Securities and Exchange Commission v. Ruben Rojas

Filing 26

PROTECTIVE ORDER by Magistrate Judge Shashi H. Kewalramani re Stipulation for Protective Order 25 . (see document for details) (hr)

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1 2 3 4 5 6 7 8 9 BERNARD B. SMYTH (Cal. Bar No. 217741) E-mail: ANDREW J. HEFTY (Cal. Bar No. 220450) E-mail: JASON H. LEE (Cal. Bar No. 253140) E-mail: Attorneys for Plaintiff Securities and Exchange Commission 44 Montgomery Street, Suite 2800 San Francisco, California 94104 Telephone: (415) 705-2500 Facsimile: (415) 705-2501 10 UNITED STATES DISTRICT COURT 11 CENTRAL DISTRICT OF CALIFORNIA 12 WESTERN DIVISION 13 14 15 16 SECURITIES AND EXCHANGE COMMISSION, 17 Plaintiff, 18 v. 19 Case No. 5:19-cv-01799-FLA (SHKx) STIPULATED PROTECTIVE ORDER RUBEN JAMES ROJAS, 20 Defendant. 21 22 23 1. A. PURPOSES AND LIMITATIONS 24 25 Discovery in this Action is likely to involve production of confidential, 26 proprietary, or private information for which special protection from public 27 disclosure and from use for any purpose other than prosecuting this Action may be 28 warranted. Accordingly, the parties hereby stipulate to and petition the Court to enter STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 1 the following Stipulated Protective Order. The parties acknowledge that this Order 2 does not confer blanket protections on all disclosures or responses to discovery and 3 that the protection it affords from public disclosure and use extends only to the 4 limited information or items that are entitled to confidential treatment under the 5 applicable legal principles. The parties further acknowledge, as set forth in Section 6 12.3, below, that this Stipulated Protective Order does not entitle them to file 7 confidential information under seal; Civil Local Rule 79-5 sets forth the procedures 8 that must be followed and the standards that will be applied when a party seeks 9 permission from the court to file material under seal. 10 11 B. GOOD CAUSE STATEMENT 12 13 This Action may involve non-public student-related information, and 14 proprietary financial, commercial, business or legally-privileged information, or 15 information that is otherwise protected by a right of privacy, for which special 16 protection from public disclosure and from use for any purpose other than 17 prosecution of this Action is warranted. Such confidential and proprietary materials 18 and information consist of, among other things, confidential business or financial 19 information, personal identifiable information, information regarding confidential 20 business practices or legal advice, or other non-public personal or commercial 21 information (including information implicating legal privileges or protection, or the 22 privacy rights of third parties), information otherwise generally unavailable to the 23 public, or which may be privileged or otherwise protected from disclosure under state 24 or federal statutes, court rules, case decisions, or common law, or pursuant to non- 25 disclosure agreement or similar contract. Accordingly, to expedite the flow of 26 information, to facilitate the prompt resolution of disputes over confidentiality of 27 discovery materials, to adequately protect information the parties are entitled to keep 28 confidential, to ensure that the parties are permitted reasonable necessary uses of such STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 2 1 material in preparation for and in the conduct of trial, to address their handling at the 2 end of the Action, and serve the ends of justice, a protective order for such 3 information is justified in this Action. It is the intent of the parties that information 4 will not be designated as confidential for tactical reasons and that nothing be so 5 designated without a good faith belief that it has been maintained in a confidential, 6 non-public manner, and there is good cause why it should not be part of the public 7 record of this case. 8 9 10 11 12 13 14 2. DEFINITIONS 2.1 Action: Securities and Exchange Commission v. Ruben James Rojas, Case No. 5:19-cv-01799-FLA (SHKx). 2.2 Challenging Party: a Party or Non-Party that challenges the designation of information or items under this Order. 2.3 “CONFIDENTIAL PER P.O.” Information or Items: information 15 (regardless of how it is generated, stored or maintained) or tangible things that qualify 16 for protection under Federal Rule of Civil Procedure 26(c), and as specified above in 17 the Good Cause Statement. 18 19 20 2.4 Counsel: Outside Counsel of Record and House Counsel (as well as their support staff). 2.5 Designating Party: a Party or Non-Party that designates information or 21 items that it produces in disclosures or in responses to discovery as 22 “CONFIDENTIAL PER P.O.” 23 2.6 Disclosure or Discovery Material: all items or information, regardless of 24 the medium or manner in which it is generated, stored, or maintained (including, 25 among other things, testimony, transcripts, and tangible things), that are produced or 26 generated in disclosures or responses to discovery in this Action. 27 28 2.7 Expert: a person with specialized knowledge or experience in a matter pertinent to the Action who has been retained by a Party or its counsel to serve as an STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 3 1 expert witness or as a consultant in this Action. 2.8 2 House Counsel: attorneys who are employees of a party to this Action. 3 House Counsel does not include Outside Counsel of Record or any other outside 4 counsel. 5 6 2.9 Non-Party: any natural person, partnership, corporation, association, or other legal entity not named as a Party to this Action. 7 2.10 Outside Counsel of Record: attorneys who are not employees of a party 8 to this Action but are retained to represent or advise a party to this Action and have 9 appeared in this Action on behalf of that party or are affiliated with a law firm which 10 has appeared on behalf of that party, and includes support staff. 11 2.11 Party: any party to this Action, including all of its officers, directors, 12 employees, consultants, retained experts, and Outside Counsel of Record (and their 13 support staffs). 14 15 2.12 Producing Party: a Party or Non-Party that produces Disclosure or Discovery Material in this Action. 16 2.13 Professional Vendors: persons or entities that provide litigation support 17 services (e.g., photocopying, videotaping, translating, preparing exhibits or 18 demonstrations, and organizing, storing, or retrieving data in any form or medium) 19 and their employees and subcontractors. 20 21 2.14 Protected Material: any Disclosure or Discovery Material that is designated as “CONFIDENTIAL PER P.O.” 22 23 2.15 Receiving Party: a Party that receives Disclosure or Discovery Material from a Producing Party. 24 25 3. SCOPE 26 The protections conferred by this Stipulation and Order cover not only 27 Protected Material (as defined above), but also (1) any information copied or 28 extracted from Protected Material; (2) all copies, excerpts, summaries, or STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 4 1 compilations of Protected Material; and (3) any testimony, conversations, or 2 presentations by Parties or their Counsel that might reveal Protected Material. Any use of Protected Material at trial shall be governed by the orders of the 3 4 trial judge. This Order does not govern the use of Protected Material at trial. 5 6 4. 7 DURATION Even after final disposition of this Action, the confidentiality obligations 8 imposed by this Order shall remain in effect until a Designating Party agrees 9 otherwise in writing or a court order otherwise directs. Final disposition shall be 10 deemed to be the later of (1) dismissal of all claims and defenses in this Action, with 11 or without prejudice; and (2) final judgment herein after the completion and 12 exhaustion of all appeals, rehearings, remands, trials, or reviews of this Action, 13 including the time limits for filing any motions or applications for extension of time 14 pursuant to applicable law. 15 16 17 5. DESIGNATING PROTECTED MATERIAL 5.1 Exercise of Restraint and Care in Designating Material for Protection. 18 Each Party or Non-Party that designates information or items for protection under this 19 Order must take care to limit any such designation to specific material that qualifies 20 under the appropriate standards. The Designating Party must designate for protection 21 only those parts of material, documents, items, or oral or written communications that 22 qualify so that other portions of the material, documents, items, or communications 23 for which protection is not warranted are not swept unjustifiably within the ambit of 24 this Order. 25 Mass, indiscriminate, or routinized designations are prohibited. Designations 26 that are shown to be clearly unjustified or that have been made for an improper 27 purpose (e.g., to unnecessarily encumber the case development process or to impose 28 unnecessary expenses and burdens on other parties) may expose the Designating STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 5 1 Party to sanctions. 2 If it comes to a Designating Party’s attention that information or items that it 3 designated for protection do not qualify for protection, that Designating Party must 4 promptly notify all other Parties that it is withdrawing the inapplicable designation. 5 5.2 Manner and Timing of Designations. Except as otherwise provided in 6 this Order (see, e.g., second paragraph of section 5.2(a) below), or as otherwise 7 stipulated or ordered, Disclosure or Discovery Material that qualifies for protection 8 under this Order must be clearly so designated before the material is disclosed or 9 produced. 10 Designation in conformity with this Order requires: 11 (a) for information in documentary form (e.g., paper or electronic 12 documents, but excluding transcripts of depositions or other pretrial or trial 13 proceedings), that the Producing Party affix at a minimum, the legend 14 “CONFIDENTIAL PER P.O.” (hereinafter “CONFIDENTIAL PER P.O. legend”), to 15 each page that contains protected material. If only a portion or portions of the 16 material on a page qualifies for protection, the Producing Party also must clearly 17 identify the protected portion(s) (e.g., by making appropriate markings in the 18 margins). 19 A Party or Non-Party that makes original documents available for inspection 20 need not designate them for protection until after the inspecting Party has indicated 21 which documents it would like copied and produced. During the inspection and 22 before the designation, all of the material made available for inspection shall be 23 deemed “CONFIDENTIAL PER P.O.” After the inspecting Party has identified the 24 documents it wants copied and produced, the Producing Party must determine which 25 documents, or portions thereof, qualify for protection under this Order. Then, before 26 producing the specified documents, the Producing Party must affix the 27 “CONFIDENTIAL PER P.O. legend” to each page that contains Protected Material. 28 If only a portion or portions of the material on a page qualifies for protection, the STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 6 1 Producing Party also must clearly identify the protected portion(s) (e.g., by making 2 appropriate markings in the margins). (b) for testimony given in depositions, that the Designating Party identify 3 4 on the record, before the close of the deposition, all protected testimony. (c) for information produced in some form other than documentary and for 5 6 any other tangible items, that the Producing Party affix in a prominent place on the 7 exterior of the container or containers in which the information is stored the legend 8 “CONFIDENTIAL PER P.O.” If only a portion or portions of the information 9 warrants protection, the Producing Party, to the extent practicable, shall identify the 10 protected portion(s). 5.3 11 Inadvertent Failures to Designate. If timely corrected, an inadvertent 12 failure to designate qualified information or items does not, standing alone, waive the 13 Designating Party’s right to secure protection under this Order for such material. 14 Upon timely correction of a designation, the Receiving Party must make reasonable 15 efforts to assure that the material is treated in accordance with the provisions of this 16 Order. 17 18 19 6. CHALLENGING CONFIDENTIALITY DESIGNATIONS 6.1 Timing of Challenges. Any Party or Non-Party may challenge a 20 designation of confidentiality at any time that is consistent with the Court’s 21 Scheduling Order. 22 23 24 6.2 Meet and Confer. The Challenging Party shall initiate the dispute resolution process under Local Rule 37.1 et seq. 6.3 The burden of persuasion in any such challenge proceeding shall be on 25 the Designating Party. Frivolous challenges, and those made for an improper purpose 26 (e.g., to harass or impose unnecessary expenses and burdens on other parties) may 27 expose the Challenging Party to sanctions. Unless the Designating Party has waived 28 or withdrawn the confidentiality designation, all parties shall continue to afford the STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 7 1 material in question the level of protection to which it is entitled under the Producing 2 Party’s designation until the Court rules on the challenge. 3 4 5 7. ACCESS TO AND USE OF PROTECTED MATERIAL 7.1 Basic Principles. A Receiving Party may use Protected Material that is 6 disclosed or produced by another Party or by a Non-Party in connection with this 7 Action only for prosecuting, defending, or attempting to settle this Action. Such 8 Protected Material may be disclosed only to the categories of persons and under the 9 conditions described in this Order. When the Action has been terminated, a Receiving 10 Party must comply with the provisions of section 13 below (FINAL DISPOSITION). 11 Notwithstanding any other provisions contained herein, this Order does not 12 limit or restrict Plaintiff Securities and Exchange Commission (“SEC”) from using or 13 disclosing any materials, including Protected Material, to the extent otherwise 14 required by law or permitted pursuant to the terms of SEC Form 1662 (a copy of 15 which is attached hereto as Exhibit B). 16 Protected Material must be stored and maintained by a Receiving Party at a 17 location and in a secure manner that ensures that access is limited to the persons 18 authorized under this Order. 19 7.2 Disclosure of “CONFIDENTIAL PER P.O.” Information or Items. 20 Unless otherwise ordered by the court or permitted in writing by the Designating 21 Party, a Receiving Party may disclose any information or item designated 22 “CONFIDENTIAL PER P.O.” only to: 23 (a) the Receiving Party’s Outside Counsel of Record in this Action, as well 24 as employees of said Outside Counsel of Record to whom it is reasonably necessary 25 to disclose the information for this Action; 26 27 28 (b) the officers, directors, and employees (including House Counsel) of the Receiving Party to whom disclosure is reasonably necessary for this Action; (c) Experts (as defined in this Order) of the Receiving Party to whom STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 8 1 disclosure is reasonably necessary for this Action and who have signed the 2 “Acknowledgment and Agreement to Be Bound” (Exhibit A); 3 (d) the court and its personnel; 4 (e) court reporters and their staff; 5 (f) professional jury or trial consultants, mock jurors, and Professional 6 Vendors to whom disclosure is reasonably necessary for this Action and who have 7 signed the “Acknowledgment and Agreement to Be Bound” (Exhibit A); (g) the author or recipient of a document containing the information or a 8 9 custodian or other person who otherwise possessed or knew the information; 10 (h) during their depositions, witnesses, and attorneys for witnesses, in the 11 Action to whom disclosure is reasonably necessary provided: (1) the deposing party 12 requests that the witness sign the form attached as Exhibit A hereto; and (2) they will 13 not be permitted to keep any confidential information unless they sign the 14 “Acknowledgment and Agreement to Be Bound” (Exhibit A), unless otherwise 15 agreed by the Designating Party or ordered by the court. Pages of transcribed 16 deposition testimony or exhibits to depositions that reveal Protected Material may be 17 separately bound by the court reporter and may not be disclosed to anyone except as 18 permitted under this Stipulated Protective Order; (i) any mediator or settlement officer, and their supporting personnel, 19 20 mutually agreed upon by any of the parties engaged in settlement discussions; and (j) where the SEC is the Receiving Party, the SEC may to the extent 21 22 required by law or permitted pursuant to the terms of SEC Form 1662 disclose any 23 information or item designated “CONFIDENTIAL PER P.O.” that the SEC receives 24 from a Producing Party. 25 26 8. 27 IN OTHER LITIGATION 28 PROTECTED MATERIAL SUBPOENAED OR ORDERED PRODUCED If a Party is served with a subpoena or a court order issued in other litigation STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 9 1 that compels disclosure of any information or items designated in this Action as 2 “CONFIDENTIAL PER P.O.,” that Party must: (a) promptly notify in writing the Designating Party. Such notification shall 3 4 include a copy of the subpoena or court order; (b) promptly notify in writing the party who caused the subpoena or order 5 6 to issue in the other litigation that some or all of the material covered by the subpoena 7 or order is subject to this Protective Order. Such notification shall include a copy of 8 this Stipulated Protective Order; and (c) cooperate with respect to all reasonable procedures sought to be pursued 9 10 by the Designating Party whose Protected Material may be affected. If the Designating Party timely seeks a protective order, the Party served with 11 12 the subpoena or court order shall not produce any information designated in this 13 Action as “CONFIDENTIAL PER P.O.” before a determination by the court from 14 which the subpoena or order issued, unless the Party has obtained the Designating 15 Party’s permission. The Designating Party shall bear the burden and expense of 16 seeking protection in that court of its confidential material and nothing in these 17 provisions should be construed as authorizing or encouraging a Receiving Party in 18 this Action to disobey a lawful directive from another court. 19 20 9. 21 PRODUCED IN THIS ACTION 22 A NON-PARTY’S PROTECTED MATERIAL SOUGHT TO BE (a) The terms of this Order are applicable to information produced by a 23 Non-Party in this Action and designated as “CONFIDENTIAL PER P.O.” Such 24 information produced by Non-Parties in connection with this Action is protected by 25 the remedies and relief provided by this Order. Nothing in these provisions should be 26 construed as prohibiting a Non-Party from seeking additional protections. 27 (b) In the event that a Party is required, by a valid discovery request, to 28 produce a Non-Party’s confidential information in its possession, and the Party is STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 10 1 subject to an agreement with the Non-Party not to produce the Non-Party’s 2 confidential information, then the Party shall: (1) promptly notify in writing the Requesting Party and the Non-Party 3 4 that some or all of the information requested is subject to a confidentiality agreement 5 with a Non-Party; (2) promptly provide the Non-Party with a copy of the Stipulated 6 7 Protective Order in this Action, the relevant discovery request(s), and a reasonably 8 specific description of the information requested; and (3) make the information requested available for inspection by the Non- 9 10 Party, if requested. 11 (c) If the Non-Party fails to seek a protective order from this court within 12 14 days of receiving the notice and accompanying information, the Receiving Party 13 may produce the Non-Party’s confidential information responsive to the discovery 14 request. If the Non-Party timely seeks a protective order, the Receiving Party shall 15 not produce any information in its possession or control that is subject to the 16 confidentiality agreement with the Non-Party before a determination by the court. 17 Absent a court order to the contrary, the Non-Party shall bear the burden and expense 18 of seeking protection in this court of its Protected Material. 19 20 21 10. UNAUTHORIZED DISCLOSURE OF PROTECTED MATERIAL If a Receiving Party learns that, by inadvertence or otherwise, it has disclosed 22 Protected Material to any person or in any circumstance not authorized under this 23 Stipulated Protective Order, the Receiving Party must immediately (a) notify in 24 writing the Designating Party of the unauthorized disclosures, (b) use its best efforts 25 to retrieve all unauthorized copies of the Protected Material, (c) inform the person or 26 persons to whom unauthorized disclosures were made of all the terms of this Order, 27 and (d) request such person or persons to execute the “Acknowledgment and 28 Agreement to Be Bound” that is attached hereto as Exhibit A. STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 11 1 11. 2 PROTECTED MATERIAL 3 INADVERTENT PRODUCTION OF PRIVILEGED OR OTHERWISE When a Producing Party gives notice to Receiving Parties that certain 4 inadvertently produced material is subject to a claim of privilege or other protection, 5 the obligations of the Receiving Parties are those set forth in Federal Rule of Civil 6 Procedure 26(b)(5)(B). This provision is not intended to modify whatever procedure 7 may be established in an e-discovery order that provides for production without prior 8 privilege review. Pursuant to Federal Rule of Evidence 502(d) and (e), insofar as the 9 parties reach an agreement on the effect of disclosure of a communication or 10 information covered by the attorney-client privilege or work product protection, the 11 parties may incorporate their agreement in the stipulated protective order submitted to 12 the court. 13 14 15 16 17 12. MISCELLANEOUS 12.1 Right to Further Relief. Nothing in this Order abridges the right of any person to seek its modification by the Court in the future. 12.2 Right to Assert Other Objections. By stipulating to the entry of this 18 Protective Order no Party waives any right it otherwise would have to object to 19 disclosing or producing any information or item on any ground not addressed in this 20 Stipulated Protective Order. Similarly, no Party waives any right to object on any 21 ground to the use in evidence of any of the material covered by this Protective Order. 22 12.3 Filing Protected Material. A Party that seeks to file under seal any 23 Protected Material must comply with Civil Local Rule 79-5. Protected Material may 24 only be filed under seal pursuant to a court order authorizing the sealing of the 25 specific Protected Material at issue. If a Party's request to file Protected Material 26 under seal is denied by the court, then the Receiving Party may file the information in 27 the public record unless otherwise instructed by the court. 28 STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 12 1 13. FINAL DISPOSITION 2 After the final disposition of this Action, as defined in paragraph 4, within 60 3 days of a written request by the Designating Party, each Receiving Party must return 4 all Protected Material to the Producing Party or destroy such material, except as noted 5 herein with respect to the SEC’s records retention requirements. As used in this 6 subdivision, “all Protected Material” includes all copies, abstracts, compilations, 7 summaries, and any other format reproducing or capturing any of the Protected 8 Material. Whether the Protected Material is returned or destroyed, the Receiving 9 Party must submit a written certification to the Producing Party (and, if not the same 10 person or entity, to the Designating Party) by the 60 day deadline that (1) identifies 11 (by category, where appropriate) all the Protected Material that was returned or 12 destroyed and (2) affirms that the Receiving Party has not retained any copies, 13 abstracts, compilations, summaries or any other format reproducing or capturing any 14 of the Protected Material. Notwithstanding this provision, Counsel are entitled to 15 retain an archival copy of all pleadings, motion papers, trial, deposition, and hearing 16 transcripts, legal memoranda, correspondence, deposition and trial exhibits, expert 17 reports, attorney work product, and consultant and expert work product, even if such 18 materials contain Protected Material. Any such archival copies that contain or 19 constitute Protected Material remain subject to this Protective Order as set forth in 20 Section 4 (DURATION). Notwithstanding this provision, nothing in this Stipulated 21 Protective Order should be read as altering the SEC’s policies or procedures 22 regarding record retention as approved by the National Archives and Records 23 Administration; to the extent the obligations under this Order may conflict with those 24 policies or procedures, the SEC will adhere to its record retention policies and 25 procedures and in doing so will not be deemed to be acting contrary to this Order. 26 \\ 27 \\ 28 \\ STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 13 1 14. Any violation of this Order may be punished by any and all appropriate 2 measures including, without limitation, contempt proceedings and/or monetary 3 sanctions. 4 5 IT IS SO STIPULATED, THROUGH COUNSEL OF RECORD. 6 7 DATED: July 13, 2021 8 9 10 /s/ Andrew J. Hefty Attorney for Plaintiff 11 12 DATED: July 13, 2021 13 14 15 /s/ Andrew B. Holmes Attorney for Defendant 16 17 FOR GOOD CAUSE SHOWN, IT IS SO ORDERED. 18 19 DATED: July 16, 2021 20 21 22 Honorable Shashi H. Kewalramani United States Magistrate Judge 23 24 25 26 27 28 STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 14 1 EXHIBIT A 2 ACKNOWLEDGMENT AND AGREEMENT TO BE BOUND 3 4 I, 5 [print or type full address], declare under penalty of perjury that I have read in its 6 entirety and understand the Stipulated Protective Order that was issued by the 7 United States District Court for the Central District of California on 8 2021 in the case of Securities and Exchange Commission v. Ruben James Rojas, 9 Case No. 5:19-cv-01799-FLA (SHKx). I agree to comply with and to be bound by [print or type full name], of , 10 all the terms of this Stipulated Protective Order and I understand and 11 acknowledge that failure to so comply could expose me to sanctions and punishment 12 in the nature of contempt. I solemnly promise that I will not disclose in any manner 13 any information or item that is subject to this Stipulated Protective Order to any 14 person or entity except in strict compliance with the provisions of this Order. I further 15 agree to submit to the jurisdiction of the United States District Court for the Central 16 District of California for the purpose of enforcing the terms of this Stipulated 17 Protective Order, even if such enforcement proceedings occur after termination of 18 this Action. I hereby appoint 19 full name] of 20 telephone number] as my California agent for service of process in connection with 21 this Action or any proceedings related to enforcement of this Stipulated Protective 22 Order. 23 Date: 24 City and State where sworn and signed: [print or type [print or type full address and 25 26 Printed name: 27 28 Signature: STIPULATED PROTECTIVE ORDER Case No. 5:19-cv-01799-FLA (SHKx) 15

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