Opinion
2:21-cv-01004-GMN-BNW
04-27-2023
IN RE CLEANSPARK, INC. DERIVATIVE LITIGATION, This Document Relates to: ALL ACTIONS.
MARK J. CONNOT (10010) COLLEEN E. MCCARTY (13186) FOX ROTHSCHILD LLP Liaison Counsel for Defendants MICHAEL VAN RIPER (Pro Hac Vice) NATALIE SHKOLNIK (Pro Hac Vice) AARI ITZKOWITZ (Pro Hac Vice) JAY AUSLANDER (Pro Hac Vice) WILK AUSLANDER LLP Counsel for Defendants LEVERTY & ASSOCIATES LAW CHTD PATRICK R. LEVERTY Liaison Counsel for Plaintiffs THE BROWN LAW FIRM, P.C. Timothy Brown Co-Lead Counsel for Plaintiffs THE ROSEN LAW FIRM, P.A. Phillip Kim Co-Lead Counsel for Plaintiffs
MARK J. CONNOT (10010) COLLEEN E. MCCARTY (13186) FOX ROTHSCHILD LLP Liaison Counsel for Defendants
MICHAEL VAN RIPER (Pro Hac Vice) NATALIE SHKOLNIK (Pro Hac Vice) AARI ITZKOWITZ (Pro Hac Vice) JAY AUSLANDER (Pro Hac Vice) WILK AUSLANDER LLP Counsel for Defendants
LEVERTY & ASSOCIATES LAW CHTD PATRICK R. LEVERTY Liaison Counsel for Plaintiffs
THE BROWN LAW FIRM, P.C. Timothy Brown Co-Lead Counsel for Plaintiffs
THE ROSEN LAW FIRM, P.A. Phillip Kim Co-Lead Counsel for Plaintiffs
JOINT STIPULATION AND ORDER SETTING BRIEFING SCHEDULE FOR DEFENDANTS' MOTION TO DISMISS
Plaintiffs Andrea Ciceri and Mark Perna (“Plaintiffs”), derivatively on behalf of Nominal Plaintiff CleanSpark, Inc. (“CleanSpark”) and Defendants Zachary K. Bradford, Lori L. Love, S. Matthew Schultz, Larry McNeill, Thomas L. Wood, Roger P. Beynon (the “Individual Defendants”), and Nominal Defendant CleanSpark (together with the Individual Defendants, “Defendants”) (collectively, with Plaintiffs, the “Parties”), by and through their undersigned counsel, hereby enter into the following stipulation and proposed order:
The Six Derivative Actions
WHEREAS, on May 26, 2021, plaintiff Andrea Ciceri filed a shareholder derivative action on behalf of nominal defendant CleanSpark in the United States District Court for the District of Nevada, captioned Ciceri v. Bradford, et al., Case No. 2:21-cv-01004-GMN-BNW (“Ciceri”). Ciceri was assigned to this Court; and
WHEREAS, on June 22, 2021, plaintiff Mark Perna filed a second shareholder derivative action on behalf of nominal defendant CleanSpark in the United States District Court for the District of Nevada, captioned Perna v. Bradford, et al., Case No. 2:21-cv-01181-GMN-BNW (“Perna”). Perna was also assigned to this Court; and
WHEREAS, on June 29, 2021, this Court consolidated Ciceri and Perna into the abovecaptioned action (the “Consolidated Action”) and designated the complaint filed in Ciceri as the operative complaint pursuant to a Joint Stipulation and Order Consolidating Related Actions and Appointing Co-Lead Counsel (the “Consolidation Order”); and
WHEREAS, on February 24, 2023, plaintiff Nicholas Iraci filed a third shareholder derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court of the State of Nevada in and for Clark County, captioned Iraci v. Bradford, et al., Case No. A-23-866172-C (“Iraci”); and
WHEREAS, on February 28, 2023, defendant S. Matthew Schultz (“Schultz”) filed a Petition for Removal and Notice of Petition for Removal, removing Iraci to the United States District Court for the District of Nevada. Iraci is now pending in the United States District Court for the District of Nevada before the Honorable Jennifer A. Dorsey, captioned Iraci v. Bradford, et al., Case No. 2:23-cv-00315-JAD-NJK. On March 6, 2023, defendant Schultz filed a Notice of Related Case, requesting that Iraci be transferred to this Court and added to the Consolidated Action; and
WHEREAS, on March 1, 2023, plaintiff Eric Atanasoff filed a fourth shareholder derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court of the State of Nevada in and for Clark County, captioned Atanasoff v. Bradford, et al., Case No. A-23-866492-C (“Atanasoff”); and
WHEREAS, on March 7, 2023, defendant Schultz filed a Petition for Removal and Notice of Petition for Removal, removing Atanasoff to the United States District Court for the District of Nevada. Atanasoff is now pending in the United States District Court for the District of Nevada before the Honorable Anne R. Traum, captioned Atanasoff v. Bradford, et al., Case No. 2:23-cv-00358-ART-BNW. On March 9, 2023, defendant Schultz filed a Notice of Related Case, requesting that Atanasoff be transferred to this Court and added to the Consolidated Action; and
WHEREAS, on February 21, 2013, plaintiff Brandon Smith filed a shareholder derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court of the State of Nevada in and for Clark County, captioned Smith v. Bradford, et al., Case No. A-23-866051-C (“Smith”); and
WHEREAS, on March 23, 2023, Defendants filed a Petition for Removal and Notice of Removal, removing Smith to the United States District Court for the District of Nevada. Smith is now pending in the United States District Court for the District of Nevada before this Court, captioned Smith v. Bradford, et al., Case No. 2:23-cv-00445-GMN-BNW. On March 24, 2023, Defendants filed a Notice of Related Case, requesting that Smith be added to the Consolidated Action; and
WHEREAS, on March 8, 2023, plaintiff Travis France filed a shareholder derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court of the State of Nevada in and for Clark County, captioned France v. Bradford, et al., Case No. A-23-866925-C (“France” and together with the Iraci, Atanasoff, Smith, and the Consolidated Action, the “Six Derivative Actions”); and
WHEREAS, on March 23, 2023, Defendants filed a Petition for Removal and Notice of Removal, removing France to the United States District Court for the District of Nevada. France is also now pending in the United States District Court for the District of Nevada before this Court, captioned France v. Bradford, et al., Case No. 2:23-cv-00444-GMN-NJK. On March 24, 2023, Defendants filed a Notice of Related Case, requesting that France be added to the Consolidated Action; and
WHEREAS, on March 24, 2023, Defendants filed a Motion to Consolidate in the Consolidated Action, with notifications for Iraci, Atanasoff, Smith, and France, requesting that those cases be consolidated with the Consolidated Action before this Court; and
WHEREAS, between March 30, 2023 and April 6, 2023, plaintiffs in Iraci, Atanasoff, Smith, and France all filed motions to remand those actions back to state court; and
This Action
WHEREAS, on April 12, 2023, after meeting and conferring extensively, the Parties submitted a joint Stipulation and [proposed] Order Extending Time to Respond to Complaint (the “Stipulation”) agreeing to extend the time to respond to the Complaint until April 20, 2023, which the Court subsequently endorsed; and
WHEREAS, on April 20, 2023, Defendants moved to dismiss the Complaint; and
WHEREAS, given the crowded briefing schedules in the Six Derivative Actions, the Parties agree to extend the deadline for Plaintiff to oppose Defendants' motion to dismiss the complaint until on or before May 22, 2023; and
WHEREAS, given the crowded briefing schedules in the Six Derivative Actions, the Parties agree to extend the deadline for Defendants to reply in support of their motion to dismiss the complaint until on or before June 7, 2023.
NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by the Parties hereto, through their undersigned counsel, subject to the approval of the Court, as follows:
1. Plaintiff's deadline to oppose Defendants' motion to dismiss the complaint is extended until on or before May 22, 2023.
2. Defendants' deadline to reply in support of their motion to dismiss the complaint is extended until on or before June 7, 2023.
3. Other than as agreed herein, the Parties reserve all rights.
ORDER
IT IS SO ORDERED.