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Matthias Knab, Opalesque:

The U.S. Securities and Exchange Commission (SEC) has secured a significant legal victory in its ongoing case against Hedonova LLC and its advisory arm, as a federal court has issued a preliminary injunction barring the firms from raising funds from U.S. investors.

On November 18, 2024, the United States District Court for the Central District of California entered the order, which received consent from both parties. The injunction specifically targets alleged violations of anti-fraud provisions across multiple federal securities laws.

The case stems from an SEC complaint filed on June 24, 2024, which alleged that both entities had been engaging in fraudulent activities since at least November 2021. According to the SEC's allegations, Hedonova and its advisory unit made "numerous false statements" regarding the company's operations and governance while raising funds from investors.

While the order represents a significant regulatory action, it's worth noting that it does not prevent the defendants from contesting the SEC's allegations and claims in their ongoing legal proceedings. The case is being heard in the Central District of California under Civil Action No. 2:24-cv-05293.

This development marks a crucial turn in the SEC's enforcement actions against Hedonova, effectively cutting off the firm's access to U.S. investors while the legal process continues.