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  • New York Appellate Court Holds That PSLRA Discovery Stay Applies To Securities Act Actions Initiated In New York State Court

    On November 2, 2023, the New York Appellate Division, First Department, held that the automatic discovery stay in the Private Securities Litigation Reform Act (“PSLRA”) applies to actions brought in New York state court during the pendency of a motion to dismiss, although not during any interlocutory appeal from the denial of such a motion.  Camelot Event Driven Fund v. Morgan Stanley & Co., —N.Y.S.3d—, 2023 WL 7198938 (1st Dep’t Nov. 2, 2023).  Prior to this ruling, New York state trial courts had divided on the question of whether the PSLRA stay applies only to actions filed in federal court or also to actions filed in state court.  This decision resolves that split within the First Department, which includes New York County.
    Category : Discovery
  • New York State Court Holds PSLRA Bars Discovery In State Securities Act Cases Pending A Motion To Dismiss

    On August 7, 2019, New York State Supreme Court Justice Andrew Borrok issued a stay of discovery, pending resolution of a motion to dismiss, in a putative class action asserting claims under the Securities Act of 1933.  In re Everquote, Inc. Sec. Litig., Index No. 651177/2019, 2019 WL 3686065 (Sup. Ct. N.Y. Cnty. Aug. 7, 2019).  Justice Borrok held that the automatic discovery stay under the Private Securities Litigation Reform Act of 1995 (“PSLRA”) applied to Securities Act claims brought in state court.
    Category : Discovery
  • New York Court Of Appeals Holds That The Common Interest Doctrine Protects Only Communications Relating To Pending Or Anticipated Litigation

    On June 9, 2016, the New York Court of Appeals held that New York law does not exempt from discovery attorney-client privileged communications shared by parties that have a common legal interest, unless the communications relate to either pending or anticipated litigation.  Ambac, et al. v. Countrywide Home Loans, Inc., et al., 2016 WL 3188989 (N.Y. Jan. 9, 2016).  

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    Category : Discovery