Tang Capital Partners, LP v. BRC Inc.

Background

The provided text is a letter from defendant BRC Inc. asking for a pre-motion conference before filing a motion to compel discovery. BRC said plaintiff Tang Capital Partners, LP had refused or failed to provide several categories of discovery. The letter states that the parties had exchanged letters and emails and had repeatedly conferred by telephone but had not resolved their disagreements.

Discovery disputes described by BRC

BRC sought discovery concerning custom and practice in similar de-SPAC transactions involving warrants. BRC stated that Tang alleged a Form S-4 was sufficient to register both warrants and the shares underlying them, while BRC maintained that the generally used approach was to register the warrants on one form and later register the warrant shares on a Form S-1. BRC argued that information about Tang’s awareness of this practice was relevant to the parties’ dispute.

BRC also alleged that Tang did not follow an agreed process for collecting, reviewing, and producing text messages. According to BRC, Tang used an employee without legal training or discovery experience to review messages, produced screenshots, did not collect messages from one custodian, and did not adequately investigate deleted messages from another custodian. BRC requested additional collection and review, collection of messages from the first custodian, and an accounting of efforts to recover deleted messages. BRC also requested discovery about Tang’s communications and dealings with other investors, including Tang’s members or partners and other holders of BRC warrants.

Ruling

The court denied the requested relief. The order stated that the denial was based substantially on the reasons set forth in Tang’s response at docket 90. The provided text does not include that response or give a more detailed explanation of the court’s reasoning. The order concerned discovery and pre-motion procedures; it did not decide the parties’ underlying dispute about warrant registration.