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Derek Smart @dsmart
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{thread} On Mar 9th, the Star Citizen court battle took another step forward as CIG filed a protective order motion with the court.…

What's that?…
CIG knows that they're going to lose the battle to delay or get around discovery. So they're getting ahead of themselves, knowing that if Crytek files a complaint with the judge, they would be even more compelled to comply.
From the previous filing, we already knew they were already in a battle over this, and sources tell me that it has been heating up since then. Which explains this filing.…
In a case like this, the PO has more to do with financials, than it does trade secrets. But even so, the opposing side and their attorneys, would have learned what's real, fraudulent, inaccurate etc - anyway. Which means that info is no longer compartmentalized to CIG cronies.
It's not up to CIG to determine what gets filed under seal, because Crytek can in fact oppose certain items if they want to.

Usually, parties tend not to argue over certain things (e.g. trade secrets, technology etc) being filed under seal - even without a protective order.
If I were to bet, my money would be on CIG filing a PO because they don't want things like the corporate struct & financials - both of which were the target of the Feb 27 filing - out in public (thus backers).

This is what the Feb 27th battle was about.…
If it were tech, according to the GLA, Crytek are entitled to any/all changes CIG made to CryEngine - and which CIG filed that they had already delivered a few weeks ago.

Also CIG would have NO way to prevent Crytek from merging that into their CE base, thus making it public.
If it were trade secrets, it's hard to imagine that Crytek would care what methods CIG used to bilk and scam backers to the tune of $180m. So I don't see Crytek objecting to such things being filed under seal and not in the public domain.

Trade secrets can also cover tech btw.
The corporate structure for the studios in Germany and the UK, are public and already known.

Similarly, the ones for the US entities are also known to a certain extent - even the shell companies. So it's curious why CIG was even objecting to this in the Feb 27th filing.
There are 18 known entities involved; and we already know the officers attached to all of them.

What's not known is if there are any investors still attached to them. And that's probably part of the reason for CIG being resistant (see Feb 27 filing) and filing a PO now.
So the main one would be financials.

It has been a HUGE sticking point for years - and with all sorts of allegations flying around. The most prevalent being that either they.

1) have NOT raised the money ($180m to date) claimed


2) have raised more than claimed
It would make perfect sense for CIG to want to protect this information and prevent it from ending up in the public domain either through leaks or discovery.

Filing a PO with the court is one way of doing that.

How Crytek responds, will ultimately guide the judge's decision
It should be noted that under normal circumstances, a PO doesn't need to even be filed in order to submit materials under seal. You just file under seal anyway - and then see if the opposing side objects (via a filing with the court) or not.
That CIG pre-empted this process, opting for a just ruling right off the bat, tells me that they are VERY concerned that material they are going to be compelled to provide during discovery, is so highly sensitive, that they want the judge to rule right now - ahead of discovery.
It also another way to delay discovery because unless and until the judge rules, CIG can continue to resist discovery requests as the Feb 27th filing shows they have been doing.

As a result, we now have another delay to April 13th - which is when the hearing happens.
There are very high profile cases in Fed courts where highly sensitive materials are filed in motions, discovery etc - and they are public. It is always up to the judge to decide whether or not something remains under seal either by mutual agreement between parties or via a PO
We have to wait and see what they are trying to hide from the public view because it would be listed on PACER as being filed under seal. And it will remain so if the judge agrees or if there is no objection from Crytek.
I don't believe that Crytek would have any reason to object to CIG filing certain things under seal because they [Crytek] gains nothing by wasting legal bills objecting to such things. All they want is their money as per their allegations.
However, as I've said before, CIG abusive and unprofessional conduct in the past filings, coupled with years of animosity (e.g. CIG did poach some of Crytek's engineers) between the two parties resulting in destroyed bridges, gives a reason for Crytek to air dirty laundry.
So if things like the financials, corporate structure and similar things are found to be deficient and different from what CIG has publicly stated, that's the sort of thing that Crytek would want out in the public as it goes toward the credibility of the opposing side.
Imagine if backers found out CIG raised a LOT less or a LOT more than publicly stated?

Or if they found out CIG had barely enough money to be a going concern for 90 days; that they were operating month to month etc?

How about the debt load? Investor commitments etc?
That's the sort of thing that would hurt CIG in the long term.

Not to mention deposition statements which could ultimately impugn not only the characters involved, but also the entire project.
Was Chris Roberts running a luxury car rental biz prior to Star Citizen?

Does Sandi Gardiner have a SINGLE marketing degree, let alone two - from UCLA?

Did Ortwin, a lawyer & co-founder, really double dip by billing the corporate entities for his services as legal counsel?
Are all the execs expenses being paid via corporate accounts as co expenses?

Does Chris Roberts really make over $500K a year? And between him and Sandi, are they really costing the company almost $1m a year?
Did Chris Roberts really pay himself millions of Dollars for work done prior to the Kickstarter financial success?

Is Sandi being paid not only a salary, but also SAG fees/rates for her performance in SQ42?
These are just some of questions based on statements which have been floating around for years.

That's the sort of thing that depositions and discovery are for.

In the case of this project, it's all about following the money - and it's going to be a very interesting ride.
Imagine if it comes to light that even if they did in fact raise $180m, that a good portion of that was either unaccounted for, or the execs were lining their pockets. That's where unjust enrichment comes from. And that's a whole other lawsuit, probably even before this one ends.
Until then, now we wait to see if this new delay gives them time to hammer out a settlement, thus ending the case, or if it proceeds.

There may be other filings between now and 04/13 - even the MtD ruling could drop before then.

To be clear:

1) I am a Star Citizen backer

2) Though I have friends & contacts at both companies, I have no alliances to anyone in this fiasco.

3) My goal since July 2015, remains the same and unchanged. That being, to find out what happened to this project & the money.
4) As I have done in the past, I have no regard for CIG's attempts at hiding material that backers are entitled to as was PROMISED

5) So, ANYTHING that comes my way, I WILL leak it. And CIG is most welcome to take legal action, thus dragging me into the lawsuit.
Someone made the filings public:

Protective Order motion

Memo in support of motion

Proposed order

When you read through what Crytek is requesting, it's easy to see EXACTLY what I said back in Dec and how this lawsuit was going to go.

EVERYTHING is going to come out. And there isn't a DAMN thing that CIG can do about it.

And that's why CIG are panicking and filing this PO.
Pop quiz. See if you can guess why Crytek is also requesting unedited AtV shows. e.g. this one, as per production request #23

Remember back when I said we keep all this shit cuz we're gamers and we're all particularly autistic & have long term memory?
This one made me lol. It's almost as if I can predict these things now.
Meanwhile, those chuckleheads at CIG are still admitting to the very same thing they're being sued for.

Making 2 - instead of 1 game, as per the licensing agreement (GLA)
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