I Do Not Like The Settlement? Page 10 THE COURT’S FINAL APPROVAL HEARING Page 11 When And Where Will The Court Decide Whether To Approve The Settlement? Page 11 Do I Have To Come To The Hearing? Page 11 May I Speak At The Hearing? Page 11 IF YOU DO NOTHING Page 11 What Happens If I Do Nothing At All? Page 11 GETTING MORE INFORMATION Page 12 How Do I Get More Information? Page 12 LISTS OF ADRS AT ISSUE IN THE LITIGATION Appendix 1 PLAN OF ALLOCATION OF NET SETTLEMENT FUND Exhibit 1 SUMMARY OF THE SETTLEMENT 1. As described in more detail below (and in the operative complaint filed in the Litigation), Plaintiffs allege that during the relevant time period, the Depositary, as depositary bank for the issuance of ADRs, systematically deducted impermissible Conversion fees from dividends and/or cash distributions, and owed to ADR holders. A copy of the operative complaint in the Litigation – the Class Action Complaint dated November 20, 2015 (“Complaint”) – is available on the website for the Settlement, www.CitibankADRSettlement.com. 2. An Escrow Account has been established to hold the Settlement Amount prior to being distributed to Authorized Recipients pursuant to the Court-approved plan of allocation. After the Settlement becomes Final and pursuant to Order of the Court, the Net Settlement Fund will be distributed to Authorized Recipients. As a result of the Court’s certification decision, Plaintiffs’ and the certified class’s alleged damages were approximately $4.6 million, based on the analysis of Plaintiffs’ damages expert. With the inclusion of Proposed Intervenors Chester County Employees Retirement Fund and Stephen Hildreth (intervention to which the Depositary is stipulating for purposes of the Settlement), the Class’s alleged damages range from approximately $61.9 million to $68.8 million. These amounts are only estimates. The Depositary does not concede the accuracy of Plaintiffs’ damages expert’s calculation, or that there were any damages. A Damages Class Member’s Recognized Claim, as explained in the Plan of Allocation, reflects Plaintiffs’ view of the purported margin(s) retained by the Depositary for Conversions of ADR dividends and cash distributions. A Damages Class Member’s actual recovery will be based upon the Net Settlement Fund, which will consist of the Settlement Fund, less certain amounts to be deducted from the Settlement Fund as described herein and in the Stipulation, including expenses associated with providing notice to the Class, Court-awarded attorneys’ fees and Litigation Expenses (including any Service Awards to Plaintiffs for the effort and time spent by them in connection with the prosecution of the Litigation), Taxes and Tax Expenses, and other costs related to the administration of the Settlement and implementation of the Plan of Allocation, and will be allocated in accordance with the plan of allocation approved by the Court. (See ¶¶ 41-44 below and the proposed Plan of Allocation attached as Exhibit 1.) 3 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 14 of 35 3. The Class is defined as follows: All persons or entities (1) who received cash distributions from the Depositary-sponsored ADRs listed in Appendix 1 hereto from January 1, 2006 to September 4, 2018, inclusive, and who were damaged thereby and/or (2) who currently own the Depositary-sponsored ADRs listed in Appendix 1 hereto. Please Note: There are exceptions to being included in the Class. A description of those persons and entities excluded by definition from the Class is provided below in ¶ 25. 4. As with any litigation, the Parties would face an uncertain outcome of continuing this Litigation. Absent the Settlement, orders and appeals in connection with the Proposed Intervenors’ motion (see ¶ 18 below), summary judgment and a trial could result in a judgment or verdict greater or less than the recovery obtained by the Settlement, or no recovery at all. This Litigation has been hotly contested from the outset. Throughout this Litigation, Plaintiffs and the Depositary have disagreed on both liability and damages. The Depositary, among other things: (1) has denied, and continues to deny, the material allegations of the Complaint, (2) has denied, and continues to deny, any wrongdoing or liability whatsoever, (3) believes that its actions were a proper exercise of its judgment and in good faith, and were consistent with its obligations under the governing deposit agreements and complied with all applicable laws, rules, regulations, codes, market practices, and standards, (4) would assert certain other defenses, including statute of limitations defenses, if this Settlement is not consummated, and (5) is entering into the Settlement solely to avoid the cost, disruption, and uncertainty of continued litigation. The Parties have taken into account the uncertainty and risks inherent in this Litigation, particularly its complex nature, and have concluded that it is desirable that this Litigation be fully and finally settled on the terms and conditions set forth in the Stipulation. 5. Over the course of this Litigation, the Parties briefed a motion to dismiss the Complaint and engaged in discovery efforts, which included the Depositary’s production of over 81,000 pages of documents, Named Plaintiffs’ production of over 2,500 pages of documents, productions from several third parties, 13 depositions and the exchange of expert reports. 6. Lead Counsel in this Litigation, on behalf of Plaintiffs’ counsel, will apply to the Court for an award of attorneys’ fees in an amount not to exceed 33⅓% of the Settlement Amount and reimbursement of Litigation Expenses of Plaintiffs’ counsel in an amount not to exceed $800,000, plus interest earned on these amounts. Plaintiffs will share in the allocation of the money paid to members of the Class on the same basis and to the same extent as all other members of the Class, except that, in addition thereto, Plaintiffs may apply to the Court for Service Awards of up to $25,000 in the aggregate. Any Service Awards granted to Plaintiffs by the Court will be payable from the Settlement Fund, and will compensate Plaintiffs for their effort and time spent in connection with the prosecution of the Litigation, as supported by adequate written documentation of such effort and time. The aggregate amount of Service Awards (i.e., $25,000) is reflected in the maximum amount of Litigation Expenses set forth above. BASIC INFORMATION What Is The Purpose Of This Notice? 7. The Court has directed the issuance of this Notice to inform potential members of the Class about the proposed Settlement with the Depositary before the Court decides whether to approve the Settlement. If the Court approves the Settlement, and any related objections and appeals are favorably resolved, the Settlement Amount, net of the costs, fees and expenses described herein, will be allocated among eligible Damages Class Members according to a Court-approved plan of allocation and the Defendant Released Parties and Plaintiff Released Parties will be released from all Released Claims and Released Defendant Claims, respectively, as set forth in the Stipulation. 8. This Notice explains the Litigation, the Settlement, your legal rights (if you are a Class Member as defined in ¶25 below), what benefits are available, who is eligible for them, and how you will receive your portion of the benefits. The Notice also informs you of the Final Approval Hearing to be held by the Court to consider the fairness, reasonableness and adequacy of the Settlement and to consider Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses from the Settlement Amount, which may include Service Awards to Plaintiffs. 9. The Final Approval Hearing will be on July 12, 2019 at 10:00 a.m., before the Honorable Colleen McMahon in the United States District Court for the Southern District of New York, Courtroom 24A of the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007, to determine: x whether the Settlement should be finally approved as fair, reasonable and adequate; x whether the Complaint should be dismissed with prejudice pursuant to the terms of the Settlement; x whether the Notice and the means of dissemination thereof pursuant to the Settlement: (i) were appropriate and reasonable and constituted due, adequate, and sufficient notice to all persons and entities entitled to such notice and (ii) met all applicable requirements of the Federal Rules of Civil Procedure, and any other applicable law; and x whether Lead Counsel’s application for attorneys’ fees and reimbursement of Litigation Expenses, including Service Awards to Plaintiffs, should be approved. 4 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 15 of 35 10. The issuance of this Notice is not an expression of the Court’s opinion on the merits of any claim in this Litigation, and the Court still has to decide whether to approve the Settlement. If the Court approves the Settlement, payment to Authorized Recipients will be made after all related appeals, if any, are favorably resolved. It is always uncertain whether such appeals can be favorably resolved, and resolving them can take time, perhaps more than a year. Please be patient. What Is This Litigation About? What Has Happened So Far? 11. On June 2, 2015, Named Plaintiffs filed a complaint in the action captioned Merryman et al. v. Citigroup, Inc. et al., 15-cv-05129-TLB (W.D. Ark.) (“Arkansas Complaint”) asserting claims against Citigroup Inc., Citibank, N.A. and Citigroup Global Markets Inc. (collectively, the “Citi Defendants”). The Arkansas Complaint asserted claims for breach of contract, breach of implied covenant of good faith and fair dealing and conversion. On July 10, 2015, the Citi Defendants moved to dismiss, or, in the alternative, to transfer the Arkansas Complaint to the Southern District of New York, which Named Plaintiffs opposed on September 4, 2015. On November 19, 2015, the court granted the Citi Defendants’ motion to dismiss the Arkansas Complaint without prejudice on the grounds that the court lacked personal jurisdiction over the Citi Defendants. 12. On November 20, 2015, Named Plaintiffs filed the initial complaint in the Litigation (i.e., the “Class Action Complaint”) asserting claims against the Citi Defendants. Specifically, the Class Action Complaint asserted claims for breach of contract and breach of implied covenant of good faith and fair dealing against Citibank, N.A. and claims for conversion against all of the Citi Defendants. As noted above, Named Plaintiffs alleged that during the relevant time period, Citibank, N.A., as depositary bank for the issuance of ADRs, systematically deducted impermissible fees from dividends and/or cash distributions issued by foreign companies, and owed to ADR holders. More specifically, as Named Plaintiffs alleged, the Depositary assigned Conversion rates to the Conversion of non-U.S. dollar-based dividends and cash distributions by foreign companies, which reflected a spread that was added to the Conversion rate the Depositary actually received at the time of the Conversion. As a result of its practice of adding a spread to Conversion rates, Named Plaintiffs alleged that the Depositary improperly retained millions of dollars from dividends and cash distributions owed and payable to the class. 13. On December 28, 2015, the Citi Defendants moved to dismiss the Class Action Complaint with prejudice pursuant to the Securities Litigation Uniform Standards Act of 1998, 15 U.S.C. §78bb(f)(1), or Rules 8(a), 12(b)(1), and/or 12(b)(6) of the Federal Rules of Civil Procedure. Named Plaintiffs opposed the motion on January 11, 2016, and the Citi Defendants filed a reply in support of their motion on January 19, 2016. On August 15, 2016, the Court entered its Memorandum Decision and Order Granting in Part and Denying in Part Defendants’ Motion to Dismiss (“MTD Order”). Specifically, the Court: (i) denied the motion as to Count I finding that Named Plaintiffs stated a claim for breach of contract and (ii) granted the motion, with prejudice, as to Counts II and III, dismissing Named Plaintiffs’ claim for breach of implied duty of good faith as duplicative and their claim for conversion for failure to state a claim on which relief may be granted.2 By the MTD Order, the Court also (i) denied the motion, without prejudice to renewal, as to all claims asserted for the period prior to November 20, 2010, (ii) denied the Citi Defendants’ claim that the breach of contract claim was barred under SLUSA, and (iii) granted the motion and dismissed Named Plaintiffs’ claims for punitive damages. 14. The Depositary answered the Class Action Complaint on August 30, 2016. 15. On October 7, 2016, the Depositary filed a motion seeking an order certifying the Court’s MTD Order for interlocutory appeal and a partial stay of discovery related to ADRs other than those held by Named Plaintiffs and/or events prior to November 20, 2010. Named Plaintiffs opposed the Depositary’s motion on October 21, 2016 and the Depositary filed its reply in support of its motion on October 28, 2016. On January 6, 2017, the Court entered its Memorandum Decision and Order Denying Defendants’ Motion for Certification of an Interlocutory Appeal and to Stay Discovery and ordered the parties to submit a schedule for discovery. 16. Thereafter, Named Plaintiffs and the Depositary commenced discovery, which included the Depositary producing over 81,000 pages of documents, Named Plaintiffs producing over 2,500 pages of documents, document productions from several third parties, 13 depositions and the exchange of expert reports. 17. On June 30, 2017, Named Plaintiffs moved for class certification, which the Depositary opposed on August 17, 2017. Named Plaintiffs filed a reply in support of their motion on September 15, 2017, as well as a motion to exclude the Depositary’s reliance on the declaration of Scott Pollak, the Depositary’s Rule 30(b)(6) designee. On November 3, 2017, the Depositary filed a motion to preclude the proposed testimony of Named Plaintiffs’ expert G. William Brown, Jr. On March 22, 2018, the Court entered its Decision and Order Granting in Part and Denying in Part Plaintiffs’ Motion for Class Certification (“Class Certification Order”), certifying a class limited only to the three Depositary-sponsored ADRs personally owned by Named Plaintiffs. Also by its Class Certification Order, the Court found that Named Plaintiffs could not bring claims for injunctive relief, as no Named Plaintiff continued to hold these three Depositary-sponsored ADRs. 18. In response to the Class Certification Order, Chester County Employees Retirement Fund and Stephen Hildreth, owning 21 of the 35 ADRs covered by Named Plaintiffs’ original proposed class definition, filed a motion to intervene in the Litigation on May 9, 2018. The Proposed Intervenors also continue to hold Depositary-sponsored ADRs. The Depositary opposed the Proposed Intervenors’ motion on May 23, 2018, and the Proposed Intervenors filed a reply in support of their motion on May 31, 2018. 2 With the Court’s dismissal of Counts II and III, Citigroup Inc. and Citigroup Global Markets Inc. were dismissed from the Litigation. 5 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 16 of 35 19. During the foregoing efforts, counsel for Named Plaintiffs and counsel for the Depositary began discussing the possibility of resolving the Litigation. Following hard-fought, arm’s-length negotiations spanning the course of several months, the Parties reached an agreement-in-principle to settle the Litigation and informed the Court of this agreement on June 6, 2018. The Parties negotiated a term sheet setting forth the material terms of their agreement, which was executed on June 26, 2018. 20. Over the following weeks, the Parties negotiated and documented the specific terms and conditions of the Settlement, which are embodied in the Stipulation entered on August 20, 2018. The Stipulation can be viewed at www.CitibankADRSettlement.com. 21. On September 4, 2018, the Court entered the Preliminary Approval Order, directing notice to potential Class Members and scheduling the Final Approval Hearing to consider whether to grant final approval of the Settlement, among other things. On February 14, 2019, the Court entered an Order approving certain modifications to the notice plan. Why Is This Litigation A Class Action? 22. In a class action, one or more individuals or entities, referred to as “plaintiffs,” sue on behalf of individuals and entities who have similar claims. All of the Persons on whose behalf Named Plaintiffs in this Litigation are suing are members of a “class” referred to in this Notice as Class Members or members of the Class. Because Named Plaintiffs believe that the wrongful conduct alleged in this case affected all holders of the Depositary-sponsored ADRs at issue in the Litigation (reflected in Appendix 1 hereto) in the same way, Named Plaintiffs filed their case as a putative class action. The Class has been provisionally certified by the Court for purposes of effectuating the Settlement. Why Is There A Settlement? 23. The Court has not expressed any opinions or reached any decisions on the ultimate merits of Named Plaintiffs’ claims against the Depositary. Instead, Plaintiffs and the Depositary have agreed to a Settlement to resolve the Litigation. In reaching the Settlement, the Parties have avoided the cost and time of further litigation, including the costs and expenses involved in completing discovery, summary judgment briefing, a trial, post-trial briefing and potential appeals. As with any litigation, Plaintiffs would face an uncertain outcome if this case proceeded. Pursuing the Litigation against the Depositary could result in a verdict offering relief greater than the Settlement, a verdict for less money than Plaintiffs have obtained through the Settlement, or no recovery at all. Based on these risks and an evaluation of other unique risks presented by this case, Plaintiffs and Lead Counsel believe the Settlement is in the best interests of all members of the Class. Additional information concerning the Settlement is available on the website, www.CitibankADRSettlement.com. 24. As stated above, the Settlement is the product of hard-fought, arm’s-length negotiations between Lead Counsel and Defendant’s Counsel, both of which are very experienced with respect to complex litigation of this type. Lead Counsel believes the proposed Settlement is fair, reasonable and adequate and in the best interest of the Class. How Do I Know If I Am Part Of The Class? 25. The Court has provisionally certified the following Class: All persons or entities (1) who received cash distributions from the Depositary-sponsored ADRs listed in Appendix 1 hereto from January 1, 2006 to September 4, 2018, inclusive, and who were damaged thereby (i.e., the Damages Class) and/or (2) who currently own the Depositary-sponsored ADRs listed in Appendix 1 hereto (i.e., the Current Holder Class). The Depositary and its officers, directors, legal representatives, heirs, successors, corporate parents, subsidiaries, and/or assigns, other than Investment Vehicles (which are not excluded) are excluded from the Class only to the extent that such persons or entities had a proprietary (i.e., for their own account) interest in the ADRs listed in Appendix 1 hereto and not to the extent that they have held the ADRs in a fiduciary capacity or otherwise on behalf of any third-party client, account, fund, trust or employee benefit plan that otherwise falls within the definition of the Class. Also excluded from the Class are any persons and entities who or which exclude themselves from the Class by submitting a request for exclusion that is accepted by the Court. PLEASE READ THIS NOTICE CAREFULLY TO DETERMINE WHETHER YOU ARE A CLASS MEMBER AND WHETHER YOU ARE ENTITLED TO RECEIVE PROCEEDS FROM THE SETTLEMENT. IF YOU ARE A NON-REGISTERED HOLDER DAMAGES CLASS MEMBER AND YOU WISH TO BE ELIGIBLE TO RECEIVE A PAYMENT FROM THE SETTLEMENT, YOU ARE REQUIRED TO SUBMIT A CLAIM FORM AND THE REQUIRED SUPPORTING DOCUMENTATION AS SET FORTH THEREIN POSTMARKED NO LATER THAN AUGUST 12, 2019. YOU CAN OBTAIN A COPY OF THE CLAIM FORM, OR SUBMIT A CLAIM ONLINE, AT WWW.CITIBANKADRSETTLEMENT.COM. What Does The Settlement Provide? 26. The Settlement provides for $14,750,000 to be paid by or on behalf of Defendant to settle the Litigation. The $14,750,000, plus interest that accrues on this amount, will be distributed to the Damages Class after costs, expenses and fees are deducted as described below. As noted above, as a result of the Court’s class certification decision, Plaintiffs’ and the certified class’s alleged damages were approximately $4.6 million, based on the analysis of Plaintiffs’ damages expert. With the inclusion of the Proposed Intervenors, the Class’s alleged damages range from approximately $61.9 million to $68.8 million. These 6 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 17 of 35 amounts are only estimates. The Depositary does not concede the accuracy of Plaintiffs’ damages expert’s calculation, or that there were any damages. A Damages Class Member’s Recognized Claim, as explained in the Plan of Allocation, reflects Plaintiffs’ view of the purported margin(s) retained by the Depositary for Conversions of ADR dividends and cash distributions. A Damages Class Member’s actual recovery will depend upon the net amount in the Settlement Fund (after the deduction of certain amounts as described herein and in the Stipulation, including Notice and Administration Costs, Court-approved attorneys’ fees and Litigation Expenses, including any Service Awards to Plaintiffs, and Taxes and Tax Expenses), which will be allocated and paid to eligible Damages Class Members according to the plan of allocation approved by the Court. 27. The Settlement will provide for cash payments to Damages Class Members who do not exclude themselves from the Class pursuant to ¶¶ 46-51 below. Registered Holder Damages Class Members do not need to submit a Claim Form in order to be eligible for a payment from the Settlement. Non-Registered Holder Damages Class Members must submit a valid Claim Form in order to be eligible to receive a payment from the Settlement. 28. In addition to the $14,750,000 cash recovery, the Settlement also provides additional non-monetary relief for the Class. Defendant has agreed to the following additional relief: (a) Definitions: As used in this ¶ 28, the following terms shall have the meanings set forth below: x “Conversion Provider” refers to any entity, division, or business unit affiliated with the Depositary that converts or causes to be converted cash distributions on behalf of the Depositary. A Conversion Provider may transact with an affiliated market-making desk, e.g., CitiFX, when conducting a Conversion, and that desk is entitled to make a profit on any such transactions without regard to any provision of this agreement. x “Conversion” refers to the conversion of foreign currency of any cash distribution paid by any Depositary-sponsored ADR issuer (“Issuer”) pursuant to a Deposit Agreement. Conversions may be executed in multiple subparts. (b) Conversion Charge: Defendant agrees that it and its Conversion Providers shall charge no more than 20 (twenty) basis points for any Conversion. (c) Right to Modify the Conversion Charge: Notwithstanding ¶ 28(b), Defendant and an Issuer may agree to modify the Conversion Charge set forth in the Stipulation, as required by the relevant depositary agreement and any applicable SEC rules. (d) Conversion by Unaffiliated Entities and Issuers: Notwithstanding ¶ 28(b) and the capabilities of the Depositary or its Conversion Providers to enter into a Conversion, it is agreed that (i) Conversions may be managed and executed by unaffiliated local custodians or third-parties (“Unaffiliated Conversion Providers”), and, for such Conversions, the foreign exchange rate applied by the Unaffiliated Conversion Providers will be the rate given to ADR holders and (ii) Conversions may be managed at the discretion of the Issuer, meaning the Issuer may: (a) convert foreign currency independent of the Depositary and/or its Conversion Providers and/or (b) provide dividends or cash to the Depositary in US dollars at a conversion rate determined by the Issuer. (e) Multiple Days and Transactions: It is expressly agreed that the Depositary, or its Conversion Providers, may execute Conversions through multiple transactions, or over multiple days. 29. If the Settlement is approved, the Court will enter a judgment (“Order and Final Judgment”). The Order and Final Judgment will dismiss with prejudice the claims alleged in the Litigation against Defendant and pursuant to the Order and Final Judgment, without further action by anyone, upon the Effective Date of the Settlement, Plaintiffs and each member of the Class, on behalf of themselves and each of their respective heirs, executors, administrators, predecessors, successors, and assigns, in their capacities as such, shall be deemed to have, and by operation of law and of the judgment shall have, fully, finally and forever compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Claim (as defined below) against any of the Defendant Released Parties (as defined below), and shall forever be barred and enjoined from prosecuting any or all of the Released Claims against any of the Defendant Released Parties. 30. In addition, pursuant to the Order and Final Judgment, without further action by anyone, upon the Effective Date of the Settlement, Plaintiffs and each member of the Class, on behalf of themselves and each of their respective heirs, executors, administrators, predecessors, successors, and assigns, in their capacities as such, shall be deemed to have, and by operation of law and of the judgment shall have, fully, finally and forever compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Claim against the Unaffiliated Conversion Providers and any Issuer (as those terms are defined above in ¶ 28(a)), as well as their respective affiliates, officers, directors and employees, and shall forever be barred and enjoined from prosecuting any or all of the Released Claims against any of the Unaffiliated Conversion Providers and any Issuer, as well as their respective affiliates, officers, directors and employees. 31. “Released Claims” means all claims and causes of action of every nature and description, whether known or unknown (i.e., “Unknown Claims” as defined below), whether arising under federal, state, common or foreign law, whether class or individual in nature, that (a) Plaintiffs or any other member of the Class have asserted in any complaint filed in the Litigation (“Complaints”) or (b) Plaintiffs or any other member of the Class could have asserted in any forum that arise out of or are based upon the allegations set forth in the Complaints including claims related to all Depositary-sponsored ADRs. 7 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 18 of 35 “Released Claims” do not include claims arising out of, based upon, relating to, concerning, or in connection with the interpretation or enforcement of the terms of the Settlement. 32. “Defendant Released Parties” means the Depositary and its affiliates, officers, directors and employees. 33. “Unknown Claims” means any and all claims that any Plaintiff or any other Class Member does not know or suspect to exist in his, her, or its favor at the time of the release of the Released Claims, and any and all claims that Defendant does not know or suspect to exist in its favor at the time of the release of the Released Defendant Claims, which if known to him, her or it might have affected his, her or its decision(s) with respect to the Settlement, including, but not limited to, his, her or its decision to object or not to object to the Settlement or not to exclude himself, herself or itself from the Class. With respect to any and all Released Claims and Released Defendant Claims, the Parties stipulate and agree that, upon the Effective Date, each of the Plaintiffs and Defendant shall expressly waive, and each of the other Class Members shall be deemed to have, and by operation of the Order and Final Judgment or any Alternative Judgment shall have, expressly waived and relinquished any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or any other jurisdiction, or principle of common law that is similar, comparable, or equivalent to California Civil Code § 1542, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. Any Plaintiff or Class Member may hereafter discover facts, legal theories, or authorities in addition to or different from those which he, she, or it now knows or believes to be true with respect to the subject matter of the Released Claims, but each of the Plaintiffs shall expressly, fully, and forever settle and release, and each Class Member shall be deemed to have settled and released, and upon the Effective Date and by operation of the Order and Final Judgment or any Alternative Judgment shall have settled and released, fully, finally, and forever, any and all Released Claims, known or unknown, suspect or unsuspected, contingent or noncontingent, whether or not concealed or hidden, which have existed or will exist, upon any theory of law or equity, including, but not limited to, conduct which is negligent, reckless, intentional, with or without malice, or breach of any duty, law, or rule, without regard to the subsequent discovery or existence of such different or additional facts, legal theories, or authorities. Plaintiffs and Defendant acknowledge, and each of the Class Members shall be deemed by operation of law to have acknowledged, that the foregoing waiver was separately bargained for and a key element of the Settlement. 34. In addition, if the Settlement is approved, pursuant to the Order and Final Judgment, without further action by anyone, upon the Effective Date of the Settlement, Defendant shall be deemed to have, and by operation of law and of the judgment shall have, fully, finally and forever compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Defendant Claim (as defined below) against the Plaintiff Released Parties (as defined below), and shall forever be barred and enjoined from prosecuting any or all of the Released Defendant Claims against any of the Plaintiff Released Parties. 35. “Released Defendant Claims” means all claims and causes of action of every nature and description, whether known or unknown (i.e., “Unknown Claims” as defined below), whether arising under federal, state, common or foreign law, whether class or individual in nature, that arise out of or relate in any way to the institution, prosecution, or settlement of the claims against Defendant. “Released Defendant Claims” do not include claims arising out of, based upon, relating to, concerning, or in connection with the interpretation or enforcement of the terms of the Settlement. 36. “Plaintiff Released Parties” means Plaintiffs. 37. Please Note: The complete terms of the Settlement are set forth in the Stipulation which may be viewed on the website www.CitibankADRSettlement.com. How Do I Participate In The Settlement? What Do I Need To Do? 38. If you are a Damages Class Member who holds (or held) your eligible ADRs through a bank, broker or other nominee and are not listed on the records of the Depositary’s transfer agent (i.e., a Non-Registered Holder Damages Class Member) and you wish to be eligible to receive a payment from the proceeds of the Settlement, you must timely complete and return the Claim Form with adequate supporting documentation postmarked, or submitted online, no later than AUGUST 12, 2019. You can go to www.CitibankADRSettlement.com to submit a Claim Form. You can also obtain a Claim Form on the website, or you may request that a Claim Form be mailed to you by calling the Claims Administrator toll free at 1-866-680-6138 or by sending an email to the Claims Administrator at [email protected]. Please retain all records of your holdings in the eligible ADRs, as they may be needed to document your claim. If you are a Non-Registered Holder Damages Class Member and do not submit a timely and valid Claim Form, you will not be eligible to share in the Net Settlement Fund. 39. If you are a Damages Class Member who holds (or held) your eligible ADRs directly and are listed on the records of the Depositary’s transfer agent (i.e., a Registered Holder Damages Class Member) you do not have to take any further action in order to participate in the Settlement and be potentially eligible to receive a payment from the proceeds of the Settlement. If you are a Registered Holder Damages Class Member, you should receive/should have received a Post-Card Notice in the mail that contains a unique Claim Number and PIN. You can use this Claim Number and PIN to access information regarding the eligible ADRs you held and the cash distributions you received as a result of such holdings that was obtained from the Depositary’s transfer agent on the website, www.CitibankADRSettlement.com. Please Note: If you are a Registered 8 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 19 of 35 Holder Damages Class Member, your Recognized Claim and payment amount will be calculated pursuant to the information provided by the Depositary’s transfer agent. If the information regarding your holdings and distributions set forth on the website is incorrect or incomplete, you must notify the Claims Administrator (as set forth in ¶ 72 herein) immediately. If the Claims Administrator does not hear from you, they will assume the information provided by the Depositary’s transfer agent and set forth on the website is correct and complete and will use this information to calculate your Claim. 40. Damages Class Members who exclude themselves from the Class pursuant to ¶¶ 46-51 below, will not receive a payment from the Settlement proceeds. What Will Be My Share Of The Settlement Fund? 41. At this time, it is not possible to make a precise determination as to the amount of any payment that any individual Damages Class Member may receive from the Settlement. 42. Exhibit 1 to this Notice sets forth the Plan of Allocation for allocating the Net Settlement Fund among Authorized Recipients, as proposed by Plaintiffs and Lead Counsel. At the Final Approval Hearing, Lead Counsel will request the Court approve the Plan of Allocation. The Court may modify the Plan of Allocation, or approve a different plan of allocation, without further notice to the Class. 43. The Plan of Allocation describes the manner by which the Net Settlement Fund will be distributed to eligible Damages Class Members. In general, the Net Settlement Fund will be allocated to (i) Registered Holder Damages Class Members and (ii) Non-Registered Holder Damages Class Members who submit valid Claim Forms. The amount paid to each Authorized Recipient will depend on each Authorized Recipient’s calculated Recognized Claim, relative to the Recognized Claims of other Authorized Recipients. Because the Net Settlement Fund most likely will be less than the total losses alleged to have been suffered in the Litigation, an Authorized Recipient’s proportionate recovery most likely will be less than their alleged loss. 44. The tax treatment of any distribution varies based upon the recipient’s tax status and treatment of its investments. The tax treatment of any distribution from the Net Settlement Fund is the responsibility of each recipient. You should consult your tax advisor to determine the tax consequences, if any, of any distribution to you. When Will I Receive My Payment? 45. Payment is conditioned on several matters, including the Court’s approval of the Settlement and that approval becoming Final and no longer subject to any appeals. If the Court approves the Settlement and a plan of allocation, then payments to Authorized Recipients will be made after any appeals are resolved and after the completion of all Claims processing. Please be patient, as this process can take some time to complete. Can I Exclude Myself From The Class? 46. Yes. You may request to be excluded (also referred to as “opting-out”) from the Class. If you request exclusion, (a) you will not participate in any distribution of the Net Settlement Fund and you will not receive any part of the Settlement Amount; (b) you will not be bound by the terms of the Settlement, including the Releases, and you will retain any right to file your own lawsuit concerning the Released Claims; and (c) you will not be able to object to the Settlement. 47. In the event you wish to exclude yourself from the Class, you must submit a written Request for Exclusion, which must be received no later than June 7, 2019, to: Citibank ADR Settlement EXCLUSIONS c/o KCC Class Action Services 3301 Kerner Boulevard San Rafael, CA 94901 48. In order to be valid, your Request for Exclusion must set forth: (i) your name; (ii) your address; (iii) your telephone number; (iv) the identity (including quantity and dates held) of the ADRs listed in Appendix 1 that you held and the cash distributions you received per eligible ADR from January 1, 2006 to September 4, 2018, inclusive; and (v) a statement that you wish to be excluded from the Class in the Litigation. 49. To be effective, your Request for Exclusion must be received no later than June 7, 2019. Unless otherwise ordered by the Court, any Class Member who does not submit a timely and valid Request for Exclusion as provided herein shall be bound by the Settlement. Do not request exclusion if you wish to participate in the Settlement. 50. You cannot exclude yourself on the Settlement website, by telephone or by email. If you do not follow these procedures – including meeting the deadline for requesting exclusion set forth above – you will not be excluded from the Class, and you will be bound by all of the orders and judgments entered by the Court regarding the Settlement, including the release of claims. 9 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 20 of 35 51. Please Note: If you decide to exclude yourself from the Class, there is a risk that any lawsuit you may file to pursue claims alleged in the Litigation may be dismissed, including because the suit is not filed within the applicable time periods required for filing suit. The Depositary will have the right to assert any and all defenses it may have to any claims you seek to assert. Also, the Depositary may terminate the Settlement if potential Class Members who meet certain criteria exclude themselves from the Class. THE LAWYERS REPRESENTING YOU Do I Have A Lawyer In This Case? 52. Kessler Topaz Meltzer & Check, LLP is Lead Counsel for Plaintiffs and the Class in the Litigation. You will not be charged directly by Lead Counsel or any other firms representing Plaintiffs in this case. If you want to be represented by your own lawyer, you may hire one at your own expense. How Will The Lawyers Be Paid? 53. Lead Counsel, on behalf of Plaintiffs’ counsel, will apply to the Court for an award of attorneys’ fees and reimbursement of Litigation Expenses. Lead Counsel has fee-sharing agreements with additional counsel G. Chadd Mason, Esq. of Prevost, Shaff, Mason & Carns, PLLC (formerly of Mason Law Firm, PLC), 220 S. School Avenue, Fayetteville, AR 72701, and Amy C. Martin, Esq. of Amy C. Martin P.A. (formerly of Everett, Wales and Comstock), P.O. Box 765, Fayetteville, AR 72702, which provide that Lead Counsel will compensate these firms from the attorneys’ fees that Lead Counsel receives in this Litigation in amounts commensurate with those firms’ efforts in the Litigation. Lead Counsel’s application for attorneys’ fees will not exceed 33⅓% of the Settlement Fund plus reimbursement of Litigation Expenses not to exceed $800,000 incurred in connection with the prosecution and resolution of this Litigation. Lead Counsel’s application for attorneys’ fees and Litigation Expenses, which may include requests for Service Awards to Plaintiffs up to an aggregate amount of $25,000, will be filed by May 24, 2019, and the Court will consider this application at the Final Approval Hearing. A copy of Lead Counsel’s application for fees and expenses will be available for review at www.CitibankADRSettlement.com. Any award of attorneys’ fees and reimbursement of Litigation Expenses, including any Service Awards to Plaintiffs, will be paid from the Settlement Fund prior to allocation and payment to Authorized Recipients. Class Members are not personally liable for any such attorneys’ fees or expenses. 54. To date, neither Lead Counsel nor any other firms representing Plaintiffs have received any payment for their services in prosecuting this Litigation on behalf of the Class, nor have any counsel been reimbursed for their out-of- pocket expenses incurred in connection with litigating this Litigation. The attorneys’ fees requested by Lead Counsel will compensate counsel for their efforts in achieving the Settlement for the benefit of the Class and for their risk in undertaking this representation on a contingency basis. The Court will determine the actual amount of the award. 55. By following the procedures described in ¶¶ 56-62 below, you can tell the Court that you do not agree with the attorneys’ fees and expenses Lead Counsel intends to seek and ask the Court to deny its motion or limit the award. OBJECTIONS How Do I Tell The Court If I Do Not Like The Settlement? 56. Any Class Member may appear at the Final Approval Hearing and explain why he, she or it thinks the Settlement of the Litigation as embodied in the Stipulation should not be approved as fair, reasonable and adequate and why a judgment should not be entered thereon, why the attorneys’ fees and expenses of Plaintiffs’ Counsel should not be awarded, in whole or in part, or why Plaintiffs should not be awarded any Service Awards, in whole or in part. However, no Class Member shall be heard or entitled to contest these matters unless such Class Member has filed a written objection with the Court. 57. To object, you must send a letter or other written statement saying that you object to the Settlement, the Plan of Allocation, and/or Lead Counsel’s request for attorneys’ fees and Litigation Expenses (including Service Awards) in Merryman et al. v. Citigroup, Inc. et al., 1:15-cv-09185-CM-KNF. Be sure to include your name, address, telephone number, signature, and a full explanation of all reasons why you object to the Settlement. You must also include documents sufficient to prove your membership in the Class, including any of the ADRs listed on Appendix 1 that you held and the cash distributions you received as a result of such holdings during the relevant time period. 58. Your written objection must be filed with the Court, and served by mail upon the counsel listed below by no later than June 7, 2019: CLERK’S OFFICE LEAD COUNSEL DEFENDANT’S COUNSEL United States District Court Sharan Nirmul, Esq. Daniel M. Perry, Esq. Southern District of New York Kessler Topaz Meltzer Milbank LLP Clerk of the Court & Check, LLP 55 Hudson Yards Daniel Patrick Moynihan 280 King of Prussia Road New York, NY 10001 United States Courthouse Radnor, PA 19087 500 Pearl Street New York, NY 10007 10 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 21 of 35 59. You may file a written objection without having to appear at the Final Approval Hearing. You may not, however, appear at the Final Approval Hearing to present your objection unless you first file and serve a written objection in accordance with the procedures described above, unless the Court orders otherwise. 60. If you wish to be heard orally at the Final Approval Hearing, and if you file and serve a timely written objection as described above, you must also file a notice of appearance with the Clerk’s Office and serve it on Lead Counsel and Defendant’s Counsel at the addresses set forth above so that it is received on or before June 7, 2019. Persons who intend to object and desire to present evidence at the Final Approval Hearing must include in their written objection or notice of appearance the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the hearing. Such persons may be heard orally at the discretion of the Court. 61. You are not required to hire an attorney to represent you in making written objections to any aspect of the Settlement or in appearing at the Final Approval Hearing. However, if you decide to hire an attorney, it will be at your own expense, and that attorney must file a notice of appearance with the Court and serve it on Lead Counsel and Defendant’s Counsel at the addresses set forth above so that the notice is received on or before June 7, 2019. 62. UNLESS OTHERWISE ORDERED BY THE COURT, ANY CLASS MEMBER WHO DOES NOT OBJECT IN THE MANNER DESCRIBED HEREIN WILL BE DEEMED TO HAVE WAIVED ANY OBJECTION AND SHALL BE FOREVER FORECLOSED FROM MAKING ANY OBJECTION TO THE PROPOSED SETTLEMENT, THE PROPOSED PLAN OF ALLOCATION AND/OR LEAD COUNSEL’S REQUEST FOR ATTORNEYS’ FEES, LITIGATION EXPENSES, AND ANY SERVICE AWARDS. THE COURT’S FINAL APPROVAL HEARING When And Where Will The Court Decide Whether To Approve The Settlement? 63. The Court will hold a Final Approval Hearing at 10:00 a.m. on July 12, 2019, before the Honorable Colleen McMahon in Courtroom 24A of the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007. 64. IF YOU DO NOT WISH TO OBJECT TO THE SETTLEMENT, PLAN OF ALLOCATION OR THE REQUESTS FOR ATTORNEYS’ FEES AND LITIGATION EXPENSES (INCLUDING ANY SERVICE AWARDS), YOU NEED NOT ATTEND THE FINAL APPROVAL HEARING. 65. At the Final Approval Hearing, the Court will consider whether the proposed Settlement is fair, reasonable and adequate. If there are objections, the Court will consider them. At or after the hearing, the Court will decide whether to approve the Settlement. The Court will also consider any motions for attorneys’ fees, expenses of Plaintiffs’ counsel, and Service Awards for Plaintiffs, as well as the proposed Plan of Allocation. We do not know how long these decisions will take. Do I Have To Come To The Hearing? 66. No. Lead Counsel will answer any questions that the Court may have about the Settlement at the Final Approval Hearing. You are not required to attend the Final Approval Hearing but are welcome to come at your own expense. If you send an objection, you do not have to come to Court to discuss it. As long as you filed your written objection on time, it will be before the Court when the Court considers whether to approve the Settlement as fair, reasonable and adequate. You may also have your own lawyer attend the Final Approval Hearing at your expense, but such attendance is not mandatory. See ¶ 61 above. 67. The Final Approval Hearing may be rescheduled by the Court without further notice to the Class. If you wish to attend the Final Approval Hearing, you should confirm the date and time with Lead Counsel. May I Speak At The Hearing? 68. If you are a Class Member and you have filed a timely objection, and if you wish to speak, present evidence or present testimony at the Final Approval Hearing, you must state in your objection your intention to do so, and must identify any witnesses you intend to call or evidence you intend to present. See ¶ 60 above. IF YOU DO NOTHING What Happens If I Do Nothing At All? 69. If you are a member of the Class and do nothing and the Settlement is approved, you will be bound by the terms of the Settlement and you will be deemed to have released all Released Claims against all of the Defendant Released Parties. 70. If you are a Registered Holder Damages Class Member and do nothing, you will receive your pro rata payment from the Settlement as described in the Plan of Allocation attached hereto as Exhibit 1. The Claims Administrator will calculate your Recognized Claim using the information regarding your dividends/cash distributions provided by the Depositary’s transfer agent. However, if you are a Non-Registered Holder Damages Class Member and do nothing, you will not be eligible to receive a payment from the Settlement. If you are a Non-Registered Holder Damages Class Member you must submit a valid Claim Form to be eligible to receive a payment from the Settlement. 11 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 22 of 35 GETTING MORE INFORMATION How Do I Get More Information? 71. This Notice contains only a summary of the terms of the proposed Settlement. For more detailed information about the matters involved in this Litigation, you are referred to the papers on file in the Litigation, including the Stipulation, which may be inspected during regular office hours at the Office of the Clerk, United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007. Additionally, copies of the Stipulation, this Notice, the Claim Form, the proposed Order and Final Judgment, and any related orders entered by the Court are posted on the website maintained by the Claims Administrator, www.CitibankADRSettlement.com. 72. All inquiries concerning this Notice and the Claim Form, or requests for additional information, should be directed to: Citibank ADR Settlement c/o KCC Class Action Services P.O. Box 404077 Louisville, KY 40233-4077 1-866-680-6138 [email protected] Court-Authorized Claims Administrator and/or Sharan Nirmul, Esq. KESSLER TOPAZ MELTZER & CHECK, LLP 280 King of Prussia Road Radnor, PA 19087 (610) 667-7706 [email protected] Lead Counsel for the Class DO NOT CALL OR WRITE THE COURT, THE OFFICE OF THE CLERK OF THE COURT, DEFENDANT OR ITS COUNSEL REGARDING THIS NOTICE. Dated: September 4, 2018 By Order of the Court United States District Court Southern District of New York 12 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 23 of 35 APPENDIX 1 ISSUER CUSIP TICKER ABB Ltd. 000375204 ABB Advanced Semiconductor Engineering, Inc. 00756M404 ASX BHP Billiton Ltd 088606108 BHP British American Tobacco 110448107 BTI Compania Energetica de Minas Gerais – CEMIG (Preferred) 204409601 CIG Delhaize Group 29759W101 DEG Diageo PLC 25243Q205 DEO GDF Suez (n/k/a Engie) 36160B105 / 29286D105 GDFZY / ENGIY Imperial Tobacco Group PLC (n/k/a Imperial Brands plc) 453142101 / 45262P102 ITYBY / IMBBY KT Corp. (f/k/a Korea Telecom Corp.) 48268K101 KT Nestle S.A. 641069406 NSRGY Nokia 654902204 NOK POSCO (f/k/a Pohang Iron and Steel Co.) 693483109 PKX SK Telecom Co., Ltd. (f/k/a Korea Mobile 78440P108 SKM Telecommunications Corp.) Singapore Telecommunications Ltd. 82929R304 SGAPY Taiwan Semiconductor 874039100 TSM Tata Motors 876568502 TTM Telefonaktiebolaget LM Ericsson (Ericsson) 294821608 ERIC Telefonica S.A. (f/k/a Telefonica de España S.A.) 879382208 TEF Unilever PLC 904767704 UL WPP PLC 92933H101 WPP 13 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 24 of 35 EXHIBIT 1 PLAN OF ALLOCATION OF NET SETTLEMENT FUND The plan of allocation set forth below (“Plan of Allocation” or “Plan”) is the plan for allocating the Net Settlement Fund to Authorized Recipients that is being proposed by Plaintiffs and Lead Counsel. In accordance with the Settlement, the Net Settlement Fund will be allocated to (i) Registered Holder Damages Class Members and (ii) Non-Registered Holder Damages Class Members who submit valid Claim Forms. The Court may approve the below Plan, or modify it, without additional notice to the Class. Any order modifying the Plan will be posted on the website for the Settlement, www.CitibankADRSettlement.com. The objective of the Plan is to equitably distribute the Net Settlement Fund among as many Class Members as possible. The Plan is based on Plaintiffs’ view of the average annual margin per ADR that the Depositary retained on Conversions of ADR dividends and cash distributions as determined by Plaintiffs’ damages expert. The Depositary produced data concerning the Conversion rates, volumes and payable dates for the dividends and cash distributions for the ADRs listed in Appendix 1 to the Notice, as well the amount (if any) it retained for fourteen of those ADRs between January 1, 2007 and April 30, 2017. Utilizing this data, Plaintiffs’ damages expert calculated the average annual margin per ADR for each year from 2007 to 2016 and extrapolated the margins for 2006, 2017 and 2018 based on the overall average margin per ADR. The Depositary does not concede the accuracy of Plaintiffs’ damages expert’s calculation, or that there were any damages. The Plan is intended to be generally consistent with an assessment of, among other things, the damages that Plaintiffs and Lead Counsel believe could have been recovered for the claims asserted in the Litigation, and reflect Plaintiffs’ allegations that over the course of the relevant time period, Defendant, as depositary bank for the issuance of ADRs, systematically deducted impermissible fees for conducting Conversions from dividends and/or cash distributions issued by foreign companies, and owed to ADR holders. To the extent there are sufficient funds in the Net Settlement Fund, each Authorized Recipient will receive an amount equal to that Damages Class Member’s “Recognized Claim,” as described below. If, however, as expected, the amount in the Net Settlement Fund is not sufficient to permit payment of the total Recognized Claim of each Authorized Recipient, then each Authorized Recipient shall be paid the percentage of the Net Settlement Fund that each Authorized Recipient’s Recognized Claim bears to the total of the Recognized Claims of all Authorized Recipients – i.e., the Authorized Recipient’s pro rata share of the Net Settlement Fund. In no case shall the Plan of Allocation result in the payment of more than 100% of a Damages Class Member’s alleged damages (inclusive of alleged interest), as calculated by G. William Brown, Jr. in his expert report dated June 30, 2017 (the “Calculated Damages”). To the extent the Plan of Allocation would result in the payment of more than 100% of a Damages Class Member’s Calculated Damages, any amount in excess of 100% of the Calculated Damages (the “Excess Amount”) shall be reallocated to other Authorized Recipients. To the extent all Authorized Recipients have received 100% of their Calculated Damages, any Excess Amount shall be contributed to a nonsectarian charitable organization selected by the Court upon application by the Parties. A. Calculation of Recognized Claims Individuals and entities are potentially eligible to participate in the Settlement and the distribution of the Net Settlement Fund if they received cash distributions from the Depositary-sponsored ADRs listed in Appendix 1 to the Notice from January 1, 2006 to September 4, 2018, inclusive, and were damaged thereby. A “Recognized Loss Amount Per ADR Per Year” will be calculated according to the formula set forth below for each eligible ADR a Damages Class Member held during the relevant time period and for which they received a dividend and/or cash distribution. A Damages Class Member’s “Recognized Claim” shall be the sum of his, her or its Recognized Loss Amounts Per ADR Per Year. The formula for calculating a Damages Class Member’s Recognized Loss Amount Per ADR Per Year shall be as follows: Gross Amount of Dividends and Cash Calculated Average Margin for Distributions Received by the ADR (“Margin”) Per Year set X Damages Class Member for that forth in Table 1 below ADR Per Year 14 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 25 of 35 TABLE 1 Average Margin Per Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ABB Ltd. .30% .88% .16% .32% .25% .45% .44% .36% 0% .14% .19% .30% .30% (CUSIP: 000375204) Advanced Semiconductor 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Engineering, Inc. (CUSIP: 00756M404) BHP Billiton Ltd 0% 0% 0% .55% 0% 0% 0% 0% 0% 0% 0% 0% 0% (CUSIP: 088606108) British American Tobacco 0% 0% 0% .02% .02% .02% .03% .03% .02% .02% .03% .02% .02% (CUSIP: 110448107) Compania Energetica de Minas Gerais – .22% .22% .22% .22% .22% .22% .22% .22% .22% .22% .22% .22% .22% CEMIG (Preferred) (CUSIP: 204409601) Delhaize Group 0% 0% 0% .74% .07% .05% .66% .16% .01% .13% .08% 0% 0% (CUSIP: 29759W101) Diageo PLC 0% 0% 0% 0% 0% 0% 0% .13% .13% .10% .08% .11% .11% (CUSIP: 25243Q205) GDF Suez (CUSIPs: 36160B105/ 0% 0% 2.2% 1.1% .97% .17% .34% .47% .19% .04% 0% 0% 0% 29286D105) Imperial Tobacco Group PLC .27% .20% .23% .92% .62% .52% .19% .08% .04% .12% .17% 0% 0% (CUSIPs: 453142101/ 45262P102) KT Corp. (f/k/a Korea Telecom .24% .06% .58% .29% .04% .11% .28% .30% .18% 0% .28% .24% .24% Corp.) (CUSIP: 48268K101) Nestle S.A. .66% .88% .31% .88% .20% .88% .85% 1.1% .47% .20% .88% .66% .66% (CUSIP: 641069406) Nokia .74% 0% .74% .74% .74% .74% .74% 0% .74% .74% .74% .74% .74% (CUSIP: 654902204) POSCO (f/k/a Pohang Iron and 0% 0% 0% 0% 0% 0% 0% 0% .11% .16% .28% .18% .18% Steel Co.) (CUSIP: 693483109) SK Telecom Co., Ltd. (f/k/a Korea Mobile Telecommunications .22% .07% .22% .74% .07% .13% .28% .25% .27% .13% .28% .22% .22% Corp.) (CUSIP: 78440P108) Singapore Telecommunications Ltd. 0% .31% .23% .30% .19% .30% .25% .18% .01% .25% .13% .22% .22% (CUSIP: 82929R304) Taiwan Semiconductor .02% 0% 0% 0% 0% 0% .16% .03% 0% 0% 0% 0% 0% (CUSIP: 874039100) Tata Motors .80% .80% .80% .80% .80% .80% .80% .80% .80% 0% 0% 0% 0% (CUSIP: 876568502) Telefonaktiebolaget LM Ericsson .76% .95% .91% .94% .86% 1.16% .29% .01% 0% 0% 0% 0% 0% (Ericsson) (CUSIP: 294821608) Telefonica S.A. (f/k/a Telefonica de .93% .98% .86% 1.2% .87% 1.2% .55% .46% .98% .66% .74% .93% .93% España S.A.) (CUSIP: 879382208) Unilever PLC 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% (CUSIP: 904767704) WPP PLC 0% 0% 0% .36% .30% .40% .20% .45% 0% 0% 0% 0% 0% (CUSIP: 92933H101) 15 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 26 of 35 B. Distribution to Authorized Recipients Prior to the Effective Date, the Settlement Fund shall remain in an interest-bearing escrow account, except as otherwise provided in the Stipulation. After the Court enters the Order and Final Judgment and the Settlement becomes Final, the Claims Administrator shall distribute the Net Settlement Fund, which shall be done as promptly as possible pursuant to the Class Distribution Order. The Class Distribution Order shall not authorize payments to Authorized Recipients prior to the Effective Date. C. Additional Provisions As noted above, the Net Settlement Fund will be distributed to Authorized Recipients on a pro rata basis based on the relative size of their Recognized Claims. Specifically, a “Distribution Amount” will be calculated for each Authorized Recipient, which shall be the Authorized Recipient’s Recognized Claim divided by the total Recognized Claims of all Authorized Recipients, multiplied by the total amount in the Net Settlement Fund. If an Authorized Recipient’s Distribution Amount calculates to less than $1.00, it will not be included in the calculation and no distribution will be made to such Authorized Recipient. After the initial distribution of the Net Settlement Fund, the Claims Administrator shall make reasonable and diligent efforts to have Authorized Recipients cash their distribution checks. To the extent any monies remain in the fund nine (9) months after the initial distribution, if Lead Counsel, in consultation with the Claims Administrator, determines that it is cost- effective to do so, the Claims Administrator shall conduct a re-distribution of the funds remaining after payment of any unpaid fees and expenses incurred in administering the Settlement, including for such re-distribution, to Authorized Recipients who have cashed their initial distributions and who would receive at least $1.00 from such re-distribution. Additional re-distributions to Authorized Recipients who have cashed their prior checks and who would receive at least $1.00 on such additional re-distributions may occur thereafter if Lead Counsel, in consultation with the Claims Administrator, determines that additional re-distributions, after the deduction of any additional fees and expenses incurred in administering the Settlement, including for such re-distributions, would be cost-effective. At such time as it is determined that the re- distribution of funds remaining in the Net Settlement Fund is not cost-effective, Lead Counsel shall seek an order from the Court: (i) approving the recommendation that any further re-distribution is not cost effective or efficient and (ii) ordering the contribution of the Net Settlement Fund to a nonsectarian charitable organization selected by Plaintiffs and approved by the Court. Payment pursuant to the Plan of Allocation, or such other plan of allocation as may be approved by the Court, shall be conclusive against all Authorized Recipients. No Person shall have any claim against Plaintiffs, Plaintiffs’ counsel, Plaintiffs’ damages expert, Defendant, Defendant’s Counsel, or any of the other Plaintiff Released Parties or Defendant Released Parties, or the Claims Administrator or other agent designated by Lead Counsel arising from distributions made substantially in accordance with the Stipulation, the plan of allocation approved by the Court, or further Orders of the Court. Plaintiffs, Defendant, and their respective counsel, and all other Defendant Released Parties, shall have no responsibility or liability whatsoever for the investment or distribution of the Settlement Fund or the Net Settlement Fund; the plan of allocation; the determination, administration, calculation, or payment of any Claim or nonperformance of the Claims Administrator; the payment or withholding of Taxes and Tax Expenses or any losses incurred in connection therewith. 16 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 27 of 35 Exhibit C Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 28 of 35 Citibank ADR Settlement c/o KCC Class Action Services P.O. Box 404077 Louisville, KY 40233-4077 1-866-680-6138 [email protected] PROOF OF CLAIM AND RELEASE FORM IMPORTANT – If you hold (or held) the American Depositary Receipts (“ADRs”) covered by this Litigation directly through Citibank, N.A. (“Depositary”) and are listed on the records of the Depositary’s transfer agent (referred to herein as a “Registered Holder Damages Class Member”), you DO NOT need to complete and submit this Proof of Claim and Release Form (“Claim Form”) to be eligible to receive a share of the Net Settlement Fund in connection with the Settlement of this Litigation. If you are a Registered Holder Damages Class Member, you should receive/should have received a Post- Card Notice in the mail. The Post-Card Notice contains a Claim Number and PIN to access your holding and distribution information on the website www.CitibankADRSettlement.com. Please refer to paragraph 2 of the General Instructions in this Claim Form and the full Notice available on the website for more information. If you did NOT receive a Post-Card Notice containing a Claim Number and PIN, please follow the instructions below to submit a Claim Form. IF YOU HOLD (OR HELD) THE ADRS COVERED BY THIS LITIGATION THROUGH A BANK, BROKER OR OTHER NOMINEE AND ARE NOT LISTED ON THE RECORDS OF THE DEPOSITARY’S TRANSFER AGENT (REFERRED TO HEREIN AS A “NON- REGISTERED HOLDER DAMAGES CLASS MEMBER”), YOU MUST COMPLETE AND SIGN THIS CLAIM FORM AND MAIL IT BY PREPAID, FIRST-CLASS MAIL TO THE ABOVE ADDRESS, OR SUBMIT IT ONLINE AT WWW.CITIBANKADRSETTLEMENT.COM, POSTMARKED (OR RECEIVED) NO LATER THAN AUGUST 12, 2019 IN ORDER TO BE ELIGIBLE TO RECEIVE A SHARE OF THE NET SETTLEMENT FUND IN CONNECTION WITH THE SETTLEMENT OF THIS LITIGATION. FAILURE TO SUBMIT YOUR CLAIM FORM BY THE DATE SPECIFIED ABOVE WILL SUBJECT YOUR CLAIM TO REJECTION AND MAY PRECLUDE YOU FROM BEING ELIGIBLE TO RECEIVE ANY MONEY IN CONNECTION WITH THE SETTLEMENT. DO NOT MAIL OR DELIVER YOUR CLAIM FORM TO THE COURT, THE PARTIES, OR THEIR COUNSEL. SUBMIT YOUR CLAIM FORM ONLY TO THE CLAIMS ADMINISTRATOR AT THE ADDRESS SET FORTH ABOVE, OR ONLINE AT WWW.CITIBANKADRSETTLEMENT.COM. TABLE OF CONTENTS PAGE # PART I – CLAIMANT IDENTIFICATION 2 PART II – GENERAL INSTRUCTIONS 3 PART III – SCHEDULE OF CASH DISTRIBUTIONS PER ELIGIBLE DEPOSITARY-SPONSORED ADR PER YEAR 5 PART IV – RELEASE OF CLAIMS AND SIGNATURE 7 *CI2ONE* 1 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 29 of 35 Must Be Postmarked or Received No Later Than August 12, 2019 2ႈFLDO UNITED STATES DISTRICT COURT 2ႈFH FOR THE SOUTHERN DISTRICT OF NEW YORK CI2 Use Only Merryman et al. v. Citigroup, Inc. et al. Civil Action No. 1:5-cv-09185-CM-KNF PROOF OF CLAIM AND RELEASE Please Type or Print in the Boxes Below Do NOT use Red Ink, Pencil, or Staples PART I – CLAIMANT IDENTIFICATION Last Name M.I. First Name /DVW1DPH &R%HQH¿FLDO2ZQHU 0, )LUVW1DPH &R%HQH¿FLDO2ZQHU IRA Joint Tenancy Employee Individual Other______&RPSDQ\1DPH %HQH¿FLDO2ZQHU,I&ODLPDQWLVQRWDQ,QGLYLGXDO RU&XVWRGLDQ1DPHLIDQ,5$ (specify) 7UXVWHH$VVHW0DQDJHU1RPLQHH5HFRUG2ZQHU¶V1DPH ,I'LႇHUHQWIURP%HQH¿FLDO2ZQHU/LVWHG$ERYH Account#/Fund# (Not Necessary for Individual Filers) /DVW)RXU'LJLWVRI6RFLDO6HFXULW\1XPEHU 7D[SD\HU,GHQWL¿FDWLRQ1XPEHU or — Telephone Number (Primary Daytime) Telephone Number (Alternate) —— —— Email Address MAILING INFORMATION Address 1 Address 2 City State Zip Code Foreign Province Foreign Postal Code Foreign Country Name/Abbreviation ATP BE FL OP FOR CLAIMS FOR CLAIMS PROCESSING KE DR ME RE PROCESSING OB CB ONLY ICI EM ND SH / / ONLY *CI2TWO* 2 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 30 of 35 PART II – GENERAL INSTRUCTIONS 1. It is important that you completely read and understand the Notice of (I) Pendency of Class Action and Proposed Settlement; (II) Final Approval Hearing; and (III) Motion for Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”) available at www.CitibankADRSettlement.com, including the proposed Plan of Allocation of Net Settlement Fund attached as Exhibit 1 to WKH1RWLFH7KH1RWLFHGHVFULEHVWKHSURSRVHG6HWWOHPHQWKRZ&ODVV0HPEHUVDUHDႇHFWHGE\WKH6HWWOHPHQWDQGWKHPDQQHU in which the Net Settlement Fund will be distributed if the Settlement and Plan of Allocation are approved by the Court. The Notice DOVRFRQWDLQVWKHGH¿QLWLRQVRIPDQ\RIWKHGH¿QHGWHUPV ZKLFKDUHLQGLFDWHGE\LQLWLDOFDSLWDOOHWWHUV XVHGLQWKLV&ODLP)RUP%\ signing and submitting this Claim Form, you will be certifying that you have read and that you understand the Notice, including the terms of the Releases described therein and provided for herein. 2. Important - Please Note: Only Non-Registered Holder Damages Class Members, i.e., Damages Class Members who hold (or held) their eligible ADRs through a bank, broker or other nominee and are not listed on the records of the Depositary’s transfer agent must submit a Claim Form in order to be eligible to receive a payment from the Settlement. Those Damages Class Members who hold (or held) their eligible ADRs directly and are listed on the records of the Depositary’s transfer agent (i.e., Registered Holder Damages Class Members) do not need to submit a Claim Form in order to be eligible to receive a payment from the Settlement. Registered Holder Damages Class Members should receive/should have received a Post-Card Notice in the mail. The Post-Card Notice contains a unique Claim Number and PIN to access, on the website www.CitibankADRSettlement. com, information regarding the ADRs Registered Holder Damages Class Members held and the cash distributions they received during the relevant period as provided by the Depositary’s transfer agent, which information will be used to calculate their Claim. If you are unsure whether you are a Non-Registered Holder Damages Class Member or a Registered Holder Damages Class Member, please contact the Claims Administrator. 3. By submitting this Claim Form, you will be making a request to share in the proceeds of the Settlement described in the 1RWLFH,)<28$5(127$&/$660(0%(5 VHHGH¿QLWLRQRI&ODVVRQSDJH6 of the Notice, which sets forth who is included in and who is excluded from the Class), OR IF YOU, OR SOMEONE ACTING ON YOUR BEHALF, SUBMITTED A REQUEST FOR EXCLUSION FROM THE CLASS, DO NOT SUBMIT A CLAIM FORM. YOU MAY NOT, DIRECTLY OR INDIRECTLY, PARTICIPATE IN THE SETTLEMENT IF YOU ARE NOT A CLASS MEMBER. THUS, IF YOU ARE EXCLUDED FROM THE CLASS, ANY CLAIM FORM THAT YOU SUBMIT, OR THAT MAY BE SUBMITTED ON YOUR BEHALF, WILL NOT BE ACCEPTED. 4. Submission of this Claim Form does not guarantee that you will share in the proceeds of the Settlement. The distribution of the Net Settlement Fund will be governed by the Plan of Allocation set forth in the Notice, if it is approved by the Court, or by such other plan of allocation as the Court approves. 5. Use the Schedule of Cash Distributions Per Eligible Depositary-Sponsored ADR Per Year in Part III of this Claim Form to supply all required information regarding the cash distributions you received per year as a result of your holdings in the ADRs covered by the Litigation. Please provide all of the requested information. *CI2THREE* 3 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 31 of 35 10. By submitting a signed Claim Form, you will be swearing that you: (a) received the dividends/cash distributions you have listed in the Claim Form; or (b) are expressly authorized to act on behalf of the owner of the ADRs that received such dividends/cash distributions. 11. By submitting a signed Claim Form, you will be swearing to the truth of the statements contained therein and the genuineness of the documents attached thereto, subject to penalties of perjury under the laws of the United States of America. The making of false statements, or the submission of forged or fraudulent documentation, will result in the rejection of your Claim and may subject you to civil liability or criminal prosecution. 12. If the Court approves the Settlement, payments to eligible Authorized Recipients pursuant to the Plan of Allocation (or such other plan of allocation as the Court approves) will be made after any appeals are resolved, and after the completion of all Claims processing. The Claims process could take substantial time to complete fully and fairly. Please be patient. 13. PLEASE NOTE: As set forth in the Plan of Allocation, each Authorized Recipient shall receive his, her or its pro rata share of the Net Settlement Fund. If the prorated payment to any Authorized Recipient calculates to less than $1.00, it will not be included in the calculation and no distribution will be made to that Authorized Recipient. 14. If you have questions concerning the Claim Form, or need additional copies of the Claim Form or the Notice, you may contact the Claims Administrator, KCC Class Action Services, at the above address, by toll-free phone at 1-866-680-6138, or by email at [email protected], or you may download the documents from the website for the Settlement, www.CitibankADRSettlement.com. 15. NOTICE REGARDING ELECTRONIC FILES: Certain Claimants may request, or may be requested, to submit information UHJDUGLQJWKHLUWUDQVDFWLRQVLQHOHFWURQLF¿OHV7RREWDLQWKHPDQGDWRU\HOHFWURQLF¿OLQJUHTXLUHPHQWVDQG¿OHOD\RXW\RXPD\YLVLWWKH Settlement website at www.CitibankADRSettlement.comRU\RXPD\HPDLOWKH&ODLPV$GPLQLVWUDWRU¶VHOHFWURQLF¿OLQJGHSDUWPHQW DW1RPLQHHV#&LWLEDQN$'56HWWOHPHQWFRP$Q\¿OHQRWLQDFFRUGDQFHZLWKWKHUHTXLUHGHOHFWURQLF¿OLQJIRUPDWZLOOEHVXEMHFWWR UHMHFWLRQ1RHOHFWURQLF¿OHVZLOOEHFRQVLGHUHGWRKDYHEHHQSURSHUO\VXEPLWWHGXQOHVVWKH&ODLPV$GPLQLVWUDWRULVVXHVDQHPDLO DIWHUSURFHVVLQJ\RXU¿OHZLWK\RXUFODLPQXPEHUVDQGUHVSHFWLYHDFFRXQWLQIRUPDWLRQ'RQRWDVVXPHWKDW\RXU¿OHKDVEHHQ received or processed until you receive this email. If you do not receive such an email within 10 days of your submission, \RXVKRXOGFRQWDFWWKHHOHFWURQLF¿OLQJGHSDUWPHQWDW1RPLQHHV#&LWLEDQN$'56HWWOHPHQWFRPWRLQTXLUHDERXW\RXU¿OH DQGFRQ¿UPLWZDVUHFHLYHGDQGDFFHSWDEOH IMPORTANT: PLEASE NOTE YOUR CLAIM IS NOT DEEMED FILED UNTIL YOU RECEIVE AN ACKNOWLEDGEMENT POSTCARD. THE CLAIMS ADMINISTRATOR WILL ACKNOWLEDGE RECEIPT OF YOUR CLAIM FORM BY MAIL, WITHIN 60 DAYS. IF YOU DO NOT RECEIVE AN ACKNOWLEDGEMENT POSTCARD WITHIN 60 DAYS, PLEASE CALL THE CLAIMS ADMINISTRATOR TOLL FREE AT 1-866-680-6138. *CI2FOUR* 4 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 32 of 35 PART III – SCHEDULE OF CASH DISTRIBUTIONS PER ELIGIBLE DEPOSITARY-SPONSORED ADR PER YEAR Please be sure to include proper documentation with your Claim Form as described in detail in Part II – General Instructions, paragraph 6, above. $ 3OHDVH¿OOLQWKHWRWDOFDVKGLVWULEXWLRQV\RXUHFHLYHGIURP-DQXDU\WKURXJKSeptember 4, 2018 for each of the ADRs set forth below. Code Code ADR/CUSIP (To be entered below) ADR/CUSIP (To be entered below) ABB Ltd. ABBL Nokia NOKI (CUSIP: 000375204) (CUSIP: 654902204) Advanced Semiconductor ADVA POSCO (f/k/a Pohang Iron POSC Engineering, Inc. and Steel Co.) (CUSIP: 00756M404) (CUSIP: 693483109) BHP Billiton Ltd BHPB SK Telecom Co., Ltd. SKTE (CUSIP: 088606108) (f/k/a Korea Mobile Telecommunications Corp.) (CUSIP: 78440P108) British American Tobacco BRIT Singapore SING (CUSIP: 110448107) Telecommunications Ltd. (CUSIP: 82929R304) Compania Energetica de COMP Taiwan Semiconductor TAIW Minas Gerais –CEMIG (CUSIP: 874039100) (Preferred) (CUSIP: 204409601) Delhaize Group DELH Tata Motors TATA (CUSIP: 29759W101) (CUSIP: 876568502) Diageo PLC DIAG Telefonaktiebolaget LM TELL (CUSIP: 25243Q205) Ericsson (Ericsson) (CUSIP: 294821608) GDF Suez (n/k/a Engie) GDFS Telefonica S.A. (f/k/a TELS (CUSIPs: 36160B105 / Telefonica de España S.A.) 29286D105) (CUSIP: 879382208) Imperial Tobacco Group PLC IMPE Unilever PLC UNIL (n/k/a Imperial Brands plc) (CUSIP: 904767704) (CUSIPs: 453142101 / 45262P102) KT Corp. (f/k/a Korea KTCO WPP PLC WPPP Telecom Corp.) (CUSIP: 92933H101) (CUSIP: 48268K101) Nestle S.A. NEST (CUSIP: 641069406) *CI2FIVE* 5 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 33 of 35 2006 2007 2008 $ $ $ . . . 2009 2010 2011 Code: $ $ $ . . . 2012 2013 2014 $ $ $ . . . &RQ¿UP3URRI(QFORVHG 2015 2016 2017 Yes No $ $ $ . . . Jan. 1, 2018 through September 4, 2018 $ . 2006 2007 2008 $ $ $ . . . 2009 2010 2011 Code: $ $ $ . . . 2012 2013 2014 $ $ $ . . . &RQ¿UP3URRI(QFORVHG 2015 2016 2017 Yes No $ $ $ . . . Jan. 1, 2018 through September 4, 2018 $ . 2006 2007 2008 $ $ $ . . . 2009 2010 2011 Code: $ $ $ . . . 2012 2013 2014 $ $ $ . . . &RQ¿UP3URRI(QFORVHG 2015 2016 2017 Yes No $ $ $ . . . Jan. 1, 2018 through September 4, 2018 $ . IF YOU NEED ADDITIONAL SPACE TO LIST YOUR TRANSACTIONS PLEASE PHOTOCOPY THIS PAGE, WRITE YOUR NAME ON THE COPY AND FILL THIS CIRCLE: IF YOU DO NOT FILL IN THIS CIRCLE THESE ADDITIONAL PAGES MAY NOT BE REVIEWED. *CI2SIX* 6 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 34 of 35 PART IV - RELEASE OF CLAIMS AND SIGNATURE YOU MUST READ THE RELEASE AND CERTIFICATION BELOW AND SIGN ON PAGE 8 OF THIS CLAIM FORM. , ZH KHUHE\DFNQRZOHGJHWKDWSXUVXDQWWRWKHWHUPVVHWIRUWKLQWKH6WLSXODWLRQZLWKRXWIXUWKHUDFWLRQE\DQ\RQHXSRQWKH(ႇHFWLYH Date of the Settlement, I (we), on behalf of myself (ourselves) and my (our) respective heirs, executors, administrators, predecessors, successors, and assigns, in their capacities as such, shall be deemed to have, and by operation of law and of the judgment shall have, IXOO\¿QDOO\DQGIRUHYHUFRPSURPLVHGVHWWOHGUHOHDVHGUHVROYHGUHOLQTXLVKHGZDLYHGDQGGLVFKDUJHGHDFKDQGHYHU\5HOHDVHG Claim against any of the Defendant Released Parties, and shall forever be barred and enjoined from prosecuting any or all of the Released Claims against any of the Defendant Released Parties. , ZH KHUHE\DFNQRZOHGJHWKDWSXUVXDQWWRWKHWHUPVVHWIRUWKLQWKH6WLSXODWLRQZLWKRXWIXUWKHUDFWLRQE\DQ\RQHXSRQWKH(ႇHFWLYH Date of the Settlement, I (we), on behalf of myself (ourselves) and my (our) respective heirs, executors, administrators, predecessors, successors, and assigns, in their capacities as such, shall be deemed to have, and by operation of law and of the judgment shall have, IXOO\¿QDOO\DQGIRUHYHUFRPSURPLVHGVHWWOHGUHOHDVHGUHVROYHGUHOLQTXLVKHGZDLYHGDQGGLVFKDUJHGHDFKDQGHYHU\5HOHDVHG &ODLPDJDLQVWWKH8QDႈOLDWHG&RQYHUVLRQ3URYLGHUVDQGDQ\,VVXHU DVWKRVHWHUPVDUHGH¿QHGLQ D G RIWKH6WLSXODWLRQ DV ZHOODVWKHLUUHVSHFWLYHDႈOLDWHVRႈFHUVGLUHFWRUVDQGHPSOR\HHVDQGVKDOOIRUHYHUEHEDUUHGDQGHQMRLQHGIURPSURVHFXWLQJDQ\RU DOORIWKH5HOHDVHG&ODLPVDJDLQVWDQ\RIWKH8QDႈOLDWHG&RQYHUVLRQ3URYLGHUVDQGDQ\,VVXHUDVZHOODVWKHLUUHVSHFWLYHDႈOLDWHV RႈFHUVGLUHFWRUVDQGHPSOR\HHV CERTIFICATION %\ VLJQLQJ DQG VXEPLWWLQJ WKLV &ODLP )RUP WKH &ODLPDQW V RU WKH SHUVRQ V ZKR UHSUHVHQW V WKH &ODLPDQW V FHUWL¿HV FHUWLI\ as follows: 1. that I (we) have read and understand the contents of the Notice and this Claim Form, including the Releases provided for in the Settlement and the terms of the Plan of Allocation; WKDWWKH&ODLPDQW V LVD DUH &ODVV0HPEHU V DVGH¿QHGLQWKH1RWLFHDQGLV DUH QRWH[FOXGHGE\GH¿QLWLRQIURPWKH Class as set forth in the Notice; 3. that the Claimant has not submitted a request for exclusion from the Class; WKDW, ZH UHFHLYHGWKHFDVKGLVWULEXWLRQVLGHQWL¿HGLQWKH&ODLP)RUPDQGKDYHQRWDVVLJQHGWKHFODLPDJDLQVWWKH'HIHQGDQW or any of the other Defendant Released Parties to another, or that, in signing and submitting this Claim Form, I (we) have the authority to act on behalf of the owner(s) thereof; WKDWWKH&ODLPDQW V KDV KDYH QRWVXEPLWWHGDQ\RWKHUFODLPFRYHULQJWKHVDPHFDVKGLVWULEXWLRQVLGHQWL¿HGLQWKH&ODLP Form and knows (know) of no other person having done so on the Claimant’s (Claimants’) behalf; 6. that the Claimant(s) submit(s) to the jurisdiction of the Court with respect to Claimant’s (Claimants’) claim and for purposes of enforcing the Releases set forth herein; 7. that I (we) agree to furnish such additional information with respect to this Claim Form as Lead Counsel, the Claims Administrator or the Court may require; 8. that the Claimant(s) waive(s) the right to trial by jury, to the extent it exists, and agree(s) to the Court’s summary disposition of the determination of the validity or amount of the claim made by this Claim Form; 9. that I (we) acknowledge that the Claimant(s) will be bound by and subject to the terms of any judgment(s) that may be entered in the Litigation; and 10. that the Claimant(s) is (are) NOT subject to backup withholding under the provisions of Section 3406(a)(1)(C) of the Internal Revenue Code because (a) the Claimant(s) is (are) exempt from backup withholding or (b) the Claimant(s) has (have) not been QRWL¿HGE\WKH,56WKDWKHVKHLWLVVXEMHFWWREDFNXSZLWKKROGLQJDVDUHVXOWRIDIDLOXUHWRUHSRUWDOOLQWHUHVWRUGLYLGHQGVRU F WKH ,56KDVQRWL¿HGWKH&ODLPDQW V WKDWKHVKHLWLVQRORQJHUVXEMHFWWREDFNXSZLWKKROGLQJ,IWKH,56KDVQRWL¿HGWKH&ODLPDQW V that he/she/it is subject to backup withholding, please strike out the language in the preceding sentence indicating that the FODLPLVQRWVXEMHFWWREDFNXSZLWKKROGLQJLQWKHFHUWL¿FDWLRQDERYH *CI2SEVEN* 7 Case 1:15-cv-09185-CM-KNF Document 154-1 Filed 05/24/19 Page 35 of 35 UNDER THE PENALTIES OF PERJURY, I (WE) CERTIFY THAT ALL OF THE INFORMATION PROVIDED BY ME (US) ON THIS CLAIM FORM IS TRUE, CORRECT, AND COMPLETE, AND THAT THE DOCUMENTS SUBMITTED HEREWITH ARE TRUE AND CORRECT COPIES OF WHAT THEY PURPORT TO BE. Signature of Claimant Date (mm/dd/yyyy) Print Name Signature of Joint Claimant, if any Date (mm/dd/yyyy) Print Name If the Claimant is other than an individual, or is not the person completing this form, the following also must be provided: Signature of person signing on behalf of Claimant Date (mm/dd/yyyy) Print Name Capacity of person signing on behalf of Claimant, if other than an individual, e.g., executor, president, trustee, custodian, etc. (Must provide evidence of authority to act on behalf of Claimant – see paragraph 9 on page 3 of this Claim Form.) REMINDER CHECKLIST 3OHDVHVLJQWKHDERYH5HOHDVHDQGFHUWL¿FDWLRQ,IWKLV&ODLP)RUPLVEHLQJPDGHRQEHKDOIRIMRLQW&ODLPDQWVWKHQERWKPXVWVLJQ 2. Remember to attach only copies of acceptable supporting documentation as these documents will not be returned to you. 3. Please do not highlight any portion of the Claim Form or any supporting documents. 4. Keep copies of the completed Claim Form and documentation for your own records. 7KH&ODLPV$GPLQLVWUDWRUZLOODFNQRZOHGJHUHFHLSWRI\RXU&ODLP)RUPE\PDLOZLWKLQGD\V *CI2EIGHT* 8 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 1 of 158 EXHIBIT 2 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 2 of 158 UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK BENJAMIN MICHAEL MERRYMAN, AMY WHITAKER MERRYMAN TRUST, AND B MERRYMAN AND A MERRYMAN 4TH GENERATION REMAINDER TRUST, individually and on behalf of all others Civil Action No. 1:15-cv-09185-CM-KNF similarly situated, Plaintiffs, V. CITIGROUP, INC., CITIBANK, N.A., and CITIGROUP GLOBAL MARKETS INC., Defendants. DECLARATION OF JEANNE C. FINEGAN, APR CONCERNING IMPLEMENTATION OF NOTICE TO CLASS MEMBERS THROUGH MULTI-MEDIA NOTICE PROGRAM INTRODUCTION 1. I am President and Chief Media Officer of HF Media, LLC ("HF Media"), a division of Heffler Claims Group LLC ("Heffler"). This Declaration is based upon my personal knowledge as well as information provided to me by my associates and staff, including information reasonably relied upon in the fields of advertising media and communications. 2. Pursuant to the Order Approving Modifications to Notice Plan and Schedule for Approval of Settlement ("Notice Modification Order"), ECF No. 145 dated February 14, 2019, p. 3, my firm, HF Media, was retained by Lead Counsel to supervise and administer the multi-media notice Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 3 of 158 program in connection with the Settlement ("Multi-Media Notice Program"). 1 3. I submit this Declaration in order to provide the Court and the Parties to the Litigation a report regarding the successful implementation of the Multi-Media Notice Program, i.e., the portion of the Court-approved notice program for the Settlement conducted via print, online and social media, as well as the overall reach as it relates specifically to the Multi-Media Notice Program. 4. As described more fully below, the Multi-Media Notice Program was successfully and timely implemented. 5. In compliance with the Court's Notice Modification Order, the Multi-Media Notice Program commenced on February 22, 2019 and was substantially completed by May 17, 2019. The Multi-Media Notice Program consisted of notice via direct mail to Registered Holder Damages Class Members and media, including print, highly targeted Internet banner ads and social media. The Multi-Media Notice Program, as implemented, indeed, exceeded our original projections and reached: 1) 94% of stock owners over the age of 35 with a household income ("HHI") of $150k+ (with an average frequency of 10.7 times); 2) 90% of stock owners over the age of35 with a HHI of$100k+ (with an average frequency of 6.4 times); and 3) 84% of stock owners, regardless of age or income (with an average frequency of 5.8 times).2 6. Importantly, the successful implementation of the Multi-Media Notice Program is underscored by Class Member response, where as of May 24, 2019, a total of 69,527 users have visited the Settlement websites with over 77,476 sessions and over 121,146 page views.3 1 All capitalized terms used herein and not otherwise defined have the meanings set fo11h in the Notice Morlificcition Order. 2 As set fo11h in my Declaration previously filed with the Court on January 31, 2019 (ECF No. 155-2), I estimated that: ( 1) 91 percent of stock owners over 3 5 with a HHI of$ l 50k+ would be reached, on average, 6 times; (2) 87% of stock owners over 35 with a HHI of$100k+ would be reached, on average, 4.2 times; and (3) 83% of stock owners, regardless of age or income, would be reached, on average, 4 times. 3 Thi~ u~er ~tafotic, prnviJi;;J Lu 11tl: by Kurl/.11rwr Cm:,ou Consultants LLC ("KCC"), includes 011ly Cltl users on the www.adrfxscttlcmcnt.com landing page and users who specifically typed i,, tlr~ www.citibankadrsettlement.com website address prominently displayed in the Summary Notice published in magazines and newspapers. 2 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 4 of 158 QUALIFICATIONS 7. A comprehensive description of my credentials and experience that qualify me to provide an expert opinion on the adequacy of the class action notice program in this matter was included in my Declaration previously filed with this Court on January 31, 20l9. ECF No. 155-2. In summary, I have served as an expert directly responsible for the design and implementation of hundreds of class action notice programs, including Federal Trade Commission Enforcement actions, some of which are the largest and most complex programs ever implemented in both the United States and in Canada. 8. I was extensively involved as a lead author for "Guidelines and Best Practices Implementing 2018 Amendments to Rule 23 Class Action Settlement Provisions" published by Duke University School of Law. Also, I am a member of the Board of Directors for the Alliance for Audited Media. 9. My work includes a wide range of class actions and regulatory and consumer matters, including product liability, construction defect, antitrust, asbestos, medical, pharmaceutical, human rights, civil rights, telecommunications, media, environmental, securities, banking, insurance and bankruptcy. 10. Additionally, I have been at the forefront of modern notice, including plain language as noted in a RAND study4, and importantly, I was the first notice expert to integrate digital media and social media into court-approved legal notice programs. My recent work includes: • Chapman v. Tristar Products, Case No. l:16-cv-1114, JSG (N.D. Ohio 2018); • Cook et. al v. Rockwell International Corp. and the Dow Chemical Co., Case No. l 4- md-02562-R WS (E.D. Mo. 2016); and • In re: TracFone Unlimited Service Plan Litigation, Case No. C-13-3440 EMC (N.D. Cal. 2015). 11. In evaluating the adequacy and effectiveness of my notice programs, courts have repeatedly recognized my work as an expert. For example, in: Carter v Forjas Taurus S.S., Taurus International Manufacturing, Inc., Case No. 1: 13- CV-24583 PAS (S.D. Fla. 2016), the Honorable Patricia Seitz, in her Final Order and 4 Deborah R. Hensler et al., CLASS ACTION DILEMMAS, PURSUING PUBLIC GOALS FOR PRIVATE GAIN. RAND (2000). 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 5 of 158 Judgment Granting Plaintiffs' Motion for Final Approval of Class Action Settlement, dated July 22, 2016, stated: "The Court considered the extensive experience of Jeanne C. Finegan and the notice program she developed. ... There is no national firearms registry and Taurus sale records do not provide names and addresses ofthe ultimate purchasers ... Thus the form and method used for notifying Class Members of the terms of the Settlement was the best notice practicable . ... The court-approved notice plan used peer-accepted national research to identify the optimal traditional, online, mobile and social media platforms to reach the Settlement Class Members. " Additionally, in the January 20, 2016, Transcript of Class Notice Hearing, p. 5, Judge Seitz stated: "I would like to compliment Ms. Finegan and her company because I was quite impressed with the scope and the effort of communicating with the Class. " 12. In In Re: Blue Buffalo Company, Ltd., Marketing and Sales Practices Litigation, Case No. 4:14-MD-2562 RWS (E.D. Mo. 2015), the Honorable Rodney Sippel, during the hearing for final approval of the settlement (Hearing for Final Approval, May 19, 2016 transcript p. 49), said: "It is my finding that notice was sufficiently provided to class members in the manner directed in my preliminary approval order and that notice met all applicable requirements of due process and any other applicable law and considerations. " 13. A comprehensive description of my credentials is attached as Exhibit A. NOTICE PROGRAM SUMMARY 14. In compliance with the Court's Preliminary Approval Order and Notice Modification Order, the notice program for this matter included the following components: • Direct Mail via Postcard Notice to all Registered Holder Damages Class Members listed in the records of Citi' s transfer agent; • Publication of a short form notice (the "Publication Notice" or "Summary Notice") in seven (7) general circulation consumer magazines; • Publication of the Publication Notice two (2) tunes in three (J) nationally circulated ut.:w'.'.lpupt.:rs; • Banner ads in specialty investment e-newsletters; 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 6 of 158 • Online and cross-device display banner advertising specifically targeted to Class Members over an 82-day period; a. Ads served directly to potential Class Members with known addresses via cutting-edge WIFI/IP address matching technology; b. Online banner ads appearing on a custom whitelist of approximately 4,000 pre vetted websites, including: i. 43 Business Journal websites; 11. A custom whitelist of approximately 140 investment websites; u1. A custom whitelist of approximately 350 local market and top-tier news websites; and iv. Online banner ads appearing on the Wall Street Journal site; c. Search words and terms on Google AdWords; d. Social media ads through Facebook, Instagram and Linkedln; e. Transmittal of the Publication Notice in the form of a press release over PR Newswire's USl Newslines with additional targeting to finance influencers; f. An informational Settlement Website on which the long-form Notice and other important Court documents are posted; g. A general ADR FX settlement website developed to serve as a landing page for the online banner ads; and h. A toll-free information line where Class Members can call 24/7 for more information about the Settlement, including important dates and deadlines, and to request to speak to a live operator during regular business hours. MULTI-MEDIA NOTICE PROGRAM ELEMENTS SUMMARY 15. KCC was retained by Lead Counsel as the Claims Administrator for the Settlement and was responsible for providing mailed notice (via postcard) to the Registered Holder Damages Class Members identified in Citi's transfer records and establishing the websites and toll-free information line. KCC is also responsible for processing the claims received for the Settlement. KCC's efforts are detailed in the Declaration of Justin Hughes which is being submitted, along with this Declaration, with Plaintiffs' settlement submission. 16. My firm, HF Media, was retained by Lead Counsel pursuant to the Court's Notice 5 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 7 of 158 Modification Order, to conduct the Multi-Media Notice Program for the Settlement. The Multi Media Notice Program is detailed below. MEDIA OUTREACH - PUBLICATIONS MAGAZINES 17. The magazines below were selected for the Multi-Media Notice Program in this matter based on media research data provided by GfK Mediamark Research and Intelligence LLC ("MRI"), which identified the magazines with the highest coverage and index5 against the target audience (i.e., the Class) characteristics. 18. AARP Bulletin covers news and policy that meets the needs of adults 50+ with information written just for them. AARP Bulletin's circulation is 23,000,000. A one-third page, black and white Publication Notice was published once in the national edition of this publication on May 5, 2019. 19. Money Magazine covers finance topics ranging from investing, saving, retirement and taxes to family finance issues like paying for college, credit, career and home improvement. Money's circulation is 1,580,000. A one-half page, black and white Publication Notice was published once in this magazine on April 19, 2019. 20. National Geographic is the flagship magazine of the National Geographic Society, which chronicles exploration and adventure, as well as changes that impact life on Earth. Editorial coverage encompasses people and places of the world, with an emphasis on human involvement in a changing universe. National Geographic has a circulation of 2,943,000. A one-half page, black and white Publication Notice was published once in the national edition of this magazine on April 30, 2019. 21. People Magazine is a general circulation magazine reporting on entertainment. People Magazine reports a circulation of 3,418,000. A one-half page, black and white Publication Notice was published once in the national edition of this magazine on March 22, 2019. 22. Sports Illustrated covers the world of sports through unparalleled access, emotional storytelling and in-depth reporting. Sports Jllustrated's circulation is 2,759,000. A one-half page, 3 Index is a media metric that descnbes a target audience's inclination to use a given outlet. An index over 100 suggests a target population's inclination to use a medium to a greater degree than the rest of the population. For example, an index of 157 would mean that the target is 57 percent more likely than the rest of the population to use a medium. 6 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 8 of 158 black and white Publication Notice was published once in this magazine on April 4, 2019. 23. Time Magazine covers issues and events that define and impact our time. Time Magazine's circulation is 2,321,000. A one-half page, black and white Publication Notice was published once in this magazine on April 5, 2019. 24. Travel + Leisure reaches sophisticated travelers and features immersive, inspiring travel lifestyle content. Travel + Leisure reports a circulation of 953,000. A one-half page, black and white Publication Notice was published once in the national edition of this magazine on April 19, 2019. 25. In total the magazines selected for this Multi-Media Notice Program have a combined circulation of36,976,000 with more than 138,000,000 readers.6 26. Attached as Exhibit Bare tear sheets of the published Summary Notice in these magazines. SPECIALTY INVESTMENT AND NATIONALLY CIRCULATED NEWSPAPERS 27. Investor's Business Daily provides exclusive stock lists, investing data, stock market research, education and the latest financial and business news to help investors make more money in the stock market. IBD's circulation is 106,000. A 1/6 page, black and white Publication Notice was published twice in this newspaper on March 11, 2019 and March 25, 2019. 28. The Wall Street Journal is distributed nationally and provides news and information on stock and business. The WSJ's circulation is 2,069,000. A 1/6 page, black and white Publication Notice was published twice in this newspaper on March 11, 2019 and March 25, 2019. 29. The New York Times is distributed nationally and provides news and information on stock and business. The NYT's circulation is 510,000. A 1/6 page, black and white Publication Notice was published twice in this newspaper on March 11, 2019 and March 25, 2019. 30. Attached as Exhibit C are tear sheets of the published Summary Notice in these newspapers. E-NEWSLETTERS 31. Further, the Multi-Media Notice Program was enhanced through e-newsletter distribution 6 Each magazine has a pass-along factor. These are readers in addition to the subscriber who read a publication. For example, Sports Illustrated has a circulation of2,759,000 and a pass along factor of 5.45 to deliver more than 15,000,000 readers. 7 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 9 of 158 with one insertion in the Wall Street Journal Markets, which has a circulation of 154,000 and twenty one7 insertions in Investor's Rusiness Daily Market Prep, which has a circulation of 91,000. The e-newsletter was published on March 20, 2019 in Wall Street Journal Markets and March 18, 2019 through March 22, 2019 and April 1, 2019 through April 7, 2019 in Investor's Business Daily Market Prep. 32. Attached as Exhibit Dare copies of the hanner ads published in thee-newsletters. MEDIA OUTREACH - INTERNET 33. Internet advertising was a particularly helpful method of providing notice in this case, given that according to MRI, nearly 98 percent of the target audience is online. 34. In total, over 212 million validated online impressions were served across a whitelist8 of approximately 4,000 pre-vetted websites, multiple exchanges, and the social media platforms Facebook, Instagram and Linkedin. We also used retargeting9 to provide additional reminders for those who expressed interest in the ads. 35. Our media outreach included banner ads on local Business Journal websites and The Wall Street Journal online, as well as top-tier national news and local news websites. Online banner ads were served across multiple devices including desktop, tablet and mobile devices. 36. Additionally, we served banner ads via WIFI/IP address targeting to a potential Class Member list consisting of 1,543,188 unique address records provided to us by KCC. These address records were provided to KCC by nominees in response to the nominee outreach conducted by KCC early in the notice program. 37. The WIFI/IP address targeting was done by mapping the physical addresses provided to the WIFI/IP address( es) in use at that physical location. If a target location's WIFI/IP address was available, that was considered a "match." Here, we matched 85.7% of the physical addresses received from nominees to WIFI/IP addresses. The same list of physical addresses was uploaded 7 HF Media planned to run eleven insertions in Investor's Business Daily Market Prep. Due to publisher error, two insertions were missed. However, HF Media negotiated a make-good on the error which resulted in an additional IO bonus insertions at no extra charge. 8 A whitelist is a custom list of acceptable websites where ad content may be served. Creating a whitelist helps lo mitigate ad fraud, ensure ads will be served in relevant digital environments to the target audience and helps to ensure tfo1t ;:irls will not appear next to offensive or objectionable content. 9 Retargeting is an online reminder ad. Herc, HF Media served additional ads to people on Facebuuk and lnstagram who engaged with our ads, either by clicking or commenting on them. 8 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 10 of 158 into Facebook's custom audience tool, allowing us to directly target and serve ads to a Facebook user when they have a Facebook or Instagram account where their address is publicly available. 38. The online banner ads utilized in the media outreach provided information for visitors to self-identify as potential Class Members, allowing them to "click" on the banner ad and link directly to the "landing page" website (www.ADRFXSettlement.com), with a further link to the Settlement Website for more detailed information regarding the Settlement, important dates and deadlines, downloadable copies of the long-form Notice, Claim Form and other relevant documents, and the ability to submit a Claim Form online. 39. To further enhance the Multi-Media Notice Program, HF Media employed Google AdWords keyword search terms. Accordingly, when identified target phrases and keywords were used in a search on Google's search engine, a link to the Settlement website appeared on the search result page. Representative key terms included, but were not limited to: Citi ADR Settlement, ADR Settlement and ADR class action, among others. 40. Attached as Exhibit E are examples of the banner ads. SOCIAL MEDIA 41. The Multi-Media Notice Program also included the social media platforms Facebook, Instagram and Linkedln. On Facebook and Instagram, targeting included those who liked or followed investment pages such as Motley Fool, Investing.com, MarketWatch, Morning Star, Seeking Alpha, The Street, the Wall Street Journal, Yahoo! Finance, Bloomberg, Financial Times and others in addition to the potential Class Member matching described above. On Linkedln, targeting included individuals who are in top management positions in companies with 51 or more employees. 42. Attached as Exhibit F are copies of the social media ads. PRESS RELEASE 43. The Publication Notice was also issued across PR Newswire's USl Newslines with additional targeting to finance influencers on February 22, 2019. My staff and I monitored various media channels for subsequent news articles that mentioned our press release and identified 157 various media pick-ups. 44. Attached as Exhibit G is a copy of the pick-up report. 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 11 of 158 SETTLEMENT WEBSITE AND TOLL-FREE INFORMATION LINE 45. The Court-authorized Claims Administrator, KCC, maintains the Settlement Website. The Settlement Website is an important componenl of Lhe no lice program for the Settlement as it allows potential Class Members to get information about the Settlement, obtain a copy of the detailed long-form Notice, and/or submit a Claim Form. 46. I am informed by the Claims Administrator that the Settlement Website was optimized for mobile visitors so that information loads on their mobile device quickly. The Settlement Website address was prominently displayed in the Publication Notices, as well as the Postcard Notices mailed to Registered Holder Damages Class Members. KCC has informed me that, as of May 24, 2019, a total of 69,527 users visited the Settlement websites with over 77,476 sessions and over 121, 146 page views. 47. I am also informed by KCC that, as of May 24, 2019, the IVR has received a total of 5,692 calls. CONCLUSION 48. Evidence for the successful response of this notice program is found in the visitor traffic to the websites and to the call center. In my opinion, the robust outreach efforts described above reflect a particularly appropriate, highly targeted and contemporary way to employ notice to the Class in this matter, and in particular, the Non-Registered Holder Damages Class Members and Current Holder Class Members who did not receive direct mailed notice. Importantly, these outreach efforts are consistent with the flexibility of notice provided in Rule 23. 49. Through the Multi-Media Notice Program detailed above, an estimated 94 percent of targeted Class Members were reached, on average, 10.7 times. In my experience, this is an excellent result. 50. Moreover, in my opinion, the efforts used in this Multi-Media Notice Program were of the highest modern communication standards, embraced by FRCP Rule 23, and were reasonably calculated to provide notice that is not only consistent, but exceeds best practicable court approved notice programs in similar matters which are consistent with the Federal Judicial Center's g,uidclim::, cu11ccrni11g appropriate reach . .', l. l declare under the penalty of perjury, under the laws of the United States of America, that 10 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 12 of 158 the foregoing is true and correct. Executed on May 24, 2019, in Tigard, Oregon. ~ca,. Jeanne C. Finegan~ 11 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 13 of 158 Exhibit A Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 14 of 158 Heffler Claims Group JEANNE C. FINEGAN, APR BIOGRAPHY Jeanne Finegan, APR, is President and Chief Media Officer of HF Media, LLC, a division of Heffler Claims Group. She is a member of the Board of Directors for the prestigious Alliance for Audited Media (AAM), and was named by Diversity Journal as one of the "Top 100 Women Worth Watching." She is a distinguished legal notice and communications expert with more than 30 years of communications and advertising experience. She was a lead contributing author for Duke University's School of Law, "Guidelines and Best Practices Implementing Amendments to Rule 23 Class Action Settlement Provisions." And more recently, she has been involved with New York School of Law and The Center on Civil Justice (CCJ) assisting with a class action settlement data analysis and comparative visualization tool called the Aggregate Litigation Project, designed to help judges make decisions in aggregate cases on the basis of data as opposed to anecdotal information. Moreover, her experience also includes working with the Special Settlement Administrator's team to assist with the outreach strategy for the historic Auto Airbag Settlement, In re: Takata Airbag Products Liability Litigation MDL 2599. During her tenure, she has planned and implemented over 1,000 high-profile, complex legal notice communication programs. She is a recognized notice expert in both the United States and in Canada, with extensive international notice experience spanning more than 170 countries and over 40 languages. Ms. Finegan has lectured, published and has been cited extensively on various aspects of legal noticing, product recall and crisis communications. She has served the Consumer Product Safety Commission (CPSC) as an expert to determine ways in which the Commission can increase the effectiveness of its product recall campaigns. Further, she has planned and implemented large-scale government enforcement notice programs for the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC). Ms. Finegan is accredited in Public Relations (APR) by the Universal Accreditation Board, which is a program administered by the Public Relations Society of America (PRSA), and is also a recognized member of the Canadian Public Relations Society (CPRS). She has served on examination panels for APR candidates and worked pro bona as a judge for prestigious PRSA awards. Ms. Finegan has provided expert testimony before Congress on issues of notice, and expert testimony in both state and federal courts regarding notification campaigns. She has conducted Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 15 of 158 !I Heffler Claims Group numerous media audits of proposed notice programs to assess the adequacy of those programs under Fed R. Civ. P. 23(c)(2) and similar state class action statutes. She was an early pioneer of plain language in notice (as noted in a RAND study,1) and continues to set the standard for modern outreach as the first notice expert to integrate social and mobile media into court approved legal notice programs. In the course of her class action experience, courts have recognized the merits of, and admitted expert testimony based on, her scientific evaluation of the effectiveness ot notice plans. She has designed legal notices for a wide range of class actions and consumer matters that include product liability, construction defect, antitrust, medical/pharmaceutical, human rights, civil rights, telecommunication, media, environment, government enforcement actions, securities, banking, insurance, mass tort, restructuring and product recall. JUDICIAL COMMENTS AND LEGAL NOTICE CASES In evaluating the adequacy and effectiveness of Ms. Finegan 1 s notice campaigns, courts have repeatedly recognized her excellent work. The following excerpts provide some examples of such judicial approval. Simerlein et al., v. Toyota Motor Corporation, Case No. 3:17-cv-01091-VAB (District of CT 2019). In the Ruling and Order on Motion for Preliminarily Approval, dated January 14, 2019, p. 30, the Honorable Victor Bolden stated: "In finding that notice is sufficient to meet both the requirements of Rule 23{c) and due process, the Court has reviewed and appreciated the high-quality submission of proposed Settlement Notice Administrator Jeanne C. Finegan. See Declaration of Jeanne C. Finegan, APR, Ex. G to Agrmt., ECF No. 85-8. 11 Fitzhenry- Russell et al., v Keurig Dr. Pepper Inc., Case No. :17-cv-00564-NC, (ND Cal). In the Order Granting Final Approval of Class Action Settlement, Dated April 10, 2019, the Honorable Nathanael Cousins stated: "... the reaction of class members to the proposed Settlement is positive. The parties anticipated that 100,000 claims would be filed under the Settlement (see Dkt. No. 327- 5 1/ 36)-91,254 claims were actually filed (see Finegan Deel 1/ 4). The 4% claim rate was reasonable in light of Heffler's efforts to ensure that notice was adequately provided to the Class. 11 I Deborah R. Hensler et al, CLASS ACTION DILEMAS, PURSUING PUBLIC GOALS FOR PRIVATE GAIN. RAND (2000). Jeanne C. Finegan, APR CV 2 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 16 of 158 !I Heffler Claims Group Pettit et al., v. Procter & Gamble Co., Case No. 15-cv-02150-RS ND Cal. In the Order Granting Final Approval of the Class Action Settlement and Judgement, Dated March 28, 2019, p. 6, the Honorable Richard Seeborg stated: "The Court finds that the Notice Plan set forth in the Settlement Agreement, and effectuated pursuant to the Preliminary Approval Order, constituted the best notice practicable under the circumstances and constituted due and sufficient notice to the Settlement Class .... the number of claims received equates to a claims rate of 4.6%, which exceeds the rate in comparable settlements. JI Carter v Forjas Taurus S.S., Taurus International Manufacturing, Inc., Case No. 1:13-CV-24583 PAS (S.D. Fl. 2016). In her Final Order and Judgment Granting Plaintiffs Motion for Final Approval of Class Action Settlement, the Honorable Patricia Seitz stated: "The Court considered the extensive experience of Jeanne C. Finegan and the notice program she developed. ... There is no national firearms registry and Taurus sale records do not provide names and addresses of the ultimate purchasers... Thus the form and method used for notifying Class Members of the terms of the Settlement was the best notice practicable. ... The court-approved notice plan used peer-accepted national research to identify the optimal traditional, online, mobile and social media platforms to reach the Settlement Class Members. JI Additionally, in January 20, 2016, Transcript of Class Notice Hearing, p. 5 Judge Seitz, noted: "I would like to compliment Ms. Finegan and her company because I was quite impressed with the scope and the effort of communicating with the Class." Cook et. al v. Rockwell International Corp. and the Dow Chemical Co., No. 90-cv-00181- KLK (D.Colo. 2017)., aka, Rocky Flats Nuclear Weapons Plant Contamination. In the Order Granting Final Approval, dated April 28, 2017, p.3, the Honorable John L. Kane said: The Court-approved Notice Plan, which was successfully implemented by [HF Media- emphasis added] (see Doc. 2432}, constituted the best notice practicable under the circumstances. In making this determination, the Court finds that the Notice Plan that was implemented, as set forth in Declaration of Jeanne C. Finegan, APR Concerning Implementation and Adequacy of Class Member Notification (Doc. 2432), provided for individual notice to all members of the Class whose identities and addresses were identified through reasonable efforts, ... and a comprehensive national publication notice program that included, inter alia, print, television, radio and internet banner advertisements .... Pursuant to, and in accordance with, Rule 23 of the Federal Rules of Civil Procedure, the Court finds that the Notice Plan provided the best notice practicable to the Class. Jeanne C. Finegan, APR CV 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 17 of 158 !I Heffler Claims Group In re: Domestic Drywall Antitrust Litigation, MDL. No. 2437, in the U.S. District Court for the Eastern District of Pennsylvania. For each of the four settlements, Finegan implemented and extensive outreach effort including traditional, online, social, mobile and advanced television and online video. In the Order Granting Preliminary Approval to the IPP Settlement, Judge Michael M. Baylson stated: "The Court finds that the dissemination of the Notice and summary Notice constitutes the best notice practicable under the circumstances; is valid, due, and sufficient notice to all persons ... and complies fully with the requirements of the Federal rule of Civil Procedure." Warner v. Toyota Motor Sales, U.S.A. Inc., Case No 2:15-cv-02171-FMO FFMx {C.D. Cal. 2017). In the Order Re: Final Approval of Class Action Settlement; Approval of Attorney's Fees, Costs & Service Awards, dated May 21, 2017, the Honorable Fernando M. Olguin stated: Finegan, the court-appointed settlement notice administrator, has implemented the multiprong notice program . ... the court finds that the class notice and the notice process fairly and adequately informed the class members of the nature of the action, the terms of the proposed settlement, the effect of the action and release of claims, the class members' right to exclude themselves from the action, and their right to object to the proposed settlement. (See Dkt. 98, PAO at 25-28). Michael Allaga.c;, et al., v. BP Solar International, Inc., et al.,. BP Solar Panel Settlement, Cil~c No. 3:14-cv-00560- SI (N.D. Cal., San Francisco Div. 2016). In the Order Granting Final Approval, Dated December 22, 2016, The Honorable Susan lllston stated: Class Notice was reasonable and constituted due, adequate and sufficient notice to all persons entitled to be provided with notice; and d. fully satisfied the requirements of the Federal Rules of Civil Procedure, including Fed. R. Civ. P. 23(c)(2) and (e), the United States Constitution (including the Due Process Clause), the Rules of this Court, and any other applicable Jaw. Foster v. l-3 Communications EOTech, Inc. et al (6:15-cv-03519), Missouri Western District Court. In the Court's Final Order, dated July 7, 2017, The Honorable Judge Brian Wimes stated: "The Court has determined that the Notice given to the Settlement Class fully and accurately informed members of the Settlement Class of all material elements of the Settlement and constituted the best notice practicable." In re: Skechers Toning Shoes Products liability litigation, No. ~:11-Mn-7308-TBR (W.D. Ky. 2012). In his Final Order and Judgment granting the Motion for Preliminary Approval of Settlement, the Honorable Thomas B. Russell stated: Jeanne C. Finegan, APR CV 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 18 of 158 !I Heffler Claims Group ... The comprehensive nature of the class notice leaves little doubt that, upon receipt, class members will be able to make an informed and intelligent decision about participating in the settlement. Brody v. Merck & Co., Inc., et al, No. 3:12-cv-04774-PGS-DEA (N.J.) (Jt Hearing for Prelim App, Sept. 27, 2012, transcript page 34). During the Hearing on Joint Application for Preliminary Approval of Class Action, the Honorable Peter G. Sheridan acknowledged Ms. Finegan's work, noting: Ms. Finegan did a great job in testifying as to what the class administrator will do. So, I'm certain that all the class members or as many that can be found, will be given some very adequate notice in which they can perfect their claim. Quinn v. Walgreen Co., Wal-Mart Stores Inc., 7:12 CV-8187-VB (NYSD) (Jt Hearing for Final App, March. 5, 2015, transcript page 40-41). During the Hearing on Final Approval of Class Action, the Honorable Vincent L. Briccetti stated: "The notice plan was the best practicable under the circumstances . ... [and] "the proof is in the pudding. This settlement has resulted in more than 45,000 claims which is 10,000 more than the Pearson case and more than 40,000 more than in a glucosamine case pending in the Southern District of California I've been advised about. So the notice has reached a lot of people and a lot of people have made claims." In Re: TracFone Unlimited Service Plan litigation, No. C-13-3440 EMC (ND Ca}. In the Final Order and Judgment Granting Class Settlement, July 2, 2015, the Honorable Edward M. Chen noted: "... [D]epending on the extent of the overlap between those class members who will automatically receive a payment and those who filed claims, the total claims rate is estimated to be approximately 25-30%. This is an excellent result. .. In Re: Blue Buffalo Company, ltd., Marketing and Sales Practices litigation, Case No. 4:14- MD-2562 RWS (E.D. Mo. 2015), (Hearing for Final Approval, May 19, 2016 transcript p. 49). During the Hearing for Final Approval, the Honorable Rodney Sippel said: It is my finding that notice was sufficiently provided to class members in the manner directed in my preliminary approval order and that notice met all applicable requirements of due process and any other applicable law and considerations. DeHoyos, et al. v. Allstate Ins. Co., No. SA-01-CA-1010 (W.D.Tx. 2001). In the Amended Final Order and Judgment Approving Class Action Settlement, the Honorable Fred Biery stated: [T]he undisputed evidence shows the notice program in this case was developed and implemented by a nationally recognized expert in class action notice programs . ... This Jeanne C. Finegan, APR CV 5 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 19 of 158 !I Heffler Claims Group program was vigorous and specifically structured to reach the African-American and Hispanic class members. Additionally, the program was based on a scientific methodology which is used throughout the advertising industry and which has been routinely embraced routinely [sic] by the Courts. Specifically, in order to reach the identified targets directly and efficiently, the notice program utilized a multi-layered approach which included national magazines; magazines specifically appropriate to the targeted audiences; and newspapers in both English and Spanish. In re: Reebok Easytone litigation, No. 10-CV-11977 (D. MA. 2011). The Honorable F. Dennis Saylor IV stated in the Final Approval Order: The Court finds that the dissemination of the Class Notice, the publication of the Summary Settlement Notice, the establishment of a website containing settlement related materials, the establishment of a toll-free telephone number, and all other notice methods set forth in the Settlement Agreement and [Ms. Finegan's] Declaration and the notice dissemination methodology implemented pursuant to the Settlement Agreement and this Court's Preliminary Approval Order ... constituted the best practicable notice to Class Members under the circumstances of the Actions. Bezdek v. Vibram USA and Vibram Fivefingers LLC, No 12-10513 (D. MA) The Honorable Douglas P. Woodlock stated in the Final Memorandum and Order: ... [O]n independent review I find that the notice program was robust, particularly in its online presence, and implemented as directed in my Order authorizing notice.... I find that notice was given to the Settlement class members by the best means "practicable under the circumstances.,, Fed. R. Civ. P. 23{c){2). Geme/as v. The Dannon Company Inc., No. 08-cv-00236-DAP (N.D. Ohio). In granting final approval for the settlement, the Honorable Dan A. Polster stated: In accordance with the Court's Preliminary Approval Order and the Court-approved notice program, [Ms. Finegan] caused the Class Notice to be distributed on a nationwide basis in magazines and newspapers (with circulation numbers exceeding 81 million) specifically chosen to reach Class Members. ... The distribution of Class Notice constituted the best notice practicable under the circumstances, and fully satisfied the requirements of Federal Rule of Civil Procedure 23, the requirements of due process, 28 U.S.C. 1715, and any other applicable Jaw. Pashmova v. New Balance Athletic Shoes, Inc., 1:11-cv-10001-LTS (D. Mass.). The Honorable Leo T. Sorokin stated in the Final Approval Order: The Class Notice, the Summary Settlement Notice, the web site, and all other notices in the Settlement Agreement and the Declaration of [Ms Finegan], and the notice methodology implemented pursuant to the Settlement Agreement: (a) constituted the best practicable notice under the circumstances; (b) constituted notice that was Jeanne C. Finegan, APR CV 6 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 20 of 158 !I Heffler Claims Group reasonably calculated to apprise Class Members of the pendency of the Actions, the terms of the Settlement and their rights under the settlement ... met all applicable requirements of law, including, but not limited to, the Federal Rules of Civil Procedure, 28 U.S.C. § 1715, and the Due Process Clause(s) of the United States Constitution, as well as complied with the Federal Judicial Center's illustrative class action notices. Hartless v. Clorox Company, No. 06-CV-2705 (CAB) (S.D.Cal.). In the Final Order Approving Settlement, the Honorable Cathy N. Bencivenga found: The Class Notice advised Class members of the terms of the settlement; the Final Approval Hearing and their right to appear at such hearing; their rights to remain in or opt out of the Class and to object to the settlement; the procedures for exercising such rights; and the binding effect of this Judgment, whether favorable or unfavorable, to the Class. The distribution of the notice to the Class constituted the best notice practicable under the circumstances, and fully satisfied the requirements of Federal Rule of Civil Procedure 23, the requirements of due process, 28 U.S.C. §1715, and any other applicable law. McDonough et al v. Toys 'R' Us et al, No. 09:-cv-06151-AB (E.D. Pa.). In the Final Order and Judgment Approving Settlement, the Honorable Anita Brody stated: The Court finds that the Notice provided constituted the best notice practicable under the circumstances and constituted valid, due and sufficient notice to all persons entitled thereto. In re: Pre-Filled Propane Tank Marketing & Sales Practices Litigation, No. 4:09-md-02086-GAF (W.D. Mo.) In granting final approval to the settlement, the Honorable Gary A. Fenner stated: The notice program included individual notice to class members who could be identified by Ferrellgas, publication notices, and notices affixed to Blue Rhino propane tank cylinders sold by Ferrellgas through various retailers . ... The Court finds the notice program fully complied with Federal Rule of Civil Procedure 23 and the requirements of due process and provided to the Class the best notice practicable under the circumstances. Stern v. AT&T Mobility Wireless, No. 09-cv-1112 CAS-AGR (C.D.Cal. 2009). In the Final Approval Order, the Honorable Christina A. Snyder stated: [T]he Court finds that the Parties have fully and adequately effectuated the Notice Plan, as required by the Preliminary Approval Order, and, in fact, have achieved better results than anticipated or required by the Preliminary Approval Order. In re: Processed Egg Prods. Antitrust Litig., MDL No. 08-md-02002 (E.D.P.A.). In the Order Granting Final Approval of Settlement, Judge Gene E.K. Pratter stated: Jeanne C. Finegan, APR CV 7 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 21 of 158 !I Heffler Claims Group The Notice appropriately detailed the nature of the action, the Class claims, the definition of the Class and Subclasses, the terms of the proposed settlement agreement, and the class members' right to object or request exclusion from the settlement and the timing and manner for doing so.... Accordingly, the Court determines that the notice provided to the putative Class Members constitutes adequate notice in satisfaction of the demands of Rule 23. In re Polyurethane Foam Antitrust litigation, 10- MD-2196 (N.D. OH). In the Order Granting Final Approval of Voluntary Dismissal and Settlement of Defendant Domfoam and Others, the Honorable Jack Zouhary stated: The notice program included individual notice to members of the Class who could be identified through reasonable effort, as well as extensive publication of a summary notice. The Notice constituted the most effective and best notice practicable under the circumstances of the Settlement Agreements, and constituted due and sufficient notice for all other purposes to all persons and entities entitled to receive notice. Rojas v Career Education Corporation, No. 10-cv-05260 (N.D.E.D. IL) In the Final Approval Order dated October 25, 2012, the Honorable Virgina M. Kendall stated: The Court Approved notice to the Settlement Class as the best notice practicable under the circumstance including individual notice via U.S. Mail and by email to the class members whose addresses were obtained from each Class Member's wireless carrier or from a commercially reasonable reverse cell phone number look-up service, nationwide magazine publication, website publication, targeted on-line advertising, and a press release. Notice has been successfully implemented and satisfies the requirements of the Federal Rule of Civil Procedure 23 and Due Process. Golloher v Todd Christopher International, Inc. DBA Vogue International (Organix}, No. C 1206002 N.D CA. In the Final Order and Judgment Approving Settlement, the Honorable Richard Seeborg stated: The distribution of the notice to the Class constituted the best notice practicable under the circumstances, and fully satisfied the requirements of Federal Rule of Civil Procedure 23, the requirements of due process, 28 U.S.C. §1715, and any other applicable law. Stefanyshyn v. Consolidated Industries, No. 79 D 01-9712-CT-59 (Tippecanoe County Sup. Ct., Ind.). In the Order Granting Final ApproviJI of Settlement, Judge Randy Williams stated: The long and short form notices provided a neutral, informative, and clear explanation of the Settlement. ... The proposed notice program was properly designed, recommended, and implemented ... and constitutes the "best practicable" notice of Jeanne C. Finegan, APR CV 8 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 22 of 158 !I Heffler Claims Group the proposed Settlement. The form and content of the notice program satisfied all applicable legal requirements . ... The comprehensive class notice educated Settlement Class members about the defects in Consolidated furnaces and warned them that the continued use of their furnaces created a risk of fire and/or carbon monoxide. This alone provided substantial value. McGee v. Continental Tire North America, Inc. et al, No. 06-6234-(GEB) (D.N.J.). The Class Notice, the Summary Settlement Notice, the web site, the toll-free telephone number, and all other notices in the Agreement, and the notice methodology implemented pursuant to the Agreement: (a) constituted the best practicable notice under the circumstances; (b) constituted notice that was reasonably calculated to apprise Class Members of the pendency of the Action, the terms of the settlement and their rights under the settlement, including, but not limited to, their right to object to or exclude themselves from the proposed settlement and to appear at the Fairness Hearing; (c) were reasonable and constituted due, adequate and sufficient notice to all persons entitled to receive notification; and {d) met all applicable requirements of law, including, but not limited to, the Federal Rules of Civil Procedure, 20 U.S.C. Sec. 1715, and the Due Process Clause(s) of the United States Constitution, as well as complied with the Federal Judicial Center's illustrative class action notices, Varacallo, et al. v. Massachusetts Mutual life Insurance Company, et al., No. 04-2702 (JLL) (D.N.J.). The Court stated that: [A]II of the notices are written in simple terminology, are readily understandable by Class Members, and comply with the Federal Judicial Center's illustrative class action notices . ... By working with a nationally syndicated media research firm, [Finegan's firm] was able to define a target audience for the MassMutual Class Members, which provided a valid basis for determining the magazine and newspaper preferences of the Class Members. {Preliminary Approval Order at p. 9). . . . The Court agrees with Class Counsel that this was more than adequate. {Id. at§ 5.2). In re: Nortel Network Corp., Sec. Litig., No. 01-CV-1855 (RMB) Master File No. 05 MD 1659 (LAP) (S.D.N.Y.). Ms. Finegan designed and implemented the extensive United States and Canadian notice programs in this case. The Canadian program was published in both French and English, and targeted virtually all investors of stock in Canada. See www.nortelsecuritieslitigation.com. Of the U.S. notice program, the Honorable Loretta A. Pre ska stated: The form and method of notifying the U.S. Global Class of the pendency of the action as a class action and of the terms and conditions of the proposed Settlement ... constituted the best notice practicable under the circumstances, and constituted due and sufficient notice to all persons and entities entitled thereto. Je,mne C. Finegan, APR CV 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 23 of 158 !I Heffler Claims Group Regarding the B.C. Canadian Notice effort: Jeffrey v. Nortel Networks, [2007] BCSC 69 at para. 50, the Honourable Mr. Justice Groberman said: The efforts to give notice to potential class members in this case have been thorough. There has been a broad media campaign to publicize the proposed settlement and the court processes. There has also been a direct mail campaign directed at probable investors. I am advised that over 1.2 million claim packages were mailed to persons around the world. In addition, packages have been available through the worldwide web site nortelsecuritieslitigation.com on the Internet. Toll-free telephone lines have been set up, and it appears that class counsel and the Claims Administrator have received innumerable calls from potential class members. In short, all reasonable efforts have been made to ensure that potential members of the class have had notice of the proposal and a reasonable opportunity was provided for class members to register their objections, or seek exclusion from the settlement. Mayo v. Walmart Stores and Sam's Club, No. 5:06 CV-93-R (W.D.Ky.). In the Order Granting Final Approval of Settlement, Judge Thomas B. Russell stated: According to defendants' database, the Notice was estimated to have reached over 90% of the Settlement Class Members through direct mail. The Settlement Administrator ... has classified the parties' database as 'one of the most reliable and comprehensive databases [she] has worked with for the purposes of legal notice.'... The Court thus reaffirms its findings and conclusions in the Preliminary Approval Order that the form of the Notice and manner of giving notice satisfy the requirements of Fed. R. Civ. P. 23 and affords due process to the Settlement Class Members. Fishbein v. All Market Inc., (d/b/a Vita Coco) No. 11-cv-05580 (S.D.N.Y.). In granting final approval of the settlement, the Honorable J. Paul Oetken stated: "The Court finds that the dissemination of Class Notice pursuant to the Notice Program ... constituted the best practicable notice to Settlement Class Members under the circumstances of this Litigation ... and was reasonable and constituted due, adequate and sufficient notice to all persons entitled to such notice, and fully satisfied the requirements of the Federal Rules of Civil Procedure, including Rules 23{c)(2) and (e), the United States Constitution (including the Due Process Clause), the Rules of this Court, and any other applicable laws." luc:as, et al. v. Kmart Corp., No. 99-cv-01923 (D.Colo.), wherein the Court recognized Jeanne Finegan as an expert in the design of notice programs, and stated: The Court finds that the efforts of the parties and the proposed Claims Administrator in this respect go above and beyond the "reasonable efforts" required for identifying individual class members under F.R.C.P. 23(c)(2}(8}. Jeanne C. Finegan, APR CV 10 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 24 of 158 !I Heffler Claims Group In re: Johns-Manville Corp. (Statutory Direct Action Settlement, Common Law Direct Action and Hawaii Settlement), No 82-11656, 57, 660, 661, 665-73, 75 and 76 (BRL) (Bankr. S.D.N.Y.). The nearly half-billion dollar settlement incorporated three separate notification programs, which targeted all persons who had asbestos claims whether asserted or unasserted, against the Travelers Indemnity Company. In the Findings of Fact and Conclusions of a Clarifying Order Approving the Settlements, slip op. at 47-48 (Aug. 17, 2004), the Honorable Burton R. Lifland, Chief Justice, stated: As demonstrated by Findings of Fact (citation omitted), the Statutory Direct Action Settlement notice program was reasonably calculated under all circumstances to apprise the affected individuals of the proceedings and actions taken involving their interests, Mullane v. Cent. Hanover Bank & Trust Co., 339 U.S. 306, 314 {1950), such program did apprise the overwhelming majority of potentially affected claimants and far exceeded the minimum notice required. . . . The results simply speak for themselves. Pigford v. Glickman and U.S. Department of Agriculture, No. 97-1978. 98-1693 (PLF} (D.D.C.}. This matter was the largest civil rights case to settle in the United States in over 40 years. The highly publicized, nationwide paid media program was designed to alert all present and past African-American farmers of the opportunity to recover monetary damages against the U.S. Department of Agriculture for alleged loan discrimination. In his Opinion, the Honorable Paul L. Friedman commended the parties with respect to the notice program, stating; The parties also exerted extraordinary efforts to reach class members through a massive advertising campaign in general and African American targeted publications and television stations. . . . The Court concludes that class members have received more than adequate notice and have had sufficient opportunity to be heard on the fairness of the proposed Consent Decree. In re: Louisiana-Pacific Inner-Seal Siding Litig., Nos. 879-JE, and 1453-JE (D.Or.). Under the terms of the Settlement, three separate notice programs were to be implemented at three-year intervals over a period of six years. In the first notice campaign, Ms. Finegan implemented the print advertising and Internet components of the Notice program. In approving the legal notice communication plan, the Honorable Robert E. Jones stated: The notice given to the members of the Class fully and accurately informed the Class members of all material elements of the settlement. .. [through] a broad and extensive mu/ti-media notice campaign. Additionally, with regard to the third-year notice program for Louisiana-Pacific, the Honorable Richard Unis, Special Master, commented that the notice was: Jeanne C. Finegan, APR CV 11 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 25 of 158 !I Heffler Claims Group ... well formulated to conform to the definition set by the court as adequate and reasonable notice. Indeed, I believe the record should also reflect the Court's appreciation to Ms. Finegan for all the work she's done, ensuring that noticing was done correctly and professionally, while paying careful attention to overall costs. Her understanding of various notice requirements under Fed. R. Civ. P. 23, helped to insure that the notice given in this case was consistent with the highest standards of compliance with Rule 23{d){2}. In re: Expedia Hotel Taxes and Fees Litigation, No. 05-2-02060-1 (SEA) (Sup. Ct. of Wash. in and for King County). In the Order Granting Final Approval of Class Action Settlement, Judge Monica Benton stated: The Notice of the Settlement given to the Class ... was the best notice practicable under the circumstances. All of these forms of Notice directed Class Members to a Settlement Website providing key Settlement documents including instructions on how Class Members could exclude themselves from the Class, and how they could object to or comment upon the Settlement. The Notice provided due and adequate notice of these proceeding and of the matters set forth in the Agreement to all persons entitled to such notice, and said notice fully satisfied the requirements of CR 23 and due process. Thomas A. Foster and Linda E. Foster v. ABTco Siding litigation, No. 95-151-M (Cir. Ct., Choctaw County, Ala.). This litigation focused on past and present owners of structures sided with Abitibi-Priu~ ~itling. The notice program that Ms. Finegan designed and implemented was national in scope and received the following praise from the Honorable J. Lee McPhearson: The Court finds that the Notice Program conducted by the Parties provided individual notice to all known Class Members and all Class Members who could be identified through reasonable efforts and constitutes the best notice practicable under the circumstances of this Action. This finding is based on the overwhelming evidence of the adequacy of the notice program. ... The media campaign involved broad national notice through television and print media, regional and local newspapers, and the Internet (see id. flf/9-11} The result: over 90 percent of Abitibi and ABTco owners are estimated to have been reached by the direct media and direct mail campaign. Wilson v. Massachusetts Mut. Life Ins. Co., No. D-101-CV 98-02814 (First Judicial Dist. Ct., County of Santa Fe, N.M.). This was a nationwide notification program that included all persons in the United States who owned, or had owned, a life or disability insurance policy with Massachusetts Mutual Liff' Insurance Company and had paid additional charges when paying their premium on an installment basis. The class was estimated to exceed 1.6 million individuals. www.insuranceclassclaims.com. In granting preliminary approval to the settlement, the Honorable Art Encinias found: Jeanne C. Finegan, APR CV 12 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 26 of 158 !I Heffler Claims Group [T]he Notice Plan [is] the best practicable notice that is reasonably calculated, under the circumstances of the action. . .. [and] meets or exceeds all applicable requirements of the Jaw, including Rule 1-023{C){2) and (3) and 1-023{E), NMRA 2001, and the requirements of federal and/or state constitutional due process and any other applicable law. Sparks v. AT&T Corp., No. 96-LM-983 (Third Judicial Cir., Madison County, 111.). The litigation concerned all persons in the United States who leased certain AT&T telephones during the 1980's. Ms. Finegan designed and implemented a nationwide media program designed to target all persons who may have leased telephones during this time period, a class that included a large percentage of the entire population of the United States. In granting final approval to the settlement, the Court found: The Court further finds that the notice of the proposed settlement was sufficient and furnished Class Members with the information they needed to evaluate whether to participate in or opt out of the proposed settlement. The Court therefore concludes that the notice of the proposed settlement met all requirements required by law, including all Constitutional requirements. In re: Georgia-Pacific Toxic Explosion Litig., No. 98 CVC0S-3535 (Ct. of Common Pleas, Franklin County, Ohio). Ms. Finegan designed and implemented a regional notice program that included network affiliate television, radio and newspaper. The notice was designed to alert adults living near a Georgia-Pacific plant that they had been exposed to an air-born toxic plume and their rights under the terms of the class action settlement. In the Order and Judgment finally approving the settlement, the Honorable Jennifer L. Bunner stated: [N]otice of the settlement to the Class was the best notice practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort. The Court finds that such effort exceeded even reasonable effort and that the Notice complies with the requirements of Civ. R. 23{C). In re: American Cyanamid, No. CV-97-0581-BH-M (S.D.AI.). The media program targeted Farmers who had purchased crop protection chemicals manufactured by American Cyanamid. In the Final Order and Judgment, the Honorable Charles R. Butler Jr. wrote: The Court finds that the form and method of notice used to notify the Temporary Settlement Class of the Settlement satisfied the requirements of Fed. R. Civ. P. 23 and due process, constituted the best notice practicable under the circumstances, and constituted due and sufficient notice to all potential members of the Temporary Class Settlement. In re: First Alert Smoke Alarm Litig., No. CV-98-C-1546-W (UWC) (N.D.AI.). Ms. Finegan designed and implemented a nationwide legal notice and public information program. The public information program ran over a two-year period to inform those with smoke alarms of Jeanne C. Finegan, APR CV 13 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 27 of 158 !I Heffler Claims Group the performance characteristics between photoelectric and ionization detection. The media program included network and cable television, magazine and specialty trade publications. In the Findings and Order Preliminarily Certifying the Class for Settlement Purposes, Preliminarily Approving Class Settlement, Appointing Class Counsel, Directing Issuance of Notice to the Class, and Scheduling a Fairness Hearing, the I lonorable C.W. Clemon wrule lhc:1l lhe notice plan: ... constitutes due, adequate and sufficient notice to all Class Members; and (v) meets or exceeds all applicable requirements of the Federal Rules of Civil Procedure, the United States Constitution (including the Due Process Clause), the Alabama State Constitution, the Rules of the Court, and any other applicable law. In re: James Hardie Roofing Litig., No. 00-2-17945-65SEA (Sup. Ct. of Wash., King County). The nationwide legal notice program included advertising on television, in print and on the Internet. The program was designed to reach all persons who own any structure with JHBP roofing products. In the Final Order and Judgment, the Honorable Steven Scott stated: The notice program required by the Preliminary Order has been fully carried out. .. [and was] extensive. The notice provided fully and accurately informed the Class Members of all material elements of the proposed Settlement and their opportunity to participate in or be excluded from it; was the best notice practicable under the circumstances; was valid, due and sufficient notice to all Class Members; and complied fully with Civ. R. 23, the United States Constitution, due process, and other applicable law. Barden v. Hurd Mil/work Co. Inc., et al, No. 2:6-cv-00046 (LA) (E.D.Wis.) ("The Court approves, as to form and content, the notice plan and finds that such notice is the best practicable under the circumstances under Federal Rule of Civil Procedure 23{c)(2)(B) and constitutes notice in a reasonable manner under Rule 23(e)(1). ") Altieri v. Reebok, No. 4:10-cv-11977 (FDS) (D.C.Mass.) ("The Court finds that the notices ... constitute the best practicable notice... The Court further finds that all of the notices are written in simple terminology, are readily understandable by Class Members, and comply with the Federal Judicial Center's illustrative class action notices.") Marenco v. Visa Inc., No. CV 10-08022 (DMG) {C.D.Cal.) ("[T]he Court finds that the notice plan ... meet.,; the requirements of due process, California law, and other applicable precedent. The Court finds that the proposed notice program is designed to provide the Class with the best notice practicable, under the circumstances of this action, of the pendency of this litigation and of the proposed Settlement's terms, conditions, and procedures, and shall constitute due and sufficient notice to all persons entitled thereto under California law, the United States Constitution, and any other applicable law.") Jeanne C. Finegan, APR CV 14 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 28 of 158 !I Heffler Claims Group Palmer v. Sprint Solutions, Inc., No. 09-cv-01211 (JLR) (W.D.Wa.) ("The means of notice were reasonable and constitute due, adequate, and sufficient notice to all persons entitled to be provide3d with notice.") In re: Tyson Foods, Inc., Chicken Raised Without Antibiotics Consumer litigation, No. 1:08-md- 01982 ROB (D. Md. N. Div.) ("The notice, in form, method, and content, fully complied with the requirements of Rule 23 and due process, constituted the best notice practicable under the circumstances, and constituted due and sufficient notice to all persons entitled to notice of the settlement.") Sager v. /named Corp. and McGhan Medical Breast Implant litigation, No. 01043771 (Sup. Ct. Cal., County of Santa Barbara) ("Notice provided was the best practicable under the circumstances. 'l Deke, et al. v. Cardservice lnternat'I, Case No. BC 271679, slip op. at 3 (Sup. Ct. Cal., County of Los Angeles) ("The Class Notice satisfied the requirements of California Rules of Court 1856 and 1859 and due process and constituted the best notice practicable under the circumstances."). Levine, et al. v. Dr. Philip C. McGraw, et al., Case No. BC 312830 (Los Angeles County Super. Ct., Cal.) ("[T]he plan for notice to the Settlement Class ... constitutes the best notice practicable under the circumstances and constituted due and sufficient notice to the members of the Settlement Class ... and satisfies the requirements of California law and federal due process of law."). In re: Canadian Air Cargo Shipping Class Actions, Court File No. 50389CP, Ontario Superior Court of Justice, Supreme Court of British Columbia, Quebec Superior Court("/ am satisfied the proposed form of notice meets the requirements of s. 17(6) of the CPA and the proposed method of notice is appropriate."). Fischer et al v. JG Investment Management, Ltd. et al, Court File No. 06-CV-307599CP, Ontario Superior Court of Justice. In re: Vivendi Universal, S.A. Securities litigation, No. 02-cv-5571 (RJH)(HBP) (S.D.N.Y.). In re: Air Cargo Shipping Services Antitrust Litigation, No. 06-MD-1775 (JG) (VV) (E.D.N.Y.). Berger, et al., v. Property ID Corporation, et al., No. CV 05-5373-GHK (CWx) (C.D.Cal.). Lozano v. AT&T Mobility Wireless, No. 02-cv-0090 CAS (AJWx) (C.D.Cal.). Howard A. Engle, M.D., et al., v. R.J. Reynolds Tobacco Co., Philip Morris, Inc., Brown & Williamson Tobacco Corp., No. 94-08273 CA (22) (11th Judicial Dist. Ct. of Miami-Dade County, Fla.). Jeanne C. Finegan, APR CV 15 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 29 of 158 !I Heffler Claims Group In re: Royal Dutch/Shell Transport Securities Litigation, No. 04 Civ. 374 (JAP} (Consolidated Cases) (D. N.J.). In re: Epson Cartridge Cases, Judicial Council Coordination Proceeding, No. 4347 (Sup. Ct. of Cal., County of Los Angeles). UAW v. General Motors Corporation, No: 05-73991 (E.D.MI}. Wicon, Inc. v. Cardservice Intern'/, Inc., BC 320215 (Sup. Ct. of Cal., County of Los Angeles). In re: SmithK/ine Beecham Clinical Billing Litig., No. CV. No. 97-L-1230 (Third Judicial Cir., Madison County, 111.). Ms. Finegan designed and developed a national media and Internet site notification program in connection with the settlement of a nationwide class action concerning billings for clinical laboratory testing services. MacGregor v. Schering-Plough Corp., No. EC248041 (Sup. Ct. Cal., County of Los Angeles). This nationwide notification program was designed to reach all persons who had purchased or used an aerosol inhaler manufactured by Schering-Plough. Because no mailing list was available, notice was accomplished entirely through the media program. In re: Swiss Banks Holocaust Victim Asset Litig., No. CV-96-4849 (E.D.N.Y.). Ms. Finegan managed the design and implementation of the Internet site on this historic case. The site was developed in 21 native languc1ges. It is a highly secure data gathering tool and infonnation hub, central to the global outreach program of Holocaust survivors. www.swissbankclaims.com. In re: Exxon Valdez Oil Spill Litig., No. A89-095-CV (HRH) (Consolidated) (D. Alaska). Ms. Finegan designed and implemented two media campaigns to notify native Alaskan residents, trade workers, fisherman, and others impacted by the oil spill of the litigation and their rights under the settlement terms. In re: Johns-Manville Phenolic Foam litig., No. CV 96-10069 (D. Mass). The nationwide multi media legal notice program was designed to reach all Persons who owned any structure, including an industrial building, commercial building, school, condominium, apartment house, home, garage or other type of structure located in the United States or its territories, in which Johns-ManvillP PFRI was installed, in whole or in part, on top of a metal roof deck. Bristow v Fleetwood Enters litig., No Civ 00-0082-S-EJL (D. Id}. Ms. Finegan designed and implemented a legal notice campaign lc1rgP.ting prPsent and former employees of Fleetwood Enterprises, Inc., or its subsidiaries who worked as hourly production workers at Fleetwoorl's housing, travel trailPr, nr motor home manufacturing pl.:ints. The comprehensive notice campaign included print, radio and television advertising. Jeanne C. Finegan, APR CV 16 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 30 of 158 !I Heffler Claims Group In re: New Orleans Tank Car Leakage Fire Litig., No 87-16374 (Civil Dist. Ct., Parish of Orleans, LA) (2000). This case resulted in one of the largest settlements in U.S. history. This campaign consisted of a media relations and paid advertising program to notify individuals of their rights under the terms of the settlement. Garria Spencer v. Shell Oil Co., No. CV 94-074(Dist. Ct., Harris County, Tex.). The nationwide notification program was designed to reach individuals who owned real property or structures in the United States, which contained polybutylene plumbing with acetyl insert or metal insert fittings. In re: Hurd Mil/work Heat Mirror™ Litig., No. CV-772488 (Sup. Ct. of Cal., County of Santa Clara). This nationwide multi-media notice program was designed to reach class members with failed heat mirror seals on windows and doors, and alert them as to the actions that they needed to take to receive enhanced warranties or window and door replacement. Laborers Dist. Counsel of Alabama Health and Welfare Fund v. Clinical Lab. Servs., Inc, No. CV-97-C-629-W (N.D. Ala.). Ms. Finegan designed and developed a national media and Internet site notification program in connection with the settlement of a nationwide class action concerning alleged billing discrepancies for clinical laboratory testing services. In re: Starlink Corn Prods. Liab. Litig., No. 01-C-1181 (N.D. Ill).. Ms. Finegan designed and implemented a nationwide notification program designed to alert potential class members of the terms of the settlement. In re: MCI Non-Subscriber Rate Payers Litig., MDL Docket No. 1275, 3:99-cv-01275 (S.D.II1.). The advertising and media notice program, found to be "more than adequate" by the Court, was designed with the understanding that the litigation affected all persons or entities who were customers of record for telephone lines presubscribed to MCI/World Com, and were charged the higher non-subscriber rates and surcharges for direct-dialed long distance calls placed on those lines. www.rateclaims.com. In re: Albertson's Back Pay Litig., No. 97-0159-S-BLW (D.ld.). Ms. Finegan designed and developed a secure Internet site, where claimants could seek case information confidentially. In re: Georgia Pacific Hardboard Siding Recovering Program, No. CV-95-3330-RG (Cir. Ct., Mobile County, Ala.). Ms. Finegan designed and implemented a multi-media legal notice program, which was designed to reach class members with failed G-P siding and alert them of the pending matter. Notice was provided through advertisements, which aired on national cable networks, magazines of nationwide distribution, local newspaper, press releases and trade magazines. In re: Diet Drugs (Phentermine, Fenfluramine, Dexfenfluramine) Prods. Liab. Litig., Nos. 1203, 99-20593. Ms. Finegan worked as a consultant to the National Diet Drug Settlement Committee on notification issues. The resulting notice program was described and Jeanne C. Finegan, APR CV 17 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 31 of 158 !I Heffler Claims Group complimented at length in the Court's Memorandum and Pretrial Order 1415, approving the settlement, In re: Diet Drugs (Phentermine, Fenfluramine, Dexfenfluramine) Prods. Liab. Litig., 2000 WL 1222042, Nos. 1203, 99-20593 (E.D.Pa. Aug. 28, 2002). Ms. Finegan designed the Notice programs for multiple state antitrust cases filed against the Microsoft Corporation. In those cases, it wc1s generally alleged that Microsoft unlawfully used anticompetitive means to maintain a monopoly in markets tor certain software, and that as a result, it overcharged consumers who licensed its MS-DOS, Windows, Word, Excel and Office software. The multiple legal notice programs designed by Jeanne Finegan and listed below targeted both individual users and business users of this software. The scientifically designed notice programs took into consideration both media usage habits and demographic characteristics of the targeted class members. In re: Florida Microsoft Antitrust Litig. Settlement, No. 99-27340 CA 11 (11th Judicial Dist. Ct. of Miami-Dade County, Fla.). In re: Montana Microsoft Antitrust litig. Settlement, No. DCV 2000 219 (First Judicial Dist. Ct., Lewis & Clark Co., Mt.). In re: South Dakota Microsoft Antitrust Litig. Settlement, No. 00-235(Sixth Judicial Cir., County of Hughes, S.D.). In re: Kansas Microsoft Antitrust Litig. Settlement, No. 99C17089 Division No. 15 Consolidated Cases (Dist. Ct., Johnson County, Kan.) ("The Class Notice provided was the best notice practicable under the circumstances and fully complied in all respects with the requirements of due process and of the Kansas State. An not. §60-22.3."). In re: North Carolina Microsoft Antitrust litig. Settlement, No. 00-CvS-4073 (Wake) 00-CvS- 1246 (Lincoln) (General Court of Justice Sup. Ct., Wake and Lincoln Counties, N.C.). In re: ABS II Pipes litig., No. 3126 (Sup. Ct. of Cal., Contra Costa County). The Court approved regional notification program designed to alert those individuals who owned structures with the pipe that they were eligible to recover the cost of replacing the pipe. In re: Avenue A Inc. Internet Privacy Litig., No: C00-1964C (W.D. Wash.). In re: lorazepam and Clorazepate Antitrust Litig., No. 1290 (TFH) (D.C.C.). In re: Providian Fin. Corp. ER/SA litig., No C-01-5027 (N.D. C.:il.). In re: H & R Block., et al Tax Refund Litig., No. 97195023/CC4111 (MD Cir. Ct., Baltimore City). Jeanne C. Finegan, APR CV 18 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 32 of 158 !I Heffler Claims Group In re: American Premier Underwriters, Inc, U.S. Railroad Vest Corp., No. 06C01-9912 (Cir. Ct., Boone County, Ind.). In re: Sprint Corp. Optical Fiber litig., No: 9907 CV 284 (Dist. Ct., Leavenworth County, Kan). In re: Shelter Mutual Ins. Co. litig., No. CJ-2002-263 (Dist.Ct., Canadian County. Ok). In re: Conseco, Inc. Sec. litig., No: IP-00-0585-C Y/S CA (S.D. Ind.). In re: Nat'/ Treasury Employees Union, et al., 54 Fed. Cl. 791 (2002). In re: City of Miami Parking litig., Nos. 99-21456 CA-10, 99-23765 - CA-10 (11th Judicial Dist. Ct. of Miami-Dade County, Fla.). In re: Prime Co. Incorporated D/8/A/ Prime Co. Personal Comm., No. L 1:01CV658 (E.D. Tx.). A/sea Veneer v. State of Oregon A.A., No. 88C-11289-88C-11300. Jeanne C. Finegan, APR CV 19 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 33 of 158 !I Heffler Claims Group INTERNATIONAL EXPERIENCE Bell v. Canadian Imperial Bank of Commerce, et al, Court File No.: CV-08-359335 (Ontario Superior Court of Justice); (2016}. In re: Canadian Air Cargo Shipping Class Actions (Ontario Superior Court of Justice, Court File No. 50389CP, Supreme Court of British Columbia. In re: Canadian Air Cargo Shipping Class Actions Quebec Superior Court). Fischer v. JG Investment Management l TD., No. 06-CV-307599CP (Ontario Superior Court of Justice). In Re Nortel I & II Securities litigation, Civil Action No. 01-CV-1855 (RMB}, Master File No. 05 MD 1659 (LAP) (S.D.N. Y. 2006}. Frohlinger v. Nortel Networks Corporation et al., Court File No.: 02-CL-4605 (Ontario Superior Court of Justice). Association de Protection des Epargnants et lnvestissuers du Quebec v. Corporation Nortel Networks, No.: 500-06-0002316-017 (Superior Court of Quebec). Jeffery v. Nortel Networks Corporation et al., Court File No.: 5015159 (Supreme Court of British Columbia). Gallardi v. Nortel Networks Corporation, No. 05-CV-285606CP (Ontario Superior Court). Skarstedt v. Corporation Nortel Networks, No. 500-06-000277-059 (Superior Court of Quebec). SEC ENFORCEMENT NOTICE PROGRAM EXPERIENCE SEC v. Vivendi Universal, S.A., et al., Case No. 02 Civ. 5571 (RJH) (HBP) (S.D.N.Y.). The Notice program included publication in 11 different countries and eight different languages. SEC v. Royal Dutch Petroleum Company, No.04-3359 (S.D. Tex.) Jeanne C. Finegan, APR CV 20 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 34 of 158 !I Heffler Claims Group FEDERAL TRADE COMMISSION NOTICE PROGRAM EXPERIENCE FTC v. TracFone Wireless, Inc., Case No. 15-cv-00392-EMC. FTC v. Skechers U.S.A., Inc., No. 1:12-cv-01214-JG (N.D. Ohio). FTC v. Reebok International ltd., No. 11-cv-02046 (N.D. Ohio) FTC v. Chanery and RTC Research and Development LLC [Nutraquest], No :05-cv-03460 (D.N.J.) BANKRUPTCY EXPERIENCE Ms. Finegan has designed and implemented hundreds of domestic and international bankruptcy notice programs. A sample case list includes the following: In re AMR Corporation [American Airlines], et al., No. 11-15463 (SHL) (Bankr. S.D.N.Y.) ("due and proper notice [was] provided, and ... no other or further notice need be provided.") In re Jackson Hewitt Tax Service Inc., et al., No 11-11587 (Bankr. D.Del.) (2011). The debtors sought to provide notice of their filing as well as the hearing to approve their disclosure statement and confirm their plan to a large group of current and former customers, many of whom current and viable addresses promised to be a difficult (if not impossible) and costly undertaking. The court approved a publication notice program designed and implemented by Finegan and the administrator, that included more than 350 local newspaper and television websites, two national online networks (24/7 Real Media, Inc. and Microsoft Media Network), a website notice linked to a press release and notice on eight major websites, including CNN and Yahoo. These online efforts supplemented the print publication and direct-mail notice provided to known claimants and their attorneys, as well as to the state attorneys general of all 50 states. The Jackson Hewitt notice program constituted one of the first large chapter 11 cases to incorporate online advertising. In re: Nutraquest Inc., No. 03-44147 (Bankr. D.N.J.) In re: General Motors Corp. et al, No. 09-50026 (Bankr. S.D.N.Y.). This case is the 4th largest bankruptcy in U.S. history. Ms. Finegan and her team worked with General Motors restructuring attorneys to design and implement the legal notice program. In re: ACandS, Inc., No. 0212687 (Bankr. D.Del.) (2007) ("Adequate notice of the Motion and of the hearing on the Motion was given."). In re: United Airlines, No. 02-B-48191 (Bankr. N.D Ill.). Ms. Finegan worked with United and its restructuring attorneys to design and implement global legal notice programs. The notice was published in 11 countries and translated into 6 languages. Ms. Finegan worked closely with Jeanne C. Finegan, APR CV 21 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 35 of 158 !I Heffler Claims Group legal counsel and UAL's advertising team to select the appropriate media and to negotiate the most favorable advertising rates. www.pd-ual.com. In re: Enron, No. 01-16034 (Bankr. S.D.N.Y.). Ms. Finegan worked with Enron and its restructuring attorneys to publish various legal notices. In re: Dow Corning, No. 95-20512 (Bankr. E.D. Mich.). Ms. Finegan originally designed the information website. This Internet site is .:i m.:ijor information hub that has various forms in 15 languages. In re: Harnischfeger Inds., No. 99-2171 (RJW) Jointly Administered (Bankr. D. Del.). Ms. Finegan designed and implemented 6 domestic and international notice programs for this case. The notice was translated into 14 different languages and published in 16 countries. In re: Keene Corp., No. 93B 46090 (5MB), (Bankr. E.D. MO.). Ms. Finegan designed and implemented multiple domestic bankruptcy notice programs including notice on the plan of reorganization directed to all creditors and all Class 4 asbestos-related claimants and counsel. In re: Lamonts, No. 00-00045 (Bankr. W.D. Wash.). Ms. Finegan designed an implemented multiple bankruptcy notice programs. In re: Monet Group Holdings, Nos. 00-1936 (MFW) (Bankr. D. Del.). Ms. Finegan designed and implemented a har date notice. In re: Laclede Steel Co., No. 98-53121-399 (Bankr. E.D. MO.). Ms. Finegan designed and implemented multiple bankruptcy notice programs. In re: Columbia Gas Transmission Corp., No. 91-804 (Bankr. S.D.N.Y.). Ms. Finegan developed multiple nationwide legal notice notification programs for this case. In re: U.S.H. Corp. of New York, et al. (Bankr. S.D.N.Y). Ms. Finegan designed and implemented a bar date advertising notification campaign. In re: Best Prods. Co., Inc., No. 96-35267-T, (Bankr. E.D. Va.). Ms. Finegan implemented a national legal notice program that included multiple advertising campaigns for notice of sale, bar date, disclosure and plan confirmiltion. In re: Lodgian, Inc., et al., No. 16345 (BRL) Factory Card Outlet - 99-685 (JCA), 99-686 (JCA) (Bankr. S.D.N.Y). In re: Jnternat'I Total Servs, Inc., et al., Nos. 01 21812, 01-21818, 01-21820, 01-21882, 01- 21824, 01 21826, 01-21827 (CD) Under Case No: 01-21812 (Bankt. E.D.N.Y). In re: Decora Inds., Inc. and Decora, lncorp., Nos. 00-4459 and 00-4460 (JJF) (Bankr. D. Del.). Jeanne C. Finegan, APR CV 22 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 36 of 158 !I Heffler Claims Group In re: Genesis Health Ventures, Inc., et al, No. 002692 (PJW) (Bankr. D. Del.). In re: Tel. Warehouse, Inc., et al, No. 00-2105 through 00-2110 (MFW) (Bankr. D. Del.). In re: United Cos. Fin. Corp., et al, No. 99-450 (MFW) through 99-461 (MFW) (Bankr. D. Del.). In re: Caldor, Inc. New York, The Caldor Corp., Caldor, Inc. CT, et al., No. 95-B44080 (JLG) (Bankr. S.D.N.Y). In re: Physicians Health Corp., et al., No. 00-4482 (MFW) (Bankr. D. Del.). In re: GC Cos., et al., Nos. 00-3897 through 00-3927 (MFW) (Bankr. D. Del.). In re: Heilig-Meyers Co., et al., Nos. 00-34533 through 00-34538 (Bankr. E.D. Va.). PRODUCT RECALL AND CRISIS COMMUNICATION EXPERIENCE Reser's Fine Foods. Reser's is a nationally distributed brand and manufacturer of food products through giants such as Albertsons, Costco, Food Lion, WinnDixie, Ingles, Safeway and Walmart. Ms. Finegan designed an enterprise-wide crisis communication plan that included communications objectives, crisis team roles and responsibilities, crisis response procedures, regulatory protocols, definitions of incidents that require various levels of notice, target audiences, and threat assessment protocols. Ms. Finegan worked with the company through two nationwide, high profile recalls, conducting extensive media relations efforts. Gulf Coast Claims Facility Notice Campaign. Finegan coordinated a massive outreach effort throughout the Gulf Coast region to notify those who have claims as a result of damages caused by the Deep Water Horizon Oil spill. The notice campaign included extensive advertising in newspapers throughout the region, Internet notice through local newspaper, television and radio websites and media relations. The Gulf Coast Claims Facility (GCCF) was an independent claims facility, funded by BP, for the resolution of claims by individuals and businesses for damages incurred as a result of the oil discharges due to the Deepwater Horizon incident on April 20, 2010. City of New Orleans Tax Revisions, Post-Hurricane Katrina. In 2007, the City of New Orleans revised property tax assessments for property owners. As part of this process, it received numerous appeals to the assessments. An administration firm served as liaison between the city and property owners, coordinating the hearing schedule and providing important information to property owners on the status of their appeal. Central to this effort was the comprehensive outreach program designed by Ms. Finegan, which included a website and a heavy schedule of television, radio and newspaper advertising, along with the coordination of key news interviews about the project picked up by local media. Jeanne C. Finegan, APR CV 23 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 37 of 158 !I Heffler Claims Group ARTICLES Author, "Creating a Class Notice Program that Satisfies Due Process" Law360, New York, {February 13, 2018 12:58 PM ET). Author, "3 Considerations for Class Action Notice Brand Safety" Law360, New York, (October 2, 2017 12:24 PM ET). Author, "What Would Class Action Reform Mean for Notice·?" Law360, New York, (April 13, 2017 11:50 AM ET). Author, "Bots Can Silently Steal your Due Process Notice." Wisconsin Law Journal, April 2017. Author, "Don't Turn a Blind Eye to Bots. Ad Fraud and Bots are a Reality of the Digital Environment." Linkedln article March 6, 2107. Co-Author, "Modern Notice Requirements Through the Lens of Eisen and Mullane" - Bloomberg - BNA Class Action Litigation Report, 17 CLASS 1077, (October 14, 2016). Author, "Think All Internet Impressions Are The Same? Think Again" - Law360.com, New York (March 16, 2016, 3:39 ET). Author, "Why Class Members Should See an Online Ad More Than Once" - Law360.com, New York, (December 3, 2015, 2:52 PM ET). Author, 'Being 'Media-Relevant' - What It Means and Why It Matters - Law360.com, New York (September 11, 2013, 2:50 PM ET). Co-Author, "New Media Creates New Expectations for Bankruptcy Notice Programs," ABI Journal, Vol. XXX, No 9, {November 2011). Quoted Expert, "Effective Class Action Notice Promotes Access to Justice: Insight from a New U.S. Federal Judicial Center Checklist," Canadian Supreme Court Law Review, (2011), 53 S.C.L.R. (2d). Co-Author, with Hon. Dickran Tevrizian - "Expert Opinion: It's More Than Just a Report...Why Qualified Legal Experts Are Needed to Navigate the Changing Media Landscape," BNA Class Action Litigation Report, 12 CLASS 464, May 27, 2011. Co-Author, with Hun. Dickran Tevrizian, Your Insight, "Expert Opinion: It's More Than Just a Report -Why Qualified Legal Experts Are Needed to Navigate the Changing Media Landscape," TXLR, Vol. 26, No. 21, May 26, 2011. Jeanne C. Finegan, APR CV 24 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 38 of 158 !I Heffler Claims Group Quoted Expert, "Analysis of the FJC's 2010 Judges' Class Action Notice and Claims Process Checklist and Guide: A New Roadmap to Adequate Notice and Beyond," BNA Class Action Litigation Report, 12 CLASS 165, February 25, 2011. Author, Five Key Considerations for a Successful International Notice Program, BNA Class Action Litigation Report, April, 9, 2010 Vol. 11, No. 7 p. 343. Quoted Expert, "Communication Technology Trends Pose Novel Notification Issues for Class Litigators," BNA Electronic Commerce and Law, 15 ECLR 109 January 27, 2010. Author, "Legal Notice: R U ready 2 adapt?" BNA Class Action Report, Vol. 10 Class 702, July 24, 2009. Author, "On Demand Media Could Change the Future of Best Practicable Notice," BNA Class Action Litigation Report, Vol. 9, No. 7, April 11, 2008, pp. 307-310. Quoted Expert, "Warranty Conference: Globalization of Warranty and Legal Aspects of Extended Warranty," Warranty Week, warrantyweek.com/archive/ww20070228.html/ February 28, 2007. Co-Author, "Approaches to Notice in State Court Class Actions," For The Defense, Vol. 45, No. 11, November, 2003. Citation, "Recall Effectiveness Research: A Review and Summary of the Literature on Consumer Motivation and Behavior," U.S. Consumer Product Safety Commission, CPSC-F-02-1391, p.10, Heiden Associates, July 2003. Author, "The Web Offers Near, Real-Time Cost Efficient Notice," American Bankruptcy Institute, ABI Journal, Vol. XXII, No. 5., 2003. Author, "Determining Adequate Notice in Rule 23 Actions," For The Defense, Vol. 44, No. 9 September, 2002. Author, "Legal Notice, What You Need to Know and Why," Monograph, July 2002. Co-Author, "The Electronic Nature of Legal Noticing," The American Bankruptcy Institute Journal, Vol. XXI, No. 3, April 2002. Author, "Three Important Mantras for CEO's and Risk Managers," - International Risk Management Institute, irmi.com, January 2002. Co-Author, "Used the Bat Signal Lately," The National Law Journal, Special Litigation Section, February 19, 2001. Jc;rnnc C. Fincg,:rn, /\PR CV 25 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 39 of 158 ,!I Heffler Claims Group Author, "How Much is Enough Notice," Dispute Resolution Alert, Vol. 1, No. 6. March 2001. Author, "Monitoring the Internet Buzz," The Risk Report, Vol. XXIII, No. 5, Jan. 2001. Author, "High-Profile Product Recalls Need More Than the Bal Signal," - International Risk Management Institute, irmi.com, July 2001. Co-Author, "Do You Know What 100 Million People are Buzzing About Today?" Risk and Insurance Management, March 2001. Quoted Article, "Keep Up with Class Action," Kentucky Courier Journal, March 13, 2000. Author, "The Great Debate - How Much is Enough Legal Notice?" American Bar Association - Class Actions and Derivatives Suits Newsletter, winter edition 1999. SPEAKER/EXPERT PANELIST /PRESENTER Chief Litigation Counsel Speaker, "Four Factors Impacting the Cost of Your Class Action Association (CLCA) Settlement and Notice," Houston TX, May 1, 2019 CLE Webinar "Rule 23 Changes to Notice, Are You Ready for the Digital Wild, Wild West?" October 23, 2018, https://bit.ly/2RIRvZq American Bar Assn. Faculty Panelist, 4th Annual Western Regional CLE Class Actions, "Big Brother, Information Privacy, and Class Actions: How Big Data and Social Media are Changing the Class Action Landscape" San Francisco, CA June, 2018. Miami Law Class Action Faculty Panelist, "Settlement and Resolution of Class Actions," & Complex Litigation Forum Miami, FL December 2, 2016. The Knowledge Group Faculty Panelist, "Class Action Settlements: Hot Topics 2016 and Beyond," Live Webcast, www.theknowledgegroup.org, October 2016. ABA National Symposium Faculty Panelist, "Ethical Considerations in Settling Class Actions," New Orleans, LA, March 2016. S.F. Banking Attorney Assn. Speaker, "How a Class Action Notice can Make or Break your Client's Settlement," San Francisco, CA, May 2015. Perrin Class Action Cont. Faculty Panelist, "Being Media Relevant, What It Means and Why It Matters - The Social Media Evolution: Trends, Challenges and Opportunities," Chicago, IL May 2015. Jeanne C. Finegan, APR CV 26 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 40 of 158 !I Heffler Claims Group Bridgeport Continuing Ed. Speaker, Webinar "Media Relevant in the Class Notice Context." July, 2014. Bridgeport Continuing Ed. Faculty Panelist, "Media Relevant in the Class Notice Context." Los Angeles, California, April 2014. CASO 5th Annual Speaker, "The Impact of Social Media on Class Action Notice." Consumer Attorneys of San Diego Class Action Symposium, San Diego, California, September 2012. Law Seminars International Speaker, "Class Action Notice: Rules and Statutes Governing FRCP (b)(3) Best Practicable ... What constitutes a best practicable notice? What practitioners and courts should expect in the new era of online and social media." Chicago, IL, October 2011. *Voted by attendees as one of the best presentations given. CASO 4th Annual Faculty Panelist, "Reasonable Notice - Insight for practitioners on the FJC's Judges' Class Action Notice and Claims Process Checklist and Plain Language Guide. Consumer Attorneys of San Diego Class Action Symposium, San Diego, California, October 2011. CLE International Faculty Panelist, Building a Workable Settlement Structure, CLE International, San Francisco, California May, 2011. CASO Faculty Panelist, "21st Century Class Notice and Outreach." 3nd Annual Class Action Symposium CASO Symposium, San Diego, California, October 2010. CASO Faculty Panelist, "The Future of Notice." 2nd Annual Class Action Symposium CASO Symposium, San Diego California, October 2009. American Bar Association Speaker, 2008 Annual Meeting, "Practical Advice for Class Action Settlements: The Future of Notice In the United States and Internationally- Meeting the Best Practicable Standard." Section of Business Law Business and Corporate Litigation Committee - Class and Derivative Actions Subcommittee, New York, NY, August 2008. Women Lawyers Assn. Faculty Panelist, Women Lawyers Association of Los Angeles "The Anatomy of a Class Action." Los Angeles, CA, February, 2008. Warranty Chain Mgmt. Faculty Panelist, Presentation Product Recall Simulation. Tampa, Florida, March 2007. Jeanne C. Finegan, APR CV 27 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 41 of 158 !I Heffler Claims Group Practicing Law Institute. Faculty Panelist, CLE Presentation, 11th Annual Consumer Financial Services Litigation. Presentation: Class Action Settlement Structures - Evolving Notice Standards in the Internet Age. New York/Boston (simulcast), NY March 2006; Chicago, IL April 2006 and San Francisco, CA, May 2006. U.S. Consumer Product Ms. Finegan participated as an invited expert panelist to the CPSC Safety Commission to discuss ways in which the CPSC could enhance and measure the recall process. As a panelist, Ms Finegan discussed how the CPSC could better motivate consumers to take action on recalls and how companies could scientifically measure and defend their outreach efforts. Bethesda, MD, September 2003. Weil, Gotshal & Manges Presenter, CLE presentation, "A Scientific Approach to Legal Notice Communication." New York, June 2003. Sidley & Austin Presenter, CLE presentation, "A Scientific Approach to Legal Notice Communication." Los Angeles, May 2003. Kirkland & Ellis Speaker to restructuring group addressing "The Best Practicable Methods to Give Notice in a Tort Bankruptcy." Chicago, April 2002. Georgetown University Law Faculty, CLE White Paper: "What are the best practicable methods to Center Mass Tort Litigation give notice? Dispelling the communications myth -A notice Institute disseminated is a notice communicated," Mass Tort Litigation Institute. Washington D.C., November, 2001. American Bar Association Presenter, "How to Bullet-Proof Notice Programs and What Communication Barriers Present Due Process Concerns in Legal Notice," ABA Litigation Section Committee on Class Actions & Derivative Suits. Chicago, IL, August 6, 2001. McCutchin, Doyle, Brown SperJker to litigation group in SrJn Francisco and simulcast Lu four other McCutchin locations, addressing the definition of effective notice and barriers to communication that affect due process in legal notice. San Francisco, CA, June 2001. Mi'lrylhurst llniversity Guest lecturer on public relations research methods. rortlctrH.l, OR, February 2001. Jeanne C. Finegan, APR CV 28 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 42 of 158 !I Heffler Claims Group University of Oregon Guest speaker to MBA candidates on quantitative and qualitative research for marketing and communications programs. Portland, OR, May 2001. Judicial Arbitration & Speaker on the definition of effective notice. San Francisco and Los Mediation Services (JAMS) Angeles, CA, June 2000. International Risk Past Expert Commentator on Crisis and Litigation Communications. Management Institute www.irmi.com. The American Bankruptcy Past Contributing Editor - Beyond the Quill. www.abi.org. Institute Journal (ABI) BACKGROUND Ms Finegan's past experience includes working in senior management for leading Class Action Administration firms including The Garden City Group ("GCG") and Poorman-Douglas Corp., ("EPIQ"). Ms. Finegan co-founded Huntington Advertising, a nationally recognized leader in legal notice communications. After Fleet Bank purchased her firm in 1997, she grew the company into one of the nation's leading legal notice communication agencies. Prior to that, Ms. Finegan spearheaded Huntington Communications, (an Internet development company) and The Huntington Group, Inc., (a public relations firm). As a partner and consultant, she has worked on a wide variety of client marketing, research, advertising, public relations and Internet programs. During her tenure at the Huntington Group, client projects included advertising (media planning and buying), shareholder meetings, direct mail, public relations (planning, financial communications) and community outreach programs. Her past client list includes large public and privately held companies: Code-A-Phone Corp., Thrifty Payless Drug Stores, Hyster-Yale, The Portland Winter Hawks Hockey Team, U.S. National Bank, U.S. Trust Company, Morley Capital Management, and Durametal Corporation. Prior to Huntington Advertising, Ms. Finegan worked as a consultant and public relations specialist for a West Coast-based Management and Public Relations Consulting firm. Additionally, Ms. Finegan has experience in news and public affairs. Her professional background includes being a reporter, anchor and public affairs director for KWJJ/KJIB radio in Portland, Oregon, as well as reporter covering state government for KBZY radio in Salem, Oregon. Ms. Finegan worked as an assistant television program/promotion manager for KPDX directing $50 million in programming. She was also the program/promotion manager at KECH- 22 television. Ms. Finegan's multi-level communication background gives her a thorough, hands-on understanding of media, the communication process, and how it relates to creating effective and efficient legal notice campaigns. Jeanne C. Finegan, APR CV 29 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 43 of 158 !I Heffler Claims Group MEMBERSHIPS, PROFESSIONAL CREDENTIALS APR Accredited. Universal Board of Accreditation Public Relations Society of America • Member of the Public Relations Society of America • Member Canadian Public Relations Society Board of Directors - Alliance for Audited Media /\lli;:inr.P fnr /\urlitcd Media ("AAM") is the recognized leader in cross-media ve1°ification. It was founded in 1~14 as the Audit Bureau of Circulations (ABC) to bring order and transparency to the media industry. Today, more than 4,000 publishers, advertisers, agencies and technology vendors depend on its data-driven insights, technology certification audits and information services to transact with trust. SOCIAL MEDIA linkedIn: www./inkedin.com/in/ieanne-finegan-apr-7112341b Jeanne C. Finegan, APR CV 30 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 44 of 158 Exhibit B Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 45 of 158 5/1/2019 National Geographic, 2019 May PREMIERES MONDAY, MAY 27, THE HOT ZONE AT 9/8C, ON NATIONAL GEOGRAPHIC J/:-c7' ~ATit,N~ '.' ,, RAPHJS~, Copyright© National G~~graphic Society, All Rights Reserved https://archive.nationalgeographic. com/'!iid= 163 724#folio=CV 1 1/3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 46 of 158 5/1/2019 National Geographic, 2019 May IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTION WITH CERTAIN AMERICAN DEPOSITARY RECEIPTS ("AORS"} FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLY OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. Pursuant tn Federal Ru le of Civil Pmredure 2J and Court Order, Mcrrrm,m el al. 1•. Citigmup, inc. c1 al., No, I: l 5-cv- 09185-CM-K;\lf (S.D.N, Y.) lw, bceu provision;i!ly c,•niikd as a class ncrinn for senk'ment purpi~Se!', and a sd1lemen1 for $14,750.000 in cush and ec1inin adJitimrnl non-monetary rdief has bl:'ell proposeJ~ whklt. H appntv1,,;~d. will resolve nil d:,im, in the litigmh,n. This notice 1mivide, bn. For more information visit www.CitibankADRSettlement.com, email [email protected] or call 1,866.680,6138. Copyright© National Geographic Society, All Ri~hts Reserved https://archive.nationalgeographic.com/? iid= 163 724#folio=CV 1 2/3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 47 of 158 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 48 of 158 !f You own or Lease or Previously IF YOU RECEIVED A CASH DISTRIBUTION Owned, purchased, or Leased Certain IN CONNECTION WITH CERTAIN Toyota Sienna Vehicles, You Could Get L. .AMERICAN DEPOSITARY RECEIPTS I Benefits from a Class Action Settlement. {"ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLYOWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. , 10 1n Pursuant lt1 Federal Rnle of Civil Pro,edure 23 and Court Ord.er, A1erry11umet al. v. Citigroup, lru:. er aL No. l:15-cv- 09185·CM-KNF (S.D.N.Y. .) has been pr;wi.~ionally certified as a class a<.:1lonfor settlement p11.rposes and a settlement for $l4,750,{)00 in cai.h and cert.nin additiL't'ml non~inom 11a$l:>ccn proposed, which, if appro,-ed, will resolve in the litiga(1on. This notice p1-o,.,,idci;basic .inforn1atlon. It is. Si deua recibir cJta iiot{ficadOn en espafiol, lltfmenos o vi'sitf! important thst you review the detailed nmk'e (''Notice") found nucstrn pdgina >:~ovotoSie-nt:,{,.t{Jg_QL;fg,_t!i.UJlf!J!.:.!XE!J.. at -the \Vcbsite belo\v. There is a propo:o;ed Settlement in a cla:s.s action lawsuit What is this lawsuit about: Plaintiff~ allege that, during against Toyota concerning certain Sienna vehicles. Those the rckvnnt tlmc period, Citibank K.A. (I.he- "De_posi1ary") include·d in the Settlement have le.gal-rights and options that syskmaticaUy dedm:ted impermissible feeb .for coo Plus FINAL FOUR Arc of History: Why the Three Is Key STRENGTH COACHES College Football's Secret Power Brokers Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 50 of 158 IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTION WITH CERTAIN MILWAUKEE BUCKS AMERICAN DEPOSITARY RECEIPTS ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLYOWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. 1 1 Bud is aware of all this. "Oh, God, yes, it's been brought to bound him, Bud asked Antctokounmpo to do something out a lineup that stood 7 feet> 6' 11", 6' 10", 6 10" and 6 8". Pursuant to Federal Rule of Civil Procedure 23 and Court Order, to my attention," he says. "I can't control or change it in the he's historically bad at. It)s not something he plans to do often-they've only been Merryman et al. v. Citigroup, Inc. eta/., No. 1:15-cv-09185-CM heat of the moment." He pauses. "I'm competitive, I care! Giannis is on board. "He took me in his office and watched together 22 possessions-but the results were intriguing: KNF (S.D.N.Y.) has been provisionally certified as a cluss action My kids think it's hilarious and annoying .... It doesn't re clips of my threes and said, O.K., look, you shoot the ball'? 'Their point differential per 100 possessions was 119.6. i'It for settlement purposes and a settlement for $14,750,000 in cash ally bother me, but it's funny that I literally can't change it." How bad can it be?" He continues. "I1ve gotten more con was f------beautiful!" says Bud. "I just love that we can go and certain additional non-monetary relief bas been proposed, which, if approved, will rcsofvc all claims in,the litigation. This Players' tend to be amused. "We do a little bit of laughing," fident, I've gotten better. And he's like, 'Keep shooting it.' so many different directions." Of course, he notes, this only notice provides basic infonnation. It i,;; important that you review says Brogdon, "Some of the time he looks confused, but you He's yelling all the time to shoot the ball, and I've never works because of Giannis. the detailed notice ("Notice") found at the website below. before, It's a good feeling." On this night, Sacramento hangs around. Finally, with a can also tell he's pissed." Says Korver, "One of the best parts had that What is this lawsuit about: Plaintiffs allege that. during about playing for him is watching him in the film sessions. Under Sullivan, Giannis has moved his release point away little over a minute remaining and Milwaukee up two, the the relevant time period. Citibank N.A. (the "Depositary") But that's how his heart feels, man! He cares so much and from his head, "to let his levers work for him, not against ball pings inside to Lopez, who finds the open shooter on systematically deducted impcnnissiblc fees for conducting he's just so disgusted with what's going on in the court, but him," says the coach. He focuses on a simple, repeatable the left wing. [tis positionless motion in action.A beautiful foreign exchange from dividends and/or cash distributions it's so genuine. He's just someone you want to follow because motion: consistent wrist snap, same fol1ow-through and randomness. The Budenholzer dream. Only that shooter is issued by foreign companies. and owed to ADR holders. The Depositary has denied. and continues to deny, any wrongdoing or he's not just a good person, but he's Giannis. It's the scenario he'll face again and liability whatsoever. great at his craft." again, both this postseason and in the years Who is a Class Member: Pcrso.ns or entities (l) who received Middleton says he appreciates it: to come. whole "The team is on him to take cash distributions from the ADRs listed in Appendix l to the "He's himself, he doesn't try to be any that shot;' Middleton says the next day. "Don't Notice from January 1, 2006 to September 4, 2018, inclusive, and body he's not. If he feels he needs to second-guess it." Giannis doesn't hesitate. The were damaged thereby (the "Damages Class"); and/or (2) who dive on the floor,he does it." Budenhol ball has nice backspin. It rims in and out. The currently own the ADRs listed in Appendix I to the Notice (the zer compares coaching to parenting Bucks win anyway, in overtime. ''Current Holder Class" and, together with the Damages C!ass, the "Class"). his oldest two are now in college, with two more not far away. "Players are ARRING A late Raptors push, Milwau What are the benefits: If the Cour1 approves Lhe settlement, the proceeds, after deduction of C';ourt-approved notice and like kids," he says. "They listen more kee will h...'l.\."Chome court advantage B administration costs, attorneys' fees and expenses, will be than you realize, and they may not throughout the playoffs. The franchise distributed pursuant to the Plan of Allocation in the Notice, or act on what you want but they see ev may win Executive of the Year, Coach other plan approved by the Court. erything." He pauses. "How you treat of the Year and MVP. Expectations have been If you arc a Current Holder Class Member, the Settlement also people, how you interact. Everything." reset. The team talks publicly of getting out of provides additional non-monetary relief related tu the conversion the first round for the first time since 2001. The of foreign currency of cash distributions paid by eligible ADR HE STATED goal forMilwau real goal, of course, is loftier. issuers pursuant to a deposit agreement. T kec this season was to play They know a deep run won't be easy. The What are my rights: If you arc a Damages Class Member and the long game. Introduce the LeBron-less East is as deep as it has been in a you bold (or held) your ADRs directly and are listed on the system, but don't expect to decade. Brogdon isn't due back until the second Depositary's transfer agent records, you are a Registered Holder Damages Class Member and do not have to take any action to master it. So far, Budenholzer esti round, and Giannis is dealing with a recurring be eligible for a settlement payment. However. if you hold (or mates they're 60% of the way there. ankle injury. Teams will try to target Lopez in held) your ADRs through a hank, broker or nominee and are o·ot Spacing is great. Defense is solid. But pick-and-rolls and lure him to the perimeter listed on the Depositary's transfer agenl records, you arc a Non despite having the league's best record with lineups full of quick shooters. Registered Holder Damages Class Member and you must .mbm(r (57-20), wOrk remains. "From a coach Down the road, more obstacles loom. Ante- a Claim Form, postmarked by August 12, 2019. to be eligible for a settlement payment. Non-Registered Holder Damages Class ing standpoint, Bud is doing an amaz- tokounmpo's contract is up after 2020-21; "We Members who do nothing will not receive a payment, and will be 11 ing job," says a scout who saw the team recently, But I balance. Still, the stroke is herky-jerky. Giannis holds the think about it strategically every day," says Horst. Other bound by all Court decisions. don't know if I fear them at the highest level of the playoffs. ball way in front of him with those long arms, as if it's on franchises can promise brighter glares, glitzier supporting If you arc a Class Member and do not want to remain in the Class. Giannis's inability to shoot hurts them." fire. His wrist flip is exaggerated. Middleton says Giannis casts. Horst hopes that by building a basketball culture akin you may exclude yourself by request. received by June 7, 2019, Ah, yes, the shooting. It seems unfair to harp on his one sinks them in practice-"! won't bet him"-but games bring to the Spurs1 and the Warriors'-inclusive, personal and "laser in accordance with the Notice. lf you exclude yourself, you will flaw, but there it is. This year Giannis is shooting 24.5% a different pressure. "They'll have five guys in the restricted foctlsed on excellence'1-the Bucks can re-sign him. (So far, Ml. he bound by any Court decisions in this litigation and you will from behind the arc on 2.7 attempts per game, putting area and I'm like, 'You have to shoot that!' "says Sullivan. Giannishas said he loves Milwaukee and shows little interest !.W.!J:§.f_f.fr_LJl.JlJ..U'.W.fJJ.1,but you will retain any right you may have to pursue your own litigation at your own,expense concerning the him on pace for one of the 10 worst high-volume seasons "And he'll say, 'I'll just go dunk on all of them.' And he's in, as Bud puts it, "all that bulls--- and fame.") settled claims. Objections to the settlement, Plan of A!iocation, in history, amid chuckers like Charles Barkley and Josh not wrong. He might.'' For now, though, the Bucks will focus on what they hope or request for attorneys' fees and expenses must be received by Smith. And yet, to reach their goal, the Bucks might Giannis Even so, just the promise of Giannis becoming a wing is the first of many title pursuits. Win or lose, their coach June 7, 2019, in accordance with the Notice. need to jack more. shooter allows Bud to experiment. Against the Kings he will stalk the sideline, looking a bit disheveled no matter A hearing will be held on .July 12, 2019 at 10:011a.m,, before the This is what Bud has told him since last summer. I don't rol1s out the team's newest acquisition, 6' 10" Nikola Mirotic, how pressed his suit may be. He will pause at times, hands Honorable Colleen McMahon, at the Daniel Patrick Moynihan care if you go O for 6, I don't care if we lose because of it. It another tall sniper who allows Budenholzer to go, as he says on his hips, appearing bewildered. Disbelieving. Disgusted. United States Courthou~e. 500 Pearl Street, New York, >,iy might not happen this week, this month or this year, but I don't "counterculture/' combatiilg smallball lineups with Lopez, Meanwhile, the team's star will curse himself for missed 10007, to determine if the settlement, Plan of Allocation. and/ or request for fees and expemes should be approved. Supporting care. For U$ to get where we want to go, you're going to be a Giannis, Mirotic and the 6' 8" Middleton. Once, Bud went shots. He'll stew about his turnovers. He'll take copious notes. papers will be post~d on the website once flied. I:! better shooter. It makes sense even if there's a certain irony even bigger. "When Brogdon and Bledsoe were out against Together, the pair will press forward. United by undis- to it. Given the ultimate weapon, with only his imagination the Jazz, he says he "channeled my inner Nellie" and ran guised passion, indifferent to how it looks. • Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 51 of 158 tke • lllennlals 1 flocking· flnan~•~tiaru 1ve Ramsey. his advice 11nd? Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 52 of 158 IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTION WITH CERTAIN AMERICAN DEPOSITARY RECEIPTS ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLY OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. Pursuant to Federal Rule of Civil Procedure 23 and Court Order, Menyman et al. v. Citigroup, Inc. et al., No. I: I 5-cv-09185-CM Fidelity, BlackRock (iShares), Vanguard, KNF (S.D.N. Y.) has been provisionally certified as a class action and Schwab, these funds offer both for settlement purposes and a settlement for $14,750,000 in cash convenience and a lower price. "It's and certain additional non-monetary relief has been proposed, which, if approved, will resolve all claims in the litigation. This impossible to beat the expense ratios notice provides basic information. It is important that you review on broad-market index funds," says Benz. the detailed notice ("Notice") found at the website below. The three core areas you want to focus What is this lawsuit about: Plaintiffs allege that, during on: total U.S. stock market, total interna the relevant time period, Citibank N.A. (the "Depositary") tional market, and total U.S. bond systematically deducted impermissible fees for conducting market indexes. foreign exchange from dividends and/or cash distributions issued by foreign companies, and owed to ADR holders. The Another portfolio option is a target Depositary has denied, and continues to deny, any wrongdoing or date fund, which holds a mix of stocks liability whatsoever. and bonds that grows more conservative Who is a Class Member: Persons or entities (I) who received as you age and can be a "superefficient" cash distributions from the ADRs listed in Appendix 1 to the way to save for retirement, according Notice from January 1, 2006 to September 4, 2018, inclusive, and to Benz. were damaged thereby (the "Damages Class"); and/or (2) who currently own the ADRs listed in Appendix I to the Notice (the Of course, if you plan on consolidating "Current Holder Class" and, together with the Damages Class, your holdings, don't overlook taxes. In the "Class"). taxable accounts, selling fund shares that What are the benefits: If the Court approves the settlement, have appreciated in value likely means the proceeds, after deduction of Court-approved notice and recognizing a taxable gain, even if you administration costs, attorneys' fees and expenses, will be distributed pursuant to the Plan of Allocation in the Notice, or immediately reinvest the money. In other plan approved by the Comt. tax-advantaged accounts like 40l(k)s and If you are a Current Holder Class Member, the Settlement also IRAs, capital gains are not an issue. provides additional non-monetary relief related to the conversion of foreign currency of cash distributions paid by eligible ADR DON'T CASH issuers pursuant to a deposit agreement. Finally, turn your attention to cash. What are my rights: If you are a Damages Class Member and Default options like brokerage sweep you hold (or held) your ADRs directly and are listed on the accounts can have notoriously low yields, Depositary's transfer agent records, you are a Registered Holder Damages Class Member and do not have to take any action to says Benz. be eligible for a settlement payment. However, if you hold (or Instead, check out what's available held) your ADRs through a bank, broker or nominee and arc not from online savings accounts. Among listed on the Depositary's transfer agent records, you are a Non the best available rates, according to Registered Holder Damages Class Member and you must submit a Claim Form, postmarked by August 12, 2019, to be eligible MONEY's annual Best Banks survey: for a settlement payment. Non-Registered Holder Damages Class accounts at Marcus by Goldman Sachs Members who do nothing will not receive a payment, and will be and Synchrony, which each offer bound by all Court decisions. a savings rate of 2.25%. In contrast, If you arc a Class Member and do not want to remain in the Class, brick-and-mortar banks offer savings you may exclude yourself by request, received by June 7, 2019, rates as low as 0.1%, according to our in accordance with the Notice. If you exclude yourself, you will not be bound by any Court decisions in this litigation and you will Best Banks database. Another good not receive a pavment, but you will retain any right you may have option is putting money into CDs, to pursue your own litigation at your own expense concerning the especially if you're looking for a low-risk settled claims. Objections to the settlement, Plan of Allocation, cash account for retirement. Banks such or request for attorneys' fees and expenses must be received by June 7, 2019, in accordance with the Notice. as Ally and Barclays offer some of the A hearing will be held on July 12, 2019 at 10:00 a.m., before the highest rates around: almost 3% for a Honorable Colleen McMahon, at the Daniel Patrick Moynihan 12-month maturity. United States Courthouse, 500 Pearl Street, New York, NY "You just want to make sure you're 10007, to determine if the settlement, Plan of Allocation, and/ not letting your money lie fallow," says or request for fees and expenses should be approved. Supporting Benz. "It pays to be discerning." IZl papers will be posted on the website once filed. For more information visit www.CitibankADRSettlement.com, email [email protected] or call 1.866.680.6138. Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 53 of 158 ·' 22 YOUR HEALTH 28fRAUDWAl SMART STEPS THENICEfA1 HOWTOCARE. ·THESE TRAll FOR YOUR FEET YOUATARGI HOTNEWVH AARPSPONSORSI LAUNCHES MONEl "DVICE SERIES YOUR AARP / PAGE40 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 54 of 158 IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTiON WITH CERTAIN Your Money AMERICAN DEPOSITARY RECEIPTS ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU BY JANE BRYANT QUINN CURRENTLY OWN SUC.H ADRS, YOUR RIGHTS MAY BE AFFECTED. Pursuant to Federal Rule of Civil Procedure 23 and Court Order, Merryman et al. v. Citigroup, Inc. et al., No. l:15-cv-09185-CM-KNF (S.D.N.Y.) has been provisionally certified as a class ~ction for settlement OLLEGE purposes and a settlement for $14,750,000 in cash and certain additional non-monetary relief has been proposed, When helping to pay for a grandchild's education, choose which, if approved, will resolve all claims in the litigation. This notice provides basic information. It fs important that you review the detailed notice ("Notice") found at the the right investment account-or iust use cash website below. What is this lawsuit about: Plaintiffs !!liege that, during the relevant time period, Citibank N.A. (the "Depositary") o you want to help ly in stock funds until the cl systematically deducted impermissible fees fot conducting finance college for a is 10, and only then start mov foreign exchange from dividends and/or cash distributions issued by foreign companies, and owed to ADR holders. grandchild? You can to bonds. ·Fees and expenses The Depositary has denied, and continues to deny, any get special tax breaks lower ifyou open an account"' wrongdoing or liability whatsoever. by investing in certain accounts, a state's "direct-sold" plan, rat Who is a Class Member: Persons or entities (I) who which I'll get to in a moment. But than one sold by a commissior received cash distributions from the ADRs listed in Appendix 1 to the Notice from January 1, 2006 to don't forget plain old cash. .financial adviser. September 4, 2018, inclusive, and were damaged thereby There's no paperwork with Payments to a school frm (the "Damages Class"); and/or (2) who currently own the cash, other than writing a check. . of grandparents grandparent's 529 can redl ADRs listed in Appendix I to the Notice (the "Current say it's important Holder Class" and, together with the Damages Class, . There's little or nothing to deal for their grand student aid by 50 percent the "Class"). with at tax time. When tuition children to get a the amount contributed. What are the benefits: Ifthe Court approves the settlement, bills start arriving, you can give higher edu_cation. you might consider putting I the proceeds, after deduction of Court-approved notice and money to the parents to help de money into a parent-owned t administration costs, attorneys' fees and expenses, will be distributed pursuant to the Plan of Allocation in the Notice, fray their cost. If you give it after in stead. You may lose a state or other plan approved ~y the Court. · they file their financial aid form, break, but only 5.64 percen1 If you are a Current Holder Class Member, the Settlement it won't even show up as an asset parental assets are counted wl: also provides additional non-monetary relief related to the . that might reduce an aid award. calculating student aid. You< conversion of foreign currency of cash distributions paid by eligible ADR issuers pursuant to a deposit agreement. Cash doesn't require making also avoid affecting aid by m. commitments years in _advance. ing 529 payments or giving c, What are my rights: If you are a Damages Class Member and you hold (or held) your ADRs directly and are listed When your grandchild reaches to your grandchild during the l on the Depositary's transfer agent records, you are a college age, you can assess your two years of college. That's I Registered Holder Damages Class _Member and do not have own needs and decide what you 21% cause the government's finarn to take any action to be ·eligible for a settlement payment. of grandparents However, if you hold (or held) your ADRs through a bank, can afford to give. (Cash gifts to an say they spend aid formula for a particular yea broker or nominee and are not listed on the Depositary's individual not exceeding $15,000 money on their based on family finances from t transfer agent records, you are a Non-Registered Holder per year, or $30,000 from a cou grandchildren years earlier. Money you chii: Damages Class Member anq you must submit a Claim ple, don'trequireagift-taxretum.) for school or this fall for an entering freshrr. Form, poshnarked by August 12, 2019, to be eligible for college tuition. a settlement payment.. Non-Registered Holder Damages If you'd rather get some tax could reduce her aid in herjun Class Members who do nothing will not receive a payment, breaks and want to start a college year, but money you give for a. and will be bound by all Court decisions. fund far ahead of time, there are nior won't count against aid If you are a Class Member and do not want to remain in the Class, you may exclude yourself by request, received by two main ways to go. fered in her junior or senior ye lune 7, 2019, in accordance with the Notice. If you exclude Using a state's 529 plan, you can Find more info about using a 5 yourself, you will not be bound by any Court decisions invest money that grows tax-free for grandkids at SavingForCollE in this litigation and you will not receive a pavment, but you will retain any right you may have to pursue your and can be withdrawn tax-free .com/grandparents. For a list own litigatjon at your own expense concerning the settleµ for higher education. Your state plans sold by states, search onli ~!aims. Objections_ to the settlement, Plan of Allocation, or mightevengiveyouataxbreakfor for "NerdWallet 529.'' Nearly request for attorneys' fees and expenses must be received ~Y June 7, 2019, in accordance with the Notice. contributing to thy account. You $4,075 states and the District of Colu is the average A. hearing will be held on July 12, 2019 at 10:00 a.m., pick from a list of mutual funds, bia have plans, and most sta1 ~efore the Honorable Colleen McMahon, at the Daniel the most popular of which invest amount those let you open an account ever grandparents Patrick Moynihan United States Courthouse, 500 Pearl more in stocks when your grand you're not a resident. Street, New York, NY I 0007, to determine if the settlement, spend annually. Plan of Allocation, and/or request for fees and expenses child is young, then shift to bonds Your other good option i: ;hould be approved. Supporting papers will be posted oh as college approaches. "But they switch too Roth IRA. If you're 50 or older, you can cc :he website once filed. qQickly;' says Mark Kantrowitz, the publish tribute up to $7,000 from earnings this ye er of SavingForCollege.com. For higher re Withdrawals are tax-free as long as you' For more information visit turns, he advises that you invest aggressive- passed age 59½ and have had an account J www.CitibankADRSettlement.com, email [email protected] or call 1.866.680.6138. Ai\FU• BULLETIN/ Real Possibilities MAY 2 019 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 55 of 158 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 56 of 158 IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTION WITH CERTAIN [ AMERICAN DEPOSITARY RECEIPTS ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLY OWN SUCH (Rome, continued 1rom page 107) sc,~med unfathomable to !eilve before which \vas being made just foros. I ADRS, YOUR RIGHTS MAY BE AFFECTED. we'd gotten our bearings in Rome, don't think I've ever been h<1ppierin my hungry soon, and tJtisJin't r\nwrica, As it· l11rne "These are the mo,~t~ianr st:il\JC<; thf:v i1nderstanJ <1lffc's work when and thought, Thi:1wu.s why they needed from afor, lk had bought a fanciful old m;mor we've S'(~enso far;' lhe older boy said. the~ couldn't even understand a lifo? I lo -'ff'elhe world. You t€H them, "The house up the mad in 2012, mostly as a place "The peuises. .ire ;ilso giant,"' the dor;'L know. I ~ue.s.;,,you hav,:,to sL1rt ;:it oldness Is the point," in hopes that they v,·here his\.vholt~ familv could live-his wife and younger one .igreed. "Louk .it the the beginning with them, You have to \.Viii undt:'rstand that 1hi!stoo shall p<.m. two of b.!sthre{:' 6ri·owr;·llp i:.:h!ldrenarc: in the nipples. They are g:i_g,intk."This \,\,,1: -.;tartwith the, most basic vndcrst 108 n,v:i •Ct.Su<>; I ,HY or,1:, Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 57 of 158 BCJUNDARIES . •·····1.NTHEAGE · L®FTRUMP Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 58 of 158 IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTION WITH CERTAIN AMERICAN DEPOSITARY RECEIPTS ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLY OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. TELEVISION Pursuant to Federal Rule of Civil Procedure 23 and Court Order, New year's Eve Merryman et al. v. Citigroup, Inc. et al., No. l: l 5-cv-09185-CM KNF (S.D.N.Y.) has been provisionally certified as a class action NOW IS A GREAT TIME TO REWATCH for settlement purposes and a settlement for $14,750,000 in cash Killing Eve's Season 1 finale-because and certain additional non-monetary relief has been proposed, Season 2 picks up exactly 30 seconds after which, if approved, will resolve all claims in the litigation. This its unnerving cliff-hanger. A rare encounter notice provides basic information. It is important that you review between rogue MI6 operative Eve Polastri the detailed notice ("Notice") found at the website below. (Sandra Oh, fresh off a Golden Globes What is this lawsuit about: Plaintiffs allege that, during win) and glamorous, psychotic assassin the relevant time period, Citibank N.A. (the "Depositary") Villanelle (Jodie Comer) has left our shell systematically deducted impermissible fees for conducting shocked heroine soaked in the blood of her foreign exchange from dividends and/or cash distributions issued by foreign companies, and owed to ADR holders. The suddenly absent foil. Depositary has denied, and continues to deny, any wrongdoing or This image sets the tone for a new liability whatsoever. season, premiering April 7 on BBC America, Who is a Class Member: Persons or entities (1) who received that inverts the thriller's original cat-and cash distributions from the ADRs listed in Appendix l to the mouse game. Now Eve has the upper hand: Notice from January 1, 2006 to September 4, 2018, inclusive, and Having earned the grudging respect of the were damaged thereby (the "Damages Class"); and/or (2) who boss who'd fired her, Carolyn (Fiona Shaw), currently own the ADRs listed in Appendix I to the Notice (the she's back on the job. And Villanelle is in "Current Holder Class" and, together with the Damages Class, the hospital, trying to heal, the "Class"). hide and plan her escape from What are the benefits: If the Court approves the settlement, Paris all at once. 'How do you the proceeds, after deduction of Court-approved notice and It's a canny role reversal, movefron1 administration costs, attorneys' fees and expenses, will be even if Villanelle's plight a cat and distributed pursuant to the Plan of Allocation in the Notice, or veers toward melodrama. mouse to a other plan approved by the Court. Such clumsiness may be cat and cat?' If you are a Current Holder Class Member, the Settlement also due to the departure of provides additional non-monetary relief related to the conversion original lead writer Phoebe SANDRA OH, of foreign currency of cash distributions paid by eligible ADR Waller-Bridge, whose scripts on the challenges issuers pursuant to a deposit agreement. of Season 2, in What are my rights: If you are a Damages Class Member and balanced the glossy spy Entertainment you hold (or held) your ADRs directly and are listed on the plot with details grounded Weekly in real, mundane life. Her Depositary's transfer agent records, you arc a Registered Holder replacement, head writer Damages Class Member and do not have to take any action to be eligible for a settlement payment. However, if you hold (or Emerald Fennell, doesn't seem to grok held) your ADRs through a bank, broker or nominee and arc not the characters on such a profound level listed on the Depositary's transfer agent records, you are a Non though she keeps episodes so fizzy and Registered Holder Damages Class Member and you must submit fast-paced, you hardly notice. Besides, a Claim Form, postmarked by August 12, 2019, to be eligible at this point, Oh and Comer so fully for a settlement payment. Non-Registered Holder Damages Class inhabit Eve and Villanelle, they could Members who do nothing will not receive a payment, and will be probably carry on without any script at bound by all Court decisions. all. Killing Eve may no longer be the single If you are a Class Member and do not want to remain in the Class, best show on TV, as it was in 2018. But it's you may exclude yourself by request, received by June 7, 2019, still the most exhilarating one. - J.B. in accordance with the Notice. If you exclude yourself, you will not be bound by any Court decisions in this litigation and you will not receive a pavment, but you will retain any right you may have to pursue your own litigation at your own expense concerning the settled claims. Objections to the settlement, Plan of Allocation, or request for attorneys' fees and expenses must be received by June 7, 2019, in accordance with the Notice. A hearing will be held on July 12, 2019 at 10:00 a.m., before the Honorable Colleen McMahon, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007, to determine if the settlement, Plan of Allocation, and/ or request for fees and expenses should be approved. Supporting papers will be posted on the website once filed. For more information visit After a bloody season finale, Eve (Oh) cleans up www.CitibankADRSettlement.com, email [email protected] or call 1.866.680.6138. , Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 59 of 158 Exhibit C Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 60 of 158 INVESTOR'S BUSINESS DAILY WEEK OF MARCH 11, 2019 B 3 97 9 2 26 18 2() ~:~~~~~:Tc::panyspec,!1~;::,::1::tr onic~;asu•r~~g •l + 0 8 21 29 1 2] ~~:;~es1gnerfocumon~:~e\r~:y~~3~ mc+~~s,s;::e~:::a:~:~. 5 3 3 6 15 65 2 2 r:~~~~l:d~:~~!rship lo:~s:~ o~ n:~1;a\ ga: 1':a~~:!rt, ::rag:~ O 1 527 23 sQ+~~m~~,!es•q~ ar: \ ~:'!'°-~".:'.'.'::".""'.':""'."":__,,--,-- ---'--,-cc'-"-'-"-'---'-'---'-"-"'--~~ ~~'::"::-""!."':~~-~~ :::;,~~~:p~;::f~ers sm!~l~:e;;h:~t:~y;:~\ 1 Know Your Company! Pick stocks with strong: fundamentals & sound base patterns. Verify CAN SLU,1 vitals ~ big earnings, sales, return on equity or profit margins, fond .~ponsor~hip & market in uptrend. Reatl stock story on investors.com. Check a chart. Is your stock near a sound buy point? Or is its price extended over 5% from a chart base and more risl..... y? IF YOU RECEIVED A CASH DISTRIBUTION IN THE SUPERIOR COtrRT OFTIIE S'l~\TE OFAIUZO:-;,\ IN CONNECTION WITH CERTAIN IN ANI) FOR THE CO!i:"ff\" OF ;\IAIUCOPA AMERICAN DEPOSITARY RECEIPTS PtTBLJC E~!PLOYEES' RETIREl".tENTSYSllil".t or ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS l".IISSJSSIPPI, individual!y,mdonhchalfofall o!hcrs C:m·i'-o.: C.'\'2016-050-480 DEPOSITARY OR IF YOU CURRENTLY OWN SUCH simil Who is a class Member: Person<; or emilies (I) ,,ho recci1cd ca,h dimihu1ions YOU ARE HEREBY ;,.;OTIFlED, pursuanl toan Ordcrof1hc SupcriorC01>t1 of1he S!aleof,\rizona. ~larkopa County. 1ha! from the ADR, Ji,;ied in Appendi.\ ! to the Notice from fanu~ry I, 2006 to I.cad Plainliff Public Employee,· lktircmen1 S;,stcm of ~l,s,;;s..,ppi. on t>d,aU' of itself and 1hc Senkmcnt Cl,1%, ,md Sepiemher 4, '.!018, indu,i,e, and \\ere damaged lherehy (the "Dnmages Clas~·'); Sprotits, J. Dougla~ Sander;. A111in N. \!aNdia, Donn.1 Bcrlm~ki. Andrc11 S. Jha,1;,r, Shon Boney. Joseph Fortuna1o, and/or('.!) who curren1ly o"n 1he ADR, li,te PT F .\SF nn ~nT cn~T.\("T TIIF, ('()J:nr, lW,FE;\jfJ,\ 'ffS, on m:n::-,;D,\NT),' CO\iNSEL HEG,\llll11'G TIIIS J\OTl('E. Tuesday, 3/12 I 9am PT/12pm ET! lnvestors.com/msweblnars D.11cd. Mardi II. 2019 BY ORDER OF TIJE Sl TPER!OR COURT or Tl 11: S'UTE OF AR17,0:,.;A. i\l.\R!COPACOl;;,.;n· Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 61 of 158 INVESTORS COM .A J6 Vy_E_EK C?t.f:1A~_CH 2_~--~_/?.1? MUTUAL...... - ...... FUND PERFORMANCE- ...... ,~, ,,,,,,.,_,,, _____J,_1 '""~"'""'''..-'--""''- """"'"'"''""""'------'-1 ,,,,,,,,,,.._lu""""--' 8est%Changelast16Weeks: 206mil fr;Jnk/TmpFrAGold&Prcc + 17 837mil /itlil Berkshirefows 206mil 4 *+ 26 + 15 529mil + 8 l.7bil *+ 24 2i6mil + 8 1.2bii + 22 787.mil + 8 lilJOrnil + 22 954mrl 21 200mil + 7 19l!l'I + ______Vun[cl1!ntlColdA I 10 ~O.lmil Pricer ~s Glob Tech + lR 47hil *+ 21 206 m,! Tocquc~illeGold + lR 914mil l.lbil + 17 ~-6 bil F11lclily SllGuld + 18 Arner Cent Inv GlbGo!d + 18 350mil I J7 Ullil Best%Changelas!39Weeks: *+ rt 21/imil WellsfJr!)oAUlil&Tclcm 1· 19 392mil + 1/i 19.lb'I frank/TmpfrAUtili!ies + 19 6bil + 16 8&1mll V;ir.gu;irdlmbutill::lxAdm + 17 4.lbil ------Pgimlnves!Utility 1- 16 26bil ll~rksllireror.us *+ 15 206mil 206mil FrdelilyPharm + 14 Ubil 216mil l'ulnamAGlbUtility + 14 149mil 751mil AmerCe11tlnvUtilit1es + M 3?7mll bil O.mension~lflealEsrnte 1- 13 9bil 25 83-tmil 28Jm,I ;il(:.iftrd 1nnlJ!l'ltl1nj11:tjuv ;i~~1V1N 1rn,1m,tj111J~Nt llll:1Pll>l ltmjul'11j1njK«j:-uv Plflw~ 'i 'S JJ~l.l:U~ hf: IF YOU RECEIVED A CASH DISTRIBUTION IN CONNECTION WITH CERTAIN AMERICAN DEPOSITARY RECEIPTS ("ADRS") FOR WHICH CITIBANK N.A. SERVED AS DEPOSITARY OR IF YOU CURRENTLY OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. Pur<.uant to FederJI Rule of C.i,il Procedure 21 an1I Court Or Whal <11e 111v tii;l,l~. If )"u .i,c .i D.in,,,gt, Cl.111 Me111her :11u! you hold tor h~ldj )flur ,'\U!t1 (l,r~~IIJ ~11,! ~,,: t,1kd ,,,, lhc JJcµ<"JIJ1y'., 11,111\f~I ,IJ!tlll record 1. you nre a Re~i11ered Jloldu Dam:ize< Cla11 Member and r/rl...11l1l. h.11,• Ill !.1!.,; UII}' ,H,lhJII II! h~ Jllgl/JI~ wru Jt!llt1\\l1\111~i•ll~1\l. lh,.,,,,,. ,J )"" ho,ld /or ~d,ll yni1r ADR11hm11rh a h~n\· hm\Pf or nf1•nit1H 111,I 1r~ n<>! tirl~rl on lh•l f"l>\l'"1;1,1J''' l!m,fo1 'l'"III l"""lil" )'"I 1'1' II t•Ti,n l"l•dlll!l'!,1 IJ!l,111 fhmJ.ga, Cla•.1 Member and you !ll1.0J...JJ.UJJ!li.l. n Claim form, pMfm,1rktd by ,rngiw /2, .tUJ Y. 10 M B4 I Monday, March 11, 2019 THE WALL STHEET JOURNAL. 7 WSJ.com/Tech Airbus Shifts Focus to Smaller Airliners European company's bus's top job. He currently Without the A:'180, Tou Echoingll{)('ing'slongstanding runs the company"s Commer· louse, France-based Airbus is argument against the A380, decision leaves Boeing cial-planebusiness. left to compete at the top end Mr. Faury said demand for fil777Xordr.,~ A350-1000 dominating the Airbus la~t month said that in of the airliner market with its long-haul planes is focused 2021 it would stop building the biggest twin-aisle plane, the more on smaller, V<>ry long big-plane market A:!80, which never turned a Emirates A350-1000. It carries on aver· rangeaircraft. profit.Airlinesshunnedthe555- Qata'A1rways nge366 pass<.>ngers and has a G<.>Uing that bet right is vi BYROBERTWAU. seat double-deckei; spooked by listpriceof$3GG.Smillionbe tal for the incoming CEO to AND DANIE!, MICBAEI-~ the11eed tofillsomanyseats Ca\h;,yPa(,fKA1rw2.ys fore industry·standard dis· prevent Boeing from stealing and by the plane's predfacount ANA counts, compared with $442.2 an edge in their tightly fought BRUSSEL':i-European plane pricetag:S115.6million. million for the largest of two duopoly. maker Airbus SE for two de· Airbus's decision leaves Lufthansa versions of Boeing's 777X. Boeing's Mr. Mounir says cades was the biggest cham Boeing dominating the big Smgapo-eA1rlmes The two manufacturers also the current competitive land pion of the world's largest air plane market. That is a big battle over the smaller wide· scape gives his company an liners.AflerdumpingtheA380 switch: Boeing for years deni Br1t1shA1rw3ys hodymarket,wheteB{)('ingof edge. "Theieisnorealcompe superjumbo earlier this year, grated market prospect,; for Urndcnt1f1cd fers the 787 Dreamliner and tition,"hesaid. The size of the the jet maker is all but ceding big, four-engine planes after Airbus the A330 and 777X gives it a per-seal fuel· the market for the veiy biggest Airbus bet on the A:!80. Now EM·2.dA1rways A350-900. bum advantage over the rival Tota1orderl> airliners to rival Boeing Co. theU.S.planemakeristheone A1rCara1bes Airbus previously studied Airbus plane, he said, adding Guillaume Faury, who takes pushing the big planes, albeit stretching the A350 to add the Boeing plane also has a the reins as chief executive mostly with more efficient A1rl~asc more seats but shelved the larger fuselage. next month, said the market two·e11ginemodels.Itiswind· As1;maAul1nes project to focus resources on Boeinghassecured777Xor• for planes with 400 seats or ing down production of its upgrading smaller models. ders from the world's biggest more is too small to fight over. own four-engine jumbo, the lran/111 Airbus didn't see much de· carriers, including Emirates Thecompanyinsteadwillstep humpbacked 717. Japan Airline~ mand for the larger plane, AirHne, Deutsche Lufthansa up it~ battle with Boeing for a Boeing this week will for 168 which also could have further AG and Qatar Ainvays Co., rangeofsmallerjetsthatmake mally unveil its new 777X, a La:an1 weakened demand for the many of the world's biggest upthebulkofthecommercial 125-seat twin-engine long-haul V1rg1nAtlant1c A380 when Airbus still sold large-plane buyers. But even airlinerfleet. plane. It is even !ollger than it.Mr.FaurysaidAirbushas theyseelimiteddemandinthe "Itmightmakemoresense the 747 jumbo jet and more 0pl~nes 25 50 75 100 125 150 no new plans to enlarge the segment. to be more and more competi fuel efficient. British Airways Aa50. "The airlines that have or tive servh1g 95% or 98% of the parent JnternationaJ Consoli ''We will see whether there dered it aretheonesyou'dex market than trying to invest a dated Airlines Group SA last has won more 777X orders be· Airlines will need 1,500 or are,atsomestage,reasonsto pect to order it," said Willie lot of money to capture the month announced an $18.5 bil· fore the plane even takes off more 777X-size planes, said stretch a bit the aircraft and to Walsh, lAG's chief executive, small remaining part of the lion order for that airliner to than Airbus secured for the Ihssane Mounir, Boeing's se· which extent theie is any mar• after recei1tlyb,iying the new market," Mr. Faury said in an replace thecarrier'saging747 A380 over the 19 years it was nior vice p1esident for com- ket largeenoughtojustifyfur· Boeing plane. "I thillk it's a interview ahead of taking Air- jumbo jet fleet. Boeing already for sale. mercialsales. titer investment," he said. small market." cently, the World Wide Web Co11~ortium ratified a stan Renewable Help for dard called WebAuthN, which allows websites to au thenticate users \vith bio Power Line Login Woes metric informati011, or physi cal objects like security keys, andskipthewholepassword Is Planned Is Coming thing altogether. You could log into Facebook or Gmail ContinuedfrompageBI ContinuedfrompageBl or Amazon just by scanning long-distance, direct-current set an end date for your ses your fingerprillt, or with a power lines in the U.S. So far, sion, automatically closing facial-recognition scan. the aboveground efforts have your connection to the site Imagine logging into every been delayed or derailed by or app after a specified thing the way you currently permitting delays as well as amount of time. This seen· log into your phone. local and political opposition. iityrisk is also why you All that is left is for every Building a belowgrmmd line have to confirm your iden· app, device and website to is nearly twice as expensive tity when changillg account integrate these new stan per mile as an aboveground settingsorshippillgpur dards. Which is going to take line on towers. chases to n(.>Waddresses. years.Meanwhile, there are Developers have been try· To illustrate, let's look at acoupleofwaystomake ing to move electricity from our own wsj.com. Years ago, your logging-in life easier. one large regional grid to an• the developers building The Ifyouuseapasswordman other, to take advantage of Wall Street Journal's website agersuchasDashlaneor electricity price arbitrage, as decided that sessions should lPassword,itcanautomati· well as abundant renewable expire after 15 days,said callylogyouintomostsites energy in the Upper Midwest Ramin Beheshti, chi(.>fprod· on desktop and mobile. In a and Great Plains. uct and technology officer at delightfullJitofirony,you'll This project is the second the Journal's publisher, Dow still have to enter your pass· large renewable-energy invest• Jones. word manager's password pe· me11t that Copenhagen Infra Everyappandservicehas liodically, and even U1ese apps structure Partners has made in The project would help supply energy to Chicago, al>Wellas to states like Ohio and Pennsylvania. it,;ownversionofthisrule. don't always work with in-app theU.S.Italsohasa50%stake Dashlane, the pa%word man· browsers.Still, in general, with Avangrid Renewables in nior partner at Copenhagen A spokesman for Siemens with bringing complex infra ager, requesl~your password they turn the drawn-out login Vineyard Wind, an offshore Jnfrastrncture Partners, said said tl1e German company's fi. structureprojectsonline."Sie everyl4days.Evernotewi11 piocessintoaclickort\vo. wind farm off the coast of the project fits into his fund's nancing arm was backing the mens's high-voltage, direct keep you logged in for 30 be You can also take advantage Massachusetts. focus on "critical energy infra project to help "meet the current technology will be fore kicking you back out. of your browser's ability to ChristianSkakkebaek, ase- structure assets." many challenges associated used in the project. Okla, which gives users ac autofill data and passwords, ------~ cesstom11ltipleworkapps through a single login, let~ it,; corporatecu~tomersdecide howoftenemployeesmlt'it cough up a password. When you only had one computer, entering pass words every few weeks didn't feel so arduous. Now youhave!aptopsandphones and tablets and maybe even smart TVs, all logged in to the same thing~, each de manding a lJiweeklyreup. And it gets worse. Each device now has multiple ("ADRS") FDR WHICH CITIBANK N.A. browseisandapps-andno where is it more chaotic SERVED AS DEPOSITARY OR IF YOU CURRENTLY than on our beloved smart OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. phones. If you check sports scorns onan app,you have f'urwanl to Federal Rule of Cw,! Procedure 73 and of c,,.lh d1.<1nhuuons p~,d hy chg1hlc ADR is.-uc1.1 one login: if you do the same Com! Order ..1/rn)mm, fl al., Cmgioup, l>Jc er al pw.suan! lo adcpO TEl'Il\OLOCY 8: T'J\\\CT: WSJ.com/Tech Eli Lilly Mini, Air or Pro: Picking the Right iPad Divulges iPad Pro and its l2.9·inch • Login: The Air, Mini and Insulin ' ~- ~ ~ an 1:\;f~~\~ r,creen. Other than ~crccn r,ize, iPndu:;C'Apple'!!TouchlD, ··l, ~ ( iPad:lt'sa the llneup's differences boil whiletheProsusethellewer down to a handful offoatures: Face ID facial recognition. Price Data rf'~~>;., :i:cftit:~~le • Design: The Air, Mini • Keyboard: The Mini and BYPITHRl.oFTUS - end,right? andlPadhaVt'thesamede· standardil-'addon'thaveotti And yet Apple launched sign that iPads have had cial keyboard acci:ssmies. The Eli Lilly & Co., facing two new modch lnJt week, llll sh1c1J the Mesozoic hra. ·1hc l-'rosa11d the Alt do. ·they cost mountmg scrntmy in the U.S. iPadMiniandaniPadAir, Proshaveaslimmerbezel anextrnSi59(fortheAir), Congressoverbigincreasesin bringingthenumberofiPads and a rnorechiseled,squared $179 (Prom or $199 (Pro thelistpriceofawide\yused to five. (And that's before you d,:,sign. 12.9),butmakeforamore insulin,savs the prke it w.is dtoose color, internal storage • Charging: Th,:, Air, Mini powerful productivitydi:vice. paid dropped by 8.1% during or cellular connectivity.) and iPad USC a Lightning If you're buying the tablet the previous five years after l'vebeenusingallfive-the port to charge, lik,:, an as a drmving tool or to edit accounting for rebates and l2.9·inch Pro, the ll·inch Pro, iPhone,whereastheProsuse vidC'o and play super•intea~e discounts. the regular iPad, pht~ the new a USB·C jack, which c.in be games, by all means g,:,t a Pro. Lilly says the net price for Air mirl Mini-in ;in pffmt to ur.ed toconncctcmncrn.1m1d lrecommendthel1u-ge.1tone, iB llum,i!c,1-: ilt~uliu-Lh11blv1un Thi: M!11l b Utl:rtl for reiidlnD i!nd lhP Prn I~ a DrP:1t l1r:1wln11 r~nVilJ. flrsr•gon l'oncll. ¥0\l pair and though,th('l-'fo'r,dec1gn,Wil} ~117 Ill 301/4. llnring the.> !!Ollie anything you'd want from chaigeit by sticking it into Ccharging, Face ID login and period, the product's .iverage theA))p 8to1e. At lh1!.\.il11~ Liu• Ai1 b L!w ~pitting lrnagiJ wllh the10.5•!nchscrei'n! Its cheUghlnrng port. The Pros unproved Pencil support telt list price rose 51.9% to $594 time,they.ireaimedatdif· of the old iPadPro.Both run back~with an upgraded chip, have a new $129Pencil, likeoverkillfortheprice. perpatie11tmonthly. ferent users. If your fovorite onApple'sfastA12Bionic alowerpriceandanew which attaches magnetically The Air is the best value. Humalog is among the most app is Kindle, you'll want a chip,thesameonethatpow name.At $499, the Air is the to charge and pair. The It offers most of the produc· widely used insulins in the Mini. If it's Netflix,go iPad ers theiPhoneXS. median·priceiPadwithafea drawing and writing experi tivityand power you'd get U.S., where an estimated 30 Air. If it's Photoshop, you're Forthemostpart,either turesettomatch.Liketh,:, ence is nearly the same. from the Pros, fora fraction million Americans have diabe· going to w.int a Pm. you're a Mini person or you Mini,itsupportstheearlier • Storage: The iPad starts oftheprice. tes. Ultimately, though, there's aren't.Ifyouwantasmall but Pencil. The Air exist~ mostly with 32 gigabytes of storage. For most peo))le, I recom· Lilly said monthly per·pa· one pretty good default powerful tablet, it's practically because $500 has long been The other.~ offer at least mend the plain $329 iPad. tient prices were based on av• choice. Here'sahint:It's the the only game in town. It even the iPadsweetspot. 61GB. The Pros go up to a Me?IpickedtheMini.It's erage use of Humalog if taken onlyonejustcallediPad. supports the Apple Pencil, Thosenvojoin three other terabyte. not the most functional iP.id, .is prescribed. This amount~ to Apple didn't exactly blow though not the new one that updated Apple tablet~: the • Headphone jack: The but as a reader, a binge· about two vials or more than its R&D budget on the newest the latest Pros use. S329iPadwith 9.7-inch Air, Mini and iPad have3.5· watcherandadoerofcross· six pen injectors, though .ic· models. The new Mini looks As for the Air, well, do you scre,:,n; the$799iPadProwith mlllimeterheadphonejacks. words on crowded trains, the tual usernayvaryby patient. exactly like the old Mini and rememberthe2017iPad Pro ll·inch display; and the $999 The Pros don't. sizeisjustperfect. The rising cost of diabetes treatments has figured promi• nently in broader scrutiny of drug prices, and diabetes drugmakerslikei,illyarefac· Financial Literacy Becomes Required Subject ing criticism from patients, doctorsandl.iwmakers. BYANNETBRGESEN Mr. Cole said the 27·week The rising list prices have cl.iss at his high school especially hit patients without Owen Cole, a senior at Eliz· brought home th(' long-term 1:~ insurance and those with pre· abethtown High School in Ken• cost~ of.ittending a four•year scription plans that carry high tucky, planned to at- college.Italsotaughthimhow out·of·pocket cost~. Due to the tend Western Kentucky best to divide his income be· cost~, some patients say they University.iftergraduating.A twee11 his expenditures and have rationed doses,switched fin.incial literacy saving for college and repairs to low·cost versions sold at class changed his mind. on the used car his grandfa· Walmart stores or turned to The I8·year-old, who takes ther gave him. unapproved versions. home about $600 a mo11th Classes like Mr. Cole's ar,:, Thisyear,HouseandSenate asashiftm.inager at a Chick· part of a broader trend of commitleessentletterstodia· fil·A, now aims to attcmd a lo· state governments seeking to betes drugmakers Lilly, Sanofi cal community college for two help individuals get their fi. SA and Novo Nordisk A/S, yr;irn hPfnrP lnrn~fnrine fo a nandal liv'°'. inorrlor.Toholp .1eeking iufulJu.itiuu uH Lhe four•yearstate university. He the estimated 12% of private rising cost of their insulins expects this will help him sector workers who don't have and details about rebates paid avoid loans. access to retirement·savings to drng·supply chain compa "Afterfindingoutthecosts, pl a IL~ at work-many of whom nies. The drugmakers say they I knew [the extra spend· don't save at all-some states are cooperating. ing] might hurt me later in areenactingprogramstliatre· Sen. Ron Wyden m., Ore.) life," said Mr. Cole. quire or encourage companies criticized Sanofi for raising A growing number of states without these plans to offer the price of its insulin during areenactinglawsthatrequire thernand,insomecases,auto• a Febrnary hearing on drug schools to teach financial liter· maticallyenroll employees. prices where Sanofi Chief Ex· acy, reflecting concern over St.ites are tmning to finan ecutive Olivier Brandicourt the impact that money prob· cial-literacy programs to edu• AfexToddteachesfinandalliteracyatElizabethtown High School In Kentucky, and six other pharmaceutical !ems, which can be exacer cate teen_~ before they form bated by college loans and bad spending and p.iyment including Medicaid. high·schoolstudentsst11dyfl• ing to the Fed('ral Reserve, other typc.>s of debt, .ire having habit.-;, hopingtonovc toxpoy De3pite !O!l\e re~,:,,nch Jldlllidllilt'ldlYLl'fuui Lllt'Y!t'· •14% uf mlulL~ luck th!! fuud;; lU Drugmakers like Lilly onresidents'livesandstates' ersmoneyover the longterm showing mixed results, 19 ceive a diploma. That is up cover a $400 emergency. The budgets. by reducing public assistance, states currently require that froml7in2018and l3in2011, median household headed by are facing criticism ------~according to the nonprofit someone age 55 to 64 has lit· Council for Economic Educa· tie more than $100,000 in re from patients, doctors AOVERTISEMENT tion, which tracks .~tate laws tirement savings and 11% of and lawmakers. and trains teachers. borrowers who started repay• Lawmakers in states includ ing federal student loans in Marketplace ing Rhode Isl.ind, Florida, 2015 h.id defaulted within Toadvertise:S00--366·3975orWSJ.co1n/classifieds TcA.i.\ .-ml !Ju11l11 C.t1uliu,1 dl!J tl1tt!t'Yt!1Hb. l!xecullvestest!fled. coa~idering adding or expand· But academics debate In respoIL~e to the pressure ingfinancial·literacymandates whether financial·literacy over in~ulin pricing, Jndianap· in schools. New Jersey and classesareworthwhile,espe· o!is·bascdLillyhas begun tak· Wisconsin recently added fi dally if they take time away ing steps, including .innounc· nanciaHiteracyin~tructionre• from other subjects. ing earlier !hi.~ month it would quirements for lower grades. A 2014 study that examined startsellingage11ericversion IF YOU RECEIVED A CASH DISTRIBUTION A growing number of com• 168 academic papers found of Humalog at half the list IN CONNECTION WITH CERTAIN panies have also begun offer· such instrnction ha.~ "minus· price of the brand-name drug. ing programs that teach em• cule effects" on behavior \Ill· Lilly h.id reported average AMERICAN DEPOSITARY RECEIPTS ployeesbasicflnancialliterncy less it is delivered shortly be· list and net price changes for ("ADRS") FOR WHICH CITIBANK N.A. andmoney·managementskills, fore a person needs the its entire drug portfolio since reflecting concern over the information to make a finan· 2017, but hadn"t previously re· SERVED AS DEPOSITARY OR IF YOU CURRENTLY impact money problems are cial decision, said co·.iuthor leased thefib,ures byproduct. OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. having on employees' stress John Lynch, director of the Thecompanyincl11dedthe11ew and productivity levels. Center for Research on Con• pricedetailsin.inannualre AnnamaiiaLusardi,director smner Financial Decision Mak· portthatitismailingtoshare· of the Global Financial Liter· ing at the University of Colo· holders and will post online. acy Excellence <.:enter at rado Boulder. The company says it in George Washington University, Other research has found creased the rebates and dis· s.iid the trend at schools L~ oc· that st11de11tsfromstatesthat counts paid to middlemen in curring because surveys show require financiaJ.literacy in· the drug supply chain as Hu· thal"finanriallifnaryr;inhr ~trnrtinn lwvP lnwrr ('l"Pdit· nrnlog"s Ji;t prico roso. hardly taught .it home given card balances and pay for col· A Lilly spokesman said the thelowfinancialknowledgeof lege with more grants and Humalog pricing information many parents." lower·coststudentloansthaii "1vil1 provide b'l"eater trait~par· Americans often struggle to students from states without ency into the significant re• manage their money.Accord· .'luchm.indates. bdlc,:, ,unl THE NEW YORK TIMES, MONDAY, MARCI-I 11, 2019 TECHNOLOGY A.I. Screening Helps Indian Doctors Save Eyesight acrossthcglobcarccxploring tcchnologicsthatdctcctcancer, s1rokc,hcartdiscascandothcr conditionsinX-rnysandinM.R.I. and CT scans. Lastmonth,rcgulatorsccrtificd thccycsystcmforuscinEuropc under the Verily name. And the FoodandDrugAdministrationrc ccntly.ipprovc>dasimilarsystcrn lnthcUnilcdStatcs.Buthospita!s arc !reading lightly a~ they con sidcr dcploying systcms that nrc vastly different from technology traditiona!lyuscdforhcalthcarc. Aravind'sfoundcr,Govindappa Vcnkataswamy, an iconic figure in India who was known as "Dr. V" anddicdin2006,cnvisioncdanct work ofhospilillsand vision ccn tcrsthatopcrntc!ikcMcDonald's franchises, systematically rcpro dudng incxpcnsivc forms ofcyc carcforpcoplcacrossthccountry. There arc more than 40ofthcvi sionccntcrsaroundlndia. In addition to screening pa tients in Madurni - one of the complex mathematical systems and Sri Lanka. He said he was had developed a cataract. largestdtiesinsouthernlndia thatcanlearntasksbyanalyzing comfortahlc\l.ithamachinediag Doctors can sometimes make a lhc hospital plans to install va~t amounts of data By analyz nosinghiscyecondition,inpart diagnosis when faced with Googlc'stcchnologyinsurround ing millions of rctina] s("~1ns show hccause it happened so quickly. cataracts and blurry eye scans. ingvillagcs whcrcfcwifanycyc ing signs ofdinbctic hlindncss, a After the initial screening by the TheGooglesystemstillstniggles doctors arc available. The new neuralnctworkcanlearntoiden A.I. system, doctors could treat to do this. It is trained largely on A.I. system wu!d radically ex tifytheconditiononitsown. pand the number of people who the eyes, perhaps with laser clcar,unobstructedimagcsofthe A neural network is the same retina, though Google is exploring can be screened. technology that is rapidly improv "Right now, there is a bottle theuscoflower-qualityimages. ing facc rccognition scrvkcs, talk Even with this limitation, Dr. neckwhcnitcomestojustscrccn ing digital assistants, drivcrlcss A busy hospital tests ing palienL~. "said Dr. R Kim, a Kimsnid, thcsystcmcannugmcnt cars and instant translation scrv an automated system whatdoctorscandoontheirown. nephew of Dr. V's who now serves ices likc GooglcTranslntc. ns chief medical officer at Ar- Aravind already operates small Because these systems learn without cost. visioncentersinmanyofthecities fromcnormousflmountsofinfor and villages surrounding Madu Behind the new screening mation, researchers arc still surgery,tostaveoffblindncss. rai. The hope is that the Google methods arc neural networks, struggling to completely under- Thesystcmperforrnsonapar system can make eye screening 1 withtra!nedophthalmologists,nc ea~ier ln these facilities and per• ~l~~~d\~ ~======n ift\1\:;~x.1;:~;\cl1:~~- I~~~ cording to a srndy publishcd in hapsothcrlocat!onsacrosssouth IF YOU RECEIVED A CASH DISTRIBUTION ~~~\i::ki~:/~!i:t~~ ~~~t Po::i~~ TheJournalofthcArnericanMed· crnlndin. Today, in these vision centers, IN CONNECTION WITH CERTAIN erly deployed, they can funda ical As~uciation. But it is far from mentallyimprovchealthrnre. comp!ctclyrepladngadoctor. technicians take eye scans and AMERICAN DEPOSITARY RECEIPTS At Aravlnd, computer screens Enrlicr in the day, Pamhaiyan sendthemtodoctorsinMadurai 11 11 1 Balusamy, 5.'i, sat in the same for review. Automated diagnosis {"ADRS") FOR WHICH CITIBANK N.A. ~~; ~~~~~ t~:~s ~~\~~~~~1 :~t~ room. The Google 1>ystcm diag can streamline and expand the SERVED AS DEPOSITARY OR IF YOU CURRENTLY intothcmyriadl,rnguagesspoken nosed "proliferative" retinopathy proccss,reachingmorepcoplein lnhislcftcyc-thcmostserious morcplaccs-thckindu["Mc OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. ing:~r::~ti\\:\xrun, Mr. Rnma· form of the condition - hut it Donaldization~cspouscdbyDr.V. lingmnm,60,spokeTamil,thcan couldnotrcadthcscanofhisright Thctechnulugystillfacesregtt Pursualll !o Federal Ruk of ('ivll f'wccdurL" 21 and 1d1d 1d.!lL"d lu lllL" CPi\\",r THE NEW YORK TIMES, MONDAY, MARCH 25, 2019 B7 TECHNOLOGY Smart Safety Checks for Smart Robots Verifying performance for complex software systems will only get harder as technology advances. ncxtUecade.Suchadvances planningsomcthingsimilar,huilt tcms-aspotheldhyChinafor The Week in Tech aren'tlimitcdtocars-theyw11l onitsAmazonWehScrviccs fiveyears.ButChinaleadsby 8r.li\Ml£CONDLl~n: further automate everything cloudinfrnstructurc. anotherl1eymca~ure: ltnc• fromairtrnve!tofooddehvcry. Tboscthrcccompanieshappcn countcdfor227systcmsonthc Thcyarebuiltontcchnologies, tobc!heworld'slnrgcstcloud Top500list,co111parcdwithl09 Greetings from London. Herc's likeartificialintclligence,that prov!dcrs.It'snotsurprisingthat for the United States. alookatthcwcck'stcchnews: willmakesplit·seconddecisions they'rccnamoredoftheidcaof Chinaiscxpcctcdtohaveits Machincsarccontrollcdmorc for humans. takingaslicco[theSl:J.'ibillion ownexasca!csupcrcomputer thanevcrhysoftwarc,nothu Thr Rorioe ~ofrwnrr WM gamingindui.try,whunallit runningo330011M2020-dfu!I mans.Occasionallyitgocsfatally designedtoperformasimple couldtakeisthcflcxofanexist• ycarhcforeAurorabootsup. wrong ta~k: Nudgethcairplaoe'snose ingmuscle. In other news: OnM,irchlO,l.57pcop!cdicd downhasedonsensorre.id!ngsif !;upereompul.!!r!;l!ug-g-l.!!s when on Cthiopion,\irlincsDoc astilllwasant1c1patcd.Asharder • Google ha~ received Its tturd ing7:>,7Ma.x8jetcrashcd. Five tasksarehandcdtosoftware,the AhoutS500millionshouldbuya antitrustfincfromthcEuropcan Union6inco:IOl7.Thiconc,forl.6 monthscar!icr,m1othcr~rnshof 3lnkc3ri:lc. lot of computor, Thir, par,t wool!, billioneuros,oraboutSl.7hillion, thc::.wucmutfolufalrplancklllcd ",\syoucrcatcmoreadvanced we found out how much. Writing 189pcoplc.Thcrcarcindicatio11s fnrTbrTimcs,D!lnClarkcx• wasforimposing1mfairtcrmson A.I. ~y3tClll3, the horm tho! C111l plainedwhattheDcpartmentof thcscarchserviceitoffersto thatsoftwarcintcndcdtoprevcnt resultfro111the111failingc.inhc Energy would get for dropping othcrweh,itc~. the jets from stollline m,1y lmvr n•al!ylare1','·~a1r1.11111ct.1 r11ne,n playcdarolelnhothaccldt,1\ts thatsumonasupercomputer: researcherntOxford Univcrsi· There nre indications that software illlendcd to prevent D()(!ing 737 Max 8 • Facehookwillstoptargeting Reporting bv The New York L:ihoflicii'.lloprodietitwillbc ty'~Cl!llll!! fut Llil!GUVl!!Wl!lCCU/ JeB !rom slall111g may have p!a~·cd a role in two rccem plm1c crushes. Timcssuggcststhatthcsoftwarc thcfirstAmericanmachineto someofitsads.ltwillnolonger Artilicia!Jntclligencc. nllowndvcrtisingofhousing,jobs didn'trcccivcadctailcdrevicw rcachamilestonecalled"cxas• But increasing the complexity orcredittoheaimedatthoseofa bythcFcdcralAviationA(]minis Ms.Lcungsaid.Nonetheless,it's its cloud infrastructure makes calc"pcrformancc,surpassinga ofsystcmsmakescheckingthem trationbeforeitentcreduse: achal!cngcthathastobead• thntachievah!e.ltwillnddrncks quintillioncalculationsperscc ccrtainracc,gcnderoragc morcdifficult.Hardwarc,from Undcrncwruks,thcagcncy dressed. ofgaming-spccificchipstoexist ond.That'sroughlyseventimes group. chipstospccialscnsors,canhc delegatcdmucho[thcrcsponsi· ingservcrfarmstocsscntin!ly thespccdratingofthelllOSI • ThcPcntagon'sglamdoud difficulttotest.Andittunbc Big Tee h's New Hustle hilitytoBocing.Ifthcsoftwarc givepcoplcnnon-dcmand,re• powcrfulsystemhu\lttoUate. contrncthasaone•manholdup. difficultfortrnmnnstounder• wasatrault,andtheproblcmdid Whenacompanyspendshillions mote gaming computer. And Thcdevice,callcUAuror.:l,wi!l Dcap Ubhi, a !ittle•known entre slipthroughthcrcgulatorynct,it standhowsomeA.J.algorithms onworlU-leadingdigitalinfrn Googleof/icialsbelicvcthats!nce beuscdtofigureouteverything mnkcdecisions. preneur, is at the center of a legal raiscsqucstionsabouthow structurc,itnatura!lywamsto mostuscrsarcnowsoctosctoits fromhowdrugsworktothc battle between A111nzon and sarcty•critical technology is Ms.Leung said regulators wringeverylastcentofrcvcnue pcrvasivehardware,lagwon'tbe impactofclimatcchangc.lt's neededtobemoreawarcof OracleovcrthcSIObilHon vetted. outofit.That'spartlywhatis aproblem-anissuethatheld f!)soausefulindicatorofthc project. Thoscquestionswillbccome tail·endrisks-thehighlyun· driving Google's new Stadia back earlier game streaming nation's competitiveness in sci• moreimportantovcrthcncxt likely hut catastrophic events gamingservicc,nnnouncedon platformslikcthcnow•defunct cnce and technology- or, at this • A.I.rcscarcherscouJugivc fcwyears. thatcouldoccurifsomething Tuesday. OnLive. point,whctherit'sleadingor computersalittlcmorccredit. Ayearugo,nnArizonawoman malfunctioned.That might mean Google'spitchisstr;1ightfor· Googlcisnotaloneinthepush lflggingbehindChina.Onthat RichSutton,apionccrofsomcof wnsstruck and killed by one of introducing more conservative ward: ThinkofltasNctflixfor intowhatsomcpeoplcseensthe front,Mr.C!arkrcportstha!it today'smosteffcctivcA.l.tcch Uber'sautonomouscars.Thc rulcsthatrclaxustechnology ga111ing.As!ongasthcyh,1ven futureofgaming,Microsofthad hasbeenamixedhagforthc niques,arguestha1a"hittcr vehicle's autonomy systems maturcs,ideallydcvc!opedin fastinternetconnection,users alreadyannounced{hatit United States: lesson"inartificialintelligcnccis failedtohmkc,asdidthcsarcty tandem with technologists who canpay,1subscriptiontop!ay pJnnncdtoofferatrialofasimi An IBM system called Summit, that"thconlythingthatmauers driver behind the wheel. understanddecplyhowthcsys hfgh-definitionga111cs,ilkinto JarserviccforX\Joxconsoles, huiltfortheOakRiUgcNational inthclongrunisthelcvcmging CompanicslikcUbernnd tcmswork. whatthey'dfindoncurrenttop• computcrsandmobiledcvlces LaborntoryinTcnncsscc,took of computation." Waymo,alongwithmostofthc "Vcrifyingthcperfonnnnce endconsoles,onanycomputcr, thisyear.Amazon,whichowns backthcNo. lpositionlastyear autoindustry,expcctautono andsafctyofsoftwarcisarcally, phoneortahlet. the game-watching service onatwicc•yearlyrankingofthe Jamie Cond/iffe is editor o/ the mouscarstoprolifcmteovcrthe real!yhardtcchnicalchallengc," Theco111pany'sprontisc:that 1\vitch,iswidclybelievedtohc wor!d's500mostpowcrfulsys- DealBooknewsleller. JenFotsc,theformerlcaddesigner forApplc"Ill,inJunc.Applehas Netflix Opts Out as Apple builtitsclfintoamcdiacolossus. Ramps Up Programming product,thciPhonc,havestart.cU to lag. II stopped reporting how FROMFJRSTDUSINESSPAGE causethereisn'tadcar through manydcviccsitsoldasofSeptcm• Nctflixhasdccidedtoopt out of lineonthcshowsitbuysormakes, bor, Now, it want&invOiaon; to looll LIie 1\11111<: liuml!c, wl1lt:h will uµ. resulting inn hard.to-define at another line item - its foray sell subscriptions to HBO and hodgepodgc.Butthat'sbydesign. intothcmediabusiness,whichis CBSinadditiontoitsoriginalpro Netnix ha~ long maintained that stable and steadily growing. AP· grarnming.Nctflix'sabsencefrom its brand isn't about any partku· plchopcsitwillgrowcvenfastcr thcnewplatformsaysalotabout Jar aesthetic, like HBO's. It's n with the help of Hollywood. thcstateofplayinthehighlycom• service that aims to serve up Interestingly, that line item pctilivc streaming industry: a shows for all kinds of viewers, / (listedas"ServicesHon the Apple fightisbrcwingoverhowcontcnt frompcoplewhohkethctcenage incomcstntement)wasoncelittlc is distributed. thriller "You" to those who arc more than a balance-sheet curi• Mr. Hastings explained it at a tcmptcdtoc!ickonthetilcforthc osity. Now, it's a S40 billion husi· Netflixcarlierthisweck:"Applc's dystopian Polish sci-Ii show "-. ncss. The forthcoming bundle a great company. We want to have "198.3." couldaddmorcthanS12billionto pcop!cwatchourservicc-orour The same might he said for that, according to un estimate content on our service. And so Hulu,ArnazonorComcast,ullof from Goldman S:ichs. we'vechosennottointcgrntcinto whichfundoriginalcontentwhilc Forcomparison,thccntiretyof theirscrvicc,bccauscwcpreferto illsomarketingothcrcontentfrom me Walt uisney Company gencr have our customers wntch our channels - l!kc HBO or CBS - ated 559 bi!lion in salcs last ycar. within their platforms. content in our service." CBS, SM hillion. Ncttlix, S16 bil• Thekeywordhercis"service." Notcoincidentally,Comcastan lion. nounccd its own streaming bun Put it m101hcr way: Nctflix is a Without explicitly trying, Apple servicc,orapipc,thatwouldsiton dlcjustdaysahcaUoftheApp!e showcase. Customers who only hasbuiltitselrintoarneUiacolos· another service, or pipe, if it zonorHuluagainstitsownneeds. havcComcast's broadband scrv• elude HBO prograins and the counting for a smaller propor• agrccdtobcincludedinthcApple propertiesitgaincdthrnughits tion.) Why did AT&T buy Time Warner Sowbatdoesmeanforevcry• buntllc.Andifithadjo!ncdforces icccanspendanextraS5amonth acquisition of Warner Bros.,like But that kind of indifference (which also included CNN, TNT oncelse? with Apple, Netflix also would togctfrccstrcmningmoviesand "WonderWoman"and"Friends'" could cm against AT&T's own andWarnerBros.)ifnottojump have received little to no dma TV shows from ad.supported Mr.Hastingssaidith!'stonnn -hythccndofthcycar. planstosellcontentdircctlyto startitsownstream!ngbundle? October earnings call when he nbout who is subscribing or services like Pluto and YouTube. watchiug its stuff. Further mud· TheycnnatsogothroughComcnst From HBO's pcrspcctivc,al!ow people. The wireless giant will It's worth noting that Apple is tnlkcdahomtheflurryofncwen• trants into his area of expertise: dying the company's identity, to purchase ,m HBO or a Netflix ing itself to bccome part of App!c's havctowcighthcvalueofthedis· hypingitsnewscrviceatatimc "Thegameison.H from the Netflix point of view, subscription. It's meant to be a strcamlngcffortisnotthatdiffer trihutionmusc!eofApplcorAma• whensa!esofitsmostlucrative wouldhethcfactthatApplcusers one•stopshopforyourstreaming cntfromsellingitswarcsviaCom- nceds,notsodifferentfromwhat Apple is proposing ~:~to~\~~~T~~t1;s j~l:~t~!;o~~i~ ,~======~ The race is on to A nuance worth noting: Nclflix streaming service, HBO Now, hall IF YOU RECEIVED A CASH DISTRIBUTION is willing to work with Comcast - a slow start until Amazon Prime dominate digital ucompctingdistritm1or-andno1 started marketing it. With the IN CONNECTION WITH CERTAIN with Apple tJecausc Nctflix secs pushfromAmawn,thenumberof AMERICAN DEPOSITARY RECEIPTS video distribution, Applca~thchiggcrthreat.Netflix HBO Now subscrihers nearly dou executives arc worried the tech bled, to five million. (HBO cur ("ADRS") FOR WHICH CITIBANK N.A. who spooled up "Stranger giant will crack the streaming rently lmsmore than seven 11111• SERVED AS DEPOSITARY OR IF YOU CURRENTLY Tilings" or "Orange Is the New codcfastcrthanComcast,accord• hononlinecustomers,withthosc Black" may not he aware that ingtotwopcoplefnmiliarwiththc who subscribed through Amazon OWN SUCH ADRS, YOUR RIGHTS MAY BE AFFECTED. they're watching n Netmxshow. company w!10 were not autho· Retaining thehrand is as i111por• rizcdtotalkpublicly.Anotherway Pur.111an1 lO F~dcr:d Ruic of Civil Prnccdurc 2~ and rdid rcla1c,! to the rnnvcr.">1011 uf lurc·1;;11 <:\11rcnc-y ~===-==c.="i .lfiu_\,,wu ,1 r,1,111,mp. Jm. {l[lll/l.. ~OWllillgthc,J,1t,1. C,,m1 01d,1 . u/. ,. el ul .. uf c.i.,li d1.,tul,u1iu11., p.ud t,y dtg,1,k AOR l.'>.'>lltlS Apple and Nctflix (and others) ~~!~l~~~g\~~;;1~~0~~~;:1;!{'e~~~~~\ ~-"·,;·,'.~.::.~::~l,',',•1'.!,:,i:r./,:,:,F,r,,_~~~·,"' No. l:l'i•n·-091 fi:i-C"M-KNF (S.D N.Y.) h.1., been 1nm;uan110 a dcp0,;i1 agreement. door neighbors arc capahlc of. ~ • , >A . .. • ~ .,.~ arenowincompctitiontobecomc !"m,.wmally cc1lllkd a.~ a cl:1.,1 actio,'. for scukmcnl Whal are my rights: If ynu arc a Dama;:e., Ch;., the main pipe for digital vidco Netflix has 60 million it1Tr.lt~•,~~~~,.,~:;;~;!~.','1~~~~;~l::-.::~ purpo..,"" _aud ,1 scuknwnl for 51-1.7)0.000 m c-a.,h Mcn1her:111dyouhold(orhdd)rour,\DRsdircc-tlyand what television is fast bccoming cus1omers in the United States, ,._,,,~\;'.. ~\:!,\t~~,'1uH~W•r1•Hu• ond hxatmgonothcrcunte~ts, mal(ini; it one of the lurgr:1t !li.1- r><}''""'""'"''""H"'/;...,;.,...,,,.,,~u~·~, likewhowinsthcmostEmmys,is trihutors in the country. Comcast, ,.,_.~,.~.,..,._..,,r,i,i), ~-.,."'·,ir•~.,,,,,;-,,-1 the nation's largest cable com- f;; 1.-...,n,r•,·•••• .. ,.-,,eo,. .. , .. ._..,._... secondarytoowningthcpipc.The 1 [:::i~!~C:!.:i~,;;:;;;;;:;::i:~i;1~1:z:;~1!t1;I:~}: \:~:~~Ii~l:gli~:;i~it~~~~i ~;~iffii?t~i pany, !ms 25 million hroadban(] ,...,,,11,nu"'-"'-·-n<•,.,.,,.,,. __c ... companicsarehattlingforcrcdit ('"Nohcc··) l Exhibit D Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 67 of 158 Thursday, March 21, 2019 at 11:37:17 AM Eastern Daylight Time Subject: Markets: Investors Fret Over Fed Rate Path Amid Conflicting Data Date: Thursday, March 21, 2019 at 11:36:17 AM Eastern Daylight Time From: To: Tmuhlu viev/111u \hi3 crnai\? View in web brnwset·, THE WALL STREET JOURNAL. MARKETS It's Fed day. I'm Jessica Menton, breaking down today's trading ahead of the central bank's policy decision. The earnings calendar is thin. Investors are keeping a close eye on the latest oil-inventories report, due later this morning. Stocks have been trading in a narrow rang~ leading up to the Fed's statement this afternoon, which will also include economic projections and a press conference by Fed Chairman Jerome Powell. Ahead of the release, I look at how recent mixed data on the U.S. economy has sent conflicting signals lo inveslors. Markets in a Minute Page 1 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 68 of 158 DJIA S&P 500 U.S 10 Year 25897.78 2841.62 fJ (,1' 2.53 1l n Crude Oil Sm.xx Europe 600 Shanghai Composite S60.12 380.61 CUJfif{: -v 3 lOt.45 DJIA S&P 500 25911.21 ( 2842.65 u.s 10 Year Crude Oil ~1 .:' "} ..:. .•)~J $60.12 Stoxx Europe 600 Shanghai Composite 380.60 3101.45 fL. t tl Overnight Developments Global stocks sagged Wednesday as investors remained cautious ahead of another round of high-level trade talks between the U.S. and China planned for next week. Read our full market vHaJ2 here Investors Are Still Betting on a Fed Rate Pause Wall Street predicts that the central bank won't lift borrowing costs this year. Page 2 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 69 of 158 Rate Reversal Expectations for at least one Federal Reserve inter0sHate increase in 2019. 45'/• .io 35 3() i( 25 20 15 \ 1fJ Jun'°! Oct fei1'l9 The Federal Reserve is widely expected to keep interest rates steady at the conclusion of Wednesday's meeting, but analysts are worried that some investors are banking on a long-term dovish policy stance from the central bank. Federal-funds futures, used to place bets on the course of central bank policy, showed 25% of investors on Tuesday expected a Fed rate cut this year, while no investors predict a rate increase, according to data from CME Group. Rel'.enl mixed data on the health of the U.S. economy has senl conflicting signals to investors. Hiring unexpectedly slowed sharplx in February and manufacturing activity has cased. Investors are also grappling with political uncertainties over the U.S.-China trade spat and Brexit. In a Page 3 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 70 of 158 shutdown and fourth-quarter earnings season was largely better than feared. "The Fed's most difficult task will be to remain dovish while not being so dovish where it raises concerns about the strength of the U.S. economy," Andrew Acheson, director of U.S. growth at Amundi Pioneer. "A surprise is unlikely, but with a press conference, a verbal mistake from [Fed Chair] Powell is the biggest risk as opposed to an actual change in policy." There are two things smne analysts and econo1nists say could push central bankers to change their tune on standing pat: a pickup in inflation or a sudden downturn in U.S. economic growth. A dent in optimism about the economy has been one of the reasons Treasury yields have come down from their November highs. Expectations for dovish policy have pushed the yield on the benchmark 10-year U.S. Treasury note lower this year. The yield settled Tuesdax at 2.614%, compared with 2.605% Monday. That is well below November's seven-year high of 3.232%. Yields fall when bond prices rise. Another key issue for investors: the Fed's balance-sheet runoff. Investors are looking for more details on how the central bank plans to end shrinking its $4 trillion asset portfolio, which it began unwinding in October 2017. If the Fed hints that the runoff will go beyond this fall, stocks will likely take a hit in the short term, according to Bryce Doty, senior vice president and senior portfolio manager at Sit Fixed Income Advisors. "Investors expect a plan that shows the Fed is going to stop reducing its balance sheet sometime this year," Mr. Doty said. If a runoff drags on, "stock investors are going to be disappointed," he said. Do you think the Fed will cut rates this year? Let the author know your thoughts atjessica.menton@w,~j.com. Emailed comments may be edited before publication in future newsletters, and please make sure to include your name and location. Page 4 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 71 of 158 00 ~ cc:::. Share this email with a friend. Forwarded this email by a friend? Forward Sign UR Here Market Facts The S&P 500 has returned an average of 0.02% over the past five years on Fed decision days, little changed when compared with a return of 0.03% on non-Fed days, according to Dow Jones Market Data. Of the 11,021 ratings on stocks in the S&P 500 ahead of first-quarter earnings season, 54% are buy ratings, 40% are hold ratings and 6% are sell ratings, according to FactSet. The energy (67%), health-care (60%) and communication-services (59%) sectors have the highest percentage of buy ratings, the data showed. Meanwhile, the consumer-staples sector has the highest percentage of hold ratings (50%) and sell ratings (11%). On this day in 1929, the most notorious "pool," or stock manipulation of the 1920s, hit its peak as RCA rose to a new high of $115, or 73 times earnings and 17 times book value. RCA-the dot-com stock of its time-was being bought (and sold short) by such respectable figures as auto maker Walter Chrysler, General Motors executive John J. Raskob and Percy Rockefeller. They got out at the top while most retail investors suffered losses of up to 77% after the bubble burst in the Great Crash. Advertisement Page 5 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 72 of 158 GERAIS DIAGEO PLC LEAVE THIS BOX EMPTY Key Events The Federal Reserve releases a policy statement at 2 p.m. ET and Chairn1an Jeron1e Powell holds a press conference at 2:30 p.m. Crude-oil inventories are scheduled for 10:30 a.m. Government data are expected to show U.S. stockpiles rose by 800,000 barrels last ,veek, according to the average target of 11 analysts and traders surveyed by the Journal. Must Reads Laurence D, F:ink is chief executive of F3ictckHcck, v.:hic:/1 p1·icc client; pay to invc.,_:;t in i1s la.rQCSi eqtiily index fur-id. PHOT(): LUD()\/iC IM/\CJES Page 6 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 73 of 158 BlackRock has never charged this little for an index mutual fund. BlackRock is cutting the price big clients pay to invest in its largest equity index fund, a bid by the giant money manager to close the gap with cheaper rivals. Bitcoin is in the dun1ps, spreading gloom over the crypto world. Bitcoin is in the longest slump of its 10-year history, forcing su1212orters to shelve dreams of global disruplion and foeus simply on outlasting the downturn. The Fed faces a crucial decision on the Treasury 1nix in its portfolio. As the Federal Reserve tries to decide when to stop shrinking its asset portfolio, an even more sensitive task may be to determine the composition of the Treasurys it holds. More detail and plain English: Auditor's reports are getting a 1nakeover. Auditors are gearing up to revamp and expand audit reports to make them more hel12ful to investors and tell them more about what's going on inside companies. This includes more detail and simplified language. Investing in Europe's Japanification. The slowdown in European growth and inflation has Wall Street once again raising the fear that Europe is turning ,Ja12anese, something Bank of America Merrill Lynch argues is now the "most consensus trade in the world." U.S. companies are crossing the Atlantic for bond love. Companies have returned in force to the bond market following one of the weakest stretches in years. One corner of the market-U.S. companies raising money in Europe-is on a particularly strong run. Bayer shares fell after a legal setback on Roundup weedkillers. Bayer shares fell more than 12% in early trading Wednesday after the German chemicals and pharmaceuticals giant faced anolher legal selback in its fight against accusations that its recently acquired Roundup ,veedkillers _Gause cancer. Page 7 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 74 of 158 What We've Heard on the Street "Facebook's live-video feature is becoming a viral problem with no apparent antidote." - Heard on the Street columnist Laura Forman Stocks to Watch FedEx: The global-delivery giant late Tuesday cut its outlook for the second straight quarter after the company posted a decline in revenue in its express unit and lower profit in its ground business from the higher cost of operating six days a week. Al:Dhabet: Google has been fined $.1.7- billion in the European Union for imposing ad restrictions on third-party websites. Smartsheet: The cloud-based work platform beat analysts' estimates in the fourth quarter. Michaels: Shares of the crafts retailer jumped 8.5% Tuesday, their biggest percentage gain since November 2017. About Us This newsletter is written and edited by Amrith Ramkumar (.(a)AmrithRarnkumar; [email protected]) and Jessica Menton (_@,JessicaMenton; [email protected]) in New York, and James Willhite (.(a)ji1mvillhite;[email protected]) in London. Page 8 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 75 of 158 DO Access WSJ .com and our mobile apps. Subscribe LEAVE THIS BOX EMPTY ANDROID APP ON • Google play Unsubscribe I Newsletters & Alerts I Contact Us I PrivacY. Polict I Cookie PolicY Dow Jones & Company, Inc. 4300 U.S. Route 1 North Monmouth Junction, NJ 08852 You are currently subscribed as [email protected]. For further assistance, please contact Customer Service at [email protected] or 1-800-JOURNAL. Copyright 2019 Dow Jones & Company, Inc. I All Rights Reserved. Unsubscribe Page 9 of 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 76 of 158 Monday, March 18, 2019 at 10:29:22 AM Eastern Daylight Time Subject: Why These Breakouts Bode Well For The Market Date: Monday, March 18, 2019 at 8:54:23 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY. Market Prep AM I 3/18 China stocks and Edwards Lifesciences were early leaders Monday, but stock futures remained mixed as Boeing weighed on the Dow Jones industrials. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested In certain AORs. Promoted O:.mtrwt By HF Medid U.C Why These Breakouts Bode Well For Market Uptrend As the stock marl,et powers higher·, Intel stock and Broadcom stock lead chip stocks breaking out or neming buys. Two chip ETFs also look compelling ... No. 1 Stock In No. 2 Industry Nears New Breakout After 68% Run Mortgage insurance leader and IBD 50 stock Essent resets its base count and nears a new buy zone after making a 68% gain .. Page 1 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 77 of 158 American Depositary Receipt (ADR) Settlement You may """'>I''"'"""' from a seWem.ent ii you invested in certain AORs. Court Authorized Notice, Promoted Contenf By Hf Media LLC This Is Tesla's Ugly Design For Investors The Tesla Model Y failed to wow Wall Street, but the real issue is Tesla's stock performance over the past several months and years ... See Which Stocks Just Came On And Off 18D's Top Screens Find the best stocks to buy and watch by seeing which top growth stocks were just added to the IBD 50, IPO Leaders and other IBD stock lists ... Page 2 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 78 of 158 Monday, March 18, 2019 at 6:03:51 PM Eastern Daylight Time Subject: Warren Buffett-Backed IPO Eyes Breakout Date: Monday, March 18, 2019 at 5:59:48 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY' Market Prep PM I 3/18 Stock market indexes rose for the fifth time in the past six days, giving themselves a bit more space above key levels. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested in certain ADRs. Promoted Conte11t By Hf Mediil HC Warren Buffett-Backed StoneCo Eyes Breakout After Earnings Crush Brazilian payments firm StoneCo looks to break out decisively after reporting strong earnings late Monday.... China IPO To Report Earnings: Investing Action Plan($) Leaderboa1·d stock HD Supply is set to post earnings, while China stock Tencent Music Entertainment will repo1·t for the first time since its IPO ... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 79 of 158 American Depositary Receipt (ADR) Settlement praicm:1ds from a semoment you lnvos!ed m Authorized Notice Promoted Content By HF IBD Stock Of The Day: Phishing Tools To Boost l'FPT $124,09 This Cybersecurity Stock Cybersecurity stock Proofpoint is the IBD Stock Of The Day. Proofpoint stock is in a buy zone with a rising relative strength line following better-than expected results in the fourth quarter.. Tilray Earnings Miss Amid Questions About Supply Deals Canadian cannabis producer Tilray reports fourth-quarter earnings after the close today amid questions about recent retail and supply deal. IBD 50's HealthEquity Falls Late After Guiding Earnings Low Health savings account custodian HealthEquity reported strong 04 earnings late Monday but the stock retreated from a buy point 011 weak forecasts .. Medical Stock Pops As Its Heart-Valve System Seen 'Usurping' Surgery Edwards stock jumped to a record high Monday after the medtech company's TAVR heart-valve replacement outperformed surgery in a yearlong clinical study. Medtronic and Boston stocks sank ... Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 80 of 158 Tuesday, March 19, 2019 at 9:57:22 AM Eastern Daylight Time Subject: These 2 IPOs Are On Fire Date: Tuesday, March 19, 2019 at 8:52:37 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep AM I 3/19 StoneCo and Tilray surged on earnings news Tuesday, helping lift stock futures and position the Dow Jones industrials to retake 26,000. American Depositary Receipt (ADR) Settlement You may get proceeds fron1 a settlement if you invested in certain ADRs. PmmoledC011tent By HF Metlia ttC Lockheed F-35 Dinged as Boeing's F-1 SX Wins In Air Force's Plan The U.S. Air Force outlined a five-year plan that showed the extent of the Pentagon's push to bring back Boeing's F-15 fighter and curb Lockheed's F- 35 ... HD Supply Earnings, Sales Beat 04 Views; 01 Guidance Cautious Industrial distributor HD Supply beat 04 earnings and revenue fo1·ecasts while giving mixed guidance for the quarter and year ahead .. Page 1 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 81 of 158 American Depositary Receipt (ADR) Settlement You may get proceeds from a semoment if you invested m certam ADRt:L Cour! Authorized ·Notice. Promoted Content By HF Moola LLC Boeing 737 Probe Takes Highly Unusual Turn As New Claims Emerge A federal prosecutor is reportedly looking into the development of the Boeing 737 Max as a potential criminal case while regulators question a safety analysis .. S&P 500 ETFs See Biggest Inflows Since Index Hit Record High Inflows into the three ETFs that track the S&P 500 index spiked as the benchmark U.S. stock gauge enjoyed its best week of the year... Page 2 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 82 of 158 Wednesday, March 20, 2019 at 9:53:40 AM Eastern Daylight Time Subject: 3 Costly Errors To Avoid During 'March Madness' Date: Tuesday, March 19, 2019 at 6:21:13 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 3/19 The rally in stocks today lost steam in afternoon trade, and the Nasdaq added a new distribution day. Avoid these four costly mistakes. American Depositary Receipt {ADR) Settlement You may get proceeds from a settlement if you invested !n certain ADRs. Fed Meeting Ends, Micron Reports, Levi's IPO Pricing: Action Plan ($) Wall Street will be factored into the conclusion of a Fed meeting Wednesday. Levi's IPO is expected to price. Williams-Sonoma and Micron Technology report ... IBD Stock Of The Day Builds New Base Soon COLM $105.29 After Gap-Up Breakout Columbia Sportswear is the IBD Stock Of The Day. Columbia Sportswea1· stock is building a bullish flat base hot on the heels of a big breakout... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 83 of 158 American Depositary Receipt (ADR) Settlement .... Ycm·may get proceeds fn::wn a satllet1'1ent if you lnv0s'i0d m ··· certain AORs Court Authorized Notice. Promoted Content By HF Media LLC Why A Big China Trade Win Is Slipping Out Of Trump's Grasp While a China trade deal is still likely, it's looking like a bit less of a sure thing. Three things have l1appened to reduce Trump's leverage over Beijing ... This Top Stock Reveals Realities Of When To Sell Veeva Systems shows how to proactively protect your profits when investing in stocks, and why you should never risk letting a good gain disappear.. Tencent Music Earnings Meet Estimates; Revenue Falls Short As Stock Tumbles Tencent Music Entertainment reported fourth-quarter results after the market close Tuesday that met Wall Street views on the bottom line but fell short on sales. Tencent Music stock fell.. Warren Buffett Stocks: Who Joins Nvidia, Adobe, Facebook? See who joins Nvidia, racebook a11cl Adobe 011 ll1i::; ::;lud, ::;c1ee11 lJ21sec.l 011 lite investing strategy of Berkshire Hathaway CEO Warren Buffett. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 84 of 158 Wednesday, March 20, 2019 at 9:54:43 AM Eastern Daylight Time Subject: Stocks Little Changed Ahead Of Fed Decision Date: Wednesday, March 20, 2019 at 8:46:50 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep AM I 3/20 FedEx led Wednesday's early declines, while Dow Jones stock Walt Disney edged higher, as stock futures were flat ahead of the Federal Reserve announcement. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested In certain AORs. Promoted Content By HF MedliJ llC Levi Strauss IPO, Pricing Forecasts Upgraded Amid Heavy Demand The forthcoming Levi Strauss IPO has been upgraded and price forecasts raised amid heavy demand .... Can U.S. Crude Oil Prices Break Through The $60 Level? Crude oil prices pulled back from four-month highs Wednesday, whipsawed by global developments, though a bullish U.S. supply report could spark a rally ... Page 1 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 85 of 158 American Depositary Receipt (ADR) Settlement You may get prc,ce,:ias from a seWemenl if you invested m ei::,rtau, ADR&. Court Authorized Notice: Promoted Content By LLC Under-The-Radar IPO Stock Soars On 1,800% Growth Looking for breakout stocks to watch? Start with the IBD Breakout Stocks Index, where you'll find under-the-radar names like Quantenna Communications .... Making Money In Stocks: How To Analyze The Cup With Handle The cup with handle chart pattern is to serious investors what the single is to a baseball fan. It's the starting point for scoring runs .... Page 2 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 86 of 158 Wednesday, March 20, 2019 at 5:49:43 PM Eastern Daylight Time Subject: Stocks Give Up Gains After Fed Sparks Brief Rally Date: Wednesday, March 20, 2019 at 5:48:38 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 3/20 The bulls got exactly what they wanted from the Federal Reserve Wednesday, a dovish policy statement, but sellers came into the stock market late. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested in certain ADRs, P1<.nnoted Content By HF M;,cha tLC IBD Stock Of The Day: This IPO Draws Big FTCH $26.62 - Money With Rapid Growth Farfetch is the IBD Stock Of The Day. Big money has been flooding into the luxury fashion retailer as the recent IPO posts rapid sales growth .... Boeing Stock Falls Late On Report FBI Has Joined 737 Max Probe Boeing stock fell late after the Seattle Times reported the FBI has joined the criminal investigation into the certification of the 737 Max ... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 87 of 158 American Depositary Receipt (ADR) Settlement You may ornn::;1:,,1as from a seWement tf you lmrested Jn . t:::lll[lain ADRs, Cr:nJrtAUthorized Notice, Promoted Content By HF Media LLC These Lockheed Insults >From Pentagon Chief Spark Internal Probe Acting Secretary of Defense Patrick Shanahan is facing an internal probe after the ex Boeing executive reportedly insulted Lockheed's performance on the F- 35 .. Nike To Report As March Madness Tips Off: Investing Action Plan Nike earnings will come as the NCAA basketball tournament gets going and a month after an embarrassing snafu with its shoes during a Duke-North Carolina game ... U.S. Crude Oil Prices Touch $60 After Huge Surprise On Supplies Crude oil prices topped $60 a barrel briefly Wednesday as a stunning drop in domestic inventories overpowered global developments in oil markets .. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 88 of 158 Thursday, March 21, 2019 at 10:35:26 AM Eastern Daylight Time Subject: Stocks Slide As This Biotech Giant Dives Date: Thursday, March 21, 2019 at 9:13:38 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY'. Market Prep AM I 3/21 Stock futures slipped Thursday, threatening the Nasdaq's 4-day rally as Apple got an upgrade, Biogen swooned and the Dow Jones index retreated from 26,000. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested in certain AORs. Promoted Content By Hf Mt>dicl !JC Chinese Internet Titan's Earnings Tumble, With More Woes Ahead Tencent earnings fell more than expected in 04 on soaring costs and weak games 1·evenue for the Chinese internet giant. .. No. 1-Rated Cloud Security Stock Retakes Buy Zone After Big Gap Up Cloud security software leader Palo Alto Networks has climbed back into buy range, and is featured on the IBD 50, Sector Leaders and 18D Big Cap 20 lists of top stocks .. Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 89 of 158 American Depositary Receipt {ADR) Settlement ... You may rm,N?t011R from a semement if certain ADHiL Court Auth6dZed Promoted Content By HF Moo\a LLC Levi Strauss Stock Is About To Debut After IPO Prices Above Views The Levi Strauss IPO priced above expectations late Wednesday, after seeing heavy demand from institutional investors .... Olive Garden Parent Jumps On Strong Earnings Darden Restaurants earnings topped views Thursday, fueled by strong same store sales at Olive Garden. Shares rose .. Earnings Option Trade Makes Sense For This Hot Retail Stock Five Below stock has been a big winner in the retail sector in recent months. Does a call option trade make sense ahead of its March 27 earnings report? ... Ethical Funds Have Never Been Cheaper As Vanguard Spurs Fee War BlrickRock, V;:rng11nrrl Grn11r ;=ind Deutsche Bank have slashed fees fo1· ETFs tracking companies performing well on environmental, social and govP.rnrinc:P. criteria .. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 90 of 158 Friday, March 22, 2019 at 11:43:03 AM Eastern Daylight Time Subject: Futures Sag As This Dow Stock Stumbles Date: Friday, March 22, 2019 at 8:51:48 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep AM I 3/22 Stock futures sagged as Dow Jones stock Nike weighed on early trade Friday, while the market digested Thursday's bullish advance. American Depositary Receipt {ADR) Settlement You may get proceeds from a settlement if you invested in certain ADRs. Pn:m10ted C,>ntent By Hf M1ttiit1 U.C Huge Boeing 737 Max Order Canceled As Criminal Probe Heats Up Garuda Indonesia said Friday it's canceling an order for Boeing 737 Max jets, marking the first airline to publicly confirm such a move following the Ethiopian Airlines crash .. Are Gold Miners Entering An "Exploration Renaissance?" Gold mining stocks have tracked the recent gold price rally, but analysts say miners are cutting costs and entering an "explo1·ation renaissance.". .. Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 91 of 158 American Depositary Receipt (ADR} Settlement Yott may orc,c£H3ds from a semomenl if you mvcsted in c~rla1rrADRs, Ct1t1r!Autho1lz0d Notice LLC Cannabis Fund Innovator Planning ETF Of U.S. Companies Only The creator of the first marijuana ETF is looking at expanding its cannabis roster, with plans for U,S,, leveraged and inverse offerings" No. 1-Rated Cloud Security Stock Retakes Buy Zone After Big Gap Up Cloud security software leader Palo Alto Networks has climbed back into buy range, and is featured on the IBD 50, Sector Leaders and IBD Big Cap 20 lists of top stocks,., This ETF Shows Why Investors Should Always Keep Their Eye On The Fed Exchange traded funds of real estate investment trusts have had a very good year so far, For this, they can thank the Federal Reserve", See Which Stocks Just Came On And Off IBD's Top Screens Find the best stocks to buy and watch by seeing which top growth stocks were just addod to the IBD 50, IPO Leaders and other IBD stock lists,, Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 92 of 158 Monday, March 25, 2019 at 9:47:29 AM Eastern Daylight Time Subject: Bears Clobber Stock Market: Now What? Date: Friday, March 22, 2019 at 5:44:38 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 3/22 What triggered the avalanche of selling in the stock indexes? There was no shortage of suspects - from weakness in Europe to mixed signals from Trump. Arnerican Depositary Receipt {ADR} Settlement You may get proceeds from a settlement if you invested in certain ADRs. Pu,moted Content 81• Hf Med!11 LtC Lyft IPO, Apple Streaming Video Event Lead Action Plan For Next Week ($) The week will begin with Apple's streaming video event and end with the highly anticipated Lyft IPO. In between, Lululemon and marijuana stocks repol"I earnings ... IBD Stock Of The Day: Banking Software Firm QTWO Showing Accelerated Sales Gr... i•//1 f' "i' 02 Holdings is the IBD Stock of the Day as the cloud-based digital banking J,.;1,1bAvh, software provider has continued to climb since its breakout last month. 02 stock remained in the buy zone on Friday ... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 93 of 158 American Depositary Receipt (ADR} Settlement You may get orocCEHids from a semement if you invested ln cenew, ADR::L Cour!Aulhorlzetl Notice. Promoted Content By HF Medle This Pentagon Supplier Flies High On Budget Hikes, Key Mergers The Trump administration is proposing a 5% defense budget increase in 2020 to counter threats from Russia and China. That's good news for subcontrnctor Mercury Systems, an F-35 supplier. .. Why Wall Street Still Backs This Plunging Dow Jones Stock Analysts are playing defense for Nike, citing the company's innovation in its product pipeline, supply chain and digital technology ... Huge Boeing 737 Max Order Canceled As Criminal Probe Heats Up Garuda Indonesia said Friday it's canceling an order for Boeing 737 Max jets, marking the first airline to publicly confirm such a move following the Ethiopian Airlines crash .. Trump Is About To Challenge China's Red Line On Taiwan Trump administration officials are reportedly backing the sale of Lockheed Martin F-16 fighter jets to Taiwan, sparking a prntest from China .. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 94 of 158 Monday, April 1, 2019 at 11:34:30 AM Eastern Daylight Time Subject: Stocks Jump On Uptick In China Growth Date: Monday, April 1, 2019 at 8:56:12 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep AM I 4/1 Caterpillar, Netflix and Salesforce.com all rose toward buy points Monday as stock futures rallied and the Dow Jones industrials aimed to conquer 26,000. American Depositary Receipt {ADR) Settlement You may get proceeds from a settlement if you invested !n certain ADRs. Promot(:d Contt.mt By HF Mediit Lt( Retirement Income Planning Tactics Ease Money Fears If you want to avoid worrying about running out of money in old age, good retirement income planning is vital. .. How 5G Wireless Could Accelerate The 4th Industrial Revolution The Fourth Industrial Revolution that's currently disrupting business models is about to get pumped up with 5G network technology. Automated factories are about to get much smarter... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 95 of 158 American Depositary Receipt (ADR) Settlement You may get nrnro,,,1"' from a set!lement 1f you invested in cgrt21'm ADfh. Courl Authorized Notice. Promoted Content By HF Medla See Which Stocks Just Came On And Off IBD's Top Screens Find the best stocks to buy and watch by seeing which top growth stocks were just added to the IBD 50, IPO Leaders and other IBD stock lists .. When To Sell Growth Stocks: This Could Be Your No. 1 Rule Many investors can rm prove their portfolio returns by knowing when to sell growth stocks. Treat a sharp break of the 10-week line as bearish .... Here's Where To Find The Best Tech Stocks For Your Watch List The best tech stocks hail from many different industries and sectors, but the tr·ue leaders can be found in IBD growth screens like the IBD 50 .. ~;;::::7'"<<'' ••··· .•.. i.. "'' '""'""'"'""''"""' """'' (v~ Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 96 of 158 Tuesday, April 2, 2019 at 9:50:16 AM Eastern Daylight Time Subject: What Mon dais 1%+ Gain Means For The Market Outlook Date: Monday, April 1, 2019 at 6:09:10 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 4/1 na Big Picture: What Monclay's 1%+ n Means For The Market Outlook ($) The stock market stumble in March is all but a memory now after the S&P 500 climbed above its March high, causing a rethink of the market's outlook. American Depositary Receipt (ADR) Settlement You may get proceeds froIT1 a settlement if you invested ln certain ADRs. Promoted Content By Hf Mediil i1C Auto Sales Due, This Dow Jones Stock To Report: Action Plan Car stocks headline the Tuesday investing action plan, with auto sales likely to slow to the lowest level in years. A Dow Jones giant has earnings due .. IBD Stock Of The Day: Paylocity In Focus As It PCTY Targets Service Bureaus Paylocity is the IBD Stock Of The Day as the maker of payroll software forms a flat-base chart pattern, corning out of a deep cup base. Paylocity trades about 4% below a technical buy point ... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 97 of 158 American Depositary Receipt (ADR) Settlement Yoo prcsi:::ei?ds from a si:'IU!ement if you mvesled in cer!mn ADRs Court Authorized. Notu:::e. Promoted Content By HF Media llC 5 Key Ways To Play The Big Rally In China Stocks China stock ETFs kicked off the second quarter with big gains Monday, fueled by better-than-expected manufacturing growth data from the country ... Looking For The Next Breakout Stocks? Start Here How can you identify the best stocks to buy and watch? By regularly checking IBD stock lists, which have a track record of outperforming the S&P 500 .. Amazon Stock Gets Price-Target Increase On Cloud-Computing Performance Amazon's price target was raised by a Wall Street analyst on the view that its position in artificial intelligence and cloud computing will lead to productivity improvements and cloud adoption ... Boeing 737 Max Fix Needs More Time As Ethiopia Report Expected Boeing 737 Max needs additional work, the FAA said Monday, adding that a software fix is expected "over the coming weeks." ... Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 98 of 158 Tuesday, April 2, 2019 at 9:43:07 AM Eastern Daylight Time Subject: How Will loT Impact Chip Stocks In 2019? Date: Tuesday, April 2, 2019 at 8:55:00 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY. Market Prep AM I 4/2 Dow Jones stock Walt Disney gained, and Walgreens dived; Lululemon and Intel moved up in their buy ranges, and stock futures held flat ahead of data on Tuesday. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested ln certain AORs. Will Kudlow Clarify Trump Administration 5G Wireless Plans At Conference? Possible Trump administration suppoI1 for a 5G network may be a hot topic at a telecom conference Thursday. National Economic Council Director Larry Kudlow may shed light on the issue .. Dow Stock Dives On Weak Earnings, Guidance Walgreens Boots Alliance missed fiscal second-quarte1· earnings estimates. The Dow Jones drug store giant also cut full-year EPS guidance. Walgreens stock fell.. Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 99 of 158 American Depositary Receipt (ADR) Settlement om,c0,~os from a :H;tllemen! ff you mves!ed m Nobce. Promoted Content By HF Mooin LLC 20% Gap-Up, 117% Growth Kicks Off Run For No. 1 Stock In No. 9 Group See how cloud security leader CyberArk Software was identified as one of the best stocks to buy and watch before it soai-ed to new heights .. U.S. Cannabis Producer iAnthus Puts Up Q4 Sales Jump, Wider Losses U.S. cannabis producer iAnthus Capital reported a sales jump but a wider loss for the fourth quarter. .. Internet Of Things Poised To Propel Semiconductor Industry In 2019 The Internet of Things has overtaken wireless communications as the most important application driving semiconductor sales in the year ahead, according to a survey of chip executives ... What Are FANG Stocks? And Should You Invest In Them? The acronym FANG refers to four high-growth internet stocks. (Sometimes they're called FAANG stocks.) Here's what investors should know about FANG stocks and why they might be worth a look ... Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 100 of 158 Wednesday, April 3, 2019 at 10:13:39 AM Eastern Daylight Time Subject: 6 Critical Factors For A Bullish Q2 For Stocks Date: Tuesday, April 2, 2019 at 6:21:23 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY* Market Prep PM I 4/2 The Nasdaq got a small boost by megacap techs and internet giants while small caps lagged. Growth stocks remain healthy. The quiet session shows bears are back in hibernation. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested in certain ADRs. Promoted Content By Hf Media ttC IBD Stock Of The Day: O'Reilly Hits New Buy ORLY $394.33 -- Point After 81% Run IBD Stock Of The Day: O'Reilly Auto Parts hit a buy point Tuesday after a strong run in the past year. Auto parts retailers have been stock market leaders ... After Hours: These Two Tech Giants Near Buy Points Move On News Stock futures: AMO neared a buy point late on a bullish analyst call. Altaba will liquidate, selling its 15% Alibaba stake. Tesla bulls and beai-s kept a close watch for 01 delivery data .... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 101 of 158 American Depositary Receipt (ADR) Settlement may gDt mceezls fmm a setllemc-m! it you Hwssled !n "t::\&!iEHn ADRs: . Cour! Autrmrized NoUCiM Promoted Content By HF Medlu LLC IBD 50 Stocks To Watch: A Leader Among Dividend Stocks MGM Growth - the owner of MGM Resorts properties - is just clearing a buy point as dividend stocks known as REITs outperform the genei-al markeL Dave & Buster's Q4 Results Beat, Expands Buyback Gaming and dining chain Dave & Buster's reported fourth-quarter earnings after the close, with more attention focused on its new virtual-reality games . Wall Street Coverage Of Lyft Presents Skeptical View On Profitability Lyft stock fell Tuesday, following a 12% plunge Monday that stunned Wall Street, as analysts initiated coverage on the newly public ride-sharing company they find difficult to evaluate ... Trump To NASA: We Need Moon; Congress To NASA: We Need Reality The Trump administration's plan to speed up a moon shot was slammed on Capitol Hill Tuesday, as NASA was unable to say how much the accelerated mission would cosL. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 102 of 158 Wednesday, April 3, 2019 at 10:13:10 AM Eastern Daylight Time Subject: Is There Light At The End Of The Trade-War Tunnel? Date: Wednesday, April 3, 2019 at 9:08:39 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY' Market Prep AM I 4/3 Intel and Advanced Micro Devices surged as chip stocks led stock futures higher Wednesday, and the Dow Jones industrials closed in on a fresh high. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested ln certain ADRs. Promoted Conhmt By Hf Medid U.C Apple Privacy Policy Could Unlock Big Health Care Market Apple's privacy policy looms large as big data analytics change health care. Apple's positioning as the guardian of consumer privacy could give it an edge over Google, Amazon and others ... Dave & Buster's Q4 Results Beat, Expands Buyback Dave & Buste1·'s stock surged afte1· the gaming and dining chain reported strong fourth-quarter earnings and announced expanded buybacks ... Page 1 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 103 of 158 American Depositary Receipt (ADR) Settlement You mt,Y '"""'"""""'l>o from a SBttlement 11 you 1m"'"""'n m cert1;1in AORs Court Authorizezi Notice Promoted Content By Media Trump To NASA: We Need Moon; Congress To NASA: We Need Reality The Trump administration's plan to speed up a moon shot was slammed on Capitol Hill Tuesday, as NASA was unable to say how much the accelerated mission would cost. .. Pump Up Your Stock Profits With This Bullish Chart Pattern In a computer-generated pattern recognition study going back to 1963, the flat base made up a third of bases among a large set of the best growth stocks .... Page 2 of 3 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 104 of 158 Wednesday, April 3, 2019 at 5:57:25 PM Eastern Daylight Time Subject: Chip Stocks Dominate Market Rally Date: Wednesday, April 3, 2019 at 5:56:04 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 4/3 Semiconductor stocks led another Nasdaq rally Wednesday, but the session was marred by a stalling day for the S&P 500. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested ln certain ADRs. Promoted Content By Hf Medi,1 LLC O'Neil Portfolio Manager: The Major Bull Market Is Far From Over Some say the bull run is nearing its end, but it may be far from over. We analyze Chipotle stock and compare Apple vs Netflix .... New Twist Emerges In Ethiopian Air Probe As Boeing Tests 737 Fix Ethiopian Airlines pilots at the controls of the Boeing 737 Max that crashed last month reportedly followed some of the plane maker's emergency procedures. Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 105 of 158 American Depositary Receipt(ADR) Settlement Promoted Content By HF Media lLC Most Powerful Rocket Ever Carries NASA's Top Controversy, Ambition A new NASA rocket from Boeing has soared in just a few weeks to the top of the agency's human spaceflight ambitions, as well as its political agenda .. 4 Reasons This Dow Jones Bellwether Stock Is Headed For Trouble Caterpillar faces a tough slog in China and around the world, Deutsche Bank warned, just days after U.S. and Chinese manufacturing data eased worries about global economic growth .. Talk About Credit Card Rewards: Will Buffett Buy This Airline? Warren Buffett's Berkshire Hathaway is more likely to buy Delta Air Lines following the carrier's renewed partnership Tuesday with credit-card giant American Express, an analyst said ... These 2 Leaders Cleared Buy Points Wednesday: Which Is Stronger? Growth stocks O'Reilly /\utomotive and Radian Group both topped buy pui11ls in todoy's stock market. Is one stronger than tl1e other? ... Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 106 of 158 Thursday, April 4, 2019 at 10:00:30 AM Eastern Daylight Time Subject: Futures Tilt Higher As Facebook Rises, Tesla Dives Date: Thursday, April 4, 2019 at 9:05:42 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep AM I 4/4 Boeing and Facebook were early leaders Thursday, but Tesla dived and stock futures turned mixed as the Nasdaq and S&P 500 sought to extend their rallies. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested in certain ADRs. Promoted Content By HF Media LtC O'Neil Portfolio Manager: The Major Bull Market Is Far From Over Some say the bull run is nearing its end, but it may be far from over. We analyze Chipotle stock and compare Apple vs Netflix .. Boeing 737 Max Probe: Pilots Followed All Procedures Ethiopian Airlines pilots at the controls of the Boeing 737 Max that crashed last month followed all of Boeing's procedures, an investigation found, .. Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 107 of 158 American Depositary Receipt (ADR) Settlement You may r,rr'""''"M"' from a se!liemetlt you lnvestoo in 1;:ettmin ADRs. Crn::w! AuHmrizrJt:l N1:1fa:;e, LLc····. Small Medical Device IPO Prices At High End After Getting Rare Top Rating The Silk Road Medical !PO priced at 20 a share, at the high end of its expected range, after one IPO research firm gave the offering its highest rating . ., 8 Stocks Added To 18D's Premier Watch Lists Here are today's top growth stocks that have just been added to the IBD stock lists, including the IBD 50, IPO Leaders and the IBD Big Cap 20 .... Constellation Brands Rises After Earnings, Wine Sale Constellation Brands earnings beat 04 views but guidance was weak. The Corona beer maker sold wine brands to Gallo late Wednesday. Constellation Brands stock was flat. .. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 108 of 158 Thursday, April 4, 2019 at 6:59:02 PM Eastern Daylight Time Subject: Nasdaq Resilient But Software Leaders Slammed Date: Thursday, April 4, 2019 at 6:34:12 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 4/4 The tech-heavy Nasdaq lagged the major stock indexes Thursday. Software stars like Zscaler and Atlassian were hammered. American Depositary Receipt (ADR) Settlement You may get proceeds fron'l a settlement if you invested in certain ADRs. Pforrn:;t~d Content By HF M,:did LLC These 2 IPOs Soar In Debuts; Here's How To Play Them: Futures Here are today's top growth stocks that have just been added to the IBD stock lists, including the IBD 50, IPO Leaders and the IBD Big Cap 20 .. 'Monumental' Trade Deal 'Very Close' But Summit On Hold President Trump said a China trade deal is "very close," but didn't announce a summit with President Xi Jin ping, conti-adicting media repo1is .... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 109 of 158 American Depositary Receipt (ADR) Settlement You may get proceeds from a settlernent if you lrwested m certam AORs. Court Authorized Notice Promoted Content By HF Media llC Leaderboard Stock Slips As Short Seller Again Targets E-commerce Firm Shopify stock fell as short seller Citron Research renewed its battle w·1th thee commerce software provider. Shopify stock fell in late 2017 on a Citron warning but bounced back strongly .... 18D Stock Of The Day Triggers This 'Elevator' $14Ul3 Sell Rule Euronet Worldwide is the IBD tock Of The Day. After running up solid stock market gains, the ATM payments stock is hitting resistance at the 20% profit taking zone ... Is Tesla Stock Buyable? These Key Technical Metrics Provide Clues By analyzing the key traits of stocks to huy, wP: discuss whether Tesla stock is buyable now. It's important to look at the stock chart before buying, and Tesla is in a clear downtrend .. March Jobs Report Should Be Green Light For Dow Jones Stocks Friday's March jobs report could alleviate near-term recession fears and flash a green light for the Dow Jones ... Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 110 of 158 Friday, April 5, 2019 at 9:31:19 AM Eastern Daylight Time Subject: Premarket Trading Rises On Jobs Data Date: Friday, April 5, 2019 at 9:02:22 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep AM I 4/5 Chips edged higher and Boeing led the Dow after the March payrolls report Friday, as the S&P 500 aimed for a seventh straight advance. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested In certain AORs. Pn:wnoted Content By Hf Medis1 lLC 196,000 Jobs Added In March, Lifts Economic Outlook The U.S. economy added 196,000 jobs in March, easing concerns about a near-term slowdown. Dow Jones futures moved higher after the data .... This Leader With 7,600% Growth Hits Buy Zone Yogawear maker Lulu lemon Athletica has been on a monster stock market run by anyone's standards. Since hitting a low of 2. i 7 in 2009, it has increased in value by 7,600% and is on a tear.... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 111 of 158 American Depositary Receipt (ADR) Settlement you i!wesloo ln . Promoted Content By Fastest-Growing Large-Cap Stocks: Who Joins Amazon, Paycom? See who joins Amazon, Paycom, Palo Alto Networks, Atlassian, and Arista Networks on this list of the fastest-growing large-cap stocks .... See Which Stocks Just Came On And Off 18D's Top Screens Find the best stocks to buy and watch by seeing which top growth stocks were just added to the IBD 50, IPO Leaders and other IBD stock lists ... Lightning Hits Twice: Multiple Sell Signals Can Show In One Day Be sure to know as many reliable sell signals when you invest in stor.ks. When a stock has reached its peak, it can trigger multiple signals fast.. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 112 of 158 Friday, April 5, 2019 at 5:38:04 PM Eastern Daylight Time Subject: Is Nasdaq Ready To Break Out Again? Date: Friday, April 5, 2019 at 5:37:13 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 4/5 The Big Picture: Is Nasdaq Ready To Break Out Again? ($) KEN SHREVE I Apr 05, 2019 5:23 PM ET A better than expected March jobs report fueled another day of outperformance for the Nasdaq composite Friday. Small caps also showed bullish action. American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement if you invested in certain AORs. Promoted Content By HF Metll11 LtC Apple Privacy Stance Could Unlock This Huge New Market Apple's privacy policy looms large as big data analytics change health care. Apple's positioning as the guardian of consumer privacy could give it an edge over Google, Amazon and others ... Earnings Begin As Disney Plus, Boeing Q1 Deliveries Due: Action Plan ($) Earnings reports for the fi1·st quarter will start coming out, while Disney will unveil its streaming video service and Boeing will report 01 orde1·s and deliveries ... Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 113 of 158 American Depositary Receipt (ADR) Settlement You may get nrr,rm:>t1"' from a sernemenl you invested ln certew, Court Authorized Notrc,r · ·· t>romoted Content By HF LLC Which Stocks Have The Best Mutual Funds Been Buying? Alibaba, Autohome and four other China stocks lead the latest list of new buys by the best mutual funds. FANG stocks Netflix and Amazon also made the cut. .. IBD Stock Of The Day: Will Tinder Grow In iillJ\illllllUJlU)UI· International Markets? Match Group is the IBD Stock of the Day as the Tinder dating app operator crafts a shallow cup-with-handle chart pattern after a failed breakout. Match stock has gained 33% from a year ago .. Boeing Slashes 737 Max Output After Seeing Surge To Lofty Heights Production of the Boeing 737 Max will go down by 19% temporarily as the planemaker grapples with a worldwide grounding and customers reconsidering their orders. __ These Three Leaders Built Explosive Price Gaps On Strong Fundamentals Companies that make IBD's stock lists can differ greatly, but they do share one thing in common: They all have strong fundamentals fueling their stock price .. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 114 of 158 Monday, April 8, 2019 at 9:21:12 AM Eastern Daylight Time Subject: Nasdaq Sets Sights On All-Time Highs Date: Saturday, April 6, 2019 at 10:03:33 AM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY- Market Prep: Weekly Reads I 4/6 The stock market rebounded modestly last week, with growth names once again leading the way. Read The Big Picture to put the stock market action in perspective and how to play it. In the latest IBD Weekly, the cover story discusses how privacy policy could fuel 6R.Qle's health care ambitions. The iPhone maker's strong privacy stance, from web cookies to law enforcement, has helped it forge alliances with hospitals, researchers and consumers. The New America i;:irofiles Lululemon, the yogawear maker and retailer that is enjoying booming growth by expanding to men, overseas markets and online. Lululemon Athletica stock was a big winner in 2018 and recently broke out of a new bullish base. I'll be back Sunday evening with a new Stock Market TodaY. column highlighting futures and notable stocks to watch heading into the next week. Check out IBD's live market video after every closing bell. Get notifications on IBD's live videos b.Y. subscribing on YouTube. Ed Carson Follow Ed Carson on Twitter at .@/BO ECarson. American Depositary Receipt {ADR) Settlement You may get proceeds from a settlement if you invested in certain ADRs. Promoted Content By Hr Medl,i LLC Page 1 of 5 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 115 of 158 The Big Picture: Nasdaq Sets Sights On All-Time Highs($) A better H1an expected March jobs report fueled another· day of outperforrnance for the Nasdaq composite Friday. Small caps also showed bullish action Apple Privacy Stance Could Unlock This Huge New Market Apple's privacy policy looms large as big data analytics change health care. Apple's positioning as the guar·dian of consumer privacy could give it an edge over Google, Amazon and others ... -•a1 .,~ American Depositary Receipt (ADR) Settlement You may gel proceeds from a semement if you lnvested in certt,m ADREL Court Authorized Notice Promoted Content By HF Madia LLC This Leader With 7,600% Growth Hits Buy Zone Yogawear maker Lulu lemon Athletica has been on a monster stock market run by anyone's standards. Since hitting a low of 2.17 in 2009, it has increased in value by 7 ,600% and is on a tear... These Three Leaders Built Explosive Price Gaps On Strong Fundamentals Cu111µur1itcci llrul rnulw IDD's stock lists can cJifl'e1· 91·ecilly, !Jul l11c,y Liu slrore u11e thing in common: They all have strong fundamentals fueling lheir stuck µrice ... Page 2 of 5 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 116 of 158 Monday, April 8, 2019 at 9:20:25 AM Eastern Daylight Time Subject: Stock Market Is On The Cusp Of Long Bullish Phase Date: Sunday, April 7, 2019 at 6:52:35 PM Eastern Daylight Time From: IBD Market Prep To: INVESTOR'S BUSINESS DAILY" Market Prep PM I 4/7 Stock futures: The current stock market rally is about to show if it's a true bull market. Will software still lead? Is Boeing stock due to be grounded? American Depositary Receipt (ADR) Settlement You may get proceeds from a settlement lf you invested in certain AORs. Promoted Content By HF Media LtC AMO Leads 5 Hot Chip Stocks In Buy Range - But Here's The Catch AMD stock and Intel stock are among chip stocks to watch in buy zones. The chip sector is coming back to life after a sharp sell-off in 2018. Three Stocks From This Leading Group Are In Buy Range A trio of top auto parts retail stocks are in buy range: O'Reilly Auto Parts, Monro stock and Genuine Parts. No. 1 Copart is slightly extended .. Page 1 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 117 of 158 American Depositary Receipt (ADR) Settlement You may oro,cei;as from a sememe11t you invested m coitain ADRs. C6mtAuthodzM Notice. Promoted Content By Mooi0 Which Stocks Have The Best Mutual Funds Been Buying? Alibaba, Autohome and four other China stocks lead the latest list of new buys by the best mutual funds. FANG stocks Netflix and Amazon also made the CUL. Apple Privacy Stance Could Unlock This Huge New Market Apple's privacy policy looms large as big data analytics change health care. Apple's positioning as the guardian of consumer privacy could give it an edge over Google, Amazon and others ... -"j Boeing Slashes 737 Max Output After Seeing Surge To Lofty Heights Production of the Boeing 737 Max will go down by 19% temporarily as the planemaker gi-apples win1 a worldwide grounding and customers reconsidering their orders ... Two Top Earnings Reports On Tap: How To Play Them($) Delta stock has moved off lows ahead of its April 10 earnings report. Results from First Republic Bank, a top financial stock, are also right around corner. .. Page 2 of 4 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 118 of 158 Exhibit E Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 119 of 158 • USA TODAY NEWS Sl>ORTS un MONSY !RH TRAVR OPINION ,t::, s1• CltOSSWOIU)S MORE v Q. Sign In Verizon's first mobile 5G ctt1esgo live in April ifrPn,/l• ,, _, - AO CONTENT • T"vo Sanks That Pay 10 Times The Interest on Your sav1n9s Quiz; Guess Mcvie Tltle ,mm A Photo 20 \.'VeirdestAmertran Cars Ever Bum The Cost Of Medicare Supplement Plans Might Change Your Minct ADOUl Getting. - ctwl/T Allm(J{IIZED liO'l'ICE AMERICAN DEPOSITARYRECEIPT (,£\DR) SETTLEMENT You may- be entitled to•procceds from a class Jction-,ettlement if yo.i have' invested in anYof-!h~seADRs: ,Wf;,h;.;,,,,,,,~.f/!% Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 120 of 158 LEARNMORE Lifestyle Now COURT A!Jl'HOl Inside Nielsen And Deloitte's Joint Foray Into The Cannabis Industry - And Why It's A Big Deal .J~v.~rHM~~. ABB LTI). CO~PANIAENERGEUCA OE m:NAS GERAl:S Dl:AGEOPLC Want To See The Northern Lights? Then rt's Time To Visit Lapland 8raQJi,.;p,M, Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 121 of 158 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 122 of 158 St!:ph;s11,,; H€<1lf-"'J"" THEWALL STREET JOURNAL. EXPLORE POPCASTS l/,S,E-ditb$.. Februc-q2:S,2019 ~6otEdition Video Home World !J.S, Politks Ec~norny Business Tech Mark~ts Oplnlo1 life & Arts Real Estate WSJ, Magazine s~~rd, Q. ECO~OMY $:IJ$lNts.S MARKVS MAAK~' F'cd's:Bo.stkExp-i:cts GU10 Sell BioPh.-i.rmia °""'""'Stru-\up:.(kow Up Ho!tdays Wc-::c Joy-O-t.$ f.a!b\,: < Otic-Riit.:::1Usc1'hfo \'to\Y, Bi.5ir:c-ss to Dannhc::~-for atiNclmn:n Ucl.:::,~ > Anothc-r ln 2020 $21.4.Billio~ ~ ' M'£-t.!:,· AutoNation GnA- ~~g~a=~lr.s~ %",-,TX Fflii¥§H MARKETS HEJ'•.RD0/1:THESTREET Maybe Some Good News From Retailers Earnings expectations are low after disappointing holiday sales, but some retaHers could eke out a win COU!U'. AUT!!ORlZEtl NOTl~E, AMERICAN DEPOSJTARYRECEIPT {i'\DRj Sl::'TTLHAfNT YOum,3y be entitled to pioceeds frrn~,.i~ d.:is~ action 5eidement lf you , havehwested irtan,-ofthese,ADRs: Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 123 of 158 WIA~ r ssa:isoo~ (;,>,1t N~tiMlAl US1&'!'r·0/32'fi8!~'''""·,'§ {s~(i;;>m .i.. £m>UID "!"· THEWALL STREET JOURNAL. q < > Government Probes Fidelity Over Obscure Mutual-Fund Fees Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 124 of 158 Exhibit F Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 125 of 158 .A. Class Action No!lce ,., Sponsored· 0 You may be entitled to proceeds from a class action settlement if you have invested in any of these ADRs: ABB Ltd. Compania Energetica De Minas Gerais Diageo PLC Ericsson ... See More WWW./\DRFXSETTLEMENl',COM ADR FX Settlement learn More Court Authoriz0d Notice Like 0 Comment ..A.· Class Action Notice '111191" Sponsored · li.1 You may be entitled to proceeds from a class action settlement if you have invested in any of these ADRs: ABB Ltd. Compania Energetica De Minas Gerais Diageo PLC Ericsson ... See More AMERICAN DEPOSITARY RECEIPT * ... ·• WWW.ADRFXSETTLEMENT.COM ADR FX Settlement Learn More Cour1 Aulhoriz1Jd Notice W Comrnwt Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 126 of 158 ~ Class Action Notice ~ Sponsored learn More Q O Y/ You may be entitled to proceeds from a class action settlement if you have invested in any of these ADRs: .. mNe ~ Class Action Notice ~ Sponsored AMERICAN DEPOSITARY RECEIPT SETTLEMENT learn More Q O Y/ You may be entitled to proceeds from a class action settlement if you have invested in any of these ADRs: ,, inure Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 127 of 158 Promoted ADR FX Settlement You may get proceeds from a settlernent if you invested in certain ) ADRs .. Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 128 of 158 Exhibit G Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 129 of 158 If You Received A Cash Distribution In Connection With Certain American Depositary Receipts ("ADRs") For Which Citibank N.A. Served As Depositary Or If You Currently Own Such ADRs, Your Rights May Be Affected IEnglish I PR Newswire ID: 2382889-1 Clear Time Feb 22, 2019 9:17 AM ET Pickup Where did my release get picked up? 157 86,478,420 total pickup total potential audience Traffic What traffic did my release generate? 371 2,483 release views web crawler hits Audience Who are the audiences viewing my release? 53 40 590 1,081 media views organization views targeted influencers Associated Press outlets Engagement How are people engaging with my release? 91 total engagement actions 91 click-throuQhs Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 130 of 158 Industry Benchmarks On a scale of, - , 00, how this release pertormed compared to other similar releases. 49 total visibility 66 58 24 pickup traffic audience 94 engagement Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 131 of 158 Pickup Overview [ TOTAL PICKUP 157 TOTAL POTENTIAL AUDIENCE 86M Exact Match 157 postings Exact Match 86M visitors Total Pickup Over Time Total pickup since your content was distributed 1/5 150 125 8 100 D. . .@ 0:: 75 ~ 50 25 0 2019-02-22 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 132 of 158 Total Pickup by Source Type Total Pickup by Industry Newspaper (73/46.5%) • Media & Information (134/85.4%) Broadcast Media (47/29.9%) • Financial (19/12.1%) Online News Sites & Other Influencers (22/i 4.0%) ·' Business Services (1 /0.6%) Financial News Service (9/5.7%) Multicultural & Demographic (1/0.6%) • News & Information Service (3/1.9%) • Policy & Public Interest (1/0.6%) Other (3/1.9%) Other (i/0.6%) Exact Match Pickup Exact matches are full text postings of your content which we have found in the online and social media that we monitor. Understand how it is calculated. Your release has generated 157 exact matches with a total potential audience of 86,478,420. Logo Outlet Name Location Source Type Industry Potential Audience Yahoo! Finance Global Online News Sites & Media & 73,379,000 ~A[)(J! Online c;I View Release Other Influencers Information visitors/day HW,~U Chase United News & Information Financial 2,631,000 CHASEO Online c;I View Release States Service visitors/day Business Insider: Markets Insider United Online News Sites & Financial 1,459,000 Online c;I View Release States Other Influencers visitors/day Market Watch United Financial News Service Financial 789,000 I rn Online c;I View Release States visitors/day TheStreet.com United Trade Publications Financial 230,000 Thi~tmt Online c;I View Release States visitors/day Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 133 of 158 finanzen.net Germany Financial News Service Financial 179,000 Online O View Release visitors/day Wichita Business Journal United Newspaper Media & 168,000 iijb!mlnl Online O View Release States Information visitors/day Washington Business Journal United Newspaper Media & 168,000 ,l.. L.,. Bh\11/rrn,11 Online O View RelP.RSP. States Information visitors/day ~ 1111111:.1~1> Minneapolis/ St. Paul B11siness ,lnurnal United Newspaper Media & 1 G0,000 ~l~t1I IJIMI, Online O View Release Stntes Information viaitors/day Triangle Business Journal United Newspaper Media & 168,000 imY!f~1,tmi Online O View Release States Information visitors/day Business Journal of the Greater Triad Area United Newspaper Media & 168,000 'll!.~~!t~~l.llll. Online O View Release States Information visitors/day Tampa Bay Business Journal United Newspaper Media & 168,000 liii~~mal Online O View Release States Information visitors/day St. Louis Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day South Florida Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day Puget Sound Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day M¾iifl:Wf#. San Jose Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day San Francisco Business Times United Newspaper Media & 168,000 Online O View Release States Information visitors/day San Antonio Business Journal United Newspaper Media & 168,000 ~~\1\l J~1,1t Online O View Release States Information visitors/day i Sacramento Business Journal United Newspaper Media & 168,000 l~-~/~%1 Online O View Release States Information visitors/day Bizjournals.com, Inc. United Newspaper Media & 168,000 to~/ournalr Online O View Release States Information visitors/day !;qkw.!Q½ Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 134 of 158 Portland Business Journal United Newspaper Media & 168,000 !~1~J1i;i1 Online c;;J View Release States Information visitors/day l:ilHllP Pittsburgh Business Tirnes United Newspaper Media & 168,000 ~II Online c;;J View Release States Information visitors/day Bu~nessJournal~Phoen~ United Newspaper Media & 168,000 Online c;;J View Release States Information visitors/day ~i~~rnil~t--· Philadelphia Business Journal United Newspaper Media & 168,000 R\ll Online c;;J View Release States Information visitors/day Pacific Business News United Newspaper Media & 168,000 1v:1111:ll1m'1m\m Online c;;J View Release States Information visitors/day Orlando Business Journal United Newspaper Media & 168,000 llliNi Online c;;J View Release States Information visitors/day Nashville Business Journal United Newspaper Media & 168,000 Online c;;J View Release States Information visitors/day Business Journal of Greater Milwaukee United Newspaper Media & 168,000 ~~}.i![11i~t~I Online c;;J View Release States Information visitors/day Memphis Business Journal United Newspaper Media & 168,000 ~~ffln Online c;;J View Release States Information visitors/day Business First of Louisville United Newspaper Media & 168,000 ~tmmf1m Online c;;J View Release States Information visitors/day losAn,les Los Angeles Business from bizjournals United Newspaper Media & 168,000 ,,,!,,,._, Online c;;J View Release States Information visitors/day Kansas City Business Journal United Newspaper Media & 168,000 nullNBi ~)lRil~ Online c;;J View Release States Information visitors/day Jacksonville Business Journal United Newspaper Media & 168,000 ~llltn~ Journdl Online c;;J View Release States Information visitors/day Houston Business Journal United Newspaper Media & 168,000 fi1;1'~i'.i\JO!'I\\\I. Online c;;J View Release States Information visitors/day Denver Business Journal United Newspaper Media & 168,000 [}N\l~JO~fl\\l. Online c;;J View Release States Information visitors/day Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 135 of 158 Dayton Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day Dallas Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day Business First uf Columbus United Newspaper Media & 168,000 &DIN]~ f1r~1 Online O View Release States Information visitors/day Cincinnati Business Courier United Newspaper Media & 168,000 ~IIl~fXl l)XRW~ Online O View Helease States Information visitors/day Charlotte Business Journal United Newspaper Media & 168,000 ~~~i,fis}m\t Online O View Release States Information visitors/day Business First of Buffalo United Newspaper Media & 168,000 &911eiftrfil Online O View Release States Information visitors/day JM'-f'1t!iru~ Boston Business Journal United Newspaper Media & 168,000 ~~~1,1 Online O View Release States Information visitors/day c;;;; Birmingham Business Journal United Newspaper Media & 168,000 l~El~mx~ Online O View Release States Information visitors/day l:laltimore Business Journal United Newspaper Media & 168,000 Online O View Release States Information visitors/day n, Austin Business Journal United Newspaper Media & 168,000 .. Online O View Release States Information visitors/day Atlanta Business Chronicle United Newspaper Media & 168,000 Online O View Release States Information visitors/day New Mexico Business Weekly United Newspaper Media & 168,000 &~i~t~1Wm1x Online O View Release States Information visitors/day Business Review (Albany) United Newspaper Media & 168,000 rii'~m1rulll1\' Online O View Release States Information visitors/day .~·,\:•i'.'•i ❖'c'< ! PR Newswire United PR Newswire Media & 123,000 ~~Newswire Online O View Release States Information visitors/day Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 136 of 158 ADVFN Germany Germany Financial News Service Financial 123,000 Online c;;J View Release visitors/day SOGOTRADE United News & Information Financial 65,000 t!IOGOrnADf Online c;;J View Release States Service visitors/day WFMZ-TV IND-69 [Allentown, PA] United Broadcast Media Media & 51,000 Online c;;J View Release States Information visitors/day fi~~tll ,-i~wit' Pittsburgh Post-Gazette [Pittsburgh, PA] United Newspaper Media & 40,000 ·/$/?Jrirf- Online c;;J View Release States Information visitors/day NrnsOK Oklahoman [Oklahoma City, OK] United Newspaper Media & 39,000 Online c;;J View Release States Information visitors/day Benzinga United Online News Sites & Financial 23,000 ~t~fo\iliA,,, ,t 1,~ Online c;;J View Release States Other Influencers visitors/day flhii,$';,m\ Daily Herald [Chicago, IL] United Newspaper Media & 18,000 Online c;;J View Release States Information visitors/day Marketplace United Broadcast Media Media & 17,000 Online c;;J View Release States Information visitors/day WRAL-TV CBS-5 [Raleigh, NC] United Broadcast Media Media & 17,000 Online c;;J View Release States Information visitors/day Townhall Finance United Financial News Service Media & 17,000 Online c;;J View Release States Information visitors/day Tamar Securities United Online News Sites & Financial 17,000 Online c;;J View Release States Other Influencers visitors/day FinancialContent - PR Newswire United Financial News Service Media & 17,000 @f in,an~i~I Online c;;J View Release States Information visitors/day rrrtauom Rockford Register Star [Rockford, IL] United Newspaper Media & 17,000 Online c;;J View Release States Information visitors/day Value Investing News United Financial News Service Financial 17,000 Online c;;J View Release States visitors/day DM!/i'irn,;Akrt1 Daily Penny Alerts United Online News Sites & Financial 17,000 Online c;;J View Release States Other Influencers visitors/day Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 137 of 158 Benefit Plans Administrative Services United Online News Sites & Financial 17,000 Online l:;J View Release States Other Influencers visitors/day 1st Discount Brokerage United Financial News Service Financial 17,000 - Online l:;J View Release States visitors/day KnTV-TV CBS-6 [Tulsa, OK] Unitod Broadcast Media Media & 16,000 Online l:;J View Release States Information visitors/day WRCB-TV NBC-3 [Chattanooga, TN] United Broadcast Media Media & 14,000 Online l:;J View Release States Information visitors/day WBBH-TV NBC-2 [Fort Myers, FL] United Broadcast Media Media & 8,000 visitors/day Online l:;J View Release States Information KWTV-TV CBS-9 [Oklahoma City, OK] United Broadcast Media Media & 6,000 visitors/day New)~.com Online l:;J View Release States Information Finanzen.at Germany Online News Sites & Financial 5,000 visitors/day Online ~ View Release Other Influencers KFMB-TV CBS-8 [San Diego, CA] United Bro;arlr.;ast Media Media & 5,000 visitors/day Online~ View Release States Information WBOC-TV CBS-16 [Salisbury, MD] United Broadcast Media Media & 4,000 visitors/day Online l:;J View Release States Information One News Page Global Edition Global Online News Sites & Media & 4,000 visitors/day on1Ne1ri/itei Online l:;J View Release Other Influencers Information WVIR-TV NBC-29 [Charlottesville, VA] United Broadcast Media Media & 4,000 visitors/day Online l:;J View Release States Information I. l Ticker Technologies United Financial News Service Financial :;,ooo visitors/day Online l:;J View Release States Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 138 of 158 Spoke United News & Information Business Services 3,000 visitors/day ~~':·Ke Online c;;J View Release States Service KITV-TV ABC [Honolulu, HI] United Broadcast Media Media & 3,000 visitors/day Online c;;J View Release States Information KAKE-TV ABC [Wichita, KS] United Broadcast Media Media & 3,000 visitors/day Online c;;J View Release States Information WZVN-TV ABC-7 [Fort Myers, FL] United Broadcast Media Media & 3,000 visitors/day fl Online c;;J View Release States Information WSIL-TV ABC-3 [Carterville, IL] United Broadcast Media Media & 2,000 visitors/day Online c;;J View Release States Information KTVN-TV CBS-2 [Reno, NV] United Broadcast Media Media & 2,000 visitors/day Online c;;J View Release States Information myMotherLode.com [Sonora, CA] United Newspaper Media & 2,000 visitors/day Online c;;J View Release States Information WICU-TV NBC-12 / WSEE-TV CBS-35 United Broadcast Media Media & 2,000 visitors/day [Erie, PA] States Information Online c;;J View Release NewsBlaze United Online News Sites & Media & 1,420 visitors/day NewsBlm Online c;;J View Release States Other Influencers Information WENY-TV [Horseheads, NY] United Broadcast Media Media & 1,000 visitors/day Online c;;J View Release States Information RFD-TV [Nashville, TN] United Broadcast Media Media & 1,000 visitors/day Online c;;J View Release States Information WLNE-TV ABC-6 [Providence, RI] United Broadcast Media Media & 1,000 visitors/day Online c;;J View Release States Information WICZ-TV FOX-40 [Binghamton, NY] United Broadcast Media Media & 1,000 visitors/day Online c;;J View Release States Information ,ijwnhldr~I The Chronicle Journal [Thunder Bay, ON] Canada Newspaper Media & 1,000 visitors/day Online c;;J View Release Information KEYC-TV CBS-12 / FOX-12 [Mankato, MN] United Broadcast Media Media & 1,000 visitors/day Online c;;J View Release States Information Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 139 of 158 Stock Tips Guru United Online News Sites & Financial Online c;;:l View Release Kingdom Other Influencers • Latin Business Today United Online News Sites & Multicultural & Online c;;:l View Release States Other Influencers Demographic lnvortir USA Uniletf Online News Sites & Media & IU Online c;;:l View Release States Other Influencers Information l\lUt\l. Axcess News United Online News Sites & Media & Ax(essNe~l Online c;;:l View Release States Other Influencers Information ,'..<·,,,·,.. ,,. 1 stCounsel United Online News Sites & Policy & Public l~Coun)el Online c;;:l View Release States Other Influencers Interest WBCB-TV CW-21 (Youngstown, OH) United Broadcast Media Media & Online c;;:l View Release States Information KFMB-TV CW [San Diego, CA] United Broadcast Media Media & au Online c;;:l View Release States Information IMWtGO Telemundo Lubbock [Lubbock, TX] United Broadcast Media Media & Online c;;:l View Release States Information mt,¥1,t) :-,R:;i ' Suncoast News Network [Sarasota, FL] United Broadcast Media Media & Online c;;:l View Release States Information ProfitQuotes United Financial News Service Online c;;:l View Release States One News Page Unites States Edition United Online News Sites & OneNeiMiie@ Online c;;:l View Release States Other Influencers Information Oldies 97. 7 FM [Lubbock, TX] United Broadcast Media Media & Online c;;:l View Release States Information KMYL-TV MyLubbock-TV [Lubbock, TX] United Broadcast Media Media & ri:I Online c;;:l View Release States Information '::ioc~w KX I CH-M 106.5 Magic [Lubbock, TX] United Broadcast Media Media & Online L.J View noloaco fi1HIP.8 l11fun11aliu11 KLCW-TV Lubbock CW [Lubbock, TX] United l:lroadcast Media Media & Online c;;:l View Release States Information Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 140 of 158 KUAM-TV NBC-8 / CBS-11 [Hagatna, United Broadcast Media Media & Guam] States Information Online l;J View Release KHTT-FM 1 06.9 [Tulsa, OK] United Broadcast Media Media & Online l;J View Release States Information KASA-TV Telemundo-2 [Albuquerque, NM] United Broadcast Media Media & T Online c;J View Release States Information lh!l\'1>0 ;ici KJTV-TV FOX-34 [Lubbock, TX] United Broadcast Media Media & Online l;J View Release States Information WBOC-TV FOX-21 [Salisbury, MD] United Broadcast Media Media & Online l;J View Release States Information KTTU-FM 97.3 Double T [Lubbock, TX] United Broadcast Media Media & Online l;J View Release States Information ~1,rn;w DatelineCarolina United Online News Sites & Media & Online c;J View Release States Other Influencers Information Warren and Hunterdon Counties CityRoom United Online News Sites & Media & (i [Warren County, NJ] States Other Influencers Information Online l;J View Release El Paso CityRoom [El Paso, TX] United Online News Sites & Media & (i Online c;J View Release States Other Influencers Information KXBL-FM 99.5 [Tulsa, OK] United Broadcast Media Media & Online l;J View Release States Information tlliti'iTI1 KLBB-FM 93.7 The Eagle [Lubbock, TX] United Broadcast Media Media & Online l;J View Release States Information ~\1,' ~i)]M,>) ~~,.),<, KBEZ-FM 92.9 [Tulsa, OK] United Broadcast Media Media & Online l;J View Release States Information • KFMB 760-AM [San Diego, CA] United Broadcast Media Media & @~ Online c;J View Release States Information lAlK KFAQ-AM 1170 [Tulsa, OK] United Broadcast Media Media & 1170 Online l;J View Release States Information RADIO KLZK-FM 107.7 YES FM [Lubbock, TX] United Broadcast Media Media & ' Online l;J View Release States Information Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 141 of 158 100,7-FM The Score [Lubbock, TX] United Broadcast Media Media & Online O View Release States Information IBTN9 US Global Online News Sites & Media & Online O View Release Other Influencers Information lmNlf/N KQCW-TV CW12/1!J [Tulsa, 01,] United Broadcast Media Media & Online O View Release States Information Fat Pitch Financials United Online News Sites & Financial Online O View Release States Other Influencers Money Savvy Living United Blog-Parental Influencers Retail & Online O View Release States Consumer Winslow, Evans & Crocker United Online News Sites & Financial 1l-""" Online O View Release States Other Influencers Manhattanweek United Online News Sites & Media & Online O View Release States Other Influencers Information KLKN-TV ABC-8 [Lincoln, NE] United Broadcast Media Media & Online O View Release States Information KFMB I 00,7 PM [San Diego, CAJ U111led l:lroadcast Media Media & Online O View Release States Information I' Wapakoneta Daily News [Wapakoneta, United Newspaper Media & OH] States Information Online O View Release Valley City Times-Record [Valley City, ND] United Newspaper Media & Online O View Release States Information The Post and Mail [Columbia City, IN] United Newspaper Media & Online O View Release States Information The Pilot News [Plymouth, IN] United Newspaper Media & Online O View Release States Information i'·--h; The Evening Leader [St. Marys, OH] United Newspaper MP-rlia I\ Online O Vli':W Rded~e Slates lntormation iLEADeR,~,-•-p!r~ I he Antlers American [Antlers, OK] United Newspaper Media & rill•lt!ft Online O View Release States Information Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 142 of 158 Sweetwater Reporter [Sweetwater, TX] United Newspaper Media & Online O View Release States Information 1 1 Starkville Daily News [Starkville, MS] United Newspaper Media & .hriu'D ), ~ \ j, t,11K1, ; 1l:.,.1 Online O View Release States Information I The Daily Press [St. Marys, PA] United Newspaper Media & l Online O View Release States Information 1 Ridgway Record [Ridgway, PA] United Newspaper Media & ~fr:f'!'.\'Jl!J.v/11. ~1 Online O View Release States Information P,A:NH!i'it\~,;r The Punxsutawney Spirit [Punxsutawney, United Newspaper Media & PA] States Information Online O View Release Poteau Daily News [Poteau, OK] United Newspaper Media & Online O View Release States Information The Observer News Enterprise [Newton, United Newspaper Media & a1w1 lirdi!q1t~ NC] States Information 11l\t1l'JN.tll'li:ifh':W, Online O View Release Minster Community Post [Minster, OH] United Newspaper Media & Online O View Release States Information Mammotl1 Tuni'i Mammoth Times [Mammoth Lakes, CA] United Newspaper Media & Online O View Release States Information MmtdUl\fl!ORO Malvern Daily Record [Malvern, AR] United Newspaper Media & Online O View Release States Information The Kane Republican [Kane, PA] United Newspaper Media & Online O View Release States Information i tiiin1ifil11~1ir 1 Inyo Register [Bishop, CA] United Newspaper Media & .,<,..,.i,v.,-"''.-.;.:.J Online O View Release States Information The Deer Park Tribune [Deer Park, WA] United Newspaper Media & !xtrMTrifuntt Online O View Release States Information Decatur Daily Democrat [Decatur, IN] United Newspaper Media & Online O View Release States Information Daily Times Leader [West Point, MS] United Newspaper Media & Online O View Release States Information Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 143 of 158 Borger News Herald [Borger, TX] United Newspaper Media & ~1!~~ Online c;l View Release States Information Big Spring Herald [Big Spring, TX] United Newspaper Media & Online c;J View Release States Information The Saline Courier [Benton, AR] United Newspaper Med'1a & lij[I1m1turnirn OnlinP. c;J View Release State~ Information ThP. Mnmina News [Blackfoot, ID] United Newspaper Media & Online c;J View Release States Information Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 144 of 158 Traffic Overview Total Release Views & Web Crawler Hits 2.9K 1 ..... _R_E_LE_A_s_E_v_1E_w_s_____ 37_1_I .__M_u_L_T1_M_E_o1_A_v_1E_w_s_&____ o__, WEB CRAWLER HITS 2.5K !_ . _ ENGAGEMENT I. Media Views 53 views Public Views 318 views Partner Sites 46 views PR Newswire Channels 272 views Release Views Release Views Over Time 1000 101 100 ~3 23 "18 18 10 5 0 (\/ ZO ill C l'- LC) C) l.f) 0 C() N w N t"\J 9 N C\I 9 0 0 Media Views on PR Newswire for Journalists Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 145 of 158 Top 10 Outlets First News Live . . 1 Tho Page (1) Chingari (1) Daily News (1) iv1MF', USA (1) Ho,ilthevont7 ( 1) Way:!Orilirn, (I) Deccan Herald (1) EMS Chemie A .. Nicole Revels -,J ... 0 2 Views Views on Partner Sites Top 10 Sites Not Available (10) 10 WICZ-TV FOX· .. l Spoke (3) RFD-TV [Nashvi. .. ADVFN German .. . Ticker Technolo .. . TheStreet.corn (2) WFiv1Z-TV IND- ... WBOC-TV FOX .. 0 5 10 15 Views Trnffir. to PR Newswire Properties Type of Views Views Type Views Total Views on PR Newswire Properties 272 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 146 of 158 Type Views Desktop Views 155 Mobile/Tablet Views 117 Total Views on PR Newswire Properties 272 Desktop Views Mobile/fable\ Views External Traffic Sources Understand how viewers found your release. Source Source Type Instances Direct Direct 57 Google Search Engine 175 Yahoo! Search Engine 7 Bing Search Engine 5 Ask.com Search Engine 3 AOL Search Engine DuckDuckGo Search Engine Direct • Search Engine PR Newswire Properties prnewswire.com PR Newswire Properties 17 Other Sites start.alt.net Other Sites 2 dnserrorassist.att.net Other Sites windstream.net Other Sites search.myway.com Other Sites owler.com Other Sites Total 272 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 147 of 158 Search Engine Keywords The search terms that visitors to your release use to find it. Note that Google increasingly does not make this data available. Google keywords not available: 175 Search Search Term Instances Engine Ring Not Available doec citibank have adr Gcttlcmcnt with kcc what it the merryman et al lawsuit about bcbjmeleqorhcudmmjgejfsbfk-... www.citibankadrsettlement.com 2 II citibankadrsettlement.com does citibank have adr sett ... Ask bcbjmeleqorhcudmmjgejfsbfk- · what it the merryman et al. .. Jeeves hjll0gxq5r_u ilkrgv7ba 19jzjyihzd3mojjwwm9e8- amjvkvsxpzzjbzt9lxt9hfwj5phou1 a4g2sw7nyzjzi0eiy3 www.citibankadrsettlement.com The rest citibankadrsettlement.com 2 AOL Not Available Total 9 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 148 of 158 Audience Overview VIEWS FROM IDENTIFIED AUDIENCES AP & INFLUENCER LIST RECIPIENTS 93 1.7K Media Views 53 Wire Distribution / AP Outlets 1.1K Organization Views 40 Targeted Influencers 590 Audience Summary Media Demographics A break down of the industries covered, the media types and the locations of the journalists & bloggers accessing your release on PR Newswire for Journalists. Top Industries Top Media Types Top Countries 25 20 20 15 10 10 5 5 0 0 United States Ill India Canada : Argentina Japan The rest Geo-segmentation Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 149 of 158 See where views of your release originated. Select a region: World View Views by country >0 . i - 10 10 - 30 30 - 100 • 100-300 •.300-1 000 .t>.f"ODO' Views by state >0 1 - i 0 10 - 30 30-100 • 100-300 • 300-1 000 > 1 000 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 150 of 158 Views by province >0 1 -10 10-30 ,,; 30-100 B 100-300 300 - 1 000 > 1 000 Views by country >0 1 -10 10-30 30 100 100 - 300 B 300-1 000 > 1 000 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 151 of 158 Views by country >0 1 - 10 10 - 30 30-100 • 100-300 • 300-1 000 > 1 000 Audience Details Media Views See the details of each media outlet from PR Newswire for Journalists that viewed your release. Views Outlet Industry Souroo Typo r.n11nt1·y V first IJews Live 1-reelance/Wnter India The Page General Business Newspaper India Chingari General Business Newspaper India Daily News Other Other South Africa MMP, USA Auto, Broadcast, Consumer Products, Energy, Television United Entertainment, Environment, Features, Financial States Services, General Business, Healthcare, Heavy Industry, Media, Other, Public Issues, Sports, Technology, Transportation, Travel Healtheventz Broadcast, Environment, Healthcare Blogger, Consumer Periodicals, India Freelance/Writer, Newspaper, Other, Radio, Television, Trade Periodicals, Web/On-Line Service, Wire Service Way2Online Transportation Freelance/Writer India Deccan Herald Features, Financial Services, General Business, Newspaper India Technology EMS Chemie AG Auto, Consumer Products, General Business, Other Switzerland Technology Total num 53 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 152 of 158 Nicole Revels - Journalist Public Issues Freelance/Writer United States prnewswire Auto Other United States Polish N Glitter Consumer Products, Healthcare Blogg er India NewsRx Auto, Broadcast, Consumer Products, Energy, Web/On-Line Service United Entertainment, Environment, Features, Financial States Services, General Business, Healthcare, Heavy Industry, Media, Other, Public Issues, Sports, Technology, Transportation, Travel Great Lakes Banker Financial Services Trade Periodicals United States Troe Radio Broadcast, Consumer Products, Energy, Radio Canada Entertainment, Environment, General Business, Healthcare, Heavy Industry, Media, Public Issues, Technology, Transportation, Travel Univision Dallas Broadcast, General Business, Healthcare, Media, Television, Web/On-Line Service United Other, Public Issues, Sports, Technology, States Transportation, Travel Delion Environment, Financial Services, General Blogger, Newspaper Canada Business, Other, Technology Prevue Meetings & Incentives Energy, Environment, General Business, Public Freelance/Writer, Other United Issues, Technology, Transportation, Travel States Robins Regional Auto, Energy, Entertainment, Features, Financial Newspaper United Services, General Business, Healthcare, Heavy States Industry, Public Issues, Sports, Technology, Transportation, Travel Arutz 7 Auto, Broadcast, Consumer Products, Energy, Newspaper, Radio, Web/On- Israel Entertainment, Environment, Features, Financial Line Service Services, General Business, Healthcare, Heavy Industry, Media, Other, Public Issues, Sports, Technology, Transportation, Travel BioMetAuth.com Technology Freelance/Writer United States PR Newswire Auto, Broadcast, Consumer Products, Energy, Blogger, Consumer Periodicals, Canada Entertainment, Environment, Features, Financial Freelance/Writer, Newspaper, Services, General Business, Healthcare, Heavy Other, Radio, Television, Trade Industry, Media, Other, Public Issues, Sports, Periodicals, Web/On-Line Technology, Transportation, Travel Service, Wire Service MMP USA Consumer Products, Environment, General Television United Business, Healthcare, Technology, Travel States PR Newswire Other Wire Service United States God4b Auto, Broadcast, Consumer Products, Energy, Blogger, Freelance/Writer United Entertainment, Environment, Features, Financial States Services, General Business, Healthcare, Heavy Industry, Media, Other, Public Issues, Sports, Technology, Transportation, Travel Total num 53 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 153 of 158 16 Valvulas Auto, Healthcare Web/On-Line Service Argentina Real Tv Canal 41 Broadcast, Entertainment, Environment, Newspaper, Television Peru Features, MecJia, Public Issues, Sports SNL Energy Energy Trade Periodicals United States heart & soul Entertainment, Healthcare, Travel Consumer Periodicals, Radio, United Web/Un-Line Service States Ecu11ur11ic Review Auto, Energy, Features, ~,nancral Services, Freelance/Writer, Newspaper, Pakistan Media, Public Issues, Sports Trade Periodicals IDG Japan Technology Consumer Periodicals, Web/On- Japan Line Service, Wire Service Thomson Corp Technology Wire Service India PR Technology Other Malaysia Freelancer Other Trade Periodicals United States New York 1 News Other Television United States WSAZ Financial Services Television United States Walla Walla Union Bulletin Features, Healthcare, Technology Newspaper United States Feather River Bulletin Other Newspaper UnitAd States http://gay_blog.blogspot.com/ Other, Travel Web/On-Line Service United States Zee News Auto, Broadcast, Consumer Products, Financial Television India Services Kingsport Times-New Other Newspaper United States Mega Autos Auto Consumer Periodicals, Web/On- Argentina Line Service Okinawa Marine Broadcast, Environment, Features, Financial Freelance/Writer, Newspaper, Japan Services, Media, Public Issues, I echnology, Web/On-Line Service, Wire Transportation, Travel Service Gaceta UNAM Environment, Features, Healthcare, Media, Public Newspaper, Web/On-Line Mexico Issues, Sports, Travel Service ·1 he Kyle & Jackie O Show Rroarlr.ast, Consumer Products, Entertainment, Radio Australia Features, Media, Other, Public Issues, Technolo~y A1rnikaee Broadcast, Consumer Products, Energy, Blogger, Freelance/Writer, United E11lertainment, Features, General Business, Newspaper, Web/On-Line States Modin, Other, Public Issues Se,vice Total num 53 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 154 of 158 Coelum Other Consumer Periodicals, Web/On Italy line Service News Aktuell Other Wire Service Switzerland Randall-Reilly Publishing Co. Transportation Trade Periodicals United States Telecos Consumer Products, Energy, Environment, Other Spain Healthcare, Technology Freelancer Entertainment, Features, Healthcare Freelance/Writer, Newspaper United States Houston Chronicle Features Newspaper United States Formula 4 Media / Sports Broadcast, Consumer Products, Entertainment, Blogger, Consumer Periodicals, United Insight Extra Healthcare, Media, Sports Freelance/Writer, Other, States Web/On-Line Service, Wire Service Total num 53 Organization Views See which organizations have viewed your release Views Organization Headquarters Country Location Parent Organization Industry V Citigroup 283 King George Rd us UNITED Citi Financial Services 8 STATES Robbins Geller Rudman & Dowd LLP 655 West Broadway UNITED 4 STATES Deutsche Bank 2 Gatehall Drive us UNITED Deutsche Bank AG Financial Services STATES The Bank of New York Mellon Corporation One Wall Street us UNITED The Bank of New York Financial Services 2 STATES Company , Inc. Ogilvy 23/F ,The Center 99 Queen's Road HK HONG KONG Ogilvy & Mather Worldwide, Business Services 2 Central Inc. Lake Nona Sales 9801 Lake Nona Club Drive us UNITED Real Estate & 2 STATES Construction OpointAS Akersgata 28 A Sentrum NO SWEDEN OpointAS Volo.com SAL IT ITALY MAR KIT INDIA SERVICES PVT. LTD IN INDIA Braveway Los Angeles DC 600W 7th St us UNITED STATES NightOwl Discovery 724 North 1st St# 500 us UNITED NightOwl Discovery Inc Law Firms & Legal STATES Services Sudani-Huawei-WCDMA SD SUDAN St. John's University, New York 8000 Utopia Parkway us UNITED St. John's University Education STATES Katholische Universitaet Eichstaett Ostenstr. 24 Germany DE GERMANY Totalnum 40 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 155 of 158 Wunderman Chicago 222 Merchandise Mart Plaza UNITED STATES PORT AUTHORITY OF New York and 241 ERIE ST us UNITED The Port Authority Government New Jersey STATES Tufts University 169 Holland St us UNITED Tufts University Education GTAT[S Cu,11111eri.;e lrnura11ce 11 GORE RD us UNITED The Commerce Insurance Insurance STATES Company BALLIE GIFFORD & CO UK UNITED l Frcehills AU AUSIHALIA l-reeh1lls Law Firms & Legal Services Options Technology ltd 4th Floor, Portland House, us UNITED Bressenden Place STATES State of Florida, Department of Revenue 2450 Shumard Oak Blvd us UNITED Government STATES GFI Group Inc 55 Water Street us UNITED GFI Group Inc Financial Services STATES FTS 2001/Dept of labor OAS 200 constitution Ave NW Suite N. us UNITED Organization of American Non-Profit 1301 STATES States Totalnum 40 Targeted Audience The lists below represent categories of targeted audiences you selected for your release. Cision lnrluern:;er Lists Mutual Funds (122 organizations, 184 recipients) Organization Number of recipients Barron's I Magazine 6 Bloomberg News I News Service/Syndicate 6 Wall Street Journal I Daily Newspaper 6 Gartner I Industry Research Firm 5 IBD Weekly I Community Newspaper 5 Ignites.com I Internet Magazine - Online Only 5 Seeking Alpha I Internet Magazine - Online Only 5 Forbes I Magazine 3 Fund Action I Magazine Institutional Investor I lnt0111HI M:1u,uirrc1 - Onlino Only J Personal Finance (325 organizations, 406 recipients) Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 156 of 158 Organization Number of recipients Squawk Box - CNBC Cable Network I Cable Network Show 15 Business Insider I Internet Magazine - Online Only 5 Srnartasset I Internet Magazine - Online Only 5 Bottorn Line/Personal I Magazine 4 GOBankingRates I Internet Magazine - Online Only 4 New York Times I Daily Newspaper 4 Wise Bread I Internet Blog 4 CNNBusiness I Internet Magazine - Online Only 3 Consumer Reports I Magazine 3 Dave Ramsey Show I Radio Syndicated Show 3 Associated Press Outlets Every PR Newswire U.S. wire newsline includes targeted distribution to the Associated Press, an essential global news network that delivers content to an extensive set of media platforms and formats. The list below represents the outlets you reach via this partnership. Outlet Name City State Country Newsline Type Audience C-SPAN Washington DC us US1 Television 86,200,000 Subscribers Scribd, Inc. San CA us US1 Aggregator 43,531,670 Visitors Francisco per Month FoxNews.com New York NY us US1, New York State Online 32,516,438 Visitors newsline per Month CBS News Radio New York NY us US1, New York State Radio 30,000,000 newsline Broadcast Audience New York Times New York NY us US1, New York State Newspaper 29,886,442 Visitors Digital newsline per Month Apple Inc. Cupertino CA us US1 Organization/Company 29,709,459 Visitors per month CNBC.com Englewood NJ us New York State Online 26,089,266 Visitors Cliffs newsline, US1 per Month CBSnews.com New York NY us US1, New York State Online 26,080,671 Visitors newsline per Month abcnews.com New York NY us US1, New York State Online 24,167,779 Visitors newsline per Month U.S. News & World Washington DC us US1 Magazine 23,945,529 Visitors Report per Month Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 157 of 158 Engagement 91 1 Total Engagement Actions [______c_lic_k_-;_h _ro_u_gh_s______~J Overview Engagement Timeline See when your audience engaged with your release. 1000 100 10 0 Cumulative Click-throughs a Shares • Downloads Engagement Details A break down of click-throughs, shares and other engagement actions. Click-th roughs The number of times your release sent visitors to the pages you linked lo URL Click-throughs http://www.citibankadrcottlomont.com/ 88 mailto:info@Citibani'./IDRSottlomont.oom Total 01 Case 1:15-cv-09185-CM-KNF Document 154-2 Filed 05/24/19 Page 158 of 158 About Cision PR Newswire Contact Terms of Use Privacy Blog Copyright© 2019 Cision US Inc., 130 E Randolph St., 7th Floor, Chicago, IL 60601. View our Privacy Policy. Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 1 of 54 EXHIBIT 3 Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 2 of 54 81,7('67$7(6',675,&7&2857 )257+(6287+(51',675,&72)1(:<25. %(1-$0,10,&+$(/0(55<0$1$0< &LYLO$FWLRQ1RFY&0.1) :+,7$.(50(55<0$175867$1'% 0(55<0$1$1'$0(55<0$17+ *(1(5$7,215(0$,1'(575867 LQGLYLGXDOO\DQGRQEHKDOIRIDOORWKHUV VLPLODUO\VLWXDWHG 3ODLQWLIIV Y &,7,*5283,1&&,7,%$1.1$DQG &,7,*5283*/2%$/0$5.(76,1& 'HIHQGDQWV '(&/$5$7,212)6+$5$11,508/,168332572)/($'&2816(/¶6 027,21)25$77251(<6¶)((6$1'5(,0%856(0(172)/,7,*$7,21 (;3(16(6),/('21%(+$/)2).(66/(5723$=0(/7=(5 &+(&.//3 ,6KDUDQ1LUPXOSXUVXDQWWR86&KHUHE\GHFODUHDVIROORZV ,DPDSDUWQHURIWKHODZILUPRI.HVVOHU7RSD]0HOW]HU &KHFN//3 ³.HVVOHU 7RSD]´ WKH&RXUWGHVLJQDWHG,QWHULP/HDG&RXQVHO UHIHUUHGWRKHUHLQDV³/HDG&RXQVHO´ LQ WKHDERYHFDSWLRQHGDFWLRQ ³/LWLJDWLRQ´ ,VXEPLWWKLVGHFODUDWLRQLQVXSSRUWRI/HDG&RXQVHO¶V PRWLRQIRUDQDZDUGRIDWWRUQH\V¶IHHVLQFRQQHFWLRQZLWKVHUYLFHVUHQGHUHGLQWKH/LWLJDWLRQDV ZHOO DV IRU UHLPEXUVHPHQW RI H[SHQVHV LQFXUUHG LQ FRQQHFWLRQ ZLWK WKH /LWLJDWLRQ 8QOHVV RWKHUZLVH VWDWHG KHUHLQ , KDYH SHUVRQDO NQRZOHGJH RI WKH IDFWV VHW IRUWK KHUHLQ DQG LI FDOOHG XSRQFRXOGDQGZRXOGWHVWLI\WKHUHWR .HVVOHU7RSD]ZDVLQYROYHGLQDOODVSHFWVRIWKHSURVHFXWLRQRIWKH/LWLJDWLRQDQG $OOFDSLWDOL]HGWHUPVWKDWDUHQRWRWKHUZLVHGHILQHGKHUHLQVKDOOKDYHWKHPHDQLQJVDVFULEHGWR WKHPLQWKH6WLSXODWLRQDQG$JUHHPHQWRI6HWWOHPHQWGDWHG$XJXVW (&)1R Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 3 of 54 LWVUHVROXWLRQDVVHWIRUWKLQWKHDFFRPSDQ\LQJ'HFODUDWLRQRI6KDUDQ1LUPXOLQ6XSSRUWRI , 3ODLQWLIIV¶ 0RWLRQ IRU )LQDO $SSURYDO RI 3URSRVHG &ODVV $FWLRQ 6HWWOHPHQW DQG 3ODQ RI $OORFDWLRQ DQG ,, /HDG &RXQVHO¶V 0RWLRQ IRU DQ $ZDUG RI $WWRUQH\V¶ )HHV DQG 5HLPEXUVHPHQWRI/LWLJDWLRQ([SHQVHV %DVHGRQP\ZRUNSHUIRUPHGLQWKLV/LWLJDWLRQDVZHOODVP\UHFHLSWDQGUHYLHZ RIWKHELOOLQJUHFRUGVUHIOHFWLQJZRUNSHUIRUPHGE\RWKHUDWWRUQH\VDQGSURIHVVLRQDOVXSSRUWVWDII HPSOR\HHVDWRURQEHKDOIRI.HVVOHU7RSD]LQWKH/LWLJDWLRQ ³7LPHNHHSHUV´ DVUHSRUWHGE\WKH 7LPHNHHSHUV,GLUHFWHGWKHSUHSDUDWLRQRIWKHFKDUWVHWIRUWKDV([KLELW$KHUHWR7KLVFKDUW L LGHQWLILHVWKHQDPHVDQGSRVLWLRQV i.e.WLWOHV RIWKH7LPHNHHSHUVZKRGHYRWHGWHQ RUPRUH KRXUV WR WKH /LWLJDWLRQ LL SURYLGHV WKH WRWDO QXPEHU RI KRXUV HDFK 7LPHNHHSHU H[SHQGHG LQ FRQQHFWLRQ ZLWK ZRUN RQ WKH /LWLJDWLRQ IURP WKH WLPH ZKHQ SRWHQWLDO FODLPV ZHUH EHLQJ LQYHVWLJDWHG WKURXJK 0D\ LLL SURYLGHV HDFK 7LPHNHHSHU¶V FXUUHQW KRXUO\ UDWH DV QRWHGLQWKHFKDUWDQG LY SURYLGHVWKHWRWDOELOODEOHDPRXQWLQGROODUVRIHDFK7LPHNHHSHUDQG WKHHQWLUHILUP)RU7LPHNHHSHUVZKRDUHQRORQJHUHPSOR\HGE\.HVVOHU7RSD]WKHKRXUO\UDWH XVHGLVWKHKRXUO\UDWHIRUVXFKHPSOR\HHLQKLVRUKHUILQDO\HDURIHPSOR\PHQWE\P\ILUP7KH FKDUW VHW IRUWK LQ ([KLELW $ ZDV SUHSDUHG IURP FRQWHPSRUDQHRXV GDLO\ WLPH UHFRUGV UHJXODUO\ SUHSDUHGDQGPDLQWDLQHGE\P\ILUPZKLFKDUHDYDLODEOHDWWKHUHTXHVWRIWKH&RXUW$OOWLPH H[SHQGHGRQ/HDG&RXQVHO¶VPRWLRQIRUIHHVDQGUHLPEXUVHPHQWRIH[SHQVHVKDVEHHQH[FOXGHG 7KHKRXUO\UDWHVIRUWKH7LPHNHHSHUVDVVHWIRUWKLQ([KLELW$DUHWKHLUVWDQGDUG UDWHV0\ILUP¶VKRXUO\UDWHVDUHODUJHO\EDVHGXSRQDFRPELQDWLRQRIWKHWLWOHFRVWWRWKHILUP DQGWKHVSHFLILF\HDUVRIH[SHULHQFHIRUHDFKDWWRUQH\DQGSURIHVVLRQDOVXSSRUWVWDIIHPSOR\HHDV 7KH LQIRUPDWLRQ FRQFHUQLQJ WKH 7LPHNHHSHU¶V KRXUV DQG KRXUO\ UDWH LV QRW EDVHG RQ P\ SHUVRQDONQRZOHGJHEXWRQWKHLQIRUPDWLRQUHSRUWHGE\HDFK7LPHNHHSHURUWKHILOHVDQGUHFRUGV RI .HVVOHU 7RSD] DV ZHOO DV P\ IDPLOLDULW\ ZLWK WKH ZRUN XQGHUWDNHQ E\ P\ ILUP LQ WKH /LWLJDWLRQ Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 4 of 54 ZHOODVPDUNHWUDWHVIRUSUDFWLWLRQHUVLQWKHILHOG7KHVHKRXUO\UDWHV RUPDWHULDOO\VLPLODUKRXUO\ UDWHV KDYH EHHQ DFFHSWHG E\ FRXUWV LQ RWKHU FRPSOH[ FODVV DFWLRQV IRU SXUSRVHV RI ³FURVV FKHFNLQJ´ ORGHVWDU DJDLQVW D SURSRVHG IHH EDVHG RQ WKH SHUFHQWDJH RI WKH IXQG PHWKRG RU GHWHUPLQLQJDUHDVRQDEOHIHHXQGHUWKHORGHVWDUPHWKRG 7KH WRWDO QXPEHU RI KRXUV H[SHQGHG E\ .HVVOHU 7RSD] LQ WKLV /LWLJDWLRQ IURP LQFHSWLRQWKURXJK0D\DVUHIOHFWHGLQ([KLELW$LV7KHWRWDOORGHVWDUIRUP\ ILUPDVUHIOHFWHGLQ([KLELW$LVFRQVLVWLQJRIIRUDWWRUQH\V¶WLPH DQGIRUSURIHVVLRQDOVXSSRUWVWDIIWLPH ,QP\MXGJPHQWWKHQXPEHURIKRXUVH[SHQGHGDQGWKHVHUYLFHVSHUIRUPHGE\WKH DWWRUQH\V DQG SURIHVVLRQDO VXSSRUW VWDII HPSOR\HHV DW RU RQ EHKDOI RI .HVVOHU 7RSD] ZHUH UHDVRQDEOHDQGH[SHQGHGIRUWKHEHQHILWRIWKH&ODVVLQWKLV/LWLJDWLRQ .HVVOHU7RSD]¶VORGHVWDUILJXUHVDUHEDVHGXSRQP\ILUP¶VVWDQGDUGKRXUO\UDWHV DQG GR QRW LQFOXGH H[SHQVH LWHPV ([SHQVH LWHPV DUH EHLQJ VXEPLWWHG VHSDUDWHO\ DQG DUH QRW GXSOLFDWHGLQWKHILUP¶VKRXUO\UDWHV $VVHWIRUWKLQ([KLELW%KHUHWR.HVVOHU7RSD]LVVHHNLQJUHLPEXUVHPHQWIRUD WRWDORILQXQUHLPEXUVHGH[SHQVHVLQFXUUHGLQFRQQHFWLRQZLWKWKHSURVHFXWLRQDQG UHVROXWLRQRIWKH/LWLJDWLRQ0\ILUPKDVDSSOLHG³FDSV´WRFHUWDLQWUDYHOH[SHQVHV LHDLUIDUH PHDOVDQGORGJLQJ ,QDGGLWLRQLQWHUQDOUHSURGXFWLRQFRVWVKDYHEHHQFDSSHGDWSHUSDJH ,QP\MXGJPHQWWKHVHH[SHQVHVZHUHUHDVRQDEOHDQGH[SHQGHGIRUWKHEHQHILWRIWKH&ODVVLQWKLV /LWLJDWLRQ 7KH H[SHQVHV LQFXUUHG E\ .HVVOHU 7RSD] LQ WKH /LWLJDWLRQ DUH UHIOHFWHG RQ WKH ERRNVDQGUHFRUGVRIP\ILUP7KHVHERRNVDQGUHFRUGVDUHSUHSDUHGIURPH[SHQVHYRXFKHUV FKHFNUHFRUGVDQGRWKHUVRXUFHPDWHULDOVDQGDUHDQDFFXUDWHUHFRUGRIWKHH[SHQVHVLQFXUUHG Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 5 of 54 Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 6 of 54 (;+,%,7$ Merryman et al. v. Citigroup, Inc. et al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ase 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 7 of 54 ,QYHVWLJDWRUV $QJULVDQR)DELDQD $UPVWURQJ4XLQQ 0DJLQQLV-DPLH 0DUVKDOO.DWH 0F0HQDPLQ&DLWO\Q 0ROLQD+HQU\ 5DEELQHU'DYLG Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 8 of 54 (;+,%,7% Merryman et al. v. Citigroup, Inc. et al. &LYLO$FWLRQ1RFY&0.1) .(66/(5723$=0(/7=(5 &+(&.//3 (;3(16(5(3257 &$7(*25< $02817 &RXUW)HHV 0HVVHQJHU6HUYLFHV 6HUYLFHRI3URFHVV 3RVWDJH ([SUHVV0DLO 2Q/LQH/HJDO)DFWXDO5HVHDUFK ([WHUQDO5HSURGXFWLRQ&RVWV ,QWHUQDO5HSURGXFWLRQ&RVWV 2XWRI7RZQ7UDYHO :RUNLQJ0HDOV 'RFXPHQW+RVWLQJ0DQDJHPHQW &RXUW5HSRUWV7UDQVFULSWV ([SHUWV 0HGLDWLRQ 727$/(;3(16(6 7KHH[SHQVHLQFXUUHGIRUUHVHDUFKUHSUHVHQWVWKHDPRXQWELOOHGE\WKHYHQGRU7KHUHDUHQR DGPLQLVWUDWLYHFKDQJHVLQWKLVFKDUJH Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 9 of 54 (;+,%,7& Merryman et al. v. Citigroup, Inc. et al. &LYLO$FWLRQ1RFY&0.1) .(66/(5723$=0(/7=(5 &+(&.//3 ),505(680( Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 10 of 54 280KingofPrussiaRoad,Radnor,Pennsylvania19087•610Ǧ667Ǧ7706•Fax:610Ǧ667Ǧ7056•[email protected] OneSansomeStreet,Suite1850,SanFrancisco,CA94104•415Ǧ400Ǧ3000•Fax:415Ǧ400Ǧ3001•[email protected] ZZZNWPFFRP ),50352),/( 6LQFH.HVVOHU7RSD]0HOW]HU &KHFN//3KDVVSHFLDOL]HGLQWKHSURVHFXWLRQRIVHFXULWLHVFODVV DFWLRQVDQGKDVJURZQLQWRRQHRIWKHODUJHVWDQGPRVWVXFFHVVIXOVKDUHKROGHUOLWLJDWLRQILUPVLQWKHILHOG :LWKRIILFHVLQ5DGQRU3HQQV\OYDQLDDQG6DQ)UDQFLVFR&DOLIRUQLDWKH)LUPLVFRPSULVHGRIDWWRUQH\V DVZHOODVDQH[SHULHQFHGVXSSRUWVWDIIFRQVLVWLQJRIRYHUSDUDOHJDOVLQKRXVHLQYHVWLJDWRUVOHJDOFOHUNV DQGRWKHUSHUVRQQHO:LWKDODUJHDQGVRSKLVWLFDWHGFOLHQWEDVH QXPEHULQJRYHULQVWLWXWLRQDOLQYHVWRUV IURP DURXQG WKH ZRUOG LQFOXGLQJ SXEOLF DQG 7DIW+DUWOH\ SHQVLRQ IXQGV PXWXDO IXQG PDQDJHUV LQYHVWPHQW DGYLVRUV LQVXUDQFH FRPSDQLHV KHGJH IXQGV DQG RWKHU ODUJH LQYHVWRUV .HVVOHU 7RSD] KDV GHYHORSHGDQLQWHUQDWLRQDOUHSXWDWLRQIRUH[FHOOHQFHDQGKDVH[WHQVLYHH[SHULHQFHSURVHFXWLQJVHFXULWLHV IUDXGDFWLRQV)RUWKHSDVWVHYHUDO\HDUVWKH1DWLRQDO/DZ-RXUQDOKDVUHFRJQL]HG.HVVOHU7RSD]DVRQHRI WKHWRSVHFXULWLHVFODVVDFWLRQODZILUPVLQWKHFRXQWU\,QDGGLWLRQWKH/HJDO,QWHOOLJHQFHUUHFHQWO\DZDUGHG .HVVOHU7RSD]ZLWKLWV&ODVV$FWLRQ/LWLJDWLRQ)LUPRI7KH 127(:257+<$&+,(9(0(176 During the Firm’s successful history, Kessler Topaz has recovered billions of dollars for defrauded stockholders and consumers. The following are among the Firm’s notable achievements: 6HFXULWLHV)UDXG/LWLJDWLRQ In re Bank of America Corp. Securities, Derivative, and Employee Retirement Income Security Act (ERISA) Litigation, 0DVWHU)LOH1R0'/ .HVVOHU7RSD]DV&R/HDG&RXQVHOEURXJKWDQDFWLRQRQEHKDOIRIOHDGSODLQWLIIVWKDWDVVHUWHGFODLPVIRU YLRODWLRQVRIWKHIHGHUDOVHFXULWLHVODZV DJDLQVW%DQNRI$PHULFD &RUS ³%R$´ DQGFHUWDLQRI%R$¶V RIILFHUVDQGERDUGPHPEHUVUHODWLQJWR%R$¶VPHUJHUZLWK0HUULOO/\QFK &R ³0HUULOO´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n re Tyco International, Ltd. Sec. Litig.1R% '1+ .HVVOHU7RSD]ZKLFKVHUYHGDV&R/HDG&RXQVHOLQWKLVKLJKO\SXEOLFL]HGVHFXULWLHVIUDXGFODVVDFWLRQRQ EHKDOI RI D JURXS RI LQVWLWXWLRQDO LQYHVWRUV DFKLHYHG D UHFRUG ELOOLRQ VHWWOHPHQW ZLWK 7\FR ,QWHUQDWLRQDO /WG 7\FR DQG WKHLU DXGLWRU 3ULFHZDWHUKRXVH&RRSHUV ³3Z&´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³>L@WLVGLIILFXOW WRRYHUVWDWHWKHFRPSOH[LW\RI>WKHOLWLJDWLRQ@´-XGJH%DUEDGRURQRWHGWKHH[WUDRUGLQDU\HIIRUWUHTXLUHGWR SXUVXHWKHOLWLJDWLRQWRZDUGVLWVVXFFHVVIXOFRQFOXVLRQZKLFKLQFOXGHGWKHUHYLHZRIPRUHWKDQPLOOLRQ SDJHVRIGRFXPHQWVPRUHWKDQGHSRVLWLRQVDQGRYHUKXQGUHGGLVFRYHU\UHTXHVWVDQGUHVSRQVHV,Q DGGLWLRQWRWKHFRPSOH[LW\RIWKHOLWLJDWLRQ-XGJH%DUEDGRURDOVRKLJKOLJKWHGWKHJUHDWULVNXQGHUWDNHQE\ Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 12 of 54 &R/HDG&RXQVHOLQSXUVXLWRIWKHOLWLJDWLRQZKLFKKHLQGLFDWHGZDVJUHDWHUWKDQLQRWKHUPXOWLELOOLRQ GROODUVHFXULWLHVFDVHVDQG³SXW>3ODLQWLIIV@DWWKHFXWWLQJHGJHRIDUDSLGO\FKDQJLQJDUHDRIODZ´ ,QVXPWKH7\FRVHWWOHPHQWLVRIKLVWRULFSURSRUWLRQVIRUWKHLQYHVWRUVZKRVXIIHUHGVLJQLILFDQWILQDQFLDO ORVVHVDQGLWKDVVHQWDVWURQJPHVVDJHWRWKRVHZKRZRXOGWU\WRHQJDJHLQWKLVW\SHRIPLVFRQGXFWLQWKH IXWXUH In re Tenet Healthcare Corp. Sec. Litig., 1R&956:/ 5[ &'&DO .HVVOHU7RSD]VHUYHGDV&R/HDG&RXQVHOLQWKLVDFWLRQ$SDUWLDOVHWWOHPHQWDSSURYHGRQ0D\ ZDVFRPSULVHGRIWKUHHGLVWLQFWHOHPHQWV L DVXEVWDQWLDOPRQHWDU\FRPPLWPHQWRIPLOOLRQE\WKH FRPSDQ\ LL SHUVRQDOFRQWULEXWLRQVWRWDOLQJPLOOLRQE\WZRRIWKHLQGLYLGXDOGHIHQGDQWVDQG LLL WKH HQDFWPHQW DQGRU FRQWLQXDWLRQ RI QXPHURXV FKDQJHV WR WKH FRPSDQ\¶V FRUSRUDWH JRYHUQDQFH SUDFWLFHV ZKLFKKDYHOHGYDULRXVLQVWLWXWLRQDOUDWLQJHQWLWLHVWRUDQN7HQHWDPRQJWKHEHVWLQWKH86LQUHJDUGVWR FRUSRUDWH JRYHUQDQFH 7KH VLJQLILFDQFH RI WKH SDUWLDO VHWWOHPHQW ZDV KHLJKWHQHG E\ 7HQHW¶V SUHFDULRXV ILQDQFLDOFRQGLWLRQ)DFHGZLWKPDQ\ILQDQFLDOSUHVVXUHV²LQFOXGLQJVHYHUDOSHQGLQJFLYLODFWLRQVDQG IHGHUDOLQYHVWLJDWLRQVZLWKWRWDOFRQWLQJHQWOLDELOLWLHVLQWKHKXQGUHGVRIPLOOLRQVRIGROODUV²WKHUHZDV UHDOFRQFHUQWKDW7HQHWZRXOGEHXQDEOHWRIXQGDVHWWOHPHQWRUVDWLVI\DMXGJPHQWRIDQ\JUHDWHUDPRXQW LQWKHQHDUIXWXUH%\UHDFKLQJWKHSDUWLDOVHWWOHPHQWZHZHUHDEOHWRDYRLGWKHULVNVDVVRFLDWHGZLWKDORQJ DQG FRVWO\ OLWLJDWLRQ EDWWOH DQG SURYLGH D VLJQLILFDQW DQG LPPHGLDWH EHQHILW WR WKH FODVV 1RWDEO\ WKLV UHVROXWLRQUHSUHVHQWHGDXQLTXHUHVXOWLQVHFXULWLHVFODVVDFWLRQOLWLJDWLRQ²SHUVRQDOILQDQFLDOFRQWULEXWLRQV IURPLQGLYLGXDOGHIHQGDQWV$IWHUWDNLQJWKHFDVHWKURXJKWKHVXPPDU\MXGJPHQWVWDJHZHZHUHDEOHWR VHFXUHDQDGGLWLRQDOPLOOLRQUHFRYHU\IURP.30*±7HQHW¶VRXWVLGHDXGLWRUGXULQJWKHUHOHYDQWSHULRG ±IRUWKHFODVVEULQJLQJWKHWRWDOUHFRYHU\WRPLOOLRQ In re Wachovia Preferred Securities and Bond/Notes Litigation, 0DVWHU)LOH1R&LY 5-6 6'1< .HVVOHU 7RSD] DV FRXUWDSSRLQWHG &R/HDG &RXQVHO DVVHUWHG FODVV DFWLRQ FODLPV IRU YLRODWLRQV RI WKH 6HFXULWLHV $FW RI RQ EHKDOI RI DOO SHUVRQV ZKR SXUFKDVHG :DFKRYLD &RUSRUDWLRQ ³:DFKRYLD´ SUHIHUUHGVHFXULWLHVLVVXHGLQWKLUW\VHSDUDWHRIIHULQJV WKH³2IIHULQJV´ EHWZHHQ-XO\DQG0DU\ WKH³2IIHULQJ3HULRG´ 'HIHQGDQWVLQWKHDFWLRQLQFOXGHG:DFKRYLDYDULRXV:DFKRYLDUHODWHG WUXVWV:HOOV)DUJRDVVXFFHVVRULQLQWHUHVWWR:DFKRYLDFHUWDLQRI:DFKRYLD¶VRIILFHUDQGERDUGPHPEHUV QXPHURXVXQGHUZULWHUVWKDWXQGHUZURWHWKH2IIHULQJVDQG.30*//3 ³.30*´ :DFKRYLD¶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³*$$3´ (YHQDV:DFKRYLDIDFHGLQVROYHQF\ WKH2IIHULQJ0DWHULDOVDVVXUHGLQYHVWRUVWKDW:DFKRYLD¶VFDSLWDODQGOLTXLGLW\SRVLWLRQVZHUH³VWURQJ´DQG WKDWLWZDVVR³ZHOOFDSLWDOL]HG´WKDWLWZDVDFWXDOO\D³SURYLGHURIOLTXLGLW\´WRWKHPDUNHW2Q$XJXVW WKH3DUWLHVDQQRXQFHGDPLOOLRQFDVKVHWWOHPHQWZLWK:HOOV)DUJR DVVXFFHVVRULQLQWHUHVWWR :DFKRYLD DQGDPLOOLRQFDVKVHWWOHPHQWZLWK.30*WRVHWWOHDOOFODLPVDVVHUWHGDJDLQVWDOOGHIHQGDQWV LQWKHDFWLRQ7KLVVHWWOHPHQWZDVDSSURYHGE\WKH+RQ-XGJH5LFKDUG-6XOOLYDQE\RUGHULVVXHGRQ -DQXDU\ In re Initial Public Offering Sec. Litig.0DVWHU)LOH1R0& 6$6 7KLVDFWLRQVHWWOHGIRUPLOOLRQRQ-DQXDU\DIWHU\HDUVRIOLWLJDWLRQRYHUVHHQE\86'LVWULFW -XGJH6KLUD6FKHLQGOLQ.HVVOHU7RSD]VHUYHGRQWKHSODLQWLIIV¶H[HFXWLYHFRPPLWWHHIRUWKHFDVHZKLFK ZDVEDVHGXSRQWKHDUWLILFLDOLQIODWLRQRIVWRFNSULFHVGXULQJWKHGRWFRPERRPRIWKHODWHVWKDWOHGWR Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 13 of 54 WKHFROODSVHRIWKHWHFKQRORJ\VWRFNPDUNHWLQWKDWZDVUHODWHGWRDOOHJDWLRQVRIODGGHULQJDQGH[FHVV FRPPLVVLRQVEHLQJSDLGIRU,32DOORFDWLRQV In re Longtop Financial Technologies Ltd. Securities Litigation1RFY 6'1< .HVVOHU7RSD]DV/HDG&RXQVHOEURXJKWDQDFWLRQRQEHKDOIRIOHDGSODLQWLIIVWKDWDVVHUWHGFODLPVIRU YLRODWLRQVRIWKHIHGHUDOVHFXULWLHVODZVDJDLQVW/RQJWRS)LQDQFLDO7HFKQRORJLHV/WG ³/RQJWRS´ LWV&KLHI ([HFXWLYH2IILFHU:HL]KRX/LDQDQGLWV&KLHI)LQDQFLDO2IILFHU'HUHN3DODVFKXN7KHFODLPVDJDLQVW /RQJWRSDQGWKHVHWZRLQGLYLGXDOVZHUHEDVHGRQDPDVVLYHIUDXGWKDWRFFXUUHGDWWKHFRPSDQ\$VWKH &(2ODWHUFRQIHVVHGWKHFRPSDQ\KDGEHHQDIUDXGVLQFH6SHFLILFDOO\:HL]KRX/LDQFRQIHVVHGWKDW WKHFRPSDQ\¶VFDVKEDODQFHVDQGUHYHQXHVZHUHRYHUVWDWHGE\KXQGUHGVRIPLOOLRQVRIGROODUVDQGLWKDG PLOOLRQVRIGROODUVLQXQUHFRUGHGEDQNORDQV7KH&(2IXUWKHUDGPLWWHGWKDWLQDORQH/RQJWRS¶V UHYHQXHVZHUHRYHUVWDWHGE\DERXWSHUFHQW2Q1RYHPEHUDIWHU:HL]KRX/LDQDQG/RQJWRS IDLOHGWRDSSHDUDQGGHIHQGWKHDFWLRQ-XGJH6KLUD6FKHLQGOLQHQWHUHGGHIDXOWMXGJPHQWDJDLQVWWKHVHWZR GHIHQGDQWVLQWKHDPRXQWRIPLOOLRQSOXVSHUFHQWLQWHUHVWUXQQLQJIURP)HEUXDU\WRWKH GDWHRISD\PHQW7KHFDVHWKHQSURFHHGHGWRWULDODJDLQVW/RQJWRS¶V&)2ZKRFODLPHGKHGLGQRWNQRZ DERXWWKHIUDXGDQGZDVQRWUHFNOHVVLQQRWNQRZLQJ±ZKHQKHPDGHIDOVHVWDWHPHQWVWRLQYHVWRUVDERXW /RQJWRS¶VILQDQFLDOUHVXOWV2Q1RYHPEHUWKHMXU\UHWXUQHGDYHUGLFWRQOLDELOLW\LQIDYRURI SODLQWLIIV6SHFLILFDOO\WKHMXU\IRXQGWKDWWKH&)2ZDVOLDEOHWRWKHSODLQWLIIVDQGWKHFODVVIRUHDFKRIWKH HLJKW FKDOOHQJHG PLVVWDWHPHQWV 7KHQ RQ 1RYHPEHU WKH MXU\ UHWXUQHG LWV GDPDJHV YHUGLFW DVFULELQJDFHUWDLQDPRXQWRILQIODWLRQWRHDFKGD\RIWKHFODVVSHULRGDQGDSSRUWLRQLQJOLDELOLW\IRUWKRVH GDPDJHVDPRQJVWWKHWKUHHQDPHGGHIHQGDQWV7KH/RQJWRSWULDOZDVRQO\WKHWKVHFXULWLHVFODVVDFWLRQ WR EH WULHG WR D YHUGLFW VLQFH WKH SDVVDJH RI WKH 3ULYDWH 6HFXULWLHV /LWLJDWLRQ 5HIRUP $FW LQ DQG UHSUHVHQWVDKLVWRULFYLFWRU\IRULQYHVWRUV Operative Plasterers and Cement Masons International Association Local 262 Annuity Fund v. Lehman Brothers Holdings, Inc., 1RFY/$. 6'1< .HVVOHU 7RSD] RQ EHKDOI RI OHDG SODLQWLIIV DVVHUWHG FODLPV DJDLQVW FHUWDLQ LQGLYLGXDO GHIHQGDQWV DQG XQGHUZULWHUVRI/HKPDQVHFXULWLHVDULVLQJIURPPLVVWDWHPHQWVDQGRPLVVLRQVUHJDUGLQJ/HKPDQ VILQDQFLDO FRQGLWLRQDQGLWVH[SRVXUHWRWKHUHVLGHQWLDODQGFRPPHUFLDOUHDOHVWDWHPDUNHWVLQWKHSHULRGOHDGLQJWR /HKPDQ¶VXQSUHFHGHQWHGEDQNUXSWF\ILOLQJRQ6HSWHPEHU,Q-XO\WKH&RXUWVXVWDLQHGWKH PDMRULW\RIWKHDPHQGHG&RPSODLQWILQGLQJWKDW/HKPDQ¶VXVHRI5HSRZKLOHWHFKQLFDOO\FRPSO\LQJ ZLWK *$$3 VWLOO UHQGHUHG QXPHURXV VWDWHPHQWV UHODWLQJ WR /HKPDQ¶V SXUSRUWHG 1HW /HYHUDJH 5DWLRQ PDWHULDOO\IDOVHDQGPLVOHDGLQJ7KH&RXUWDOVRIRXQGWKDW'HIHQGDQWV¶VWDWHPHQWVUHODWHGWR/HKPDQ¶VULVN PDQDJHPHQWSROLFLHVZHUHVXIILFLHQWWRVWDWHDFODLP:LWKUHVSHFWWRORVVFDXVDWLRQWKH&RXUWDOVRIDLOHG WRDFFHSW'HIHQGDQWV¶FRQWHQWLRQWKDWWKHILQDQFLDOFRQGLWLRQRIWKHHFRQRP\OHGWRWKHORVVHVVXIIHUHGE\ WKH&ODVV$VWKHFDVHZDVEHLQJSUHSDUHGIRUWULDODPLOOLRQVHWWOHPHQWZDVUHDFKHGRQEHKDOIRI VKDUHKROGHUVPLOOLRQRIZKLFKFDPHIURPYDULRXVXQGHUZULWHUVRIWKH2IIHULQJVUHSUHVHQWLQJD VLJQLILFDQWUHFRYHU\IRULQYHVWRUVLQWKLVQRZEDQNUXSWHQWLW\,QDGGLWLRQPLOOLRQFDPHIURP/HKPDQ¶V IRUPHUGLUHFWRUVDQGRIILFHUVZKLFKLVVLJQLILFDQWFRQVLGHULQJWKHGLPLQLVKLQJDVVHWVDYDLODEOHWRSD\DQ\ IXWXUHMXGJPHQW)ROORZLQJWKHVHVHWWOHPHQWVWKHOLWLJDWLRQFRQWLQXHGDJDLQVW/HKPDQ¶VDXGLWRU(UQVW ZKLFKZDVUHYHDOHGRQ1RYHPEHUZKHQWKHFRPSDQ\¶V&(2UHSRUWHGWKDW0HGWURQLFUHFHLYHGD VXESRHQDIURPWKH8QLWHG6WDWHV'HSDUWPHQWRI-XVWLFHZKLFKLV³ORRNLQJLQWRRIIODEHOXVHRI,1)86(´ $IWHUKHDULQJRUDODUJXPHQWRQ'HIHQGDQWV¶0RWLRQVWR'LVPLVVRQ)HEUXDU\WKH&RXUWLVVXHGDQ RUGHUJUDQWLQJLQSDUWDQGGHQ\LQJLQSDUW'HIHQGDQWV¶PRWLRQVDOORZLQJDODUJHSRUWLRQRIWKHDFWLRQWR PRYH IRUZDUG 7KH &RXUW KHOG WKDW 3ODLQWLII VXFFHVVIXOO\ VWDWHG D FODLP DJDLQVW HDFK 'HIHQGDQW IRU D PDMRULW\RIWKHPLVVWDWHPHQWVDOOHJHGLQWKH&RPSODLQWDQGWKDWHDFKRIWKH'HIHQGDQWVNQHZRUUHFNOHVVO\ GLVUHJDUGHGWKHIDOVLW\RIWKHVHVWDWHPHQWVDQGWKDW'HIHQGDQWV¶IUDXGFDXVHGWKHORVVHVH[SHULHQFHGE\ PHPEHUVRIWKH&ODVVZKHQWKHPDUNHWOHDUQHGWKHWUXWKEHKLQG'HIHQGDQWV¶,1)86(PDUNHWLQJHIIRUWV :KLOHWKHFDVHZDVLQGLVFRYHU\RQ$SULO0HGWURQLFDJUHHGWRSD\VKDUHKROGHUVDQPLOOLRQ VHWWOHPHQW7KHVHWWOHPHQWZDVDSSURYHGE\WKH&RXUWE\RUGHULVVXHGRQ1RYHPEHU In re Brocade Sec. Litig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¶V PRWLRQV WR GLVPLVV DQG LQ 2FWREHU FHUWLILHG D FODVV RI %URFDGH LQYHVWRUV ZKR ZHUH GDPDJHG E\ WKH DOOHJHG IUDXG 'LVFRYHU\ LV FXUUHQWO\ SURFHHGLQJDQGWKHFDVHLVEHLQJSUHSDUHGIRUWULDO)XUWKHUPRUHZKLOHOLWLJDWLQJWKHVHFXULWLHVFODVVDFWLRQ .HVVOHU7RSD]DQGLWVFRFRXQVHOREMHFWHGWRDSURSRVHGVHWWOHPHQWLQWKH%URFDGHGHULYDWLYHDFWLRQ2Q 0DUFKWKHSDUWLHVLQIn re Brocade Communications Systems, Inc. Derivative Litigation1R& 1'&DO &5% JDYHQRWLFHWKDWWKH\KDGREWDLQHGSUHOLPLQDU\DSSURYDORIWKHLUVHWWOHPHQW $FFRUGLQJ WR WKH QRWLFH ZKLFK ZDV EXULHG RQ WKH EDFN SDJHV RI WKH :DOO 6WUHHW -RXUQDO %URFDGH VKDUHKROGHUVZHUHJLYHQOHVVWKDQWKUHHZHHNVWRHYDOXDWHWKHVHWWOHPHQWDQGILOHDQ\REMHFWLRQZLWKWKH &RXUW.HVVOHU7RSD]FOLHQW3XHUWR5LFR*RYHUQPHQW(PSOR\HHV¶5HWLUHPHQW6\VWHP ³35*(56´ KDGD ODUJH LQYHVWPHQW LQ %URFDGH DQG EHFDXVH WKH VHWWOHPHQW ZDV ZRHIXOO\ LQDGHTXDWH ILOHG DQ REMHFWLRQ 35*(56 MRLQHG E\ IHOORZ LQVWLWXWLRQDO LQYHVWRU $UNDQVDV 3XEOLF (PSOR\HHV 5HWLUHPHQW 6\VWHP FKDOOHQJHGWKHVHWWOHPHQWRQWZRIXQGDPHQWDOJURXQGV)LUVW35*(56FULWLFL]HGWKHGHULYDWLYHSODLQWLIIV IRU IDLOLQJ WR FRQGXFW DQ\ GLVFRYHU\ EHIRUH VHWWOLQJ WKHLU FODLPV 35*(56 DOVR DUJXHG WKDW GHULYDWLYH SODLQWLII¶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¶VGXDOUROHDVFRXQVHOWR%URFDGHDQGWKH,QGLYLGXDO6HWWOLQJ'HIHQGDQWVLQFOXGLQJ :6*5&KDLUPDQDQGIRUPHU%URFDGH%RDUG0HPEHU/DUU\6RQVLQL2QWKLVSRLQWWKH&RXUWDOVRDJUHHG DQG DGYLVHG :6*5 WR UHPRYH LWVHOI IURP WKH FDVH HQWLUHO\ 2Q 0D\ :6*5 FRPSOLHG DQG ZLWKGUHZDVFRXQVHOWR%URFDGH7KHFDVHVHWWOHGIRUPLOOLRQDQGZDVDSSURYHGE\WKH&RXUW In re Satyam Computer Services, Ltd. Sec. Litig1R0' %6- 6'1< .HVVOHU7RSD]VHUYHGDV&R/HDG&RXQVHOLQWKLVVHFXULWLHVIUDXGFODVVDFWLRQLQWKH6RXWKHUQ'LVWULFWRI 1HZ SHUVKDUHRQ-DQXDU\6DW\DP¶VFRPPRQVWRFNFORVHGDWSHUVKDUHRQ-DQXDU\:LWK UHVSHFWWRWKH$'6VWKHQHZVRI%5DMX¶VOHWWHUZDVUHYHDOHGRYHUQLJKWLQWKH8QLWHG6WDWHVDQGDVD UHVXOWWUDGLQJLQ6DW\DP$'6VZDVKDOWHGRQWKH1<6(EHIRUHWKHPDUNHWVRSHQHGRQ-DQXDU\ :KHQWUDGLQJLQ6DW\DP$'6VUHVXPHGRQ-DQXDU\6DW\DP$'6VRSHQHGDWSHU$'6 GRZQ VWHHSO\ IURP D FORVLQJ SULFH RI RQ -DQXDU\ /HDG 3ODLQWLIIV ILOHG D FRQVROLGDWHG FRPSODLQWRQ-XO\RQEHKDOIRIDOOSHUVRQVRUHQWLWLHVZKR D SXUFKDVHGRURWKHUZLVHDFTXLUHG 6DW\DP¶V$'6VLQWKH8QLWHG6WDWHVDQG E UHVLGHQWVRIWKH8QLWHG6WDWHVZKRSXUFKDVHGRURWKHUZLVH DFTXLUHG6DW\DPVKDUHVRQWKH1DWLRQDO6WRFN([FKDQJHRI,QGLDRUWKH%RPED\6WRFN([FKDQJHEHWZHHQ -DQXDU\DQG-DQXDU\&R/HDG&RXQVHOVHFXUHGDVHWWOHPHQWIRUPLOOLRQIURP6DW\DP RQ)HEUXDU\$GGLWLRQDOO\&R/HDG&RXQVHOZDVDEOHWRVHFXUHDPLOOLRQVHWWOHPHQWIURP 3Z&RQ$SULOZKRZDVDOOHJHGWRKDYHVLJQHGRIIRQWKHPLVOHDGLQJDXGLWUHSRUWV In re BankAtlantic Bancorp, Inc. Sec. Litig.&DVH1R&9 6')OD 2Q1RYHPEHUDSDQHORIQLQH0LDPL)ORULGDMXURUVUHWXUQHGWKHILUVWVHFXULWLHVIUDXGYHUGLFWWR DULVHRXWRIWKHILQDQFLDOFULVLVDJDLQVW%DQN$WODQWLF%DQFRUS,QFLWVFKLHIH[HFXWLYHRIILFHUDQGFKLHI ILQDQFLDORIILFHU7KLVFDVHZDVRQO\WKHWHQWKVHFXULWLHVFODVVDFWLRQWREHWULHGWRDYHUGLFWIROORZLQJWKH SDVVDJH RI WKH 3ULYDWH 6HFXULWLHV /LWLJDWLRQ 5HIRUP $FW RI ZKLFK JRYHUQV VXFK VXLWV )ROORZLQJ H[WHQVLYHSRVWWULDOPRWLRQSUDFWLFHWKH'LVWULFW&RXUWXSKHOGDOORIWKH-XU\¶VILQGLQJVRIIUDXGEXWYDFDWHG WKHGDPDJHVDZDUGRQDQDUURZOHJDOLVVXHDQGJUDQWHG'HIHQGDQW¶VPRWLRQIRUDMXGJPHQWDVDPDWWHURI ODZ3ODLQWLIIVDSSHDOHGWRWKH86&RXUWRI$SSHDOVIRUWKH(OHYHQWK&LUFXLW2Q-XO\DWKUHH MXGJHSDQHOIRUWKH$SSHDOV&RXUWIRXQGWKH'LVWULFW&RXUWHUUHGLQJUDQWLQJWKH'HIHQGDQW¶VPRWLRQIRUD MXGJPHQWDVDPDWWHURIODZEDVHGLQSDUWRQWKH-XU\¶VILQGLQJV SHUFHLYHGLQFRQVLVWHQF\RIWZRRIWKH -XU\¶VDQVZHUVWRWKHVSHFLDOLQWHUURJDWRULHV LQVWHDGRIIRFXVLQJVROHO\RQWKHVXIILFLHQF\RIWKHHYLGHQFH +RZHYHUXSRQLWVUHYLHZRIWKHUHFRUGWKH$SSHDOV&RXUWDIILUPHGWKH'LVWULFW&RXUW¶VGHFLVLRQDVLW GHWHUPLQHG WKH 3ODLQWLIIV GLG QRW LQWURGXFH HYLGHQFH VXIILFLHQW WR VXSSRUW D ILQGLQJ LQ LWV IDYRU RQ WKH HOHPHQWRIORVVFDXVDWLRQ7KH$SSHDOV&RXUW¶VGHFLVLRQLQWKLVFDVHGRHVQRWGLPLQLVKWKHILYH\HDUVRI KDUGZRUNZKLFK.HVVOHU7RSD]H[SHQGHGWREULQJWKHPDWWHUWRWULDODQGVHFXUHDQLQLWLDOMXU\YHUGLFWLQ WKH3ODLQWLIIV¶IDYRU7KLVFDVHLVDQH[FHOOHQWH[DPSOHRIWKH)LUP¶VGHGLFDWLRQWRRXUFOLHQWVDQGWKHOHQJWKV LWZLOOJRWRWU\WRDFKLHYHWKHEHVWSRVVLEOHUHVXOWVIRULQVWLWXWLRQDOLQYHVWRUVLQVKDUHKROGHUOLWLJDWLRQ In re AremisSoft Corp. Sec. Litig., &$1R&9 '1- .HVVOHU7RSD]LVSDUWLFXODUO\SURXGRIWKHUHVXOWVDFKLHYHGLQWKLVFDVHEHIRUHWKH+RQRUDEOH-RHO$3LVDQR 7KLVFDVHZDVH[FHHGLQJO\FRPSOLFDWHGDVLWLQYROYHGWKHHPEH]]OHPHQWRIKXQGUHGVRIPLOOLRQVRIGROODUV E\IRUPHURIILFHUVRIWKH&RPSDQ\RQHRIZKRPUHPDLQVDIXJLWLYH,QVHWWOLQJWKHDFWLRQ.HVVOHU7RSD] DVVROH/HDG&RXQVHODVVLVWHGLQUHRUJDQL]LQJ$UHPLV6RIWDVDQHZFRPSDQ\WRDOORZIRULWWRFRQWLQXH RSHUDWLRQVZKLOHVXFFHVVIXOO\VHSDUDWLQJRXWWKHVHFXULWLHVIUDXGFODLPVDQGWKHEDQNUXSW&RPSDQ\¶VFODLPV LQWRDOLWLJDWLRQWUXVW7KHDSSURYHG6HWWOHPHQWHQDEOHGWKHFODVVWRUHFHLYHWKHPDMRULW\RIWKHHTXLW\LQWKH QHZ&RPSDQ\DVZHOODVWKHLUSURUDWDVKDUHRIDQ\DPRXQWVUHFRYHUHGE\WKHOLWLJDWLRQWUXVW'XULQJWKLV OLWLJDWLRQDFWLRQVKDYHEHHQLQLWLDWHGLQWKH,VOHRI0DQ&\SUXVDVZHOODVLQWKH8QLWHG6WDWHVDVZH FRQWLQXHRXUHIIRUWVWRUHFRYHUDVVHWVVWROHQE\FRUSRUDWHLQVLGHUVDQGUHODWHGHQWLWLHV In re CVS Corporation Sec. Litig., &$1R-/7 '0DVV .HVVOHU7RSD]VHUYLQJDV&R/HDG&RXQVHORQEHKDOIRIDJURXSRILQVWLWXWLRQDOLQYHVWRUVVHFXUHGDFDVK UHFRYHU\RIPLOOLRQIRUWKHFODVVDILJXUHZKLFKUHSUHVHQWVWKHWKLUGODUJHVWSD\RXWIRUDVHFXULWLHV DFWLRQLQ%RVWRQIHGHUDOFRXUW.HVVOHU7RSD]VXFFHVVIXOO\OLWLJDWHGWKHFDVHWKURXJKVXPPDU\MXGJPHQW EHIRUHXOWLPDWHO\DFKLHYLQJWKLVRXWVWDQGLQJUHVXOWIRUWKHFODVVIROORZLQJVHYHUDOPHGLDWLRQVHVVLRQVDQG MXVWSULRUWRWKHFRPPHQFHPHQWRIWULDO Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 16 of 54 In re Marvell Technology, Group, Ltd. Sec. Lit., Master )LOH1R5:0 .HVVOHU 7RSD] VHUYHG DV &R/HDG &RXQVHO LQ WKLV VHFXULWLHV FODVV DFWLRQ EURXJKW DJDLQVW 0DUYHOO 7HFKQRORJ\*URXS/WG ³0DUYHOO´ DQGWKUHHRI0DUYHOO¶VH[HFXWLYHRIILFHUV7KLVFDVHFHQWHUHGDURXQG DQDOOHJHGRSWLRQVEDFNGDWLQJVFKHPHFDUULHGRXWE\'HIHQGDQWVIURP-XQHWKURXJK-XQHZKLFK HQDEOHG0DUYHOO¶VH[HFXWLYHVDQGHPSOR\HHVWRUHFHLYHRSWLRQVZLWKIDYRUDEOHRSWLRQH[HUFLVHSULFHVFKRVHQ ZLWKWKHEHQHILWRIKLQGVLJKWLQGLUHFWYLRODWLRQRI0DUYHOO¶VVWRFNRSWLRQSODQDVZHOODVWRDYRLGUHFRUGLQJ KXQGUHGVRIPLOOLRQVRIGROODUVLQFRPSHQVDWLRQH[SHQVHVRQWKH0DUYHOO¶VERRNV,QWRWDOWKHUHVWDWHPHQW FRQFHGHGWKDW0DUYHOOKDGXQGHUVWDWHGWKHFXPXODWLYHHIIHFWRILWVFRPSHQVDWLRQH[SHQVHE\PLOOLRQ DQGRYHUVWDWHGQHWLQFRPHE\PLOOLRQIRUWKHSHULRGFRYHUHGE\WKHUHVWDWHPHQW)ROORZLQJQHDUO\ WKUHH\HDUVRILQYHVWLJDWLRQDQGSURVHFXWLRQRIWKH&ODVV¶FODLPVDVZHOODVDSURWUDFWHGDQGFRQWHQWLRXV PHGLDWLRQSURFHVV&R/HDG&RXQVHOVHFXUHGDVHWWOHPHQWIRUPLOOLRQIURPGHIHQGDQWVRQ-XQH 7KLV6HWWOHPHQWUHSUHVHQWVDVXEVWDQWLDOSRUWLRQRIWKH&ODVV¶PD[LPXPSURYDEOHGDPDJHVDQGLVDPRQJ WKHODUJHVWVHWWOHPHQWVLQWRWDOGROODUDPRXQWUHDFKHGLQDQRSWLRQEDFNGDWLQJVHFXULWLHVFODVVDFWLRQ In re Delphi Corp. Sec. Litig., 0DVWHU)LOH1R0' ('0LFK ,QHDUO\YDULRXVVHFXULWLHVFODVVDFWLRQVZHUHILOHGDJDLQVWDXWRSDUWVPDQXIDFWXUHU'HOSKL&RUSRUDWLRQ LQ WKH 6RXWKHUQ 'LVWULFW RI 1HZ In re Computer Associates Sec. Litig., 1R&9 ('1< .HVVOHU7RSD]VHUYHGDV&R/HDG&RXQVHORQEHKDOIRISODLQWLIIVDOOHJLQJWKDW&RPSXWHU$VVRFLDWHVDQG FHUWDLQ RI LWV RIILFHUV PLVUHSUHVHQWHG WKH KHDOWK RI WKH FRPSDQ\¶V EXVLQHVV PDWHULDOO\ RYHUVWDWHG WKH FRPSDQ\¶VUHYHQXHVDQGHQJDJHGLQLOOHJDOLQVLGHUVHOOLQJ$IWHUQHDUO\WZR\HDUVRIOLWLJDWLRQ.HVVOHU 7RSD]KHOSHGREWDLQDVHWWOHPHQWRIPLOOLRQLQFDVKDQGVWRFNIURPWKHFRPSDQ\ In re The Interpublic Group of Companies Sec. Litig., 1R&LY 6'1< .HVVOHU7RSD]VHUYHGDVVROH/HDG&RXQVHOLQWKLVDFWLRQRQEHKDOIRIDQLQVWLWXWLRQDOLQYHVWRUDQGUHFHLYHG ILQDODSSURYDORIDVHWWOHPHQWFRQVLVWLQJRIPLOOLRQLQFDVKDQGVKDUHVRI,3*FRPPRQVWRFN $VRIWKHILQDOKHDULQJLQWKHFDVHWKHVWRFNKDGDQDSSUR[LPDWHYDOXHRIPLOOLRQUHVXOWLQJLQDWRWDO Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 17 of 54 VHWWOHPHQWYDOXHRIDSSUR[LPDWHO\PLOOLRQ,QJUDQWLQJLWVDSSURYDOWKH&RXUWSUDLVHG.HVVOHU7RSD] IRUDFWLQJUHVSRQVLEO\DQGQRWHGWKH)LUP¶VSURIHVVLRQDOLVPFRPSHWHQFHDQGFRQWULEXWLRQWRDFKLHYLQJVXFK DIDYRUDEOHUHVXOW In re Digital Lightwave, Inc. Sec. Litig., &RQVROLGDWHG&DVH1R&,97( 0')OD 7KHILUPVHUYHGDV&R/HDG&RXQVHOLQRQHRIWKHQDWLRQ¶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¶ORVVHV In re Transkaryotic Therapies, Inc. Sec. Litig., &LYLO$FWLRQ1R5:= '0DVV $IWHUILYH\HDUVRIKDUGIRXJKWFRQWHQWLRXVOLWLJDWLRQ.HVVOHU7RSD]DV/HDG&RXQVHORQEHKDOIRIWKH &ODVVHQWHUHGLQWRRQHRIODUJHVWVHWWOHPHQWVHYHUDJDLQVWDELRWHFKFRPSDQ\ZLWKUHJDUGWRQRQDSSURYDO RIRQHRILWVGUXJVE\WKH86)RRGDQG'UXJ$GPLQLVWUDWLRQ ³)'$´ 6SHFLILFDOO\WKH3ODLQWLIIVDOOHJHG WKDW7UDQVNDU\RWLF7KHUDSLHV,QF ³7.7´ DQGLWV&(25LFKDUG6HOGHQHQJDJHGLQDIUDXGXOHQWVFKHPH WR DUWLILFLDOO\ LQIODWH WKH SULFH RI 7.7 FRPPRQ VWRFN DQG WR GHFHLYH &ODVV 0HPEHUV E\ PDNLQJ PLVUHSUHVHQWDWLRQVDQGQRQGLVFORVXUHVRIPDWHULDOIDFWVFRQFHUQLQJ7.7¶VSURVSHFWVIRU)'$DSSURYDORI 5HSODJDO7.7¶VH[SHULPHQWDOHQ]\PHUHSODFHPHQWWKHUDS\IRU)DEU\GLVHDVH:LWKWKHDVVLVWDQFHRIWKH +RQRUDEOH 'DQLHO :HLQVWHLQ D UHWLUHG VWDWH FRXUW MXGJH IURP &DOLIRUQLD .HVVOHU 7RSD] VHFXUHG D PLOOLRQVHWWOHPHQWIURPWKH'HIHQGDQWVGXULQJDFRPSOH[DQGDUGXRXVPHGLDWLRQ In re PNC Financial Services Group, Inc. Sec. Litig., &DVH1R&9 :'3D .HVVOHU7RSD]VHUYHGDV &R/HDG&RXQVHOLQDVHFXULWLHVFODVVDFWLRQFDVHEURXJKWDJDLQVW31&EDQN FHUWDLQRILWVRIILFHUVDQGGLUHFWRUVDQGLWVRXWVLGHDXGLWRU(UQVW Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 18 of 54 In re SemGroup Energy Partners, L.P., Sec. Litig.1RPG '& 1'2NOD .HVVOHU 7RSD] ZKLFK ZDV DSSRLQWHG E\ WKH &RXUW DV VROH /HDG &RXQVHO OLWLJDWHG WKLV PDWWHU ZKLFK XOWLPDWHO\VHWWOHGIRUPLOOLRQ7KHGHIHQVHZDVOHGE\RIWKHODUJHVWDQGEHVWFDSLWDOL]HGGHIHQVHODZ ILUPVLQWKHZRUOG2Q$SULOLQDILIW\SDJHSXEOLVKHGRSLQLRQWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2NODKRPDODUJHO\GHQLHGGHIHQGDQWV¶WHQVHSDUDWHPRWLRQVWRGLVPLVV/HDG 3ODLQWLII¶V &RQVROLGDWHG $PHQGHG &RPSODLQW 7KH &RPSODLQW DOOHJHG WKDW L GHIHQGDQWV FRQFHDOHG 6HP*URXS¶V ULVN\ WUDGLQJ RSHUDWLRQV WKDW HYHQWXDOO\ FDXVHG 6HP*URXS WR GHFODUH EDQNUXSWF\ DQG LL GHIHQGDQWVPDGHQXPHURXVIDOVHVWDWHPHQWVFRQFHUQLQJ6HP*URXS¶VDELOLW\WRSURYLGHLWVSXEOLFO\WUDGHG 0DVWHU/LPLWHG3DUWQHUVKLSVWDEOHFDVKIORZV7KHFDVHZDVDJJUHVVLYHO\OLWLJDWHGRXWRIWKH)LUP¶V6DQ )UDQFLVFRDQG5DGQRURIILFHVDQGWKHVLJQLILFDQWUHFRYHU\ZDVREWDLQHGQRWRQO\IURPWKH&RPSDQ\¶V SULQFLSDOVEXWDOVRIURPLWVXQGHUZULWHUVDQGRXWVLGHGLUHFWRUV In re Liberate Technologies Sec. Litig., 1R& 0-- 1'&DO .HVVOHU7RSD]UHSUHVHQWHGSODLQWLIIVZKLFKDOOHJHGWKDW/LEHUDWHHQJDJHGLQIUDXGXOHQWUHYHQXHUHFRJQLWLRQ SUDFWLFHVWRDUWLILFLDOO\LQIODWHWKHSULFHRILWVVWRFNXOWLPDWHO\IRUFLQJLWWRUHVWDWHLWVHDUQLQJ$VVROH/HDG &RXQVHO.HVVOHU7RSD]VXFFHVVIXOO\QHJRWLDWHGDPLOOLRQVHWWOHPHQWZKLFKUHSUHVHQWVDOPRVW RIWKHGDPDJHVVXIIHUHGE\WKHFODVV,QDSSURYLQJWKHVHWWOHPHQWWKHGLVWULFWFRXUWFRPSOLPHQWHG/HDG &RXQVHOIRULWV³H[WUHPHO\FUHGLEOHDQGFRPSHWHQWMRE´ In re Riverstone Networks, Inc. Sec. Litig., &DVH1R&9 1'&DO .HVVOHU7RSD]VHUYHGDV/HDG&RXQVHORQEHKDOIRISODLQWLIIVDOOHJLQJWKDW5LYHUVWRQHDQGFHUWDLQRILWV RIILFHUVDQGGLUHFWRUVVRXJKWWRFUHDWHWKHLPSUHVVLRQWKDWWKH&RPSDQ\GHVSLWHWKHLQGXVWU\ZLGHGRZQWXUQ LQWKHWHOHFRPVHFWRUKDGWKHDELOLW\WRSURVSHUDQGVXFFHHGDQGZDVDFWXDOO\SURVSHULQJ,QWKDWUHJDUG SODLQWLIIV DOOHJHG WKDW GHIHQGDQWV LVVXHG D VHULHV RI IDOVH DQG PLVOHDGLQJ VWDWHPHQWV FRQFHUQLQJ WKH &RPSDQ\¶VILQDQFLDOFRQGLWLRQVDOHVDQGSURVSHFWVDQGXVHGLQVLGHLQIRUPDWLRQWRSHUVRQDOO\SURILW$IWHU H[WHQVLYHOLWLJDWLRQWKHSDUWLHVHQWHUHGLQWRIRUPDOPHGLDWLRQZLWKWKH+RQRUDEOH&KDUOHV/HJJH 5HW )ROORZLQJILYHPRQWKVRIH[WHQVLYHPHGLDWLRQWKHSDUWLHVUHDFKHGDVHWWOHPHQWRIPLOOLRQ 6KDUHKROGHU'HULYDWLYH$FWLRQV In re Facebook, Inc. Class C Reclassification Litig&$1R9&/ 'HO&K6HSW .HVVOHU 7RSD] VHUYHG DV FROHDG FRXQVHO LQ WKLV VWRFNKROGHU FODVV DFWLRQ WKDW FKDOOHQJHG D SURSRVHG UHFODVVLILFDWLRQRI)DFHERRN¶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¶VERDUGRIGLUHFWRUV EUHDFKHGWKHLUILGXFLDU\GXWLHVLQDSSURYLQJWKH5HFODVVLILFDWLRQDWWKHEHKHVWRI=XFNHUEHUJDQGIRUKLV SHUVRQDOEHQHILW$WWULDO.HVVOHU7RSD]ZDVVHHNLQJDSHUPDQHQWLQMXQFWLRQWRSUHYHQWWKHFRQVXPPDWLRQ RIWKH5HFODVVLILFDWLRQ7KHOLWLJDWLRQZDVFDUHIXOO\IROORZHGLQWKHEXVLQHVVDQGFRUSRUDWHJRYHUQDQFH FRPPXQLWLHVGXHWRWKHKLJKSURILOHQDWXUHRI)DFHERRN=XFNHUEHUJDQGWKHLVVXHVDWVWDNH$IWHUDOPRVW D\HDUDQGDKDOIRIKDUGIRXJKWOLWLJDWLRQMXVWRQHEXVLQHVVGD\EHIRUHWULDOZDVVHWWRFRPPHQFH)DFHERRN DQG=XFNHUEHUJDEDQGRQHGWKH5HFODVVLILFDWLRQJUDQWLQJ3ODLQWLIIVFRPSOHWHYLFWRU\ In re CytRx Stockholder Derivative Litig.&RQVRO&$1R9&/ 'HO&K1RY .HVVOHU 7RSD] VHUYHG DV FROHDG FRXQVHO LQ D VKDUHKROGHU GHULYDWLYH DFWLRQ FKDOOHQJLQJ PLOOLRQ ³VSULQJORDGHG´VWRFNRSWLRQV2QWKHGD\EHIRUH&\W5[DQQRXQFHG WKH PRVW LPSRUWDQW QHZV LQ WKH &RPSDQ\¶V KLVWRU\ FRQFHUQLQJ WKH SRVLWLYH WULDO UHVXOWV IRU RQH RI LWV VLJQLILFDQW SLSHOLQH GUXJV WKH &RPSHQVDWLRQ&RPPLWWHHRI&\W5[¶V%RDUGRI'LUHFWRUVJUDQWHGWKHVWRFNRSWLRQVWRWKHPVHOYHVWKHLU Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 19 of 54 IHOORZGLUHFWRUVDQGVHYHUDO&RPSDQ\RIILFHUVZKLFKLPPHGLDWHO\FDPH³LQWRWKHPRQH\´ZKHQ&\W5[¶V VWRFNSULFHVKRWXSLPPHGLDWHO\IROORZLQJWKHDQQRXQFHPHQWWKHQH[WGD\.HVVOHU7RSD]QHJRWLDWHGD VHWWOHPHQWUHFRYHULQJRIWKHH[FHVVFRPSHQVDWLRQUHFHLYHGE\WKHGLUHFWRUVDQGDSSUR[LPDWHO\ RIWKHGDPDJHVSRWHQWLDOO\REWDLQDEOHIURPWKHRIILFHUV,QDGGLWLRQDVSDUWRIWKHVHWWOHPHQW.HVVOHU7RSD] REWDLQHGWKHDSSRLQWPHQWRIDQHZLQGHSHQGHQWGLUHFWRUWRWKH%RDUGRI'LUHFWRUVDQGWKHLPSOHPHQWDWLRQ RI VLJQLILFDQW UHIRUPV WR WKH &RPSDQ\¶V VWRFN RSWLRQ DZDUG SURFHVVHV 7KH &RXUW FRPSOLPHQWHG WKH VHWWOHPHQWH[SODLQLQJWKDWLW³VHUYHVZKDW'HODZDUHYLHZVDVWKHRYHUDOOSRVLWLYHIXQFWLRQRIVWRFNKROGHU OLWLJDWLRQZKLFKLVQRWMXVWUHFRYHU\LQWKHLQGLYLGXDOFDVHEXWDOVRGHWHUUHQFHDQGQRUPHQIRUFHPHQW´ International Brotherhood of Electrical Workers Local 98 Pension Fund v. Black, et al.&DVH1R &86/&7/ 6XS&W&DO6DQ'LHJR)HE (“Encore Capital Group, Inc.”) .HVVOHU7RSD]DVFROHDGFRXQVHOUHSUHVHQWHG,QWHUQDWLRQDO%URWKHUKRRGRI(OHFWULFDO:RUNHUV/RFDO 3HQVLRQ )XQG LQ D VKDUHKROGHU GHULYDWLYH DFWLRQ FKDOOHQJLQJ EUHDFKHV RI ILGXFLDU\ GXWLHV DQG RWKHU YLRODWLRQVRIODZLQFRQQHFWLRQZLWK(QFRUH¶VGHEWFROOHFWLRQSUDFWLFHVLQFOXGLQJURERVLJQLQJDIILGDYLWV DQG LPSURSHU XVH RI WKH FRXUW V\VWHP WR FROOHFW DOOHJHG FRQVXPHU GHEWV .HVVOHU 7RSD] QHJRWLDWHG D VHWWOHPHQW LQ ZKLFK WKH &RPSDQ\ LPSOHPHQWHG LQGXVWU\OHDGLQJ UHIRUPV WR LWV ULVN PDQDJHPHQW DQG FRUSRUDWH JRYHUQDQFH SUDFWLFHV LQFOXGLQJ FUHDWLQJ &KLHI 5LVN 2IILFHU DQG &KLHI &RPSOLDQFH 2IILFHU SRVLWLRQVYDULRXVFRPSOLDQFHFRPPLWWHHVDQGSURFHGXUHVIRUFRQVXPHUFRPSODLQWPRQLWRULQJ In re Southern Peru Copper Corp. Derivative Litigation, &RQVRO &$ 1R &6 'HO &K .HVVOHU7RSD]VHUYHGDVFROHDGFRXQVHOLQWKLVODQGPDUNELOOLRQSRVWWULDOGHFLVLRQEHOLHYHGWREHWKH ODUJHVWYHUGLFWLQ'HODZDUHFRUSRUDWHODZKLVWRU\,Q6RXWKHUQ3HUXDSXEOLFO\WUDGHGFRSSHUPLQLQJ FRPSDQ\ DFTXLUHG 0LQHUD 0H[LFR D SULYDWH PLQLQJ FRPSDQ\ RZQHG E\ 6RXWKHUQ 3HUX¶V PDMRULW\ VWRFNKROGHU*UXSR0H[LFR7KHDFTXLVLWLRQUHTXLUHG6RXWKHUQ3HUXWRSD\*UXSR0H[LFRPRUHWKDQ ELOOLRQLQ6RXWKHUQ3HUXVWRFN:HDOOHJHGWKDW*UXSR0H[LFRKDGFDXVHG6RXWKHUQ3HUXWRJURVVO\RYHUSD\ IRUWKHSULYDWHFRPSDQ\LQGHIHUHQFHWRLWVPDMRULW\VKDUHKROGHU¶VLQWHUHVWV'LVFRYHU\LQWKHFDVHVSDQQHG \HDUV DQG FRQWLQHQWV ZLWK GHSRVLWLRQV LQ 3HUX DQG 0H[LFR 7KH WULDO FRXUW DJUHHG DQG RUGHUHG *UXSR 0H[LFRWRSD\PRUHWKDQELOOLRQLQGDPDJHVDQGLQWHUHVW7KH'HODZDUH6XSUHPH&RXUWDIILUPHGRQ DSSHDO Quinn v. Knight1RFY ('9D0DU ³Apple REIT Ten” 7KLVVKDUHKROGHUGHULYDWLYHDFWLRQFKDOOHQJHGDFRQIOLFWHG³UROOXS´5(,7WUDQVDFWLRQRUFKHVWUDWHGE\*ODGH 0.QLJKWDQGKLVVRQ-XVWLQ.QLJKW7KHSURSRVHGWUDQVDFWLRQSDLGWKH.QLJKWVPLOOLRQVRIGROODUVZKLOH SD\LQJ SXEOLF VWRFNKROGHUV OHVV WKDQ WKH\ KDG LQYHVWHG LQ WKH FRPSDQ\ 7KH FDVH ZDV EURXJKW XQGHU 9LUJLQLDODZDQGVHWWOHGMXVWWHQGD\VEHIRUHWULDOZLWKVWRFNKROGHUVUHFHLYLQJDQDGGLWLRQDOPLOOLRQLQ PHUJHUFRQVLGHUDWLRQ Kastis v. Carter&$1R&% 'HO&K6HSW ³Hemispherx Biopharma, Inc.´ 7KLV GHULYDWLYH DFWLRQ FKDOOHQJHG LPSURSHU ERQXVHV SDLG WR WZR FRPSDQ\ H[HFXWLYHV RI WKLV VPDOO SKDUPDFHXWLFDOFRPSDQ\WKDWKDGQHYHUWXUQHGDSURILW,QUHVSRQVHWRWKHFRPSODLQW+HPLVSKHU[¶VERDUG ILUVWDGRSWHGD³IHHVKLIWLQJ´E\ODZWKDWZRXOGKDYHUHTXLUHGVWRFNKROGHUSODLQWLIIVWRSD\WKHFRPSDQ\¶V OHJDOIHHVXQOHVVWKHSODLQWLIIVDFKLHYHGRIWKHUHOLHIWKH\VRXJKW7KLVVRUWRIE\ODZLIDGRSWHGPRUH EURDGO\FRXOGVXEVWDQWLDOO\FXUWDLOPHULWRULRXVOLWLJDWLRQE\VWRFNKROGHUVXQZLOOLQJWRULVNORVLQJPLOOLRQV RI GROODUV LI WKH\ EULQJ DQ XQVXFFVHVVIXO FDVH $IWHU .HVVOHU 7RSD] SUHVHQWHG LWV DUJXPHQW LQ FRXUW +HPLVSKHU[ ZLWKGUHZ WKH E\ODZ .HVVOHU 7RSD] XOWLPDWHO\ QHJRWLDWHG D VHWWOHPHQW UHTXLULQJ WKH WZR H[HFXWLYHV WR IRUIHLW VHYHUDO PLOOLRQ GROODUV¶ ZRUWK RI DFFUXHG EXW XQSDLG ERQXVHV IXWXUH ERQXVHV DQG GLUHFWRU IHHV 7KH FRPSDQ\ DOVR UHFRYHUHG PLOOLRQ IURP LWV LQVXUDQFH FDUULHUV DSSRLQWHG D QHZ LQGHSHQGHQWGLUHFWRUWRWKHERDUGDQGUHYLVHGLWVFRPSHQVDWLRQSURJUDP Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 20 of 54 Montgomery v. Erickson, Inc., et al.&$1R9&/ 'HO&K6HSW .HVVOHU7RSD]UHSUHVHQWHGDQLQGLYLGXDOVWRFNKROGHUZKRDVVHUWHGLQWKH'HODZDUH&RXUWRI&KDQFHU\FODVV DFWLRQ DQG GHULYDWLYH FODLPV FKDOOHQJLQJ PHUJHU DQG UHFDSLWDOL]DWLRQ WUDQVDFWLRQV WKDW EHQHILWWHG WKH FRPSDQ\¶VFRQWUROOLQJVWRFNKROGHUVDWWKHH[SHQVHRIWKHFRPSDQ\DQGLWVPLQRULW\VWRFNKROGHUV3ODLQWLII DOOHJHGWKDWWKHFRQWUROOLQJVWRFNKROGHUVRI(ULFNVRQRUFKHVWUDWHGDVHULHVRIWUDQVDFWLRQVZLWKWKHLQWHQWDQG HIIHFWRIXVLQJ(ULFNVRQ¶VPRQH\WREDLOWKHPVHOYHVRXWRIDIDLOLQJLQYHVWPHQW'HIHQGDQWVILOHGDPRWLRQ WRGLVPLVVWKHFRPSODLQWZKLFK.HVVOHU7RSD]GHIHDWHGDQGWKHFDVHSURFHHGHGWKURXJKPRUHWKDQD\HDU RI IDFW GLVFRYHU\ )ROORZLQJ DQ LQLWLDOO\ XQVXFFHVVIXO PHGLDWLRQ DQG IXUWKHU OLWLJDWLRQ .HVVOHU 7RSD] XOWLPDWHO\DFKLHYHGDQPLOOLRQFDVKVHWWOHPHQWRIZKLFKZDVGLVWULEXWHGWRPHPEHUVRIWKH VWRFNKROGHUFODVVWRUHVROYHWKHLUGLUHFWFODLPVDQGRIZKLFKZDVSDLGWRWKHFRPSDQ\WRUHVROYHWKH GHULYDWLYHFODLPV7KHVHWWOHPHQWDOVRLQVWLWXWHGFKDQJHVWRWKHFRPSDQ\¶VJRYHUQLQJGRFXPHQWVWRSUHYHQW IXWXUHVHOIGHDOLQJWUDQVDFWLRQVOLNHWKRVHWKDWJDYHULVHWRWKHFDVH In re Helios Closed-End Funds Derivative Litig.1RFY6+0703 :'7HQQ .HVVOHU7RSD]UHSUHVHQWHGVWRFNKROGHUVRIIRXUFORVHGHQGPXWXDOIXQGVLQDGHULYDWLYHDFWLRQDJDLQVWWKH IXQGV¶ IRUPHU LQYHVWPHQW DGYLVRU 0RUJDQ $VVHW 0DQDJHPHQW 3ODLQWLIIV DOOHJHG WKDW WKH GHIHQGDQWV PLVPDQDJHGWKHIXQGVE\LQYHVWLQJLQULVNLHUVHFXULWLHVWKDQSHUPLWWHGE\WKHIXQGV¶JRYHUQLQJGRFXPHQWV DQGDIWHUWKHYDOXHVRIWKHVHVHFXULWLHVEHJDQWRSUHFLSLWRXVO\GHFOLQHEHJLQQLQJLQHDUO\FRYHUXS WKHLUZURQJGRLQJE\DVVLJQLQJSKRQ\YDOXHVWRWKHIXQGV¶LQYHVWPHQWVDQGIDLOLQJWRGLVFORVHWKHH[WHQWRI WKHGHFUHDVHLQYDOXHRIWKHIXQGV¶DVVHWV,QDUDUHRFFXUUHQFHLQGHULYDWLYHOLWLJDWLRQWKHIXQGV¶%RDUGVRI 'LUHFWRUVHYHQWXDOO\KLUHG.HVVOHU7RSD]WRSURVHFXWHWKHFODLPVDJDLQVWWKHGHIHQGDQWVRQEHKDOIRIWKH IXQGV2XUOLWLJDWLRQHIIRUWVOHGWRDVHWWOHPHQWWKDWUHFRYHUHGPLOOLRQIRUWKHIXQGVDQGHQVXUHGWKDWWKH IXQGVZRXOGQRWEHUHVSRQVLEOHIRUPDNLQJDQ\SD\PHQWWRUHVROYHFODLPVDVVHUWHGDJDLQVWWKHPLQDUHODWHG PXOWLPLOOLRQGROODUVHFXULWLHVFODVVDFWLRQ7KHIXQG¶V%RDUGVIXOO\VXSSRUWHGDQGHQGRUVHGWKHVHWWOHPHQW ZKLFKZDVQHJRWLDWHGLQGHSHQGHQWO\RIWKHSDUDOOHOVHFXULWLHVFODVVDFWLRQ In re Viacom, Inc. Shareholder Derivative Litig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arbon County Employees Retirement System, et al., Derivatively on Behalf of Nominal Defendant Southwest Airlines Co. v. Gary C. Kelly, et al. &DXVH1R 'LVWULFW&RXUWRI'DOODV&RXQW\ 7H[DV $VOHDGFRXQVHOLQWKLVGHULYDWLYHDFWLRQZHQHJRWLDWHGDVHWWOHPHQWZLWKIDUUHDFKLQJLPSOLFDWLRQVIRUWKH VDIHW\DQGVHFXULW\RIDLUOLQHSDVVHQJHUV 2XUFOLHQWVZHUHVKDUHKROGHUVRI6RXWKZHVW$LUOLQHV&R 6RXWKZHVW ZKRDOOHJHGWKDWFHUWDLQRIILFHUVDQG GLUHFWRUVKDGEUHDFKHGWKHLUILGXFLDU\GXWLHVLQFRQQHFWLRQZLWK6RXWKZHVW¶VYLRODWLRQVRI)HGHUDO$YLDWLRQ $GPLQLVWUDWLRQVDIHW\DQGPDLQWHQDQFHUHJXODWLRQV3ODLQWLIIVDOOHJHGWKDWIURP-XQHWR0DUFK 6RXWKZHVWIOHZ%RHLQJDLUSODQHVRQQHDUO\IOLJKWVZLWKRXWFRPSO\LQJZLWKD)$$ $LUZRUWKLQHVV'LUHFWLYHUHTXLULQJIXVHODJHIDWLJXHLQVSHFWLRQV$VDUHVXOW6RXWKZHVWZDVIRUFHGWRSD\D UHFRUGPLOOLRQILQH:HQHJRWLDWHGQXPHURXVUHIRUPVWRHQVXUHWKDW6RXWKZHVW¶V%RDUGLVDGHTXDWHO\ DSSULVHGRIVDIHW\DQGRSHUDWLRQVLVVXHVDQGLPSOHPHQWLQJVLJQLILFDQWPHDVXUHVWRVWUHQJWKHQVDIHW\DQG PDLQWHQDQFHSURFHVVHVDQGSURFHGXUHV The South Financial Group, Inc. Shareholder Litigation, &$ 1R &3 6& &&3 5HSUHVHQWHG VKDUHKROGHUV LQ GHULYDWLYH OLWLJDWLRQ FKDOOHQJLQJ ERDUG¶V GHFLVLRQ WR DFFHOHUDWH ³JROGHQ SDUDFKXWH´SD\PHQWVWR6RXWK)LQDQFLDO*URXS¶V&(2DVWKHFRPSDQ\DSSOLHGIRUHPHUJHQF\DVVLVWDQFHLQ XQGHUWKH7URXEOHG$VVHW5HFRYHU\3ODQ 7$53 :HVRXJKWLQMXQFWLYHUHOLHIWREORFNWKHSD\PHQWVDQGSURWHFWWKHFRPSDQ\¶VDELOLW\WRUHFHLYHWKH7$53 IXQGV7KHOLWLJDWLRQZDVVHWWOHGZLWKWKH&(2JLYLQJXSSDUWRIKLVVHYHUDQFHSDFNDJHDQGDJUHHLQJWR OHDYHWKHERDUGDVZHOODVWKHLPSOHPHQWDWLRQRILPSRUWDQWFRUSRUDWHJRYHUQDQFHFKDQJHVRQHFRPPHQWDWRU GHVFULEHGDV³XQSUHFHGHQWHG´ 2SWLRQV%DFNGDWLQJ ,QWKH:DOO6WUHHW-RXUQDOUHSRUWHGWKDWWKUHHFRPSDQLHVDSSHDUHGWRKDYH³EDFNGDWHG´VWRFNRSWLRQ JUDQWVWRWKHLUVHQLRUH[HFXWLYHVSUHWHQGLQJWKDWWKHRSWLRQVKDGEHHQDZDUGHGZKHQWKHVWRFNSULFHZDVDW LWVORZHVWSULFHRIWKHTXDUWHURUHYHQ\HDU$QH[HFXWLYHZKRH[HUFLVHGWKHRSWLRQWKXVSDLGWKHFRPSDQ\ DQDUWLILFLDOO\ORZSULFHZKLFKVWROHPRQH\IURPWKHFRUSRUDWHFRIIHUV:KLOHVWRFNRSWLRQVDUHGHVLJQHG WRLQFHQWLYL]HUHFLSLHQWVWRGULYHWKHFRPSDQ\¶VVWRFNSULFHXSEDFNGDWLQJRSWLRQVWRDUWLILFLDOO\ORZSULFHV XQGHUFXWWKRVHLQFHQWLYHVRYHUSDLGH[HFXWLYHVYLRODWHGWD[UXOHVDQGGHFUHDVHGVKDUHKROGHUYDOXH .HVVOHU7RSD]ZRUNHGZLWKDILQDQFLDODQDO\VWWRLGHQWLI\GR]HQVRIRWKHUFRPSDQLHVWKDWKDGHQJDJHGLQ VLPLODUSUDFWLFHVDQGILOHGPRUHWKDQGHULYDWLYHVXLWVFKDOOHQJLQJWKHSUDFWLFH7KHVHVXLWVVRXJKWWR IRUFHWKHH[HFXWLYHVWRGLVJRUJHWKHLULPSURSHUFRPSHQVDWLRQDQGWRUHYDPS WKHFRPSDQLHV¶H[HFXWLYH FRPSHQVDWLRQSROLFLHV8OWLPDWHO\DVOHDGFRXQVHOLQWKHVHGHULYDWLYHDFWLRQV.HVVOHU7RSD]DFKLHYHG VLJQLILFDQWPRQHWDU\DQGQRQPRQHWDU\EHQHILWVDWGR]HQVRIFRPSDQLHVLQFOXGLQJ Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 22 of 54 Comverse Technology, Inc.6HWWOHPHQWUHTXLUHG&RPYHUVH¶VIRXQGHUDQG&(2.REL$OH[DQGHUZKRIOHG WR1DPLELDDIWHUWKHEDFNGDWLQJZDVUHYHDOHGWRGLVJRUJHPRUHWKDQPLOOLRQLQH[FHVVLYHEDFNGDWHG RSWLRQFRPSHQVDWLRQ7KHVHWWOHPHQWDOVRRYHUKDXOHGWKHFRPSDQ\¶VFRUSRUDWHJRYHUQDQFHDQGLQWHUQDO FRQWUROV UHSODFLQJ D QXPEHU RI GLUHFWRUV DQG FRUSRUDWH H[HFXWLYHV VSOLWWLQJ WKH &KDLUPDQ DQG &(2 SRVLWLRQVDQGLQVWLWXWLQJPDMRULW\YRWLQJIRUGLUHFWRUV Monster Worldwide, Inc.6HWWOHPHQWUHTXLUHGUHFLSLHQWVRIEDFNGDWHGVWRFNRSWLRQVWRGLVJRUJHPRUHWKDQ PLOOLRQ LQ XQODZIXO JDLQV EDFN WR WKH FRPSDQ\ SOXV DJUHHLQJ WR VLJQLILFDQW FRUSRUDWH JRYHUQDQFH PHDVXUHV7KHVHPHDVXUHVLQFOXGHG D UHTXLULQJ0RQVWHU¶VIRXQGHU$QGUHZ0F.HOYH\WRUHGXFHKLVYRWLQJ FRQWURO RYHU 0RQVWHU IURP WR E\ H[FKDQJLQJ VXSHUYRWLQJ VWRFN IRU FRPPRQ VWRFN DQG E LPSOHPHQWLQJ QHZ HTXLW\ JUDQWLQJ SUDFWLFHV WKDW UHTXLUH JUHDWHU DFFRXQWDELOLW\ DQG WUDQVSDUHQF\ LQ WKH JUDQWLQJRIVWRFNRSWLRQVPRYLQJIRUZDUG,QDSSURYLQJWKHVHWWOHPHQWWKHFRXUWQRWHG³WKHJRRGUHVXOWV PDLQO\WKHDPRXQWRIPRQH\IRUWKHVKDUHKROGHUVDQGDOVRWKHFKDQJHLQJRYHUQDQFHRIWKHFRPSDQ\LWVHOI DQGUHDOO\WKHKDUGZRUNWKDWKDGWRJRLQWRWKDWWRDFKLHYHWKHUHVXOWV«´ Affiliated Computer Services, Inc.6HWWOHPHQWUHTXLUHGH[HFXWLYHVLQFOXGLQJIRXQGHU'DUZLQ'HDVRQWR JLYHXSPLOOLRQLQLPSURSHUEDFNGDWHGRSWLRQV7KHOLWLJDWLRQZDVDOVRDFDWDO\VWIRUWKHFRPSDQ\WR UHSODFHLWV&(2DQG&)2DQGUHYDPSLWVH[HFXWLYHFRPSHQVDWLRQSROLFLHV 0HUJHUV $FTXLVLWLRQV/LWLJDWLRQ City of Daytona Beach Police and Fire Pension Fund v. ExamWorks Group, Inc., et al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¶RXWVLGHOHJDOFRXQVHO3DXO+DVWLQJV//3 In re ArthroCare Corporation S’holder Litig., Consol. &$1R9&/ 'HO&K1RY .HVVOHU7RSD]DVFROHDGFRXQVHOFKDOOHQJHGWKHWDNHSULYDWHRI$UWKURFDUH&RUSRUDWLRQE\SULYDWHHTXLW\ ILUP6PLWK 1HSKHZ7KLVFODVVDFWLRQOLWLJDWLRQDOOHJHGDPRQJRWKHUWKLQJVWKDW$UWKURFDUH¶V%RDUG EUHDFKHGWKHLUILGXFLDU\GXWLHVE\IDLOLQJWRPD[LPL]HVWRFNKROGHUYDOXHLQWKHPHUJHU3ODLQWLIIVDOVR DOOHJHGWKDWWKDWWKHPHUJHUYLRODWHG6HFWLRQRIWKH'HODZDUH*HQHUDO&RUSRUDWLRQ/DZZKLFKSURKLELWV PHUJHUV ZLWK ³LQWHUHVWHG VWRFNKROGHUV´ EHFDXVH 6PLWK 1HSKHZ KDG FRQWUDFWHG ZLWK -3 0RUJDQ WR SURYLGHILQDQFLDODGYLFHDQGILQDQFLQJLQWKHPHUJHUZKLOHDVXEVLGLDU\RI-30RUJDQRZQHGPRUHWKDQ RI$UWKURFDUH¶VVWRFN3ODLQWLIIVDOVRDOOHJHGWKDWWKHDJUHHPHQWEHWZHHQ6PLWK 1HSKHZDQGWKH-3 0RUJDQVXEVLGLDU\YLRODWHGD³VWDQGVWLOO´DJUHHPHQWEHWZHHQWKH-30RUJDQVXEVLGLDU\DQG$UWKURFDUH 7KHFRXUWVHWWKHVHQRYHOOHJDOFODLPVIRUDQH[SHGLWHGWULDOSULRUWRWKHFORVLQJRIWKHPHUJHU7KHSDUWLHV DJUHHGWRVHWWOHWKHDFWLRQZKHQ6PLWK 1HSKHZDJUHHGWRLQFUHDVHWKH PHUJHUFRQVLGHUDWLRQSDLGWR $UWKURFDUHVWRFNKROGHUVE\PLOOLRQOHVVWKDQDPRQWKEHIRUHWULDO In re Safeway Inc. Stockholders Litig., &$1R9&/ 'HO&K6HSW .HVVOHU 7RSD] UHSUHVHQWHG WKH 2NODKRPD )LUHILJKWHUV 3HQVLRQ DQG 5HWLUHPHQW 6\VWHP LQ FODVV DFWLRQ OLWLJDWLRQFKDOOHQJLQJWKHDFTXLVLWLRQRI6DIHZD\,QFE\$OEHUWVRQ¶VJURFHU\FKDLQIRUSHUVKDUHLQ FDVKDQGFRQWLQJHQWYDOXHULJKWV.HVVOHU7RSD]DUJXHGWKDWWKHYDOXHRI&95VZDVLOOXVRU\DQG6DIHZD\¶V VKDUHKROGHU ULJKWV SODQ KDG D SURKLELWLYH HIIHFW RQ SRWHQWLDO ELGGHUV PDNLQJ VXSHULRU RIIHUV WR DFTXLUH Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 23 of 54 6DIHZD\ZKLFKXQGHUPLQHGWKHHIIHFWLYHQHVVRIWKHSRVWVLJQLQJ³JRVKRS´3ODLQWLIIVVRXJKWWRHQMRLQWKH WUDQVDFWLRQEXWEHIRUHWKHVFKHGXOHGSUHOLPLQDU\LQMXQFWLRQKHDULQJWRRNSODFH.HVVOHU7RSD]QHJRWLDWHG L PRGLILFDWLRQVWRWKHWHUPVRIWKH&95VDQG LL GHIHQGDQWV¶ZLWKGUDZDORIWKHVKDUHKROGHUULJKWVSODQ ,Q DSSURYLQJ WKH VHWWOHPHQW 9LFH &KDQFHOORU /DVWHU RI WKH 'HODZDUH &KDQFHU\ &RXUW VWDWHG WKDW ³WKH SODLQWLIIVREWDLQHGVLJQLILFDQWFKDQJHVWRWKHWUDQVDFWLRQWKDWPD\ZHOOUHVXOWLQPDWHULDOLQFUHDVHVLQWKH FRPSHQVDWLRQUHFHLYHGE\WKHFODVV´LQFOXGLQJVXEVWDQWLDOEHQHILWVSRWHQWLDOO\LQH[FHVVRIPLOOLRQ In re MPG Office Trust, Inc. Preferred Shareholder Litig., &RQV&DVH1R& 0G&LU 2FW .HVVOHU7RSD]FKDOOHQJHGDFRHUFLYHWHQGHURIIHUZKHUHE\03*SUHIHUUHGVWRFNKROGHUVUHFHLYHGSUHIHUUHG VWRFNLQ%URRNILHOG2IILFH3URSHUWLHV,QFZLWKRXWUHFHLYLQJDQ\FRPSHQVDWLRQIRUWKHLUDFFUXHGDQGXQSDLG GLYLGHQGV.HVVOHU7RSD]QHJRWLDWHGDVHWWOHPHQWZKHUH03*SUHIHUUHGVWRFNKROGHUVUHFHLYHGDGLYLGHQG RISHUVKDUHZRUWKDSSUR[LPDWHO\PLOOLRQZKLFKZDVWKHRQO\SD\PHQWRIDFFUXHGGLYLGHQGV %URRNILHOG'7/$3UHIHUUHG6WRFNKROGHUVKDGUHFHLYHGDVRIWKHWLPHRIWKHVHWWOHPHQW In re Globe Specialty Metals, Inc. Stockholders Litig., &$9&* 'HO&K)HE .HVVOHU7RSD]VHUYHGDVFROHDGFRXQVHOLQFODVVDFWLRQOLWLJDWLRQDULVLQJIURP*OREH¶VDFTXLVLWLRQE\*UXSR $WODQWLFD WR IRUP )HUURJOREH 3ODLQWLIIV DOOHJHG WKDW *OREH¶V %RDUG EUHDFKHG WKHLU ILGXFLDU\ GXWLHV WR *OREH¶VSXEOLFVWRFNKROGHUVE\DJUHHLQJWRVHOO*OREHIRUDQXQIDLUSULFHQHJRWLDWLQJSHUVRQDOEHQHILWVIRU WKHPVHOYHVDWWKHH[SHQVHRIWKHSXEOLFVWRFNKROGHUVIDLOLQJWRDGHTXDWHO\LQIRUPWKHPVHOYHVRIPDWHULDO LVVXHVZLWK*UXSR$WODQWLFDDQGLVVXLQJDQXPEHURIPDWHULDOO\GHILFLHQWGLVFORVXUHVLQDQDWWHPSWWRPDVN LVVXHVZLWKWKHQHJRWLDWLRQV$WRUDODUJXPHQWRQ3ODLQWLIIV¶SUHOLPLQDU\LQMXQFWLRQPRWLRQWKH&RXUWKHOG WKDW*OREHVWRFNKROGHUVOLNHO\IDFHGLUUHSDUDEOHKDUPIURPWKH%RDUG¶VFRQGXFWEXWUHVHUYHGUXOLQJRQWKH RWKHUSUHOLPLQDU\LQMXQFWLRQIDFWRUV3ULRUWRWKH&RXUW¶VILQDOUXOLQJWKHSDUWLHVDJUHHGWRVHWWOHWKHDFWLRQ IRU PLOOLRQ DQG YDULRXV FRUSRUDWH JRYHUQDQFH UHIRUPV WR SURWHFW *OREH VWRFNKROGHUV¶ ULJKWV LQ )HUURJOREH In re Dole Food Co., Inc. Stockholder Litig.&RQVRO&$1R9&/:/ 'HO &K$XJ 2Q$XJXVW9LFH&KDQFHOORU-7UDYLV/DVWHULVVXHGKLVPXFKDQWLFLSDWHGSRVWWULDOYHUGLFWLQ OLWLJDWLRQ E\ IRUPHU VWRFNKROGHUV RI 'ROH )RRG &RPSDQ\ DJDLQVW 'ROH¶V FKDLUPDQ DQG FRQWUROOLQJ VWRFNKROGHU'DYLG0XUGRFN,QDSDJHUXOLQJ9LFH&KDQFHOORU/DVWHUIRXQGWKDW0XUGRFNDQGKLV ORQJWLPHOLHXWHQDQW'ROH¶VIRUPHUSUHVLGHQWDQGJHQHUDOFRXQVHO&0LFKDHO&DUWHUXQIDLUO\PDQLSXODWHG 'ROH¶VILQDQFLDOSURMHFWLRQVDQGPLVOHGWKHPDUNHWDVSDUWRI0XUGRFN¶VHIIRUWVWRWDNHWKHFRPSDQ\SULYDWH LQDGHDOWKDWFORVHGLQ1RYHPEHU$PRQJRWKHUWKLQJVWKH&RXUWFRQFOXGHGWKDW0XUGRFNDQG&DUWHU ³SULPHGWKHPDUNHWIRUWKHIUHH]HRXWE\GULYLQJGRZQ'ROH¶VVWRFNSULFH´DQGSURYLGHGWKHFRPSDQ\¶V RXWVLGHGLUHFWRUVZLWK³NQRZLQJO\IDOVH´LQIRUPDWLRQDQGLQWHQGHGWR³PLVOHDGWKHERDUGIRU0U0XUGRFN¶V EHQHILW´ 9LFH&KDQFHOORU/DVWHUIRXQGWKDWWKHSHUVKDUHJRLQJSULYDWHGHDOXQGHUSDLGVWRFNKROGHUVDQG DZDUGHGFODVVGDPDJHVRISHUVKDUHWRWDOLQJPLOOLRQ7KDWDZDUGUHSUHVHQWVWKHODUJHVWSRVW WULDO FODVV UHFRYHU\ LQ WKH PHUJHU FRQWH[W 7KH ODUJHVW SRVWWULDO GHULYDWLYH UHFRYHU\ LQ D PHUJHU FDVH UHPDLQV.HVVOHU7RSD]¶VODQGPDUNELOOLRQYHUGLFWLQIn re Southern Peru In re Genentech, Inc. Shareholders Lit. &RQV &LY $FWLRQ 1R 9&6 'HO &K .HVVOHU7RSD]VHUYHGDV&R/HDG&RXQVHOLQWKLVVKDUHKROGHUFODVVDFWLRQEURXJKWDJDLQVWWKHGLUHFWRUVRI *HQHQWHFKDQG*HQHQWHFK¶VPDMRULW\VWRFNKROGHU5RFKH+ROGLQJV,QFLQUHVSRQVHWR5RFKH¶V-XO\ DWWHPSWWRDFTXLUH*HQHQWHFKIRUSHUVKDUH:HVRXJKWWRHQIRUFHSURYLVLRQVRIDQ$IILOLDWLRQ $JUHHPHQWEHWZHHQ5RFKHDQG*HQHQWHFKDQGWRHQVXUHWKDW5RFKHIXOILOOHGLWVILGXFLDU\REOLJDWLRQVWR *HQHQWHFK¶VVKDUHKROGHUVWKURXJKDQ\EX\RXWHIIRUWE\5RFKH$IWHUPRYLQJWRHQMRLQWKHWHQGHURIIHU .HVVOHU 7RSD] QHJRWLDWHG ZLWK 5RFKH DQG *HQHQWHFK WR DPHQG WKH $IILOLDWLRQ $JUHHPHQW WR DOORZ D Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 24 of 54 QHJRWLDWHGWUDQVDFWLRQEHWZHHQ5RFKHDQG*HQHQWHFKZKLFKHQDEOHG5RFKHWRDFTXLUH*HQHQWHFKIRU SHUVKDUHDSSUR[LPDWHO\ELOOLRQPRUHWKDQ5RFKHRIIHUHGLQLWVKRVWLOHWHQGHURIIHU,QDSSURYLQJWKH VHWWOHPHQWWKHQ9LFH&KDQFHOORU/HR6WULQHFRPSOLPHQWHGSODLQWLIIV¶FRXQVHOQRWLQJWKDWWKLVEHQHILWZDV RQO\DFKLHYHGWKURXJK³UHDOKDUGIRXJKWOLWLJDWLRQLQDFRPSOLFDWHGVHWWLQJ´ In re GSI Commerce, Inc. Shareholder Litig.&RQVRO&$1R9&1 'HO&K1RY 2QEHKDOIRIWKH(ULH&RXQW\(PSOR\HHV¶5HWLUHPHQW6\VWHPZHDOOHJHGWKDW*6,¶VIRXQGHUEUHDFKHGKLV ILGXFLDU\GXWLHVE\QHJRWLDWLQJDVHFUHWGHDOZLWKH%D\IRUKLPWREX\VHYHUDO*6,VXEVLGLDULHVDWEHORZ PDUNHWSULFHVEHIRUHVHOOLQJWKHUHPDLQGHURIWKHFRPSDQ\WRH%D\7KHVHVLGHGHDOVVLJQLILFDQWO\UHGXFHG WKH DFTXLVLWLRQ SULFH SDLG WR *6, VWRFNKROGHUV 'D\V EHIRUH DQ LQMXQFWLRQ KHDULQJ ZH QHJRWLDWHG DQ LPSURYHPHQWLQWKHGHDOSULFHRIPLOOLRQ In re Amicas, Inc. Shareholder Litigation, %/6 6XIIRON &RXQW\ 0$ .HVVOHU7RSD]VHUYHGDVOHDGFRXQVHOLQFODVVDFWLRQOLWLJDWLRQFKDOOHQJLQJDSURSRVHGSULYDWHHTXLW\EX\RXW RI $PLFDV WKDW ZRXOG KDYH SDLG $PLFDV VKDUHKROGHUV SHU VKDUH LQ FDVK ZKLOH FHUWDLQ $PLFDV H[HFXWLYHVUHWDLQHGDQHTXLW\VWDNHLQWKHVXUYLYLQJHQWLW\PRYLQJIRUZDUG.HVVOHU7RSD]SUHYDLOHGLQ VHFXULQJDSUHOLPLQDU\LQMXQFWLRQDJDLQVWWKHGHDOZKLFKWKHQDOORZHGDVXSHULRUELGGHUWRSXUFKDVHWKH &RPSDQ\IRUDQDGGLWLRQDOSHUVKDUH PLOOLRQ 7KHFRXUWFRPSOLPHQWHG.HVVOHU7RSD]DWWRUQH\V IRUFDXVLQJDQ³H[FHSWLRQDOO\IDYRUDEOHUHVXOWIRU$PLFDV¶VKDUHKROGHUV´DIWHU³H[SHQG>LQJ@VXEVWDQWLDO UHVRXUFHV´ In re Harleysville Mutual1RY7HUP1R &&33KLOD&QW\ .HVVOHU 7RSD] VHUYHG DV FROHDG FRXQVHO LQ H[SHGLWHG PHUJHU OLWLJDWLRQ FKDOOHQJLQJ +DUOH\VYLOOH¶V DJUHHPHQWWRVHOOWKHFRPSDQ\WR1DWLRQZLGH,QVXUDQFH&RPSDQ\3ODLQWLIIVDOOHJHGWKDWSROLF\KROGHUV ZHUH HQWLWOHG WR UHFHLYH FDVK LQ H[FKDQJH IRU WKHLU RZQHUVKLS LQWHUHVWV LQ WKH FRPSDQ\ QRW MXVW QHZ 1DWLRQZLGHSROLFLHV3ODLQWLIIVDOVRDOOHJHGWKDWWKHPHUJHUZDV³IXQGDPHQWDOO\XQIDLU´XQGHU3HQQV\OYDQLD ODZ7KHGHIHQGDQWVFRQWHVWHGWKHDOOHJDWLRQVDQGFRQWHQGHGWKDWWKHFODLPVFRXOGQRWEHSURVHFXWHGGLUHFWO\ E\SROLF\KROGHUV DVRSSRVHGWRGHULYDWLYHO\RQWKHFRPSDQ\¶VEHKDOI )ROORZLQJDWZRGD\SUHOLPLQDU\ LQMXQFWLRQKHDULQJZHVHWWOHGWKHFDVHLQH[FKDQJHIRUDPLOOLRQFDVKSD\PHQWWRSROLF\KROGHUV &RQVXPHU3URWHFWLRQDQG)LGXFLDU\/LWLJDWLRQ In re: J.P. Jeanneret Associates Inc., et al., 1RFY 6'1< .HVVOHU7RSD]VHUYHGDVOHDGFRXQVHOIRURQHRIWKHSODLQWLIIJURXSVLQDQDFWLRQDJDLQVW-3-HDQQHUHWDQG ,Y\$VVHW0DQDJHPHQWUHODWLQJWRDQDOOHJHGEUHDFKRIILGXFLDU\DQGVWDWXWRU\GXW\LQFRQQHFWLRQZLWKWKH LQYHVWPHQWRIUHWLUHPHQWSODQDVVHWVLQ%HUQDUG0DGRIIUHODWHGHQWLWLHV%\EUHDFKLQJWKHLUILGXFLDU\GXWLHV 'HIHQGDQWVFDXVHGVLJQLILFDQWORVVHVWRWKHUHWLUHPHQWSODQV)ROORZLQJH[WHQVLYHKDUGIRXJKWOLWLJDWLRQ WKHFDVHVHWWOHGIRUDWRWDORIPLOOLRQ In re: National City Corp. Securities, Derivative and ERISA Litig, 1RQF 1'2KLR .HVVOHU7RSD]VHUYHGDVDOHDGFRXQVHOLQWKLVFRPSOH[DFWLRQDOOHJLQJWKDWFHUWDLQGLUHFWRUVDQGRIILFHUVRI 1DWLRQDO&LW\&RUSEUHDFKHGWKHLUILGXFLDU\GXWLHVXQGHUWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\$FW RI7KHVHEUHDFKHVDURVHIURPDQLQYHVWPHQWLQ1DWLRQDO&LW\VWRFNGXULQJDWLPHZKHQGHIHQGDQWV NQHZRUVKRXOGKDYHNQRZQWKDWWKHFRPSDQ\VWRFNZDVDUWLILFLDOO\LQIODWHGDQGDQLPSUXGHQWLQYHVWPHQW IRUWKHFRPSDQ\¶V N SODQ7KHFDVHVHWWOHGIRUPLOOLRQRQEHKDOIRIWKHSODQSODLQWLIIVDQGD VHWWOHPHQWFODVVRISODQSDUWLFLSDQWV Alston, et al. v. Countrywide Financial Corp. et al1RFY ('3D .HVVOHU 7RSD] VHUYHG DV OHDG FRXQVHO LQ WKLV QRYHO DQG FRPSOH[DFWLRQ ZKLFK DOOHJHG WKDW 'HIHQGDQWV &RXQWU\ZLGH)LQDQFLDO&RUSRUDWLRQ&RXQWU\ZLGH+RPH/RDQV,QFDQG%DOERD5HLQVXUDQFH&RYLRODWHG Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 25 of 54 WKH5HDO(VWDWH6HWWOHPHQW3URFHGXUH$FW ³5(63$´ DQGXOWLPDWHO\FRVWERUURZHUVPLOOLRQVRIGROODUV 6SHFLILFDOO\WKHDFWLRQDOOHJHGWKDW'HIHQGDQWVHQJDJHGLQDVFKHPHUHODWHGWRSULYDWHPRUWJDJHLQVXUDQFH LQYROYLQJ NLFNEDFNV ZKLFK DUH SURKLELWHG XQGHU 5(63$ $IWHU WKUHH DQG D KDOI \HDUV RI KDUGIRXJKW OLWLJDWLRQWKHDFWLRQVHWWOHGIRUPLOOLRQ Trustees of the Local 464A United Food and Commercial Workers Union Pension Fund, et al. v. Wachovia Bank, N.A., et al.1RFY '1- )RUPRUHWKDQ\HDUV:DFKRYLDDQGLWVSUHGHFHVVRUVDFWHGDVLQYHVWPHQWPDQDJHUIRUWKH/RFDO$ 8)&:8QLRQ)XQGVH[HUFLVLQJLQYHVWPHQWGLVFUHWLRQFRQVLVWHQWZLWKFHUWDLQLQYHVWPHQWJXLGHOLQHVDQG ILGXFLDU\REOLJDWLRQV8QWLOPLG:DFKRYLDPDQDJHGWKHIL[HGLQFRPHDVVHWVRIWKHIXQGVVDIHO\DQG FRQVHUYDWLYHO\DQGWKHLUUHWXUQVFORVHO\WUDFNHGWKH/HKPDQ$JJUHJDWH%RQG,QGH[ QRZNQRZQDVWKH %DUFOD\¶V&DSLWDO$JJUHJDWH%RQG,QGH[ WRZKLFKWKHIXQGVZHUHEHQFKPDUNHG+RZHYHUEHJLQQLQJLQ PLG:DFKRYLDVLJQLILFDQWO\FKDQJHGWKHLQYHVWPHQWVWUDWHJ\FDXVLQJWKHIXQGV¶SRUWIROLRYDOXHWR GURSGUDVWLFDOO\EHORZWKHEHQFKPDUN6SHFLILFDOO\:DFKRYLDEHJDQWRGUDPDWLFDOO\GHFUHDVHWKHIXQGV¶ KROGLQJVLQVKRUWWHUPKLJKTXDOLW\ORZULVNGHEWLQVWUXPHQWVDQGPDWHULDOO\LQFUHDVHWKHLUKROGLQJVLQ KLJKULVNPRUWJDJHEDFNHGVHFXULWLHVDQGFROODWHUDOL]HGPRUWJDJHREOLJDWLRQV:HUHSUHVHQWHGWKHIXQGV¶ WUXVWHHVLQDOOHJLQJWKDWDPRQJRWKHUWKLQJV:DFKRYLDEUHDFKHGLWVILGXFLDU\GXW\E\IDLOLQJWRLQYHVWWKH DVVHWVLQDFFRUGDQFHZLWKWKHIXQGV¶FRQVHUYDWLYHLQYHVWPHQWJXLGHOLQHVIDLOLQJWRDGHTXDWHO\PRQLWRUWKH IXQGV¶IL[HGLQFRPHLQYHVWPHQWVDQGIDLOLQJWRSURYLGHFRPSOHWHDQGDFFXUDWHLQIRUPDWLRQWRSODLQWLIIV FRQFHUQLQJWKHFKDQJHLQLQYHVWPHQWVWUDWHJ\7KHPDWWHUZDVUHVROYHGSULYDWHO\EHWZHHQWKHSDUWLHV In re Bank of New York Mellon Corp. Foreign Exchange Transactions Litig.1RPG 6'1< 2QEHKDOIRIWKH6RXWKHDVWHUQ3HQQV\OYDQLD7UDQVSRUWDWLRQ$XWKRULW\3HQVLRQ)XQGDQGDFODVVRIVLPLODUO\ VLWXDWHGGRPHVWLFFXVWRGLDOFOLHQWVRI%1<0HOORQZHDOOHJHGWKDW%1<0HOORQVHFUHWO\DVVLJQHGDVSUHDG WRWKH);UDWHVDWZKLFKLWWUDQVDFWHG);WUDQVDFWLRQVRQEHKDOIRILWVFOLHQWVZKRSDUWLFLSDWHGLQWKH%1< 0HOORQ¶VDXWRPDWHG³6WDQGLQJ,QVWUXFWLRQ´);VHUYLFH%1<0HOORQGHWHUPLQLQJWKLVVSUHDGE\H[HFXWLQJ LWVFOLHQWV¶WUDQVDFWLRQVDWRQHUDWHDQGWKHQW\SLFDOO\DWWKHHQGRIWKHWUDGLQJGD\DVVLJQHGDUDWHWRLWV FOLHQWVZKLFKDSSUR[LPDWHGWKHZRUVWSRVVLEOHUDWHVRIWKHWUDGLQJGD\SRFNHWLQJWKHGLIIHUHQFHDVULVNOHVV SURILW 7KLV SUDFWLFH ZDV GHVSLWH %1< 0HOORQ¶V FRQWUDFWXDO SURPLVHV WR LWV FOLHQWV WKDW LWV 6WDQGLQJ ,QVWUXFWLRQVHUYLFHZDVGHVLJQHGWRSURYLGH³EHVWH[HFXWLRQ´ZDV³IUHHRIFKDUJH´DQGSURYLGHGWKH³EHVW UDWHVRIWKHGD\´7KHFDVHDVVHUWHGFODLPVIRUEUHDFKRIFRQWUDFWDQGEUHDFKRIILGXFLDU\GXW\RQEHKDOIRI %1<0HOORQ¶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¶VFXVWRGLDOFXVWRPHUVWRPLOOLRQ7KHVHWWOHPHQWZDVILQDOO\DSSURYHGRQ6HSWHPEHU ,QDSSURYLQJWKHVHWWOHPHQW-XGJH/HZLV.DSODQSUDLVHGFRXQVHOIRUD³ZRQGHUIXOMRE´UHFRJQL]LQJWKDW WKH\ZHUH³IRXJKWWRRWKDQGQDLODWHYHU\VWHSRIWKHURDG´,QIXUWKHUUHFRJQLWLRQRIWKHHIIRUWVRIFRXQVHO -XGJH.DSODQQRWHGWKDW³>W@KLVZDVDQRXWUDJHRXVZURQJE\WKH%DQNRI1HZ &RPSODLQWDOOHJHGDPRQJRWKHUWKLQJVWKDW%1<0LPSUXGHQWO\LQYHVWHGFDVKFROODWHUDOREWDLQHGXQGHULWV VHFXULWLHVOHQGLQJSURJUDPLQPHGLXPWHUPQRWHVLVVXHGE\6LJPD)LQDQFH,QFDIRUHLJQVWUXFWXUHG LQYHVWPHQWYHKLFOH ³6,9´ WKDWLVQRZLQUHFHLYHUVKLSDQGWKDWVXFKFRQGXFWFRQVWLWXWHGDEUHDFKRI %1<0¶VILGXFLDU\REOLJDWLRQVXQGHUWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\$FWRIDEUHDFKRI LWVILGXFLDU\GXWLHVXQGHUFRPPRQODZDQGDEUHDFKRILWVFRQWUDFWXDOREOLJDWLRQVXQGHUWKHVHFXULWLHV OHQGLQJ DJUHHPHQWV 7KH &RPSODLQW DOVR DVVHUWHG FODLPV IRU QHJOLJHQFH JURVV QHJOLJHQFH DQG ZLOOIXO PLVFRQGXFW7KHFDVHUHFHQWO\VHWWOHGIRUPLOOLRQ Transatlantic Holdings, Inc. et al. v. American International Group, Inc.et al.,$PHULFDQ$UELWUDWLRQ $VVRFLDWLRQ&DVH1R7 .HVVOHU7RSD]VHUYHGDVFRXQVHOIRU7UDQVDWODQWLF+ROGLQJV,QFDQGLWVVXEVLGLDULHV ³75+´ DOOHJLQJ WKDW $PHULFDQ ,QWHUQDWLRQDO *URXS ,QF DQG LWV VXEVLGLDULHV ³$,*´ EUHDFKHG WKHLU ILGXFLDU\ GXWLHV FRQWUDFWXDO GXWLHV DQG FRPPLWWHG IUDXG LQ FRQQHFWLRQ ZLWK WKHDGPLQLVWUDWLRQ RI LWV VHFXULWLHV OHQGLQJ SURJUDP8QWLO-XQH$,*ZDV75+¶VPDMRULW\VKDUHKROGHUDQGDWWKHVDPHWLPHDGPLQLVWHUHG75+¶V VHFXULWLHVOHQGLQJSURJUDP75+¶V6WDWHPHQWRI&ODLPDOOHJHGWKDWDPRQJRWKHUWKLQJV$,*EUHDFKHGLWV ILGXFLDU\REOLJDWLRQVDVLQYHVWPHQWDGYLVRUDQGPDMRULW\VKDUHKROGHUE\LPSUXGHQWO\LQYHVWLQJWKHPDMRULW\ RIWKHFDVKFROODWHUDOREWDLQHGXQGHULWVVHFXULWLHVOHQGLQJSURJUDPLQPRUWJDJHEDFNHGVHFXULWLHVLQFOXGLQJ $OW$DQGVXESULPHLQYHVWPHQWV7KH6WDWHPHQWRI&ODLPIXUWKHUDOOHJHGWKDW$,*FRQFHDOHGWKHH[WHQWRI 75+¶VVXESULPHH[SRVXUHDQGWKDWZKHQWKHFROODWHUDOSRROVEHJDQH[SHULHQFLQJOLTXLGLW\SUREOHPVLQ $,*XQLODWHUDOO\FDUYHG75+RXWRIWKHSRROVVRWKDWLWFRXOGSURYLGHIXQGLQJWRLWVZKROO\RZQHG VXEVLGLDULHVWRWKHH[FOXVLRQRI75+7KHPDWWHUZDVOLWLJDWHGWKURXJKDELQGLQJDUELWUDWLRQDQG75+ZDV DZDUGHGPLOOLRQ Board of Trustees of the AFTRA Retirement Fund v. JPMorgan Chase Bank, N.A. – &RQVROLGDWHG $FWLRQ1RFY 6$6 6'1< 2Q-DQXDU\WKHILUPILOHGDFODVVDFWLRQFRPSODLQWRQEHKDOIRIDOOHQWLWLHVWKDWZHUHSDUWLFLSDQWV LQ-30RUJDQ¶VVHFXULWLHVOHQGLQJSURJUDPDQGWKDWLQFXUUHGORVVHVRQLQYHVWPHQWVWKDW-30RUJDQDFWLQJLQ LWVFDSDFLW\DVDGLVFUHWLRQDU\LQYHVWPHQWPDQDJHUPDGHLQPHGLXPWHUPQRWHVLVVXHE\6LJPD)LQDQFH ,QF±DQRZGHIXQFWVWUXFWXUHGLQYHVWPHQWYHKLFOH7KHORVVHVRIWKH&ODVVH[FHHGHGPLOOLRQ7KH FRPSODLQWDVVHUWHGFODLPVIRUEUHDFKRIILGXFLDU\GXW\XQGHUWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\ $FW (5,6$ DVZHOODVFRPPRQODZEUHDFKRIILGXFLDU\GXW\EUHDFKRIFRQWUDFWDQGQHJOLJHQFH2YHUWKH FRXUVH RI GLVFRYHU\ WKH SDUWLHV SURGXFHG DQG UHYLHZHG RYHU SDJHV RI GRFXPHQWV WRRN GHSRVLWLRQV GRPHVWLFDQGIRUHLJQ DQGH[FKDQJHGH[SHUWUHSRUWV7KHFDVHVHWWOHGIRUPLOOLRQ7ULDO ZDVVFKHGXOHGWRFRPPHQFHRQ)HEUXDU\ In re Global Crossing, Ltd. ERISA Litigation, 1R&LY 6'1< .HVVOHU7RSD]VHUYHGDV&R/HDG&RXQVHOLQWKLVQRYHOFRPSOH[DQGKLJKSURILOHDFWLRQZKLFKDOOHJHGWKDW FHUWDLQGLUHFWRUVDQGRIILFHUVRI*OREDO&URVVLQJDIRUPHUKLJKIOLHURIWKHODWH¶VWHFKVWRFNERRP EUHDFKHGWKHLUILGXFLDU\GXWLHVXQGHUWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\$FWRI ³(5,6$´ WR FHUWDLQFRPSDQ\SURYLGHG N SODQVDQGWKHLUSDUWLFLSDQWV7KHVHEUHDFKHVDURVHIURPWKHSODQV¶DOOHJHG LPSUXGHQW LQYHVWPHQW LQ *OREDO &URVVLQJ VWRFN GXULQJ D WLPH ZKHQ GHIHQGDQWV NQHZ RU VKRXOG KDYH NQRZQWKDWWKHFRPSDQ\ZDVIDFLQJLPPLQHQWEDQNUXSWF\$VHWWOHPHQWRISODLQWLIIV¶FODLPVUHVWRULQJ PLOOLRQWRWKHSODQVDQGWKHLUSDUWLFLSDQWVZDVDSSURYHGLQ1RYHPEHU$WWKHWLPHWKLVUHSUHVHQWHG WKHODUJHVWUHFRYHU\UHFHLYHGLQDFRPSDQ\VWRFN(5,6$FODVVDFWLRQ In re AOL Time Warner ERISA Litigation, 1R&9 6'1< .HVVOHU7RSD]ZKLFKVHUYHGDV&R/HDG&RXQVHOLQWKLVKLJKO\SXEOLFL]HG(5,6$ILGXFLDU\EUHDFKFODVV DFWLRQEURXJKWRQEHKDOIRIWKH&RPSDQ\¶V N SODQVDQGWKHLUSDUWLFLSDQWVDFKLHYHGDUHFRUG PLOOLRQ VHWWOHPHQW ZLWK GHIHQGDQWV 7KH PLOOLRQ UHVWRUDWLYH FDVK SD\PHQW WR WKH SODQV DQG FRQFRPLWDQWO\WKHLUSDUWLFLSDQWV UHSUHVHQWVWKHODUJHVWUHFRYHU\IURPDVLQJOHGHIHQGDQWLQDEUHDFKRI ILGXFLDU\DFWLRQUHODWLQJWRPLVPDQDJHPHQWRISODQDVVHWVKHOGLQWKHIRUPRIHPSOR\HUVHFXULWLHV7KH Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 27 of 54 DFWLRQDVVHUWHGFODLPVIRUEUHDFKRIILGXFLDU\GXWLHVSXUVXDQWWRWKH(PSOR\HH5HWLUHPHQW,QFRPH6HFXULW\ $FWRI ³(5,6$´ RQEHKDOIRIWKHSDUWLFLSDQWVLQWKH$2/7LPH:DUQHU6DYLQJV3ODQWKH$2/7LPH :DUQHU7KULIW3ODQDQGWKH7LPH:DUQHU&DEOH6DYLQJV3ODQ FROOHFWLYHO\WKH³3ODQV´ ZKRVHDFFRXQWV SXUFKDVHGDQGRUKHOGLQWHUHVWVLQWKH$2/7:6WRFN)XQGDWDQ\WLPHEHWZHHQ-DQXDU\DQG-XO\ 1DPHGDVGHIHQGDQWVLQWKHFDVHZHUH7LPH:DUQHU DQGLWVFRUSRUDWHSUHGHFHVVRU$2/7LPH :DUQHU VHYHUDORIWKH3ODQV¶FRPPLWWHHVDVZHOODVFHUWDLQFXUUHQWDQGIRUPHURIILFHUVDQGGLUHFWRUVRI WKHFRPSDQ\,Q0DUFKWKH&RXUWODUJHO\GHQLHGGHIHQGDQWV¶PRWLRQWRGLVPLVVDQGWKHSDUWLHVEHJDQ WKHGLVFRYHU\SKDVHRIWKHFDVH,Q-DQXDU\3ODLQWLIIVILOHGDPRWLRQIRUFODVVFHUWLILFDWLRQZKLOHDW WKHVDPHWLPHGHIHQGDQWVPRYHGIRUSDUWLDOVXPPDU\MXGJPHQW7KHVHPRWLRQVZHUHSHQGLQJEHIRUHWKH &RXUWZKHQWKHVHWWOHPHQWLQSULQFLSOHZDVUHDFKHG1RWDEO\DQ,QGHSHQGHQW)LGXFLDU\UHWDLQHGE\WKH 3ODQVWRUHYLHZWKHVHWWOHPHQWLQDFFRUGDQFHZLWK'HSDUWPHQWRI/DERUUHJXODWLRQVDSSURYHGWKHVHWWOHPHQW DQG ILOHG D UHSRUW ZLWK &RXUW QRWLQJ WKDW WKH VHWWOHPHQW LQ DGGLWLRQ WR EHLQJ ³PRUH WKDQ D UHDVRQDEOH UHFRYHU\´IRUWKH3ODQVLV³RQHRIWKHODUJHVW(5,6$HPSOR\HUVWRFNDFWLRQVHWWOHPHQWVLQKLVWRU\´ In re Honeywell International ERISA Litigation, 1R '5' '1- .HVVOHU7RSD]VHUYHGDV/HDG&RXQVHOLQDEUHDFKRIILGXFLDU\GXW\FDVHXQGHU(5,6$DJDLQVW+RQH\ZHOO ,QWHUQDWLRQDO,QFDQGFHUWDLQILGXFLDULHVRI+RQH\ZHOOGHILQHGFRQWULEXWLRQSHQVLRQSODQV7KHVXLWDOOHJHG WKDW +RQH\ZHOO DQG WKH LQGLYLGXDO ILGXFLDU\ GHIHQGDQWV DOORZHG +RQH\ZHOO¶V N SODQV DQG WKHLU SDUWLFLSDQWVWRLPSUXGHQWO\LQYHVWVLJQLILFDQWDVVHWVLQFRPSDQ\VWRFNGHVSLWHWKDWGHIHQGDQWVNQHZRU VKRXOGKDYHNQRZQWKDW+RQH\ZHOO¶VVWRFNZDVDQLPSUXGHQWLQYHVWPHQWGXHWRXQGLVFORVHGZLGHUDQJLQJ SUREOHPV VWHPPLQJ IURP D FRQVXPPDWHG PHUJHU ZLWK $OOLHG 6LJQDODQG D IDLOHG PHUJHU ZLWK *HQHUDO (OHFWULF7KHVHWWOHPHQWRISODLQWLIIV¶FODLPVLQFOXGHGDPLOOLRQSD\PHQWWRWKHSODQVDQGWKHLUDIIHFWHG SDUWLFLSDQWVDQGVLJQLILFDQWVWUXFWXUDOUHOLHIDIIRUGLQJSDUWLFLSDQWVPXFKJUHDWHUOHHZD\LQGLYHUVLI\LQJWKHLU UHWLUHPHQWVDYLQJVSRUWIROLRV Henry v. Sears, et. al., &DVH1R& 1',OO 7KH)LUPVHUYHGDV&R/HDG&RXQVHOIRURQHRIWKHODUJHVWFRQVXPHUFODVVDFWLRQVLQKLVWRU\FRQVLVWLQJRI DSSUR[LPDWHO\ PLOOLRQ 6HDUV FUHGLW FDUG KROGHUV ZKRVH LQWHUHVW UDWHV ZHUH LPSURSHUO\ LQFUHDVHG LQ FRQQHFWLRQZLWKWKHWUDQVIHURIWKHFUHGLWFDUGDFFRXQWVWRDQDWLRQDOEDQN.HVVOHU7RSD]VXFFHVVIXOO\ QHJRWLDWHGDVHWWOHPHQWUHSUHVHQWLQJDSSUR[LPDWHO\RIDOOFODVVPHPEHUV¶GDPDJHVWKHUHE\SURYLGLQJ DWRWDOEHQHILWH[FHHGLQJPLOOLRQ$OOPLOOLRQZDVGLVWULEXWHGDXWRPDWLFDOO\WRWKH&ODVVPHPEHUV ZLWKRXWWKHILOLQJRIDVLQJOHSURRIRIFODLPIRUP,QDSSURYLQJWKHVHWWOHPHQWWKH'LVWULFW&RXUWVWDWHG³ ,DPSOHDVHGWRDSSURYHWKHVHWWOHPHQW,WKLQNLWGRHVWKHEHVWWKDWFRXOGEHGRQHXQGHUWKHFLUFXPVWDQFHV RQEHKDOIRIWKHFODVV7KHOLWLJDWLRQZDVFRPSOH[LQERWKOLDELOLW\DQGGDPDJHVDQGUHTXLUHGERWK SURIHVVLRQDOVNLOODQGVWDQGLQJZKLFKFODVVFRXQVHOGHPRQVWUDWHGLQDEXQGDQFH´ $QWLWUXVW/LWLJDWLRQ In re: Flonase Antitrust Litigation, 1RFY ('3D .HVVOHU7RSD]VHUYHGDVDOHDGFRXQVHORQEHKDOIRIDFODVVRIGLUHFWSXUFKDVHUSODLQWLIIVLQDQDQWLWUXVW DFWLRQEURXJKWSXUVXDQWWR6HFWLRQRIWKH&OD\WRQ$FW86&DOOHJLQJDPRQJRWKHUWKLQJVWKDW GHIHQGDQW*OD[R6PLWK.OLQH *6. YLRODWHG6HFWLRQRIWKH6KHUPDQ$FW86&E\HQJDJLQJLQ ³VKDP´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ase 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 28 of 54 In re: Wellbutrin SR Antitrust Litigation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n re: Metoprolol Succinate End-Payor Antitrust Litigation, 1RFY ''HO .HVVOHU7RSD]ZDVFROHDGFRXQVHOLQDODZVXLWZKLFKDOOHJHGWKDWGHIHQGDQW$VWUD=HQHFDSUHYHQWHGJHQHULF YHUVLRQVRI7RSURO;/IURPHQWHULQJWKHPDUNHWE\DPRQJRWKHUWKLQJVLPSURSHUO\PDQLSXODWLQJSDWHQW ILOLQJVDQGILOLQJEDVHOHVVSDWHQWLQIULQJHPHQWODZVXLWV$VDUHVXOW$VWUD=HQHFDXQODZIXOO\PRQRSROL]HG WKH GRPHVWLF PDUNHW IRU 7RSURO;/ DQG LWV JHQHULF ELRHTXLYDOHQWV $IWHU VHYHQ \HDUV RI OLWLJDWLRQ H[WHQVLYHGLVFRYHU\DQGPRWLRQSUDFWLFHWKHFDVHVHWWOHGIRUPLOOLRQ In re Remeron Antitrust Litigation, 1R&9 '1- .HVVOHU7RSD]ZDV&R/HDG&RXQVHOLQDQDFWLRQZKLFKFKDOOHQJHG2UJDQRQ,QF¶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niversity of Pennsylvania Journal of Labor and Employment Law DQGUHFLSLHQWRIWKH-DPHV:LOVRQ)HOORZVKLS0U$OEHUWDOVRUHFHLYHGD&HUWLILFDWH RI6WXG\LQ%XVLQHVVDQG3XEOLF3ROLF\IURP7KH:KDUWRQ6FKRRODWWKH8QLYHUVLW\RI3HQQV\OYDQLD0U $OEHUWJUDGXDWHGmagna cum laudeZLWKD%DFKHORURI$UWVLQ3ROLWLFDO6FLHQFHIURP(PRU\8QLYHUVLW\ 0U$OEHUWLVOLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLDDQGKDVEHHQDGPLWWHGWRSUDFWLFHEHIRUHWKH8QLWHG 6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI3HQQV\OYDQLD 0U$OEHUWKDVOLWLJDWHGLQVWDWHDQGIHGHUDOFRXUWVDFURVVWKHFRXQWU\DQGKDVUHSUHVHQWHGVWRFNKROGHUVLQ QXPHURXV DFWLRQV WKDW KDYH UHVXOWHG LQ VLJQLILFDQW PRQHWDU\ UHFRYHULHV DQG FRUSRUDWH JRYHUQDQFH LPSURYHPHQWVLQFOXGLQJIn re Sunrise Senior Living, Inc. Deriv. Litig1R ''& Mercier v. Whittle, et al.1R&3 6&&W&RP3OWK-XG&LU In re K-V Pharmaceutical Co. Deriv. Litig. 1R (' 0R In re Progress Software Corp. Deriv. Litig. 1R 68&9 %/6 0DVV6XSHU&W6XIIRON&W\ In re Quest Software, Inc. Deriv. Litig. 1R&& &DO 6XSHU&W2UDQJH&W\ DQGQuaco v. Balakrishnan, et al., 1R 1'&DO 1$8021$$0-('DSDUWQHURIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHRQQHZPDWWHUGHYHORSPHQWZLWK DIRFXVRQDQDO\]LQJVHFXULWLHVFODVVDFWLRQODZVXLWVGLUHFW RURSWRXW DFWLRQVQRQ86VHFXULWLHVDQG VKDUHKROGHUOLWLJDWLRQ6(&ZKLVWOHEORZHUDFWLRQVEUHDFKRIILGXFLDU\GXW\FDVHVDQWLWUXVWPDWWHUVGDWD Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 29 of 54 EUHDFKDFWLRQVDQGRLODQGJDVOLWLJDWLRQ0U$PMHGLVDJUDGXDWHRIWKH9LOODQRYD8QLYHUVLW\6FKRRORI /DZcum laudeDQGKROGVDQXQGHUJUDGXDWHGHJUHHLQEXVLQHVVDGPLQLVWUDWLRQIURP7HPSOH8QLYHUVLW\ cum laude 0U $PMHG LV D PHPEHU RI WKH 'HODZDUH 6WDWH %DU WKH %DU RI WKH &RPPRQZHDOWK RI 3HQQV\OYDQLDWKH1HZ IRU ,QVWLWXWLRQDO ,QYHVWRUV LQ $PVWHUGDP 1HWKHUODQGV DQG WKH (XURSHDQ ,QYHVWPHQW 5RXQGWDEOH LQ %DUFHORQD6SDLQ '$9,'$%2&,$1DSDUWQHURIWKH)LUPIRFXVHVKLVSUDFWLFHRQZKLVWOHEORZHUUHSUHVHQWDWLRQDQG)DOVH &ODLPV$FWOLWLJDWLRQ0U%RFLDQUHFHLYHGKLVODZGHJUHHIURPWKH8QLYHUVLW\RI9LUJLQLD6FKRRORI/DZ DQGJUDGXDWHGcum laude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¶$1&21$DSDUWQHURIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHLQWKHVHFXULWLHVOLWLJDWLRQDQG OHDGSODLQWLIIGHSDUWPHQWVRIWKH)LUP0U'¶$QFRQDUHFHLYHGKLV-'magna cum laudeIURPWKH7HPSOH 8QLYHUVLW\%HDVOH\6FKRRORI/DZLQZKHUHKHVHUYHGRQWKH7HPSOH/DZ5HYLHZDQGDVSUHVLGHQW RIWKH0RRW&RXUW+RQRUV6RFLHW\DQGJUDGXDWHGZLWKKRQRUVIURP:HVOH\DQ8QLYHUVLW\+HLVOLFHQVHGWR SUDFWLFHLQ3HQQV\OYDQLDDQG1HZ-HUVH\ %HIRUHMRLQLQJWKH)LUPLQKHVHUYHGDVDODZFOHUNWRWKH+RQRUDEOH&\QWKLD05XIHRIWKH8QLWHG 6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI3HQQV\OYDQLD -21$7+$15'$9,'621DSDUWQHURIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHLQWKHDUHDRIVKDUHKROGHU OLWLJDWLRQ0U'DYLGVRQFXUUHQWO\FRQVXOWVZLWKLQVWLWXWLRQDOLQYHVWRUVIURPDURXQGWKHZRUOGLQFOXGLQJ SXEOLFSHQVLRQIXQGVDWWKHVWDWHFRXQW\DQGPXQLFLSDOOHYHODVZHOODV7DIW+DUWOH\IXQGVDFURVVDOOWUDGHV ZLWKUHJDUGWRWKHLULQYHVWPHQWULJKWVDQGUHVSRQVLELOLWLHV0U'DYLGVRQDVVLVWV)LUPFOLHQWVLQHYDOXDWLQJ DQGDQDO\]LQJRSSRUWXQLWLHVWRWDNHDQDFWLYHUROHLQVKDUHKROGHUOLWLJDWLRQ:LWKDQLQFUHDVLQJO\FRPSOH[ VKDUHKROGHU OLWLJDWLRQ ODQGVFDSH WKDW LQFOXGHV WUDGLWLRQDO VHFXULWLHV FODVV DFWLRQV VKDUHKROGHU GHULYDWLYH DFWLRQVDQGWDNHRYHUDFWLRQVQRQ86RSWLQDFWLRQVDQGILGXFLDU\DFWLRQVWRQDPHDIHZ0U'DYLGVRQ LVIUHTXHQWO\FDOOHGXSRQE\KLVFOLHQWVWRKHOSHQVXUHWKH\DUHWDNLQJDQDFWLYHUROHZKHQWKHLULQYROYHPHQW FDQPDNHDGLIIHUHQFHDQGWRHQVXUHWKH\DUHQRWOHDYLQJPRQH\RQWKHWDEOH 0U'DYLGVRQKDVEHHQLQYROYHGLQWKHIROORZLQJVXFFHVVIXOO\FRQFOXGHGVKDUHKROGHUOLWLJDWLRQPDWWHUV City of Daytona Beach Police and Fire Pension Fund v. ExamWorks Group, Inc.&$1R9&/ 'HO&K PLOOLRQVHWWOHPHQWLQFOXGLQJPLOOLRQIXQGHGE\RXWVLGHOHJDODGYLVRU In re MGM Mirage Securities Litigation&DVH1RFY*019&) '1HY PLOOLRQVHWWOHPHQW In re Weatherford International Securities Litigation 1R 6'1< PLOOLRQ VHWWOHPHQW Beaver County Employees’ Retirement Fund, et al. v. Tile Shop Holdings, Inc., et al., 1R&9 $'071/ '0LQQ PLOOLRQVHWWOHPHQW Bucks County Employees Retirement Fund vs. Hillshire Brands Co 1R & 0G &LU &W $OWHUQDWLYH GHDO VWUXFN SD\LQJDSUHPLXPWR VWRFNKROGHUV DQGCity of Sunrise Firefighters’ Retirement Fund v. Schaeffer1R 'HO&K&W ,QYDOLGE\ODZVUHSHDOHGERDUGGLVFORVHGWKDWLWXQODZIXOO\DGRSWHGWKHE\ODZV Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 32 of 54 0U'DYLGVRQLVDIUHTXHQWOHFWXUHURQVKDUHKROGHUOLWLJDWLRQFRUSRUDWHJRYHUQDQFHILGXFLDU\LVVXHVIDFLQJ LQVWLWXWLRQDOLQYHVWRUVLQYHVWRUDFWLYLVPDQGWKHUHFRYHU\RILQYHVWPHQWORVVHVVSHDNLQJRQWKHVHVXEMHFWV DW FRQIHUHQFHV DURXQG WKH ZRUOG HDFK \HDU LQFOXGLQJ WKH 1DWLRQDO &RQIHUHQFH RQ 3XEOLF (PSOR\HH 5HWLUHPHQW6\VWHPV¶$QQXDO&RQIHUHQFH ([KLELWLRQWKH,QWHUQDWLRQDO)RXQGDWLRQRI(PSOR\HH%HQHILW 3ODQV $QQXDO &RQIHUHQFH WKH &DOLIRUQLD $VVRFLDWLRQ RI 3XEOLF 5HWLUHPHQW 6\VWHPV $GPLQLVWUDWRUV 5RXQGWDEOHWKH)ORULGD3XEOLF3HQVLRQ7UXVWHHV$VVRFLDWLRQ7UXVWHH6FKRROVDQG:DOO6WUHHW3URJUDPWKH 3HQQV\OYDQLD$VVRFLDWLRQRI3XEOLF(PSOR\HHV5HWLUHPHQW6\VWHPV6SULQJ)RUXPWKH)LGXFLDU\,QYHVWRUV 6\PSRVLXPWKH860DUNHWV¶,QVWLWXWLRQDO,QYHVWRU)RUXPDQG7KH(YROYLQJ)LGXFLDU\2EOLJDWLRQVRI 3HQVLRQ3ODQV0U'DYLGVRQLVDOVRDPHPEHURIQXPHURXVSURIHVVLRQDODQGHGXFDWLRQDORUJDQL]DWLRQV LQFOXGLQJWKH1DWLRQDO$VVRFLDWLRQRI3XEOLF3HQVLRQ$WWRUQH\V 0U'DYLGVRQLVDJUDGXDWHRI7KH*HRUJH:DVKLQJWRQ8QLYHUVLW\ZKHUHKHUHFHLYHGKLV%DFKHORURI$UWV summa cum laude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¶VOHDGSODLQWLIIOLWLJDWLRQSUDFWLFHJURXS0U'HJQDQKDVKHOSHGVHFXUHWKH)LUP¶V FOLHQWV¶DSSRLQWPHQWVDVOHDGSODLQWLIIVLQIn re HP Sec. Litig.1RFY:/ 1' &DO0DU In re JPMorgan Chase & Co. Sec. Litig.1RFY 6'1< Freedman v. St. Jude Medical, Inc., et al.1RFY '0LQQ United Union of Roofers, Waterproofers & Allied Workers Local Union No. 8 v. Ocwen Fin. Corp1R&LY :3'Ϳ:/ 6')OD 1RY Louisiana Municipal Police Employees’ Ret. Sys. v. Green Mountain Coffee Roasters, Inc., et al.1RFY86'LVW/(;,6 '9W$SU DQGIn re Longtop Fin. Techs. Ltd. Sec. Litig. 1R FY 86 'LVW /(;,6 6'1< 2FW $GGLWLRQDO UHSUHVHQWDWLYHPDWWHUVLQFOXGHIn re Bank of New York Mellon Corp. Foreign Exchange Transactions Litig 1RPG 6'1< PLOOLRQVHWWOHPHQW DQGPolicemen’s Annuity and Benefit Fund of the City of Chicago, et al. v. Bank of America, NA, et al1RFY 6'1< PLOOLRQVHWWOHPHQW (/,5*5((167(,1LVPDQDJLQJSDUWQHURIWKH)LUP¶V6DQ)UDQFLVFRRIILFHDQGDPHPEHURIWKH)LUP¶V IHGHUDOVHFXULWLHVOLWLJDWLRQSUDFWLFHJURXS0U*UHHQVWHLQFRQFHQWUDWHVKLVSUDFWLFHRQIHGHUDOVHFXULWLHV ODZYLRODWLRQVDQGZKLWHFROODUIUDXGLQFOXGLQJYLRODWLRQVRIWKH6HFXULWLHV$FWRIDQGWKH6HFXULWLHV ([FKDQJH$FWRI0U*UHHQVWHLQUHFHLYHGKLV-'IURP6DQWD&ODUD8QLYHUVLW\6FKRRORI/DZLQ DQGKLV0%$IURP6DQWD&ODUD¶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¶V,QWHUQDWLRQDO7D[DQG /HJDO6HUYLFHVGLYLVLRQDQGZRUNRQWKHWUDGLQJIORRURIWKH&KLFDJR0HUFDQWLOH([FKDQJH6 3 IXWXUHVDQGRSWLRQVGLYLVLRQ Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 33 of 54 0U*UHHQVWHLQKDVEHHQLQYROYHGLQGR]HQVRIKLJKSURILOHVHFXULWLHVIUDXGDFWLRQVUHVXOWLQJLQPRUHWKDQ ELOOLRQLQUHFRYHULHVIRUFOLHQWVDQGLQYHVWRUVLQFOXGLQJNieman v. Duke Energy Corp86'LVW /(;,6 :'1& PLOOLRQUHFRYHU\ In re HP Secs. Litig86'LVW/(;,6 1'&DO PLOOLRQUHFRYHU\ In re VeriFone Holdings, Inc. Sec. Litig)G 1'&DO PLOOLRQUHFRYHU\ In reAOL Time WarnerSec. Litig. State Opt-Out Actions Regents of the Univ. of Cal. v. Parsons &DO6XSHU&W Ohio Pub. Emps. Ret. Sys. v. Parsons )UDQNOLQ&RXQW\&WRI&RPPRQ 3OHDV PLOOLRQ LQ WRWDO UHFRYHULHV Minneapolis Firefighters Relief Ass'n v. Medtronic, Inc )5' '0LQQ PLOOLRQUHFRYHU\ In re MGM Mirage Secs. Litig86'LVW/(;,6 '1HY PLOOLRQUHFRYHU\ Dobina v. Weatherford Int'l)6XSSG 6'1< PLOOLRQUHFRYHU\ In re Sunpower Secs. Litig86'LVW/(;,6 1'&DO PLOOLRQUHFRYHU\ In re Am. Serv. Group, Inc86'LVW/(;,6 0'7HQQ PLOOLRQ UHFRYHU\ In re Terayon Communs. Sys. Sec. Litig86'LVW/(;,6 1'&DO PLOOLRQ UHFRYHU\ In re Nuvelo, Inc. Sec. Litig)6XSSG 1'&DO PLOOLRQUHFRYHU\ In re Endocare, Inc. Sec. Litig1R&9'7 &7; &'&DO PLOOLRQUHFRYHU\ Greater Pa. Carpenters Pension Fund v. Whitehall Jewellers, Inc 86 'LVW /(;,6 1' ,OO PLOOLRQUHFRYHU\ In re Am. Apparel, Inc. S'holder Litig86'LVW/(;,6 &'&DO PLOOLRQUHFRYHU\ In re Purus6HF/LWLJ1R&-) 56 1'&DO PLOOLRQUHFRYHU\ 6($10+$1'/(5DSDUWQHURIWKH)LUPDQGPHPEHURI.HVVOHU7RSD]¶V0DQDJHPHQW&RPPLWWHH FXUUHQWO\ FRQFHQWUDWHV KLV SUDFWLFH RQ DOO DVSHFWV RI QHZ PDWWHU GHYHORSPHQW IRU WKH )LUP LQFOXGLQJ VHFXULWLHV FRQVXPHU DQG LQWHOOHFWXDO SURSHUW\0U +DQGOHU HDUQHG KLV -XULV 'RFWRU cum laude IURP 7HPSOH 8QLYHUVLW\ 6FKRRO RI /DZ DQG UHFHLYHG KLV %DFKHORU RI $UWV GHJUHH IURP &ROE\ &ROOHJH JUDGXDWLQJwith distinction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ase 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 34 of 54 0U -DUYLV KDG D PDMRU UROH LQ Oxford Health Plans Securities Litigation, DaimlerChrysler Securities LitigationDQGTyco Securities LitigationDOORIZKLFKZHUHDPRQJWKHWRSWHQVHFXULWLHVVHWWOHPHQWVLQ86 KLVWRU\DWWKHWLPHWKH\ZHUHUHVROYHGDVZHOODVDODUJHQXPEHURIRWKHUVHFXULWLHVFDVHVRYHUWKHSDVW \HDUV+HKDVDOVREHHQLQYROYHGLQDQXPEHURIDFWLRQVEHIRUHWKH'HODZDUH&KDQFHU\&RXUWLQFOXGLQJD 'HODZDUHDSSUDLVDOFDVHWKDWUHVXOWHGLQDIDYRUDEOHGHFLVLRQIRUWKHILUP¶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¶V6DQ)UDQFLVFRRIILFHIRFXVHVKHUSUDFWLFHRQVHFXULWLHV OLWLJDWLRQ0V-RRVWUHFHLYHGKHUODZGHJUHHcum laudeIURP7HPSOH8QLYHUVLW\%HDVOH\6FKRRORI/DZ ZKHUHVKHZDVWKH6SHFLDO3URMHFWV(GLWRUIRUWKHTemple International and Comparative Law Journal. 0V -RRVWHDUQHGKHUXQGHUJUDGXDWHGHJUHHZLWKKRQRUVIURP:DVKLQJWRQ8QLYHUVLW\LQ6W/RXLV6KHLVOLFHQVHG WRSUDFWLFHLQ3HQQV\OYDQLDDQG&DOLIRUQLDDQGLVDGPLWWHGWRSUDFWLFHEHIRUHWKH8QLWHG6WDWHV&RXUWVRI $SSHDOVIRUWKH6HFRQG)RXUWK1LQWKDQG(OHYHQWK&LUFXLWVDQGWKH8QLWHG6WDWHV'LVWULFW&RXUWVIRUWKH (DVWHUQ'LVWULFWRI3HQQV\OYDQLDWKH1RUWKHUQ'LVWULFWRI&DOLIRUQLDDQGWKH6RXWKHUQ'LVWULFWRI&DOLIRUQLD 0V-RRVWKDVUHSUHVHQWHGLQVWLWXWLRQDOLQYHVWRUVLQQXPHURXVVHFXULWLHVIUDXGFODVVDFWLRQVLQFOXGLQJIn re Bank of America Corp. Securities, Derivative, and Employee Retirement Income Security Act (ERISA) Litigation, 1R0'/ 6'1< VHWWOHGELOOLRQ In re Citigroup, Inc. Bond Litig.1R &LY 6+6 6'1< VHWWOHGPLOOLRQ Luther, et al. v. Countrywide Financial Corp.1R %& VHWWOHG PLOOLRQ In re JPMorgan & Co. Securities Litigation, 1R FY 6'1< VHWWOHGPLOOLRQ Minneapolis Firefighters’ Relief Association v. Medtronic, Inc., 1R FY3$0$-% '0LQQ VHWWOHGPLOOLRQ In re MGM Mirage Securities Litigation, 1R FY*019&) ' 1HY VHWWOHG PLOOLRQ DQG In re Weatherford Int’l Securities Litigation1RFY/$.-&) 6'1< VHWWOHGPLOOLRQ 67$&(<.$3/$1DSDUWQHULQWKH)LUP¶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ase 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 35 of 54 '$9,' .(66/(5 D SDUWQHU RI WKH )LUP PDQDJHV WKH )LUP¶V LQWHUQDWLRQDOO\ UHFRJQL]HG VHFXULWLHV GHSDUWPHQW0U.HVVOHUJUDGXDWHGZLWKGLVWLQFWLRQIURPWKH(PRU\6FKRRORI/DZDIWHUUHFHLYLQJKLV XQGHUJUDGXDWH %6%$ GHJUHH IURP $PHULFDQ 8QLYHUVLW\ 0U .HVVOHU LV OLFHQVHG WR SUDFWLFH ODZ LQ 3HQQV\OYDQLD1HZ-HUVH\DQG1HZ $VSDUWRIKLVILGXFLDU\OLWLJDWLRQSUDFWLFH0U0HOW]HUZDVDFWLYHO\LQYROYHGLQDFWLRQVUHODWHGWRORVVHV VXVWDLQHGLQVHFXULWLHVOHQGLQJSURJUDPVLQFOXGLQJBd. of Trustees of the AFTRA Ret. Fund v. JPMorgan Chase Bank, 1R 6'1< PLOOLRQVHWWOHPHQW DQGCompSource Okla. v. BNY Mellon, 1R ('2. PLOOLRQVHWWOHPHQW ,QDGGLWLRQ0U0HOW]HUUHSUHVHQWHGDSXEOLFO\WUDGHG FRPSDQ\LQDODUJHDUELWUDWLRQDJDLQVW$,*,QFUHODWHGWRVHFXULWLHVOHQGLQJORVVHVTransatlantic Holdings, Inc. v. AIG, 1R7 $$$ PLOOLRQVHWWOHPHQW $IUHTXHQWOHFWXUHURQ(5,6$OLWLJDWLRQ0U0HOW]HULVDPHPEHURIWKH$%$DQGKDVEHHQUHFRJQL]HGE\ QXPHURXVFRXUWVIRUKLVDELOLW\DQGH[SHUWLVHLQWKLVFRPSOH[DUHDRIWKHODZ0U0HOW]HULVDOVRDSDWURQ PHPEHURI3XEOLF-XVWLFHDQGDPHPEHURIWKH&ODVV$FWLRQ3UHVHUYDWLRQ&RPPLWWHH 0U 0HOW]HU DOVR PDQDJHV WKH )LUP¶V $QWLWUXVW DQG 3KDUPDFHXWLFDO 3ULFLQJ *URXSV +HUH 0U 0HOW]HU IRFXVHV RQ KHOSLQJ FOLHQWV WKDW KDYH EHHQ LQMXUHG E\ DQWLFRPSHWLWLYH DQG XQODZIXO EXVLQHVV SUDFWLFHV LQFOXGLQJZLWKUHVSHFWWRRYHUFKDUJHVUHODWHGWRSUHVFULSWLRQGUXJDQGRWKHUKHDOWKFDUHH[SHQGLWXUHV0U 0HOW]HUVHUYHGDVFROHDGFRXQVHOIRUGLUHFWSXUFKDVHUVLQWKHFlonase Antitrust Litigation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emple Political and Civil Rights Law ReviewDQGWKHUHFLSLHQWRI WKH5D\QHV0F&DUW\%LQGHU5RVVDQG0XQG\*UDGXDWLRQ3UL]HIRUVFKRODUO\DFKLHYHPHQWLQWKHODZ+H LVDGPLWWHGWRSUDFWLFHEHIRUHWKHVWDWHFRXUWVRI1HZ 3ULRUWRMRLQLQJWKH)LUP0U0XVWRNRIISUDFWLFHGDW:HLO*RWVKDO 0DQJHV//3LQ1HZ PLOOLRQ+HDOVROLWLJDWHGIn re GFI Group, Inc. Stockholder Litig.&RQVRO&$1R9&/ 'HO&K PLOOLRQFDVKVHWWOHPHQW In re Globe Specialty Metals, Inc. Stockholders Litig.&RQVRO&$1R 9&* 'HO&K PLOOLRQVHWWOHPHQW DQGIn re Harleysville Mutual &&33KLOD&QW\ DQ H[SHGLWHG PHUJHU OLWLJDWLRQ FDVH FKDOOHQJLQJ +DUOH\VYLOOH¶V DJUHHPHQW WR VHOO WKH FRPSDQ\ WR 1DWLRQZLGH ,QVXUDQFH &RPSDQ\ ZKLFK OHDG WR D PLOOLRQ FDVKSD\PHQW WR SROLF\KROGHUV 3ULRU WR MRLQLQJWKH)LUP0U5HOLIRUGZDVDQDVVRFLDWHLQWKHODERUDQGHPSOR\PHQWSUDFWLFHJURXSRI0RUJDQ /HZLV %RFNLXV//37KHUH0U5HOLIRUGFRQFHQWUDWHGKLVSUDFWLFHRQHPSOR\HHEHQHILWVILGXFLDU\DQG ZRUNSODFHGLVFULPLQDWLRQOLWLJDWLRQ /(( ' 58'< D SDUWQHU RI WKH )LUP PDQDJHV WKH )LUP¶V PHUJHUV DQG DFTXLVLWLRQ DQG VKDUHKROGHU GHULYDWLYHOLWLJDWLRQ0U5XG\UHFHLYHGKLVODZGHJUHHIURP)RUGKDP8QLYHUVLW\DQGKLVXQGHUJUDGXDWH GHJUHHcum laudeIURPWKH8QLYHUVLW\RI3HQQV\OYDQLD0U5XG\LVOLFHQVHGWRSUDFWLFHLQ3HQQV\OYDQLD DQG1HZ FKDQJHV,QKLVFDSDFLW\DVWKH)LUP¶VGHSDUWPHQWOHDGHURIFDVHLQLWLDWLRQDQGGHYHORSPHQW0U7RSD]KDV EHHQLQYROYHGLQPDQ\RIWKH)LUP¶VPRVWSURPLQHQWFDVHVLQFOXGLQJIn re Initial Public Offering Sec. Litig.0DVWHU)LOH1R0& 6$6 6'1<'HF Wanstrath v. Doctor R. Crants, et al. 1R 7HQQ&KDQ&WWK-XGLFLDO'LVWULFW In re Tyco International, Ltd. Sec. Lit. 1R% '1+ VHWWOHG²ELOOLRQ DQGYLUWXDOO\DOORIWKHRSWLRQVEDFNGDWLQJFDVHV LQZKLFKWKH)LUPLVVHUYLQJDV/HDGRU&R/HDG&RXQVHO0U7RSD]KDVSOD\HGDQLPSRUWDQWUROHLQWKH )LUP¶VIRFXVRQUHPHG\LQJEUHDFKHVRIILGXFLDU\GXWLHVE\FRUSRUDWHRIILFHUVDQGGLUHFWRUVDQGLPSURYLQJ FRUSRUDWHJRYHUQDQFHSUDFWLFHVRIFRUSRUDWHGHIHQGDQWV 0(/,66$/752871(5DSDUWQHURIWKH)LUPFRQFHQWUDWHVKHUSUDFWLFHRQQHZPDWWHUGHYHORSPHQW ZLWKDVSHFLILFIRFXVRQDQDO\]LQJVHFXULWLHVFODVVDFWLRQODZVXLWVDQWLWUXVWDFWLRQVDQGFRPSOH[FRQVXPHU DFWLRQV0V7URXWQHULVDOVRDPHPEHURIWKH)LUP¶VOHDGSODLQWLIIOLWLJDWLRQSUDFWLFHJURXS0V7URXWQHU UHFHLYHGKHUODZGHJUHH2UGHURIWKH&RLIcum laudeIURPWKH8QLYHUVLW\RI3HQQV\OYDQLD/DZ6FKRROLQ DQGKHU%DFKHORURI$UWV3KL%HWD.DSSDmagna cum laudeIURP6\UDFXVH8QLYHUVLW\LQ0V 7URXWQHULVOLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLD1HZ 0U :KLWPDQ KDV UHSUHVHQWHG LQVWLWXWLRQDO LQYHVWRUV LQ REWDLQLQJ VXEVWDQWLDO UHFRYHULHV LQ QXPHURXV VHFXULWLHV IUDXG FODVV DFWLRQV LQFOXGLQJ L In re Bank of America Securities Litigation D FDVH ZKLFK UHSUHVHQWVWKHVL[WKODUJHVWUHFRYHU\IRUVKDUHKROGHUVXQGHUWKHIHGHUDOVHFXULWLHVODZV VHWWOHG ELOOLRQ LL In re Royal Ahold Sec. Litig.1RPG '0G ELOOLRQVHWWOHPHQW LLL In re DaimlerChrysler AG Sec. Litig.1R ''HO PLOOLRQVHWWOHPHQW LY In re Dollar General, Inc. Sec. Litig.1RFY 0'7HQQ PLOOLRQVHWWOHPHQW DQG Y In re JPMorgan & Co. Securities Litigation, 1R FY 6'1< PLOOLRQ VHWWOHPHQW 0U :KLWPDQKDVDOVRREWDLQHGIDYRUDEOHUHFRYHULHVIRULQVWLWXWLRQDOLQYHVWRUVSXUVXLQJGLUHFWVHFXULWLHVIUDXG FODLPVLQFOXGLQJFDVHVDJDLQVW0HUFN &R,QF4ZHVW&RPPXQLFDWLRQV,QWHUQDWLRQDO,QFDQG0HUULOO /\QFK &R,QF,QDGGLWLRQ0U:KLWPDQUHSUHVHQWHGDSXEOLFO\WUDGHGFRPSDQ\LQDODUJHDUELWUDWLRQ DJDLQVW $,* ,QF UHODWHG WR VHFXULWLHV OHQGLQJ ORVVHV Transatlantic Holdings, Inc. v. AIG, 1R 7 $$$ PLOOLRQVHWWOHPHQW 52%,1 :,1&+(67(5 D SDUWQHU RI WKH )LUP FRQFHQWUDWHG KHU SUDFWLFH LQ WKH DUHDV RI VHFXULWLHV OLWLJDWLRQDQGOHDGSODLQWLIIOLWLJDWLRQZKHQVKHMRLQHGWKH)LUP3UHVHQWO\0V:LQFKHVWHUFRQFHQWUDWHVKHU SUDFWLFHLQWKHDUHDRIVKDUHKROGHUGHULYDWLYHDFWLRQV0V:LQFKHVWHUHDUQHGKHU-XULV'RFWRUGHJUHHIURP 9LOODQRYD8QLYHUVLW\6FKRRORI/DZDQGUHFHLYHGKHU%DFKHORURI6FLHQFHGHJUHHLQ)LQDQFHIURP6W -RVHSK¶V8QLYHUVLW\0V:LQFKHVWHULVOLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLDDQG1HZ-HUVH\ 3ULRUWRMRLQLQJ.HVVOHU7RSD]0V:LQFKHVWHUVHUYHGDVDODZFOHUNWRWKH+RQRUDEOH5REHUW).HOO\LQ WKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI3HQQV\OYDQLD 0V :LQFKHVWHU KDV VHUYHG DV OHDG FRXQVHO LQ QXPHURXV KLJKSURILOH GHULYDWLYH DFWLRQV UHODWLQJ WR WKH EDFNGDWLQJRIVWRFNRSWLRQVLQFOXGLQJIn re Eclipsys Corp. Derivative Litigation&DVH1R&LY 0,''/(%522.6 6')OD In re Juniper Derivative Actions, &DVH1RFY-: 1'&DO In re McAfee Derivative Litigation, 0DVWHU)LOH1RFY-) 1'&DO In re Quest Software, Inc. Derivative Litigation, &RQVROLGDWHG&DVH1R&& &DO6XSHU&W2UDQJH&RXQW\ DQGIn re Sigma Designs, Inc. Derivative Litigation, 0DVWHU)LOH1R&50: 1'&DO 6HWWOHPHQWVRI WKHVH DQG VLPLODU DFWLRQV KDYH UHVXOWHG LQ VLJQLILFDQW PRQHWDU\ UHWXUQV DQG FRUSRUDWH JRYHUQDQFH LPSURYHPHQWVIRUWKRVHFRPSDQLHVZKLFKLQWXUQJUHDWO\EHQHILWVWKHLUSXEOLFVKDUHKROGHUV (5,&/=$*$5DSDUWQHURIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHLQWKHDUHDRIVKDUHKROGHUGHULYDWLYH OLWLJDWLRQ0U=DJDUUHFHLYHGKLVODZGHJUHHIURPWKH8QLYHUVLW\RI0LFKLJDQ/DZ6FKRROcum laude ZKHUH KH ZDV DQ $VVRFLDWH (GLWRU RI WKH Michigan Law Review DQG KLV XQGHUJUDGXDWH GHJUHH IURP :DVKLQJWRQ8QLYHUVLW\LQ6W/RXLV.+HLVDGPLWWHGWRSUDFWLFHLQ3HQQV\OYDQLD&DOLIRUQLDDQG1HZ OLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLDDQGWKH6WDWHRI/RXLVLDQDDQGKDVEHHQDGPLWWHGWRSUDFWLFHEHIRUH VHYHUDOFRXUWVLQFOXGLQJWKH8QLWHG6WDWHV&RXUWRI$SSHDOVIRUWKH7KLUG&LUFXLW 0U =LHJOHU KDV UHSUHVHQWHG LQYHVWRUV FRQVXPHUV DQG RWKHU FOLHQWV LQ REWDLQLQJ VXEVWDQWLDO UHFRYHULHV LQFOXGLQJ In re Flonase Antitrust Litigation; In re Wellbutrin SR Antitrust Litigation; In re Modafinil Antitrust Litigation; In re Guidant Corp. Implantable Defibrillators Products Liability Litigation DJDLQVW PDQXIDFWXUHUVRIGHIHFWLYHPHGLFDOGHYLFHV²SDFHPDNHUVLPSODQWDEOHGHILEULOODWRUV²VHHNLQJFRVWVRI UHPRYDO DQG UHSODFHPHQW DQG In re Actiq Sales and Marketing Practices Litigation UHJDUGLQJ GUXJ PDQXIDFWXUHU¶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avid H. Luther, et al., v. Countrywide Financial Corp., et. alFY &'&DO VHWWOHGPLOOLRQ In re Pfizer Sec. LitigFY 6'1< VHWWOHGPLOOLRQ In re Tenet Healthcare Corp&9 &'&DO VHWWOHG² PLOOLRQ In re JPMorgan Sec. Litig FY 6'1< VHWWOHG PLOOLRQ In re Computer Associates Sec. Litig. 1R &9 ('1< VHWWOHG ² PLOOLRQ In re Hewlett-Packard Sec. Litig.FY 1'&DO VHWWOHGPLOOLRQ DQGIn re Medtronic Inc. Sec. LitigFY '0LQQ VHWWOHGPLOOLRQ $QG\¶V H[WHQVLYH FRXUWURRP H[SHULHQFH VHUYHV KLV FOLHQWV ZHOO LQ WULDO VLWXDWLRQV DV ZHOO DV SUHWULDO SURFHHGLQJV DQG VHWWOHPHQW QHJRWLDWLRQV +H VHUYHG DV RQH RI WKH OHDG SODLQWLIIV¶ DWWRUQH\V LQ WKH RQO\ VHFXULWLHVIUDXGFODVVDFWLRQDULVLQJRXWRIWKHILQDQFLDOFULVLVWREHWULHGWRDMXU\YHUGLFWKDVKDQGOHGD 'DXEHUWWULDOLQWKH86'LVWULFW&RXUWIRUWKH6RXWKHUQ'LVWULFWRI1HZ 0V(QFNKDVEHHQLQYROYHGLQGRFXPHQWLQJDQGREWDLQLQJWKHUHTXLUHGFRXUWDSSURYDOIRUPDQ\RIWKH ILUP¶VODUJHVWDQGPRVWFRPSOH[VHFXULWLHVFODVVDFWLRQVHWWOHPHQWVLQFOXGLQJIn re Bank of America Corp. Securities, Derivative, and Employee Retirement Income Security Act (ERISA) Litigation, 0DVWHU)LOH1R 0'/ 6'1< VHWWOHGELOOLRQ Luther v. Countrywide Financial Corp., et al.1R FY053 0$1[ &'&DO VHWWOHGPLOOLRQ In re: Lehman Brothers Securities and ERISA Litigation0DVWHU)LOH1R0' /$. 6'1< VHWWOHG DQGIn re Satyam Computer Services, Ltd. Securities Litigation 1R 0' %6- 6'1< VHWWOHG PLOOLRQ (5,&.*(5$5'FRXQVHOWRWKH)LUPLVDIRUPHUIHGHUDOSURVHFXWRUDQGH[SHULHQFHGWULDOODZ\HUZKRVH SUDFWLFHIRFXVHVRQVHFXULWLHVIUDXGDQWLWUXVWDQGFRQVXPHUSURWHFWLRQOLWLJDWLRQ(ULFUHFHLYHGKLVODZ GHJUHHIURPWKH8QLYHUVLW\RI9LUJLQLD6FKRRORI/DZHDUQLQJ2UGHURIWKH&RLIKRQRUVZKLOHFRPSOHWLQJ DPDVWHU¶VGHJUHHLQLQWHUQDWLRQDOHFRQRPLFVDWWKH-RKQV+RSNLQV8QLYHUVLW\ %HIRUH MRLQLQJ .HVVOHU 7RSD] (ULF VHUYHG DQ $VVLVWDQW 'LVWULFW $WWRUQH\ DW WKH 0DQKDWWDQ 'LVWULFW $WWRUQH\¶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n re Merck & Co., Inc. Securities, Derivative & ERISA LitigationPLOOLRQIn re Colgate-Palmolive Co. ERISA LitigationPLOOLRQDQGIn re National City ERISA Litigation PLOOLRQ '211$ 6,(*(/ 02))$ &RXQVHO WR WKH )LUP FRQFHQWUDWHV KHU SUDFWLFH LQ WKH DUHD RI FRQVXPHU SURWHFWLRQOLWLJDWLRQ0V6LHJHO0RIIDUHFHLYHGKHUODZGHJUHHZLWKKRQRUVIURP*HRUJHWRZQ8QLYHUVLW\ /DZ&HQWHULQ0D\DQGDPDVWHUVGHJUHHLQ3XEOLF$GPLQLVWUDWLRQIURP5XWJHUVWKH6WDWH8QLYHUVLW\ RI1HZ-HUVH\*UDGXDWH6FKRRO&DPGHQLQ-DQXDU\6KHUHFHLYHGKHUXQGHUJUDGXDWHGHJUHHcum laude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ase 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 43 of 54 0V6LHJHO0RIIDVHUYHGDVFROHDGFRXQVHOIRUWKHFODVVLQRobinson v. Thorn Americas, Inc./ /DZ'LY DFDVHWKDWUHVXOWHGLQDVLJQLILFDQWPRQHWDU\UHFRYHU\IRUFRQVXPHUVDQGFKDQJHVWRUHQW WRRZQFRQWUDFWVLQ1HZ-HUVH\0V6LHJHO0RIIDZDVDOVRFRXQVHOLQMuhammad v. County Bank of Rehoboth Beach, Delaware, 1- 866XS&WFHUWGHQLHG6&W LQZKLFK WKH1HZ-HUVH\6XSUHPH&RXUWVWUXFNDFODVVDFWLRQEDQLQDFRQVXPHUDUELWUDWLRQFRQWUDFW6KHKDVVHUYHG DVFODVVFRXQVHOUHSUHVHQWLQJFRQVXPHUVSUHVVLQJ7,/$FODLPVHJCannon v. Cherry Hill Toyota, Inc., )5' '1- DQGDal Ponte v. Am. Mortg. Express Corp.&9 '1- DQGKDVSXUVXHGDZLGHYDULHW\RIFODLPVWKDWLPSDFWFRQVXPHUVDQGLQGLYLGXDOVLQFOXGLQJWKRVHLQYROYLQJ SUHGDWRU\ DQG VXESULPH OHQGLQJ PDQGDWRU\ DUELWUDWLRQ FODXVHV SULFH IL[LQJ LPSURSHU PHGLFDO ELOOLQJ SUDFWLFHVWKHPDUNHWLQJRIOLJKWFLJDUHWWHVDQGHPSOR\HHFRPSHQVDWLRQ0V6LHJHO0RIID¶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¶VVHFXULWLHVFODVVDFWLRQ WULDOV LQFOXGLQJ PRVW UHFHQWO\ VHUYLQJ DV SDUW RI WKH WULDO WHDP LQ WKH /RQJWRS )LQDQFLDO 7HFKQRORJLHV VHFXULWLHVFODVVDFWLRQWULDOWKDWUHVXOWHGLQDMXU\YHUGLFWRQOLDELOLW\DQGGDPDJHVLQIDYRURILQYHVWRUV0V 1HZFRPHUEHJDQKHUOHJDOFDUHHUZLWKWKH)LUPLQ3ULRUWRMRLQLQJWKH)LUPVKHZDVDVXPPHUODZ FOHUNIRUWKH+RQ-RKQ7-.HOO\-URIWKH3HQQV\OYDQLD6XSHULRU&RXUW 0V1HZFRPHU¶VUHSUHVHQWDWLYHFDVHVLQFOXGHIn re Longtop Financial Technologies Ltd. Sec. Litig1R FY 6$6 6'1< ±REWDLQHGRQEHKDOIRILQYHVWRUVDMXU\YHUGLFWRQOLDELOLW\DQGGDPDJHV DJDLQVWWKHFRPSDQ\¶VIRUPHU&)2In re Lehman Brothers Sec. & ERISA Litig1R0' /$. 6'1< PLOOLRQ VHWWOHPHQW In re Pfizer, Inc. Sec. Litig 1R /76 6'1< ± UHSUHVHQWVWKUHHRIWKHFRXUWDSSRLQWHGFODVVUHSUHVHQWDWLYHVDQGVHUYHVDVDGGLWLRQDOFRXQVHOIRUWKHFODVV LQ VHFXULWLHV IUDXG FODVV DFWLRQ EDVHG RQ DOOHJHG PLVUHSUHVHQWDWLRQV DQG RPLVVLRQV FRQFHUQLQJ FDUGLRYDVFXODU ULVNV DVVRFLDWHG ZLWK &HOHEUH[ DQG %H[WUD ZKLFK VXUYLYHG 'HIHQGDQWV¶ PRWLRQ IRU VXPPDU\MXGJPHQWConnecticut Retirement Plans & Trust Funds et al. v. BP p.l.c. et al 6'7H[ ± UHSUHVHQWVVHYHUDOSXEOLFSHQVLRQIXQGVLQGLUHFWDFWLRQDVVHUWLQJFODLPVXQGHU6HFWLRQ E DQG5XOHE IRUSXUFKDVHVRI%3$'5VRQWKH1<6(DQGXQGHU(QJOLVKODZIRUSXUFKDVHUVRI%3RUGLQDU\VKDUHVRQ WKH/RQGRQ6WRFN([FKDQJHZKLFKUHFHQWO\VXUYLYHG'HIHQGDQWV¶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magna cum laude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cum laude ZKHUHVKHVHUYHGDV([HFXWLYH(GLWRURIWKH*HRUJHWRZQ-RXUQDORI*HQGHUDQGWKH/DZ6KH UHFHLYHGKHUXQGHUJUDGXDWHGHJUHHLQ3ROLWLFDO6FLHQFHIURPWKH8QLYHUVLW\RI0DLQH2URQR with high distinction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cum laudeIURP/HZLVDQG&ODUN/DZ6FKRROLQ0V&KULVWLDQVHQLVDJUDGXDWHRIWKH8QLYHUVLW\RI 3RUWODQGZKHUHVKHUHFHLYHGKHU%DFKHORURI$UWVcum laudeLQ3ROLWLFDO6FLHQFHDQG*HUPDQ6WXGLHV 0V&KULVWLDQVHQLVFXUUHQWO\OLFHQVHGWRSUDFWLFHODZLQ1HZ (/,=$%(7+ '5$*29,&+ D VWDII DWWRUQH\ RI WKH )LUP FRQFHQWUDWHV KHU SUDFWLFH LQ WKH DUHD RI VHFXULWLHV OLWLJDWLRQ 0V 'UDJRYLFK UHFHLYHG KHU ODZ GHJUHH IURP WKH 8QLYHUVLW\ RI 3HQQV\OYDQLD /DZ 6FKRROLQDQGKHUXQGHUJUDGXDWHGHJUHHIURP&DUQHJLH0HOORQ8QLYHUVLW\LQ0V'UDJRYLFKLV OLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLD3ULRUWRMRLQLQJ.HVVOHU7RSD](OL]DEHWKZDVDVWDIIDWWRUQH\ZLWK WKH:LOPLQJWRQ'HODZDUHODZILUPRI*UDQW (LVHQKRIHU3$͘ 67(3+(1 - '86.,1 D VWDII DWWRUQH\ RI WKH )LUP FRQFHQWUDWHV KLV SUDFWLFH LQ WKH DUHD RI DQWLWUXVW OLWLJDWLRQ0U'XVNLQUHFHLYHGKLVODZGHJUHHIURP5XWJHUV6FKRRORI/DZDW&DPGHQLQDQGKLV XQGHUJUDGXDWHGHJUHHLQ0DWKHPDWLFVIURPWKH8QLYHUVLW\RI5RFKHVWHULQ0U'XVNLQLVOLFHQVHGWR SUDFWLFHODZLQ3HQQV\OYDQLD 3ULRUWRMRLQLQJ.HVVOHU7RSD]0U'XVNLQSUDFWLFHGFRUSRUDWHDQGVHFXULWLHVODZLQSULYDWHSUDFWLFHDQGLQ FRUSRUDWHOHJDOGHSDUWPHQWVDQGDOVRZRUNHGIRUWKH866HFXULWLHVDQG([FKDQJH&RPPLVVLRQDQGWKH 5HVROXWLRQ7UXVW&RUSRUDWLRQ '211$($*/(621 DVWDIIDWWRUQH\RIWKH)LUPFRQFHQWUDWHVKHUSUDFWLFHLQWKHDUHDRIVHFXULWLHV OLWLJDWLRQGLVFRYHU\PDWWHUV6KHUHFHLYHGKHUODZGHJUHHIURPWKH8QLYHUVLW\RI'D\WRQ6FKRRORI/DZLQ 'D\WRQ2KLR0V(DJOHVRQLVOLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLD 3ULRUWRMRLQLQJ.HVVOHU7RSD]0V(DJOHVRQZRUNHGDVDQDWWRUQH\LQWKHODZHQIRUFHPHQWILHOGDQG SUDFWLFHGLQVXUDQFHGHIHQVHODZZLWKWKH3KLODGHOSKLDILUP0DUJROLV(GHOVWHLQ 3$75,&. - ('',6 D VWDII DWWRUQH\ RI WKH )LUP FRQFHQWUDWHV KLV SUDFWLFH LQ WKH DUHD RI FRUSRUDWH JRYHUQDQFHOLWLJDWLRQ0U(GGLVUHFHLYHGKLVODZGHJUHHIURP7HPSOH8QLYHUVLW\6FKRRORI/DZLQ DQGKLVXQGHUJUDGXDWHGHJUHHIURPWKH8QLYHUVLW\RI9HUPRQWLQ0U(GGLVLVOLFHQVHGWRSUDFWLFHLQ 3HQQV\OYDQLD 3ULRUWRMRLQLQJ.HVVOHU7RSD]0U(GGLVZDVD'HSXW\3XEOLF'HIHQGHUZLWKWKH%XFNV&RXQW\2IILFHRI WKH3XEOLF'HIHQGHU%HIRUHWKDW0U(GGLVZDVDQDWWRUQH\ZLWK3HSSHU+DPLOWRQ//3ZKHUHKHZRUNHG RQYDULRXVSKDUPDFHXWLFDODQGFRPPHUFLDOPDWWHUV 6$08(/&)(/'0$1DQDVVRFLDWHRIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHLQVHFXULWLHVOLWLJDWLRQ0U )HOGPDQUHFHLYHGKLVODZGHJUHHZLWKKRQRUVIURPWKH(PRU\8QLYHUVLW\6FKRRORI/DZLQDQGKLV XQGHUJUDGXDWHGHJUHHZLWKKRQRUVIURPWKH8QLYHUVLW\RI)ORULGDLQ0U)HOGPDQLVOLFHQVHGWR SUDFWLFHLQ3HQQV\OYDQLD :KLOHLQODZVFKRRO6DPZRUNHGDVDQH[WHUQDW7KH&RFD&ROD&RPSDQ\WDXJKWWZRODEVHFWLRQV RI$GYDQFHG/HJDO:ULWLQJ (GLWLQJXQGHU3URIHVVRU7LPRWK\7HUUHOODQGVHUYHGDV3UHVLGHQW RIWKH6WXGHQW%DU$VVRFLDWLRQ 0$5.)5$1(.DQDVVRFLDWHRIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHRQVHFXULWLHVIUDXGDQWLWUXVWDQG XQIDLUEXVLQHVVSUDFWLFHVOLWLJDWLRQ0U)UDQHNUHFHLYHGKLVODZGHJUHHIURP7HPSOH8QLYHUVLW\%HDVOH\ 6FKRRORI/DZDQGJUDGXDWHGwith honorsIURP'XNH8QLYHUVLW\+HLVOLFHQVHGWRSUDFWLFHLQ3HQQV\OYDQLD DQG1HZ-HUVH\ %HIRUHMRLQLQJWKH)LUP0U)UDQHNZDVD-XGLFLDO2IILFHUWRWKH+RQRUDEOH$QQHWWH05L]]R3KLODGHOSKLD &RXUWRI&RPPRQ3OHDVDQGD-XGLFLDO,QWHUQWRWKH+RQRUDEOH*HQH(.3UDWWHU86'LVWULFW&RXUWIRU WKH(DVWHUQ'LVWULFWRI3HQQV\OYDQLD,QODZVFKRRO0U)UDQHNVHUYHGRQ7HPSOH¶V/DZ5HYLHZDQGZDV DPHPEHURI7HPSOH¶V0RRW&RXUW+RQRU6RFLHW\ Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 47 of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summa cum laudeIURP$UL]RQD6WDWH8QLYHUVLW\+HLVOLFHQVHGWRSUDFWLFHLQ3HQQV\OYDQLDDQG LV DGPLWWHG WR SUDFWLFH EHIRUH WKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH (DVWHUQ 'LVWULFW RI 3HQQV\OYDQLD 68)(,+8DVWDIIDWWRUQH\RIWKH)LUPFRQFHQWUDWHVKHUSUDFWLFHLQWKHDUHDRIVHFXULWLHVOLWLJDWLRQ6KH UHFHLYHGKHU-'IURP9LOODQRYD8QLYHUVLW\6FKRRORI/DZZKHUHVKHZDVDPHPEHURIWKH0RRW&RXUW %RDUG0V+XUHFHLYHGKHUXQGHUJUDGXDWHGHJUHHIURP+DYHUIRUG&ROOHJHLQ3ROLWLFDO6FLHQFHZLWKKRQRUV 6KHLVOLFHQVHGWRSUDFWLFHODZLQ3HQQV\OYDQLDDQG1HZ-HUVH\DQGLVDGPLWWHGWRWKH8QLWHG6WDWHV'LVWULFW &RXUWRIWKH(DVWHUQ'LVWULFWRI3HQQV\OYDQLD3ULRUWRMRLQLQJWKH)LUP0V+XZRUNHGLQSKDUPDFHXWLFDO DQWLWUXVWDQGVHFXULWLHVODZ )$5=$1$,6/$0DQDVVRFLDWHRIWKH)LUPFRQFHQWUDWHVKHUSUDFWLFHLQVHFXULWLHVOLWLJDWLRQ0V,VODP UHFHLYHGKHU-XULV'RFWRUDWHIURP9LOODQRYD8QLYHUVLW\&KDUOHV:LGJHU6FKRRORI/DZLQDQGLVD JUDGXDWH RI 'UH[HO 8QLYHUVLW\¶V /H%RZ &ROOHJH RI %XVLQHVV ZKHUH VKH UHFHLYHG D %6 LQ %XVLQHVV $GPLQLVWUDWLRQ0V,VODPLVOLFHQVHGWRSUDFWLFHLQ3HQQV\OYDQLDDQG1HZ-HUVH\ )ROORZLQJODZVFKRRO0V,VODPVHUYHGDVDMXGLFLDOODZFOHUNWRWKH+RQ5REHUW/RXJ\-6&RIWKH1HZ -HUVH\6XSHULRU&RXUW3ULRUWRMRLQLQJWKHILUPLQ0V,VODPZDVDQ$VVLVWDQW'LVWULFW$WWRUQH\IRU WKH3KLODGHOSKLD'LVWULFW$WWRUQH\¶VRIILFHZKHUHVKHUHSUHVHQWHGWKH&RPPRQZHDOWKLQRYHUILIW\IHORQ\ DSSHDOVEHIRUHWKH3HQQV\OYDQLD6XSHULRU&RXUWDQG3HQQV\OYDQLD6XSUHPH&RXUW 1$7$/,(/(66(5DQDVVRFLDWHRIWKH)LUPFRQFHQWUDWHVKHUSUDFWLFHLQWKHDUHDRIFRQVXPHUSURWHFWLRQ 0V/HVVHUUHFHLYHGKHUODZGHJUHHIURPWKH8QLYHUVLW\RI3LWWVEXUJK6FKRRORI/DZLQDQGKHU XQGHUJUDGXDWHGHJUHHLQ(QJOLVKIURPWKH6WDWH8QLYHUVLW\RI1HZ DQG Luther, et al. v. Countrywide Fin. Corp. 1R FY &' &DO VHWWOHG PLOOLRQ FRPELQHG 0V0D]]HRDOVRZDVDPHPEHURIWKHWULDOWHDPZKRZRQDMXU\YHUGLFWLQIDYRURILQYHVWRUV LQWKHIn re Longtop Financial Technologies Ltd. Securities Litigation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ase 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 51 of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summa cum laude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n re Tyco International, Ltd. Sec. Litig1R% '1+ VHWWOHG ELOOLRQ IHGHUDO DQG VWDWH ZDJH DQG KRXU OLWLJDWLRQ In re FootLocker Inc. Fair Labor Standards Act (FLSA) and Wage and Hour Litig., 1R PGO (' 3D VHWWOHG ±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ui Tam'HSDUWPHQWRI WKH)LUP0U:HOOVUHFHLYHGKLV-'IURP7HPSOH8QLYHUVLW\%HDVOH\6FKRRORI/DZLQZKHUHKH ZDVSXEOLVKHGLQWKH7HPSOH-RXUQDORI,QWHUQDWLRQDODQG&RPSDUDWLYH/DZDQGUHFHLYHGKLVXQGHUJUDGXDWH GHJUHHIURP)RUGKDP8QLYHUVLW\+HLVOLFHQVHGWRSUDFWLFHLQ3HQQV\OYDQLD )ROORZLQJJUDGXDWLRQ0U:HOOVZDVDQ$VVLVWDQW'HIHQGHUDWWKH'HIHQGHU$VVRFLDWLRQRI3KLODGHOSKLD IRU VL[ \HDUV 3ULRU WR MRLQLQJ WKH )LUP LQ KH ZRUNHG DW WZR SURPLQHQW 3KLODGHOSKLD ODZ ILUPV SUDFWLFLQJFODVVDFWLRQHPSOR\PHQWDQGZKLVWOHEORZHUODZ &+5,6723+(50:,1'29(5DQDVVRFLDWHRIWKH)LUPFRQFHQWUDWHVKLVSUDFWLFHLQWKHDUHDVRI VKDUHKROGHU GHULYDWLYH DFWLRQV DQG PHUJHUV DQG DFTXLVLWLRQV OLWLJDWLRQ 0U :LQGRYHU UHFHLYHG KLV ODZ GHJUHHIURP5XWJHUV8QLYHUVLW\6FKRRORI/DZcum laudeDQGUHFHLYHGKLVXQGHUJUDGXDWHGHJUHHIURP Case 1:15-cv-09185-CM-KNF Document 154-3 Filed 05/24/19 Page 53 of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³.HVVOHU 7RSD]´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ase 1:15-cv-09185-CM-KNF Document 154-4 Filed 05/24/19 Page 1 of 2 EXHIBIT 4 Case 1:15-cv-09185-CM-KNF Document 154-4 Filed 05/24/19 Page 2 of 2 Case 1:15-cv-07081-LLS Document 95 Filed 08/03/18 Page 1 of 1 Case 1:15-cv-09185-CM-KNF Document 154-5 Filed 05/24/19 Page 1 of 11 EXHIBIT 5 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 12 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 23 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 34 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 45 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 56 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 67 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 78 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 89 ofof 1011 CaseCase 1:15-cv-09185-CM-KNF 1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 05/24/1903/20/18 PagePage 109 of of 10 11 CaseCase 1:15-cv-09185-CM-KNF1:16-cv-00444-LTS-OTW Document Document 154-5 148 FiledFiled 03/20/1805/24/19 PagePage 1011 ofof 1011 Case 1:15-cv-09185-CM-KNF Document 154-6 Filed 05/24/19 Page 1 of 3 EXHIBIT 6 CaseCase 1:15-cv-09185-CM-KNF 1:01-cv-03014-GBD DocumentDocument 363 154-6 Filed Filed 11/13/13 05/24/19 Page Page 1 of 22 of 3 CaseCase 1:15-cv-09185-CM-KNF 1:01-cv-03014-GBD DocumentDocument 363 154-6 Filed Filed 11/13/13 05/24/19 Page Page 2 of 23 of 3fer ,1g,'1,1 re,or,ls. itisstillnwaitingapprovalinthc 1""1'1'·~'-'d. Winch. if;,p1'10\'cd. Will r.-.,,.]\"c ,111 d.1un., m you"'":, Rq~i.11c,cd l!oltk, Damag,c, Cla.,;.s Mc,nh.:r ~OTl(!C'flUlKy.[[(11!11(0!lJIIUlSflJOlllllHO:tllllltOf!OETlUMOINll.tU11"1.<~llm,....~n=yJ~, United States. UtdJ;rl 11. ro11 r,~,·t i.t... , 0.-f<.l ta~"' 101,...11 r~m kno,,<1 «-.! 1-'1 r..,..,, m 1'1-'1 r...,,_,•t, f,4. o->J !lw hl1g;il1