Phoenix, Arizona 85016 (602) 778-3700 OGLETREE, DEAKINS, NASH. SMOAK 8: STEWART 2415 East Camelback Road, Suite 800 Tracy A. Miller, SBN 015920 Melissa E. Posner, SBN 029953 OGLETREE, DEAKINS, NASH, SMOAK STEWART, P.C., #00504800 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85016 Telephone: (602) 778-3700 r: - cc'i: aim" wasZg?iP?AH/l?egi ?00 WED BY A. MCLOONE, THE LAWRENCE LAW GROUP PLLC Andrew J. Lawrence (DC Bar No. 486160) Pro Hac Vice Application Pending 5335 Wisconsin Avenue NW, Suite 700 Washington, DC 20015 (202) 904-2822 ajl@lawrencelg.com Attorneys for Plaintiffs SUPERIOR COURT OF THE STATE OF ARIZONA COUNTY OF MARICOPA ,7 cvzoi7?00,q57 PILATUS BANK, and ALI SADR, No. Plaintiff, COMPLAINT (Defamation, Tortious Interference, Injurious Falsehood, and Equitable Relief) DAPHNE CARUANA GALIZIA, Assigned to on. Defendant. Plaintiffs Pilatus Bank, PLC and Ali Sadr, by their attorneys, Ogletree, Deakins, Nash, Smoak Stewart, RC. and The Lawrence Law Group PLLC, for their Complaint against Defendant, state as follows: OGLETREE. DEAKINS, NASH, SMOAK STEWART, RC. 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85015 tall-u 05-1-4- Bil??Ea 1. Plaintiff Pilatus Bank, PLC (?Pilatus Ba is a private bank organized under the laws of Malta, with a principal place of business in Malta. Pilatus provides banking services in Europe, Asia and the Americas. 2. Plaintiff Ali Sadr (?Sadr?) is an individual and a permanent resident of the District of Columbia. Sadr is the owner of Pilatus. 3. Defendant Daphne Caruana Galizia is an individual, and upon information and belief, a resident of Malta. Jurisdiction 4. This Court has subject matter jurisdiction over this action pursuant to Ariz. Rev. Stat. Ann. 12-123. 5. This Court has personal jurisdiction over Defendant pursuant Ariz. R. Civ. P. Rule 4.2 as Defendant has consented to personal jurisdiction of this Court by contract. 6. Venue is proPer under A.R.S. 12-401(5) as Defendant has consented to appear in this Court by contract. Facts Common to All Counts A. Jurisdiction 7. This action arises out of Defendant?s false and defamatory statements published on her weblog entitled ?Running Commentary Daphne Caruana Galizia?s Notebook? (her ?blog?), located on the world wide web at daphnecaruanagalizia.com. 8. On or about March 1, 2008, Defendant registered the domain name ?daphnecaruanagalizia.com? with Registrar GoDaddy.com LLC. 9. Upon information and belief, upon registering the domain name, Defendant agreed to be bound by the GoDaddy Universal Terms of Service Agreement, including the GoDaddy Domain Name Registration Agreement, as modi?ed from time to time. 10. Pursuant to the GoDaddy Domain Name Registration Agreement, Defendant agreed, among other things, to submit to the jurisdiction of the courts where Registrar is located. OGLETREE, DEAKINs, NASH, SMOAK 8: STEWART, 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85016 Ina-an nun QQAA \DOO?Qm-?th?n 11. Ste. 226, Scottsdale, AZ 85260 in Maricopa County, Arizona. GoDaddy.com headquarters are located at 14455 N. Hayden Rd., B. Defendant?s Defamatory Statements 12. Beginning on or about April 20, 2017, and continuing through the date of ?ling of this complaint, Defendant has published a series of blog posts containing false and defamatory statements asserting that Mr. Sadr created Pilatus Bank for the purpose of criminal money laundering, and that Mr. Sadr has used Pilatus Bank for criminal money laundering. These published false and defamatory statements include statements that the Bank held documents in its safe relating to Mrs. Michelle Muscat, wife of the Prime Minister of Malta, and that the Bank had accounts for companies named Tillgate Inc., Heamville Inc. and Egrant Inc., through which it laundered millions of euros. These published false and defamatory statements also include statements that the Bank ordered staff to conceal information from the Maltese Financial Investigations Intelligence Unit and that Mr. Sadr has committed criminal acts. As of the writing of this Complaint, several defamatory posts are highlighted and linked to as ?Featured Posts? on Defendant?s blogcriminally launder money. Pilatus Bank is a private commercial bank The statements of fact in the above published posts are false. Pilatus Bank that provides customized banking solutions and wealth management services that is regulated under European banking laws. Pilatus Bank has not committed any criminal acts. Mr. Sadr has not committed any criminal acts. Pilatus Bank does not have accounts for Prime Minister Joseph Muscat, his wife Michelle Muscat, Tillgate, Inc., Heamville, Inc. or Egrant, Inc. Pilatus Bank did not participate in the transactions described above. Pilatus Bank executives did not order staff to conceal information from government investigators. 14. The defamatory statements in Defendant?s blog were not privileged. 15. In addition to the above published defamatory statements, Defendant has published numerous additional false and defamatory statements in an attempt to give her OGLETREE, DEAKINS, NASH, SMOAK STEWART 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85016 accusations an aura of credibility. As examples, Defendant published that Pilatus Bank has a safe in the kitchen of its of?ces containing secret documents connected to the wife of the Prime Minister of Malta, published that Pilatus Bank applied for its banking license in late 2013 and received it with amazing speed in January 2014, and published the false claims that Pilatus Bank?s branch in the United Kingdom is a sham. 16. Pilatus Bank does not have a safe in the kitchen and does not have secret documents connected to the wife of the Prime Minister of Malta. Pilatus Bank did not obtain its banking license in a period of two months, but rather obtained its license by the normal process, a period of approximately eighteen months. Pilatus Bank is opening a branch in London, which became licensed and regulated by the appropriate authorities as of April 11, 2017, and is scheduled to open to customers at the end of June, 2017. 17. Defendant?s posts repeatedly reference Mr. Sadr?s nationality and country of origin in a malicious attempt to smear his character. 18. The defamatory statements published in Defendant?s blog posts on their face falsely tend to impeach Pilatus Bank?s and Mr. Sadr?s honesty, integrity or reputation, and therefore constitute defamation per se. 19. The defamatory statements published in Defendant?s blog posts have been recirculated by numerous Maltese and international newspapers and websites. 20. As a private bank, Pilatus Bank?s reputation and trustworthiness is essential to its ability to operate as a bank. In the modern ?nancial system, Pilatus Bank?s operations require trusted relationships with the bank?s clients, and with corresponding banks throughout the world. Defendant?s defamatory statements foreseeably caused substantial damage to these relationships and threaten to irreparany destroy those relationships, and thereby destroy Pilatus Bank itself. 21. Mr. Sadr is involved in many business ventures and Defendant?s defamatory statements foreseeably caused substantial damage to his businesses, career, reputation and actual and prospective economic relationships. OGLETREE, DEAKINS, NASH, SMOAK 8; STEWART, P.C. 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85016 uni-n? -ll nun- 22. Defendant?s conduct was intentional, malicious, racist, abhorrent and oppressive, justifying an award of punitive damages. Defendant?s conduct had caused and continues to cause damage to Plaintiffs and, as a result, the Court should issue temporary, preliminary, and permanent injunctive relief. COUNT I DEFAMATION 23. Paragraphs 1-22 are incorporated as if set forth fully herein. 24. Defendant published numerous false statements about Pilatus Bank and Mr. Sadr on her blog. 25. Defendant knew these statements were false, and/or acted in reckless disregard of whether these statements were true or false, and/or negligently failed to ascertain the truth or falsity of these statements. 26. Defendant published these statements intending to bring Pilatus Bank and Mr. Sadr into disrepute, contempt, or ridicule, and to impeach Pilatus Bank?s and Mr. Sadr?s honesty, integrity, Virtue, and reputation. 27. Defendant published these statements with actual malice. 28. Defendant?s defamatory statements caused actual damage to Pilatus Bank and Mr. Sadr. COUNT II TORTIOUS INTERFERENCE WITH BUSINESS EXPECTANCY 29. Paragraphs 1-28 are incorporated as if set forth fully herein. 30. Pilatus Bank and Mr. Sadr have numerous contractual and economic relationships and expectancies with third parties as part of their private banking business, including contractual relationships and expectancies with clients of Pilatus Banks and with corresponding banks throughout the world. 31. Defendant knew of these contractual and economic relationships. and expectancies. OGLETREE, DEAKINS, NASH, SMOAK STEWART 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85015 32. Defendant intentionally interfered with these relationships and expectancies by publishing numerous false and defamatory statements about Pilatus Bank and Mr. Sadr, which caused disruption of and termination of these relationships and expectancies. 33. In addition, Defendant intentionally misappropriated and published Pilatus Bank?s con?dential information, including customer names, which the Bank was under a duty to maintain con?dential. 34. Plaintiffs interference was improper and intended to harm Pilatus Bank?s relationships. 35. Pilatus Bank and Mr. Sadr have been damaged by the disruption of and termination of these relationships and expectancies, and by the misappropriation and publishing of con?dential information. COUNT INJURIOUS FALSEHOOD 36. Paragraphs 1-35 are incorporated as if set forth fully herein. 37. Defendant intentionally published false information that is derogatory to Pilatus Bank?s business. 38. Defendant published false information calculated to prevent others from dealing with Pilatus Bank. 39. Defendant published the statements above knowing that they were false. 40. Pilatus Bank has been damaged by the publication of the false and derogatory information. WHEREFORE, Plaintiffs Pilatus Bank, PLC and Ali Sadr respectfully request that this Court enter Judgment against Defendant Daphne Caruana Galizia as follows: A. Awarding Plaintiffs actual and compensatory damages an amount to be determined at trial, plus interest; B. Awarding Plaintiffs punitive damages; C. Temporarily, Preliminarily, and Permanently Enjoining Defendant from publishing the defamatory statements set forth herein; OGLETREE, DEAKINS, NASH, SMOAK 8: STEWART 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85016 D. Awarding Plaintiffs the costs of bringing this action, including reasonable attorneys? fees, disbursements and experts? fees; and E. Providing for such other or further relief as the Court may deem just and proper. JURY DEMAND Plaintiffs demand a trial by jury on all issues so triable. DATED this 8th day of May 2017. Ogletree, Deakins, Nash, Smoak Stewart, P.C. B, %m may Tracy?A. Milier Melissa E. Posner 2415 East Camelback Road, Suite 800 Phoenix, Arizona 85016 Attorneys for Plaintiffs