KLS Stanford Update - SEC Litigation
March 14, 2013
By KACHROO LEGAL SERVICES, P.C.
In our last update, we notified you that the magistrate judge in our SEC class action denied the Government's request
to stay all discovery. We are summarizing here the outcome of the discovery hearing which was held in Miami on February
14, 2013. One of the key hurdles to overcome in an action against the Government is the discretionary function exception.
The magistrate made clear that this hurdle has been overcome and the court had already ruled on the sovereign immunity
issue. The magistrate also held that "it is not obvious that [the Government's second motion to dismiss] will succeed."
A copy of this ruling is attached for your review. Following this ruling, we have moved forward with discovery and we
continue to wait for the district court to rule on the Government's second motion to dismiss.
In view of the delays caused by the Government's motion to stay discovery, we requested that the Court push back certain pre-trial and trial deadlines to allow us adequate time to pursue the discovery required to prove our case. We are happy to report that the Court granted our request and pushed back discovery deadlines to afford us this opportunity, which also resulted in a new trial date set for April 7, 2014.
In accordance with the foregoing and the undersigned's rulings in open Court, it is ORDERED and ADJUDGED as follows:
1.- The Motion to Stay Discovery [D.E. 50] is DENIED.
2.- The Motion to Compel [D.E. 51] is DENIED WITHOUT PREJUDICE as to Request No. 1 and Interrogatory No. 6 based on Defendant's agreement to supply the names and contact information of the SEC Fort Worth District Office staff members in response to Interrogatory No. 1. Such information is hereby designated as "CONFIDENTIAL, FOR ATTORNEYS' EYES ONLY", and shall be provided to Plaintiff's counsel by February 19, 2013.
3.- The Motion to Compel [D.E. 51] is DENIED WITHOUT PREJUDICE as to Request Nos. 2, 13-16 and Interrogatory Nos. 1-5, 7-8 subject to the following terms. Plaintiffs may notice a Rule 30(b)(6) deposition of the SEC, designating as categories the information sought in their discovery requestes, but narrowed in terms of time, entity and scope as more fully explained at the February 14, 2013 hearing. Within one week of receipt of the Rule 30(b)(6) Notice of Deposition, Defendant may submit a letter to the undersigned setting forth any objections to the designated categories at the undersigned's e-file address, email@example.com. Plaintiffs may respond to any such objections, by the same means, within one week. Thereafter, the undersigned will rule on the objections or, if necessary, set a telephonic hearing to address them. The parties' letters will be appended to the Order on the objections.
The Rule 30(b)(6) deposition of the SEC shall be scheduled on a date that is mutually agreeable to the parties, and at a time when the undersigned will be available to rule on any disputes that may arise regarding its scope. To this end, counsel may contact Chambers to coordinate the deposition date. Further, the parties may submit a proposed confidentiality order prior to the deposition.
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