Rossi v. DeChellis

CourtDistrict Court, N.D. California
DecidedApril 11, 2024
Docket4:24-cv-01674
StatusUnknown

This text of Rossi v. DeChellis (Rossi v. DeChellis) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

1 Daniel C. Girard (SBN 114826) dgirard@girardsharp.com 2 Adam E. Polk (SBN 273000) apolk@girardsharp.com 3 Jordan Elias (SBN 228731) 4 jelias@girardsharp.com Sean P. Greene (SBN 328718) 5 sgreene@girardsharp.com GIRARD SHARP LLP 6 601 California Street, Suite 1400 San Francisco, CA 94108 7 Telephone: (415) 981-4800 8 Facsimile: (415) 981-4846 9 Attorneys for Plaintiffs Kim Stevenson and Howard Tarlow 10 UNITED STATES DISTRICT COURT 11 NORTHERN DISTRICT OF CALIFORNIA 12 KIM STEVENSON, et al., Case No. 23-cv-02277-HSG 13 Plaintiff, STIPULATION AND ORDER 14 REGARDING CERTIFICATION OF v. ORDER DENYING MOTIONS FOR 15 REMAND FOR APPEAL AND GREGORY W. BECKER, et al., 16 CORRESPONDING STAY OF PROCEEDINGS 17 Defendants. Date: April 16, 2024 18 Time: 2:00 p.m. Judge: Haywood S. Gilliam, Jr. 19 20 STEPHEN ROSSI, et al., Case No. 23-cv-02335-HSG 21 Plaintiffs, 22 v. 23 24 GREGORY W. BECKER, et al., 25 Defendants. 26 27 [additional caption on following page] 1 STEPHEN ROSSI, et al., Case No. 24-cv-01674-HSG 2 Plaintiffs, 3 v. 4 ANTHONY DECHELLIS, et al., 5 Defendants. 6 7 8 Pursuant to Civil Local Rule 7-12 and the Court’s March 28, 2024 Order Denying Motions to 9 Remand, (Stevenson Dkt. No. 87; Rossi I Dkt. No. 60) (“March 28 Order”), Plaintiffs Kim Stevenson, 10 Howard Tarlow, and Stephen Rossi (“Plaintiffs”) and Defendants Gregory W. Becker, Daniel J. Beck, 11 Eric A. Benhamou, John S. Clendening, Richard D. Daniels, Alison Davis, Roger F. Dunbar, Joel P. 12 Friedman, Karen Hon, Jeffrey N. Maggioncalda, Beverly Kay Matthews, Mary J. Miller, Kate D. 13 Mitchell, John F. Robinson, Garen K. Staglin, KPMG LLP, Benhamou Global Ventures, LLC, Fifth Era, 14 LLC, Scale Venture Partners, Anthony DeChellis, Christopher Cooper, and Morgan Stanley & Co. LLC 15 (collectively, “Defendants” and, together with Plaintiffs, the “Parties” and each, a “Party”), by and 16 through their undersigned counsel, hereby stipulate as follows: 17 WHEREAS, on April 10, 2023, Plaintiffs Kim Stevenson and Howard Tarlow filed a putative 18 securities class action against certain Defendants in the Superior Court of California, County of Santa 19 Clara, captioned Stevenson, et al. v. Becker, et al., No. 23CV413949 (the “Stevenson Action”); 20 WHEREAS, on April 14, 2023, Plaintiff Stephen Rossi filed a putative securities class action in 21 the Superior Court of California, County of Santa Clara alleging substantially similar claims against the 22 same Defendants named in the Stevenson Action, and also naming as Defendants Benhamou Global 23 Ventures, LLC, Fifth Era, LLC, and Scale Venture Partners, captioned Rossi v. Becker, et al., No. 24 23CV414120 (the “Rossi I Action”); 25 WHEREAS, on February 15, 2024, Plaintiff Stephen Rossi filed a putative securities class action 26 in the Superior Court of California, County of Santa Clara alleging substantially similar claims against 27 Defendants Anthony DeChellis, Christopher Cooper, and Morgan Stanley & Co. LLC, captioned Rossi 1 v. DeChellis, et al., No. 24CV431200 (the “Rossi II Action”) (together with the Stevenson and Rossi I 2 Actions, the “State Actions”); 3 WHEREAS, certain Defendants removed the State Actions to the District Court for the Northern 4 District of California; 5 WHEREAS, Plaintiffs filed motions to remand the Stevenson and Rossi I Actions back to state 6 court (the “Remand Motions”), and the Parties to the Stevenson and Rossi I Actions briefed and argued 7 those motions to remand before the Honorable Haywood S. Gilliam, Jr. (Stevenson, Dkt. Nos. 56, 66, 8 70, 77; Rossi I, Dkt. Nos. 39, 49, 50, 57); 9 WHEREAS, on March 27, 2024, pursuant to a stipulation of all parties, Plaintiffs submitted an 10 administrative motion to relate the Rossi II Action to the Stevenson and Rossi I Actions (Stevenson Dkt. 11 No. 86), and, as of the date of this filing, the Court has not yet ruled on relatedness; 12 WHEREAS, on March 28, 2024, this Court issued the March 28 Order, which denied Plaintiffs’ 13 motions to remand the Stevenson and Rossi I Actions, and further held that “the interests of clarity 14 would be best served by definitive guidance from the Ninth Circuit as to the recurring legal question of 15 whether Section 22(a) of the 1933 Securities Act [(“1933 Act”)] bars removal of even actions ‘related 16 to’ a bankruptcy action pursuant to Section 1452(a),” and thus directed the Parties to the Stevenson and 17 Rossi I Actions to submit a stipulation and proposed order certifying an interlocutory appeal of the 18 March 28 Order to the U.S. Court of Appeals for the Ninth Circuit pursuant to 28 U.S.C. § 1292(b) (the 19 “Interlocutory Appeal”); 20 WHEREAS, the Parties agree that staying the proceedings in district court in Stevenson and 21 Rossi I pending the resolution of the forthcoming Interlocutory Appeal will best serve the interests of 22 judicial economy, conservation of time and resources, and orderly management of Stevenson and Rossi 23 I; 24 WHEREAS, Plaintiff Rossi believes remand of the Rossi II Action to state court is appropriate 25 on the same bases set forth in the Remand Motions in the Stevenson and Rossi I Actions, and Defendants 26 in the Rossi II Action oppose remand; 27 1 WHEREAS, Plaintiff Rossi and Defendants in the Rossi II Action agree that the March 28 Order 2 shall be determinative of whether the Rossi II Action is remanded to state court unless the March 28 3 Order is reversed, vacated, or modified by the Interlocutory Appeal, in which case the determination of 4 the remand issue by the U.S. Court of Appeals for the Ninth Circuit in the Interlocutory Appeal shall be 5 determinative of whether the Rossi II Action is remanded to state court; 6 WHEREAS, upon a ruling relating the Rossi II Action to the Stevenson and Rossi I Actions, 7 Plaintiff Rossi and Defendants in the Rossi II Action anticipate submitting a stipulation, subject to Court 8 approval, staying the proceedings in district court in the Rossi II Action pending determination of the 9 Interlocutory Appeal; and 10 WHEREAS, the Parties have met and conferred as directed by the Court in the March 28 Order 11 and submit this stipulation and proposed order accordingly. 12 NOW THEREFORE, the Parties hereby stipulate and agree as follows: 13 1. The Parties agree that the March 28 Order involves (i) a controlling question of law, (ii) 14 as to which there are substantial grounds for difference of opinion, and (iii) that an immediate appeal 15 may materially advance the litigation’s ultimate termination. 28 U.S.C. § 1292(b); In re Cement 16 Antitrust Litig., 673 F.2d 1020, 1026 (9th Cir. 1982). First, whether this Court has removal jurisdiction 17 is a controlling question of law. United States v. Woodbury, 263 F.2d 784, 787 (9th Cir. 1959) 18 (describing as “fundamental” to a § 1292(b) analysis the question “whether a court to which a cause has 19 been transferred has jurisdiction”). Second, this Court’s observations that “[c]ourts are divided on 20 whether the removal bar of Section 22(a) trumps Section 1452(a)’s bankruptcy removal provision” and 21 that “[t]he Ninth Circuit has yet to consider the issue,”1 evidences that there are substantial grounds for 22 difference of opinion that the Ninth Circuit has not resolved. Finally, an immediate appeal of the March 23 28 Order “may materially advance the ultimate termination of the litigation” because the controlling 24 issue is jurisdictional. See 28 U.S.C. § 1292(b); Cement Antitrust, 673 F.2d at 1026; Robbins Co.

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Rossi v. DeChellis, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossi-v-dechellis-cand-2024.