Filed: May 17, 2001
Latest Update: Mar. 02, 2020
Summary: 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 ,9$1 9$5/s(1 0,/(1$ ; 9$5/s(1 (8&/,' :(/',1* &2 ,1& 81,7(' 67$7(6H[ 1R UHO 3ODLQWLIIV$SSHOODQWV ! Y &/(9(/$1' *($5 &2 ,1& '$1$ & / RU@ QRWFRPSO\ZLWKWKLVSURYLVLRQDPRXQWVWRDQDOOHJDWLRQWKDW NQRZLQJO\PDNHVXVHVRUFDXVHVW
Summary: 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 ,9$1 9$5/s(1 0,/(1$ ; 9$5/s(1 (8&/,' :(/',1* &2 ,1& 81,7(' 67$7(6H[ 1R UHO 3ODLQWLIIV$SSHOODQWV ! Y &/(9(/$1' *($5 &2 ,1& '$1$ & / RU@ QRWFRPSO\ZLWKWKLVSURYLVLRQDPRXQWVWRDQDOOHJDWLRQWKDW NQRZLQJO\PDNHVXVHVRUFDXVHVWR..
More
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 ,9$1 9$5/s(1 0,/(1$ ; 9$5/s(1 (8&/,' :(/',1* &2 ,1& 81,7(' 67$7(6H[ 1R UHO 3ODLQWLIIV$SSHOODQWV ! Y &/(9(/$1' *($5 &2 ,1& '$1$ & / RU@ QRWFRPSO\ZLWKWKLVSURYLVLRQDPRXQWVWRDQDOOHJDWLRQWKDW NQRZLQJO\PDNHVXVHVRUFDXVHVWREHPDGHRUXVHG WKURXJKIUDXGLWNQRZLQJO\SURGXFHGSURGXFWVWKDWGLGQRW D IDOVHUHFRUGRUVWDWHPHQWWRJHWDIDOVHRUIUDXGXOHQW PHHW WKH FRQWUDFWjV TXDOLW\ DQG FRUUHVSRQGLQJ VDIHW\ FODLPSDLGRUDSSURYHGE\WKH*RYHUQPHQW UHTXLUHPHQWV,WLVXQGLVSXWHGWKDW&OHYHODQG*HDUFDXVHGWR EHVXEPLWWHGDmFODLPlWRWKHJRYHUQPHQW,WLVLPPDWHULDO 86&DDQGD ZKHWKHU WKH DOOHJHG FRQWUDFWXDO QRQFRPSOLDQFH UHVXOWHG LQ SURGXFWVZLWKWKHmVDPHEDVLFSHUIRUPDQFHFKDUDFWHULVWLFVlDV 7KH EURDG ODQJXDJH RI WKHVH SURYLVLRQV SURYLGHV WKH WKRVHWKDWZRXOGKDYHEHHQSURGXFHGLQFRPSOLDQFHZLWKWKH VRPHZKDW XQLTXH FRQWRXUV RI D VXVWDLQDEOH TXL WDP DFWLRQ WHUPVRIWKHFRQWUDFW6HH$HURGH[)GDW XQGHUWKH)&$&RQVLVWHQWZLWKWKHVHSURYLVLRQVUHFRYHU\ XQGHU WKH )&$ LV QRW GHSHQGHQW XSRQ WKH JRYHUQPHQWjV ,Q OLJKW RI WKH IDFW WKDW LW LV QRW HVVHQWLDO IRU DQ )&$ VXVWDLQLQJPRQHWDU\GDPDJHV6HH65HS1RDW SODLQWLIIWRDOOHJHGDPDJHVDQGEHFDXVHRIWKHLUUHOHYDQFHRI 6FKZHGWY3ODQQLQJ5HVHDUFK&RUS)G JRYHUQPHQWLQVSHFWLRQDQGWKHUHODWLYHTXDOLW\RIFRQIRUPLQJ '&&LU/LNHZLVHWKHIDLOXUHWRFRPSO\ZLWK DQGQRQFRQIRUPLQJSURGXFWVLQDQ)&$FDVHWKH5HODWRUVj JRYHUQPHQW FRQWUDFW VSHFLILFDWLRQV FDQ UHVXOW LQ DQ )&$ FRPSODLQW VKRXOG KDYH VXUYLYHG D PRWLRQ XQGHU 5XOH mLQMXU\lWRWKHJRYHUQPHQWHYHQLIWKHVXSSOLHGSURGXFWLVDV EDVLWFOHDUO\DOOHJHVDQ)&$mLQMXU\l7KHGLVWULFW JRRG DV WKH VSHFLILHG SURGXFW 6HH 8QLWHG 6WDWHV H[ UHO FRXUWDSSHDUVWRKDYHFRQFOXGHGWKDWDQ)&$SODLQWLIIPXVW &RPSWRQY0LGZHVW6SHFLDOLWLHV,QF)GWK DOOHJHWKHTXDQWLILDEOHHIIHFWRUGHWULPHQWWKDWWKHVXEPLVVLRQ &LU7KHJRYHUQPHQWjVLQVSHFWLRQDQGDFFHSWDQFHRI RIDIDOVHFODLPKDGRQWKHJRYHUQPHQW7KLVZRXOGUHQGHU DSURGXFWGRQRWDEVROYHDFRQWUDFWRUIURPOLDELOLW\IRUIUDXG WKHUHODWLYHODQJXDJHRIWKH)&$DQGWKH$HURGH[6FKZHGW XQGHUWKH)&$6HH8QLWHG6WDWHVY$HURGH[,QF)G DQG0LGZHVW6SHFLDOLWLHVGHFLVLRQVPHDQLQJOHVV WK&LUDIILUPLQJ)&$OLDELOLW\EHFDXVH SURGXFWV GLG QRW FRQIRUP WR FRQWUDFW VSHFLILFDWLRQV HYHQ )XUWKHUPRUHWKH5HODWRUVjDPHQGHGFRPSODLQWH[SOLFLWO\ WKRXJKWKHVXSSOLHGSURGXFWKDGWKHVDPHEDVLFSHUIRUPDQFH OLQNHGWKHFRQWUDFWXDOQRQFRPSOLDQFHWRDULVNRImVHULRXV FKDUDFWHULVWLFV)LQDOO\HYHQWKHJRYHUQPHQWjVNQRZOHGJH LQMXU\WRSHUVRQVFRQQHFWHGZLWKWKH'HSDUWPHQWRI'HIHQVHl RI D IUDXG GRHV QRW QHFHVVDULO\ DEVROYH D FRQWUDFWRU IURP ZKRXVHGWKHZLQFKHVLQZKLFKWKHJHDUVZHUHLQFRUSRUDWHG OLDELOLW\XQGHUWKH)&$6HH8QLWHG6WDWHVH[UHO+DJRRGY 6RQRPD&RXQW\:DWHU$JHQF\)GWK&LU 9DUOMHQHWDOY&OHYHODQG 1R 1R 9DUOMHQHWDOY&OHYHODQG *HDU&RHWDO *HDU&RHWDO 7KHSDUWLHVWRWKLVDFWLRQDJUHHXSRQWKHVHSRLQWVRI .UHLQGOHUY8QLWHG7HFKQRORJLHV&RUS)GG ODZ &LU,Q.UHLQGOHUWKHFRXUWKHOGWKDWm&RQJUHVVFDQQRW ZDLYHWKHFRQVWLWXWLRQDO>$UWLFOH,,,6HFWLRQ@PLQLPXPRI m3DUWLHVWKDWFRQWUDFWZLWKWKHJRYHUQPHQWDUHKHOGWRWKH LQMXU\LQIDFW,QD>Q@>)&$@TXLWDPDFWLRQWKHSODLQWLIIVXHV OHWWHURIWKHFRQWUDFWnLUUHVSHFWLYHRIZKHWKHUWKHFRQWUDFW RQEHKDOIRIDQGLQWKHQDPHRIWKHJRYHUQPHQWDQGLQYRNHV WHUPVDSSHDURQHURXVIURPDQH[SRVWSHUVSHFWLYHRUZKHWKHU WKH VWDQGLQJ RI WKH JRYHUQPHQW UHVXOWLQJ IURP WKH IUDXG WKHFRQWUDFWjVSXUSRVHFRXOGEHHIIHFWXDWHGLQVRPHRWKHUZD\ LQMXU\l,GDW7KHGLVWULFWFRXUWDSSOLHGWKLVSULQFLSOH n XQGHU WKH PD[LP WKDW µ>P@HQ PXVW WXUQ VTXDUH FRUQHUV LQPDNLQJLWVGHFLVLRQWRGLVPLVVWKLVDFWLRQE\KROGLQJWKDW ZKHQWKH\GHDOZLWKWKH*RYHUQPHQWjl0LGZHVW6SHFLDOLWLHV WKH 5HODWRUV KDG IDLOHG WR DOOHJH DQ\ LQMXU\ WR WKH 8QLWHG ,QF)GDWHPSKDVLVDGGHG 6WDWHVUHO\LQJRQWKHIDFWWKDWWKHJRYHUQPHQWKDGLQVSHFWHG DQGDSSURYHGWKHFRPSODLQHGRIJHDUV 7KH 5HODWRUV DQG WKH JRYHUQPHQW DUJXH WKDW WKH GLVWULFW FRXUWHUUHGE\JUDQWLQJ&OHYHODQG*HDUjVPRWLRQWRGLVPLVV 7KH JRYHUQPHQW SRLQWV RXW WKDW WKH LPSDFW RI WKH EHFDXVH LW LQFRUUHFWO\ KHOG WKDW WKH 5HODWRUV KDG QRW PDQXIDFWXULQJFKDQJHLHZKHWKHULWDIIHFWHGmILWIXQFWLRQ DOOHJHGWKDWWKHJRYHUQPHQWKDGEHHQLQMXUHGE\&OHYHODQG RUVHUYLFHOLIHRIWKHLWHPlDQGQHFHVVLWDWHGQRWLILFDWLRQRIWKH *HDUjVFRQGXFWDQGWKDWWKHFRPSODLQWZDVWKHUHIRUHOHJDOO\ FKDQJHXQGHUWKHFRQWUDFWVSHFLILFDWLRQVLVDQLVVXHRIIDFW LQVXIILFLHQWXQGHUWKH)&$KHOGWKDWWKHJRYHUQPHQWKDG WKDWVKRXOGQRWEHUHVROYHGE\WKHGLVWULFWFRXUWDWWKHPRWLRQ QRWEHHQLQMXUHGEHFDXVHWKHLQVSHFWLRQDQGDFFHSWDQFHRIWKH WR GLVPLVV VWDJH ,W DOVR QRWHV WKDW WKH 5HODWRUVj DPHQGHG JHDUVSUHFOXGHG5HODWRUVIURPVKRZLQJWKDWWKHJHDUVZHUH FRPSODLQWVWDWHGWKDWWKHDOOHJHGQRQFRPSOLDQWJHDUVZRXOG GHIHFWLYHDQGGLVUHJDUGHG5HODWRUVjDOOHJDWLRQWKDWJHDUV UHVXOWLQDULVNRIGDPDJHWRWKHZLQFKHVWKHLURSHUDWLRQDQG SURGXFHGE\WKHPDQXIDFWXULQJPHWKRGGLIIHUHQWIURPWKDW WR WKH SHUVRQQHO XVLQJ WKHP 7KXV &OHYHODQG *HDUjV XVHGWRSURGXFHWKHILUVWEDWFKZHUHRILQIHULRUTXDOLW\ FHUWLILFDWLRQWKDWLWKDGFRPSOLHGZLWKWKHm4XDOLW\$VVXUDQFH 5HTXLUHPHQWVlLQFOXGLQJLQVSHFWLRQZDVIDOVH &OHYHODQG*HDUDUJXHVWKDWGLVPLVVDOZDVSURSHUEHFDXVH WKH 5HODWRUV GLG QRW DOOHJH D YLRODWLRQ RI VXEFRQWUDFW &OHYHODQG *HDU DGPLWV WKDW 5HODWRUVj DOOHJDWLRQ WKDW WKH VSHFLILFDWLRQVDQGFKDQJHVWRPDQXIDFWXULQJSURFHVVHV PDQXIDFWXULQJSURFHVVZDVFKDQJHGPXVWEHWDNHQDVWUXHEXW WKDWDUHQRWVSHOOHGRXWLQWKHFRQWUDFWRUVSHFLILFDWLRQVGRQRW LW FRQWHQGV WKDW WKH DOOHJDWLRQ WKDW WKLV FKDQJH UHVXOWHG LQ HTXDWH WR D IDOVH FODLP WKDW LQMXUHG WKH JRYHUQPHQW LQIHULRUJHDUVLVDOHJDOFRQFOXVLRQWKDWGRHVQRWGHVHUYHWKH 6SHFLILFDOO\ LW DUJXHV WKDW WKH FRQWUDFW RQO\ VSHFLILHG D VDPHGHIHUHQFH,WFKDUDFWHUL]HVWKHDOOHJDWLRQWKDWWKHFKDQJH mKDUGQHVVWDUJHWZKLFK>VLF@&OHYHODQG*HDUKDGWRPHHWLQ UHVXOWHG LQ LQIHULRU TXDOLW\ JHDUV DQG D IDOVH FODLP DV DQ KHDW WUHDWLQJ WKH ZRUP JHDUVl DQG WKDW QR SRUWLRQ RI WKH mLQIHUHQWLDOOHDSlZKLFKDWEHVWDPRXQWVWRDGLVSXWHRYHUWKH FRQWUDFW RU TXDOLW\ DVVXUDQFH UHTXLUHPHQWV VSHFLILHG WKH UHDVRQDEOHLQWHUSUHWDWLRQRIWKHFRQWUDFW SURFHVVE\ZKLFKKHDWWUHDWLQJKDGWRRFFXU,WDUJXHVWKDW GLVPLVVDOZDVSURSHUEHFDXVH5HODWRUVIDLOHGWRDOOHJHWKDWWKH 7KH GLVWULFW FRXUW HUUHG LQ FRQFOXGLQJ WKDW QR LQMXU\ GHOLYHUHGJHDUVZHUHQRWKHDWWUHDWHGWRWKHVSHFLILHGKDUGQHVV RFFXUUHG LQDVPXFK DV LW UHOLHG XSRQ WKH IDFW WKDW WKH RUWKDWLWIDLOHGWRIROORZWKHFRQWUDFWjVLQVSHFWLRQSURWRFRO JRYHUQPHQWKDGLQVSHFWHGDQGDFFHSWHGWKHLWHPVLQTXHVWLRQ 2XUFRQFOXVLRQLVFRQVLVWHQWZLWKWKHSRLQWVRIODZRXWOLQHG &OHYHODQG *HDU FRQWHQGV WKDW DQ LQMXU\ LQ IDFW PXVW EH DERYHDQGWKXVWKHGLVWULFWFRXUWjVGLVFXVVLRQRIWKHLVVXH DOOHJHG LQ DQ )&$ TXL WDP DFWLRQ XQGHU .UHLQGOHU ZDV IODZHG 6HH $HURGH[ ,QF )G DW mHYHQ