Opinion
1:21-cv-08657-VM; 1:21-cv-08733-VM Master 1:21-cv-04323
11-03-2021
SHAOXUAN ZHANG, derivatively on behalf of ATERIAN, INC., Plaintiff, v. YANIV SARIG, FABRICE HAMAIDE, ARTURO RODRIGUEZ, BARI A. HARLAM, WILLIAM KURTZ, GREG B. PETERSEN, and AMY VON WALTER, Defendants, and ATERIAN, INC., Nominal Defendant. MICHAEL SHELLER, Derivatively on behalf of ATERIAN, INC., Plaintiff, v. YANIV SARIG, FABRICE HAMAIDE, GREG B. PETERSEN, BARI A. HARLAM, AMY VON WALTER, AND WILLIAM KURTZ, Defendants, -and-ATERIAN, INC., a Delaware corporation, Nominal Defendant.
ORDER DECONSOLIDATING SHAREHOLDER DERIVATIVE ACTIONS FROM RELATED SECURITIES CLASS ACTION, REOPENING DERIVATIVE ACTIONS, AND CONSOLIDATING DERIVATIVE ACTIONS
VICTOR MARRERO U.S.D.J.
Upon review of letter application (the “Letter”) by counsel for plaintiffs Shaoxuan Zhang and Michael Sheller in the above-captioned shareholder derivative actions, captioned Zhang v. Aterian, Inc., et al., Case No. 1:21-cv-08657 (the “Zhang Action”) and Sheller v. Aterian, Inc., et al., Case No. 1:21-cv-08733 (the “Sheller Action”), seeking, inter alia, deconsolidation of the Zhang Action and the Sheller Action from a related securities class action, captioned Nolff, et al. v. Aterian, Inc., et al., Case No. 1:21-cv-04323 (the “Securities Class Action”); and after due deliberation thereon; this Court determines that the legal and factual bases set forth in the Letter establish just cause for the deconsolidation of the Zhang Action and the Sheller Action from the Securities Class Action. The Parties must coordinate discovery and other pretrial proceedings to the greatest extent possible in these Actions.
Furthermore, upon consideration of the Letter's request that the Zhang Action and the Sheller Action be consolidated for all purposes into a consolidated derivative action; and after due deliberation thereon, having reviewed the complaints and other papers filed with the Court in the Zhang Action and the Sheller Action; this Court determines that in all material respects the papers describe substantially similar underlying events arising out of the same or similar operative facts, and that the parties in the Zhang Action and the Sheller Action are substantially the same parties, establishing just cause for the consolidation of the Zhang Action and the Sheller Action into a consolidated derivative action. Accordingly, it is HEREBY ORDERED THAT:
1. The Zhang Action, captioned Zhang v. Aterian, Inc., et al., Case No. 1:21-cv-08657, is hereby deconsolidated from the Securities Class Action, captioned Nolff, et al. v. Aterian, Inc., et al., Case No. 1:21-cv-04323;
2. The Zhang Action, captioned Zhang v. Aterian, Inc. et al., Case No. 1:21-cv-08657, is hereby reopened as an active matter before the Court;
3. The Sheller Action, captioned Sheller v. Aterian, Inc., et al., Case No. 1:21-cv-08733, is hereby deconsolidated from the Securities Class Action, captioned Nolff, et al. v. Aterian, Inc., et al., Case No. 1:21-cv-04323;
4. The Sheller Action, captioned Sheller v. Aterian, Inc., et al., Case No. 1:21-cv-08733, is hereby reopened as an active matter before the Court for the limited purpose of the entry of this Order;
5. The above-captioned Zhang Action and Sheller Action are consolidated for all pretrial purposes;
6. All filings in connection with the consolidated derivative action shall be docketed against the lower numbered case, Case No. 1:21-cv-08657; and
7. Following the consolidation of the Zhang Action and the Sheller Action, the referenced higher numbered case, 1:21-cv-08733, shall be closed and removed from the Court's docket.
SO ORDERED: