5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS
81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB
$%'(/.$5,0 $ (/12%$1, ; 3HWLWLRQHU$SSHOOHH 1R Y ! 81,7(' 67$7(6 2) $0(5,&$ 5HVSRQGHQW$SSHOODQW 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R n$QQ$OGULFK'LVWULFWsXGJH $UJXHG sDQXDU\ 'HFLGHGDQG)LOHG $SULO %HIRUH .(11('<DQG'$8*+75(<&LUFXLWsXGJHV %(//&KLHI'LVWULFWsXGJH
7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl ILOHG RQ $SULO 2Q $SULO WKH FRXUW GHVLJQDWHG WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ
7KH +RQRUDEOH 5REHUW +ROPHV %HOO &KLHI 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ
(O1REDQLY8QLWHG6WDWHV 1R 1R (O1REDQLY8QLWHG6WDWHV
BBBBBBBBBBBBBBBBB SHWLWLRQHUGLGQRWUDLVHWKLVFODLPRQGLUHFWUHYLHZ0RUHRYHU KH KDV QRW VDWLVILHG DQ H[FHSWLRQ WR WKLV SURFHGXUDO EDU E\ &2816(/ VKRZLQJ HLWKHU LQQRFHQFH RU FDXVH DQG DFWXDO SUHMXGLFH ,JQRULQJ WKH SURFHGXUDO EDU SHWLWLRQHU V FODLP IDLOV RQ WKH $5*8(' 7KRPDVs*UXVFLQVNL$66,67$1781,7(' PHULWV'HSRUWDWLRQLVDFROODWHUDOFRQVHTXHQFHRIDSOHDDQG 67$7(6 $77251(< &OHYHODQG 2KLR IRU $SSHOODQW WKH JRYHUQPHQW GLG QRW PLVUHSUHVHQW WR SHWLWLRQHU WKH 6FRWW(%UDWWRQ0$5*$5(7:21* $662&,$7(6 FRQVHTXHQFHV RI KLV SOHDV &RQVHTXHQWO\ WKH GHFLVLRQV &OHYHODQG 2KLR IRU $SSHOOHH 21 %5,() 7KRPDV s YDFDWLQJSHWLWLRQHU VFRQYLFWLRQVDQGHQMRLQLQJWKH,16DUH *UXVFLQVNL$66,67$1781,7('67$7(6$77251(< 5(9(56(' DQG WKH FDVH 5(0$1'(' IRU IXUWKHU &OHYHODQG 2KLR IRU $SSHOODQW 0DUJDUHW : :RQJ SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ 0$5*$5(7:21* $662&,$7(6&OHYHODQG2KLR IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 52%(57+2/0(6%(//&KLHI'LVWULFWs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sRUGDQLDQ FLWL]HQ LV D OHJDO UHVLGHQW RI WKH 8QLWHG6WDWHV,Q'HFHPEHU KHZDVLQGLFWHGRQFKDUJHV RIFRQVSLUDF\WRODXQGHUPRQH\DQGWRWUDIILFIRRGVWDPSV (O1REDQLY8QLWHG6WDWHV 1R 1R (O1REDQLY8QLWHG6WDWHV
KLP DERXW WKH GHSRUWDWLRQ FRQVHTXHQFHV RI KLV SOHDV LV IRRG VWDPS WUDIILFNLQJ DOLHQKDUERULQJ DQG PRQH\ VLPLODUO\QRWSHUVXDVLYH7RVXSSRUWWKLVDUJXPHQWSHWLWLRQHU ODXQGHULQJ2QsDQXDU\ SHWLWLRQHUDQGKLVFRXQVHO UHOLHVVROHO\RQWKHIDFWXDOILQGLQJVRIWKHGLVWULFWFRXUWDQG PHWZLWKWKHSURVHFXWRU6SHFLDO$JHQW3DXO:DLJDQG $JHQW GRHVQRWUHIHUHQFHWKHZLWQHVVHV WHVWLPRQ\:HUHYLHZWKH :DLJDQG IURPWKH,QWHUQDO5HYHQXH6HUYLFHDQG6SHFLDO GLVWULFWFRXUW VILQGLQJVIRUFOHDUHUURUDQG>D@IDFWXDOILQGLQJ $JHQWs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s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
Free access — add to your briefcase to read the full text and ask questions with AI
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS
81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB
$%'(/.$5,0 $ (/12%$1, ; 3HWLWLRQHU$SSHOOHH 1R Y ! 81,7(' 67$7(6 2) $0(5,&$ 5HVSRQGHQW$SSHOODQW 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R n$QQ$OGULFK'LVWULFWsXGJH $UJXHG sDQXDU\ 'HFLGHGDQG)LOHG $SULO %HIRUH .(11('<DQG'$8*+75(<&LUFXLWsXGJHV %(//&KLHI'LVWULFWsXGJH
7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl ILOHG RQ $SULO 2Q $SULO WKH FRXUW GHVLJQDWHG WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ
7KH +RQRUDEOH 5REHUW +ROPHV %HOO &KLHI 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ
(O1REDQLY8QLWHG6WDWHV 1R 1R (O1REDQLY8QLWHG6WDWHV
BBBBBBBBBBBBBBBBB SHWLWLRQHUGLGQRWUDLVHWKLVFODLPRQGLUHFWUHYLHZ0RUHRYHU KH KDV QRW VDWLVILHG DQ H[FHSWLRQ WR WKLV SURFHGXUDO EDU E\ &2816(/ VKRZLQJ HLWKHU LQQRFHQFH RU FDXVH DQG DFWXDO SUHMXGLFH ,JQRULQJ WKH SURFHGXUDO EDU SHWLWLRQHU V FODLP IDLOV RQ WKH $5*8(' 7KRPDVs*UXVFLQVNL$66,67$1781,7(' PHULWV'HSRUWDWLRQLVDFROODWHUDOFRQVHTXHQFHRIDSOHDDQG 67$7(6 $77251(< &OHYHODQG 2KLR IRU $SSHOODQW WKH JRYHUQPHQW GLG QRW PLVUHSUHVHQW WR SHWLWLRQHU WKH 6FRWW(%UDWWRQ0$5*$5(7:21* $662&,$7(6 FRQVHTXHQFHV RI KLV SOHDV &RQVHTXHQWO\ WKH GHFLVLRQV &OHYHODQG 2KLR IRU $SSHOOHH 21 %5,() 7KRPDV s YDFDWLQJSHWLWLRQHU VFRQYLFWLRQVDQGHQMRLQLQJWKH,16DUH *UXVFLQVNL$66,67$1781,7('67$7(6$77251(< 5(9(56(' DQG WKH FDVH 5(0$1'(' IRU IXUWKHU &OHYHODQG 2KLR IRU $SSHOODQW 0DUJDUHW : :RQJ SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ 0$5*$5(7:21* $662&,$7(6&OHYHODQG2KLR IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 52%(57+2/0(6%(//&KLHI'LVWULFWs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sRUGDQLDQ FLWL]HQ LV D OHJDO UHVLGHQW RI WKH 8QLWHG6WDWHV,Q'HFHPEHU KHZDVLQGLFWHGRQFKDUJHV RIFRQVSLUDF\WRODXQGHUPRQH\DQGWRWUDIILFIRRGVWDPSV (O1REDQLY8QLWHG6WDWHV 1R 1R (O1REDQLY8QLWHG6WDWHV
KLP DERXW WKH GHSRUWDWLRQ FRQVHTXHQFHV RI KLV SOHDV LV IRRG VWDPS WUDIILFNLQJ DOLHQKDUERULQJ DQG PRQH\ VLPLODUO\QRWSHUVXDVLYH7RVXSSRUWWKLVDUJXPHQWSHWLWLRQHU ODXQGHULQJ2QsDQXDU\ SHWLWLRQHUDQGKLVFRXQVHO UHOLHVVROHO\RQWKHIDFWXDOILQGLQJVRIWKHGLVWULFWFRXUWDQG PHWZLWKWKHSURVHFXWRU6SHFLDO$JHQW3DXO:DLJDQG $JHQW GRHVQRWUHIHUHQFHWKHZLWQHVVHV WHVWLPRQ\:HUHYLHZWKH :DLJDQG IURPWKH,QWHUQDO5HYHQXH6HUYLFHDQG6SHFLDO GLVWULFWFRXUW VILQGLQJVIRUFOHDUHUURUDQG>D@IDFWXDOILQGLQJ $JHQWs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s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sDQXDU\ PHHWLQJ WKH JRYHUQPHQW PDGH PLVUHSUHVHQWDWLRQV WR