In re Marathon Digital Holdings, Inc. Derivative Litigation ( 2024 )

1 FLANGAS LAW GROUP KIMBERLY P. STEIN 2 Nevada Bar No. 8675 Email: kps@fdlawlv.com 3 3275 South Jones Boulevard, Suite 105 Las Vegas, NV 89146 4 Telephone: (702) 307-9500 5 WEIL, GOTSHAL & MANGES LLP JONATHAN D. POLKES (Admitted Pro Hac Vice) 6 New York Bar No. 2015527 Email: jonathan.polkes@weil.com 7 STEPHEN A. RADIN (Admitted Pro Hac Vice) New York Bar No. 1901727 8 Email: stephen.radin@weil.com CAROLINE HICKEY ZALKA (Admitted Pro Hac Vice) 9 New York Bar No. 4263448 Email: caroline.zalka@weil.com 10 767 Fifth Avenue New York, NY 10153 11 Telephone: (212) 310-8770 12 Attorneys for Defendants Georges Antoun, Kevin A. DeNuccio, Hugh Gallagher, Sarita 13 James, Jay Leupp, Doug Mellinger, Merrick Okamoto, Said Ouissal, Simeon Salzman, and 14 Fred Thiel, and Nominal Defendant Marathon Digital Holdings Inc. 15 16 UNITED STATES DISTRICT COURT 17 DISTRICT OF NEVADA 18 IN RE MARATHON DIGITAL HOLDINGS Lead Case No: 2:23-cv-01055-RFB-BNW DERIVATIVE LITIGATION 19 This Document Relates to: DISCOVERY REPORT 20 ALL ACTIONS STIPULATION AND [PROPOSED] ORDER 21 22 23 Pursuant to this Court’s May 21, 2024 Order (ECF No. 47), Plaintiffs filed their 24 Consolidated Complaint on June 25, 2024 (ECF No. 48), and Defendants filed their motion 25 to dismiss Plaintiffs’ Consolidated Complaint on August 9, 2024 (ECF No. 50). 26 In light of the pendency of this motion, the parties have discussed this Court’s 27 minute order dated June 26, 2024, directing the parties to file the parties’ Discovery Plan 28 and Scheduling Order on or before September 23, 2024. 1 This is a federal securities law action, asserting claims under Section 14(a) of the 2 Securities Exchange Act of 1934, 15 U.S.C. § 78n(a)(1), and Sections 10(b) and 21D of 3 the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b), 78u-4(f). Under the Private 4 Securities Litigation Reform Act of 1995: 5 In any private action arising under this chapter, all discovery 6 and other proceedings shall be stayed during the pendency of any motion to dismiss, unless the court finds upon the 7 motion of any party that particularized discovery is neces- sary to preserve evidence or to prevent undue prejudice to 8 that party. 9 15 U.S.C. § 78u-4(b)(3)(B). 10 This Private Securities Litigation Reform Act of 1995 provision “mandate[s] a stay 11 of discovery during the pendency of a summary judgment or dismissal motion.” Cowen v. 12 U.S. Dist. Ct. for the N.D. Cal., 189 F.3d 909, 911 (9th Cir. 1999). “[T]his provision 13 ‘clearly contemplates’ that discovery should be permitted only after the court has sustained 14 the legal sufficiency of the complaint.” Sokolowski v. Adelson, 2014 WL 1777996, at *1 15 (D. Nev. May 2, 2014) (quoting Cowen, 189 F.3d at 912). “[T]he plain language of the stay 16 provision clearly encompasses any action that asserts claims under the 1934 Securities 17 Exchange Act.” Id. at 3. 18 The parties accordingly agree that the September 23, 2023 deadline for the parties’ 19 Discovery Plan and Scheduling Order should be extended until 30 days following a 20 decision on the motion to dismiss Plaintiffs’ Consolidated Complaint on August 9, 2024 21 (ECF No. 50). 22 Dated: August 12, 2024 23 LEVERTY & ASSOCIATED LAW CHTD. 24 /s/Patrick R. Leverty Patrick R. Leverty 25 Reno Gould House 832 Willow Street 26 Reno, NV 89502 Tel. 775.322.6636 27 Fax. 775.322.3953 28 Email: pat@levertylaw.com 1 Timothy Brown 2 THE BROWN LAW FIRM, P.C. 767 Third Avenue, Suite 2501 3 New York, NY 10017 4 Tel. 516.922.5427 Fax. 516.344.6204 5 Email: tbrown@thebrownlawfirm.net 6 Attorneys for Plaintiffs 7 FLANGAS LAW GROUP 8 /s/Kimberly P. Stein 9 KIMBERLY P. STEIN Nevada Bar No. 8675 10 Email: kps@fdlawlv.com 3275 South Jones Boulevard, Suite 105 11 Las Vegas, NV 89146 Telephone: (702) 307-9500 12 13 WEIL, GOTSHAL & MANGES, LLP JONATHAN D. POLKES (Admitted Pro Hac Vice) 14 New York Bar No. 2015527 Email: jonathan.polkes@weil.com 15 STEPHEN A. RADIN (Admitted Pro Hac Vice) 16 New York Bar No. 1901727 Email: stephen.radin@weil.com 17 CAROLINE HICKEY ZALKA (Admitted Pro Hac Vice) 18 New York Bar No. 4263448 Email: caroline.zalka@weil.com 19 767 Fifth Avenue 20 New York, NY 10153 Telephone: (212) 310-8000 21 Attorneys for Defendants Georges Antoun, Kevin A. 22 DeNuccio, Hugh Gallagher, Sarita James, Jay Leupp, Doug Mellinger, Merrick Okamoto, Said 23 Ouissal, Simeon Salzman, and Fred Thiel, and 24 Nominal Defendant Marathon Digital Holdings Inc. 25 26 27 28 1 ORDER 2 IT IS SO ORDERED. The September 23, 2023 deadline for the parties’ Discovery 3 || Plan and Scheduling Order is extended until 30 days following a decision on the motion to 4 dismiss Plaintiffs’ Consolidated Complaint, filed on August 9, 2024 (ECF No. 50). 6 tite aie asmaTEDcE □ 8 DATED: 8/14/2024 10 1] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28