Back in February
default was entered
against Matt Lloyd and the MOBE corporate defendants.

Citing communication misunderstandings, Lloyd managed to get his entry of default
set aside
in April.

Default against the MOBE corporate defendants still stood however, prompting the FTC to file for default judgment in early May.

In a July 1st order the court denied the FTC’s motion, citing technicalities pertaining to potentially conflicting judgments.

In the FTC’s lawsuit against MOBE, Lloyd and the MOBE corporate defendants are “jointly and severally liable”.

Given that the Court vacated the Clerk’s default entered against Defendant McPhee and that Defendant McPhee appears to be participating in this action, the Court finds that a default

judgment against the MOBE Corporate Defendants risks offending the prohibition against inconsistent judgments.

Therefore, the Court finds that the Motion is due to be denied without prejudice.

Going forward, the FTC has been given the opportunity to brief the court on how granting default against the MOBE corporate defendants ‘
does not risk
offending the prohibition against inconsistent judgments.
‘

Should Plaintiff decide to file a renewed motion for default judgment as to the MOBE Corporate Defendants, Plaintiff shall address the issue of inconsistent judgments with respect to Defendant McPhee, Defendant Whitney, and any other parties to this case … if a default judgment were to be entered against the MOBE Corporate Defendants.

The FTC has been given till July 29th to file a renewed motion addressing the above issues.

If they don’t wish to pursue the matter at this time, the court has also advised they can wait for claims against Lloyd and co-defendant Russel Whitney to be resolved – after which they can again pursue default judgement against the MOBE corporate defendants.

Pending settlement, Matt Lloyd and the FTC are scheduled to face off in court in May 2020.

🤖 Quick Answer

What was the FTC's outcome in its motion for default judgment against MOBE corporate defendants?
In a July 1st court order, the FTC's motion for default judgment against MOBE corporate defendants was denied. The court cited technicalities regarding potentially conflicting judgments as the reason for the denial, despite default having been previously entered against the defendants in February.

🔗 Related Articles

- FTC’s Success By Health lawsuit survives motion to dismiss
- Juan Herman cops $250,000 Traders Domain contempt fine
- MOBE’s Russell Whitney dead, Susan Zanghi’s $318M settlement
- Temurian hit with sanctions, judicial default sought
- Nasgo hitches itself to Ryze unregistered securities opp