12(c) triggers automatic stay
For these reasons, the Court holds that Defendant’s 12(c) motion triggers the automatic discovery stay of the PSLRA. The Court therefore ORDERS that all discovery and other proceedings in this matter are STAYED until Defendant’s motion for judgment on the pleadings is resolved. Additionally, fourteen days after the Court enters its ruling on the Defendant’s motion, the parties shall file a joint proposed discovery schedule. Requests for additional affirmative relief, such as relief from the stay, shall be made by motion.
2 thoughts on “Court Orders Stay on Discovery”
The win by HK on this issue to delay the discovery pending outcome of the 12(c) challenge is significant. The court by granting the stay believes there is merit to the argument to dismiss, and its worth sorting this issue out first before going down what looks like an exhaustive and expensive discovery path. Or as some cynical people like myself would say, an attempt to delay and confuse with lots of non-relevant information.
I believe HK/Softvest/Oliver filed the motion for injunctive relief and to review the election of Oliver as a way to head off the action two days ago of the Trustees to set up an explore a C-Corp conversion. They want their legal strategy to rip the heart out of the Trustees lawsuit with 12(c) and at the same time not let them make any trust-changing choices.
Its becoming an even stronger case for HK/Softvest/Oliver, by them showing the Trustees are willing to do anything but accept losing the election with the c-corp study group. The court’s stay shows they have concerns. What will be interesting is if the court agrees to a temporary injunction on big decisions by the Trustees before the 12(c) issue is resolved.
And of course, since the legal system gives both sides an equal chance, there will be a brief to support not having the injunction or immediate review of the Oliver election by the Trustees. That will make for interesting reading.
Its looking like the Trustees are increasingly getting boxed in with their legal choices to delay. Facts are becoming very inconvenient obstacles for their side to continue to maneuver around.
LikeLiked by 1 person
Thanks for this. I never thought by investing in TPL back in 2015 I would be reading about legality. Your insights help one weather the nonstop BS. Hopefully all will work out in the favor of HK/SoftVest/Oliver.
LikeLiked by 1 person
Comments are closed.