1 COOLEY LLP MICHAEL G. RHODES (116127) · 2019-07-03 · COOLEY LLP ATTORNEYS AT LAW COMPLAINT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COOLEY LLP

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

Case 5:19-cv-03445 Document 1 Filed 06/17/19 Page 1 of 19


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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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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)



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)



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.



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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.



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)



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.



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



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


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.

DocuSign Envelope ID: 47E28C0A-CE5E-4E38-B875-90BC7904AE8CCase 5:19-cv-03445 Document 1-1 Filed 06/17/19 Page 2 of 7


(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



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

DocuSign Envelope ID: 47E28C0A-CE5E-4E38-B875-90BC7904AE8C

N/A N/AN/A



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



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]


[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


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


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.
