Declaration of Jack E. Pace III in Support of Apex Clearing Corporation's Rule 12 Motion to Dismiss Plaintiffs' (Fourth) Class Action Complaint — In re January 2021 Short Squeeze Trading Litigation (Dkt. 491-1, S.D. Fla.)
Summary
A Declaration of Jack E. Pace III in Support of Apex Clearing Corporation's Rule 12 Motion to Dismiss Plaintiffs' (Fourth) Class Action Complaint in In re: January 2021 Short Squeeze Trading Litigation, Case 1:21-md-02989-CMA (Case No. 21-2989-MDL-ALTONAGA/Torres, Document 491-1, 3 pages), in the Southern District of Florida, entered June 22, 2022, relating to the Other Broker Tranche. Jack E. Pace III, a Partner at White & Case LLP, counsel for Apex, attaches exhibits including a March 22, 2021 Apex letter to the New Jersey Office of the Attorney General's Bureau of Securities, Apex's Form CRS dated April 14, 2021, and Google Finance charts of AMC and KOSS. Exhibit 9 is the CFTC decision French v. Bache Halsey Stuart, Inc. (June 23, 1977), and Exhibit 10 is a January 28, 2021 email chain between Apex employees and Apex customer Tom Harrison of Direct Alpha.
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- Date
- 2021-02-09
Cite this document
“Declaration of Jack E. Pace III in Support of Apex Clearing Corporation's Rule 12 Motion to Dismiss Plaintiffs'… (Dkt. 491-1).”
Original at archive.org, dated 2021-02-09. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-02-09-attached-hereto-as-exhibit-9-is-a-true-and-correct-copy-of-french-v-bache-halse/
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Case 1:21-md-02989-CMA Document 491-1 Entered on FLSD Docket 06/22/2022 Page 1 of 3
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO. 21-2989-MDL-ALTONAGA/Torres
IN RE:
JANUARY 2021 SHORT SQUEEZE
TRADING LITIGATION
_____________________________________/
This Document Relates to All Claims Included
In the Other Broker Tranche
DECLARATION OF JACK E. PACE III IN SUPPORT OF
APEX CLEARING CORPORATION’S RULE 12 MOTION TO DISMISS
PLAINTIFFS’ (FOURTH) CLASS ACTION COMPLAINT
I, Jack E. Pace III, hereby declare as follows:
1. I am an attorney duly authorized to practice law in the State of New York and am
authorized to appear in the above-captioned litigation pursuant to this Court’s Pretrial Order #1
(ECF No. 46) having filed a Certificate of Understanding on April 12, 2021 (ECF No. 81). I am
a Partner in the law firm of White & Case LLP, counsel for Defendant Apex Clearing Corporation
(“Apex”). I submit this Declaration in support of Apex’s Motion to Dismiss Complaint Pursuant
to Federal Rule of Civil Procedure 12(b)(6). I am familiar with the facts set forth herein based on
my personal knowledge of the referenced material.
2. Attached hereto as Exhibit 1 is a true and correct copy of a letter from Apex
Clearing Corporation to the New Jersey Office of the Attorney General’s Bureau of Securities,
dated February 9, 2021, which Plaintiffs quote and rely on at Paragraphs 79–80 of the Plaintiffs
Chavez and Jang’s Amended Class Action Complaint (ECF No. 483) (“Fourth Complaint”).
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Case 1:21-md-02989-CMA Document 491-1 Entered on FLSD Docket 06/22/2022 Page 2 of 3
3. Attached hereto as Exhibit 2 is a true and correct copy of the standard Customer
Account Agreement that Apex enters into with the customers of Introducing Brokers who use
Apex’s clearing services, as detailed at Paragraphs 96–97 of the Fourth Complaint.
4. Attached hereto as Exhibit 3 is a true and correct copy of a stock price chart taken
from Google Finance on August 30, 2021, tracking the stock price of GameStop from February
15, 2002 to the present.
5. Attached hereto as Exhibit 4 is a true and correct copy of a stock price chart taken
from Google Finance on August 30, 2021, tracking the stock price of AMC from August 30, 2020
to the present.
6. Attached hereto as Exhibit 5 is a true and correct copy of a stock price chart taken
from Google Finance on August 30, 2021, tracking the stock price of KOSS stock from March 27,
1986 to the present.
7. Attached hereto as Exhibit 6 is a true and correct copy of a letter from Apex
Clearing Corporation to the New Jersey Office of the Attorney General’s Bureau of Securities,
dated March 22, 2021, on which Plaintiffs rely at Paragraph 79 of the Fourth Complaint.
8. Attached hereto as Exhibit 7 is a true and correct copy of Apex’s Form CRS –
Customer Relationship Summary, dated April 14, 2021, which was retrieved from the FINRA
website at the following web address: https://files.brokercheck.finra.org/crs_13071.pdf.
9. Attached hereto as Exhibit 8 is a true and correct copy of the an article dated March
4, 2021, from financialplanning.com describing an interview with Tricia Rothschild, which
Plaintiffs quote and rely on at Paragraph 87 of the Fourth Complaint. Highlighting has been added
to indicate the relevant language referred to in the Fourth Complaint.
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Case 1:21-md-02989-CMA Document 491-1 Entered on FLSD Docket 06/22/2022 Page 3 of 3
10. Attached hereto as Exhibit 9 is a true and correct copy of French v. Bache Halsey
Stuart, Inc., CFTC No. R 76–17, ¶ 20,444 (June 23, 1977).
11. Attached hereto as Exhibit 10 is a true and correct copy of a January 28, 2021 email
chain between Apex employees and Apex customer Tom Harrison of Direct Alpha produced at
APEX-MDL00002375 through APEX-MDL00002377, which Plaintiffs selectively quote and rely
on at Paragraph 76 of the Fourth Complaint.
I hereby declare under penalty of perjury under the laws of the United States of America
that the foregoing is true and correct and that this declaration was executed in New York, New
York on June 22, 2022.
/s/ Jack E. Pace III
Jack E. Pace III
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