COOLEY LLP ATTO RN EY S AT LAW
COMPLAINT
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COOLEY LLP MICHAEL G. RHODES (116127) ([email protected]) 101 California St, Fifth Floor San Francisco, CA 94111 Telephone: (415) 693-2000 MARK F. LAMBERT (197410) ([email protected]) BRANDON V. STRACENER (314032) ([email protected]) 3175 Hanover Street Palo Alto, CA 94304 Telephone: (650) 843-5200 Facsimile: (650) 849-7400
Attorneys for Plaintiff MAGIC LEAP, INC.
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
MAGIC LEAP, INC.,
Plaintiff,
v.
CHI XU, an individual; HANGZHOU TAIRUO TECHNOLOGY CO., LTD., d/b/a NREAL
Defendants.
Case No.:
COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF 1. BREACH OF CONTRACT 2. CONSTRUCTIVE FRAUD 3. UNFAIR COMPETITION (CAL. BUS. & PROF. CODE § 17200) DEMAND FOR JURY TRIAL
Plaintiff Magic Leap, Inc. (“Magic Leap” or “Company”), by and through its
undersigned counsel, hereby alleges as follows against former Magic Leap employee
Chi Xu and the company that he founded and leads, Hangzhou Tairuo Technology
Co., Ltd. doing business as Nreal (“Nreal”):
I. SUMMARY OF ACTION
1. Plaintiff Magic Leap is filing this complaint to stop Defendants Chi Xu
and Nreal from continuing to exploit Magic Leap’s confidential and proprietary
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information to unfairly compete in the development of wearable spatial computing
glasses and other related technology. By pursuing this litigation, Magic Leap seeks to
protect its confidential and proprietary information developed at substantial expense,
time and effort, to obtain remedies in equity and law for Chi Xu’s material breach of
his contractual obligations with Magic Leap, and for unfair competition and other
wrongful conduct by Chi Xu and Nreal.
2. Since its founding in 2010, Magic Leap has been an innovator in the
emerging field of spatial computing, which encompasses augmented, virtual and hybrid
(or mixed) reality technology. It has spent hundreds of millions of dollars in research
and development in pursuit of its cutting-edge technology. The technology spans a
number of related fields, including precision optics, complicated software, hardware,
peripheral componentry, and ergonomic and form-factor design. One of its products is
the Magic Leap One, an ultralight and ergonomically designed head-mounted virtual
retinal display that superimposes 3D computer-generated imagery over real world
objects (known as spatial computing, which encompasses augmented, virtual and hybrid
(or mixed) reality).
3. As described herein, Defendant Chi Xu (“Mr. Xu”) worked at Magic Leap
as a software engineer from on or about July 27, 2015, until August 15, 2016. In that
capacity, Mr. Xu executed employment-related agreements, including (without
limitation) a Proprietary Information and Inventions Agreement (“PIIA”) that contained
a broad proscription against the improper use or disclosure of any of Magic Leap’s
confidential and proprietary information during or after his employment. After leaving
Magic Leap in August 2016, Mr. Xu spent approximately six months considering his
next venture. In or about early 2017, he and others acting in concert with him in the
People’s Republic of China formed Nreal. According to a video interview of Mr. Xu
available at the following link: <https://www.youtube.com/watch?v=rcPB4POYkpc>,
he admits that Nreal quickly developed a prototype of lightweight, ergonomically
designed, mixed reality glasses for use with smart phones and other devices that are
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2. COMPLAINT
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strikingly similar to confidential Magic Leap designs and confidential and proprietary
information to which he had access as an employee. Magic Leap alleges herein that the
overall pace of Nreal’s development, the overall amount of resources (money and
person hours) available to Nreal, and the resulting design, functions, features and
components of the Nreal product, indicate that Mr. Xu wrongfully used and disclosed
to Nreal and its collaborators the confidential and proprietary information to which he
obtained access as a former Magic Leap employee.
II. THE PARTIES
4. Plaintiff Magic Leap, Inc. (“Magic Leap” or “Company”) is a Delaware
corporation with a principal place of business in Plantation, Florida. Magic Leap was
founded, in stealth mode, in 2010. Over the ensuing years, Magic Leap has raised in
excess of $1 billion in investment capital. Much of that capital has been used in its
extensive research and development efforts in solving the daunting technical challenges
posed by spatial computing products, technology and content.
5. Defendant Chi Xu (“Mr. Xu”) is an individual who, on information and
belief, is residing in Beijing, China. Mr. Xu formerly worked for Magic Leap in its
Sunnyvale, California facilities from July 27, 2015 until August 15, 2016.
6. Defendant Hangzhou Tairuo Technology Co., Ltd., doing business as
Nreal (“Nreal”), is, on information and belief, a business entity conducting business
from a location at Unit 6, Unit 1, Building 2, Zhonghang Plaza Number 43, North Third
Ring Road, Beijing, Haidian, China. On information and belief, Nreal was founded in
or about early 2017.
III. JURISDICTION AND VENUE
7. The Court has federal subject matter jurisdiction over this matter pursuant
to 28 U.S.C. § 1332 because there is complete diversity of citizenship among the parties
and the amount in controversy exceeds $75,000.
8. Venue is proper in this judicial district because Mr. Xu’s contractual
obligations and legal duties, and breaches thereof, giving rise to this action occurred
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within this judicial district. In addition, a substantial part of the events giving rise to
the claims alleged herein occurred in this judicial district. And pursuant to the
Proprietary Information and Inventions Agreement (“PIIA”), Mr. Xu expressly
consented to personal jurisdiction and venue in this Court for any lawsuit relating to
that agreement. Venue thus lies in the U.S. District Court for the Northern District of
California pursuant to 28 U.S.C. § 1391(b), (c).
IV. INTRADISTRICT ASSIGNMENT
9. Pursuant to this Court’s Civil Local Rules 3-5(b) and 3-2(e), this action
may be properly assigned to the San Jose Division because a substantial part of the
events giving rise to the claims asserted herein occurred in Santa Clara County,
California, and plaintiff Magic Leap has a place of business in Santa Clara County.
V. FACTUAL ALLEGATIONS
10. Mr. Xu entered into employment with Magic Leap on or about July 27,
2015. In connection with his employment, Mr. Xu executed various employment
agreements, including (without limitation) a Proprietary Information and Inventions
Agreement (“PIIA”). A true and correct copy of the executed PIIA is attached hereto
as Exhibit A and incorporated herein by reference as though set forth in full.
11. Section 2 of the PIIA contains a broad prohibition against the unauthorized
use or disclosure of the defined confidential and proprietary information both during
and after Mr. Xu’s employment. It reads, in part:
I understand that “Confidential Information” means any Company proprietary
information, technical data, trade secrets or know-how, including, but not limited
to, research, business plans, product plans, products, services, customer lists and
customers (including, but not limited to, customers of the Company on whom I
called or with whom I became acquainted during the term of my Relationship
with the Company), market research, works of original authorship, intellectual
property (including, but not limited to, unpublished works and undisclosed
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patents), photographs, negatives, digital images, software, computer programs,
ideas, developments, inventions (whether or not patentable), processes, formulas,
technology, designs, drawings and engineering, hardware configuration
information, forecasts, strategies, marketing, finances or other business
information disclosed to me by the Company either directly or indirectly in
writing, orally or by drawings or observation or inspection of parts or equipment.
12. During his tenure of employment with Magic Leap, Mr. Xu had access to
much of Magic Leap’s Confidential Information spanning all phases of its research and
development efforts, including such areas as software, hardware, product design, form
factors and ergonomics, component sourcing and supply chains, vendors, componentry,
bills of materials, unreleased products, and marketing.
13. Magic Leap has, since its founding, spent hundreds of millions of dollars
in its research and development efforts. In the process, Magic Leap has generated and
acquired an extensive body of Confidential Information about many aspects of spatial
computing, which encompasses augmented, virtual, hybrid and mixed reality
technology, platforms, products, content, and the challenges presented in developing
spatial computing devices (which encompasses augmented, virtual and hybrid (or
mixed) reality devices).
14. Magic Leap’s efforts in that regard have been to design, develop and
ultimately commercialize spatial computing systems and products. Thus, the various
engineering teams (for example, hardware, software, product design) work extensively
with each other in furtherance of the overall Company development objectives. Spatial
computing systems and products, in particular, require a complex interplay between
software and hardware, form factors, content, and overall system and product design.
For this reason, software engineers, specifically including Mr. Xu, had ongoing and
frequent access to the other development teams outside of his own department when
working at Magic Leap since system integration is one of the main challenges facing
spatial computing technology development.
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15. In sum, Magic Leap has spent significant time, effort, and expense over
many years to generate its Confidential Information. Magic Leap’s Confidential
Information is not known to or readily ascertainable by the public.
16. Magic Leap is diligent in protecting its highly valuable Confidential
Information from falling into unauthorized hands. Magic Leap requires its employees
and contractors who have access to Confidential Information to agree to keep
confidential and not use the information for anything other than Company purposes.
Mr. Xu’s PIIA (Exhibit A hereto) is an example of the types of non-disclosure
agreements Magic Leap puts in place. Magic Leap instructs and advises its employees
about their confidentiality obligations in various manuals, policies and practices.
Servers and systems that host Confidential Information are protected by industry
standard measures. Access to Confidential Information is restricted to only those who
have a reasonable basis to have access to such information. Magic Leap takes
appropriate steps to manage employee departures to protect its Confidential
Information. Visitors are subject to appropriate security screening and access
limitations.
17. During the course of his employment, and specifically during 2015 and
2016, Mr. Xu was aware that Magic Leap had produced multiple conceptual designs for
spatial computing products (including, without limitation, glasses and peripherals).
These designs represented a range of internal research and development efforts aimed
at forming a pipeline of potential products for evaluation of market potential including,
without limitation, prototype products and technologies that are not dissimilar (whether
in whole or in component part) from the Nreal Light. The designs reflected various
iterations and configurations of physical properties, ergonomic and technical feature
sets, hardware architecture, software architecture, system architecture, results of trade
studies, technology evaluations, aesthetics, device interoperability, supporting and
accessory product concepts, and a range of implementations and use cases, all
documented and curated under confidential internal code names. These conceptual
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designs and plans were confidential and proprietary to Magic Leap (the “Confidential
Designs”) and revealed Magic Leap’s product development plans and innovative work
activities. Mr. Xu’s access to this information was governed by the terms of the PIIA.
18. During the course of his employment with Magic Leap, on information and
belief, Mr. Xu made the decision to leave Magic Leap and move to China for the
purpose of establishing with others a company that would compete with Magic Leap in
the field of spatial computing and would leverage his knowledge of Magic Leap
Confidential Information, including the Confidential Designs. During this time, Mr.
Xu neglected his work duties at Magic Leap and participated in internal meetings not
directly necessary to his assigned work. On information and belief, Mr. Xu engaged in
this conduct to acquire additional Confidential Information, including the Confidential
Designs, he could later use for the benefit of the competing company he planned to start
and to the detriment of Magic Leap.
19. Mr. Xu ended his employment with Magic Leap on or about August 15,
2016. On information and belief, Mr. Xu returned to China after ending his employment
with Magic Leap in the late summer or fall of 2016. On information and belief, Mr. Xu
promptly began efforts to obtain funding and support for the business he hoped to start.
20. During this time, Mr. Xu took actions to form Nreal to develop spatial
computing products powered by smart phones and other devices (laptops, for instance).
On information and belief, Mr. Xu used his knowledge of Magic Leap’s Confidential
Information, including but not limited to the Confidential Designs, to make production
and design decisions at Nreal and to guide the development of spatial computing
products intended for sale.
21. By early 2019, Mr. Xu and Nreal had developed prototypes of their first
generation product called Nreal Light. Mr. Xu and Nreal demonstrated the product at
the January 2019 Consumer Electronics Show (“CES”) in Las Vegas. Per Mr. Xu’s
public statements, Nreal was able to iterate the product seven times in two years, with
a small development team (fewer than 20 in number), and facilitated by several rounds
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of Chinese venture capital investment, much of it government backed.
22. The resulting product, as demonstrated at CES and on publicly available
videos, bears a striking similarity to the Confidential Designs that Magic Leap had
under development before and during the time that Mr. Xu worked at Magic Leap, but
which were not ultimately commercialized or publicly released. Whereas Nreal
purported to develop its Nreal Light product in under two years, Magic Leap developed
its technology after extensive investment of time (multiple years), money (hundreds of
millions of dollars spent on research and development) and human resources (hundreds
of engineers).
23. Mr. Xu derived a comprehensive understanding of all the necessary
requirements and solutions that need to go into spatial computing products from his
Magic Leap employment. On information and belief, unlike Magic Leap, Mr. Xu and
Nreal avoided the extensive research and development, trial and error, and
experimentation that was necessary for Magic Leap to develop its understanding of
what worked, and what did not work, in developing spatial computing technology and
products. On information and belief, Mr. Xu’s and Nreal’s fast development timeline,
minimal resources, and design choices reflect their improper use, disclosure and
knowledge of Magic Leap’s Confidential Information (including the Confidential
Designs) protected under the PIAA.
24. In April 2019, Mr. Xu gave an interview that was recorded on video and is
available at the following link: <https://www.youtube.com/watch?v=rcPB4POYkpc>.
In the video, Xu discussed both his time employed at Magic Leap and the creation of
Nreal and the Nreal Light spatial computing prototypes. During the interview, in sum
and substance, Mr. Xu acknowledged the aforementioned acquisition of Confidential
Information from Magic Leap and his use of that information in the development of the
Nreal Light.
25. Specifically, Mr. Xu acknowledged his initial exposure to the field of
spatial computing (which encompasses augmented, virtual, hybrid and mixed reality
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technology) came through his employment at Magic Leap.
26. Mr. Xu acknowledged he came to understand the commercial viability of
spatial computing (which encompasses augmented, virtual, hybrid and mixed reality
technology) in 2015, during the time of his employment at Magic Leap. Mr. Xu stated,
“After that, I am a true believer for AR, and I think it is definitely going to take a lot
sooner than people expect it for this to take off, so I wanted to be part of that.”
27. Mr. Xu further acknowledged that he developed his understanding of the
field of spatial computing (which encompasses augmented, virtual, hybrid and mixed
reality technology) at Magic Leap. Mr. Xu stated, “I learned a lot from the people, from
the whole company, and their vision as well.”
28. During the interview, the interviewer expressed astonishment at Mr. Xu’s
entry onto the scene of spatial computing and development of the Nreal Light and
inquired “how could you pull that off” in just over two years in contrast to Magic Leap,
which has been working on this technology for a much longer period of time. Mr. Xu
responded that this was “a complicated question to answer” while conceding that Magic
Leap is a company with “great technology and great people” that is “truly driving the
whole industry forward.”
29. Mr. Xu then provided his understanding and characterization of the
product development strategy Magic Leap has been pursuing during and throughout the
time of his employment at Magic Leap and continuing through the present. Mr. Xu
acquired this understanding of Magic Leap’s business plans and product development
strategy through his employment at Magic Leap and his receipt and use of Magic Leap’s
Confidential Information. Specifically, Mr. Xu asserted his view that Magic Leap is
“too ambitious” and “trying just a little bit too hard,” and he characterized Magic Leap’s
product development strategy as follows: “in some way, they are trying to build
something that can replace a cell phone in the first generation, which is kind of like
mission impossible.” Mr. Xu continued with his characterization of Magic Leap’s
product development strategy, saying “[t]hey are trying to bundle pretty much
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everything in the [device] making that bigger and bigger.” While Mr. Xu attempted to
differentiate the Nreal Lite from Magic Leap’s products currently on public sale, in
reality, the Nreal Light incorporates and derives from the Confidential Designs and
other Magic Leap Confidential Information protected by the PIIA.
30. Mr. Xu’s flattery belies his intention to shamelessly copy the business from
which he gained intimate knowledge through his confidential relationship. Mr. Xu’s
goal of appropriating Magic Leap’s reputation and image is manifested in his blatant
copying of Magic Leap’s proprietary font in the Nreal logo:
Mr. Xu’s misuse and exploitation of Magic Leap’s image and goodwill is further
manifested in Nreal’s shameless use of whales in its demo experiences, compared to the
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whales that Magic Leap has used in its marketing materials, website, and applications
since 2014. Compare <https://www.youtube.com/watch?v=LM0T6hLH15k> (Magic
Leap), and <https://www.youtube.com/watch?v=PyCoTzRzHxo> (Magic Leap), with
the Nreal demo experience image, retweeted on Nreal’s Twitter feed, below:
<https://twitter.com/nreal_MR> (Retweeting @DanaLo’s June 5, 2019 Tweet).
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Mr. Xu and Nreal are not respectful admirers of Magic Leap, but instead show an intent
to free ride on Magic Leap’s business, image, and Confidential Information.
31. With the above understanding of Magic Leap’s development plans and
Confidential Designs, Mr. Xu continued by stating, “So, we are trying to come up with
something smaller which would make our job actually easier.” Mr. Xu proceeded to
discuss the design and functionality sacrifices necessary to produce a smaller device,
sacrifices he perceived Magic Leap as unwilling to make in a commercially available
product. Notwithstanding the lesser quality and functionality resulting from these
design and functionality sacrifices, Mr. Xu explained, “We want to . . . do several things
right at the very beginning . . . and then we can add more and more stuff on the list [in
subsequent generations of the product].” Mr. Xu stated, “people might be okay with
that in the first generation.”
32. Mr. Xu further acknowledged that he left Magic Leap with the purpose of
developing a competing company and product. Specifically, Mr. Xu said, “Back then,
I realized okay we have some advantage in China because if you look at the supply
chain, the manufacturing capability, that’s something actually um the U.S. or the rest of
the world don’t have.” He stated, “We can iterate so fast” and said, “I wanted to go
back to leverage that.”
33. Notwithstanding these admissions concerning the timing of his decision to
use his knowledge of Magic Leap’s Confidential Information (including the
Confidential Designs) and pursue the development of a competing business in China,
Mr. Xu then advanced a false narrative of the timeline of his evolution from Magic Leap
employee to founder and CEO of a competing company based in China producing a
product in competition with Magic Leap. On information and belief, Mr. Xu
manufactured this false timeline in an effort to conceal the fact that his product
development plan and ultimate product design for the Nreal Light was based
substantially and fundamentally on Confidential Information obtained during his period
of employment at Magic Leap.
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34. Specifically, Mr. Xu claimed that after he left Magic Leap, in August 2016,
he “took a break” and returned to China, in the middle of 2016, and then spent
substantial time engaged in discussions about what to do next, even claiming that it did
not occur to him that he was going to be the founder and CEO of his own company,
before being encouraged to do so by individuals who became early investors in Nreal.
By Mr. Xu’s own admission, the company started in early 2017. Belying this
supposedly rapid transition, Mr. Xu acknowledged that he had resided in the United
States for nine years and did not have a network in China within the entrepreneur
community or know how to find investors. Rather, Mr. Xu stated that all of his
connections were in the United States. Nonetheless, Mr. Xu claimed he was able to
obtain financial backing, perhaps as he claimed because investors were able to “see
something in our eyes.” In reality, what Mr. Xu was able to offer potential investors
was his knowledge and understanding of the Confidential Information (including the
Confidential Designs) of Magic Leap, his former employer and principal competitor in
the marketplace for spatial computing devices.
CLAIMS FOR RELIEF
FIRST CAUSE OF ACTION
(Breach of Contract)
(Against Defendant Xu)
35. Magic Leap realleges and reincorporates by reference the allegations set
forth in paragraphs 1 through 34.
36. The PIIA is a valid and enforceable contract entered into between Magic
Leap and Mr. Xu.
37. Magic Leap has performed all promises, covenants and conditions required
to be performed on its part under the PIIA.
38. Under the terms of the PIIA, Mr. Xu agreed, among others things, as
follows: “I agree at all times during the term of my employment (my ‘Relationship with
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the Company’) and thereafter to hold in strictest confidence, and not to use except for
the benefit of the Company or to disclose to any third party without written
authorization of the Board of Directors of the Company, any Confidential Information
of the Company.” (Exhibit A, Section 2(a)) (emphasis in original).
39. Section 2 of the PIIA defines Confidential Information to include: “any
Company proprietary information, technical data, trade secrets or know-how, including,
but not limited to, research, business plans, product plans, products, services, customer
lists and customers (including, but not limited to, customers of the Company on whom
I called or with whom I became acquainted during the term of my Relationship with the
Company), market research, works of original authorship, intellectual property
(including, but not limited to, unpublished works and undisclosed patents),
photographs, negatives, digital images, software, computer programs, ideas,
developments, inventions (whether or not patentable), processes, formulas, technology,
designs, drawings and engineering, hardware configuration information, forecasts,
strategies, marketing, finances or other business information disclosed to me by the
Company either directly or indirectly in writing, orally or by drawings or observation
or inspection of parts or equipment.” (Id.)
40. Mr. Xu breached the PIIA through his unauthorized use of Magic Leap’s
Confidential Information in starting Nreal as a business and in creating and promoting
Nreal and Nreal Light products.
41. As a result of Mr. Xu’s breach, Magic Leap has been injured in an amount
to be determined.
42. Magic Leap will suffer irreparable injury as a result of the actions,
practices and conduct of Mr. Xu in breach of the PIIA until and unless he is enjoined
by the Court.
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SECOND CAUSE OF ACTION
(Interference with Contract)
(Against Defendant Nreal)
43. Magic Leap realleges and reincorporates by reference the allegations set
forth in paragraphs 1 through 42.
44. The PIIA is a valid contract between Magic Leap and Mr. Xu.
45. Nreal, on its own behalf and through its agents, had knowledge of the PIIA
and Mr. Xu’s obligations to Magic Leap under that contract.
46. Nreal, on its own behalf or through it agents, undertook intentional actions
aimed at inducing Mr. Xu to breach the PIIA, or otherwise disrupt Mr. Xu’s
performance of his obligations under the PIIA.
47. As a result of the conduct of Nreal, including the acts of its agents, Mr. Xu
breached the PIIA.
48. As a result of Nreal’s actions, including the actions and conduct of its
agents acting on Nreal’s behalf, Mr. Xu breached his obligations under the PIIA
resulting in damage to Magic Leap in an amount to be determined.
49. Pursuant to California Civil Code section 3294, Nrreal’s conduct was
fraudulent, malicious, and oppressive, and therefore constitutes the basis for punitive
damages.
THIRD CAUSE OF ACTION
(Constructive Fraud)
(Against All Defendants)
50. Magic Leap realleges and reincorporates by reference the allegations set
forth in paragraphs 1 through 49.
51. As a result of the contractual relationship as evidenced by the PIIA, Mr.
Xu gained the confidence of Magic Leap, thereby creating a relationship of confidence
that extended beyond the time of Mr. Xu’s employment by Magic Leap. Nreal knew or
should have known of Mr. Xu’s relationship of confidence with Magic Leap.
Case 5:19-cv-03445 Document 1 Filed 06/17/19 Page 15 of 19
COOLEY LLP ATTO RN EY S AT LAW
15. COMPLAINT
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52. Mr. Xu breached that confidence by failing to disclose that he was assisting
and enabling his company, Nreal and others, to violate Magic Leap’s exclusive rights
to its Confidential Information and the technological innovations (disclosed and
undisclosed) that Mr. Xu assigned to Magic Leap pursuant to the PIIA.
53. In particular, despite his promises under the PIIA, including his promise to
continue to protect the confidences of Magic Leap into the future, Mr. Xu failed to
disclose that he (1) intended to and did in fact form and establish a directly competing
company founded to develop and exploit Confidential Information, including the
Confidential Designs; (2) created a social media presence and brand promoting Nreal;
(3) entered into funding agreements with investors for the purpose of funding his new
company; and (4) promoted the Nreal Light as a lawfully designed product.
54. Magic Leap relied on Mr. Xu’s breach of confidence to its detriment. Had
Mr. Xu disclosed his omissions with respect to the formation of his business and the
object of his business, Magic Leap would have acted differently. It would have taken
faster action to communicate its rights to Mr. Xu, and to communicate its rights to those
investing in Mr. Xu’s business and actions in violation of Magic Leap’s rights.
55. As a result of Mr. Xu’s and Nreal’s actions, Magic Leap was damaged, and
Mr. Xu and Nreal were unjustly enriched by the benefits, proceeds and value obtained
through their wrongful acts. In addition to other damages that have not yet been
calculated, Magic Leap was denied the benefits of the development and potential public
release of its Confidential Designs, among other things.
56. Defendants are jointly and severally liable for the unlawful conduct alleged
herein because they aided and abetted each other, or in the alternative, conspired to
commit such wrongful conduct.
57. Pursuant to California Civil Code section 3294, Defendants’ conduct was
fraudulent, malicious, and oppressive, and therefore constitutes the basis for punitive
damages.
Case 5:19-cv-03445 Document 1 Filed 06/17/19 Page 16 of 19
COOLEY LLP ATTO RN EY S AT LAW
16. COMPLAINT
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FOURTH CAUSE OF ACTION
(Unfair Competition in Violation of California Business & Professions Code Section 17200, et seq.)
(Against All Defendants)
58. Magic Leap realleges and reincorporates by reference the allegations set
forth in paragraphs 1 through 57.
59. As set forth in Paragraphs 35-57 above, Mr. Xu, assisted by Nreal and
others, constructively defrauded Magic Leap by failing to disclose that he had built a
business based on false premises, false representations to the public, and unlawful
reliance on Magic Leap Confidential Information.
60. The foregoing conduct constituted unlawful, unfair, and fraudulent
business acts or practices in violation of California Business & Professions Code section
17200, et seq.
61. As a result of Defendants’ actions, Magic Leap was damaged, and
Defendants were unjustly enriched with the proceeds of their wrongdoing.
PRAYER FOR RELIEF
WHEREFORE, Magic Leap prays for judgment against Defendants, and each of
them, as follows:
A. For compensatory damages;
B. For disgorgement of any proceeds obtained by wrongful act;
C. For constructive trust;
D. For an accounting;
E. For interest to the extent permitted by law;
F. For an award of exemplary and punitive damages;
G. For injunctive relief; and
H. For such other and further relief as the Court may deem proper.
Case 5:19-cv-03445 Document 1 Filed 06/17/19 Page 17 of 19
COOLEY LLP ATTO RN EY S AT LAW
17. COMPLAINT
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Dated: June 17, 2019
COOLEY LLP MICHAEL G. RHODES (116127) MARK F. LAMBERT (197410) BRANDON V. STRACENER (314032)
/s/ Michael G. Rhodes Michael G. Rhodes (116127) Attorneys for Plaintiff MAGIC LEAP, INC
Case 5:19-cv-03445 Document 1 Filed 06/17/19 Page 18 of 19
COOLEY LLP ATTO RN EY S AT LAW
18. COMPLAINT
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DEMAND FOR JURY TRIAL
Plaintiff Magic Leap hereby demands a jury trial pursuant to Rule 38 of the
Federal Rules of Civil Procedure. Dated: June 17, 2019
COOLEY LLP MICHAEL G. RHODES (116127) MARK F. LAMBERT (197410) BRANDON V. STRACENER (314032)
/s/ Michael G. Rhodes Michael G. Rhodes (116127)
Attorneys for Plaintiff MAGIC LEAP, INC
205854336
Case 5:19-cv-03445 Document 1 Filed 06/17/19 Page 19 of 19
EXHIBIT A
Case 5:19-cv-03445 Document 1-1 Filed 06/17/19 Page 1 of 7
Xu_Chi Employment Agt 2015 06 26 (4).docx
EXHIBIT A
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT
As a condition of my employment with Magic Leap, Inc., a Delaware corporation and its
subsidiaries, affiliates, successors or assigns (collectively, the "Company"), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, I agree to the following terms under this Proprietary Information and Inventions Agreement (this "Intellectual Property Agreement"):
1. Employment
(a) I understand and acknowledge that my employment with the Company is for an unspecified duration and constitutes "at-will" employment. I acknowledge that this employment relationship may be terminated at any time, with or without good cause or for any or no cause, at the option either of the Company or myself, with or without notice.
(b) I agree that, during the term of my employment with the Company, I will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage in any other activities that conflict with my obligations to the Company.
2. Confidential Information
(a) Company Information. I agree at all times during the term of my employment (my "Relationship with the Company") and thereafter to hold in strictest confidence, and not to use except for the benefit of the Company or to disclose to any third party without written authorization of the Board of Directors of the Company, any Confidential Information of the Company. I understand that "Confidential Information" means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, business plans, product plans, products, services, customer lists and customers (including, but not limited to, customers of the Company on whom I called or with whom I became acquainted during the term of my Relationship with the Company), market research, works of original authorship, intellectual property (including, but not limited to, unpublished works and undisclosed patents), photographs, negatives, digital images, software, computer programs, ideas, developments, inventions (whether or not patentable), processes, formulas, technology, designs, drawings and engineering, hardware configuration information, forecasts, strategies, marketing, finances or other business information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or observation or inspection of parts or equipment. I further understand that Confidential Information does not include any of the foregoing items that has become publicly known and made generally available through no wrongful act of mine or of others who were under confidentiality obligations as to the item or items involved.
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(b) Other Employer Information. I agree that I will not, during my Relationship with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that I will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.
(c) Third Party Information. I recognize that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes. I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company's agreement with such third party.
3. Intellectual Property
(a) Assignment of Intellectual Property. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title and interest in and to any original works of authorship, domain names, inventions, concepts, improvements, processes, methods or trade secrets, whether or not patentable or registrable under copyright or similar laws, that I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the service of the Company (collectively referred to as "Intellectual Property") and that (i) are developed using the equipment, supplies, facilities or Confidential Information of the Company, (ii) result from or are suggested by work performed by me for the Company, or (iii) relate to the Company business or to the actual or demonstrably anticipated research or development of the Company. The Intellectual Property will be the sole and exclusive property of the Company. I further acknowledge that all original works of authorship that are made by me (solely or jointly with others) within the scope of and during the period of my Relationship with the Company and that are protectable by copyright are "works made for hire," as that term is defined in the United States Copyright Act. To the extent any Intellectual Property is not deemed to be work made for hire, then I will and hereby do assign all my right, title and interest in such Intellectual Property to the Company, except as provided in Section 3(e).
(b) Patent and Copyright Registrations. I agree to assist the Company, or its designee, at the Company's expense, in every proper way to secure the Company's rights in the Intellectual Property and any copyrights, patents, trademarks, domain names or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto and the execution of all applications, specifications, oaths, assignments and other instruments that the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company and its successors, assigns and nominees the sole and exclusive right, title and interest in and to such Intellectual Property, and any copyrights, patents, trademarks, domain names or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue
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after the termination of this Intellectual Property Agreement. If the Company is unable because of my mental or physical incapacity or for any other reason to secure my assistance in perfecting the rights transferred in this Intellectual Property Agreement, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent and copyright, trademark or domain name registrations thereon with the same legal force and effect as if executed by me. The designation and appointment of the Company and its duly authorized officers and agents as my agent and attorney in fact shall be deemed to be coupled with an interest and therefore irrevocable.
(c) Maintenance of Records. I agree to keep and maintain adequate and current written records of all Intellectual Property made by me (solely or jointly with others) during the term of my Relationship with the Company. The records will be in the form of notes, sketches, drawings, works of original authorship, photographs, negatives or digital images or in any other format that may be specified by the Company. The records will be available to and remain the sole property of the Company at all times.
(d) Intellectual Property Retained and Licensed. I provide below a list of all original works of authorship, inventions, developments, improvements, trademarks, designs, domain names, processes, methods and trade secrets that were made by me prior to my Relationship with the Company (collectively referred to as "Prior Intellectual Property"), that belong to me, that relate to the Company's proposed business, products or research and development, and that are not assigned to the Company hereunder; or, if no such list is attached, I represent that there is no such Prior Intellectual Property. If in the course of my Relationship with the Company, I incorporate into Company property any Prior Intellectual Property owned by me or in which I have an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Intellectual Property as part of or in connection with such Company property.
Prior Intellectual Property:
Title Date Identifying Number or Brief Description
(e) Exception to Assignments. I understand that the provisions of this Intellectual
Property Agreement requiring assignment of Intellectual Property to the Company are limited by Section 2870 of the California Labor Code, which is attached hereto as Appendix A, and do not apply to any intellectual property that (i) I develop entirely on my own time; and (ii) I develop without using Company equipment, supplies, facilities or trade secret information; and (iii) does
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N/A N/AN/A
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not result from any work performed by me for the Company; and (iv) does not relate at the time of conception or reduction to practice to the Company's current or anticipated business, or to its actual or demonstrably anticipated research or development. Any such intellectual property will be owned entirely by me, even if developed by me during the time period in which I am employed by the Company. I will advise the Company promptly in writing of any intellectual property that I believe meets the criteria for exclusion set forth herein and is not otherwise disclosed pursuant to Section 3(d) above.
(f) Moral Rights. Any assignment of copyright pursuant to this Agreement includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights” (collectively, “Moral Rights”). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby waive such Moral Rights and consents to any such action of the Company that would violate such Moral Rights in the absence of such consent. I will confirm any such waivers and consents from time to time as requested by the Company.
(g) Return of Company Documents. I agree that, at the time of leaving the employ of the Company, I will deliver to the Company (and will not keep in my possession, recreate or deliver to anyone else) any and all works of original authorship, domain names, original registration certificates, photographs, negatives, digital images, devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment or other documents or property, or reproductions of any aforementioned items, developed by me pursuant to my Relationship with the Company or otherwise belonging to the Company or its successors or assigns. In the event of the termination of my Relationship with the Company, I agree to sign and deliver the "Termination Certificate" attached hereto as Appendix B.
4. Notification of New Employer
In the event that I leave the employ of the Company, I hereby grant consent to notification by the Company to my new employer or consulting client of my rights and obligations under this Intellectual Property Agreement.
5. No Solicitation of Employees
In consideration for my Relationship with the Company and other valuable consideration, receipt of which is hereby acknowledged, I agree that during the period of my Relationship with the Company as an employee, consultant, officer and/or director and for a period of twelve (12) months thereafter, I shall not solicit the employment of any person who shall then be employed by the Company (as an employee or consultant) or who shall have been employed by the Company (as an employee or consultant) within the prior twelve (12) -month period, on behalf of myself or any other person, firm, corporation, association or other entity, directly or indirectly.
6. Representations
I represent that my performance of all the terms of this Intellectual Property Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in
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confidence or in trust prior to my Relationship with the Company. I have not entered into, and I agree I will not enter into, any oral or written agreement in conflict herewith. I agree to execute any proper oath or verify any proper document required to carry out the terms of this Intellectual Property Agreement.
7. Equitable Relief
The Company and I each agree that disputes relating to or arising out of a breach of the covenants contained in this Intellectual Property Agreement may cause the Company or me, as applicable, to suffer irreparable harm and to have no adequate remedy at law. In the event of any such breach or default by a party, or any threat of such breach or default, the other party will be entitled to injunctive relief, specific performance and other equitable relief. The parties further agree that no bond or other security shall be required in obtaining such equitable relief and hereby consents to the issuance of such injunction and to the ordering of specific performance.
8. General Provisions
(a) Governing Law; Consent to Personal Jurisdiction. This Intellectual Property Agreement will be governed by the laws of the State of California as they apply to contracts entered into and wholly to be performed within such state. I hereby expressly consent to the nonexclusive personal jurisdiction and venue of the state and federal courts located in the federal Northern District of California for any lawsuit filed there by either party arising from or relating to this Intellectual Property Agreement.
(b) Entire Agreement. This Intellectual Property Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us. No modification of or amendment to this Intellectual Property Agreement, or any waiver of any rights under this Intellectual Property Agreement, will be effective unless in writing signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Intellectual Property Agreement.
(c) Severability. If one or more of the provisions in this Intellectual Property Agreement are deemed void by law, then the remaining provisions will continue in full force and effect.
(d) Successors and Assigns. This Intellectual Property Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company and its successors and assigns.
[Signature Page Follows]
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[SIGNATURE PAGE TO PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT] Xu_Chi Employment Agt 2015 06 26 (4).docx
IN WITNESS WHEREOF, the undersigned has executed this Proprietary Information and Inventions Agreement as of _______________, 2015.
By: Name: Address:
WITNESS: By: Name: Address:
DocuSign Envelope ID: 47E28C0A-CE5E-4E38-B875-90BC7904AE8C
Chi Xu
2015-07-15 | 20:55 PM ET
385 River Oaks Pkwy #2135San Jose, CA 95134
Case 5:19-cv-03445 Document 1-1 Filed 06/17/19 Page 7 of 7
JS-CAND 44 (Rev. 06/17) CIVIL COVER SHEETThe JS-CAND 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved in its original form by the Judicial Conference of the United States in September 1974, is required for the Clerk of Court to initiate the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
I. (a) PLAINTIFFS: Magic Leap, Inc.
County of Residence of First Listed Plaintiff (EXCEPT IN U.S. PLAINTIFF CASES)
(b) Attorneys (Firm Name, Address, and Telephone Number) Michael G. Rhodes, Mark LambertCooley LLP3175 Hanover St., Palo Alto, CA 94304(650) 843-5000
DEFENDANTS: Chi Xu, an individual; Hangzhou Tairu Technology Co., Ltd. d/b/a NREALCounty of Residence of First Listed Defendant (IN U.S. PLAINTIFF CASES ONLY)
Attorneys (If Known)
II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff
1 U.S. Government Plaintiff 3 Federal Question (U.S. Government Not a Party)
2 U.S. Government Defendant 4 Diversity (Indicate Citizenship of Parties in Item III)
(For Diversity Cases Only) and One Box for Defendant) PTF DEF PTF DEF
Citizen of This State 1 1 Incorporated or Principal Place 4 4 of Business In This State
Citizen of Another State 2 2 Incorporated and Principal Place 5 5 of Business In Another State
Citizen or Subject of a 3 3 Foreign Nation 6 6 Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only)CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
110 Insurance 120 Marine 130 Miller Act 140 Negotiable Instrument 150 Recovery of
Overpayment Of Veteran’s Benefits
151 Medicare Act 152 Recovery of Defaulted
Student Loans (Excludes Veterans)
153 Recovery of Overpayment
of Veteran’s Benefits 160 Stockholders’ Suits 190 Other Contract 195 Contract Product Liability 196 Franchise
REAL PROPERTY 210 Land Condemnation 220 Foreclosure 230 Rent Lease & Ejectment 240 Torts to Land 245 Tort Product Liability 290 All Other Real Property
PERSONAL INJURY 310 Airplane 315 Airplane Product Liability 320 Assault, Libel & Slander 330 Federal Employers’
Liability 340 Marine 345 Marine Product Liability 350 Motor Vehicle 355 Motor Vehicle Product
Liability 360 Other Personal Injury 362 Personal Injury -Medical
Malpractice
CIVIL RIGHTS 440 Other Civil Rights 441 Voting 442 Employment 443 Housing/
Accommodations 445 Amer. w/Disabilities–
Employment 446 Amer. w/Disabilities–Other 448 Education
PERSONAL INJURY 365 Personal Injury – Product
Liability 367 Health Care/
Pharmaceutical Personal Injury Product Liability
368 Asbestos Personal Injury Product Liability
PERSONAL PROPERTY 370 Other Fraud 371 Truth in Lending 380 Other Personal Property
Damage 385 Property Damage Product
Liability
PRISONER PETITIONS
HABEAS CORPUS 463 Alien Detainee 510 Motions to Vacate
Sentence 530 General 535 Death Penalty
OTHER 540 Mandamus & Other 550 Civil Rights 555 Prison Condition 560 Civil Detainee–
Conditions of Confinement
625 Drug Related Seizure of Property 21 USC § 881
690 Other
LABOR710 Fair Labor Standards Act 720 Labor/Management
Relations 740 Railway Labor Act 751 Family and Medical
Leave Act 790 Other Labor Litigation 791 Employee Retirement
Income Security Act
IMMIGRATION 462 Naturalization
Application 465 Other Immigration
Actions
422 Appeal 28 USC § 158 423 Withdrawal 28 USC
§ 157
PROPERTY RIGHTS 820 Copyrights 830 Patent 835 Patent Abbreviated New
Drug Application 840 Trademark
SOCIAL SECURITY 861 HIA (1395ff) 862 Black Lung (923) 863 DIWC/DIWW (405(g)) 864 SSID Title XVI 865 RSI (405(g))
FEDERAL TAX SUITS 870 Taxes (U.S. Plaintiff or
Defendant) 871 IRS–Third Party 26 USC
§ 7609
375 False Claims Act 376 Qui Tam (31 USC
§ 3729(a)) 400 State Reapportionment 410 Antitrust 430 Banks and Banking 450 Commerce 460 Deportation 470 Racketeer Influenced &
Corrupt Organizations 480 Consumer Credit 490 Cable/Sat TV 850 Securities/Commodities/
Exchange 890 Other Statutory Actions 891 Agricultural Acts 893 Environmental Matters 895 Freedom of Information
Act 896 Arbitration 899 Administrative Procedure
Act/Review or Appeal of Agency Decision
950 Constitutionality of State Statutes
V. ORIGIN (Place an “X” in One Box Only) 1 Original
Proceeding 2 Removed from
State Court 3 Remanded from
Appellate Court 4 Reinstated or
Reopened 5 Transferred from
Another District (specify) 6 Multidistrict
Litigation–Transfer 8 Multidistrict
Litigation–Direct File
VI. CAUSE OF ACTION
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):
Brief description of cause:
VII. REQUESTED INCOMPLAINT:
CHECK IF THIS IS A CLASS ACTION UNDER RULE 23, Fed. R. Civ. P.
DEMAND $ CHECK YES only if demanded in complaint: JURY DEMAND: Yes No
VIII. RELATED CASE(S),IF ANY (See instructions):
JUDGE DOCKET NUMBER
IX. DIVISIONAL ASSIGNMENT (Civil Local Rule 3-2)(Place an “X” in One Box Only) SAN FRANCISCO/OAKLAND SAN JOSE EUREKA-MCKINLEYVILLE
DATE SIGNATURE OF ATTORNEY OF RECORD
X X
X
X
X
28 U.S.C. § 1332
Breach of Contract; Interference with Contract; Constructive Fraud; Unfair Competition in Violation of California Business & Professions Code section 17200, et seq.
Xexceeding $75,000
X
06/17/2019
Broward County, Florida
/s/ Michael G. Rhodes
Case 5:19-cv-03445 Document 1-2 Filed 06/17/19 Page 1 of 2
JS-CAND 44 (rev. 07/16)
INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS-CAND 44
Authority For Civil Cover Sheet. The JS-CAND 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved in its original form by the Judicial Conference of the United States in September 1974, is required for the Clerk of Court to initiate the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows:
I. a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, useonly the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title.
b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at thetime of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In landcondemnation cases, the county of residence of the “defendant” is the location of the tract of land involved.)
c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, notingin this section “(see attachment).”
II. Jurisdiction. The basis of jurisdiction is set forth under Federal Rule of Civil Procedure 8(a), which requires that jurisdictions be shown inpleadings. Place an “X” in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.
(1) United States plaintiff. Jurisdiction based on 28 USC §§ 1345 and 1348. Suits by agencies and officers of the United States are included here.
(2) United States defendant. When the plaintiff is suing the United States, its officers or agencies, place an “X” in this box.
(3) Federal question. This refers to suits under 28 USC § 1331, where jurisdiction arises under the Constitution of the United States, an amendmentto the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant codetakes precedence, and box 1 or 2 should be marked.
(4) Diversity of citizenship. This refers to suits under 28 USC § 1332, where parties are citizens of different states. When Box 4 is checked, thecitizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversitycases.)
III. Residence (citizenship) of Principal Parties. This section of the JS-CAND 44 is to be completed if diversity of citizenship was indicated above.Mark this section for each principal party.
IV. Nature of Suit. Place an “X” in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, issufficient to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more thanone nature of suit, select the most definitive.
V. Origin. Place an “X” in one of the six boxes.
(1) Original Proceedings. Cases originating in the United States district courts.
(2) Removed from State Court. Proceedings initiated in state courts may be removed to the district courts under Title 28 USC § 1441. When thepetition for removal is granted, check this box.
(3) Remanded from Appellate Court. Check this box for cases remanded to the district court for further action. Use the date of remand as the filingdate.
(4) Reinstated or Reopened. Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.
(5) Transferred from Another District. For cases transferred under Title 28 USC § 1404(a). Do not use this for within district transfers ormultidistrict litigation transfers.
(6) Multidistrict Litigation Transfer. Check this box when a multidistrict case is transferred into the district under authority of Title 28 USC§ 1407. When this box is checked, do not check (5) above.
(8) Multidistrict Litigation Direct File. Check this box when a multidistrict litigation case is filed in the same district as the Master MDL docket.
Please note that there is no Origin Code 7. Origin Code 7 was used for historical records and is no longer relevant due to changes in statute.
VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictionalstatutes unless diversity. Example: U.S. Civil Statute: 47 USC § 553. Brief Description: Unauthorized reception of cable service.
VII. Requested in Complaint. Class Action. Place an “X” in this box if you are filing a class action under Federal Rule of Civil Procedure 23.
Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction.
Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.
VIII. Related Cases. This section of the JS-CAND 44 is used to identify related pending cases, if any. If there are related pending cases, insert the docketnumbers and the corresponding judge names for such cases.
IX. Divisional Assignment. If the Nature of Suit is under Property Rights or Prisoner Petitions or the matter is a Securities Class Action, leave thissection blank. For all other cases, identify the divisional venue according to Civil Local Rule 3-2: “the county in which a substantial part of theevents or omissions which give rise to the claim occurred or in which a substantial part of the property that is the subject of the action is situated.”
Date and Attorney Signature. Date and sign the civil cover sheet.
Case 5:19-cv-03445 Document 1-2 Filed 06/17/19 Page 2 of 2