🥣 Bowl-Cut 🥣

🦋⚖️ $MMAT / $MMTLP — Meta Materials Inc. ⚖️ U.S. Bankruptcy Court, District of Nevada 📄 ORDER ON MOTION TO QUASH 📅 Filed: May 27, 2026 ⚠️NLA 🚨 BIG PICTURE — WHAT JUST HAPPENED? Judge Gary Spraker just issued a MAJOR ruling against: 🏢 Citadel Securities 🏢 Virtu Financial 🏢 Anson Funds These firms tried to QUASH (block) the bankruptcy trustee’s subpoenas seeking trading data tied to: 📈 $MMAT 📈 $TRCH 📈 $MMTLP The Judge said: ❌ The subpoenas are NOT being fully thrown out. ✅ The trustee CAN obtain important trading records. ⚠️ BUT there will be strict protective-order limitations. ⸻ 🧠 LAYMAN’S TERMS The trustee believes there MAY have been market manipulation or wrongful conduct connected to Meta Materials trading activity. The trustee is trying to determine: 🔍 Was trading activity harming the company? 🔍 Did it impact fundraising? 🔍 Did it damage the bankruptcy estate? 🔍 Are there potential legal claims worth pursuing before statutes expire? The Judge basically said: “The trustee has the right to investigate.” ⚖️ ⸻ 📌 THE COURT EMPHASIZED RULE 2004 IS VERY BROAD The Court repeated that Rule 2004 examinations are basically: 🎣 “Fishing expeditions” 📂 Broad investigative tools 🔎 Used to uncover wrongdoing or estate assets The Judge cited multiple cases saying trustees can investigate third parties to determine whether wrongdoing occurred. ⸻ 🚨 HUGE PART — THE COURT ACCEPTED THE TRUSTEE’S THEORY ENOUGH TO ALLOW DISCOVERY The trustee identified: 📊 11 separate “events” where Meta or Torchlight allegedly: 💰 Sold treasury shares 📉 Issued dilution 📈 Raised capital 📄 Issued warrants/acquisition stock during periods where the trustee claims trading manipulation may have affected pricing. The Non-Parties argued: ❌ “Meta wasn’t actually selling into the manipulated market.” ❌ “The trustee lacks standing.” ❌ “This is too speculative.” Judge Spraker was NOT persuaded enough to stop discovery. 👀 ⸻ ⚠️ VERY IMPORTANT — THE JUDGE DREW A LINE The Court said: 🛑 This is NOT the stage where the Court decides whether Citadel/Virtu/Anson actually committed wrongdoing. Instead: ✅ The trustee only needs enough justification to INVESTIGATE whether viable claims might exist. That distinction matters A LOT. ⸻ 👀 THE JUDGE ALSO SHOWED SOME CONCERN This part is important. The Court acknowledged concerns that: ⚠️ The trustee’s special counsel is involved in OTHER securities litigation against Citadel and Virtu. ⚠️ Rule 2004 discovery cannot simply become a shortcut for outside litigation. ⚠️ Discovery should benefit the bankruptcy estate — not unrelated lawsuits. So the Judge imposed guardrails. ⸻ 🔒 PROTECTIVE ORDER INCOMING The Court ordered the parties to negotiate a STRICT protective order. That order must: 🔒 Limit use of produced data -THIS bankruptcy 🔒 Limit use to trustee-related litigation 🔒 Restrict dissemination of data 🔒 Restrict access to trustee + approved professionals only 🚨 RESPONSE DEADLINE: 📅 June 18, 2026 — Protective order must be submitted to the Court. ⸻ 🚨 BIGGEST DEADLINE OF ALL 📅 JUNE 25, 2026 The Judge ordered Citadel, Virtu, and Anson to PRODUCE: 📊 Market-wide trading data 📈 For the 161-day schedule identified by the trustee 📂 Under the Rule 45 subpoenas unless modified by the protective order. That is the MAJOR headline here. 🚨🚨 ⚖️ WHAT THIS MEANS PRACTICALLY The trustee now gains access to a significant amount of trading data that the Court believes may help determine: 🧩 Whether viable claims exist 🧩 Whether wrongdoing occurred 🧩 Whether the estate suffered damages 🧩 Whether litigation should be filed before limitation deadlines This does NOT mean: ❌ Anyone has been found liable ❌ Manipulation has been proven ❌ The trustee automatically wins anything BUT… ✅ The investigation survived. ✅ Discovery survived. ✅ The Court largely sided with allowing investigation over shutting it down. SIGNIFICANT legal victory for the trustee!