IN RE CARLOTZ, INC. SECURITIES LITIGATION ( 2024 )

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK IN RE CARLOTZ, INC. SECURITIES 21-CV-5906 (AS) LITIGATION ORDER ARUN SUBRAMANIAN, United States District Judge: At the hearing set for Thursday, March 7, 2024, the parties should be prepared to address the following issues: 1. What ramifications, if any, Menora Mivtachim Insurance Ltd. v. Frutarom Industries Ltd., 54 F.4th 82 (2d Cir. 2022), has for scheme-liability claims under Rule 10b-S(a) and (c), and any caselaw either supporting or rejecting Frutarom’s application in this context; 2. Whether the complaint sufficiently alleges a claim for scheme liability. This includes whether the alleged dissemination of previously-made statements, including in securities filings, can either alone or in conjunction with other factors, constitute an actionable violation of the scheme-liability provisions. The parties should have citations to relevant cases either supporting or rejecting potential liability under the circumstances presented here; and 3. Whether and in what filing Plaintiffs “abandoned” their scheme-liability claims, as Defendants suggest in their briefing. SO ORDERED. Dated: March 5, 2024 New York, New York ( ARUN SUBRAMANIAN United States District Judge