IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

ABC CORPORATION I and 

ABC CORPORATION II, 

Plaintiffs, 

v. 

THE PARTNERSHIPS AND 

UNINCORPORATED ASSOCIATIONS 

IDENTIFIED ON SCHEDULE A, 

Defendants. 

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Case No. 20-cv-4806 

Judge Thomas M. Durkin 

Magistrate Judge Jeffrey Cole 

PLAINTIFFS’ STATEMENT REGARDING 

DEFENDANTS’ STATEMENTS OF SALES 

 Plaintiffs submit this brief statement to provide context to Defendants’ sales and 

accounting statements and briefing. (See Dkt. 466–67 & 473–74.) 

Timeframe of Contemptuous Conduct 

There is no merit to Defendants’ contention that they can only be in contempt for 

violations of the preliminary injunction that occurred after they were named in the case. Instead, 

the law requires that entities with notice be held in contempt for violating a preliminary 

injunction, even if never named as a party. All Defendants had actual notice of the preliminary 

injunction no later than February 16, 2021 (and likely months earlier, when Gyroor-US became 

aware). February 16 was when counsel who had already appeared in this litigation on behalf of 

Gyroor-US emailed Plaintiffs to ask for Plaintiffs’ position regarding, inter alia, the seven other 

Gyroor entities who are now defendants. (Dkt. 317-4, pp. 11–12.). 

Case: 1:20-cv-04806 Document #: 476 Filed: 11/04/21 Page 1 of 3 PageID #:13246
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Defendants’ position on non-parties would effectively strike Federal Rule of Civil 

Procedure 65(d)(2)(C), which expressly applies injunctions to those with notice who act in 

concert or participation with defendants. Notably, “parties” are addressed in a separate provision 

of Rule 65(d)(2). Case law also makes clear that non-parties can be held in contempt. (Dkt. 383, 

pp. 4–5.). Defendants cite Blockowicz v. Williams, 630 F.3d 563 (7th Cir. 2010). But this does

not support Defendants’ position. There, the court implicitly recognized that non-parties can be

held in contempt by observing: “Xcentric concedes that it received actual notice of the

injunction. . . . Thus, the only issue on appeal is whether the district court erred in concluding

that third parties Xcentric and Magedson did not aid or abet the defendants in violating the

injunction.” Id. at 567. The only reason the non-parties were not held in contempt is because

their acts all occurred before the injunction was even issued. Id. at 568. 

Some consequences of Defendants’ position are on display here. Plaintiffs proposed to 

add the remaining Gyroor Defendants to the case on May 6. (Dkt. 227.) Gyroor-US orally

opposed that motion and filed a response brief, which did not actually oppose the motion but

which did contribute to delaying the amendment. (Dkt. 240.) Adopting Defendants’ position 

regarding when a remedy exists for violations of an injunction would allow Defendants, like 

those here, to use unnecessary briefing to shield certain conduct from the Court’s authority.

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Continuing Conduct

In the past three weeks, Plaintiffs have twice emailed Defense Counsel regarding

continued violations of the injunction. (See Ex. 1.)1 It does not seem that sales resulting from

these violations were included in the sales reports Defendants filed.

Date: November 4, 2021 Respectfully Submitted,

 

LOEB & LOEB LLP

By: /s/ Neil G. Nandi

Adam Kelly

Arthur Yuan

Neil Nandi

321 North Clark Street, Suite 2300 

Chicago, Illinois 60654

Tel.: (312) 464-3100

Fax: (312) 464-3111

Email: akelly@loeb.com

Email: ayuan@loeb.com

Email: nnandi@loeb.com

Marwa Abdelaziz (admitted pro hac vice)

345 Park Avenue

New York, New York 10154 

Tel.: (212) 407-4000 

Fax: (212) 407-4990 

Email: mabdelaziz@loeb.com

 Attorneys for Plaintiffs 

 

 

1

 Exhibit 1 contains the correspondence between Plaintiffs and Defendants on this issue, as well

as PDFs of the Excel attachments to Plaintiffs’ October 29 email. 

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