CW Baice Limited v. Wisdomobile Group Limited

I. BACKGROUND

1 A. Factual Background 2 Defendant Wisdomobile Group is a holding company that operates through numerous other 3 companies, including Defendants Wisdomobile Limited and Wisdomobile HK. Verified Complaint 4 ¶ 16, ECF No. 1 (“Compl.”). Defendants’ business model consists of “distribution of mobile 5 applications, mobile games and contents [sic], an overseas application store, big data processing, 6 mobile applications, and mobile advertising.” Id. On June 4, 2019, Plaintiff invested $13,880,000 7 for 5,330,261 Series A+ Preferred Shares, or then 8.82% of the issued share capital, of Defendant 8 Wisdomobile Group. Id. 9 In November and December 2019, Plaintiff learned that the founder and numerous 10 employees of Defendant Wisdomobile Group were detained and arrested for suspected criminal 11 activity involving computer fraud. Id. ¶ 18. As a result of the investigation and fallout, Defendants 12 were forced to cease business activities. Id. 13 On March 17, 2020, Plaintiff sent a notice to Defendants and others requesting that 14 Defendants “stop all alleged illegal conducts [sic] and refrain from conducting new business 15 without first obtaining the approval of…