Federal Court, Citing Adar Bays, Reverses Its Own Judgment Previously Granted To A Note Lender

On November 7, 2022, the U.S. District Court for the Southern District of New York, citing the New York Court of Appeals' decision in Adar Bays, granted our client's Rule 60 motion to vacate a final judgment it had previously granted in favor of LG Capital Funding, LLC, a convertible note lender, and against our client, ExeLED Holdings, Inc., an issuer. The now-vacated judgment in LG Capital Funding, LLC, v. ExeLED Holdings, Inc., f/k/a Energie Holdings, Inc., Case No. 1:17-cv-04006 ("ExeLED"), was in the amount of $512,412.19, plus $151,461.02 in damages for ExeLED's purported anticipatory breach of the note, and $80,412.50 to cover LG Capital's attorneys' fees—totaling more than $744,000.00. Since the convertible note had a face value of only $58,937.26, the damages previously awarded by the Court were nearly 10 times the value of the note.