Rossi v. DeChellis

District Court, N.D. California·Decided April 11, 2024·No. 4:24-cv-01674·Unknown

Opinion

Daniel C. Girard (SBN 114826) dgirard@girardsharp.com Adam E. Polk (SBN 273000) apolk@girardsharp.com Jordan Elias (SBN 228731) jelias@girardsharp.com Sean P. Greene (SBN 328718) sgreene@girardsharp.com GIRARD SHARP LLP 601 California Street, Suite 1400 San Francisco, CA 94108 Telephone: (415) 981-4800 Facsimile: (415) 981-4846 Attorneys for Plaintiffs Kim Stevenson and Howard Tarlow UNITED STATES DISTRICT COURT KIM STEVENSON, et al., Case No. 23-cv-02277-HSG Plaintiff, STIPULATION AND ORDER REGARDING CERTIFICATION OF v. ORDER DENYING MOTIONS FOR REMAND FOR APPEAL AND GREGORY W. BECKER, et al., CORRESPONDING STAY OF PROCEEDINGS Defendants. Date: April 16, 2024 Time: 2:00 p.m. Judge: Haywood S. Gilliam, Jr. STEPHEN ROSSI, et al., Case No. 23-cv-02335-HSG Plaintiffs, v. GREGORY W. BECKER, et al., Defendants. [additional caption on following page] STEPHEN ROSSI, et al., Case No. 24-cv-01674-HSG Plaintiffs, v. ANTHONY DECHELLIS, et al., Defendants. Pursuant to Civil Local Rule 7-12 and the Court’s March 28, 2024 Order Denying Motions to Remand, (Stevenson Dkt. No. 87; Rossi I Dkt. No. 60) (“March 28 Order”), Plaintiffs Kim Stevenson, Howard Tarlow, and Stephen Rossi (“Plaintiffs”) and Defendants Gregory W. Becker, Daniel J. Beck, Eric A. Benhamou, John S. Clendening, Richard D. Daniels, Alison Davis, Roger F. Dunbar, Joel P. Friedman, Karen Hon, Jeffrey N. Maggioncalda, Beverly Kay Matthews, Mary J. Miller, Kate D. Mitchell, John F. Robinson, Garen K. Staglin, KPMG LLP, Benhamou Global Ventures, LLC, Fifth Era, LLC, Scale Venture Partners, Anthony DeChellis, Christopher Cooper, and Morgan Stanley & Co. LLC (collectively, “Defendants” and, together with Plaintiffs, the “Parties” and each, a “Party”), by and through their undersigned counsel, hereby stipulate as follows: WHEREAS, on April 10, 2023, Plaintiffs Kim Stevenson and Howard Tarlow filed a putative securities class action against certain Defendants in the Superior Court of California, County of Santa Clara, captioned Stevenson, et al. v. Becker, et al., No. 23CV413949 (the “Stevenson Action”); WHEREAS, on April 14, 2023, Plaintiff Stephen Rossi filed a putative securities class action in the Superior Court of California, County of Santa Clara alleging substantially similar claims against the same Defendants named in the Stevenson Action, and also naming as Defendants Benhamou Global Ventures, LLC, Fifth Era, LLC, and Scale Venture Partners, captioned Rossi v. Becker, et al., No. 23CV414120 (the “Rossi I Action”); WHEREAS, on February 15, 2024, Plaintiff Stephen Rossi filed a putative securities class action in the Superior Court of California, County of Santa Clara alleging substantially similar claims against Defendants Anthony DeChellis, Christopher Cooper, and Morgan Stanley & Co. LLC, captioned Rossi v. DeChellis, et al., No. 24CV431200 (the “Rossi II Action”) (together with the Stevenson and Rossi I Actions, the “State Actions”); WHEREAS, certain Defendants removed the State Actions to the District Court for the Northern District of California; WHEREAS, Plaintiffs filed motions to remand the Stevenson and Rossi I Actions back to state court (the “Remand Motions”), and the Parties to the Stevenson and Rossi I Actions briefed and argued those motions to remand before the Honorable Haywood S. Gilliam, Jr. (Stevenson, Dkt. Nos. 56, 66, 70, 77; Rossi I, Dkt. Nos. 39, 49, 50, 57); WHEREAS, on March 27, 2024, pursuant to a stipulation of all parties, Plaintiffs submitted an administrative motion to relate the Rossi II Action to the Stevenson and Rossi I Actions (Stevenson Dkt. No. 86), and, as of the date of this filing, the Court has not yet ruled on relatedness; WHEREAS, on March 28, 2024, this Court issued the March 28 Order, which denied Plaintiffs’ motions to remand the Stevenson and Rossi I Actions, and further held that “the interests of clarity would be best served by definitive guidance from the Ninth Circuit as to the recurring legal question of whether Section 22(a) of the 1933 Securities Act [(“1933 Act”)] bars removal of even actions ‘related to’ a bankruptcy action pursuant to Section 1452(a),” and thus directed the Parties to the Stevenson and Rossi I Actions to submit a stipulation and proposed order certifying an interlocutory appeal of the March 28 Order to the U.S. Court of Appeals for the Ninth Circuit pursuant to 28 U.S.C. § 1292(b) (the “Interlocutory Appeal”); WHEREAS, the Parties agree that staying the proceedings in district court in Stevenson and Rossi I pending the resolution of the forthcoming Interlocutory Appeal will best serve the interests of judicial economy, conservation of time and resources, and orderly management of Stevenson and Rossi I; WHEREAS, Plaintiff Rossi believes remand of the Rossi II Action to state court is appropriate on the same bases set forth in the Remand Motions in the Stevenson and Rossi I Actions, and Defendants in the Rossi II Action oppose remand; WHEREAS, Plaintiff Rossi and Defendants in the Rossi II Action agree that the March 28 Order shall be determinative of whether the Rossi II Action is remanded to state court unless the March 28 Order is reversed, vacated, or modified by the Interlocutory Appeal, in which case the determination of the remand issue by the U.S. Court of Appeals for the Ninth Circuit in the Interlocutory Appeal shall be determinative of whether the Rossi II Action is remanded to state court; WHEREAS, upon a ruling relating the Rossi II Action to the Stevenson and Rossi I Actions, Plaintiff Rossi and Defendants in the Rossi II Action anticipate submitting a stipulation, subject to Court approval, staying the proceedings in district court in the Rossi II Action pending determination of the Interlocutory Appeal; and WHEREAS, the Parties have met and conferred as directed by the Court in the March 28 Order and submit this stipulation and proposed order accordingly. NOW THEREFORE, the Parties hereby stipulate and agree as follows: 1. The Parties agree that the March 28 Order involves (i) a controlling question of law, (ii) as to which there are substantial grounds for difference of opinion, and (iii) that an immediate appeal may materially advance the litigation’s ultimate termination. 28 U.S.C. § 1292(b); In re Cement Antitrust Litig., 673 F.2d 1020, 1026 (9th Cir. 1982). First, whether this Court has removal jurisdiction is a controlling question of law. United States v. Woodbury, 263 F.2d 784, 787 (9th Cir. 1959) (describing as “fundamental” to a § 1292(b) analysis the question “whether a court to which a cause has been transferred has jurisdiction”). Second, this Court’s observations that “[c]ourts are divided on whether the removal bar of Section 22(a) trumps Section 1452(a)’s bankruptcy removal provision” and that “[t]he Ninth Circuit has yet to consider the issue,”1 evidences that there are substantial grounds for difference of opinion that the Ninth Circuit has not resolved. Finally, an immediate appeal of the March 28 Order “may materially advance the ultimate termination of the litigation” because the controlling issue is jurisdictional. See 28 U.S.C. § 1292(b); Cement Antitrust, 673 F.2d at 1026; Robbins Co. v. Lawrence Mfg. Co., 482 F.2d 426 (9th Cir. 1973). If the Ninth Circuit agrees with Plaintiffs that the 1 March 28 Order at 4 (citing Cobalt Partners, LP v. Sunedison, Inc., No. C 16-02263-WHA, 2016 WL 44

Free access — add to your briefcase to read the full text and ask questions with AI

Rossi v. DeChellis, (N.D. Cal. 2024).

Rossi v. DeChellis (Rossi v. DeChellis) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related