Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_16-cv-00321/USCOURTS-caed-2_16-cv-00321-2/pdf.json

Parties Involved:
Marrone Bio Innovations, Inc.
Defendant
Securities and Exchange Commission
Plaintiff

Document Text:

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

No. 2:16-cv-00321-MCE-EFB

v.

MARRONE BIO INNOVATIONS, INC.,

Defendant.

FINAL JUDGMENT AS TO DEFENDANT MARRONE BIO INNOVATIONS, INC.

The Securities and Exchange Commission having filed a Complaint and Defendant 

Marrone Bio Innovations, Inc. having entered a general appearance; consented to the Court’s 

jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final 

Judgment without admitting or denying the allegations of the Complaint (except as to 

jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal 

from this Final Judgment:

I.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 

(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 1 of 7
2

means or instruments of transportation or communication in interstate commerce or by use of the 

mails, directly or indirectly:

(a) to employ any device, scheme, or artifice to defraud;

(b) to obtain money or property by means of any untrue statement of a material fact 

or any omission of a material fact necessary in order to make the statements 

made, in light of the circumstances under which they were made, not misleading; 

or

(c) to engage in any transaction, practice, or course of business which operates or 

would operate as a fraud or deceit upon the purchaser.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a).

II.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the 

Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5

promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of 

interstate commerce, or of the mails, or of any facility of any national securities exchange, in 

connection with the purchase or sale of any security:

(a) to employ any device, scheme, or artifice to defraud;

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 2 of 7
3

(b) to make any untrue statement of a material fact or to omit to state a material fact 

necessary in order to make the statements made, in the light of the circumstances 

under which they were made, not misleading; or

(c) to engage in any act, practice, or course of business which operates or would 

operate as a fraud or deceit upon any person.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a).

III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from, directly or indirectly, controlling any person who 

violates Section 13(a) of the Exchange Act [15 U.S.C. § 78m(a)] , and Rules 12b-20, 13a-1, 13a11, and 13a-13 promulgated thereunder [17 C.F.R. §§ 240.12b-20, 240.13a-1, 240.13a-11 and 

240.13a-13] by:

(a) failing to file with the Commission any report required to be filed with the 

Commission pursuant to Section 13(a) of the Exchange Act [15 U.S.C. § 78m(a)], 

and the rules and regulations promulgated thereunder; or

(b) filing with the Commission a report required to be filed with the Commission 

pursuant to Section 13(a) of the Exchange Act [15 U.S.C. § 78m(a)], and the rules 

and regulations promulgated thereunder that (1) contains an untrue statement of 

material fact; (2) fails to include, in addition to the information required to be 

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 3 of 7
4

stated in such report, such further material information as may be necessary to 

make the required statements, in light of the circumstances under which they are 

made, not misleading; or (3) fails to disclose any information required to be 

disclosed therein,

unless Defendant acts in good faith and does not directly or indirectly induce the act or acts 

constituting the violation.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a).

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from, directly or indirectly, controlling any person who 

violates Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act [15 U.S.C. §§ 78m(b)(2)(A) 

and 78 m(b)(2)(B)] by failing to:

(a) make and keep books, records and accounts, which, in reasonable detail, 

accurately and fairly reflect the transactions and dispositions of the assets of an 

issuer; or

(b) devise and maintain a system of internal accounting controls sufficient to provide 

reasonable assurances that: (1) transactions are executed in accordance with 

management’s general or specific authorization; (2) transactions are recorded as 

necessary to permit preparation of financial statements in conformity with 

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 4 of 7
5

generally accepted accounting principles, or any other criteria applicable to such 

statements, and to maintain accountability for assets; (3) access to assets is

permitted only in accordance with management’s general or specific 

authorization; and (4) the recorded accountability for assets is compared with the 

existing assets at reasonable intervals and appropriate action is taken with respect 

to any differences.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a).

V.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from violating Section 14(a) of the Exchange Act [15 

U.S.C. § 78n(a)] and Rules 14a-3 and 14a-9 promulgated thereunder [17 C.F.R. §§ 240.14a-3 

and 14a-9] by soliciting proxies without furnishing each person solicited a proxy statement 

containing the information specified by the proxy rules or a proxy statement included in a 

registration statement filed under the Securities Act on Form S-4, Form N-4, or Form N-14 

containing the information specified on such Form, and using proxy statements containing 

statements which, at the time and in light of the circumstances under which they are made, are 

false or misleading with respect to any material fact, or omit to state material facts necessary to 

make the statement therein not misleading or necessary to correct any statement in any earlier 

communication with respect to the solicitation of a proxy for the same meeting or subject matter 

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 5 of 7
6

which has become false or misleading. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s 

officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a).

VI.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant shall pay a 

civil penalty in the amount of $1,750,000.00 to the Securities and Exchange Commission 

pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 78u(d)(3). Defendant shall make 

this payment within ten (10) business days after entry of this Final Judgment.

Defendant may transmit payment electronically to the Commission, which will provide 

detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly 

from a bank account via Pay.gov through the SEC website at 

http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank 

cashier’s check, or United States postal money order payable to the Securities and Exchange 

Commission, which shall be delivered or mailed to:

Enterprise Services Center

Accounts Receivable Branch

6500 South MacArthur Boulevard

Oklahoma City, OK 73169

and shall be accompanied by a letter identifying the case title, civil action number, and name of 

this Court; Marrone Bio Innovations, Inc. as a defendant in this action; and specifying that 

payment is made pursuant to this Final Judgment. 

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 6 of 7
7

Defendant shall simultaneously transmit photocopies of evidence of payment and case 

identifying information to the Commission’s counsel in this action. By making this payment, 

Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part 

of the funds shall be returned to Defendant. The Commission shall send the funds paid pursuant 

to this Final Judgment to the United States Treasury. Defendant shall pay post-judgment interest 

on any delinquent amounts pursuant to 28 USC § 1961. 

VII.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 

jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. The 

Clerk of the Court is nonetheless directed to close this case.

IT IS SO ORDERED. 

Dated: March 7, 2016

Case 2:16-cv-00321-MCE-KJN Document 8 Filed 03/08/16 Page 7 of 7