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ADDENDUM filed by Ernesto Covarrubias, Eric Greathouse, Barbara Myles, Tiffany… — Greathouse Capitalplus (Dkt. 33)
Summary
An Addendum to Amended Complaint in Case No. 4:21-cv-01243-BRW, in the U.S. District Court for the Eastern District of Arkansas, Document 33, dated March 31, 2022. Plaintiffs Eric Greathouse, Ernesto Covarrubias, Tiffany Sumrall and Barbara Myles file it pursuant to the Court's Text Order (ECF No. 32) requiring an Addendum setting forth the changes in the Amended Complaint (ECF No. 31). It states that the Amended Complaint adds three (3) named Plaintiffs, alter ego allegations about Capital Plus Financial, LLC and Crossroads Systems, Inc., and allegations supporting personal jurisdiction. It also states that the Amended Complaint adds North Carolina and California subclasses and a request for an accounting.
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“ADDENDUM filed by Ernesto Covarrubias, Eric Greathouse, Barbara Myles, Tiffany… — Greathouse Capitalplus (Dkt. 33).”
Original at ecf.ared.uscourts.gov, No. 4:21-cv-01243-BRW, Doc. 33. Archived at Pandemic Darlings, https://pandemicdarlings.com/court-filings/greathouse-capitalplus-ared-131205/undated-gov-uscourts-ared-131205-33-0-gov-uscourts-ared-131205-33-0/
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Case 4:21-cv-01243-BRW Document 33 Filed 03/31/22 Page 1 of 4
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF ARKANSAS
CENTRAL DIVISION
ERIC GREATHOUSE, ERNESTO
COVARRUBIAS, TIFFANY SUMRALL
and BARBARA MYLES, individually and
on behalf of all others similarly situated, Case No. 4:21-cv-01243-BRW
Plaintiffs,
ADDENDUM TO AMENDED
v. COMPLAINT
CAPITAL PLUS FINANCIAL, LLC and
CROSSROADS SYSTEMS, INC.,
Defendants.
Pursuant to the Court’s Text Order (ECF No. 32) requiring an Addendum setting forth the
changes in the Amended Complaint, Plaintiffs Eric Greathouse, Ernesto Covarrubias, Tiffany
Sumrall, and Barbara Myles (collectively, “Plaintiffs”), individually and on behalf of all others
similarly situated, state as follows:
1. On March 28, 2022, Plaintiffs filed an Amended Complaint (ECF No. 31) in
accordance with the Court’s Text Order on March 2, 2022 (ECF No. 29).
2. Attached hereto as Exhibit A is a redline reflecting all changes between Plaintiff’s
Original Complaint and the Amended Complaint. This redline also was filed, and is attached to,
the Amended Complaint as Exhibit B (ECF No. 31 at ECF pp. 71-129).
3. Set forth below is a description of the primary changes in the Amended Complaint.
a. The Amended Complaint adds three (3) named Plaintiffs, Ernesto Covarrubias,
Tiffany Sumrall, and Barbara Myles (⁋⁋ 17-19) and specific allegations to
support their claims (ECF No. 31 ⁋⁋ 103, 120-158). “Plaintiff” was changed to
Case 4:21-cv-01243-BRW Document 33 Filed 03/31/22 Page 2 of 4
“Plaintiffs” and the singular was changed to the plural throughout the Amended
Complaint to reflect the additional parties added.
b. The Amended Complaint adds allegations to support Plaintiffs’ alter ego and
related claims that Defendant Capital Plus Financial, LLC (“CPF”) was at all
relevant times dominated and controlled by its corporate parent Crossroads
Systems, Inc. (“Crossroads”) concerning the PPP lending at issue (id. ⁋⁋ 6-11,
14-15, 38, 79, 90).
c. The Amended Complaint adds allegations to support the assertion of personal
jurisdiction over both Defendants (id. ⁋⁋ 23-38).
d. The Amended Complaint adds allegations regarding other firms with whom
Defendants worked regarding aspects of PPP lending, Blue Acorn PPP, LLC
and Oto Analytics, Inc. d/b/a Womply, one of which (Womply) has sued
Defendants and one of Defendants’ dual senior executives for allegedly
defrauding it out of its share of PPP loan and other fees (id. ⁋⁋ 29, 71-73).
e. The Amended Complaint adds allegations regarding what Defendant
Crossroads in its own financial statements called the “windfall” Defendant
CPF, which was the SBA-approved lender, received in PPP loan processing
fees and “upstreamed” to Defendant Crossroads as if Defendants were one and
the same company (id. ⁋⁋ 77, 80-82, 91).
f. The Amended Complaint adds allegations regarding Defendants’ knowledge,
via their own internal and external emails, of CPF’s failure to fund SBA-
approved PPP loans (id. ⁋⁋ 102-03).
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Case 4:21-cv-01243-BRW Document 33 Filed 03/31/22 Page 3 of 4
g. The Amended Complaint adds North Carolina and California subclasses (id.
⁋ 161).
h. The Amended Complaint adds claims for North Carolina and California
subclasses under, respectively, the North Carolina Unfair and Deceptive Trade
Practices Act, N.C. Gen. Stat. Ann. §§ 75-1.1, et seq. (id. ⁋⁋ 218-30), and the
California Unfair Competition Law, Cal. Bus. & Prof. Code § 17200, et seq.
(id. ⁋⁋ 204-17).
i. The Amended Complaint adds a request for an accounting (Prayer for Relief,
§§ D and E).
Dated: March 31, 2022 Respectfully submitted,
FRIDAY, ELDREGE & CLARK, LLP
Marshall S. Ney, AR 91108
Katherine C. Campbell, AR 2013241
3350 S. Pinnacle Hills Parkway, Suite 301
Rogers, AR 72758
479-695-6049 Office
501-244-5389 Facsimile
mney@fridayfirm.com
kcampbell@fridayfirm.com
AND
BAILEY & GLASSER LLP
Lawrence J. Lederer (pro hac vice)
Michael L. Murphy (pro hac vice)
Bart D. Cohen (pro hac vice)
1055 Thomas Jefferson Street NW, Suite 540
Washington, DC 20007
T.: 202.463-2101
F.: 202.463-2103
llederer@baileyglasser.com
mmurphy@baileyglasser.com
bcohen@baileyglasser.com
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Case 4:21-cv-01243-BRW Document 33 Filed 03/31/22 Page 4 of 4
NOLAN HELLER KAUFFMAN LLP
Justin A. Heller (pro hac vice)
Matthew M. Zapala (pro hac vice)
80 State Street, 11th Floor
Albany, NY 12207
T.: 518.449.3300
jheller@nhkllp.com
mzapala@nhkllp.com
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