Case Page

 

Case Status:    ONGOING    
On or around 12/16/2014 (Other)

Filing Date: August 24, 2012

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 (“SEC”) 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.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Privately Traded
Market Status: Privately Held

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. North Carolina
DOCKET #: 12-CV-02173
JUDGE: Hon. Carl Barbier
DATE FILED: 08/24/2012
CLASS PERIOD START: 01/01/1997
CLASS PERIOD END: 08/24/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Patrick Miller LLC
    400 Poydras Street, Ste. 1680, Patrick Miller LLC, LA 70130
    504.680.4318 504.680.4318 ·
No Document Title Filing Date
COURT: W.D. North Carolina
DOCKET #: 12-CV-00800
JUDGE: Hon. Carl Barbier
DATE FILED: 12/04/2012
CLASS PERIOD START: 01/01/1997
CLASS PERIOD END: 08/24/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
No Document Title Filing Date
No Document Title Filing Date