Judgment — United States ex rel. GNGH2 Inc. v. XLD Century LLC, Case No. 2:22-CV-05514-SB-PVC (Document 119)

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A Final Judgment in United States ex rel. GNGH2 Inc. v. XLD Century LLC et al., Case No. 2:22-CV-05514-SB-PVC, in the U.S. District Court for the Central District of California, dated August 8, 2024 and signed by District Judge Stanley Blumenfeld, Jr. The judgment recounts the relator's allegation that XLD Century LLC and XLD Group LLC were ineligible to receive $4 million in PPP loans because of ownership by Sichuan Xinglida, and the bench trial on scienter of July 11, 2024. It adjudges that the relator failed to carry its burden and is not entitled to recover. Judgment is entered for the defendants and the claim is dismissed on the merits with prejudice.

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Case 2:22-cv-05514-SB-PVC Document 119 Filed 08/08/24 Page 1 of 2 Page ID #:991




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                             UNITED STATES DISTRICT COURT
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9                    FOR THE CENTRAL DISTRICT OF CALIFORNIA

10    United States ex rel. GNGH2 Inc., ) Case No.: 2:22-CV-05514-SB-PVC
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                    Plaintiff,          )
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13          vs.                         ) FINAL JUDGMENT
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      XLD CENTURY LLC et al.,           )
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16                Defendants.           )
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19          Plaintiff United States ex rel. GNGH2 Inc. (Relator) filed this False Claims
20    Act (FCA) lawsuit, alleging that Defendants XLD Century LLC and XLD Group
21    LLC were ineligible to receive $4 million in Paycheck Protection Program loans
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23    The Court granted in part Relator’s motion for summary judgment, finding that
24    Relator had proved falsity, materiality, and causation, but found a triable issue of
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      material fact as to scienter.
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            On July 11, 2024, the Court held a bench trial to determine whether Relator
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      could establish the element of scienter. Relator appeared by its attorney David
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      Abrams, and Defendants appeared by their attorney Dana Moon. After evaluating


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     Case 2:22-cv-05514-SB-PVC Document 119 Filed 08/08/24 Page 2 of 2 Page ID #:992




1     the evidence at trial and considering the parties’ written submissions, the Court
2     issues the final judgment as follows:
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4     THE COURT HEREBY ADJUDGES, ORDERS AND DECREES AS
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6        1. Relator has failed to carry its burden and is not entitled to recover on its
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            FCA claim;
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         2. Judgment is awarded in favor of Defendants and against Relator; and
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         3. Relator’s claim against Defendants is hereby dismissed on the merits with
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            prejudice.
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         IT IS SO ORDERED.
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      Date: August 8, 2024                           ___________________________
15                                                         Stanley Blumenfeld, Jr.
16                                                       United States District Judge
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