The Berger Trust v. Andrew Rees, Thomas Smach, Ronald Frasch, Charisse Ford Hughes, Beth Kaplan, Ian Bickley, Douglas J. Treff, Neeraj Tolmare, Anne Mehlman, Susan Healy, and Crocs, Inc.

Summary

The United States District Court for the District of Colorado grants the parties’ joint motion to stay a shareholder derivative action involving Crocs, Inc. The court administratively closes the case pending resolution of a related securities class action in the District of Delaware and requires a status report by May 5, 2026, or within 14 days after resolution of the related motion to dismiss, whichever is earlier.

Holdings

1. The String Cheese factors weigh in favor of staying the derivative action because both parties requested the stay, plaintiff was unlikely to suffer prejudice from the delay, defendants would face minimal burden, a stay would conserve judicial resources, and the remaining factors were neutral.
2. The court may administratively close a case under D.C.COLO.LCivR 41.2 when the case is stayed for an unknown or indefinite period, subject to reopening for good cause.

Questions Presented

1. Whether the court should stay the derivative action pending resolution of the motion to dismiss in the related Delaware securities class action.
2. Whether the court should administratively close the case during the indefinite stay pursuant to D.C.COLO.LCivR 41.2.

Disposition

other