Baliga v. Link Motion Inc.
- Victor Marrero
- 1:18-cv-11642
- U.S. District Court · Southern District of New York
- 4
In Baliga v. Link Motion, Judge Marrero reserved Shi’s motion and extended an injunction until the receiver’s expense accounting is resolved.
The order directly affected Vincent Wenyong Shi, court-appointed receiver Robert W. Seiden, the receiver’s agent Francis “Lilin” Guo, and Link Motion Inc. shareholder meetings. It kept the temporary restriction on those meetings in place while the receiver’s expense accounting was reviewed.
What happened
In Baliga v. Link Motion Inc., Vincent Wenyong Shi asked the court to stop the court-appointed receiver from holding shareholder meetings for Link Motion Inc. The court had temporarily stopped those meetings while it considered the request.
The dispute concerned expenses incurred by the receiver’s agent in China, Francis “Lilin” Guo. Those expenses supported converting Guo’s debt into company shares, potentially giving Guo substantial voting power. The receiver provided receipts, but they were all in Chinese and had not been certifiedly translated.
Judge Victor Marrero did not decide whether the expenses were legitimate. He reserved decision on Shi’s motion, extended the existing injunction until the expense accounting is resolved, and directed the receiver to provide a certified translation. The receiver may later seek reimbursement for translation costs.
The detailed version
- Baliga v. Link Motion Inc. · No. 1:18-cv-11642
- Victor Marrero
- June 21, 2023
Background
On May 26, 2023, Vincent Wenyong Shi filed a proposed order seeking emergency relief that would prevent court-appointed receiver Robert W. Seiden from holding an Extraordinary General Meeting of Link Motion Inc. shareholders. The court temporarily barred Seiden and his agent in China, Francis “Lilin” Guo, from proceeding with shareholder meetings, including meetings noticed for May 30 and May 31, until further order.
The receiver responded to Shi’s request and submitted numerous receipts concerning Guo’s expenses under a court-approved Convertible Note Agreement. Under that agreement, the expenses formed the basis for converting Guo’s debt into equity in Link Motion, allowing Guo to obtain substantial voting power.
Dispute over the expenses
The receiver maintained that Guo’s expenses were legitimate. Shi said that, to the extent he could translate the receipts, they appeared to show luxury-hotel stays, personal expenses, and transfers of money to Guo. The receiver did not provide certified translations, citing the cost and the lack of funds in the receivership, and argued that Shi should pay the translation cost in advance.
Ruling
Judge Victor Marrero held that the court could not rely on either side’s description of the expenses without certified translations. The court therefore reserved its decision on Shi’s motion and extended the injunction previously entered until the receiver’s accounting of expenses—including Guo’s expenses—is resolved.
A hearing before Magistrate Judge Figueredo was scheduled for June 27, 2023, with instructions for the receiver to address Guo’s expenses and compensation. The receiver was directed to provide a certified translation of the Chinese-language documents and could seek reimbursement for translation costs after incurring them, as appropriate. The order did not decide whether Guo’s expenses were valid or whether Shi’s requested relief should ultimately be granted.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.