Rex Venture Group LLC is an e-commerce company that operates websites.

According to the Complaint, it is alleged that Defendants solicited Plaintiffs through the Internet and over interstate wires to participate in the ZeekRewards program, a self-described “affiliate advertising division” for the companion website, www.zeekler.com (“Zeekler”), through which Defendants operate penny auctions.

During the Class Period, the Defendants raised more than $600 million from approximately 1 million investors worldwide, and approximately $38,450.00 from the proposed class representatives, by making unregistered offers and sales of securities through the ZeekRewards website in the form of Premium Subscriptions and VIP bids.

On August 17, 2012, Plaintiffs discovered that ZeekRewards was in fact a massive Ponzi and Pyramid scheme when the Securities and Exchange Commission filed suit in Rex Venture’s home state of North Carolina.

On December 3, 2012, the Court issued an order transferring this action to the United States District Court for the Western District of North Carolina.

On July 3, 2013, the Court issued a stay in its discretion in an abundance of caution to maintain the status quo “until further order of the court.” On September 25, 2013, the Court determined that it would be appropriate for the receiver and Defendant to respond substantively to the arguments made by Plaintiffs.

On December 30, 2013, the Plaintiffs’ motion to lift stay was denied. Pursuant to Federal Rule of Appellate Procedure 4(a), the Plaintiffs filed an appeal to the United States Court of Appeals for the Fourth Circuit based on the order from the District Court. The Court of Appeals affirmed the decision of the District Court on October 10, 2014.

The parties voluntarily dismissed the case on May 17, 2022.