LG Capital Funding, LLC v. VAPE Holdings, Inc.

Filing 34

MEMORANDUM AND ORDER ADOPTING REPORT AND RECOMMENDATIONS re Minute entry dated 8/17/16: No party has objected to the R&R, and the time for doing so has passed. When deciding whether to adopt an R&R, a district court "may accept, reject, or modif y, in whole or in part, the findings or recommendations made by the magistrate judge." 28 U.S.C. § 636(6)(1). To accept those portions of the R&R to which no timely objection has been made, "a district court need only satisfy itself th at there is no clear error on the face of the record." Jarvis v. N. Am. Globes Fund L.P., 823 F. Supp. 2d 161, 163 (E.D.N.Y. 2011) (internal quotation marks omitted). The Court has reviewed the R&R and the record and, finding no clear error, adopts Magistrate Judge Bloom's recommendations. Ordered by Judge Carol Bagley Amon on 11/17/2016. (Fernandez, Erica)

FILED

IN Cl.ERK'8 CFAQE
U.S. DISTRiCTCOURTt:.0.N.Y.

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

----------------------------------------------------------x
LG CAPITAL FUNDING LLC,

* NOV 18 2016 *
BROOKLYN OFFICE

Plaintiff,

NOT FOR PUBLICATION
MEMORANDUM & ORDER
!6-CV-2217 (CBA) (LB)

-againstV APE HOLDINGS, INC.,

Defendant.
----------------------------------------------------------x

AMON, United States District Judge:
On May 3, 2016, plaintiff LG Capital Funding LLC ("LG Capital") filed a complaint

against defendant Vape Holdings, Inc. ("Vape Holdings") claiming that Vape Holdings had
willfully refused to honor LG Capital's notice of conversion and share reserve. (D.E. # 1.) At a
settlement conference on June 9, 2016, the parties reached a settlement. (D.E. dated June 9, 2016.)
On July 13, 2016, LG Capital filed a letter asserting that Vape Holdings had breached the

settlement agreement and that, as a result, LG Capital was seeking preliminary relief against Vape
Holdings. (D.E. # 21.) On August 4, 2016, LG Capital filed a proposed order to show cause why

a preliminary injunction should not issue enjoining Vape Holdings from (1) "issuing further
conversions under any and all outstanding convertible instruments during the pendency of [the]

action;" (2) "from issuing transfer agent instructions to reserve shares for the purposes of
conversions under any and all outstanding convertible instruments during the pendency of [the]
action; and" (3) "from issuing any further conv~rt'ible notes or other debt instruments during the
pendency of [the] action." (D.E. # 25.) On August 5, 2016, this Court endorsed the order to show
cause and referred the matter to the Honorable Lois Bloom, United States Magistrate Judge, for
report and recommendation ("R&R"). (D.E. # 26.) On August 17, 2016, at the hearing on LG
Capital's motion for preliminary relief, Magistrate Judge Bloom issued the R&R on the record,

1

recommending that this Court (1) deny LG Capital's request for preliminary relief and (2) enter a
judgment in favor of LG Capital against Vape Holdings in the amount of $151,000, which is the
amount that the parties had agreed upon in the settlement agreement. (D.E. dated August 17, 2016;
D.E. # 32.) Additionally, Magistrate Judge Bloom set forth on the record that the deadline for the
parties to file objections to the R&R would be August 31, 2016.
No party has objected to the R&R, and the time for doing so has passed. When deciding
whether to adopt an R&R, a district court "may accept, reject, or modify, in whole or in part, the
findings or recommendations made by the magistrate judge." 28 U.S.C. § 636(b)(l). To accept
those portions of the R&R to which no timely objection has been made, "a district court need only
satisfy itself that there is no clear error on the face of the record." Jarvis v. N. Arn. Globex Fund.
L.P., 823 F. Supp. 2d 161, 163 (E.D.N.Y. 2011) (internal quotation marks omitted).
The Court has reviewed the R&R and the record and, finding no clear error, adopts
Magistrate Judge Bloom's recomme~d'ations. ·
SO ORDERED.

1,

s/Carol Bagley Amon

2016
Dated: November /
Brooklyn, New York

Carol Bagley A.dion / \ /
United States Olstri(!_ffidge

2