In re Enovix Corporation Securities Litigation

Summary

The United States District Court for the Northern District of California held that discovery remains open during the pendency of defendants’ motion for partial judgment on the pleadings. The court concluded that the Private Securities Litigation Reform Act’s automatic discovery stay does not apply because the court had sustained the legal sufficiency of portions of the operative complaint and some portion of the case would proceed regardless.

Holdings

1. The PSLRA's automatic discovery stay does not apply when at least part of the operative complaint has survived motions to dismiss and defendants' partial motion for judgment on the pleadings will not dispose of the entire case.

Questions Presented

1. Whether the PSLRA's automatic discovery stay applies while defendants' motion for partial judgment on the pleadings is pending after some claims survived motions to dismiss.
2. Whether discovery should remain open where some portion of the case will proceed regardless of the outcome of the partial motion for judgment on the pleadings.

Disposition

other