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NYSCEF DOC. NO. 2 COUNTY OF NEW YORK SUPREMECOURT OF THE STATEOF NEW YORK BENJAMIN

NYSCEF DOC. NO. 2

COUNTYOFNEWYORK

SUPREMECOURTOFTHESTATEOFNEWYORK

BENJAMINWEYandNYG

CAPITAL,LLC,

v.

Plaintiffs,

ANDREW

MOXLEY,

MICHAEL

ARNOLD

NELSON

ROBERT

MARKET

NASDAQ,INC.,

THE

NASDAQ

STOCK

LLC.,

ADENA

FRIEDMAN,

GREIFELD,

GRIGGS,

GOLUB,

EMEN,

MICHAEL

EDWARD

WILLIAM

ALAN

SPLINTER,

SLATTERY,

KNIGHT,

ROWLAND,

JR,

KEELY

ROBERTMcCOOEY

HALL,

and

Defendants.

IndexNo.:

DatePurchased:

COMPLAINT

LUPKINPLLC

80BROAD

NEW

YORK,

STREET,

SUITE1301

NEWYORK10004

(646)

367-2771

AttorneysforPlaintiffs

1 of 55

INDEX NO. 651684/2018 RECEIVED NYSCEF: 04/09/2018

NYSCEF DOC. NO. 2 I N D E X N O . 6 5 1

NYSCEF DOC. NO. 2

INDEX NO. 651684/2018 RECEIVED NYSCEF: 04/09/2018

TABLEOFCONTENTS

NATUREOFTHECASE

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JURISDICTIONANDVENUE

7

PARTIES

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RELEVANTNON-PARTY

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FACTUALALLEGATIONS

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NASDAQ A.

ENTERPRISE

AMULTIBILLIONDOLLARFOR-PROFITGLOBAL -

12

B.CRITICALTONASDAQ'SSUCCESSISITSPUBLICIMAGEASA

TRUSTWORTHYEXCHANGETHATPURPORTEDLYLISTSQUALITY

COMPANIES

13

C.2007-2010GLOBALFINANCIALCRISISADVERSELYIMPACTS

U.S.-

BASEDSTOCK

MARKETS'

LISTINGS,

DECIMATINGTHEIREARNINGS

14

D.U.S.-BASEDSTOCKEXCHANGESFLOCKTOCHINAFORNEW

LISTINGSANDREVENUEGROWTHOPPORTUNITIES

15

E.MR.WEYPLAYSAPROMINENTROLEINHELPINGTOBRIDGETHE

NEWEXCHANGELISTINGS

GAPBETWEENCHINESECOMPANIESANDTHEU.S.MARKETFOR

19

F.

CONCERNEDTHATTHEFOREIGNNEWCOMERSDIMINISHNASDAQ'S

NASDAQ

SOURSONITSNEWLYLISTEDCHINESE

COMPANIES,

STATUREANDREPUTATION

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NASDAQ G.

SHIFTSINTODAMAGE-CONTROLMODETOSALVAGEITS

COMMERCIALPROFITABILITYDEPENDS

REPUTATION

AREPUTATIONUPONWHICHITSCONTINUED -

24

24

H.BARRON'SMAGAZINEPROVIDES

NASDAQ

WITHITSSCAPEGOAT

-

MR.~WEY

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NASDAQ I.

CONTINUESTOSMEARMR.WEYDESPITEINVOLVEMENT

OFRESPECTEDPOLITICIANSWHOINTERCEDEONHISBEHALF

30

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NYSCEF DOC. NO. 2 I N D E X N O . 6 5 1

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INDEX NO. 651684/2018 RECEIVED NYSCEF: 04/09/2018

J.NASDAQ'SFALSESTATEMENTSTOTHE

SEC,FBI,

ANDUNITED

NEWYORKABOUTNASDAQ'SNONEXISTENTLISTINGRULE

STATESATTORNEY'SOFFICEFORTHESOUTHERNDISTRICTOF

31

K.NASDAQ'SFALSESTATEMENTSLEADTOTHEISSUANCEOF

FAR-

REACHING,

AND

OFFICE,

ILLEGALFBISEARCHWARRANTSFORMR.WEY'SHOME

IMPINGINGSUBSTANTIALLYANDADVERSELYUPON

HISLIFEANDBUSINESS

38

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L.NASDAQ'SFALSESTATEMENTSLEADTOMR.WEY'SINDICTMENT

M.

ANDSECENFORCEMENTCHARGES

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NASDAQ

OFFICIALSREVELINMR.WEY'S

MISFORTUNE,

INTOMOTIONTHROUGHTHEIRLIESTOFEDERALLAW

CELEBRATINGTHEINDICTMENTTHATTHEYTHEMSELVESSET

ENFORCEMENTAUTHORITIES

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N.NASDAQ'SWEBOFMALICIOUSDECEPTIONUNRAVELSINASERIES

JUDGEPRESIDINGOVERTHECRIMINALCASEAGAINSTMR.WEY

OFEXTRAORDINARYRULINGSBYTHESECANDTHEFEDERAL

i.TheSECReversestheImproper

Delisting

ofMr.Wey'sClientina

FabricatedGroundsfortheDelisting

Landmark

Ruling

Against

NASDAQ;NASDAQ

DeterminedtoHave

42 42

42

ii.FederalJudgeNathanFindsSearchesofMr.Wey'sHomeandOffice

UnconstitutionalandSuppressesAllSearchResults

43

iii.TheGovernment

Voluntarily

Voluntarily

DismissestheEntire

Indictment,

DismissesItsEntireComplaintAgainstMr.Wey

ASANDFORAFIRSTCAUSEOFACTION(Malicious

Prosecution)

andtheSEC

44 44

ProspectiveEconomic

ASANDFORASECONDCAUSEOFACTION(TortiousInterferencewith

Advantage)

ASANDFORATHIRDCAUSEOFACTION(TortiousInterferencewith

Contract)

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44

46

NYSCEF DOC. NO. 2 I N D E X N O . 6 5 1

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PlaintiffsBenjamin

Wey

andNYG

Capital,

throughtheir

attorneys,

asandfortheircomplaint

NASDAQ,Inc.,

the

NASDAQ

StockMarket

LLC,

LLC

"Plaintiffs"

(collectively"Plaintiffs"),

("Complaint")

("Complaint"

againstDefendants

Adena

Friedman,

Robert

Greifeld,

by

Michael

Moxley,

Splinter,

Michael

("Defendants"),

("

Defendants"

Nelson

Emen,

allege,

Griggs,

Edward

Knight,

Arnold

Golub,

Alan

Rowland,

Robert

uponinformationand

McCooey,Jr,

belief,

asfollows:

William

Slattery,Keely

andAndrewHall

NATUREOFTHECASE

1.Thiscaseillustratesthelengthstowhichsome

avaricious,for-profit,

and

multibilliondollarpubliccompanieswillgotomaximizeshareholdervalueandadvance

theirownself-interests.Tobe

sure,

storiesaboutdishonestcorporateconductsaturatethe

headlines,

butthiscaseis

markedly

different

differentintermsofthecorporateactor -

involved,

thegravemisconductit

orchestrated,

andthe

devastating

consequencesofthat

misconductonthelifeofan

innocent,hardworking

Americancitizen.Thewrongdoerhere

is

NASDAQ,

whichownsandoperates10equitiesmarketsaroundthe

world,including

the

largestsingle

liquidity

poolforU.S

equities,

anditsseniorexecutives.Themisconduct

involves

nothing

SECandfederal

shortof

deceiving

federallawenforcementauthorities

prosecutors)byinventingtrumped-upNASDAQlisting

(including

the

FBI,

prohibitionsand

fabricating

success

story

boguscriminal

activityby

their

target,

BenjaminWey.Mr.

Wey

isanAmerican

whoimmigratedfromChinaata

youngage,

attendedcollegeon

scholarship,

securedtwoadvanceddegreesfrom

top

universitiesandachievedgreatsuccessasan

Americanemployerinthefieldoffinance.Theincalculable

harm,

bothintendedand

actualized,

wasthedecimationofMr.Wey'sonce

thriving

businessandprofessionallife.

1

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2.NASDAQ'sshamefulanddeceitfulconducthasitsrootsintheGreat

Recessionof

2007-2010,

a

harrowing

periodforthe

marketsspecifically.Theimpactofthe

crisis,

which

economygenerally

andthefinancial

nearly

resultedinthemeltdownofthe

global

bankingsystem,

includedadrasticdeclineinstocklistingsontheestablishedU.S.

stock

markets,NASDAQamong

them.

NASDAQ,

3.Giventhecriticalimportanceof

listing

feestoitsoverall

whichisinaconstantbattlewiththeNewYorkStockExchange

profitability,

("NYSE")

to

secure

listings,

scrambledforcompanies

willing

andabletolistonits

exchange;

after

all,

thegreaterthenumberof

listings,

thegreaterthe

trading

volume

and,therefore,

thegreater

theoverall

profitability

oftheexchange.NASDAQ'smostseniorexecutivesandboard

membersidentifiedChinaasatarget-rich

environment,

withoneofitsseniorexecutives

proclaiming

China."1

inaninterview

that,

"wethinkthere'snobetterplacetofind

[listings],

thanin

4.

Having

identifiedChinaastheanswertoitsfinancial

problems,

NASDAQ

begananactiveandaggressive

recruiting

campaigntolureChinesecompaniesto

listonitsexchange.

NASDAQ

openedaposh

Beijing

officeinDecember2007aspartofits

marketingefforts,touting

a"newlegalstatusthatwillenableitto

'publicly,

openly'

woo

Chinese

companies,"

Guang

Xun

Xu,

NASDAQ's

Managing

DirectorforAsiatoldthe

WallStreetJournalinaDecember2007

interview.2 interview.But

NASDAQ

neededtosurmounta

substantial

States.

hurdle;

itneededtobridgetheculturaldividebetweenChinaandtheUnited

http://abcnews.go.com/Blotter/us-investors-lose-billions-alleged-chinese-stock-schemes/story?id=18164787. 1

.com/articles/SB119659953321310907. https://www.wsj.com/articles/SB119659953321310907. 2

2

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5.InBenjamin

Wey,NASDAQ

founditsbridge.Mr.

Wey

wasa

successfulfinancialprofessionalwhonot

only

understoodtheU.S.andChineseculturesand

financial

markets,

butwhoalsomaintainedcriticalcontactsinbothcountries.GivenMr.

Wey'sunique

position,NASDAQ

seniorexecutivesworkedto

develop

closetieswithhim

andhis

acumen,

associates,ingratiating

extensivecontactsin

themselvesand

hoping

to

parlay

Mr.Wey'sbusiness

China,

anduniqueperspectiveintoanincreasedrosterof

Chinesecompaniesonitsexchange.TheseexecutivestookMr.

Wey

golfing,

participatedinvarioussocialeventswithMr.

Wey,

andwere

andhisassociates

frequently

seenathis

offices.Joint

NASDAQ

marketing

eventswereheldacrossChinatoenticecompaniestoconsidera

listing.ThanksinlargeparttoMr.Wey'sreputationandhard

work,

NASDAQ's

recruitmenteffortsyieldedtangibleresults.In2009

alone,NASDAQ

secured33new

listingsofChina-based

companies,

Beginning 6.

in

whichpaid

NASDAQ

millionsofdollarsin

listing

fees.

to mid-

2010,however, late-

NASDAQ'shungerfor

Chinesecompaniesbegantowane.That

summer,

theSecuritiesandExchangeCommission

("SEC")

auditing

KPMG,

launchedafraudinvestigationintoseveralChinesecompaniesandtheprominent

firmsthatassistedtheminthe

andPricewaterhouseCoopers.

listingprocess,includingDeloitte,

Ernst&

Young,

NASDAQ

aneffective

7.TheSECinvestigationyieldedwidespread

publicity,casting

inan

unflattering

light.

NASDAQ

hadtoutedits"rigorouslistings

program"3

filtering

mechanismtoguardagainstcompanieswithquestionablebooksand

as

records.

Good

Indeed,

Housekeeping

thepublicbelievedthata

listing

on

NASDAQ

wasakintotheproverbial

SealofApproval.YettheSEC'sinvestigationrevealedthat

NASDAQ

http://abcnews.go.com/images/Blotter/NASDAQ.pdf 3

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hadnot

thoroughly

vettedcompaniesbefore

listingthem,leaving

the

investing

public

disillusionedandangry.

Having

— onceviewedChina-basedcompaniesasa

panacea,

the

adverse

publicity

caused

by

theSECinvestigationturnedthesecompaniesfromdarlings

intoscourges.

NASDAQ 8.

hadlistedmostof

them,

farmorethan

any

otherexchange.

NASDAQ

mademillionsofdollarsin

listing

feesofftheseindiscriminately-selected

Chineseissuers.In

addition,NASDAQ

derivedbenefitfromadditional

tointernational

company

listingsonitsexchange.

NASDAQ 9.

panicked

and,

desperatetorestoreits

a

way

todeflectblame.AnAugust2010articleinBarron's

seemingly

withaperfecttarget

--

BenjaminWey.

Having

soughtafterandprofited

trading

reputation,

supplied

greatly

volumesdue

lookedfor

NASDAQ

fromaccess

toMr.Wey'sChina

contacts,NASDAQ

decidedtomakeMr.

Wey

itsscapegoat.

Thus,

the

instrumentofNASDAQ'ssuccessbecamethetargetofitswrath.Theplanwasto

demonstratethat

NASDAQ

had"cleaned

house"

andthattheChinese

malignancy,

supposedly

personified

by

Mr.

Wey,

hadbeenexcised.

10.But

NASDAQ

wasnotcontentwith

simplypointing

afingeratMr.

Wey.

Instead,NASDAQ

wenttofederallawenforcement

officials,including

UnitedStatesAttorney'sOfficefortheSouthernDistrictofNewYorkandthe

the

FBI,

SEC,

the

accusing

Mr.

Wey

of

conspiring

toviolatea

NASDAQlisting

ruleand

deceptiveschemetocoveritup.Theproblemwasthattheruleprohibition

engaging

ina

NASDAQ

accusedMr.

Wey

of

conspiring

toevadedidnotexist.

11.Whencompaniesliston

NASDAQ,they

mustmeetcertain

requirements.Atallrelevant

times,

onesuchrequirementwasNASDAQ's

listing

listing

rule

4

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5505(a)(3)(formerlylisting

rule

4310(c)(6))

Rule"

theso-called"300RoundLotRule").The -

rulerequiresa

company

tohavenofewerthan300shareholders

"round

lot,"

whichisastockpositionof100sharesormore.

holding

aminimumofa

NASDAQofficials, 12.

inwhomtheSECandotherlawenforcement

authoritiesplacedenormous

trust,deliberately

of

violating

the300RoundLotRule

bybolstering

misledthese

authorities,accusing

asoon-to-be-listedcompany's

Mr.

Wey

shareholderbase

bygifting

tohis

NASDAQaccusers,

sharesto

Mr.

Wey

inflatethenumberofshareholders.

friends,relatives,

andbusinessassociates.

engagedintheseelaboratemachinationsto

According

artificially

NASDAQfailed,however,

totelltheauthoritiesthat:

Mr.

Wey

didnotgift

the"300RoundLot

anyshares,

Rule"

and

2)

thereisnoprohibitionagainst

gifting

sharesbecause

doesnotdistinguishbetweenpurchasedandgiftedshares.

Additionally, 13.

noprohibitionongiftedsharescouldbeengraftedonto

the

listing

rulewithout

NASDAQ

first

submitting

thechangetoarigorous

rule-making

process.Had

NASDAQ

wishedto

modify

theSECpursuanttoRule19b-4fora"rule

the

listingrule,

itwouldhaveneededtopetition

change".Thisneverhappened.Tothis change".4

day,

NASDAQ

Rule"

"300RoundLot

stilldoesnotimpose

any

such

restriction,

and

moreover,

NASDAQ

deliberately

hasneverissued

any

formalinterpretiveguidanceforthisrule.

14.WhatfollowednextforMr.

Wey

wasdisastrous.Basedupon

falsestatementsmade

by

theDefendantstolaw

enforcement,

severalFBI

agentssworeoutsearchwarrantapplicationsforMr.Wey'shomeand

office,

andthese

the

searchwarrantswere

ultimately

issued.TheFBIexecutedthesearchwarrantsin

January

1)

4

17.C.F.R.

§

240.19(b)-4.SeealsoTheSecuritiesandExchangeCommissionForm

change:https://www.sec.gov/files/form19b-4.pdf.

19b-4,

applicationforarule

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2012andseized

virtuallyeveryscrap

ofpaperandelectronicdeviceatMr.Wey'shomeand

officeandtoldhis

NASDAQ".

family

thattheagentswere

"looking

forevidenceof

Weymisleading

the

15.InSeptember

2015,

baseduponNASDAQ'sintentional

misrepresentationofitsownruletolawenforcement

authorities,

aManhattanfederalgrand

jury

indictedMr.Wey.Aswastruewiththesearchwarrant

applications,

theindictment

accusedMr.

Wey

NASDAQlisting

of

violating

andthen

coveringup

requirements.Ataroundthesame

thesamenonexistentprohibitionofthe

time,

theSECfiledacivilcomplaint

againstMr.

Wey

inconnectionwiththisallegedmisconduct.

16.ItwasnotuntilAugust

2017,

twoyearslaterandafter

spending

millionsofdollarstodefend

courageous93-page

decision,

himself,

thatMr.Wey'snightmare

finally

cametoanend.Ina

SouthernDistrictofNewYorkJudgeAlisonNathan

suppressedallthesearchresults

asearchbuiltonNASDAQ'sliestotheFBI -

-

concluding

thatMr.Wey'sFourthAmendmentrightshadbeenviolatedandthatnosuspectedcriminal

conducthadbeencited.

indictment.Amonth

Shortlythereafter,

later,

inSeptember

dismissedallitschargesagainstMr.Wey.

thegovernment

voluntarily

dismissedthe

2017,

theSECfollowedsuitand

voluntarily

Wey

Wey

was

had

andMr.

ethics:

17.AlthoughMr.

Wey

securedcomplete

exoneration,

thedamagetoMr.

already

extensiveandirreversible.NASDAQ'sshamefulcampaignagainstMr.

already

yieldeditsintendedconsequences.NASDAQ'sreputationwas

restored,

Wey

was

effectively

18.Onits

putoutofbusiness.

website,NASDAQ

toutsitselfastheparadigmof

integrity

and

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acriticalroleontheworld'seconomic

dealings.Asaglobalorganizationwithdiverse

advanceandadheretothehighestofethicalprinciplesinallour

GoodEthicsisGoodBusiness.Nasdaq'smissioncanberealized

only

ifwe

day-to-day

responsibilitiesand

self-regulatory

stage,

wehaveheightenedreasonsfor

insisting

uponethical

conduct.

conduct.5

19.NASDAQ'smisconductinthiscasenot

only

failstolive

up

toits

Business"

high-minded"GoodEthicsisGood

slogan,

butconstitutestheapexofhypocrisy.

NASDAQknowingly

and

intentionally

interferedwithMr.Wey's

business,

andMr.

Wey

hascommencedthislawsuittoseeksomemeasureofrecompense.

JURISDICTIONANDVENUE

20.Jurisdictionoverdefendantsisproperforoneormoreofthe

following

reasons:thedefendantsarepresentinthestatewithinthe

meaning

ofCPLR

and,

pursuanttoCPLR

302,

defendantscommittedtortiousconductoutsidethe

state,

causing

damagewithinthestate.

301,

21.VenueisproperunderCPLR503becausePlaintiffsresideinNew

YorkCounty.

PARTIES

22.PlaintiffBenjamin

Wey

livesinNewYorkCity.Hewasbornin

Chinain1971andattendedcollegeintheU.S.on

scholarship,earning

abachelor'sdegree

in1994andaMasterofBusinessAdministrationin1999.In

2013,

Mr.

Wey

wasawardeda

MasterofSciencedegreefromtheColumbiaBusinessSchoolofColumbiaUniversity.He

becameanaturalizedU.S.citizenin2001.

consulting

23.Mr.

Wey

hasspentmorethan20yearsintheinternationalbusiness

industry.Hehasdevelopedexpertisein

finance,

fromatechnicalandcultural

.com/discover/co http://businessnasdaq.com/discover/corporate-responsibility-and-sustainability/ethics/index.html. 5

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perspective,

Global

Group,

bothintheU.S.andChina.Inoraround

an

entity

thatadvisesChineseinvestors

2001,

Mr.

regarding

Wey

high

co-foundedNewYork

quality,

profitable

investmentand

financing

opportunitiesintheinternationalcapitalmarkets.Heconducted

businessasChiefExecutiveOfficeofNYG

Capital,LLC,

dba"NewYorkGlobal

Group."

Mr.

Wey

boardof

hasneverbeenamemberof

any

publicly-tradedcompany.

24.PlaintiffNYG

NASDAQ,

Capital,

LLC

norhasheeverjoinedthemanagementor

("NYG")

isheadquarteredinNewYork

City

anddoesbusinessunderthetrademarkedname"NewYorkGlobalGroup".Atall

relevant

times,

NYGhasfocusedoncorporate

advisory,

market

entry,

governmentrelations

andcriticalcrisismanagementissuesinChinaandelsewhere.

25.Defendant

NASDAQ,

Inc.

servicescorporationthatownsandoperatesthe

("NASDAQ")

NASDAQ

Stock

New

York,

andtenotherEuropeanstockexchanges.

NASDAQ

isafor-profitfinancial

Market,

headquarteredin

alsooperatesoneofthe

world'slargestnetworksof

exchanges,

whichspans25

markets,

one

clearinghouse,

fivecentralsecuritiesdepositories.Itsmarketstrademultipleassetclasses

including

and

equities,options,futures,fixed-income,commodities,

derivativesandstructuredproducts.

NASDAQ

isthepreferred

listing

— destinationformajorbrandsfrom

technology

to

consumer

products,including

Alphabet(Google'sparent

company),Amazon,Facebook,

andTesla.Acrossitsglobal

exchanges,NASDAQ

listsmorethan3,700companiesin35

countries,representing

morethan$10trillionintotalmarketvalue.

6

.com/media/Nasdatem5044-43436.pdf. http9/businessnasdaq.com/media/Nasdaq%20Corporate%20Factsheet%202017 6

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Market")

Market"

26.Defendantthe

NASDAQ

StockMarketLLC

("NASDAQ

Stock

isaregisterednationalsecuritiesexchange.Itoperatesasanelectronicstock

marketandofferssecurities

listing,trading,

andinformationproductsandservices.

27.Although

NASDAQ

beganasa

subsidiary

oftheNational

AssociationofSecuritiesDealers

("NASD"),

whichwasanon-profit

self-regulatory

organization

("SRO"),

("SRO"),7

organization ("SRO"), ("SRO"),7

for-profit

entity

in

2002.8

theNASDspunoffthe

NASDAQ

StockMarketasa

stand-alone,

28.In

January2006,

theSECapprovedNASDAQ'sapplicationto

becomeanationalsecurities

Marketunderthestocksymbol

approximately

NASDAQ

$83per

share,

sharesareowned

exchange,

"NDAQ."

and

NASDAQ

AsofMarch

listeditselfonthe

NASDAQ

27,2018,NASDAQ

was

Stock

trading

withamarketcapitalizationof$14billion.Almost20%of

"insiders"

by

suchas

NASDAQ

officers.

29.DefendantEdwardKnighthas

been,

atalltimesrelevanttothis

at

Complaint,

NASDAQ

and

regulatory

theExecutiveVice

andthe

NASDAQ

President,

Chief

StockMarket.His

functionsaswellasgovernment

Regulatory

duties,

relations,

OfficerandGeneralCounselat

whichspanNASDAQ'scommercial

include

overseeing

the

listing

of

companiesandinteractionswiththeSECandotherlawenforcement.FromJune1999until

becoming

GeneralCounselof

NASDAQ

in

2001,

KnightservedastheExecutiveVice

regulatorybody

2007,

manipulativeactsand

oversight

associationofinvestment

Thepurposeof 7

establishing

theNASDwastocreateasystemofcooperativeregulationthroughthe

andbrokers

doing

adopting

businessinthese

and

enforcing

markets,

voluntary

bankers,dealers,

withgovernmental

by

SEC.TheNASDwasresponsiblefor

practices,

rulestopreventfraudulentand

topromotejustandequitableprinciplesoftradeandtoprotectinvestorsandthe

publicinterest.In

theNASDmergedwiththeNewYorkStockExchange'sregulationcommitteetoforma

IndustryRegulatoryAuthority,

or"FINRA".

knownastheFinancial

http://www.finra.org/newsroom/2002/nasd-board-approves-stock-sale-nasdaq 8

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PresidentandChiefLegalOfficeroftheNASD.Knightisalsoaformerlobbyistin

WashingtonD.C.Inadditiontohis

salary

and

bonus,

asof

January2,2018,

Knight

personally

owns

approximately

60,369

NASDAQshares,presently

valuedat$5,010,627.

30.DefendantAdenaFriedmanhas

been,

atalltimesrelevanttothis

Complaint,

thePresidentandChief

Operating

OfficeratNASDAQ.Inthat

responsibleforallaspectsofNASDAQ'sbusiness.Inadditiontoher

salary

role,

and

sheis

bonus,

January2,2018,

Friedman

personally

presently

valuedat$18,049,927.

owns

approximately

31.DefendantRobertGreifeld

was,

217,469

NASDAQshares,

atalltimesrelevanttothis

asof

Complaint,

personally

$96,389,892.

theChiefExecutiveOfficeratNASDAQ.Asof

January29,2017,

Greifeldstill

owns

approximately

1,161,324

NASDAQshares,presently

valuedat

Complaint,

32.DefendantMichaelSplinterhas

been,

atalltimesrelevanttothis

theChairmanoftheCorporateGovernanceCommitteeatNASDAQ.Underhis

leadership,

theCommitteeisresponsiblefor

governanceatNASDAQ.

establishing

acultureof

integrity

andcorporate

33.DefendantNelsonGriggs

theSeniorVicePresidentofNewListings

PresidentofNASDAQ's

Listing

Services.

and,

34.DefendantArnoldGolub

was,

atalltimesrelevanttothis

Complaint,

subsequentto

this,

theExecutiveVice

was,

atalltimesrelevanttothis

Complaint,

theVicePresidentand

Deputy

GeneralCounselatthe

NASDAQ

StockMarket.

1

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Complaint,

NASDAQ

35.DefendantWilliam

Slatterywas,

atalltimesrelevanttothis

theVicePresidentofthe

NASDAQListing

QualificationsDepartmentatthe

StockMarket.

Slattery

reportedtoDefendantKnight.

36.DefendantMichaelEmen

SeniorVicePresidentandHeadofNASDAQ's

NASDAQ

StockMarket.

was,

Listing

atalltimesrelevanttothis

Complaint,

QualificationsDepartmentatthe

37.DefendantAlanRowland

was,

atalltimesrelevanttothis

Complaint,

Directorof

NASDAQListing

QualificationsDepartment.RowlandreportedtoDefendants

Slattery,Golub,Knight,

andEmen.

38.Defendant

KeelyMoxleywas,

atalltimesrelevanttothis

asenior

listing

StockMarket.

StockMarket.

analystinthe

NASDAQListing

Moxley

reportedtoDefendants

QualificationsDepartmentatthe

Slattery,Rowland,

andEmen.

Complaint,

NASDAQ

Complaint,

39.DefendantRobert

SeniorVicePresidentof

Listing

McCooey

Jr.

was,

atalltimesrelevanttothis

ServicesatNASDAQ.

McCooey

Jr.reportedto

Defendants

Friedman,Greifeld,

andKnight.

Managing

Defendants

40.DefendantAndrewHall

was,

DirectorofNewListingsatthe

NASDAQ

atalltimesrelevanttothis

Complaint,

StockMarket.Hallreportedto

Emen,Knight,Friedman,

41.Atallrelevant

andGreifeld.

times,

theaforementioned

NASDAQ

officials

made,

or

causedtobe

made,

thefalsestatementsatissueintheseproceedings.Whereofficialscaused

falsestatementstobe

made,

asopposedto

making

thefalsestatements

themselves,

itis

allegedthattheseofficialsfailedto

willfully

ignorantoftheir

subordinates'

adequately

supervisetheirsubordinatesand/orremained

misconduct.

11

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RELEVANTNON-PARTY

Non-party 42.

Mr.

Wey

doesnotownNYGG

NYGGAsiaisa

company

thatoperatesinChina.Although

Asia,

NYGGAsiahasbenefittedfromthenamerecognition

associatedwithMr.Wey'sU.S.-basedoperations.

43.NYGandNYGGAsiahada

longstandingrelationshipwherebythey

wouldcollaborateto

identify

andfacilitatehigh

quality,

profitableinvestmentand

financing

opportunitiesintheinternationalcapitalmarketsforChineseinvestors.NASDAQ's

malfeasanceandthatofitsco-conspiratorsdestroyedthislucrativerelationship.

NASDAQ A.

ENTERPRISE.

FACTUALALLEGATIONS

AMULTIBILLIONDOLLARFOR-PROFITGLOBAL -

NASDAQ 44.

isamulti-billion-dollarfor-profitcompany.Itishometo

approximately

3,700companiesin35

countries,representing

morethan$10trillionintotal

marketvalue.In

2016,NASDAQ

deliveredtoitsshareholdersnetrevenuesof$2.3

billion,

madean

percent.9 percent.

operating

profitof$1.44billionandgeneratedashareholderreturnof17.5

NASDAQ 45.

makes

money

invariousways:Itchargesinitialand

recurring

annual

listing

feestoeach

investorsfeesforsharestradedonits

company

thatlistsitssharesonthe

exchange;

itcharges

tradingplatforms;

itchargeslistedcompaniesfor

add-

onservicessuchas

issuing

others;

anditsellsstock

dividends,

itsown

rising

press

trading

releases;

itlicensesits

tradingtechnology

marketdatatothirdparties.NASDAQ's

platformsto

profitability

and

stockpriceandthemillionsofdollarsinsalariesandbonusesit

.com/discover/annual-re 111tp://buSiness.NASDAQ.com/discover/annual-report/2016/. 9

12

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paystheindividualDefendantseachyeararedependentonthenumberofcompanies

attractedtolistandtradeonthe

NASDAQ

StockMarket.Defendantshavealsorealized

millionsofdollarsinprofitsfrom

selling

their

NASDAQ

stock.

Regarding 46.

itssaleofmarket

ofmarketparticipants(publicinvestorsandfinancial

data,NASDAQ

institutions)

capitalizesontheneed

toaccesssuchdatawhen

researching

and

making

decisionsabout

customersintegratethedata

feesassociatedwith

providing

directly

into

suchdata

requested.

trading

andinvesting.Insome

instances,

the

high-speed,

varydirectly

computerized

trading

algorithms.The

withthebreadthanddetailofthedata

47.As

recently

asmid-December

2017,

theUnitedStatesCourtof

AppealsfortheSecondCircuitdescribedthelucrativesale-of-databusinessesrun

by

nationalsecuritiesexchangessuchas

NASDAQ

thusly:

detailedandexpensive

trading

toincreasethe

andrelatedservicesofthosetrades.Theexchangescompetewithoneanother

theirrevenuefromthefees

"[national

exchanges]

operateasfor-profitenterprisesthatgeneratemostof

they

chargefortradesandthesaleofmarketdata

volumeontheirparticularexchanges

level,

a

proprietary

datafeed

may

Atthemost

providedataon

every

bidandorderforagivenstockonan

exchange."10

B.CRITICALTONASDAQ'SSUCCESSISITSPUBLICIMAGEAS

QUALITYCOMPANIES.

ATRUSTWORTHYEXCHANGETHATPURPORTEDLYLISTS

NASDAQconsistently 48.

toutsandstrivestomaintainitsstatusasone

oftheworld'spremier

exchanges,

anditreliesinlargepartuponitsbrandimagetosecure

listingsandsellitsproductsandservices.Partofthecrucialvaluepropositionitoffersto

10

Cityof

Providenceetal.v.BATSGlobal

Markets,Inc.,

878F.3d36(2dCir.2017). ,878

1

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companiesisglobal

visibility

onNASDAQ'sownwebsite:

asa

trustworthylisting

venueand

trading

platform.Asnoted

trust

investorsandourregulators.Italsodependsuponemployeesandvendorswho

"Our

business,by

they

its

nature,

dependsupontheconfidenceweinstillin

shareholderswho

rely

onthe

integrity

willbetreated

fairly;

ofour

reputationwillenhancetheir

operations;

andlistedcompaniesandmemberfirmswhoexpectthatour

own."

49.InitslatestAnnual

Report,NASDAQ

alsoemphasizedthatoneofits

competitivestrengthsisitsestablishedreputation.The

corollary

to

this,

of

course,

isthat

any

"damageto

[NASDAQ's]

reputationorbrandnamecouldhaveamaterialadverseeffecton

businesses".11

[its]

NASDAQ'sAnnualReportevencitestovariousissuesthat

may

giverise

toreputational

risks,including

issues

relating

to:

reputationcouldcausesomeissuersnottolisttheirsecuritiesonour

"any

negative

publicitysurrounding

ourlistedcompanies

Damagetoour

effectonour

orcauseustolose

exchanges,

aswellasreducethe

customers

business,

This,

trading

in

volumesorvaluesonourexchanges

turn,may

haveamaterialadverse

results."12

operating

financialconditionand

NASDAQ 50.

investssignificant

marketing

resourcesinto

maintaining

perceivedstatusasareputableandsophisticatedexchange.Itscommercialsuccess

heavily

its

dependsuponit.

C.2007-2010GLOBALFINANCIALCRISISADVERSELYIMPACTS

THEIREARNINGS.

U.S.-BASEDSTOCK

51.Inoraround

2007,

ofaglobalfinancialmeltdown.

MARKETS'

LISTINGS,

U.S.basedcompanieswere

DECIMATING

struggling

intheface

http://files.shareholder.com/downloads/NDAQ/1826306584x8241384xS1120193-17-3/1120193/filing.pdf 11

http://files.shareholder.com/downloads/NDAQ/1826306584x8241384xS1120193-17-3/1120193/filing.pdf 12

14

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Originating 52.

inthesubprimemortgage

market,

theeconomicturmoil

developedintoafull-scaleinternational

banking

crisis.Withthecollapseofinvestmentbank

Lehman

Brothers,many

economistsconsideredthecrisistobetheworstsincetheGreat

Depression,13

anditplayedasignificantroleinthefailureof

keybusinesses,

drasticdeclines

inconsumer

wealth,

andanoveralldiminutionineconomicactivity.

53.

During

thistimesecuritiesprices

fell,

andwidespreadinvestor

pessimismcausedtheU.S.stockmarketstospiraldownward.NewlistingsofAmerican

companiesonU.S.stockexchangesgroundtoahaltamiddepressedmarket

sentiment,

and

NASDAQ'sfinancialperformanceandsharepricedroppedprecipitously.

D.U.S.-BASEDSTOCKEXCHANGESFLOCKTOCHINAFORNEW

LISTINGSANDREVENUEGROWTHOPPORTUNITIES.

54.Facedwiththesedismaleconomic

conditions,

U.S.stockexchanges

desperately

lookedoverseasfornew

attractivetargets.TheChinese

economy

listings,

andcompaniesinChinasoonbecame

haddemonstratedcontinuedgrowthatarateof9%