Sbb Research Group Llc

Allegations: ON SEPTEMBER 30, 2019, THE SEC FILED A CIVIL LAWSUIT AGAINST SBB RESEARCH GROUP, SAMUEL BARNETT AND MATTHEW AVEN (COLLECTIVELY, "SBB") ALLEGING THAT THEIR PROPRIETARY VALUATION MODEL UTILIZED PRIOR TO 2016 ARTIFICIALLY INFLATED THE VALUE OF STRUCTURED NOTES HELD BY SBB'S FUNDS. AS A RESULT, THE SEC ALLEGED THAT SBB MISSTATED THE FUNDS' HISTORICAL PERFORMANCE AND OVERCHARGED INVESTORS APPROXIMATELY $1.4 MILLION IN FEES. THE SEC FURTHER ALLEGED THAT SBB TOOK STEPS TO CONCEAL THEIR ALLEGED CONDUCT FROM INVESTORS AND SBB'S AUDITOR. THE SEC'S COMPLAINT, FILED IN THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, ALLEGED THAT SBB VIOLATED THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS AND SEEKS PERMANENT INJUNCTIONS AND CIVIL PENALTIES. FOR MORE INFORMATION REGARDING THE FOREGOING, SEE CASE: 1:19-CV-06473 AVAILABLE AT HTTPS://WWW.SEC.GOV/LITIGATION/COMPLAINTS/2019/COMP-PR2019-201.PDF. SBB STRONGLY DENIES THE SEC'S ALLEGATIONS AND, SBB, BARNETT AND AVEN ARE VIGOROUSLY DEFENDING THEMSELVES AGAINST THE SEC'S COMPLAINT IN COURT. Status: Pending Summary: A COMPLAINT WAS FILED BY THE SEC IN THE CIVIL ACTION ON SEPTEMBER 30, 2019. IN RESPONSE, SBB FILED A MOTION TO DISMISS THE SEC'S COMPLAINT. THE COURT GRANTED IN PART AND DENIED IN PART SBB'S MOTION TO DISMISS. SBB HAS SINCE ANSWERED THE COMPLAINT. DISCOVERY HAS BEEN COMPLETED IN THE CIVIL ACTION AND THE CASE IS CURRENTLY IN THE MOTION PRACTICE PHASE.