Opinion
2:23-cv-01055-RFB-BNW
08-14-2024
IN RE MARATHON DIGITAL HOLDINGS DERIVATIVE LITIGATION This Document Relates to ALL ACTIONS
FLANGAS LAW GROUP KIMBERLY P. STEIN WEIL, GOTSHAL & MANGES LLP JONATHAN D. POLKES (Admitted Pro Hac Vice) STEPHEN A. RADIN (Admitted Pro Hac Vice) CAROLINE HICKEY ZALKA (Admitted Pro Hac Vice) Attorneys for Defendants Georges Antoun, Kevin A. DeNuccio, Hugh Gallagher, Sarita James, Jay Leupp, Doug Mellinger, Merrick Okamoto, Said Ouissal, Simeon Salzman, and Fred Thiel, and Nominal Defendant Marathon Digital Holdings Inc. LEVERTY & ASSOCIATED LAW CHTD. Patrick R. Leverty Timothy Brown THE BROWN LAW FIRM, P.C. Attorneys for Plaintiffs
FLANGAS LAW GROUP
KIMBERLY P. STEIN
WEIL, GOTSHAL & MANGES LLP
JONATHAN D. POLKES (Admitted Pro Hac Vice)
STEPHEN A. RADIN (Admitted Pro Hac Vice)
CAROLINE HICKEY ZALKA (Admitted Pro Hac Vice)
Attorneys for Defendants Georges Antoun, Kevin A. DeNuccio, Hugh Gallagher, Sarita James, Jay Leupp, Doug Mellinger, Merrick Okamoto, Said Ouissal, Simeon Salzman, and Fred Thiel, and Nominal Defendant Marathon Digital Holdings Inc.
LEVERTY & ASSOCIATED LAW CHTD.
Patrick R. Leverty
Timothy Brown
THE BROWN LAW FIRM, P.C.
Attorneys for Plaintiffs
DISCOVERY REPORT STIPULATION AND [PROPOSED] ORDER
Pursuant to this Court's May 21, 2024 Order (ECF No. 47), Plaintiffs filed their Consolidated Complaint on June 25, 2024 (ECF No. 48), and Defendants filed their motion to dismiss Plaintiffs' Consolidated Complaint on August 9, 2024 (ECF No. 50).
In light of the pendency of this motion, the parties have discussed this Court's minute order dated June 26, 2024, directing the parties to file the parties' Discovery Plan and Scheduling Order on or before September 23, 2024.
This is a federal securities law action, asserting claims under Section 14(a) of the Securities Exchange Act of 1934, 15 U.S.C. § 78n(a)(1), and Sections 10(b) and 21D of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b), 78u-4(f). Under the Private Securities Litigation Reform Act of 1995:
In any private action arising under this chapter, all discovery and other proceedings shall be stayed during the pendency of any motion to dismiss, unless the court finds upon the motion of any party that particularized discovery is necessary to preserve evidence or to prevent undue prejudice to that party.15 U.S.C. § 78u-4(b)(3)(B).
This Private Securities Litigation Reform Act of 1995 provision “mandate[s] a stay of discovery during the pendency of a summary judgment or dismissal motion.” Cowen v. U.S. Dist. Ct. for the N.D. Cal., 189 F.3d 909, 911 (9th Cir. 1999). “[T]his provision ‘clearly contemplates' that discovery should be permitted only after the court has sustained the legal sufficiency of the complaint.” Sokolowski v. Adelson, 2014 WL 1777996, at *1 (D. Nev. May 2, 2014) (quoting Cowen, 189 F.3d at 912). “[T]he plain language of the stay provision clearly encompasses any action that asserts claims under the 1934 Securities Exchange Act.” Id. at 3.
The parties accordingly agree that the September 23, 2023 deadline for the parties' Discovery Plan and Scheduling Order should be extended until 30 days following a decision on the motion to dismiss Plaintiffs' Consolidated Complaint on August 9, 2024 (ECF No. 50).
ORDER
IT IS SO ORDERED. The September 23, 2023 deadline for the parties' Discovery Plan and Scheduling Order is extended until 30 days following a decision on the motion to dismiss Plaintiffs' Consolidated Complaint, filed on August 9, 2024 (ECF No. 50).