TELESTRATA, LLC. v. NetTalk.com, Inc. et al

Filing 69

PRELIMINARY INJUNCTION. Signed by Senior Judge James Lawrence King on 8/19/2015. Associated Cases: 1:14-cv-24137-JLK, 1:15-cv-20435-JLK (jw)

U NI
TED STA TES DI RI T CO UR T
ST C
FO R TH E SO UTH ERN D I
STRI T O F FLO R I
C
DA
M I M ID I I O N
A
V SI
Ca eN o.1 1 CV s
: 4- 24137- LK
J
TELESTR ATA ,LLC ,

Pli if
antf ,

NE TALsCOMTI S' AKI S
VAs 'K. ',NC. KYRI DE
T I I 'AKI'
A Os
,
A

,

STEVEN H EA LY ,
1
A NA STA SI S ' I 'K YRI KI
O ' CK'
N
A DES I ,
l
K EN N ETH H OSFELD ,
G ARRY PAX I O S
N

KYRI DESI T NTSL ,
AKI NVLS ME , TD.
SHADRON STASTNEY,a
nd
A NG ELA I SI
LI E,
Def nt .
enda s

/

PRELI I
M NARY I
NJUNCTI N
O
THE COURT, vi r ce v a r vi d t M oton f aTe
ha ng e i ed nd e ewe he
i or
mpor r Re ta ni
a y sr i ng

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fl a bei ot r s a s d i t pr m ies he e ma st f l ng fndi off c a
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co usonsoflw :
ncl i
a
FI I S O F FA CT
ND NG

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merBihay i a me be ofPl ntf Teesr a,a i a s is m a ge . He i alo
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ai if l tat nd s lo t
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ny m d rse ,
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2011 l it l e e e i o an ag e m e t wih Def nt N e TA LK , t pr de t r i ton
, rs e nt r d nt
re n
t
enda
t
o ovi e m na i

s vi sf cal m a b N eTAtK c t r t Ca a phone numbe s a alo t pr de
er ce or ls de y t . usome s o nadin
r , nd s o ovi
phone numbe st NeTALK c t r l td i Ca da
r o t
usome s ocae n na .
I a oxi t l M a 201 Ne ALK wasuna et pay ismon hl bil t lit lf
n ppr ma ey y 3, W
bl o
t
t y ls o rse or

s r ces Def nda Ni k Kyra de , heVie Pr i ntofNeTALK a t tm e t d M r
e vi . e nt c
iki s t
c esde
t
t he i , ol
.

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s ha W
S ages e r Vi s pia) s etucurng nd huti wn.n
or rf rNeTALK t ha ope a i c pia ,M r Biha ma t pe s ll nst Ne TALK,
de o t
o ve r tng a t l . s y de wo r ona oa o t

one i t a ountof$300, i J a a herpe s ll of$200, i J y 201 On
n he m
000 n une nd not
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000 n ul
3.
ora
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une 201
. s y xe ut d
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s
o c
t pa te a e d t f t rnego it a agr e e whe e M r Bihay woul begr t d
he ris gr e o urhe
ta e n e m nt r by . s
d
an e
68. % ownerhi i e e ti Ne TALK,i e hangef ag eengt ma c rai pa e s
88
s p nt r s n t
n xc
or r i o ke e t n ym nt

ove tmet N eTALK t a i upt $3. milon dola s
ri o t
ot lng o 5 li
lr .
Und t t m soft Let rofI en ,t pa te a e d t tN eTALK woul c
er he er
he te
nt t he ris gr e ha t
d ompl t
ee
r tuc urng oft Vi i Capialde . Let rofI e wasnon- ndi a expied o J y
esr t i
he c s
t bt The te
nt nt
bi ng, nd
r n ul
1 201 Not t tndi t spr son,NeTALK' CEO,Taki Ky iki s c i d t
5, 3. wihsa ng hi ovii
t
S
s ra de , ontnue o
r ques ca t lpa e sfom Sa e Bihayafe J y 1 201 a M r Biha c i d t
e t pia ym nt r
m r s
t r ul 5, 3, nd . s y ontnue o
i ta dii lc pial
nves d tona a t .

Bewe n J y 1 201 and e ryJ
t e ul 5, 3,
a l anua y 201 M r Kyraki a Net
r
4, . i des nd TALK co i
ntnued
t r ques a a ce tt pa e s c i d t us t f ,a di noti or M r Bihay
o e t nd c p he ym nt, ontnue o e he unds nd d
nf m
. s
t tNe-ALK co i r t LetrofI e t bee r d. n ea l J nua y 201 M r Biha
ha tF
nsde ed he te
nt nt o
xpie I ry a r
4, . s y
te t M im i Fl i t Net
l w o a , orda o TALK ' ofi es a me wih t exe i f rNe TALK. l t t
S fc , nd t t he cutves o t
n ha
m e tng,f rt fr ttm e N e TA LK i or e M r Biha ofisposton t tt Le t rofl e
e i o he i s i , t
nf m d , s y t
ii ha he te
nt nt
had e r d,a t tM r Bi ha di notow n a i t r ti Net
xpie nd ha
. s y d
ny n e es n TALK . s oft tm e oft t
A
he i
ha
m e tng,M r Bi ha ha pa d c s t N e TALK f ope atng e ns i t appr m a e
ei
. s y d i ah o t
or r i xpe es n he
oxi t

a ou of$14 milon, nd Iitlha de ere c lc i ofa ount due t i fom Ne TALK
m nt
. li a rse d f r d ole ton m
s
o tr
t
f s r c si t a oxi ae a
or e vi e n he ppr m t mountof$1. m ilon.
8 li
Afe f terne i ton,t pa tesexe ut d as con lte ofi e da e Febr r 20,
t r urh
gota i he ri
c e e d e tr ntnt t d
ua y
201 Unde t t r soft ts co lte ofi e , ne c pa t be f me by M r
4.
r he e m
ha e nd et r nt nt a w om ny o
or d
.

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s Pl ntf lsrt)
d
a e
88%
rhi nt e tn t
nd
woul f rhe begr nt d a wa r ntf a ad tona 20% owne s p i e e tupon e cs
d ut r
a e
ra or n dii l
r hi nt r s
xer ie,
Bewe n Fe ua y20,201 a M a c 11 201 t pa tese ha d a m a c ngest
t e br r
4, nd r h , 4, he ri xc nge nd de ha
o

d a t o a co i d c me tto t c ns mmaeted a. o j t ro t M ac 3 2 4
rfs ffn l l sng o u n ai n o o u t h e lOn r us p ir o r h , 01 ,
NeTALK ' ChifFi nca Ofi e , f nda St en Heal dr td a ç i l'c pialzai
t
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a e
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aned hr e olm : h m

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ac ha e de
TALK,t nu be ofs esowne by t i vi s r hol r a
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d hat ndi dual ha e de , nd
t pe ce t geowne s p i e e townedbyt ti vi ua s r hol r Att botom oft
he r n a
r hi ntr s
ha ndi d l ha e de . he t
he

t pagetbl ,M r Heay i c t d t t t alnumberofou sa ng s e oft Co pa
woa e . l ndia e hat he ot
t tndi har s he m ny
we e 52, 48, s e .
r
0 221 har s

I t c pia iaton tbl Def nda He y s c fcal i ntsed t nu be ofs r
n he a tlz i a e, e nt al pe ii ly de i
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(ndc rs
a ore pondi ownes ppece agei ers)oft l vi Dee nt,asf l :
ng
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i des nve t nt, d. 8, 539 ha es 477%
@ Nik Kyra des- 2, 000,3.
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1

3

M r H e l a s i ude a s ngl lne i t c t i a i t bl i ntf ng t
. a y l o ncl d i e i n he apialz ton a e, de iyi he

s r hol ra t $201 St k Op i P1n, 1a i n iyi t 201 St k Opto Pln
ha e de s he : 3 oc
ton a ' nd de tf ng he 2 oc
'
in a

owned 1 7 000 s r sf a20.
0,24,
ha e or
604% i er s. M r Heay di noti diat i t ca t lz i
nt e t
. l d
n c e n he piai aton
t bl t ta oft es r sha bee g a e o a l aed t pa tc a i vi l De e
a e ha ny hes ha e d n r ntd r loc t o riulr ndi duas. f ndant
Sha St t negotatngon b l ofNe TALK a t Def nt,f wa de t
d asney,
ii
eha f
t
nd he enda s or r d he
ca t i ton tbl by e alt M r Biha a Telsr t on M a c 3,201 De e
pialzai a e
m i o . s y nd e ta a
rh
4. f ndan sdi not
t d
ot r s dicl et Telsr t t ta oft s e pur tdl c aned i t 201 St k
he wie s os o e ta a ha ny he har s pore y ont i n he 2 oc

Opton Pln ha be gr nt oral a e t pa tculri vi s
i
a d en a ed loc t d o ri a ndi dual.
TheTeesr t ta a ton cl edon M a c 11 201 a t Company is
l ta a r ns c i os
r h , 4, nd he
s ued
25, 1 1 s r ofsock t Tel tat,a is d awara t Te e ta at obt n a
44 , 70 ha es t o esr a nd s ue
r nt o l sr t o ai n

a tonal20% owne s p i e e tupo e r s . NeTALK a s e ut a Pr s or Not i
ddii
r hi nt r s
n xe cie
t
l o xec ed
omis y e n

f orofTee taaf $ 071939. Asa e t i t c osng doc e s Telsr t
av
lsr t or 4, , 84. gr ed o n he l i
um nt , e ta a
a ntd t eei vi st t Boad ofDiecor ofN eTALK. l ng t cosng, he
ppoi e hr ndi dual o he
r
r t s
t
Folowi he l i t
new Boa d ofDie or f NeTALK is d awa
r
r ct s or t
s ue
nuntt t ma
o he nage e empl e of
m nt
oye s
Ne TALK, s ntt t cosng doc e s a l ng f t gr ntofu t a 20% owne s p
t . pur ua o he l i
um nt, lowi or he a
p o
r hi

i e es u exe c s t t i ntted i vi al.Atno tme on orafe M a c 11 201 di
ntr t pon r i e o he de il ndi du s
i ,
tr r h , 4, d
t Boa d ofDie t sc i rorvot o a gr ntofs r st e oyee ofNet
hc r
r c or onsde
e n ny a
ha e o mpl s
TALK,

i udi apur t gr ntof9. m ilon s r st t I vi lDe enda s
ncl ng
pored a
9 li ha e o he ndi dua f nt .
l Oc obe 201 t r l i hi be wee t pa te detror t d.Tel taa e r s d
n t r 4, he eatons p t n he ris e i a e
esr t xe cie

iswa r nto Oc obe 1 2015.( n Oc obe 1 201 t Compa s ae t ti woul
t ra n t r 4,
) t r 5, 4, he
ny t td ha t
d
f m a l i s t s r st Tel s r t onc i r e ve t e cut d or gi lw a r ntf om
or ly s ue he ha e o e t a a e t ec i d he xe e i na r a r

1The$201 St k Opton Pln'lse on t c piai a i t bl a t l r e st t 201
: 3 oc
i
a ' it d he a t lz ton a e cualy ef r o he 2
St k Opto Pl n,a t pa tes a e t 201 da e i a s r ve r seror A cc di y, he
oc
i n a nd he ri gr e he 3 t s c i ne ' r . or ngl t
Co twilr f rt t e 9. m ilon s r asbengpa toft : 2 St ck Opton Pl n.
ur l e e o hes 9 li ha es
i
r he :
201 o
i
a '
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4

Te e taa.On Ocober1 201 t l vi lDef nda spur td t exe cie t
l sr t
t
6, 4, he ndi dua
e nt pore o r s he
m a ge twa r nt a i me ael is dt m s ve a a to l24, 0, s r sof
na men ra , nd m dit y s ue he el s n ddii na 28 000 ha e

soc i t Compa The I vil lDe e
t k n he
ny.
ndi tua f ndant t n e cu e a W rte Acton of
s he xe t d
itn i
Sha e de sdatd Oc obe 1 201 i le ofam e tng,i whih t y pu pore t vot asa
r hol r e
t r 6, 4, n i u
e i n c he r td o e

mao iyofs ae od r i NeTALK t rmo etet redi co st a ha b e a p itdb
j rt h r h le s n t
o e v h h e r t r h t d e n p on e y
e
Teesr t l t rsgna ur lne ,t y pur t t e r ierght a owne soft addii l
l taa. n hei i t e i s he
pored o xe c s i s s
r
he
tona
24, 00 s r ba edupo t e r ieoft ma
280, 0 ha es s
n he xe cs
he nage e wa r t e t
m nt ran , ven hough t e s r s
hos ha e

ofso h notye be n is ed b t ta f rage f rNe TALK t t m .
t ck ad
t e s u y he r nse
nt o t
o he
I t wrten s r hol ra ton,t amountofs e lsed a bengt nn he it ha e de c i he
har s it s i he owne by t
d
he
l vi Def nda swasm ae ily dif r ntfom t numbe ofs r slsed i t
ndi dual e nt
tra l fe e r he
r ha e it n he
c pia iaton t bl dicos d on M a c 3,201 Spe fc l t s r a
a tlz i a e s l e
rh
4. ciialy, he ha e mount lsed a b ng
s it s ei
owne orc r ld by De enda t Ta sKyra des N ik Kyra de ,Ga r Pa nos Angel
d ontole
f n s ki
iki , c
iki s ry xi ,
a
Iii,a St en Hea yha i r s d by 9, 51 s e . t Net
lse nd ev
l d nc ea e
987, 8 har s Neiher TALK norany oft e
hes

de e nt ha pr vi l fld a i o m ai saeme wih t Sec ii sa Excha
f nda s d e ousy ie ny nf r ton t t nt t he urte nd
nge
Co ison c e i owne s p oft s 9. m ilon s r s ordic os d s h pur t
mm s i onc nzng
rhi
he e 9 li ha e ,
s l e uc
pored

owne s p t Teesr t Net
r hi o l taa. TALK. ie ac Oft swrte a ton ofs r hol r wih t
fld opy hi it n c i
ha e de s t he
Sec iisa Exc
urte nd hange Com mison on Oct r 1 201
si
obe 7, 4.
On M a 21 201 De e nt Ne TALK a Shad Stsneypu pore y e e e i o a
y , 5, f nda s t
nd
at
r tdl nt r d nt n
a e m e whe e Ne TALK is d 78, 000 s e ofsoc t M r St t y,pur t y i
gr e nt r by t
sue
250,
har s t k o . asne
poredl n
le ofc uli f e owed t hi a f s r ce r nde e by hi asa f me m e
iu ons tng e s
o m nd or e vi s e r d
m
or r mberoft
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Boa d fom 201 untlJ 6,201 Ad to l o M ay 21 201 Def nda sf rhe c us d
r r
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3. diinaly, n
, 5, e nt u t r a e
t Com pa t is 35, 000 s r ofsoc t Def nt Ta sKyra des N ik
he
ny o s ue 750,
ha es t k o enda s ki
iki , c
Kyra de , xi ,a Hose d, r re yasc
iki s Pa nos nd
f l pu po tdl
ompe a i f due a unpai wa s On
ns ton or
nd
d ge .

5

M a 27, 5, fnda sTa sKyra desa KemehHosel ( pori t ac asa
y 201 Dee nt ki iki nd r t
f d pur tng o t

mao iyo teBo r o Die tr O NeTALK)a o tdan w 2 5Empo e So k Op in
j rt f h ad f r co s f t
d p e e 01
ly e tc to
Pl n, o s ta i 60m ilon s r ofc
a t e sde
li ha es omm on soc f f ur is nc t e oyee .
t k or ut e s ua e o mpl s

OnMa 29 201 ,h I dviu l fn a s( u p rig t c n ttt amao iyo
y , 5 t e n i d a Dee d nt p r o t o o siue j rt f
n
s rhol r oft Compa e cutdawrte s ehol raci t i ras t numbe of
hae des he
ny) xel e
itn har de ton o nce e he
r
a horz d s r soft Com pa fom 300, 000 s r t 1000, 000 s e ofc
ut i e ha e
he
ny r
000,
ha es o , 000,
har s omm on
soc a t alocr at anew pr bre cls ofs oc t co an 1 000, s r sofpr f n'd
t k, nd o s e e
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ee e
soc The s r sc edbyNe TALK a beng owne by t I vi lDe e nt f t s
t k.
ha e ount
t
s i
d
he ndi dua f nda s or hi

pur td wrte s r de a i i l
pore itn ha ehol r cton ncudedt 9. m ilon s e fr tdicl e on Oc obe
he 9 li har s is s os d
t r
1 201 a welast 24 m ilon s r fo t e r ie oft m a eme wa r nt a wel
6, 4, s l he
li haes r m he xe c s
he nag nt ra , s l
ast s e pur tdl g ant t Shad St sne o M a 21 201
he har s pore y r ed o
a t y n y , 5.
Pl ntf fld isM oton f aTe por r Resr i ng Or ron J y 6,201 andt
ai if ie t
i or m a y tani
de
ul
5,
he

Cou tis aTe por r Resr ni Or ron J y 7 201 Pl ntf fl isM oton f a
r sued
m a y tai ng de
ul , 5. ai if ied t
i or

P ei n r Ij n to o J l l , 01 , n Dee d nsfldterc mbn d Re p n et t
r l ay nu cin n u y 0 2 5 a d fn a t ie h i o ie s o s o he
mi
Mo inf raPrlmi r lj n to a dM oint Dis v teTRO onJ l 1 , 01 Pli if
to o ei nay nu cin n t o sole h
o
uy 6 2 5. ant
f
fldisRe l i s p r o isM oin fraP ei n r Ij n to o J y 2 , 01 .Th sCo r
ie t py n u po t f t to o r l ay nu ci n n ul 0 2 5 i u t
mi
hea dor la gum e o t bre son J y 21 201 a extnded t TRO a addii na f te
r a r
nt n he i f
ul , 5, nd e
he
n
to l oure n

da pe ng a e de ir he rng s he e Augus 3, 5.
ys ndi n vi nta y a i c duld
t 201
The Cou tc
r onduc e anevi nta y hea i on Augus 3,4,a 5, 5. By t
td
de ir
rng
t
nd 20l
he

si ai oft pa tes t is sa t he rngweelmie t ()t ownes pi ee tof
tpulton he ri ,he sue that a i
r i td o a. he
rhi ntrs
t pa te i m e a e y prort a i m edi t l f l i t Te e t a a t a a ton on M ar h
he r i s m di t l i o, nd m
a e y olow ng, he l s r t r ns c i
c

11 201 ( t ownes pi eessi mi ocobe 201 a ( e de ec er ngt
, 4;b) he
rhi ntr t n d- t r 4; nd c) vi nc onc ni he

p tn il a t Dee da t whihwo l aiefo is a c o ij n tv rle .
oe ta h nn o fn n s c ud rs r m s u n e f nu cie eif

6

C O N CL USI N S O F LAW
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Too ti ap ei n r ijmcin, p rymus d mo srt :11 g t h r i1a
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o
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u c s n h rt ( ) h t re rb e nu y lbe u frd f h
s
rle i n t rn e ; 3 t a t etr ae e ij r ouweg steh r t rle wo l itit n
eif s o g a td ( ) h t h h e tn d n uy t ih h a m he eif ud nlc o
t nonhe
movantand( t tt e r oft r i woul s et publci ee t'Sc av e
; 4) ha he nty he elef
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r lSc ndlrr Sc av 403F. 1 1 -26( 1hCi. ) ac r Sei lv Le e 234
e. hi e . hi o,
3d 223, 225
1 t r 2005 ; co d ge . por ,
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e
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Th g l fap ei n r ij n to i t : rtc teplitf fo irpaa l ij r a d
e oa o r l ay nu cin s o f oe t h an if r m re rb e nu y n
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s
he denc es nt d t he t ons nd he w r es i
nd

doc e t r e de e i r uce a t hea i Pl ntf ha cl ry esa ihe t ti i lkey
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ai if s i l o e l t
t ai e ng
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ant d o hem f om t 2012 St Opton Pl
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Ba e upont e denc pr e e c ran f c sm ae i lt t Fourh Cl m a e
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s ed'
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1 U. C.j7 p;
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8

3. Noneoft de e nt dicl e t Tel taa orisag nt , i t t Teesr t
he f nda s s os d o esr t
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9

prort sg ngt Tel tat ta a ton) Se Trnsrptof8// 5,a 56: -57: Noto y
i o ini he esr a rns ci . e a ci
51 t 4
9.
nl
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s uc esi
onta c he t
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ei

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c iia is i t sa i TheCour i una et detr i bas on t lm ie r cor be or
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t s bl o e m ne ed he i t d e d f e
i whe t Co pa acualy decde t gr n t 9. m ilon s r st t I vi l
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10

Addii l t Cour de e mi st t bec et Com pa a t l vi l
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milon s r se rocc r d pro t t cl i oft Te e taa ta ac i a t Pl ntf
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13

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p cfc ly i nu tv eif s o g a e Dee d n s l o tn e o u p r t
l
c et Compa t t keva i a tonsunde cove ofç it n s r hol ra tonsbya
aus he
ny o a
rous c i
r
r s te ha e de ci
wr

mao iyo s ae od r . Fu te , t o tn u cier l fo e 7 00 0,0 n w s ae o
j rt f h r h le s' rh r wih u ij n tv ei , v r 0 ,0 0 0 e h r s f
'
e
c
ompa soc wilbe c e t d a ope d f rpur has by t e publc a ac plt l ne
ny t k l
r a e nd ne o
c e h
i , nd om e ey w

c a sofsoc wih unknown rg sa a lteswilbecr a e Furhe ,Pl i ifso
ls
t k t
i ht nd biii
l
e t d. t r antf wnerhi
s p
i e e ti t Compa wilbe sgnii a l diu edt potntaly l st n 5% owne s p i t
nt r s n he
ny l
i fc nty lt o e i l es ha
r hi n he
Com pany.

Alhough c t i Fl i havenotpr vi l c i r t is ,nume ousc t i
t
ours n orda
e ousy onsde ed he s ue
r
ours n

oh r u idcins( oh saea d fd rl h v h l ta s b tn il h n e t teo es i
t e j rs ito b t tt n e ea) a e ed h t u sa ta c a g s o h wn rhp
a dc nr lo ac mo ainma c n ttt irpaa eh nn, o p r o e ofij ci rle .
n o to f o rto y o si e re rbl a fr u p s s nun t eif
u
ve
A c r lng i e e ti acor ai i is fa i pora a uni i e e t Be t
ontoli ntr s n
por ton s tel n m tnt nd que nt r s . zak

Co v Ban On Co u u , W.81 F. p . 7 , 8 ( D. ih. 9 2 .i - h d na o a
, . k e l mb s X , 1 Su p 2 4 2 4 E. M c 1 9 ) lf e e il f
gl
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ontoli
rhi ntr t n r r i ' s l s 'conduc t tunne sarl
'
t ha
ce s iy
f u ta e eforst obt i orpr e vet rg t pari pa ei t ma ge e ofac
r sr t s f t o an
es r he i ht o tci t n he na m nt
ompany,'
'

1
4

m a c tt e ir pa a e ha m . W i dom I Sal s Co.v Lab tBr w i g Co. 339 F. 1 1
y ons iut r e r bl r
s
mp. e
. at e n
,
3d 0 ,

11 -1 ( Ci. 3)
4 5 2d r 200 .

kll s o ac nr cu l ih t ma a ea dc n r l b i s ma c n ttt
i wo s f o ta ta rg t o n g n o to a usne s y o si e
g
u
ir pa a ehann; ha m one a y da esar a i de er m e f s al s a t ta
re r bl
t t
t r mag
e n na quat e dy or uch os ; nd ha
con r t alrghtt pa tci t i t ma
tac u i o ri pae n he nage nta c r ofabusne shasi rnscva uei
me nd ontol
i s
nti i l n

a ofis l t tm a notbea uae y c
nd te f ha y
deq tl ompe a e by monetr da
ns t d
a y mage .'Gilt v Be l k,
s' tiz . loc

1 P. 1 ( o.
71 3d 274 Co1 App.2007)
.

F rh r irp rbeij r h sb e fun i tesg iia t lto o ap ry' sa ei a
u te ,re a a l nu y a e n o d n h infc n di in f a t s tk n
u
t r , d.
2d
busnes .See1 $Equiy I e t s l v Opporuniy fglj.yPar ne s Lt ,427 F.Supp.
i s
nt1
t nv s ment, nc. .
t t
//

4 , 98( D. Y. 0 ) a c r S re v Vti68 F. p 3 9 3 4 ( D. Y.1 8 ) i ae
91 4 S. N. 20 6 ; c o d te t . i , 5 su p. 7 , 8 S. N. 9 8 . i l
t
s
o a diin l h rsi (h c mp n jas wo l t e tn pantfswi irp rbeh r I
f d to a s ae n t e o a y lo ud hrae li if t re a a l am.f
h
a tona s r a es d,t rght ofi entt r pa te wilb i e os d,e nge i
ddii l ha es r ol he i s nnoc hid ris l e nt m e nda rng
pl itfs uli t r dy. Vits F.
an if ' tma e eme ' ti 685 Supp. t38
'
a 4.

He e De e
r , f ndan st s ii d andt doc e sr te tt tt c r ntnumbe of
t e tfe
he um nt el c ha he ure
r
a horze s e i t Com pa i 300, 000 s r sofc mon soc Acc di t t
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ny s
000,
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om
t k.
or ng o he
d m e a y e de ea t c d t t M otonsa Defnda s t si ony,Def nda ss ek t
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nd e nt ' e tm
e nt e o

a horze( notyetis )700, 000a tonals rsofc
ut i but
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000, ddii
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ha e e r d t k. t
De e nt alopr e t gr ntt ms l su l e alpowe t s e
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r o ubs quenty i s t sne
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soc t whom eve t c
t k o
r hey hoos und t t nns oft pur t d A m e
e: er he e
he por e
ndm e t N e TA LK '
nt o t
S

Aril ofI or ai ( c Defnda scam wasadoptdbys r hol c e onM a
tces nc porton whih e nt li
e
ha e der ons nt
y

29,201 ) ûhes ad tona s r co dbeus di t f ur g t Boad)f vai ohe
5 ,' e dii l haes ul
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e n he ut e by he r or rous t r
pur eswihoutf rhe sockhollra oval'and t tihef ur is nc ofaddii ls r
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t
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ce ppr ,'
ha l ut e s ua e
t
tona ha es

15

ofCom mon St k ...
oc
woul ha t efe tofdiu i t votngrg sa coul ha t
d ve he f c
l tng he i iht nd
d ve he
e f c ofdiutng e r ngspe s r, book val pers eofe si sock de s' Se Ex.
fb t
l i a ni
r ha eand
ue
har
xitng t hol r . e
'
5 t K eihl y A fi t DE 33- a 4.
o te
fdavi,
6, t

Ther i no diput bewe n t pa te t Telsr t sownerhi i e es wasdiutd by
es
s e t e he ris hat e ta a'
s p nt r t
le
Def da s pur t g antt t r el of9. m ilon a tona s r s a t e r s of
en nt' pored r o hens ves
9 li ddii l ha e , nd he xe cie
t mana mentwa r ntt wa i ope l c l ul td. The e i lke s no diput t t
he
ge
ra hat s mpr ry a c ae
r s i wie
s e ha

Telsr t sowne s p i er twasf t rdiutd by De enda s pur t gr ntofsoc t
e ta a'
r hi nt es
urhe l e
f nt ' pored a
t ko
t ms l on M a 21 201 The ei no diput t t i t a tona s e a e a ho i e and
he eves
y , 5. r s
s e ha , f he ddii l har s r ut rz d

f l is byt Compa (orwhae ras , lsr a' ownes pi ees wilbe
uly sued he
ny f
tver e on) Tee tat s
rhi ntr t l
f t rsgnii a l diut d,dr ngasf a o y c tt i 4.
urhe i fc nty l e oppi
ar s nl onsiutng 45% owne s p i t
r hi n he
c
ompany. Gi nt tt uli t r le Telsr t s e i t sc e i ade a a i t ti owns
ve ha he tma e e if e ta a e ks n hi as s clr ton ha t

688 % o teCo a y, ihwo l g a timao i c nr l s c d lto a di blt t
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y
y
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on r he c i tes he
ny i he
nc
hi s nsiut s re r bl
ha m .
r

11 Theba a eo i tr ssweg i fvo o i sngij nci r le.
1.
l nc f n e e t ihs n a r f mpo i n u tve eif
Co c mi t et r cieinf ri o ii no ij n tv r le,h Co r a r e wi
n e ng h hid rtro o mp sto f nu cie eif te u t g e s t
h
Pl n ifsposton, ha t r i ltl orno e de e ofr a itc po e i ha m t twilbe
aitf
ii t t he e s ite
vi nc
e lsi t ntal r ha l

s fee b Dee d nt i ij n tv r l fi g a td.
u fr d y fn a s f n u cie ei s rn e
e
Th onl ha s
e y nn uggese by De e nt conc r d ha m t Def nda Ne TALK,
td
f nda s
e ne r o e nt t
a gui t ti c d nota horz t a tona 700, 000 s e a c e t anew pr e r d
r ng ha t oul
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ef re
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t k as
, t he e t Pl ntf
oncusvey hown t tt pot ntalha t t
ha he e i nn o he
l vi De e nt doe notout i t ha m t Pli if
ndi dual f nda s s
wegh he r o a ntf.

16

W ih r a d t t evi ncec
t eg r o he de
once ni pot nta ha t De e ntNe TALK,a1 oft
r ng e i l nn o f nda
t
1 he
e de pr s nt by Def nda swasba e upon s c ai a f t r t Cour fndst t
vi nce e e ed
e nt
sd
pe ul ton, nd, urhe ,he
t i ha
a ha m t Def nda Ne TALK wo d bec edby Def nda s own aci ir s c i of
ny r o e nt t
ul
aus
e nt '
tons re pe tve

tega t go ij n tv r l f
h r ni f nu cie ei .
n
e
I baancnghar hi ,ac t a c i onl t pot nta ha m t t no mova
n l i
ds ps our m y onsder y he e il r o he nnt

ta ma b s frdwhl a ij n to i i pa e o whc wo db s fee pema e tya a
h t y e ufee ie n nu cin s n lc , r ih ul e u frd r n nl s

rs t fteij n to fe gu o Wi e n s Dee d r/ u M o nan Bidv ri Prj c v
eulo h nu cin. a e f l r e s f n e sBle u tis o iest o e t .
d
y
Connau on,76lF. 755,765()hCi. 4) Si lry,i c i rngt potntalha t
ght
3d
6t r 201 . mial n onsde i he e i nu o
anon- o t ac tma dic tpot n i lha m t twoul a iedue t t aci oft nonm van , our y s oun
e ta r ha
d rs
o he tons he

m ova .Nov ts Cons rHeaIh,I .v.
nt
ar i
ume
t nc John ( Johns M e c Cons r
son f
on- r k
ume

Phar euial Co. 290F. 578, ( Ci.
mac tc s ,
3d
596 3d r 2002)
,
He e,Def nda s wine s 's c ai n f us d on t pot n i lha m st t Compa
r
e nt ' t s es pe ulto oc e
wo e ta r o he
ny

i i i notpe te t au horzea tonals r s Theonl t po e i ha m si ntfedby
ft s
nnit d o t i ddii
ha e .
y wo t ntal r de ii
De e
f ndan swe eapot i l n de a t a t i biiy t ofe addii s r st r s
t r
ental oa f ul, nd he na lt o f r
tonal ha e o aie
ca t .Net roft epo e ilha ove rde t ir r bl ha m t twoul be s f e by
pial ihe
hes t nta nns ri he repa a e r ha
d
ufer d

Plitf.l ra ty, fnd nsprs ne n e ie c t theij nci er l fr q e tdb
an if mpo tn l Dee a t e e td o vd n e ha t n u tv ei e u se y
e
Te e taa wili a wa i pe ' e TALK' a lt t c
l sr t l n ny y m de N t
S biiy o onductda t da oper tons
y-o- y
ai ,
i udi s lng a mar tng ispr t m a a t i ispr
ncl ng eli nd
ke i t oduc , nuf c urng t oduc ,o r i t l
t r outng eephonecal .
ls

Fis,Def nda ss c a e t tN eTALK c d bede a ed i def ul ofal n t
rt
e nt pe ult d ha t
oul
clr n a t
oa o
KBM W o l dei i c d nota horz a tona s r s bec us t tl n r quiesNe TALK
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t
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o d et n m
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ri i t

unde t tde .Ho e r De e
r ha bt w ve , f ndant pr e e no e denc t tKBM W ordwi se r s of
s es ntd
vi e ha
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isc
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r i i ht s mm ne ' f nda s r l pec a ed ha t d cu . t r t
,

t e en Ne TALK ha e use isa horz a
he xt t t
s xha t d t ut ied mountofs e ,s ch e usi i
har s u xha ton s
nec s arl duet t Defnda sha ng g a e t m s ves11 milon s ar ofsoc i M a
e s iy
o he e nt vi r ntd he el
4 li h es t k n y
201 Furhe ,Def da sdi n pr s ntany e den c e ni t ou sa ng baa eupon
5. t r
en nt d ot e e
vi ce onc r ng he tt ndi
lnc
t l n,orwhy t Com pany woul notbe a e t tm e y s ts y t l n by is t r sbef e t
he oa
he
d
bl o i l a if he oa
t em
or he
c
onve s on rghtti e
r i i rgger d.

Se ond,De e nt a guet tNe TALK r r sa tona s r t pl
c
f nda s r
ha t
equie ddii l ha es o edgeorgr ntt
a o

potnta i esor , nd t twihoutaddii la horz s e NetW LK wilbe u bl t
e i l nv t s a ha t
tona ut ied har s '
1
l
na e o
r iea tc c piala t r f e i i da rofgoi ou ofbusne s The Cou ti not
as ddiimal a t nd he e or s n nge
ng t
i s.
r s

p rua e ta e tyofij ncier le wil a s t spoe ta cru tn e.NeTALK' o
es d d h t nr nu t eif lc u e hi tn il ic msa c
v
t
S wn
i t e ba
nvesm nt nkert tfedt t overt coure oft e t f ye r , wasuna et pe s de
esi
ha ,
he
s
hr e o our a s he
bl o r ua
tdoz ns' i t sfom i sit i Ne TALK , oram uliudeofr s ,i l ng is
' e 'of nvesor r nve trg n t
f
tt
ea ons nc udi t
r ve poston, a
e nue ii m nage
mentis ,a o he i s .NoneofDe e nt 'wine s
sues nd t r s ues
f nda s t s es
i ntfedapari a i sororl rwhoha ofe e t i to l n ope a i f
de ii
tculr nve t
ende
d f r d o nves r oa
r tng undst t
o he
c
ompany, onl i t s ad torals e woul a t ly bea horz On t conta y, l
but y f he e dii t har s
d c ua l
ut ied.
he
r r al

o De e d n s wi e s so t es b e t e tfe t th r ween p tn iln e tr o ln es
f fn a t' t se n h u j c tsiid ha te e r o o e ta iv so s r e d r
n

o teh rz n, n t a Dee d n NeTALK f l in e e a di o l uh rz d s ae j ti
n h oio a d h t f n a t t
et t e d d d t na a t o ie h r s us n
i
c s t emi beapr pec t ars a s
a e her ght
os t o ie t ome undee ne tm e.The Cour fndst se de e
tnni d i
t s hi vi nc

ofpo e ilhar t s c a i t)beofpr tvevaue.
t nta m oo pe ultve (
obai
l
I
V.

Pl ntf hase t ihe t i i i t publci er s f t Cour t e er
ai if
s abls d hat t : n he
i nt e t or he
t o nt

ij nci r lc .
n u tve eif
A st t fnalc ie i Pl i ifha c e ry s n i woul be i t publc i e es t
o he i rt r ons a ntf s l a l how t
d n he
i nt r t o

e j i a to iaino a dto l h rs fteCo r we et n e tra ij n t n a dal
n on uh rz to f d iina s ae ,I h u t r o ot n e n nu ci n l
o
ow
t a tona s r t beaut i d,c y t uli ael de e m i a ti t ts h aut i ton
he ddii l ha es o
horze ml o tm t y t r ne t ral ha uc
horza i

18

wa unl ul t o rhi a c r oft Compa woul bet us i o c os M e be s
s awf , he wne s p nd ontol he
ny
d hr t nt ha . m r

oft publc(ncudi i t sa lnde s whoha purhas t a tonala horz
he i i l ng nvesor nd e r)
d c ed he ddii
ut ied
s r orbe gr nt s r swou d be om eunwitng c u tesofDef nda s'a tons t ough
ha es
en a ed ha e
l c
ti as ali
e nt c i , hr
no f ul oft i own.Thei e e toft publc,a t abiiy t pr t ctt publc co e fom
a t he r
nt r s he
i nd he lt o o e he
i, m s r

is iga ij cin a dma igszeta a ys ae p rhae o o fr dt t p b i aeb n
sun n nun to n kn t h t n h r s u c sd r fee o he u lc r o a
r
fd i t fr ti tnc ,a notsa ne wih a t i duet Defnda s quesi d a tons
i e n he is nsa e nd
ti d t ny ant
o e nt '
tone c i .

V.

Pr lmi r I j nci nBo
ei na y n u to nd.
Asrq ie b Rue6 () teCo r ma n ti s aprlmi r ij cinwi o t
e ur d y l 5 c,h u t y o mpo e ei nay nun to t u
h

c sde i wha a ntwoul bepr rt pa c t a da ag s t ne by a pa t f
on i rng
t mou
d
ope o y oss nd m es usai d
ry ound

t h v b e wr n f lye j n do rsr ie Th a n o a ij n to b n i amatr
o a e e n o g u l noie r e tan d. e mou t f n n u cin o d s te
wihi t s
t n he ound dic eton oft diti tcou tSe Carlon I
sr i
he src
r, e il mpore s Lt p Fr Pe c l '
tr , d. . ank s e ntl

Gr p,Lt 11 F. 11 11 ( 1hCi.1 .
ou d, 2 3d 25, 27 1 t r 997)
He e,Def nda sdi no pr s nta e denc conc r ngt amountofda
r
e nt d t e e ny vi e
e ni he
mage t
s hey

wo ds fri wr ngul e j ie ma i i dfiutf rteCo r t c luaetea u to a
ul ufe f o f l non d, kng t ifc l o h u to ac lt h mo n f
y
bond.Alhough Def ndant s ult d t tt e e prs val ofNeTALK wa a oxi ael
t
e
s pec ae ha he nt r ie ue
t
s ppr m t y

$ 000 a t e or r queseda l a ta $1, 000bond, hi r ques i i ope be us i
900, nd her f e e t t e s
000,
t s e t s mpr r ca e t
pr s
e uppos st tlm ii t n
e ha i tng he umbe ofa ho i ed s r s how ha adie ti
r ut rz ha es ome
s r c mpac on t
t he
o r tonsa c i d vi lt .ft Co pa whi Def nt ha nots
pe a i nd ontnue abiiy o he m ny, ch enda s ve
hown.
Co i rng t potntalc t f pr pa i f a t e da evi nta y hea i and
nsde i he e i oss or e rng or hr e- y de ir
rng,
c
ompl ng wih t Cour' or r f De e nt 'c
yi
t he
ts de s or f nda s ouns lt ate a or la gum e he rng
e o t nd n a r
nt a i
a t at ee da evi nta y hea i bef et sCour,abond i t a ountoft n t a
nd hen hr - y de ir
rng or hi
t
n he m
e hous nd

dolas( 0, i appr it Pl ntf s ltnde apr rs r t bondt t Co tf is
lr $1 000) s oprae. ai if hal e r ope u ey
o he ur or t
a pr va wihi fvedaysoft da eoft sor r
p o l t ni
he t
hi de .

1
9

CO N CL USI N
O

Ac r ngl i i ORDERED,ADJUDGED, nd DECREED t tPli tfs'M o i f
co di y, t s
a
ha a n if
ton or

Prl n r Ij n t ( 3 )b , ndtes mei h r b GRANTED, sf lo :
ei ay nu ci DE 6 e a h a s ee y
mi
on
a ol ws
( )Defnda sTa sKyikies Stve He l Ke t Hosed,Gar Pa nos Nik
l e nt ki ra d , e n ay, nneh fl ry xi , c
Kyra des Kyraki I sm e sLt , nd Ang a lii ar her by ENJO I
i ki , i des nve t nt d.a
el lse e e
NED

fom e cii a rght r aed t t a tonal9, 51 s r lse i t
r xer sng ny i s elt o he ddii
987, 8 ha es itd n he
Oc obe 1 201 Sc du e 1 i or a i saeme fl d by Ne TALK,a
t r 7, 4, he l 4c nf m ton tt nt ie
t
nd
De e ntNe ALK i he e ENJOI
f nda
W
s r by
NED fom r ogni nga at mpt t
r ec zi ny te s o
e ci e s h s oc
xer s uc t k;

( Defnda s t i a nt, e oye ar heebyENJOI
2) e nt,her ge s or mpl es e r
NED fom execii a
r
r sng ny
rght r a e t t l1 000, s r sofc mon soc t tDef nt pu pore
i s elt d o he 4, 000 ha e
om
t k ha
enda s r td
t is e t t
o s u o hems l si M ay201 i l di e r ii a votng rght r a i t
e ve n
5, nc u ng xe csng ny i i s eltng o
si s r '
ad ha es
,

( Defnda s t i a nt ore oye saehee ENJOI
3) e nt,her ge s, mpl e r rby
NED fom flng a
r ii ny
Am e
ndmentwih t Fl i Sec e a y ofSt t c
t he orda r t r
a e once ni a a e
r ng ny m ndmentt t
o he

Arilso l c r o ain o teCo a y, b e t i e c s n o amao i o
t e f n o p r t f h mp n a s n wrt n on e t f j rt f
c
o
t
y
s e de si l ng'e e ta a LLC orf t ror roft sCour;
harhol r ncudi T l sr t ,
urhe de
hi
t

( Defnda s t i ag t,ore oy saeherbyENJOI
4) e nt,her ens mpl ee r e
NED fom t nga
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