Professional Documents
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Roberts v. Obelisk
Roberts v. Obelisk
11 Page 1 of 41
EXHIBIT A
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.12 Page 2 of 41
7
SUPERIOR COURT OF THE STATE OF CALIFORNIA
8
COUNTY OF SAN DIEGO
9
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con~~r'~.n~N~r ~
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.13 Page 3 of 41
and on behalf of all others similarly situated ("Plaintiffs") complain against defendants
3 NEBULOUS, INC ("Nebulous"), its wholly owned subsidiary OBELISK, INC.("Obelisk"), and
4 their executive officers DAVID J. VORICK ("Vorick"), ZACH HERBERT ("Herbert"), and Does
6 I. SUMMARY OF ACTION
7 1. This is a class action on behalf of all investors who purchased cryptocurrency mining
8 appliance("Mining Appliance") preorders issued and sold by Defendants from June 1, 2017 through
9 the present("Preorders"). It arises out ofa scheme by Defendants to raise millions ofdollars through
10 the unregistered sale of Mining Appliance Preorders to retail investors in violation of consumer
12 2. Like the better known Bitcoin, the Siacoin and Decred cryptocurrencies can only be
13 generated through a process called mining. The mining process involves competing with other
14 miners to solve complicated mathematical problems with cryptographic hash functions. The first
15 miner to crack the code is rewarded with Siacoin or Decred. The use of specialized hardware is
16 necessary to compete with other miners. As the value of cryptocurrencies increased in 2017 the
l8 3. Against this backdrop, Defendants sold Preorders for Mining Appliances that were to
19 be specially tailored to mine Siacoin and Decred. To market and sell those Preorders, Defendants
20 advertised that their Mining Appliances would meet certain specifications thereby allowing
21 purchasers to reap significant profits once the Mining Appliances were delivered. Defendants also
22 promised to deliver those Mining Appliances by a date certain and informed Plaintiffs and other
23 purchasers that they would be able to receive a full refund if the Mining Appliances were not
25 4. Despite their repeated promises, Defendants failed to ship any Mining Appliances on
26 time,and when they finally did ship some Mining Appliances those Mining Appliances did not meet
~~ the specifications Defendants had promised during the presale. Most importantly, the actual hash
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COMPLAINT 2
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.14 Page 4 of 41
1 rates ofthe Mining Appliances were far below those that Defendants had promised. As a result, the
2 Mining Appliances would not allow purchasers to come close to recouping the cost of their
3 investment. Defendants also refused to provide refunds to Plaintiffs and other purchasers despite
5 5. In short, Defendants promised Plaintiffs and members of the Class the moon,
6 delivered them overpriced paperweights, and then reneged on their promise to provide refunds if
7 they were unable to provide Mining Appliances on time or up to their advertised specifications.
8 6. Both Massachusetts and California securities laws require any security that is offered
9 or sold to be registered. These laws are designed to protect the public by requiring various
10 disclosures so that investors can better understand the security that is being offered or sold, and risks
12 7. Here the Preorders offered and sold by Defendants have all the traditional hallmarks
13 ofa security. Preorder purchasers, including Plaintiffs, provided consideration (in the form of U.S.
14 dollars or Bitcoin) in exchange for their Preorders. Preorder purchasers reasonably expected to
15 derive profits from their Preorders of the Mining Appliances, and Defendants themselves have
l6 frequently highlighted this profit motive. Finally, the development of the Mining Appliances, and
17 the profits that investors expected to derive therefrom, were, and are, based entirely on the technical,
18 managerial, and entrepreneurial efforts of Defendants and other third parties employed' by
l9 Defendants.
20 8. However, Defendants did not register the Preorders with the SEC or any state
21 regulatory agency, and many of the representations Defendants made regarding the Mining
22 Appliances were designed to drive demand of Mining Appliance Preorders, allowing Defendants to
24 II. PARTIES
25 9. Plaintiff Shaun Roberts is an individual who at all times mentioned, was and is a
26 resident of Campbell, California. Plaintiff Roberts purchased two Preorders of DCR1 Miners on or
28
COMPLAIN"T
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.15 Page 5 of 41
1 10. Plaintiff Nicholas Colley is an individual who resides in Portland Oregon. While a
resident of San Marcos, Texas, Plaintiff Colley purchased one Preorder of a SC1 Miner on or about
3 September 5, 2017 for approximately $2,534. While a resident of San Francisco, California,
4 Plaintiff Colley purchased two Preorders ofDCRI Miners on or about January 31, 2018 for 0.22901
5 Bitcoin.
6 1 1. PlaintiffAllan Henry is an individual who at all times mentioned, was and is a resident
9 approximately $60,000. PlaintiffHenry also purchased 17 Preorders ofSC l Miners and 9 Preorders
l0 of DCR1 Miners on or about January 31, 2018 for 1.709 Bitcoin, then valued at approximately
$35,000.
12 12. Plaintiffs are informed and believe, and based thereon allege, that Defendant
l~ Nebulous, Inc. is a Delaware corporation with its principal place of business in Boston,
14 Massachusetts.
15 13. Plaintiffs are informed and believe, and based thereon allege, that Defendant Obelisk,
16 Inc. is a Delaware corporation with its principal place of business in Boston, Massachusetts. Obelisk
17 is Defendant Nebulous' wholly owned subsidiary.
18 14. Plaintiffs are informed and believes, and based thereon allege, that Defendant David
19 Vorick, is an individual who resides in Boston, Massachusetts. Vorick is the CEO and Cofounder
20 of Nebulous and the CEO of Obelisk.
21 15. Plaintiffs are informed and believes, and based thereon allege, that Defendant Zach
22 Herbert, is an individual who resides in Boston, Massachusetts. Herbert is the Vice-President of
23 Operations of both Nebulous and Obelisk.
24 l 6. At all times mentioned herein, each ofthe defendants named herein, including DOES
25 through l0 were the co-conspirators, agents, representatives, alter egos, employers, and/or joint
26 venturers ofthe other defendants,and, in doing the acts and things herein alleged, were acting within
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CO NIPI,~~INT 4
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.16 Page 6 of 41
1 the course, scope, and authority of said agency, service, or employment with knowledge,
3 17. Plaintiffs allege on information and belief that DOES 1-10, inclusive, were
4 individuals, corporations, companies, partnerships, or other business entities. DOES 1-10 were co-
5 conspirators with, or alter egos of, other Defendants in the violations alleged in this Complaint and
(, ~ performed acts or made statements in furtherance thereof. Plaintiffs are presently unaware of the
7 true names and identities of DOES 1-10. Plaintiffs will amend this Complaint to allege the true
8 names ofthe DOE defendants when they are able to ascertain them.
18. This Complaint is filed, and these proceedings are instituted, to recover damages and
to obtain other reliefthat Plaintiffs have sustained due to Defendants' unfair and deceptive business
12 practices and unregistered offer and sale ofsecurities in violation ofboth the Massachusetts Uniform
14 19. Venue is proper in this jurisdiction pursuant to the provisions of California Code of
IS Civil Procedure section 395(a) because none of Defendants reside in the state of California nor have
17 20. This Court has personal jurisdiction over Defendants as a result of acts ofDefendants
18 occurring in and/or aimed at the state of California in connection with Defendants' unfair
19 competition, unregistered offer and sale of securities in violation of the Massachusetts Uniform
20 Securities Act and the California Corporations Code. In particular, Defendants marketed and sold
2l Mining Appliance Preorders to California residents, including Plaintiff Roberts and made the
25 A. DEFENDANTS'BUSINESS OPERATIONS
26 21. Defendants developed Sia, technology that purportedly "connects users who need file
~~ storage with hosts worldwide offering underutilized hard drive capacity" (the "Sia Platform").
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.17 Page 7 of 41
1 According to Defendants, the Sia Platform allows the marketplace for that underutilized hard drive
2 capacity "to run without an intermediary," because "Sia secures storage transactions with smart
3 contracts, creating a more reliable and affordable offering when compared to traditional cloud
4 ~ providers."
5 22. Defendants also developed Siacoin, a cryptocurrency that is intended to be used for
6 renting and hosting cloud storage on the Sia Platform. Users who wish to store their files on the Sia
7 Platform must pay for those services with Siacoins and hosts are paid in Siacoins for renting out
9 23. Like Bitcoins, Siacoins can only be generated through mining. The mining process
10 involves competing with other miners to solve complicated mathematical problems with
11 cryptographic hash functions. The first Siacoin miner to crack the code is rewarded with Siacoin.
12 In order to be competitive with other miners a miner needs specialized hardware. As the value of
13 cryptocurrencies increased in 2017 the market for advanced mining hardware grew similarly.
16 24. Against this backdrop, in June 2017 Defendant Vorick, using the screenname Taek42
18 Circuit ("ASIC") customized for Siacoin mining dubbed the "SC1."~ Vorick announced thaf
19 Defendants would have a presale and that they had "set a conservative shipping date of June 2018."
20 25. Vorick initially stated that the estimated hash rate ofthe SCIs would be "100 GH/s,"
21 stating that "we have confidence that 100 GH/s is a low bar to hit." The hash rate of a Mining
22 Appliance is critical to potential purchasers because it is the speed at which the Mining Appliance
23 is completing an operation in the Siacoin code. A higher hash rate increases a miner's opportunity
24 to. solve the mathematical problem and thereby be rewarded with Siacoin. Thus,. with all else being
25 equal,a higher hash rate increases expected profitability. Defendant Herbert acknowledged as much
26
27
Obelisk's Sia ASICs —Full Details,
28 hops://~n~ww.reddit.com/r/siacoin/comments/6jIgy~/obelisks sia asks full details/ (last visited October 24, 2018)
COMPLAINT 6
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.18 Page 8 of 41
1 stating "[i]ncreased hashrate means we stay more competitive if competition swoops in; or as we
3 26. Vorick stated that the presale would be open for seven days. He added that Defendants
4 "may pre-sell additional batches before the first batch ships," but promised that "[t]he first batch
5 will have priority when we begin shipping, and if the later batches will be shipping shortly after,
6 those later batches will be sold at a higher price. People who buy in on the first batch will receive
7 both price preference and shipping date preference as a reward for taking on the most risk."
8 (emphasis added).
9 27. Defendants also promised that units sold in the first presale ("Batch 1") would come
10 with a six week exclusivity period—meaning that only those Batch 1 Mining Appliances would be
11 able to mine for at least six weeks. This is important because a period of exclusivity would allow
12 the Batch 1 Mining Appliances to generate a higher proportion ofthe network's total hash rate and
14 28. Vorick later reiterated that "[1]attest delivery [of the SCIs] would be in June 2018.
15 The target is to ship several months earlier than that." When asked what would happen in the event
16 the SC 1 s"do not ship by [J]une 2018?" Vorick responded "[y]ou will be eligible for afull refund."
17 (emphasis added).
18
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.19 Page 9 of 41
1 29. Vorick also told prospective purchasers, "[tJhe US has very strict consume°
2 protection laws, if we are late iiz delivering the units, customers have the right to request a.firll
3 refund, and the law will enforce d~eir ability to receive that refund." (emphasis added).
4 30. Defendant Herbert similarly promised that presale purchasers would receive refunds
5 if Defendants were unable to deliver the SC 1 s by June 2018. When specifically asked, "[i]f
6 something happens along the way and you're unable to ship the unit will a refund be issued?"
7 Defendant Herbert responded "[i]f we do not ship by June 30, 2018, under US law we are legally
15 31. Defendants doubled down on this promise on several occasions. For example, on or
16 about November 9, 2017 Defendant Vorick stated "you can legally demand a refund if we produce
17 units that do not perform according to specifications we promise in the presale, at least if you are
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.20 Page 10 of 41
32. Similarly, on or about January 1, 2018 Defendant Vorick stated "the FTC has very
harsh rules. If you miss performance targets, you have to give everyone full refunds."
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COMPLnIN'1' d]
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37. Also on or about November 14, 2017, Defendants answered questions regarding
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their DCRI presale during a Reddit Ask Me Anything titled "Obelisk AMA,Ask the Obelisk
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Team Anything About Their Upcoming Decred ASIC!"2 Defendant Vorick, using the
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screenname Taek42 answered the question "What have we done.to make sure Obelisk will
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succeed?" by stating in part:
20
A big company killer in the ASIC space is deadlines. It's extremely rare that an
21 ASIC company ships miners on-time, to the point that if you can get away without
doing a presale, you rea/ly shouldn't clo a presale. Consumer protections in the
22 US are very strict, and missing deadlines is a big deal to the FTC. When we
announced our presale, we said that the shipping date would be June 30th, 2018 or
23 earlier. This was a heavily buffered number. Our internal timeline said we could
get chips out as early as February. We've since hit a few delays, and unfortunately
24 there's no way we could make a February deadline at this point. However, we're
still well ahead of our June 30th deadline. I do not want to disappoint anyone in
25 case we hit more delays, so I will not be revealing what our current internal deadline
is, other than to say that we're still confident in the June 30th deadline.
26
27 2 Obelisk AMA,Ask the Obelisk Team Anything About Their Upcoming Decred ASIC!,
htt~/h~..~vw,reddit.comJr/ciccred/c;c~mments/7cug48/obelisk ama ask the obelisk team anvthin~ about/ (last visited
28 November 5, 20l 8).
COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.22 Page 12 of 41
2 specifications. It can be really tempting to make big promises, because you get these chip
4 39. However, Defendant Vorick would do just that in the same post, stating "[i]n the name
5 of caution, we've decided to announce our unit specs at 800 GH/s for the SC1 miners, and 1500
6 GH/s for the DCR1 miners. They will potentially be much faster, but the reality is that we don't
7 really know until we are putting all the pieces together for the first time." Neither the SCl nor the
8 DCR1 would achieve hash rates close to the minimum standards promised by Defendant Vorick.
9 40. When asked further about these specifications, Defendant Vorick stated "[w]e are
10 legally required to deliver units that meet specifications, or otherwise offerfull refunds to our
11 customers. It puts us in a really bad position to advertise specs we can't follow through with, and
12 we wowldn't give hashrate estimates that we didn't have high confidence we could achieve."
l3 (emphasis added).
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18 41. A Reddit user going by the screenname "cryptostuffs" responded to this by asking,
19 "[y]es you're legally required, but what happens if you run out of money? E.g. you spent all the
20 money of your presale customers and then figure out you can only deliver halfthe promised speed.
2l What happens then?" Defendant Vorick responded to this by stating "[w]e are confident that we
22 have the financial means to produce the units, including accounting for mistakes." He continued,
24 42. Obelisk's Vice President of Sales, Ken Carpenter, also discussed the importance of
25. the DCR1's specifications. Using the screenname "SiaBillionaire" he stated "we know many were
26 waiting to see the competition's specs. Now that you can see that the DCR1's performance numbers
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.23 Page 13 of 41
1 and price per GH are much better than the competition, I believe that we will sell quite a few more
3 43. On or about November 17, 2018, Defendants also posted an advertisement on their
4 website and Twitter that stated that the DCR1's price per GH/s would be 33% lower than the
5 competition's price.
O~Ilsk ~QbelisKTechMQ ~ 17 tVov ~af7 v
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Obelisk's DCRi is the best option on the market.for ~decradproject ASIA
mining. Sale ends in t week!
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21 44. On or about November 21, 2017, a user in Defendants' Discord chat channel asked
22 "so lets say[DCRI]doesn't get over a 1000 units then we are looking at 3.57 DCR a day; which
23 is like $107.1; crazy." Defendant Vorick replied stating "yes, full ROI [return on investment] in
24 under a month."
25 45. Defendants first presale closed on November 24, 2017 and Defendants announced
26 that they sold 3,516 SCIs and 2,888 DCRIs for $2,499 each, raising over $16 million.
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COMPLAINT 12
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.24 Page 14 of 41
46. After conducting the first SC1 and DCRI presale, Defendants conducted a second
3 presale between December 31,2017 and January 31, 2018 ("Batch 2"). During the Batch 2 presale,
4 Defendants sold 3,648 SC1 miners and 3,693 DCR1 miners for $1,599 each, raising over $11.7
5 million.
47. When asked when Defendants intended to ship the Batch 2 Mining Appliances,
7 Defendant Herbert indicated that they would ship "our batch 2 of units approximately 6 weeks
9 48. Defendant Obelisk proudly proclaimed on Twitter that the Batch 2 Mining Appliances
11 49. Even today, Defendant Obelisk's own site states that "[o]ur target ship date is August
13 50. As ofthe date ofthis filing, Defendants have not delivered any ofthe Batch 2 Mining
16 51. Despite their repeated promises, Defendants failed to ship any Batch One Mining
17 Appliances by June 30,2018,and when they finally did ship some Mining Appliances in late August
18 those miners did not meet the specifications Defendants had promised during the presale. Most
19 importantly, the actual hash rates of the Mining Appliances were far below those that Defendants
20 had promised. As a result, the Mining Appliances would not allow purchasers to come close to
22 52. In May 2018 it became clear that Defendants would be unable to deliver Mining
23 Appliances with the promised specifications. Defendant Herbert posted a Medium update that
24 stated that the SC1's hash rate would be only 550 GH/s-250 GH/s below the promised
25 specifications. That same update stated that the DCRI's hash rate would be only 1200 GH/s-300
26 GH/s below the promised specifications. When the Mining Appliances were finally delivered their
27 actual hash rates were even lower. The SCI's actual hash rate was only 400 GH/s—half the
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CONIPLAIN'I' ~3
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.25 Page 15 of 41
1 promised specifications—and the DCR1's actual hash rate was only 900 GH/s-600 GH/s below
3 53. Following this update, when asked why Defendants would ship miners that they were
4 not happy with, Defendant Vorick stated "because we are in a lot of legal trouble if we don't send
5 miners out by June 30th and every day that we delay increases our legal exposure."
6 54. On August 3, 2018 Defendant Vorick admitted that Defendants had failed to ship
7 Mining Appliances on time and failed to deliver upon the specifications Defendants promised,
8 stating "I apologize for the lack ofupdates on our end, I apologize for missing the shipping deadline,
9 and for shipping hardware that is no longer on track to ROI [return on investment]. Starting today,
l0 Obelisk is accepting refund requests." He also acknowledged that the SC 1's "hashrates are currently
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Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.26 Page 16 of 41
l 55. Defendant Vorick continued, stating "[i]t's no secret that Obelisk does not have
2 enough money to refund all customers. We are not [sure] how many refund requests we will get,
3 however we are quite confident it will be beyond our financial means to provide refunds to everyone
4 who requests. We will figure out how to provide refunds after we know the total number of refunds
5 that must be issued and after we know how much money remains after all units have been built."
6 56. Defendant Vorick then directed customers to submit their refund requests by email
7 and Plaintiffs did in fact submit refund requests. However, Defendants failed to issue any refunds
8 to Plaintiffs or members of the class. Defendant Vorick later acknowledged this failure to honor
9 Defendants' earlier promises stating,"we do not have the money to be able to honor refunds."
]0 57. Defendant Herbert also acknowledged Defendants' failure to deliver miners with the
]1 promised specifications. When asked if 800 GH/s was a good hash rate, he replied "for SC1 []?
12 that's the original promised spec." He later followed up saying "eek lawyers would ask me to say
13 `estimated' spec."
14 58. Defendants themselves acknowledge that they did not complete shipping Batch 1
l5 Mining Appliances until October 18, 2018—nearly four months after they promised they would be
16 delivered.
17 59. In short, Defendants promised Plaintiffs and members ofthe class the moon,delivered
l8 them an overpriced paperweight months late, and then reneged on their promise to provide refunds
2l 60. Following Defendants' refusal to provide refunds to Plaintiffs they engaged counsel
22 to send a demand letter to Defendants. This letter was sent to Defendants on August 23, 2018 and
23 laid out Plaintiffs' claims and once again requested that Defendants refund Plaintiffs' Preorder
24 purchases of the Mining Appliances. Defendants, through their counsel, once. again refused to
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.27 Page 17 of 41
61. Plaintiffs and the Class invested U.S dollars and Bitcoin to purchase Mining
_~
Appliance Preorders. Investment of both fiat and digital currency meets the first prong of Howey.
4
62. Defendants sold Mining Appliance Preorders to the general public through their
S
website obelisk.tech.
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63. The profits of each investor in the Mining Appliance Preorders are inextricably
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intertwined with those of all other purchasers because the hash rate of each SCl and DCR1 are the
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same as all other SC 1 s and DCR 1 s.
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64. The profits of Plaintiffs and the Class are also interwoven with and dependent upon
l0
the efforts and success of Defendants. Plaintiffs and the Class had an entirely passive role vis-a-vis
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Defendants and relied entirely on Defendants to design and deliver profitable Mining Appliances as
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promised.
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65. Defendant Obelisk acknowledged that it was offering the "Mining Appliance based
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on pre-orders to help finance the development and manufacturing of the [] Mining Appliance."
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Similarly, in a May 8, 2018 Medium Post titled "Obelisk Update: January-May 2018" Defendant
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Herbert described Obelisk as "a community funded hardware company."
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2. Mining Appliance Presale Investors Had a Reasonable Expectation of
l8 Profits
19 66. Investors in the Mining Appliance Presale, including Plaintiffs and the Class, made
20 their investment with a reasonable expectation of profits. In fact, the sole purpose of Mining
21 Appliances was to mine the Siacoin or Decred ciyptocurrencies and thereby allow purchasers to
22 generate a profit.
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.28 Page 18 of 41
2 Defendant Obelisk's website even contained a "Profits Calculator" which purported to allow
3 potential purchasers to calculate the profits they could generate by inputting the number of Mining
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]7 68. Defendant Vorick similarly touted the profits that presale purchasers could generate
18 'I with the Mining Appliances, telling prospective purchasers that if 1,000 SCIs sell then each one
19 would generate 20,000 Siacoins (approximately $300) per day and that if 10,000 SCls sell then
20 each would generate approximately 2,000 Siacions(approximately $30) per day. Defendant Vorick
21 continues stating that "if 10,000 units sell, it'll take about 80 days for you to end up with more
22 siacoins (starting from when the miners arrive) to have more than you would have gotten if you just
24 69. The reality, however, is that the Mining Appliances did not generate close to the
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.29 Page 19 of 41
3 70. Plaintiffs and the Class have entirely passive roles vis-a-vis the successful
4 development and delivery of profitable Mining Appliances. Rather, as Defendants' own marketing
5 makes clear, the successful development of the Mining Appliances, and the profits the Class
6 reasonably expected to derive from investing in the Mining Appliance Presale are dependent solely
7 on the technical, entrepreneurial, and managerial efforts of Defendants and their agents and
8 employees.
q 71. Plaintiffs and the Class reasonably expected Defendants to provide significant
]0 managerial efforts, to develop and manufacture the Mining Appliances. Defendants themselves
11 repeatedly represented that they would provide significant managerial efforts to achieve these
13 72. The Mining Appliances derive their value entirely from their specifications, and
14 particularly their hash rates, which were dependent entirely on the technical, entrepreneurial, and
15 managerial efforts of Defendants. The Preorders of Mining Appliances were thus an investment in
16 a common enterprise, with an expectation of profits, solely from the efforts of Defendants.
18 73. This suit is brought as a Class action pursuant to section 382 of the California Code
COMPLAINT
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4 75. Plaintiff reserve the right to amend the Class definition if further investigation and/or
5 discovery indicate that the Class definition should be narrowed, expanded, or otherwise modified.
6 76. Plaintiff does not, as of yet, know the exact size of the Class. However, Plaintiff is
7 informed and believes that there are thousands of Class members. The members of the Class are
9 77. The Class is readily ascertainable and identifiable. It can be identified by reference
11 78. Questions of law and fact common to the Class that predominate over any questions
12 that may affect only individual members of the Class, including, but not limited to:
13 (a) Whether the representations made by Defendants regarding the Mining Appliances'
15 (b) Whether Defendants' representation that Mining Appliance presale purchasers would
16 receive a full refund if the Appliances were not delivered on time or did not meet the
18 (c) Whether Defendants' sale of Mining Appliance Preorders was a securities offering
20 (d) Whether Defendants' sale of Mining Appliance Preorders was a securities offering
22 (e) Whether Defendants' sale of Mining Appliance Preorders violated the registration
24 (fl Whether Defendants' sale of Mining Appliance Preorders violated the registration
26 (g) Whether Defendants Nebulous, Vorick, and Herbert ("Control Person Defendants")
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COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.31 Page 21 of 41
(h) Whether the Control Person Defendants were control persons under the California
Corporations Code;
3 (i) The type and measure of damages suffered by Plaintiff and the Class.
4 79. Lead Plaintiffs will fairly and adequately protect the interests of the Class because
5 Plaintiffs' claims are typical and representative of the claims of all members of the Class. Lead
7 80. Lead Plaintiffs' claims are typical of the claims of all Class members, as all members
9 81. There are no unique defenses that may be asserted against Lead Plaintiffs
10 individually, as distinguished from the other members ofthe Class, and the reliefsought is common
11 to the Class. Plaintiffs are typical of other members ofthe Class, do not have any interests that are
12 in conflict with or are antagonistic to the interests ofthe members ofthe Class, and have no conflict
13 with any other members of the Class. Plaintiffs have retained competent counsel experienced in
14 securities, consumer protection, and class action litigation to represent themselves and the Class.
IS 82. A class action is superior to other available methods for the fair and efficient
16 adjudication of this controversy since joinder of all Class members is impracticable. Furthermore,
17 as the damages suffered by individual Class members may be relatively small, the expense and
18 burden of individual litigation make it impossible for Class members to redress individually the
19 wrongs done to them. In the absence of a class action, Defendants will retain the benefits of their
20 wrongful conduct.
23 Unfair and lleceptive Practices in Violation of Mass. Gen Laws Chapter 93A, Section 2
25 83. Plaintiffs, on behalf of themselves and all others similarly situated, reallege and
26 incorporate herein by reference each and every allegation contained in the preceding paragraphs of
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COMPLAINT 20
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.32 Page 22 of 41
84. Defendants, and each of them, by engaging in the conduct described above, have
2 engaged in unfair and deceptive acts or practices in violation of Mass. Gen Laws Chapter 93A,§ 2
3 Such unfair or deceptive acts or practices include without limitation the following:
4 a. Defendants made false and/or misleading representations to Plaintififs and the ',
11 Class regarding the availability of a full refund if the Mining Appliances were delivered late or did
16 Telephone Order Merchandise Rule, 16 C.F.R. § 435, by failing to provide refunds to Plaintiffs and
17 the Class for Mining Appliances that were delivered late and did not meet the advertised
18 specifications.
20 purchasers, and others were material and deceived or had the tendency or capacity to deceive or
22 86. Defendants knew or should have known that the representations made to consumers,
23 prospective purchasers, and others were false and/or misleading. Defendants knew or should have
24 known that its acts or practices were unfair and deceptive acts in violation of Mass. Gen. Laws
25 Chapter 93A, § 2.
26
~~
28
COMPLAIN"1'
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.33 Page 23 of 41
1 87. Defendants acquired millions of dollars from purchasers by reasons of their unfair or
2 deceptive acts or practices, causing purchasers to suffer an ascertainable loss by paying for Preorders
4 88. Defendants unfair or deceptive acts and practices resulted in harm to consumcrs.
6 Unregistered Offer and Sale of Securities in Violation of Mass. Gen Laws Chapter 110A, ~~
8 89. Plaintiffs, on behalf of themselves and all others similarly situated, reallege and
9 incorporate herein by reference each and every allegation contained in the preceding paragraphs of
II 90. Mass. Gen Laws Chapter 110A, Section 301 provides that, with limited exceptions,
12 "[i]t is unlawful for any person to offer or sell any security in the commonwealth," unless that
13 security has been registered. Section 401 in turn provides that "[a]ny person who offers or sells a
14 security in violation ofl' Section 30l is "liable to the person buying the security from him, who may
15 sue either at law or in equity to recover the consideration paid for the security, together with interest
16 at six per cent per year from the date of payment, costs, and reasonable attorneys' fees, less the
17 amount of any income received on the security, upon the tender of the security, or for damages if
19 91. The sale of SCI and DCR1 Mining Appliance Preorders were securities within the
21 92. Defendants, and each of them, by engaging in the conduct described above within
22 Massachusetts, directly or indirectly, sold and offered to sell securities to Plaintiffs and members of
23 the class.
24 93. Plaintiffs and members of the Class purchased SC1 and DCR1 Preorder securities
25 from Defendants.
26 94. No registration statements have been filed with any state or federal government entity
27 or have been in effect with respect to any of the offerings alleged herein.
28
COMPLAINT 22
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.34 Page 24 of 41
1 95. By reason of the foregoing, each of the Defendants have violated Sections 301 and
4 Plaintiff and members of the Class have suffered damages in connection with their respective
7 Control Person Liability for Unregistered Offer and Sale of Securities in Violation of Mass.
9 97. Plaintiffs, on behalf ofthemselves and all others similarly situated, reallege and
10 incorporate herein by reference each and every allegation contained in the preceding .paragraphs of
12 98. This Count is asserted against the Control Person Defendants under Section 410(b) of
14 99. The Control Person Defendants, by virtue oftheir offices, stock ownership, agency,
15 agreements or understandings, and specific acts were, at the time ofthe wrongs alleged herein, and
16 as set forth herein, controlling persons within the meaning of Section 410(b) ofthe Massachusetts
17 Uniform Securities Act. The Control Person Defendants, and each ofthem, had the power and
18 influence and exercised the same to cause the unlawful offer and sale of SCl and DCR1 preorder
20 100. The Control Person Defendants, separately or together, possess, directly or indirectly,
21 the power to direct or cause the direction of the management and policies of Defendant Obelisk,
23 101. The Control Person Defendants, separately or together, have sufficient influence to
25 102. The Control Person Defendants, separately or together,jointly participated in, and/or
27
28
COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.35 Page 25 of 41
1 103. By virtue of the conduct alleged herein, the Control Person Defendants are liable for
2 the wrongful conduct complained of herein and are liable to Lead Plaintiffs and the Class for
6 Defendants)
7 1. Plaintiff Roberts, on behalf of himself and the California Subclass, realleges and
8 incorporate herein by reference each and every allegation contained in the preceding paragraphs of
10 2. Defendants, and each of them, by engaging in the conduct described above, have
1 ~' committed acts of unfair competition, as defined by Business and Professions Code section 17200.
12 Such unfair or deceptive acts or practices include without limitation the following:
I
( Class regarding the specifications of the Mining Appliances.
20 Class regarding the availability of a full refund if the Mining Appliances were delivered late or did
25 Telephone Order Merchandise Rule, l6 C.F.R. § 435, by failing to provide refunds to Plaintiffs and
26 the Class for Mining Appliances that were delivered late and did not meet the advertised
27 specifications.
28
CO NI PLA 1 N"1' 24
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.36 Page 26 of 41
3 constitutes an unfair business act or practice within the meaning of Business and Professions Code
4 section 17200.
C and securities laws, including but not limited to those laws referenced above or violates the policy
9 ' purchasers, and others were material and deceived or had the tendency or capacity to deceive or
ll 4. Defendants knew or should have known that the representations made to consumers,
12 prospective purchasers, and others were false and/or misleading. Defendants knew or should have
13 known that its acts or practices were unfair and deceptive acts in violation of Business and
16 deceptive acts or practices, causing purchasers to suffer an ascertainable loss by paying for Preorders
22 7. Plaintiff Roberts, on behalf of himself and the California Subclass, realleges and
23 incorporate herein by reference each and every allegation contained in the preceding paragraphs of
25 8. The sale of SCl and DCR1 Mining Appliance Preorders were securities within the
27
28
COMPLAINT 2.5
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.37 Page 27 of 41
1 9. Defendants, and each of them, by engaging in the conduct described above within
2 California, directly or indirectly, sold and offered to sell securities to Plaintiff Roberts and members
4 10. Plaintiff Roberts and members of the California Subclass purchased SC1 and DCR1
6 1 1. No registration statements have been filed with any state or federal government entity
7 or have been in effect with respect to any ofthe offerings alleged herein.
8 12. By reason of the foregoing, each ofthe Defendants have violated Sections 251 l 0 and
11 Plaintiff Roberts and members ofthe California Subclass have suffered damages in connection with
14 Control Person Liability for Unregistered Offer and Sale of Securities in Violation of
16 14. Plaintiff Roberts, on behalf of himself and the California Subclass, realleges and
17 incorporate herein by reference each and every allegation contained in the preceding paragraphs of
19 15. This Count is asserted against the Control Person Defendants under 25504 of the
21 16. The Control Person Defendants, by virtue of their offices, stock ownership, agency,
22 agreements or understandings, and specific acts were, at the time ofthe wrongs alleged herein, and
23 as set forth herein, controlling persons within the meaning of Section 25504 of the California
24 Corporations Code.
25 l 7. The Control Person Defendants, and each ofthem, had the power and influence and
26 exercised the same to cause the unlawful offer and sale of SC1 and DCR1 preorder securities as
27 described herein.
28
COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.38 Page 28 of 41
18. The Control Person Defendants, separately or together, possess, directly or indirectly,
2 the power to direct or cause the direction of the management and policies of Defendant Obelisk,
4 19. The Control Person Defendants, separately or together, have sufficient influence to
6 20. The Control Person Defendants, separately or together,jointly participated in, and/or
8 21. By virtue of the conduct alleged herein, the Control Person Defendants are liable for
9 the wrongful conduct complained of herein and are liable to Plaintiff Roberts and the Class for
12 WHEREFORE,Plaintiff demands judgment on his behalf and that ofthe Class as follows:
13 1. Declaring that this action may be maintained as a Class action under California Code 'I
14 of Civil Procedure section 382 and California Rule of Court 3.670, et seq., certifying Plaintiffs as
15 representatives of the Class and designating his counsel as counsel for the Class;
20 4. That judgment be entered against Defendants and in favor of Plaintiffs and each
21 member of the Class they represent, granting the remedy of recession, and/or awarding
22 compensatory damages in favor of Plaintiff and the Class against all Defendants, jointly and
24 proven at trial;
27
28
COMPLAINT 27
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.39 Page 29 of 41
l 6. Imposing a constructive trust over the assets and funds raised by Defendants through
9 12. For such other and further relief as may be deemed just and proper.
10
11
13
By:
14 James Q. Taylor-Copeland
17
18
19
20
21
22
23
24
25
2
(
27
~g
COMPLAINT
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.40 Page 30 of 41
CM-010
ATTORNEY OR PARTY Vv1TH0UT kTTORNEY Name StBtO Bdf nU+~IbC4 0titl a0d4'S5); FOR COURT USE ONLY
James Q. Taytor-Copeland (Sf3~} 2$9143)
james(n~tay3orcopelandlaw.~om
5_ 01. W. Broadway Suite 800 ELECTROf~IGALLY FILE
San Diego, CA 92L14i 1 ~1 ~y ,f,1 Superirr ~~urt of ralifr~rnia,
TELEPHONE NO.; V t 9-'it/0-49'tY Fax rao.: t;r,~~y rf San Diego
ATroPNEY Foy rName,: Shaun Roberts, Nic~hol~s Cone ,and Allan Hen
SUPERiORCOURTOFCAtIFORNtA,COUNTYOF ~afl Dlegfl ~'~1'~~~~~$ ~ ~ 1 :08:Q8 ~'lai
STREE7AODRESS: ~3~ ~I, Bj(jd(~~t~y l~lerk Qf the ~uperic~r ~ovrt
MAI~INGADDRESS: 3~Q W. Bi~OilUWiiy By hrianc DaUid,L~e~ut+~ Uierk
can RNo z~P coos: San Taiega 921 Ol
r~zANc~+~+AMe: Central
CA5E NAME:
Shaun Roberts et. al. v. Obelisk, Inc. et al.
GlVI~ CASE COVER SHEET casE Nunneer~:
Complex Case pesignation 37.2018.00D58495•CU•8T•CTL
Q Unlimited Q Limited
(Amount ~ Counter 0 Joinder
(Amount ''UpGE:
demanded demanded is Filed with first aPPearance bY defendant Judge Katherine Bakal
exceeds $25,OOQ) $25,000 or less) (Cal. Rules of Court, rule 3.402) DEBT:
sterns J^O UG'WW lNUS( L!C (.Utf71J1C'tCU (SGC ILJpUI,tW(fS VIl jJOyC c~.
Check one box below far the case type that best describes this case:
Auto Tort Contract Prouisionaily Complex Civil Litigation
~ Breach of conkracUwarranty (0&) {Cat. Rules of Court, rules 3.4Q0-3.403)
Auto (22)
Uninsured motorist (46} 0 Rule 3.740 collections (09} Q AntitrustlTrade regulation (03)
Other PUP~iWD {Personal Injury/P~operty ~ Other collections (09} Q Construction defect (1U)
DamageM+rongtni Death) Tort 0 insurance coverage {18) Mass tort (40}
Asbestos(04) Q ether contract {37) Q Securities litigation (28)
Product liability {24) Reai Property Q EnvironmentaUToxic tors (30)
Q Medical malpractice(45) Q Emir~eni domainlinverse Insurance coverage claims arising from the
0 Other f'ilPONVD (23) condemnation (14) above listed provisionally complex case
types(4i)
tN—
on7-PlIPDNVO {Other) Tort ~ ~Nrongful eviction (33)
Enforcement of Judgment
~ v ~ Business tortJunfair business prattles (O7) ~ ether real property (26)
O c~v~i ~~9ms tos) Unlawful Detainee Q Enforcement of judgmenl (20)
0
f-1 De/amation (13) Commercial (31) Miscellaneous Civil Complaint
t~_— ,.!t Fraud {16)
.,.— Q Residential (32) D RICO (77)
L~.J inte~lectua~ properly {19) Q Drugs(38} {)ther complaint (not speci7ied above)(42}
Professional negligence {25} Judicial Review Miscellaneous Civil Petition
Other non-PUPD/Wt)tort (35) 0 Asset forfeiture {05} Q Partnership and corporate governance (21)
Employment Petition re: arbitration award (11)
Other' petition (not specified above)(43}
Wrongful termination {36) Writ o~ mandate (02)
j_J Qther employment (1
2. This case is is not comt~lex under rule 3.400 of the California Rules of Courk. If the case is complex, mark the
factors requiring exceptional judicial management:
a. Q Large number of separately represented parties d. Q Large number of wiknesses
b.Q Extensive mption practicz raising difficult or novel e.Q Coardinatio~ with re{ated actions pending in one or mere Courts
issues that wilk be time-consuming to resolve in other counties, states, or countries, or in a federal court
c. Q Substantial amount of documentary evidence f. Q Substantial postjudgment juddal supervision
3. Remedies sought {'check att that ~ppty): a.0 monetary b.~ nonmanetary; declaratory or injunctive relief c. 0punitive
4. Number of causes of ackion (specify): G
5. This case ~ is ~ is not a class action suit.
6. !f there are any known related cases, file and serve a notice of related case. {Y a may use form CM-015.)
Date: November 19, 2018
James Taylor-Copeland
CfYPE OR PRINT NA+v1E) (SIGNATURE OF PARTY pR ATTORNEY FOR PARTY}
• Plaintiff must file this cover sheet with the first paper flied in the action or proceeding (except small claims cases or cases filed
under the Probate Code, Family Code, or Welfare and institutions Code}. {Cal. Rules of Court, rule 3.220.} Failure to file may result
in sanctions.
File this cover sheet in addition to any cover sheet required by local court rule,
• If this case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on aU
other parties to the action or proceeding.
• Unless this is a collections ease under rule 3.740 or a complex case, this cover sheet will be used for siatisticai purposes onl~.
aaetof2
Cad. Rites or Court, rules 2.9t1, 3,:20. 3.400-3.4D3, 3.7-00:
Farm Atlopled for Men0alCry USe
Judidal Counral at Calilomia
CIVIL CASE COVER SHEET CaL Standa~d5 of Judida~ RdministraGon, StC. x.70
CM-010(Rev. Jvly i, 2007) ww~v.courtinPo.ca.gov
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.41 Page 31 of 41
CM-010
INSTRUCTIONS 4N HOW TO COMPLETE THE OVER SHEET
To Plaintiffs and Others Filing First Papers. If you are filing a first paper for example, a complaint} in a civil case, you must
complete and file, along with ypur first paper, the Civil Case Cover Sheet contained on page 1. This information wil! be used to compile
statistics about the types and numbers of cases filed. You must compie4e items 1 through 6 on the sheet. fn item 1, you must check
ane box for the case type that best describes the case. !f the case fits both a general and a more specific type of case listed in item 1,
check the more specific one, if the case has multiple causes of action, check the box that best indicates the primary cause of action.
To assist you in comple#i~g the sheet, examples of the cases that belong under each case type in item 1 are provided below. A cover
sheet must be filed only with your initial paper. failure to file a cover sheet with the first paper filed in a civil case may subject a party,
its counsel, ar both to sanctions under rules 2.30 and 3.220 of the Galifomia Rules of Court.
7a Parties in Rule 3.740 CoNections Cases. A "collections case" under rule 3.740 is defined as an action for recovery of money
owed in a sum stated to be certain that is not more than $25,004, ezciusive of interest and attorney's fees, arising from a transaction in
which property, services, or money was acquired on credit. A collections case does not include an action seeking the following: (1}tort
damages, (2) punitive damages, (3) recovery of real property, (4) recovery of personal property, or (~} a prejudgment writ of
attachment. The identification of a case as a rule 3.7A0 ~ofiections case on this form means that it will be exempt h'om the general
lime-#or-service requirernsnts and case management rules, unless a defendant files a responsive pleading. A rule 3.740 collections
case will be subject to the requirements far serrice and obtaining a judgment in rule 3.740.
To Parties in Complex Cases. In complex cases only, parties must also use the Civit Case Cover Sheet to designate whether the
case is complex. If a plaintiff believes the case is complex under yule 3.400 of the California Rules of Court, this must be indicated by
completing the appropriate boxes in items 1 and 2. ~f a plaintiff designates a case as complex, the cover sheet must be served with the
complaint an all parties to the action. A defendant may file and serve no later than the time of its first appearance a joinder in the
plaintiffs de$ignatian, acounter-designation that khe case is riot complex, or, if the pisintiff has made no designation, a designation that
the case is complex.
CASE TYPES AND EXAMPLES
Auto Tort Contract i'rov{sionaily Complex Civil Litigation {Cal.
Auto (22}-Personal Injury/P~opeRy Breach of ContracilWarranty {OB) Rules of Court Rules 3.400-3.403}
Damage/Wrnngiul Death Breach of Reniafttease AntitrusUfrede Regulation {OS)
Uninsured Motori&i (4fi)(i/the Cortract (not unlawful detainer Construction Defect (14)
case i»voNes an uninsured or w~ongfu!eviction) Claims Involving Mass Tort(44)
motorist ctsim subject to Cor~tracUWaaanty Breach-Seller Securities litigation (26}
ar4rtration, check this item P~ainiiif(not fraud or negligence) Environmentalf[axic Tort(30)
instead of Auto) Negligent Breach of Ca~tracU Insurance Coverage Claims
O;her P1/PDlUYL1(Personat injuryt Warranty fa~ising from provisionally complex
Prape►ty DamagetWtongful Death} Other Breach of Coniract/Warranty case rypelisted above) {41}
Teri Collections (e.g., money owed, open Enforcement of Judgment
Asbestos j04) book accounts} (09) Enforcement of Judgment (2A}
Asbestos Proper#y Damage Col4ection Case-Seller P►aintitt Abstraet of Judgment (Out of
Other Promissory NotelColiections County}
Asbestos Personal Injury/
~e$e Confession of Judgment (non-
Wrongful Death
Producl Liability (not as4estos or Insurance Coverage (not pmvisiona!!y domestic relations)
complex) (18} Sister Siaie Judgment
toxiCJenvirpnrrrentalJ (24)
Medical Malpractice (d5) Auto Subrogation Administrative Agency Award
Medical Malpractice- Other Coverage (not unpaid taxes)
Physidans 8 Surgeons Other Contract (37j Petition/Certification of Enkry of
Contractual Fraud Judgment on Unpaid Taxes
Other Processional Health Care
Malpractice Other Contract Dispute Other Enforcement of Judgment
Case
Other PI/PDtWD (23} Real Property
Eminent DomaiMlnverse Miscellaneous Civil Complaint
Premises Liability (e.g., slip
Condemnakion (14} RICO (27}
and fall)
Wrongtui eviction (33) Other Complaint (not specined
lntenlional Bodily injury/PDMtD
above) (42)
{e.g.. assault, vandaNsm) Other Real Property (e.g., quiet title) {2S)
Intentional InOiction of Dedaratary Relief' Oniy
Writ of Pgssession of Real Property Injunctive Relief Only (r+an-
Emotional Distress Mortgage Foredosure harassment)
Negligent Infliction of Ouiet Title Mechanics Lien
Emotional Distress Other t2eal Property {»ot eminent
Olher Commercial Complain
Qther PI[Pl~NUD domain, landlo~dRenant or
foreclosure) Case (non-tortlnon-complex)
Non-PUPD1Nt0 (flther) Tort Ocher Civil Complaint
8usrness TortNnfair Business Uniawtul detainer (non-torUnon-complex)
Practice {d7} Commercial {31] Miscellaneous Civil Petition
Civil Rights {e.g., discrimination, Residential (32} Partnership and Corporate
false aRest) (not civil Drugs (38) {if the case involves i!lega! Governance (21)
harassment) {48} drugs, check this item; otherwise, Other Petition (not specified
Defamation {e.g., slander, iihelj report as Commercial or Residential) above) (43)
('I 3) dudiciat Review Civil Harassment
Fraud {i6) Asset Forfeiture {d5} Workptace Vio►ence
intellectual Property (19~ Petition Re: Arbitration Award {i i) ElderlDependent Adult
Professional Negligence {25} Writ of Mandate {Q2} Abuse
Legal Malpractice Writ-Administrative Mandamus Election Contest
ORher Professional Malpractice Writ-Mandamus on Limited Court Petition for Name Change
(not medical arlegaq Case Matter Petition for Relief From Late
Other tVon-P!lPDAND Tort (35) Writ-Other Limited Court Case Claim
Employment Review Other Civil Petition
Wrongful Termination (36) Other Judiraal Reviaw {39)
Other Employment (15) Review at HeaHh Oncer Order
Notice of Appeal-labor
Commissioner Appeals
CM-010 (Hev. July t, 2009] ~~ Page 2 of 2
CIVIL CASE DOVER SHEET
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.42 Page 32 of 41
POS-010
AT70RNEY OR PARTY WITEIOUT ATTORNEY (Name;Stafe Bar number, andadc6'ess): FOR COURT t/SE ONLY
James Taylor-Copeland(SBN 284743)
501 W.. Broadway Suite 800 ELE~TR~ClNI~.~LL'~ FILE[
San Diego, CA 92101 5up~rior court ~f ~alif~mia,
~c~urvEy of ~ar~ C1i~~a
TELEPHONE NO.: ()19-734-II77O FNC NO.(Optional):
E-MAIL ADDRESS(OpLonap: ~a171eS~Q tfly~OTCOpe~211d~aW.00171 ~ ~~ ~~~ ~ ~ ~~ ~~~ ~~~ '~
ATTORNEY FOR (Name): SY11Ul] ROUES,Nicholas Colley, and .Allan I-Ienry ~ ~I~rk gat the Superior ~~Urt
~y E- Fllin~,Llepi~,lk~' ~I~fit
SUPERIOR COURT OF CALIFORNIA, COUNTY OF San Diego
STREETADORESS: 33Q W. Bj'Oa.(~Wa,~1
MAILING ADDRESS: 33O W. Broadway
CITY AND ZIPCADE: ,,7`d]1 Lje~T~ 9211
BRANCH NAME: Ce]"]tT[LI
37-2018-00058465-CU-BT-CTL
DEFENDANTlRESPONDENT; Ob0I151C, Inc., et. al.
ReF. No. or Flle No.:
PROOF OF SERVICE OF SUMMONS
b. []~. Person (other than the party in item.3a) served on behalf of an entity or as an authorized agent(and not a person
under item 5b on whom substituted service was made)(specify name and relationship to the party named in item 3a):
The Company Corporation as registered agent for service of pxocess
4. Address where the party was served:
25l Little Falls Dr., Wilmington, DE 19808
5. I served the party (check proper box)
a, ~ by personal service. I personally delivered the documents listed in item 2 to the party or person authorized to ,
receive service of process for the party (1) on (date): (2) at (time):
b. Q by substituted service. On (date): at (time): I left the documents listed in item 2 with or
in the presence of(name and title orrefationship to person indicated in item 3):
(1} Q (business) a person at least 18 years of age apparently in charge at the once or usual place of business
of the person to be served. I informed him or her of the general nature of the papers.
(2) Q (home)a competent member of the household (at least 18 years of age) at the dwelling house or usual
place of abode of the party. I informed him or her of the general nature of the papers.
(3) ~ (physical address unknown) a person at least 18 years of age apparently in charge at the usual mailing
address of the person to be served, other than a United States Postal Service post office box. I informed
him or her of the general nature of the papers.
C4) Q I thereafter mailed (by first-class, postage prepaid) copies of the documents to the person to be served
at the place where the copies were left(Code Civ. Proc., § 415.20). I mailed the documents on
(date): from (city): or Q a declaration of mailing is attached.
C5) Q I attach a declaration of diligence stating actions taken first to attempt personal service.
Paae 1 of 2
Code of Civil Procedure,§417.10
FwmAdoptedforMandatoryUse
Judicial Council of California
~ PROOF OF SERVICE OF SUMMONS
POS-010 [Rev. January 1, 2007)
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.43 Page 33 of 41
CASE NUM06R:
PLAINTIFF/PETITIONER: Sh~illll RObOYtS, Et. 1I.
37-2018-00058465-CU-BT-CTL
DEFENDANT/RESPONDENT: ObeIISIC, .I1lC., et. al.
5. c. 0 by mail and acknowledgment of receipt of service. I mailed the documents listed in item 2 to the party, to the
address shown in item 4, by first-class mail, postage prepaid,
(~) on (date): November• 20,2018 (2) from (city): San Diego
(3) ~ with two copies of the Notice and Acknowledgment of Receipt and apostage-paid return envelope addressed
to me. (Attach completed Notice and Acknowledgement of Receipt.)(Code Civ, Proc., § 415.30.)
(4) ~~' to an address outside California with return receipt requested. (code Civ. Proc., § 415.40.)
8. ~ I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
or
9. 0 I am a California sheriff or marshal and I certify that the foregoing is true and correct.
James Taylor-Copeland
(NAME OF PERSON WHO SERVED PAPERS/SHERIFF OR MARSHAL) (SIGNATURE)
~~ /~ ~~~
L~>
~~~~~~~~ If YES,enter delivery address below: ❑ No
F'OS-010
ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, end address): ~ FOR COURT USE ONLY
Janes Taylor-Copeland(SBN 284743)
50] W.Broadway Suite 800 ELE~TF~C]MI~~LLY FILEa
San Diego, CA 92101 ~up~riar ~~urt cif kalif"~mia,
C,~unt~y ~f fan Qie~Q
TELEPHONE NO.: 6~ 9-~]3~}-8~]~]O FAX NO.(Opflonal):
E-MAIL ADDRESS (Optional): ~$171eS~t2.y~OCCOpElST1CII~.W.00171 ~ ~~ ~~~~ ~ ~ ~~'~~'~p
Nicholas Colley, and Allan Henry
ATT'ORNEYFOR (Name): SI]2U11 ROb81'CS~ ~I~ri~ ~f thz 5u~eri~r ~~u~t
SUPERIOR COURT OF CALIFORNIA, COUNTY OF San Diego ~~' E- Flllfti~, azp1,lt~+ ~lef`k
STREE7ADDRESS: 330 W.Bp08CIW2~
MAILING ADDRESS: 33O W.BC01CIWa~
CITY AND ZIP CODE: Sa11 Dl~gO 92I O J
BRANCH NAME: Ce17tT'a~
37-2018-00058465-CU-BT-CTL
DEFENDANT/RESPONDENT: Obelisk, Inc., et. al.
Ref. No. or File No.:
PROOF OF SERVICE OF SUMMONS
b. Q~ Person (other than the party in item 3a) served on behalf of an entity or as an authorized agent(and not a person
under item 5b on whom substituted service was made)(specify name and relationship to the party named in item 3a):
The Corporation Trust Company as agent for service of process
4. Address where the party was served:
1209 Orange St., Wilmington, DE 19801
5. I served the party (check proper box)
a, Q by personal service. I personally delivered the documents listed in item 2 to the party or person authorized to
.receive service of process for the party (1) on (date): (2) at (time):
b. ~ by substituted service. On (date): at (time): I left the documents listed in item 2 with or
in the presence of(name and title or relationship to person indicated in item,3):
(1) ~](business) a person at least 18 years of age apparently in charge at the once or usual place of business
of the person to be served. I informed him or her of the general nature of the papers.
(2) ~ (home)a competent member of the household (at least 18 years of age) at the dwelling house or usual
place of abode of the party. i informed him or her of the general nature of the papers.
~3) ~ (physical address unknown) a person at least 18 years of age apparently in charge at the usual mailing
address of the person to be served, other than a United States Postal Service post office box. I informed
him or her of the general nature of the papers.
(4) ~ I thereafter mailed (by first-class, postage prepaid) copies of the documents to the person to be served
at the place where the copies were left(Code Civ. Proc.,§ 415.20). I mailed the documents on
(date): from (city): or C]a declaration of mailing is attached.
~5) C] i attach a declaration of diligence stating actions taken first to attempt personal service.
Page 1 of 2
— 37-2018-00058465-CU-BT-CTL
DEFENDANT/RESPONDENT: OUOIISIC, ~IIC., et. al.
5. c. ~~ by mail and acknowledgment of receipt of service. I mailed the documents listed in item 2 to the party, to the
address shown in item 4, by first-class mail, postage prepaid,
(~) on (date): November 20, 20l 8 (z) from (city): San Diego
(3)0with two copies of the Notice and Acknowledgment of Receipt and apostage-paid return envelope addressed
to me. (Attach completed Notice and Acknowledgement of Receipt.)(Code Civ. Proc., § 415.30.)
(4) 0~ to an address outside California with return receipt requested. (Code Civ. Proc., § 415.40.)
6. The "Notice to the Person Served"(on the summons) was completed as follows:
a, 0 as an individual defendant.
b• [_] as the person sued under the fictitious name of (specify):
~• 0 as occupant.
d• ~~ On behalf of(specify): Obelisk, In C.
under the following Code of Civil Procedure section:
Q 416.10 (corporation) D 415.95 (business organization, form unknown)
Q 416.20 (defunct corporation) Q 416.60(minor)
0 416.30 (joint stock company/association) Q 416.70(ward or conservatee)
D 416.40 (association or partnership) ~ 416.90 (authorized person)
D 416:50 (public entity) 0415.46 (occupant)
~ other:
7. Person who served papers
a. Name: Jannes Taylor-Copeland
b: Address: 501 W.Broadway Suite 800, San Diego, CA 92101
c. Telephone number: (19-734-8770
d. The fee for service was: $ 0
e. F am:
(1) ~] not a registered California process server.
(2) C~] exempt from registration under Business and Professions Code section 22350(b).
(3) Q a registered California process server:
(i) 0 owner 0employee 0independent contractor.
(ii) Registration No.:
(iii) County:
8 0 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and corregt.
or
9. C] I am a California sheriff or marshal and I certify that the foregoing is true and correct.
James Taylor-Copeland
(NAME OF PERSON WHO SERVED PAPERS/SHERIFF OR MARSHAL) (SIGNATURE )
A. Signature
~ Complete items 1, 2, and 3.
X D Agent
e Print your name and address on the reverse
D Addressee
so that we can return the'card to you.
B. Received by (Pri. ed Name C. Date of Delivery
■ Attach this card to the back of the mailpiece,
or on the front if space permits. ~ I~/ o[~
1. Article Addressed to: ~ D. Is delivery address different from item 1? ~Yes
If YES, enter dellv ~dr~sAvef4~~r~ Q p No
~DLUu
~ ,, ,.
_::. ~,,,a:;
SUMMONS (
FOR COURT USE ONLY
SOLO PARR USO DE LA CORTE)
(CITACION JUDICIAL)
NOTICE TO DEFENDANT: ELE~TRt~F~ll~}~LLY FILED
(AV/SO AL DEMANDADO): S~p~ri+ar ~~urt oaf Galifami~,
~~~ant}r ref ~~n Cli~~~
OBELISK,INC., a Delaware corporation, Additional Parties Attachment
form is attached ~~~~' ~~$ ~ ~ ~ ~~~~~~ ''~"~
~I~ri~ of- the 5uperiar ~aurt
YOU ARE BEING SUED BY PLAINTIFF: ~~y ha~nc CJav~id,Q~psrty ~I~rk
(LO ESTA DEMANDANDO EL DEMANDANTE):
SHAUN ROBERTS,NICHOLAS COLLEY,and ALLAN HENRY,
individually and on behalf of all others similarly situated
NOTICE! You have been sued. The court may decide against you without your being heard unless you respond within 30 days. Read the information
below.
You have 30 CALENDAR DAYS after this summons and legal papers are served on you to file a written response at this court and have a copy
served on the plaintiff. A letter or phone call will not protect you. Your written response must be in proper legal form if you want the court to hear your
case. There may be a court form that you can use for your response. You can find these court forms and more information at the California Courts
Online Self-Help Center (www.courtinfo.ca.gov/selfhelp), your county law library, or the courthouse nearest you. If you cannot pay the filing fee, ask
the court clerk for a fee waiver form. If you do not file your response on time, you may lose the case by default, and your wages, money, and property
may be taken without further warning from the court.
There are other legal requirements. You may want to call an attorney right away. If you do not know an attorney, you may want to call an attorney
referral service. If you cannot afford an attorney, you may be eligible for free legal services from a nonprofit legal services program. You can locate
these nonprofit groups at the California Legal Services Web site (www.lawhelpcalifornia.org), the California Courts Online Self-Help Center
(www.courtinfo.ca.gov/selfhelp), or by contacting your local court or county bar association. NOTE: The court has a statutory lien for waived fees and
costs on any settlement or arbitration award of $10,000 or more in a civil case. The court's lien must be paid before the court will dismiss the case.
~AVISOI Lo han demandado. Si no responde dentro de 30 dias, !a torte puede decidir en su contra sin escuchar su version. Lea la information a
continuation.
Tiene 30 DfAS DE CALENDARIO despues de que le entreguen esta citation ypapeles legates pare presenter una respuesta por escrito en esta
torte y hater que se entregue una copra al demandante. Una carte o una Ilamada telefdnica no to protegen. Su respuesta por escrito tiene que ester
en formato legal correcto si desea que procesen su caso en la torte. Es posible que hays un formulario que usted pueda user pare su respuesta.
Puede encontrar estos formularios de la torte y mas information en el Centro de Ayuda de /as Cortes de California (www.sucorte.ca.gov), en la
biblioteca de leyes de su condado o en la carte que le quede mas cerca. S'i no puede pager la cuota de presentation, pida al secretario de la torte
que le de un formulario de exencion de pago de cuotas. Si no presents su respuesta a tiempo, puede perder el caso par incumplimiento y la torte le
padre quitar su sueldo, dinero y bienes sin mss advertencia.
Hay otros requisitos legates. Es recomendable que Ilame a un abogado inmediatamente. Si no conoce a un abogado, puede llamar a un servicio de
remision a abogados. Si no puede pager a un abogado, es posible que cumpla con los requisitos pare obtener servicios legates gratuitos de un
programs de servicios legates sin fines de lucro. Puede encontrar estos grupos sin fines de lucro en el sitio web de California Legal Services,
(www.lawhelpcalifornia.org), en el Centro de Ayuda de las Cartes de California, (www.sucorte.ca.gov) o poniendose en contacto con la torte o el
colegio de abogados locales. AVISO: Por ley, la torte tiene derecho a reclamar las cuotas y los costos exentos par imponer un gravamen sabre
cualquier recuperaci6n de $10,000 6 mss de valorrecibida mediante un acuerdo o una concesidn de arbitraje en un caso de derecho civil. Tiene que
pager el gravamen de la torte antes de que la torte pueda desechar el caso.
The name and address of the court is: cAse NUMSER: ~} 2a1S OOD58~65-CU-BT-CTL
(Numerodel Caso):
(EI Hombre y direction de la torte es): San Dlego SUpe17o1' CoUI't (Ceflti'a]~
330 W.Broadway ~
San Diego, CA 92101
The name, address, and telephone number of plaintiffs attorney, or plaintiff without an attorney, is:
(EI Hombre, la direction y el numero de telefono del abogado del demandante, o del demandante que no tiene abogado, es):
James Taylor-Copeland, 501 W. Broadway Suite 800, 619-734-8770,[email protected]
3. ~ on behalf of (specify):
SUM-200(A
SHORT TITLE: case NUMaeR:
List additional parties (Check only one box. Use a separate page for each type of party.):
Page 2 of 2
Page 1 of 1
Form Adopted for Mandatory Use
Judicial Council of California
ADDITIONAL PARTIES ATTACHMENT
SUM-200(A)[Rev. January 1, 2007] Attachment to Surn~nons
Case 3:18-cv-02898-LAB-BGS Document 1-2 Filed 12/28/18 PageID.51 Page 41 of 41
CASE ASSIGNMENT
Judge: Katherine Bacal Department: C-69
A Gase management statement must be completed by Counsel for all parties or self-represented litigants and timely filed with the tour#
at least 15 days prior to the initial case management canferenc~.(San Diego Local Rules, Division il, CRC Rule 3.725).
All counsel of record or parties in pro per shall appear ai the Case Managemenk Conference, be familiar with the case, and be fully
prepared to participate effeckively in the hearing, including discussions o► AOR' options.
IT IS THE DUTY fJF EACH PLAINTIFF tANp CRASS-COtu1PLAINANTj TO SERVE A COPY OF TNIS NOTICE WITH THE
GOMPLAlNT (AND CROSS-CflMPLAlNT), THE ALTERNATIVE DISPtI'iE RESOLUTION {ADR) INFORMATION ~t~RM (SDSC
FORM #GIV-730), A STlPUTATION fi0 USE ALTERNATIVE DISPUTE RESQlUT10N (ADR) (SflSC FORM #CIV-359), AND OTHER
DOCUMENTS AS SET QUT I{U SDSC LQCAL RULE 2.1.5.
ALl COUNSEL WILL BE EXPECTED Tfl BE FAMILIAR WITH SUPERIOR COURT RULES WMI~H HAVE BEEN PU6LISNEO AS
DfViSIC?N tl, AND WILL BE STf21CTLY ENFORCED.
TIME STANDARDS: The following timeframes apply to general civil cases and must be adhered to unless you have reques#P~i end
been granted an extension of time. Gei~erai civil eases consist of a!i civil cases except: smaA claims proceedings,
civil petitions, uniawtui detainer proceedings, probate, guardianship, conserva#orship, juvenile, parking citation
appeals, and family Caw proceedings.
COMPLAINTS: Complaints and all other documents listed in SQSC Local Ruie 2.1.8 must be served on al! named defendants.
dEFENdANT'S APPEARANCE: Defendant must generally appear within 3Q days of service of the complaint. (Plaintiff may
stipulate to no more than 15 day extension whicfi must be in writing and filed with the Court.} (SDSC Local Rule 2.1.6)
JURY FEES: fn order io preserve the right to a jury trial, one party for each side demanding a jury #rial shall pay an advance jury fee in
the amount of one hundred fifty dollars {$150} on ar before tha dale scheduled for the initial case management conference in
the action.
WiANDATQRY eFILE: Case assigned io mandatory eFile program per CRC 3.400-3.403 and SDSC Rule 2.4.71. Ail documents must
be eFiled at www.o~elegal.com. Refer to General Order in re procedures regarding electronically imaged court records,
elscironic filing, and access to electronic court records in civil and probate cases qr guidelines and procedures.
COURT REPORTERS: Court reporters are not provided by the Court in Civil cases. See policy regarding normal availability and
unavailability of otficial court reporters at www.sdcourt.ca.gov.
'ALTERNATIVE DISPUTE RESOLUTION {ADR): THE COURT ENCQURAGES YQU TQ CONSIDER UTILIZING VAR(OU5
ALTERNATIVES Ta TRIAL, INCLUDING MEDIATIOf~ AND ARBITRATION, PR{Oft TO THE CASE MANAGEMENT CONFERENCE.
PARTIES MAY FILE THE ATTACHED STIPULATIQN TO USE ALTERNATIVE DtSPU7E RESOLUTION (SpSC FORM #CIV-359).