Opinion
20-cv-07835-JSW
02-27-2024
YORK COUNTY ON BEHALF OF THE COUNTY OF YORK RETIREMENT FUND, Plaintiff, v. HP INC., et al., Defendants.
ORDER REQUIRING ADDITIONAL BRIEFING RE HABELT V. IRHYTHM TECHNOLOGIES, INC., 83 F.4TH 1162 (9TH CIR. 2023) Re: Dkt. No. 76
JEFFREY S. WHITE UNITED STATES DISTRICT JUDGE
Defendants HP, Inc., Dion Weisler, Catherine Lesjak, Enrique Lores, and Richard Bailey filed a renewed motion to dismiss the Complaint in this action, which remains pending before the Court. On October 12, 2023, Defendants filed a Statement of Recent Decision alerting the Court to the Ninth Circuit's ruling in Habelt v. iRhythm Technologies, Inc., 83 F.4th 1162 (2023), decided after briefing on the renewed motion was completed. Lead Plaintiff Maryland Electrical Industry Pension Fund has not had an opportunity to respond.
In Habelt, the Ninth Circuit appears to announce a new rule that a plaintiff who files the initial complaint in a securities putative class action is extinguished as a party if, after a different plaintiff is selected as lead under the PSLRA, the plaintiff's particular claims are not referenced in the operative complaint. 83 F.4th at 1166; see id. at 1169 (“[T]he majority appears to create a new rule that a litigant's name must be specifically listed in the body of the operative complaint to be considered a party, regardless of the history of the litigation.”) (Bennett, J., dissenting).
Here, one of the issues raised by Defendants' motion is whether York County, the initial plaintiff, remains a party to the action. Accordingly, the Court ORDERS supplemental briefing from the parties regarding the application of Habelt to York County's status in this proceeding. The parties should address whether the Court's interpretation of Habelt set forth above is correct and whether Habelt mandates a finding that York County's party status has been extinguished.
The parties shall submit their briefs, no more than seven (7) pages each, by 5:00 p.m. on Friday, March 8, 2024. Unless the Court determines further briefing is necessary, opposition or reply briefs will not be permitted.
IT IS SO ORDERED.