Securities & Exchange Commission ("Commission") Establishes Longfin Fair Fund--Summary Notice of Distribution

WASHINGTON, Aug. 31, 2020 /PRNewswire/ --

UNITED STATES OF AMERICA
SOUTHERN DISTRICT OF NEW YORK

If you purchased Longfin Class A common stock, traded on the NASDAQ under the trading symbol LFIN ("Security") during the period June 16, 2017 through April 6, 2018, inclusive ("Recovery Period"), you may be eligible to recover from the Longfin Fair Fund.  You must submit a completed Proof of Claim Form with the necessary documentation so that it is postmarked or, if not sent by U.S. Mail, received by December 14, 2020 (the "Filing Deadline") to be eligible to recover from the Fair Fund.

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY.  IF YOU TIMELY SUBMIT A CLAIM FORM AND YOU SATISFY THE ELIGIBILITY CRITERIA UNDER THE DISTRIBUTION PLAN APPROVED BY THE COURT, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION PAYMENT FROM THE LONGFIN FAIR FUND. THIS NOTICE CONTAINS IMPORTANT INFORMATION REGARDING THE LONGFIN FAIR FUND, THE PLAN, AND ELIGIBILITY UNDER THE PLAN.

Background

On April 4, 2018, the U.S Securities and Exchange Commission (the "SEC") commenced the captioned action against Longfin Corp. ("Longfin"), Venkata S. Meenavalli, Andy Altahawi, Suresh Tammineedi, and Dorababu Penumarthi (collectively, the "Defendants").  The SEC alleged that the Defendants raised over $27 million through the unregistered distribution of Longfin securities in violation of Section 5 of the Securities Act of 1933, which prohibits such unregistered sales unless a specific exemption applies under the federal securities laws.  The Court 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. 

Of this amount, the Defendants have paid approximately $26.1 million (the "Longfin Fair Fund"), which is deposited in an interest-bearing account at the US Treasury's Bureau of Fiscal Service ("BFS").  Any additional funds timely received will be added to the Longfin Fair Fund for disbursement to Eligible Claimants pursuant to the Distribution Plan approved by the Court (the "Plan").

Who is Potentially Eligible for Compensation?

If you purchased Longfin Class A common stock during the period June 16, 2017 through April 6, 2018, inclusive; are not an Excluded Party as defined in the Plan; and suffered a loss according to the Plan; you may be eligible for a Distribution Payment from the Longfin Fair Fund. Distribution Payments will be subject to a $10.00 Minimum Distribution Amount.

Excluded Parties are defined as any director or officer, past or present, of Longfin or any of their past or present advisers, agents, affiliate (or any of the nominees, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities of the foregoing) who served in such capacity during the Recovery Period; the defendants in the captioned action and in SEC v. Longfin Corp., et al., 19-CV-5296 (DLC) (S.D.N.Y.) (or any of such defendant's advisers, agents, affiliates, nominees, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities); the Distribution Agent, its employees, and those persons assisting the Distribution Agent in its role as the Distribution Agent; and any purchaser or assignee of another Person's purported right to obtain a recovery from the Fair Fund for value, provided, however, that this provision shall not be construed to exclude Third-Party Filers or those Persons who obtained such a right by gift, inheritance, devise or operation of law.

How to Make a Claim

You must complete and sign the Claim Form and submit it to Distribution Agent so that it is postmarked or, if not sent by U.S. Mail, received no later than December 14, 2020.

The Claim Form can be downloaded at www.LongfinFairFund.com. If you have any questions or would like the Court-appointed Distribution Agent to send you a Claim Form, call (855) 917-3464 or email [email protected].

You can file a Claim Form by mailing the completed form to:

Longfin Fair Fund
Distribution Agent
P.O. Box 6006
Portland, OR 97228-6006

If you do not complete and timely submit a Claim Form, you will not be considered for eligibility to receive a Distribution Payment under the Plan.

Obtaining a Plan of Distribution and Additional Information

You can get a copy of the Plan and additional information concerning the Longfin Fair Fund at www.LongfinFairFund.com and https://www.sec.gov/divisions/enforce/claims/longfin.htm. You can also obtain a copy of the plan by emailing the Distribution Agent at [email protected], calling the Distribution Agent at (855) 917-3464, or writing to Longfin Fair Fund, Distribution Agent, P.O. Box 6006, Portland, OR 97228-6006.

SOURCE Epiq

Related Links

http://www.LongfinFairFund.com