FILED

DALLAS COUNTY
5/27/2015 7:25:10 PM
FELICIA PITRE
1 CIT / ES DISTRICT CLERK
Anna Negrete

NO. _ _ _ _ __
DC-15-06084

WILLIAM KRUEGER § IN THE DISTRICT COURT

§
Plaintiff, §
§
v. § OF DALLAS COUNTY, TEXAS
§
PULSE EVOLUTION §
CORPORATION, §
§
Defendant. § 14TH JUDICIAL DISTRICT

PLAINTIFF'S ORIGINAL PETITION AND

APPLICATION FOR INJUNCTIVE RELIEF

TO THE HONORABLE JUDGE OF SAID COURT:

COMES NOW Plaintiff, William Krueger ("Krueger" and "Plaintiff'), files this Original

Petition and Application for Injunctive Relief against Pulse Evolution Corporation ("Pulse" and

"Defendant"), and states as follows:

I.

DISCOVERY CONTROL PLAN

Discovery in this action should be conducted under Rule 190.4 (Level 3) of the Texas

Rules of Civil Procedure. Plaintiff reserves the right to amend its discovery control plan

statement as the facts and circumstances of the case dictate.

II.

PARTIES AND SERVICE

William Krueger is a resident of Dallas County, Texas.

Pulse is a Nevada corporation and may be served with process by serving its registered

agent at Corporate Creations Network, Inc., 8275 South Eastern Avenue #200, Las Vegas,

Nevada 89123.

PLAINTIFF'S ORIGINAL PETITION Page I

AND APPLICATION FOR INJUNCTIVE RELIEF

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 III.
JURISDICTION AND VENUE

This Court has jurisdiction as the amount in controversy exceeds the minimum

jurisdictional limits of this Court. In making this allegation Plaintiff expressly stipulates that the

monetary relief requested is less than $74,500. This Court can exercise personal jurisdiction

over Defendant because a substantial part of the events or omissions and damages giving rise to

the claims asserted took place in Dallas County and Defendant has marketed the misrepresented

status of Plaintiff through its internet website in Dallas County, Texas. In addition, Plaintiff as a

resident of Dallas County, Texas, has sustained damages in Dallas County.

IV.

SUMMARY OF CASE

Pulse Evolution Corporation ("Pulse" or "Company") is a startup technology and

intellectual property company, established to produce specialized, high-impact applications of

computer-generated hwnan likeness - or "digital human beings" - for utilization in

entertainment, life sciences, education and telecommunications.

In its first year of operation, Pulse proclaimed itself as the leader in the ''new, globally

relevant digital performance industry." The Company claimed it had acquired the digital likeness

rights of three late celebrities - Michael Jackson, Elvis Presley and Marilyn Monroe - and

produced the Virtual Michael Jackson Show at the 2014 Billboard Music Awards. This

perfonnance was broadcast live to more than 11 million viewers and generated (estimate) more

than 98 billion Internet impressions in the weeks that followed. Pulse is thus extremely

knowledgeable regarding the use and exploitation of internet marketing and web based

representations.

PLAINTIFF'S ORIGINAL PETITION Page2

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 Pulse is focused on the entertainment and media marketplace, which it claims is expected

to generate $2.152 trillion in worldwide revenues by 2017. Pulse's website proclaims that it

plans to produce digital media product that will penetrate every sector of this industry, and be

consumed by global audiences on the growing variety of screens and stages available today -

from theaters and television, tablets and phones, to stages and dynamic live performance venues

around the world.

Krueger joined a consolidated subsidiary of Pulse as Executive Vice President and Chief

Financial Officer in May 2014 and held the same titles and position in Pulse, the parent company

beginning on or around September 30, 2014. Pulse obtains investors through soliciting

investments and marketing its claimed expertise and opportunities. Since it is and was largely a

"start up" company current and prospective investors look in part to the management for

creditability. Krueger has been listed as the Executive Vice President and Chief Financial

Officer and is currently represented to be part of the Pulse "team" on Pulse's website. A true and

correct copy off the Pulse web page from May 18, 201 S and May 27, 2015 is attached as

Exhibits "A", "A-1" and "A-2". A true and correct copy of Krueger's Bio off Pulse web page is

attached as Exhibit "A-3". Pulse's representation that Krueger is Chief Financial Officer and

part of the Pulse management team is false. Krueger was terminated from his positions as

Executive Vice President and Chief Financial Officer on January 30, 2015. Krueger's

tennination was without notice and without cause.

Since Krueger's termination he has requested that Pulse give notice to current and

prospective investors, and the public in general, that he is no longer associated with Pulse.

PLAINTIFF'S ORIGINAL PETITION Pagel

AND APPLICATION FOR INJUNCTIVE RELIEF

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 Despite such requests, Pulse's website, as illustrated by Ex. A, continues to list Mr.

Krueger as Executive Vice President and Chief Financial Officer which consti~tes a continuing

misrepresentation that he is responsible for the Company's financial operations and reporting,

and may constitute a failure to report material infonnation. 1

Mr. Krueger was terminated without notice or cause on January 30, 2015 and has

requested that the Company cease identifying his status and the Company continues to do so.

Moreover, the failure of the Company to make the required notice to the public within 4 business

days of occurrence of the event as required by leaving Mr. Krueger in the position of having

current and potential investors of the Company rely upon this misrepresentation in evaluating the

Company and its attractiveness as an investment and making credit decisions.

Plaintiff requests that the Court enjoin the Company from:

(1) Representing to its investors and to the public through the website and internet

marketing that Mr. Krueger remains as Chief Financial Officer; and

(2) That it cease listing Krueger as Chief Financial Officer and "management team"

from all communications and that all marketing materials distributed by the

Company delete any reference to his being an officer, Chief Financial Officer,

management team member, or employee since January 31, 2015.

1 Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934, Rules for Filing Current Report
Fonn 8-Km Item S.02(b). Plaintiff makes no independent claim based upon violation of SBC Rule but references it
to explain the need for injunctive relief.

PLAINTIFF'S ORIGINAL PETITION Page4

AND APPLICATION FOR INJUNCTIVE RELIEF

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 IV.

DTPA VIOLATION

Pulse's continued misrepresentation regarding Plaintiff's sponsorship and affiliation with

Pulse to prospective and current investors and the public generally constitutes a false and

misleading act or practice in the conduct of trade or commerce as contemplated by Tex. Bus. &

Com Code § 17.46(a). Moreover by continuing to misrepresent Krueger as "Chief Financial

Officer" and part of the Pulse Management "Team" when he has ceased being employed with

Pulse for over four months, and is not and has not been Chief Financial Officer or part of the

Pulse Management Team since January 31, 2015, is violation of l 7.46(b) by:

(1) causing confusion or misrepresentation as to the sponsorship of the Pulse products

and services;

(2) causing confusion or misrepresentation as to Krueger's affiliation with the Pulse

organization.

(3) representing the Pulse products and services ~ve sponsorship or affiliation with

Krueger as Executive Vice President and Chief Financial Officer and that Krueger

is part of "Pulse Team" when Krueger is not and has not now and has not been

Chief Financial Officer or Executive Vice President since January 31, 2015.

v.
REQUEST FOR TEMPORARY RELIEF
Krueger alleges that the continued misrepresentation by Pulse of Krueger's claimed

affiliation with Pulse and the misrepresentation that he is the Chief Financial Officer and part of

Pulse Management Team has and is causing Krueger irreparable harm and injury because the

PLAINTIFF'S ORIGINAL PETITION Pages

AND APPLICATION FOR INJUNCTIVE RELIEF

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 investors, current and prospective, and others who may invest in or grant credit, or forego

collection actions against Pulse in reliance upon Krueger's claimed sponsorship and affiliation

with Pulse. Krueger's reputation will be damaged if Pulse is not immediately enjoined as

requested. Krueger requests that Pulse be enjoined from continuing to represent to investors,

creditors and the public at large that he is affiliated with Pulse as CFO and part of Pulse's

"management".

Plaintiff requests that the Court enjoin the Company from:

(3) Representing to its investors and to the public through the website and internet

marketing that Mr. Krueger remains as Chief Financial Officer; and

(4) That it cease listing Krueger as Chief Financial Officer and "management team"

from all communications and that all marketing materials distributed by the

Company delete any reference to his being an officer, Chief Financial Officer,

management team member, or employee since January 31, 2015.

PRAYER
WHEREFORE, PREMISES CONSIDERED, Plaintiff requests that Defendant be cited to

appear and answer and that on final trial:

1. all costs of court;

2. that Plaintiff recover his actual damages including general special damages, as

alleged and as limited above;

3. that the Court entered an order enjoining Defendant and all those acting in concert

with Defendant, from continuing to represent either directly or indirectly, that

PLAINTIFF'S ORIGINAL PETITION Page6

AND APPLICATION FOR INJUNCTIVE RELIEF

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 Plaintiff is affiliated with or otherwise a part of the management team of Defendant;

and

4. Plaintiff recover such other and further relief to which Plaintiff may be justly entitled.

Respectfully submitted,

ORAY REED & McORAW, P.C.

By: ls/Ralph Peny-Miller

RALPH PERRY-MILLER
State Bar No. 15810300
rper111miller@gravreed com

4600 Thanksgiving Tower

1601 Elm Street
Dallas, Texas 75201
Telephone:214.954.413S
Facsimile: 214.953.1332

ATIORNEYS FOR PLAINTIFF

WILLIAM KRUEGER

PLAINTIFF'S ORIGINAL PETITION Page7

AND APPLICATION FOR INJUNCTIVE RELIEF

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 NO·--~--~-----
WILLIAM KRUEGER § IN THE DISTRICT COURT
§
Plaintiff, §
§
v. § OF DALLAS COUNTY, TEXAS
§
PULSE EVOLUTION §
CORPORATION, §
§
Defendant. § JUDICIAL DISTRICT

DECLARATION OF WILLIAM KRUEGER

My name is William Krueger, my date of birth is June 16, 1959, and my address is 9934

Glen Canyon Dr., Dallas, Texas 75243, USA. I declare under penalty of perjury that the

foregoing Section IV., Summary of Case of Plaintiff's Original Petition and Application for

Injunctive Relief is true and correct

Executed in Dallas County, State of Texas, on the 27th day of May 2015.

PLAINTIFF'S ORIGINAL PETITION Page8

AND APPLICATION FOR INJUNCTIVE RELlEF

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THE TEAM
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LEADERSHIP

JOHN TEXTOR FRANK PATTERSON

Executive Chairman of the Board Chief Executive Officer

JIM BERNEY WILLIAM KRUEGER

President and Head of Studio Executive V ice President and CFO

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PRINCIPALS AND ADVISORY BOARD MEMBERS

RENE EICHENBERGER GREG CENTINEO

Vice Chairman of the Board Principal I Co-Chairman.
Tradition Studios
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THE TE AM

LEADERSHIP
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JOHN TEXTOR FRANK PATTERSON

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Execu t ive C hairman of the B oa rd Ch i ef Executive Officer

JIM BERNEY
Presi d e nt a n d Head of Studio
W ILLIAM KRUEGER
Executive Vice Pr es i de n t an d CFO
I
PRINCIPALS AND ADVISORY BOARD MEMBERS

RENE EICHENBERGER GREG CENTINEO

Vice C hairma n of t h e Boa rd Principa l I Co-Ch airman,
Tradition Stud ios
WILLIAM KRUEGER I Pulse Evolution Page I of2

Chttp://www.pulse col>

HOME ABOUT TEAM EXPERIENCE

(http·Jl..•.ww.pulse.COI) (hnp:/lwMY. pulse.cotaboul-pulsel) (http://www.pulso.co/ltle-teaml) (http11www.pulse.co/expenencel)

INNOVATION MEDIA
WILLIAM KRUEGER
CONTACT INVESTORS
(hllp://www.pulse coJinnovation-limelineJ) (hllp:/lwlvw.pulse.co/medfa·pressl) (http:/llY\vw.pulse.c:o/ccntad·pulso/)

LEADERSHIP

WILLIAM KRUEGER
Executive Vice President and CFO

Bill Krueger is an international executive with over two decades of

experience leading, managing, launching and advising operations in the
US, Europe and Asia, working with companies ranging in scale from
established global MNC's to private equity-backed start-ups.

Bill studied music and theater at Northwestern University where he

earned his Bachelor's degree. He subsequently received his MBA from
Northwestern's Kellogg School of Management, majoring in finance. He
began his career with Lehman Brothers as an investment banker in New
York and Frankfurt, where he helped close $1.9 billion of US equity and
debt securities offerings and $3.6 billion of merger, acquisition and
divestiture transactions. He subsequently joined the European division of
Haemonetics Corp. to oversee finance and administration. including
human resources and customer care.

After six years based in Europe, Bill joined Siemens AG and moved to
Beijing, China as the founding CFO. and later CEO of Xin De Telecom
International Ventures Co, Ltd., a Siemens joint venture with T-Mobil and
the China International Trust and Investment Corporation. He was
responsible for raising and managing $200 million invested in the start-up
of China Unicorn's GSM networks. An important achievement of Bill's
tenure with Siemens was successfully negotiating early termination
agreements between China Unicom and some thirty foreign investment
joint venture partners. The settlement ended a long and acrimonious
international dispute and resulted in profitable exits and settlement
payments to investors totaling more than US$1.4 billion, clearing the way
for China Unicom's $5 billion Global IPO.

Bill led the management buy-out of Xin De Telecom from Siemens in

2002 to form Xin De Capital Group, Ltd. a financial advisory and principal
investment group. Following sale of the Group in 2010, he worked as a
coach to entrepreneurs and an advisor to private equity investors in Asia,
Europe and the US whose companies were facing strategic business
development and financing challenges.

EXHIBIT

I A-3
http://www.pulse.co/william-krueger/
WILLIAM KRUEGER I Pulse Evolution Page2 of2

Bill has garnered experience across a wide range of Industries: telecom

(http·t8JW'.Bt\WJY'd equipment. digital media. property development and
management services. building materials. Infrastructure, energy and
resources. digital media, on·llne gaming. enterprise software, and health
HOME ABOUT TEAM EXPERIENCE
(http://tMw.pullo.col) ~I sewJ11.w.pu1se.c:a11t1e-caBml) (hlfp:ttwww.pulSO.c:olexpOMneel)

INNOVATION Bill has chaJms&,panels and addressed &aW.tr,ences In the US and ~6M's
(h11p:tN.1WW.pulsa.ccAnnova11o!IAffJreaonor9Wl~ftfM~8fi!'PaclflRSW·ei!e~~cll. and the
APEC CEO Summit. His charitable activities include leading a sustained
period of fundraislng for the Rotary International "Gift ot Life" Program
funding open·heart surgeries to needy children. His cultural involvements
include serving several years as a sponsor and Advisory Board Member of
the Beijing International Music Festival. His working languages are
German, Mandarin Chinese, and French.

http://www.pulse.co/william-krueger/