In Re Longfin Corp. Securities Class Action Litigation

Background

The Clerk entered defaults for failure to appear against Longfin Corp. on January 4, 2019; Venkata S. Meenavalli and Vivek K. Ratakonda on April 4, 2019; and Suresh Tammineedi on June 12, 2019. The opinion refers to these defendants collectively as the “Defaulting Defendants.” On May 14, 2020, Judge Denise L. Cote referred the matter to Magistrate Judge Robert W. Lehrburger to conduct an inquest concerning the plaintiffs’ damages. An inquest is a court process for determining the amount of damages after default.

Required submissions

The order requires the plaintiffs to serve the Defaulting Defendants with the order and their proposed findings of fact and conclusions of law by June 26, 2020. The submission must address all damages and any other monetary relief permitted under an entry of default judgment. It must end with a concise statement of the exact dollar amount or other monetary relief sought.

The proposed factual findings must connect the requested damages to the legal claims on which liability has been established, explain how the plaintiffs calculated the amount, and cite supporting affidavits or documentary evidence. The plaintiffs must also submit an affidavit from someone with personal knowledge establishing personal jurisdiction over the Defaulting Defendants and subject-matter jurisdiction. Any allegations about liability in the proposed findings must cite the complaint.

Attorneys’ fees and legal briefing

Any request for attorneys’ fees must include contemporaneous time records identifying each attorney’s service date, hours, and work performed. The plaintiffs must also provide each attorney’s years of bar admission, hourly rate, and information supporting the rate’s reasonableness. The legal conclusions or a memorandum of law must explain the legal basis for any requested damages, interest, attorneys’ fees, and related relief.

Response, hearing, and service

The Defaulting Defendants may respond to the plaintiffs’ submissions by July 24, 2020. The court may decide the damages inquest based solely on written submissions. A party seeking an evidentiary hearing must explain why written submissions are insufficient and describe the witnesses and evidence that would be presented.

The plaintiffs must use the service method previously approved by Judge Cote. If no method had previously been approved, they must serve the Defaulting Defendants by certified mail to each last known address and by email to each last known email address, if any. The order also requires courtesy copies of filed documents to be sent or delivered to Magistrate Judge Lehrburger.

Disposition

The order establishes procedures for the damages inquest. It does not state a final damages amount or announce the result of the inquest.