Rebecca Bamberger Works, LLC v. Bamberger

CourtDistrict Court, S.D. California
DecidedApril 30, 2024
Docket3:24-cv-00706
StatusUnknown

This text of Rebecca Bamberger Works, LLC v. Bamberger (Rebecca Bamberger Works, LLC v. Bamberger) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rebecca Bamberger Works, LLC v. Bamberger, (S.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 REBECCA BAMBERGER WORKS, Case No.: 24-CV-706 JLS (DDL) LLC d/b/a BAM COMMUNICATIONS, a 12 Delaware limited liability company; ORDER GRANTING IN PART AND 13 LLORENTE & CUENCA USA, INC., a DENYING IN PART: (1) Delaware corporation; and LLORENTE & PLAINTIFFS’ EX PARTE 14 CUENCA MADRID S.L., a foreign APPLICATION FOR ISSUANCE OF 15 corporation, TEMPORARY RESTRAINING ORDER, SEIZURE ORDER, ORDER 16 Plaintiffs, TO SHOW CAUSE FOR 17 v. PRELIMINARY INJUNCTION, ORDER FOR EXPEDITED 18 REBECCA BAMBERGER, an individual; DISCOVERY, AND RBW HOLDCO, INC., a California 19 PRESERVATION ORDER; AND (2) corporation; BAM BY BIG LLC, a PLAINTIFFS’ EX PARTE MOTION 20 California limited liability company; AND TO FILE DOCUMENTS UNDER DOES 1 through 20, 21 SEAL Defendants. 22

23 24

25 Presently before the Court is an Ex Parte Application for Issuance of Temporary 26 Restraining Order, Seizure Order, Order to Show Cause for Preliminary Injunction, Order 27 for Expedited Discovery, and Preservation Order (“Appl.”) filed by Plaintiffs Rebecca 28 Bamberger Works, LLC (“BAM”), Llorente & Cuenca USA, Inc. (“LLYC USA”), and 1 Llorente & Cuenca Madrid S.L. (“LLYC Madrid”) (collectively, “Plaintiffs”). Plaintiffs 2 accompany the Application with an Ex Parte Motion to File Documents Under Seal (“Seal 3 Mot.”), and declarations by Luisa Garcia (“Garcia Decl.”), Todd Renner (“Renner Decl.”), 4 and Gregory A. Nylen (“Nylen Decl.”). Having carefully considered Plaintiffs’ arguments, 5 filings, and the law, the Court GRANTS IN PART AND DENIES IN PART Plaintiffs’ 6 Application and Plaintiffs’ Seal Motion. 7 BACKGROUND 8 Per the Complaint (“Compl.,” ECF No. 1), LLYC USA is a subsidiary of Llorente 9 & Cuenca S.A., “a publicly traded global communications, digital marketing, and public 10 affairs firm located in Spain.” Compl. ¶ 33.1 LLYC Madrid—also affiliated with Llorente 11 & Cuenca S.A.—own “trademark Registration No. 6,066,337 with the United States Patent 12 and Trademark Office” for the mark “LLYC.” See id. ¶ 53. 13 BAM is a San-Diego-based public relations and marketing company that works with 14 venture capital brands and venture-backed start-ups. Id. ¶¶ 10, 25. Since 2006, BAM has 15 used the mark “BAM” in connection with its services. Id. ¶ 26 16 In March of 2023, LLYC USA acquired 80% of BAM’s equity from BAM Chief 17 Executive Officer (“CEO”) (and Defendant) Rebecca Bamberger (“Bamberger”). Id. ¶¶ 1, 18 34. Bamberger’s corporation—Defendant RBW Holdco, Inc. (“RBW”)—retained a 20% 19 stake in BAM. See id. ¶ 35. As part of the purchase, RBW and Bamberger agreed to 20 comply with a series of restrictive covenants. Id. ¶¶ 38–39. Bamberger also agreed to stay 21 on as CEO subject to an employment agreement. Id. Finally, BAM, LLYC USA, RBW, 22 and Bamberger executed an operating agreement stating that BAM would be operated by 23 a three-member board. Id. ¶¶ 40–41. The board would include Bamberger and two LLYC 24 representatives. Id. 25 / / / 26 27 28 1 As Plaintiffs have requested that the Garcia Declaration be filed under seal, the Court refers to allegations 1 After the purchase, LLYC USA incorporated the LLYC Mark into the BAM 2 branding to create a new mark: “BAM by LLYC.” Id. ¶ 52. BAM used this mark in its 3 “digital footprint and documents.” Id. 4 Beginning in late 2023, however, relations soured between Bamberger and LLYC 5 USA. The issues began when LLYC USA sought to transition BAM’s bank account from 6 Chase Bank to HSBC. Id. ¶ 59–60. Rather than transition the funds as ordered by the 7 board, however, Bamberger withdrew hundreds of thousands of dollars from BAM’s 8 account. Id. ¶¶ 67–71, 79–81. At least some of these funds were transferred to 9 Bamberger’s personal account. Id. 10 Around the same time, Bamberger created two California companies—VC Comms 11 Con LLC and Big Magical Events LLC. Id. ¶ 82. BAM performed at least $252,000 worth 12 of services for these companies. Id. ¶¶ 85–86. Bamberger then dissolved both companies 13 in February of 2024, and neither company has paid BAM. Id. ¶¶ 88–91. 14 BAM’s board members pressured Bamberger to explain these actions across 15 multiple meetings between February 14 and April 1, 2024. Id. ¶¶ 72–78, 92–100. 16 Bamberger assured the board she would resolve the issues, but nevertheless continued to 17 transfer funds from BAM’s account to her personal account until at least March 14. See 18 id. ¶¶ 72–100. 19 Separately from these suspect transactions, Bamberger began working on a plan to 20 take back BAM from LLYC USA. Bamberger first informed the board’s chairman that 21 she wanted to “end LLYC’s equity interest in BAM” on December 3, 2023. Id. ¶ 63. BAM 22 responded that “there was no basis for a unilateral termination of LLYC’s interest in 23 BAM.” Id. ¶ 65. Undeterred, Bamberger—through counsel—sent a March 5, 2024 letter 24 to BAM stating that she was “interested in unwinding the acquisition of BAM by LLYC.” 25 Id. ¶ 101. BAM responded on March 15, stating that the “[b]oard had ultimate discretion 26 with regard to the operation of [BAM],” id. ¶ 102, and Bamberger replied that “every 27 member at BAM [was] aware of th[e] coming transition and [they] ha[d] started a detailed 28 change management plan internally,” id. ¶ 103 (alterations in original). BAM’s board then 1 told Bamberger that until they received a proposal regarding a potential repurchase, 2 Bamberger should not implement any changes to BAM or inform BAM employees of any 3 change in ownership. Id. ¶ 104. 4 The board’s warning came too late. Bamberger created—and shared among BAM 5 employees—an internal document mapping out a transition away from LLYC USA. Id. 6 ¶ 117. As part of this plan, Bamberger formed Defendant BAM by BIG LLC (“BIG”). Id. 7 ¶ 114. She also registered a new domain name and created a webpage that “copied BAM’s 8 website word for word.” Id. ¶¶ 115, 139. Then, in mid-March of 2024, Bamberger 9 executed the transition. Working with BAM employees, she (1) redirected all traffic from 10 BAM’s website to BIG’s website, (2) transferred BAM’s internal documents and client 11 files to BIG’s new Google Drive, (3) emailed clients to inform them that BAM was ending 12 its relationship with LLYC, and (4) sent new invoices with BIG’s bank information to 13 clients and directed them to ignore old invoices from BAM. Id. ¶¶ 117–149. BIG’s website 14 retains the “BAM by LLYC” mark. See id. ¶ 113. 15 Plaintiffs discovered Bamberger’s efforts on April 4, 2024, when one of BAM’s 16 clients contacted LLYC USA to inquire about a duplicate invoice it received from BIG. 17 Id. ¶ 109. This email “made it clear to BAM, the [b]oard, and LLYC [USA] . . . that 18 Bamberger was in the process of completely decimating BAM by stealing clients and 19 redirecting payments away from BAM.” Id. ¶ 151. 20 Plaintiffs filed this action on April 19, 2024, asserting, among other causes of action, 21 misappropriation of trade secrets, conversion, fraud, breach of contract, and trademark 22 infringement. See generally Compl. The instant Application and Seal Motion followed 23 one week later. 24 APPLICATION 25 I. Temporary Restraining Order 26 A. Legal Standard 27 Federal Rule of Civil Procedure 65(b) governs the issuance of a temporary 28 restraining order (“TRO”). The standard for a TRO is identical to the standard for a 1 preliminary injunction. Frontline Med. Assocs., Inc. v. Coventry Healthcare Worker’s 2 Comp., Inc., 620 F. Supp. 2d 1109, 1110 (C.D. Cal. 2009).

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Rebecca Bamberger Works, LLC v. Bamberger, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rebecca-bamberger-works-llc-v-bamberger-casd-2024.