Securities and Exchange Commission v. Longfin Corp., et al. (Case No.: 18-cv-2977-DLC, S.D.N.Y.)
IF YOU PURCHASED SHARES OF LONGFIN CLASS A COMMON STOCK, TRADED ON THE NASDAQ UNDER THE TRADING SYMBOL LFIN, DURING THE PERIOD JUNE 16, 2017 THROUGH APRIL 6, 2018, INCLUSIVE, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION FROM THE LONGFIN FAIR FUND.
On June 30, 2020, the Honorable Denise Cote of the United States District Court for the Southern District of New York issued an Order Approving a Distribution Plan for the Longfin Fair Fund. Epiq is implementing the terms of the Distribution Plan and Claim Packets were mailed by August 14, 2020. To be considered for eligibility to share in the Longfin Fair Fund, Claim Forms are due (postmarked or otherwise received) by December 14, 2020.
On April 4, 2018, the SEC filed a complaint against Longfin Corp. (“Longfin”), Venkata S. Meenavalli, Amro Izzelden Altahawi a/k/a Andy Altahawi, Suresh Tammineedi, and Dorababu Penumarthi (collectively, the “Defendants”). Among other things, the SEC alleged that, from December 2017 to February 2018, the Defendants violated the federal securities laws by conducting sales of over $27 million of Longfin’s securities through unregistered distributions. The Honorable Denise L. Cote of the United States District Court for the Southern District of New York (the “Court”) has since entered final judgments against all of the Defendants, ordering them, in the aggregate, to pay disgorgement of $22,862,377.23 and civil penalties of $3,582,941.97, for a total monetary liability of $26,445,319.20. Each of the final judgments orders the Commission to hold the funds pending further order of the Court. The Defendants have paid approximately $26.1 million and these collections are currently held in an interest-bearing account at the U.S. Treasury’s Bureau of Fiscal Service.
On April 15, 2020, the Court entered an order establishing a Fair Fund for the monies paid into the Fund (the “Longfin Fair Fund”), appointing Miller Kaplan Arase LLP as the Tax Administrator for the Fair Fund, and Epiq Class Action and Claims Solutions, Inc. (“Epiq”) as the Distribution Agent of the Fair Fund.
Any earnings, interest, and future funds collected pursuant to the Defendants’ final judgments will be added to the Longfin Fair Fund, as well as any funds from related actions directed to the Longfin Fair Fund by order of the Court, the SEC, or otherwise.
By order dated September 21, 2020, a Fair Fund was established pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002 in SEC v. Longfin Corp. and Venkata S. Meenavalli, 19-cv-5296-DLC (the “Related Litigation”), which consolidated the approximately $300,000 collected from the defendants in the Related Litigation, plus any accrued interest and future collections, with the Longfin Fair Fund for distribution to harmed investors pursuant to the Court-approved distribution plan in SEC v. Longfin Corp., et al., Civ. Act. No. 18-cv-2977-DLC (S.D.N.Y.).
The approved Plan of Distribution and Order are posted below, as well as on the SEC’s webpage for this matter, https://www.sec.gov/divisions/enforce/claims/longfin.htm.