Opinion
Case No. 8:04-cv-919-T-23EAJ.
October 28, 2005
ORDER
Liquidmetal Technologies, Inc. ("Liquidmetal") moves (Doc. 60) to stay discovery in a shareholders' derivative state-court action ("the state action"). Liquidmetal argues that discovery in the state action will circumvent the automatic stay provisions of the Private Securities Litigation Reform Act of 1995 ("PSLRA") and therefore should be stayed under the Securities Litigation Uniform Standards Act of 1998 ("SLUSA").
Despite Liquidmetal's characterization of the state action as a "tag along" action (Doc. 60 at 3), the state action and the case at hand consist of separate, independent claims with different plaintiffs represented by different counsel. Further, the plaintiffs in the state action offered Liquidmetal a stipulated confidentiality order to ensure the protection of any discovery obtained in the state action. Finally, Liquidmetal filed this motion to stay only nine days before the court-ordered discovery production deadline in the state action.
Liquidmetal fails to make a proper showing that discovery in the state action will circumvent the PSLRA. Darquea v. ITT Educ. Servs., Inc., No. 1:04CV0380-DFH-TAB, 2005 WL 280345, at *10-11 (S.D. Ind. Feb 2, 2005) (refusing a discovery stay and finding no circumvention of the PSLRA on similar facts). Accordingly, Liquidmetal's "Motion to Stay Discovery in Related State Court Action" (Doc. 60) is DENIED.
ORDERED.