Order Re: Preliminary Injunction Against Defendants Regal Assets, LLC and Tyler Gallagher

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Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 1 of 9 Page ID #:10751

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA


AMERICAN BULLION, INC.,

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Plaintiff,
v.

REGAL ASSETS, LLC; Tyler


17 Gallagher, an individual; Kelly Felix, an
individual; and Does 1-10, inclusive,
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Defendants.
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CASE NO. CV14-01873 DDP(ASx)


The Honorable Dean D. Pregerson
ORDER RE: PRELIMINARY
INJUNCTION AGAINST
DEFENDANTS REGAL ASSETS,
LLC AND TYLER GALLAGHER
Date:
Time:
Ctrm:

August 18, 2014


10:00 AM
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Mitchell
Silberberg &
Knupp LLP
6277706.3

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[PROPOSED] ORDER GRANTING PRELIMINARY INJUNCTION
AGAINST REGAL AND GALLAGHER

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 2 of 9 Page ID #:10752

On December 15, 2014, Defendants Regal Assets, LLC and Tyler Gallagher

2 (collectively, Defendants) motions for reconsideration and modification of this


3 courts November 17, 2014 Order re: Preliminary Injunction were argued before
4 this Court. After full consideration of the parties briefs, the arguments of counsel,
5 and all other matters and evidence presented to the Court, the Court finds that
6 appropriate grounds exist for issuing a modified Preliminary Injunction, as
7 discussed in this Courts separate Order.
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THUS, IT IS HEREBY ORDERED THAT:

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11 I.

DEFINITIONS

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For purposes of this Order, the following terms are defined as such:

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A.

Regals Affiliate Program: the program operated, controlled and

15 directed by Defendants Regal Assets, LLC and Tyler Gallagher, through which
16 Defendants solicit and incentivize Regal Site operators to recommend Defendants
17 and refer customers and potential customers to Defendants.
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B.

Regal Affiliate Agreement: the agreement that Defendant Regal

19 Assets, LLC requires persons or entities to sign in order to participate in Regals


20 Affiliate Program.
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C.

Regal Site(s): any and all websites, blogs, reviews, online videos,

22 postings, and other online content that have been created by any individual or
23 entity that has registered or otherwise become a part of Regals Affiliate Program
24 and which contain any content identified in Schedule A.
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Mitchell
Silberberg &
Knupp LLP
6277706.3

26 II.

DELETION/REFORMATION OF REGAL SITES

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Defendants are hereby ordered to do the following:

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[PROPOSED] ORDER GRANTING PRELIMINARY INJUNCTION
AGAINST REGAL AND GALLAGHER

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 3 of 9 Page ID #:10753

A.

Web Content/Regal Sites Under Defendants Direct Control:


1.

Within 14 days of the entry of this Order and service on the

parties/counsel through the CM/ECF system, Defendants shall

delete or cause to be deleted any websites, blogs, reviews,

online videos, postings, and other online content under

Defendants respective or joint control, unless and until the

content identified in Schedule A is removed from such

websites. (A website or other webpage or other internet content

shall be deemed to be within Defendants direct control if

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Defendants, or either of them, have administrative rights or

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otherwise possess the power to modify the content of such

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sites/pages/content.)

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2.

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Defendants and all persons acting under their respective or joint

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direction or control (including but not limited to officers,

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agents, representatives, attorneys, employees, or other persons

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who are in active concert or participation with any such

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persons), shall immediately cease and desist from (1) creating,

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(2) causing to be created, or (3) providing content to or

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otherwise aiding or abetting the creation of any new websites,

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webpages, blogs, reviews, postings, or other online content that

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include any of the content set forth in Schedule A.

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Mitchell
Silberberg &
Knupp LLP
6277706.3

B.

Web Content/Regal Sites Not Under Defendants Direct Control:


1.

Defendants shall immediately cease making any payment to

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any Regal Site operator unless and until all of the content

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identified in Schedule A is removed.

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[PROPOSED] ORDER GRANTING PRELIMINARY INJUNCTION
AGAINST REGAL AND GALLAGHER

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 4 of 9 Page ID #:10754

2.

Defendants shall not make any further payment now or in the

future on account of any referrals or leads provided, or any

other activities undertaken, during the period that the Regal Site

contained any content identified in Schedule A. Defendants

may begin paying referral fees and otherwise compensating

Regal Site operators for referring customers once, but only

once, the content identified on Schedule A is eliminated for

such Regal Site. The customer or lead must have visited the

Regal Site and been referred after all of the Schedule A content
was removed in order for payment to be allowed.

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3.

Defendants shall send a written communication by email or

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U.S. Mail (return receipt requested) to each Regal Site operator

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stating the following:

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Mitchell
Silberberg &
Knupp LLP
6277706.3

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Regal Assets, LLC and its CEO/owner, Tyler Gallagher, were


ordered by the United States District Court for the Central
District of California to advise you of the following:
Regal Assets, LLC and Tyler Gallagher were sued by American
Bullion, Inc. for creating websites or facilitating the creation of
websites and other online content that
(a) used stock photos, pictures of dead people available online,
made-up quotes, and made-up people to make these websites
look more natural/authentic and trustworthy, as well as suggest
the existence of satisfied customers and qualified, experienced,
independent reviewers who did not in fact exist,
(b) included biased reviews and other information that
disparaged our competitors and lauded and recommended Regal
Assets, LLC without disclosing that Regal Assets, LLC would
profit from publishing these biased reviews, and
(c) included knowingly defamatory and false information and
material regarding American Bullion, Inc., among other persons
all for the purpose of directing customers away from our
competitors and to Regal Assets, LLC.
While no final determination has been made, the Court has
determined that American Bullion, Inc. is likely to prevail on its
claims against Regal Assets, LLC and Tyler Gallagher and that
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[PROPOSED] ORDER GRANTING PRELIMINARY INJUNCTION
AGAINST REGAL AND GALLAGHER

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 5 of 9 Page ID #:10755

the dissemination of this information is causing irreparable


harm to American Bullion, Inc. As such, pending a trial and
final judgment, Regal Assets, LLC and Tyler Gallagher have
been ordered to remove all such content under their control
from the internet, to cease facilitating its dissemination through
the Regal Affiliate Program, and to cease paying Regal
advertising affiliates for the leads/customers/sales they generate
on account of such material.

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Regal Assets, LLC has been ordered to cease paying referral


fees or any other compensation to any affiliate sites that
continue to post such materials in violation of the restrictions
set forth in Schedule A (attached hereto).

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Regal Assets, LLC and Tyler Gallagher request that you


comply and eliminate all of the content set forth in Schedule A
from your Regal affiliate site either by deleting the material or
conforming your website, webpage, blog, online video, posting,
and other online video content within 48 hours of receipt of this
communication. Please respond to this communication and
advise whether you will comply with this request. Our request
is time sensitive so please respond as soon as possible and in
any event within 48 hours of receipt.

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Signed: Regal Assets, LLC and Tyler Gallagher

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4.

This communication shall include a copy of this Order.

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Mitchell
Silberberg &
Knupp LLP
6277706.3

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[PROPOSED] ORDER GRANTING PRELIMINARY INJUNCTION
AGAINST REGAL AND GALLAGHER

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 6 of 9 Page ID #:10756

5.

If and to the extent any Regal Site operator, owner or

administrator fails to delete the material set forth in Schedule A

within 14 days of the entry of this Order and service on the

parties/counsel through the CM/ECF system, Defendants shall

suspend such person or entitys participation in Regals

Affiliate Program pending the final adjudication of Plaintiffs

claims or further order of this Court. This provision shall apply

whether the Regal Site operator refuses to remove the material

in response to Defendants written request, is non-responsive,

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or cannot be reached.

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12 III.
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UNDERTAKING BY PLAINTIFF
Plaintiff shall post an undertaking of $100,000.00.

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IT IS SO ORDERED.

17 DATED: DECEMBER 30, 2014


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Honorable Dean D. Pregerson
United States District Judge

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Mitchell
Silberberg &
Knupp LLP
6277706.3

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[PROPOSED] ORDER GRANTING PRELIMINARY INJUNCTION
AGAINST REGAL AND GALLAGHER

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 7 of 9 Page ID #:10757

SCHEDULE A

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 8 of 9 Page ID #:10758

SCHEDULE A

1. Statements that expressly or by implication indicate that American Bullion,

Inc. is the same company as or is in any way related or affiliated with

American Bullion Exchange.

2. Statements that expressly or by implication indicate that the owner of

American Bullion Exchange, Ryan Nassbridges, is the owner of or in any

way related to American Bullion, Inc.

3. References, comments, opinions, or reviews about American Bullion, Inc.,

its services, employees, directors, principals, or officers unless such online

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content includes the clear and conspicuous disclosure of the material

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relationship between the content provider and Regal Assets, LLC set forth in

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Paragraph 8.

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4. References, comments, opinions, or reviews about Regal Assets, LLC, its

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services, employees, directors, principals, or officers unless such online

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content includes the clear and conspicuous disclosure of the material

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relationship between the content provider and Regal Assets, LLC set forth in

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Paragraph 8.

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5. False links that claim or appear to direct the user to the website of American

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Bullion, Inc., but actually direct the user to another website, including but

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not limited to Regal Asset, LLCs website or any website designed to re-

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direct viewers to Regal Asset, LLCs website.

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6. Photographs falsely implying that that the individual depicted is a real

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person who is affiliated with or a customer of the site, actually provides

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services to the site, and/or possesses the experience or qualifications

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attributed to him or her.

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7. Statements/reviews or qualifications or experiences of any individual or

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purported individual where the statement/review was not actually made by

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the individual indicated and/or such individual does not have the

Case 2:14-cv-01873-DDP-AS Document 179 Filed 12/30/14 Page 9 of 9 Page ID #:10759

qualifications indicated and/or said individual did not undergo the

experience identified.

8. For purposes of the clear and conspicuous disclosure required by Paragraphs

3 and 4, the required disclosure must state the following and have the

following characteristics:

a. The owners of this website may be paid to recommend Regal Assets.

The content on this website, including the positive review of Regal

Assets, the negative reviews of its competitors, and other information,

may not be independent or neutral.

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b. This disclosure must be set at or near the top of each page of online

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content, such that it is immediately visible when the site is first

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visited. This disclosure must be at least as large as the surrounding

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text.

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c. This disclosure must be contrasted with the existing background and

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appear in bold and underlined text so as to contrast it with the

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surrounding text so as to make it conspicuous.

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d. This disclosure must be capable of being viewed regardless of

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whether a viewer is viewing the online content on their computer,

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tablet, smartphone, or other device.

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