Case 4:21-cv-00339 Document 169 Filed on 04/15/22 in TXSD Page 1 of 30
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`IN THE UNITED STATES DISTRICT COURT
`FOR THE SOUTHERN DISTRICT OF TEXAS
`HOUSTON DIVISION
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`RONALD RAGAN, JR.,
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`Plaintiff,
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`v.
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`BERKSHIRE HATHAWAY INC., ET
`AL.,
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`Defendants.
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`
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`Case No. 4:21-cv-00339-ASH
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`JURY TRIAL DEMANDED
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`VAN TUYL GROUP, LLC’S ANSWER, AFFIRMATIVE DEFENSES, AND
`COUNTERCLAIMS TO THE FIRST AMENDED COMPLAINT AND
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`Defendant Van Tuyl Group, LLC1 (“VTG”) files this Answer, Affirmative Defenses, and
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`Counterclaims to Plaintiff Ronald Ragan Jr.’s First Amended Complaint (the “Complaint”).
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`Except as expressly admitted below, VTG denies each and every allegation set forth in the
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`Complaint. VTG reserves the right to amend and/or supplement this Answer. VTG responds to
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`the numbered paragraphs of the Complaint and the pray for relief on behalf of VTG as follows:
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`I. NATURE OF THE CASE2
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`1.
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`VTG denies all allegations in Paragraph 1 directed to VTG, and specifically denies
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`that VTG has used any intellectual property owned by Plaintiff.
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`2.
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`VTG denies the allegations in Paragraph 2 directed to VTG.
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`1 Van Tuyl Group, LLC changed its name to BH Automotive, LLC on April 30, 2021. BH
`Automotive, LLC (formerly known as Van Tuyl Group, LLC) will respond to the allegations
`asserted against Van Tuyl Group, LLC.
`2 VTG has reproduced the headings from the First Amended Complaint for organization
`purposes only. To the extent the headings include allegations for which a response is required,
`VTG denies the allegations in the headings from the First Amended Complaint.
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`3.
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`VTG admits that this action purports to bring causes of action set forth in
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`paragraphs (a)-(d) below. VTG denies that paragraphs (a) through (d) set forth meritorious causes
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`of action directed to VTG. VTG denies the remaining allegations in Paragraph 3 directed to VTG,
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`and specifically denies that it has committed any violations or infringement.
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`a. The cause of action in Paragraph 3(a) has been dismissed by the Court’s April 4,
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`2022 Order, Dkt. 168. As such no response is needed. To the extent any response
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`is required, VTG denies the allegations in Paragraph 3(a) directed to VTG.
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`b. VTG denies the allegations in Paragraph 3(b) directed to VTG, and specifically
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`denies that VTG has committed any acts, whether directly or indirectly, of
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`copyright infringement.
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`c. VTG denies the allegations in Paragraph 3(c) directed to VTG, and specifically
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`denies that VTG has committed any acts, whether intentionally, knowingly, or
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`otherwise, in violation of the Digital Millennium Copyright Act.
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`d. VTG denies the allegations in Paragraph 3(d) directed to VTG, and specifically
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`denies that VTG has committed any acts of trade secret misappropriation.
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`4.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`II. PARTIES
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`in Paragraph 4, and therefore denies them.
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`5.
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`VTG denies the allegations in Paragraph 5 directed to VTG.
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`a. The Court’s April 4, 2022 Order, Dkt. 168, dismissed Berkshire Hathaway, Inc.
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`(“BH”) from this lawsuit. As such no response is needed. Further, Paragraph 5(a)
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`contains no allegations directed to VTG. As such no response by VTG is required.
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`To the extent any response is required, VTG denies the allegations in Paragraph
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`5(a).
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`b. VTG admits that Berkshire Hathaway Automotive, Inc. (“BHA”) is an equity
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`holding company with ownership interests in certain automotive dealerships. VTG
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`admits that BHA is the owner of VTG. VTG denies the remaining allegations in
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`Paragraph 5(b), and specifically denies that BHA has committed any unlawful acts.
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`c. Van Tuyl Group, LLC changed its name to BH Automotive, LLC on April 30,
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`2021. There is no longer a legal entity named Van Tuyl Group, LLC. VTG admits
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`that VTG was a Delaware corporation that formerly did business in Texas under
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`the name “Berkshire Hathaway Automotive.” VTG further admits that its former
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`principle place of business was at 8333 Royal Ridge Parkway, Suite 100, Irving,
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`Texas 75063. VTG admits that BH Automotive, LLC’s current principle place of
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`business is 8333 Royal Ridge Parkway, Suite 100, Irving, Texas 75063. VTG
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`further admits that VTG formerly provided certain consulting services, including
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`training and education to employees of automotive dealerships owned, in part, by
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`BHA. VTG denies the remaining allegations in Paragraph 5(c).
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`d. The Court’s April 4, 2022 Order, Dkt. 168, dismissed Larry Van Tuyl as a
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`defendant in this lawsuit. As such, no response to Paragraph 5(d) is required. To
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`the extent a response is required, VTG denies that Larry Van Tuyl is or was the
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`Chairman of Defendant VTG. VTG lacks knowledge or information sufficient to
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`form a belief as to the remaining allegations in Paragraph 5(d), and therefore denies
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`them.
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`e. The Court’s April 4, 2022 Order, Dkt. 168, dismissed Jeffrey C. Rachor as a
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`defendant in this lawsuit. As such, no response to Paragraph 5(e) is required. To
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`the extent a response is required, VTG admits that Jeffrey C. Rachor was the
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`President and CEO of VTG from March 2015 until VTG became BH Automotive,
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`LLC in April 2021, and continues to be the President and CEO of BH Automotive,
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`LLC. VTG further admits that Mr. Rachor has offices in Irving, Texas. VTG
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`denies the remaining allegations in Paragraph 5(e), and specifically denies that Mr.
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`Rachor has performed, authorized, or approved any infringing acts.
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`f. The Court’s April 4, 2022 Order, Dkt. 168, dismissed William Epperson as a
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`defendant in this lawsuit. As such, no response to Paragraph 5(f) is required.
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`Further, Paragraph 5(f) contains no allegations directed to VTG. As such no
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`response by VTG is required. To the extent a response is required, VTG lacks
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`knowledge or information sufficient to form a belief as to the allegations in
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`Paragraph 5(f), and therefore denies them.
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`g. The Court’s April 4, 2022 Order, Dkt. 168, dismissed William Epperson as a
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`defendant in this lawsuit. As such, no response to Paragraph 5(g) is required.
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`Further, Paragraph 5(g) contains no allegations directed to VTG. As such no
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`response by VTG is required. To the extent a response is required, VTG lacks
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`knowledge or information sufficient to form a belief as to the allegations in
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`Paragraph 5(g), and therefore denies them.
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`h. The Court’s April 4, 2022 Order, Dkt. 168, dismissed all Non-Texas Dealerships
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`as defendants in this lawsuit. As such, no response to Paragraph 5(h) is required at
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`least with respect to the dismissed parties. To the extent a response is required,
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`VTG admits that certain revenue information for automotive dealerships owned, in
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`part, by BHA are reported in consolidated financial statements under the
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`“Retailing” segment for Berkshire Hathaway and its subsidiaries. VTG denies that
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`VTG, BHA, and the “Identified Dealerships” operate as a single enterprise, and
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`further denies that VTG or any Berkshire Hathaway Automotive-affiliated
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`automotive dealerships infringed any copyright held by Plaintiff, misappropriated
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`any trade secret held by Plaintiff, and committed any acts as part of a scheme to
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`profit off of willful copyright infringement or related acts. VTG lacks knowledge
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`or information sufficient to form a belief as to the remaining allegations in
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`Paragraph 5(h), and therefore denies them.
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`i. Paragraph 5(i) contains no allegations directed to VTG. As such no response by
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`VTG is required. To the extent a response is required, VTG denies that any
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`Berkshire Hathaway Automotive-affiliated automotive dealership infringed any of
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`Plaintiff’s copyrights or misappropriated any trade secret held by Plaintiff. VTG
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`lacks knowledge or information sufficient to form a belief as to the remaining
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`allegations in Paragraph 5(i), and therefore denies them.
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`j. Paragraph 5(j) contains no allegations directed to VTG. As such no response by
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`VTG is required. To the extent a response is required, VTG denies that any
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`Berkshire Hathaway Automotive-affiliated automotive dealership infringed any of
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`Plaintiff’s copyrights or misappropriated any trade secret held by Plaintiff. VTG
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`lacks knowledge or information sufficient to form a belief as to the allegations in
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`Paragraph 4(j), and therefore denies them.
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`k. Paragraph 5(k) contains no allegations directed to VTG. As such no response by
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`VTG is required. To the extent a response is required, VTG denies that any
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`Berkshire Hathaway Automotive-affiliated automotive dealership infringed any of
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`Plaintiff’s copyrights or misappropriated any trade secret held by Plaintiff. VTG
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`lacks knowledge or information sufficient to form a belief as to the allegations in
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`Paragraph 5(k), and therefore denies them.
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`III. JURISDICTION & VENUE
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`6.
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`The Court’s April 4, 2022 Order, Dkt. 168, dismissed all claims brought under the
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`federal RICO laws. With respect to the RICO claims identified in Paragraph 6, no response is
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`required. To the extent such a response is required, VTG admits that this Court has subject matter
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`jurisdiction over meritorious actions for copyright infringement generally under 28 U.S.C. §§
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`1331, 1338(a), meritorious actions for federal trade secret claims under 18 U.S.C. § 1836, and
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`meritorious actions for RICO violations under 18 U.S.C. § 1961. VTG denies that Plaintiff states
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`any meritorious claim against VTG and denies that VTG committed any acts of infringement or
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`trade secret misappropriation in this District or elsewhere.
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`7.
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`The Court’s April 4, 2022 Order, Dkt. 168, dismissed all claims brought under the
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`federal RICO laws. On that basis VTG denies that all Defendants are subject to personal
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`jurisdiction under the RICO laws. VTG admits that VTG is not challenging personal jurisdiction
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`in Texas for purposes of this lawsuit only. VTG denies that it committed a tort, in whole or in
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`part, in the State of Texas. VTG lacks knowledge or information sufficient to form a belief as to
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`the remaining allegations in Paragraph 7, and therefore denies them.
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`8.
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`VTG does not presently contest venue is this district for purposes of this action
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`only. VTG denies that Plaintiff states a meritorious claim against VTG and denies that VTG
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`committed any acts in this District or elsewhere that give rise to claims asserted against VTG in
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`this action. VTG lacks knowledge or information sufficient to form a belief as to the remaining
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`allegations in Paragraph 8, and therefore denies them.
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`IV. STATEMENT OF FACTS
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`A. Mr. Ragan is an exceptionally talented, personable, and creative salesman with decades
`of experience.
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`9.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 9, and therefore denies them.
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`10.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 10, and therefore denies them.
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`11.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 11, and therefore denies them.
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`12.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 12, and therefore denies them.
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`13.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 13, and therefore denies them.
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`14.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 14, and therefore denies them.
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`B. Mr. Ragan developed a proprietary sales-strategy playbook to make himself an excellent
`car salesperson and a trainer/coach to salespersons, with the intent to use it in his own car
`dealerships in the future.
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`15.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 15, and therefore denies them.
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`16.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 16, and therefore denies them.
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`17.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 17. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`17, and therefore denies them.
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`18.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 18. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`18, and therefore denies them.
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`19.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 19. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`19, and therefore denies them.
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`20.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 19. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`20, and therefore denies them.
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`21.
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`22.
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`VTG denies all allegations in Paragraph 21 directed to VTG.
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`VTG admits that VTG did not decide to implement a worthless sales strategy
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`nationally. VTG denies that VTG sold any cars using Mr. Ragan’s allegedly proprietary sales-
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`strategy methods, sales-strategy playbook, or database. VTG lacks knowledge or information
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`sufficient to form a belief as to the remaining allegations in Paragraph 22, and therefore denies
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`them.
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`23.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 23. VTG admits
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`that Mr. Ragan attempted to secure copyright protection in U.S. Copyright Registration Nos.
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`TXu913-170 and TXu 2-206-229. VTG further admits that the United States District Court for
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`the Western District of Missouri has held that Copyright Registration No. TXu913-170 is
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`unenforceable and uncopyrightable as a blank form, and on this basis VTG denies that Mr. Ragan
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`holds a valid and enforceable copyright on the materials in Copyright Registration No. TXu913-
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`170. VTG further denies that Mr. Ragan holds a valid and enforceable copyright for the materials
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`in Copyright Registration No. TXu 2-206-229. To the extent Paragraph 23 references any
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`copyrights beyond Copyright Registration Nos. TXu913-170 and TXu 2-206-229, VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`23, and therefore denies them.
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`C. Mr. Ragan used a proprietary tracking method to ensure that his valuable sales-strategy
`playbook and techniques were kept proprietary.
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`24.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 24. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`24, and therefore denies them.
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`25.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 25. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`25, and therefore denies them.
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`26.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter, and on this basis denies the allegations in Paragraph 26. VTG further
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`denies that VTG intentionally or willfully removed any identifiers from copyrighted materials
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`owned by Mr. Ragan. VTG lacks knowledge or information sufficient to form a belief as to the
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`remaining allegations in Paragraph 26, and therefore denies them.
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`D. Seeing the significant value in Mr. Ragan’s sales-strategy playbook and its materials,
`VTG tried to assert ownership over them but then abandoned those attempts decades ago.
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`27.
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`28.
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`VTG denies the allegations in Paragraph 27 directed to VTG.
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`VTG admits that automotive dealerships affiliated with Berkshire Hathaway
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`Automotive sell new and used vehicles, ancillary related products and services including vehicle
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`maintenance and repair services, extended service contracts, vehicle protection products, other
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`aftermarket products, and insurance.
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`29.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter to identify the “sales-strategy system,” and on this basis denies the
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`allegations in Paragraph 29. VTG lacks knowledge or information sufficient to form a belief as to
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`the remaining allegations in Paragraph 29, and therefore denies them.
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`30.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter to identify the “sales-strategy materials,” and on this basis denies the
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`allegations in Paragraph 30. VTG denies that VTG gained access to the sales-strategy materials
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`through Mr. Epperson or VTG lacks knowledge or information sufficient to form a belief as to the
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`remaining allegations in Paragraph 30, and therefore denies them.
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`31.
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`VTG denies the allegations in Paragraph 31.
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`32.
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`VTG denies the allegations in Paragraph 32.
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`33.
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`VTG denies that Defendant “VTG” filed the lawsuit in the District of Arizona, Case
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`No. 2:00-cv-01341-SMM. VTG admits that Case No. 2:00-cv-01341-SMM filed by Automotive
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`Investment Group, Inc. (“AIG”) asserted claims for declaratory judgment that Copyright Reg. No.
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`TXu 913-170 was not infringed, void, invalid, and unenforceable. VTG lacks knowledge or
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`information sufficient to form a belief as to the remaining allegations in Paragraph 33, and
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`therefore denies them.
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`34.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 34, and therefore denies them.
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`35.
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`VTG admits that a different legal entity under the name Van Tuyl Group filed a
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`lawsuit in the Western District of Missouri against Mr. Ragan. VTG lacks knowledge or
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`information sufficient to form a belief as to the remaining allegations in Paragraph 35, and
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`therefore denies them.
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`36.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 36, and therefore denies them.
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`37.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 37, and therefore denies them.
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`38.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 38, and therefore denies them.
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`E. Despite abandoning these lawsuits, VTG—as later acquired by BH—continued to cause
`widespread uses of the sales-strategy materials through its many dealerships across the
`country.
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`39.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
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`Complaint in this matter to identify the “sales-strategy materials,” and on this basis denies the
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`allegations in Paragraph 39. VTG further denies that it has committed any acts of infringement or
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`misappropriation in relation to Plaintiff’s copyrights or trade secrets. VTG lacks knowledge or
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`information sufficient to form a belief as to the remaining allegations in Paragraph 39, and
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`therefore denies them.
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`40.
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`VTG admits that in or around 2015 Berkshire Hathaway Automotive, Inc. acquired
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`an equity ownership interest in approximately 80 automotive dealerships. VTG denies the
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`remaining allegations in Paragraph 40, and specifically denies that VTG “continued to use, copy,
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`distribute, create derivative works, and display Mr. Ragan’s materials throughout the broader
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`organization.”
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`41.
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`VTG denies the allegations in Paragraph 41.
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`42.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 42, and therefore denies them.
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`43.
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`VTG denies the allegations in Paragraph 43.
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`44.
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`VTG denies the allegations in Paragraph 44.
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`45.
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`VTG denies the allegations in Paragraph 45 directed to VTG. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`45, and therefore denies them.
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`46.
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`VTG lacks knowledge or information sufficient to form a belief as to the allegations
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`in Paragraph 46, and therefore denies them.
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`F. BH’s and VTG’s scorched-earth litigation positions and strategies has necessitated the
`naming of nearly every dealership, general manager, etc., in this present suit.
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`47.
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`VTG denies the allegations in Paragraph 47. The United States District Court for
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`the Western District of Missouri has already adjudicated that Copyright No. TXu913-170 is
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`unenforceable because it claims exclusive rights in a blank form that is uncopyrightable. See
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`Exhibit C.
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`48.
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`VTG denies the allegations in Paragraph 48.
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`49.
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`VTG denies the allegations in Paragraph 49.
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`50.
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`VTG denies the allegations in Paragraph 50.
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`V. CAUSES OF ACTION
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`Violations of the U.S. Copyright Act
`Infringements of Exclusive Rights to Reproduce, Prepare Derivatives of,
`Publicly Distribute, and Publicly Display Copyrighted Works
`Copyright Registrations TXu 913-170 and TXu 2-206-2291
`[17 U.S.C. § 106(1)-(3), (5)]
`(against all Defendants, but with only declaratory claims against Epperson)
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`Claims 1-2: Direct and Indirect Infringement of Mr. Ragan’s Exclusive Rights of
`Reproduction, Derivation, Distribution, and Display in his Proprietary Sales-
`Strategy Materials without a License. Claim 3 – Declaratory Relief that Epperson
`does not have now and never had any assignable nor any sublicensable rights to the
`materials. (18 USC § 2201.)
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`51.
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`VTG hereby incorporates its responses to all allegations made above as set forth
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`herein.
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`52.
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`VTG denies that U.S. Copyright Registration Nos. TXu913-170 and TXu 2-206-
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`229 were attached to the complaint. VTG further denies that the materials identified in U.S.
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`Copyright Registration Nos. TXu913-170 and TXu 2-206-229 are copyrightable. VTG lacks
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`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
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`52, and therefore denies them.
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`53.
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`VTG admits that Paragraph 53 accurately recites copyright law. VTG denies that
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`the materials identified in U.S. Copyright Registration Nos. TXu913-170 and TXu 2-206-229 are
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`copyrightable, and further denies that Mr. Ragan owns any valid or enforceable copyrights to the
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`materials identified in U.S. Copyright Registration Nos. TXu913-170 and TXu 2-206-229. VTG
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`further denies that VTG has committed any acts of copyright infringement in relation to U.S.
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`Copyright Registration Nos. TXu913-170 and TXu 2-206-229.
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`54.
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`VTG admits that Mr. Ragan registered U.S. Copyright Registration Nos. TXu913-
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`170 and TXu 2-206-229. VTG further admits that the United States District Court for the Western
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`District of Missouri held that U.S. Copyright Registration No. TXu913-170 is unenforceable as
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`the material is a blank form that is not copyrightable. VTG lacks knowledge or information
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`sufficient to form a belief as to the remaining allegations in Paragraph 54, and therefore denies
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`them. VTG denies the remaining allegations in Paragraph 54(a) through (c). VTG states that Mr.
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`Ragan failed to timely file and serve Exhibit A of his Amended Complaint in this matter, and on
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`this basis denies the allegations in Paragraph 54(d).
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`55.
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`VTG denies the allegations in Paragraph 55, including 55(a)-(d).
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`Claim 1: VTG denies the allegations in Claim 1 with respect to VTG.
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`Claim 2: VTG denies the allegations in Claim 2 with respect to VTG.
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`Claim 3: Claim 3 is directed to William Epperson only. The Court’s April 4, 2022 Order, Dkt.
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`168, dismissed Mr. Epperson from the lawsuit as a defendant. In light of the above, no response
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`is required by VTG. To the extent a response is required, VTG lacks knowledge or information
`
`sufficient to form a belief as to the allegations in Claim 3, and therefore denies them.
`
`Violations of the Digital Millennium Copyright Act
`Unauthorized Distribution of Copies with Copyright Management Information
`Knowingly Removed and Knowing that Such Distribution Will
`Induce, Enable, Facilitate, or Conceal Infringements
`[17 U.S.C. § 1202(b)(3)]
`(against BH, BHA, VTG, and all VTG-legacy dealerships)
`Claim 4: Violations of Mr. Ragan’s Rights to the Integrity of his Copyright
`Management Information through the Knowing and Willful Distribution of Copies
`with Such Information Knowingly Removed.
`
`
`Claim 4: To the extent a response is required to the heading “Claim 4,” VTG denies the allegations
`in Claim 4 directed to VTG.
`
`
`56.
`
`VTG hereby incorporates its responses to all allegations made above as set forth
`
`herein.
`
`57.
`
`VTG admits that Paragraph 57(a) through (b) accurately recite portions of the
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`DMCA. VTG denies that Mr. Ragan is the owner of any valid or enforceable copyright. VTG
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`further denies that VTG has committed any acts in violation of the DMCA in relation to the
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`Plaintiff. VTG denies the remaining allegations in Paragraph 57(a) through (b).
`
`58.
`
`VTG denies that Mr. Ragan is the owner of any valid or enforceable copyright.
`
`VTG lacks knowledge or information sufficient to form a belief as to the remaining allegations in
`
`Paragraph 58, and therefore denies them.
`
`59.
`
`60.
`
`VTG denies the allegations in Paragraph 59 with respect to VTG.
`
`VTG denies the allegations in Paragraph 60 with respect to VTG.
`
`Claim 4: VTG denies the allegations in Claim 4 with respect to VTG.
`
`Violations of the Racketeer Influenced and Corrupt Organizations Act
`Receiving Income from a Pattern of Racketeering Activity and
`Using or Investing such Income in the Operations of a Business
`[18 U.S.C. §§ 1341, 1343, 1961, 1962, 2319]
`(against all Defendants )
`Claim 5: Receiving Income from a Pattern of Willful Copyright Infringement and Using
`Such Income to Operate a Series of Businesses.
`
`61.
`
`VTG hereby incorporates its responses to all allegations made above as set forth
`
`herein.
`
`62.
`
`No response to Paragraph 62 is required because the Court’s April 4, 2022 order,
`
`Dkt. 168, dismissed all RICO claims in the First Amended Complaint. To the extent a response is
`
`required to Paragraph 62, VTG denies the allegations in Paragraph 62 based on the Court’s April
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`4, 2022 order, Dkt. 168.
`
`63.
`
`No response to Paragraph 63 is required because the Court’s April 4, 2022 order,
`
`Dkt. 168, dismissed all RICO claims in the First Amended Complaint. To the extent a response is
`
`required to Paragraph 63, VTG denies the allegations in Paragraph 63 based on the Court’s April
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`4, 2022 order, Dkt. 168.
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`64.
`
`No response to Paragraph 64 is required because the Court’s April 4, 2022 order,
`
`Dkt. 168, dismissed all RICO claims in the First Amended Complaint. To the extent a response is
`
`required to Paragraph 64, VTG denies the allegations in Paragraph 64 based on the Court’s April
`
`4, 2022 order, Dkt. 168. VTG further denies that Mr. Ragan owns any valid or enforceable
`
`copyright, and VTG further denies that VTG has committed any acts of copyright infringement,
`
`willful or otherwise, with respect to Mr. Ragan’s materials.
`
`65.
`
`VTG denies all allegations in Paragraph 65 directed to VTG. VTG lacks
`
`knowledge or information sufficient to form a belief as to the remaining allegations in Paragraph
`
`65, and therefore denies them.
`
`66.
`
`VTG denies all allegations in Paragraph 66 directed to VTG. VTG further denies
`
`that Mr. Ragan owns any valid or enforceable copyright, and VTG further denies that VTG has
`
`committed any acts of copyright infringement, willful or otherwise, with respect to Mr. Ragan’s
`
`materials. VTG lacks knowledge or information sufficient to form a belief as to the remaining
`
`allegations in Paragraph 66, and therefore denies them.
`
`67.
`
`VTG denies all allegations in Paragraph 67 directed to VTG. VTG further denies
`
`that Mr. Ragan owns any valid or enforceable copyright, and VTG further denies that VTG has
`
`committed any acts of copyright infringement, willful or otherwise, with respect to Mr. Ragan’s
`
`materials. VTG lacks knowledge or information sufficient to form a belief as to the remaining
`
`allegations in Paragraph 67, and therefore denies them.
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`Violations of the Defend Trade Secrets Act
`Misappropriation of Valuable and Secret Business Information
`[18 U.S.C. §§ 1836, 1839]
`(against all Defendants)
`Claim 6: Misappropriation of Trade Secrets on the Implementation of Automotive Sales-
`strategies and Systems.
`
`68.
`
`VTG hereby incorporates its responses to all allegations made above as set forth
`
`herein.
`
`69.
`
`VTG admits that Paragraph 69 accurately recites portions the DTSA. VTG denies
`
`the remaining allegations in Paragraph 69 and specifically denies that Mr. Ragan owns trade
`
`secrets. VTG further denies that VTG has committed any acts of trade secret misappropriation in
`
`relation to the Plaintiff.
`
`70.
`
`VTG admits that Paragraph 70 accurately recites portions the DTSA. VTG denies
`
`the remaining allegations in Paragraph 70 and specifically denies that Mr. Ragan owns trade
`
`secrets. VTG further denies that VTG has committed any acts of trade secret misappropriation in
`
`relation to the Plaintiff.
`
`71.
`
`VTG admits that Paragraph 71 accurately recites portions the DTSA. VTG denies
`
`the remaining allegations in Paragraph 71 and specifically denies that Mr. Ragan owns trade
`
`secrets. VTG further denies that VTG has committed any acts of trade secret misappropriation in
`
`relation to the Plaintiff.
`
`72.
`
`VTG admits that Paragraph 72(a) through (b) accurately recites portions the DTSA.
`
`VTG denies the remaining allegations in Paragraph 72(a) through (b) and specifically denies that
`
`Mr. Ragan owns trade secrets. VTG further denies that VTG has committed any acts of trade
`
`secret misappropriation in relation to the Plaintiff.
`
`73.
`
`VTG lacks knowledge or information sufficient to form a belief as to the allegations
`
`in Paragraph 73, and therefore denies them.
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`74.
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`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
`
`Complaint in this matter to identify the “trade secrets at issue here,” and on this basis denies the
`
`allegations in Paragraph 74. VTG lacks knowledge or information sufficient to form a belief as to
`
`the remaining allegations in Paragraph 74, and therefore denies them.
`
`75.
`
`VTG states that Mr. Ragan failed to timely file and serve Exhibit A of his Amended
`
`Complaint in this matter to identify the “trade secrets at issue here,” and on this basis denies the
`
`allegations in Paragraph 75. VTG lacks knowledge or information sufficient to form a belief as to
`
`the remaining allegations in Paragraph 75, and therefore denies them.
`
`76.
`
`77.
`
`VTG denies the