Securities And Exchange Commission v. GLR Capital Management, LLC et al

Filing 73

Order by Hon. Lucy H. Koh granting 72 Stipulation for Stay of Civil Proceedings.(lhklc3, COURT STAFF) (Filed on 2/13/2013)

1 MARC J. FAGEL (Cal. Bar No. 154425) SHEILA E. O’CALLAGHAN (Cal. Bar No. 131032) 2 ocallaghans@sec.gov ROBERT J. DURHAM (Admitted to the New York Bar) 3 durhamr@sec.gov 4 Attorneys for Plaintiff SECURITIES AND EXCHANGE COMMISSION 5 44 Montgomery Street, Suite 2800 San Francisco, California 94104 6 Telephone: (415) 705-2500 Facsimile: (415) 705-2501 7 8 9 UNITED STATES DISTRICT COURT 10 NORTHERN DISTRICT OF CALIFORNIA 11 SAN JOSE DIVISION 12 13 SECURITIES AND EXCHANGE COMMISSION, 14 15 Case No. CV12-2663 (LHK) Plaintiff, vs. JOINT STIPULATION FOR STAY OF CIVIL PROCEEDINGS 16 GLR CAPITAL MANAGEMENT, LLC, GLR ADVISORS, LLC, JOHN A. GERINGER, 17 CHRISTOPHER A. LUCK, and KEITH E. RODE 18 19 Defendants and 20 GLR GROWTH FUND, L.P., Relief Defendant. 21 22 23 The parties hereby stipulate and agree that: 24 1. On May 24, 2012, the Securities and Exchange Commission (“Commission”) filed an 25 action against John A. Geringer, GLR Capital Management, LLC (“GLR Capital”), Geringer, Luck & 26 Rode LLC, and GLR Advisors, LLC (“GLR Advisors”) alleging violations of the federal securities 27 laws and also named GLR Growth Fund L.P. as a relief defendant. On October 1, 2012, Defendant 28 Geringer filed a document titled Response to Securities and Exchange Commission’s Complaint as to JOINT STIPULATION FOR STAY OF CIVIL PROCEEDINGS CV12-2663 (LHK) 1 Defendants GLR Capital Management, LLC[,] GLR Advisors, LLC, John A. Geringer and Relief 2 Defendant GLR Growth Fund, L.P. (Dkt. 38). On November 7, 2012, the Court ordered Defendants 3 GLR Capital and GLR Advisors and the Relief Defendant to obtain counsel and to file notices of 4 appearance by January 15, 2013. (Dkt. 43). Defendant Geringer filed a notice on January 15, 2013 5 informing the Court that Defendants GLR Capital and GLR Advisors and the Relief Defendant were 6 unable to obtain counsel. (Dkt. 48). As Defendants GLR Capital and GLR Advisors and Relief 7 Defendant GLR Growth Fund, L.P. have failed to plead or otherwise defend, they are in default. 8 9 10 11 2. Defendant Geringer, Luck & Rode LLC was dissolved on May 10, 2012. On December 21, 2012, the Commission filed a Notice of Voluntary Dismissal of Defendant Geringer, Luck & Rode LLC. (Dkt. 44). 3. On November 7, 2012, the Court held an initial case management conference with the 12 Commission and Defendant Geringer. (Dkt. 43). The Court issued an order setting deadlines for fact 13 and expert discovery, dispositive motions and a trial date. 14 4. On January 23, 2013, the Commission filed its Amended Complaint adding 15 Defendants Christopher A. Luck and Keith E. Rode. Defendants Luck and Rode filed Answers to the 16 Complaint on February 5, 2013 in which they asserted their Fifth Amendment rights not to be 17 witnesses against themselves. 18 5. On December 19, 2012, a Grand Jury indicted Geringer, Luck and Rode in the case 19 captioned United States of America v. John Geringer, Christopher Luck and Keith Rode, Case No. 20 CR 12 00888 LHK. The indictment alleges securities fraud in violation of 15 U.S.C. §§ 78j(b) and 21 78ff, and 17 C.F.R. § 240.10b-5 and 240.10b5-2, wire fraud in violation of 18 U.S.C. § 1343, and 22 mail fraud in violation of 18 U.S.C. § 1341, among other violations. The U.S. Attorney’s Office filed 23 a Notice of Related Case and on January 23, 2012, this Court ordered that the cases were related. 24 (Dkt. 53). Both cases are now before the Court. 25 6. The Commission, at the request of Defendants Luck and Rode, and with the 26 concurrence of Defendant Geringer, have agreed, subject to this Court’s approval, to a stay of this 27 civil action including discovery for six months from the date of entry of the Court’s Order and to 28 vacate all current deadlines and trial date. Provided, however, that the parties shall remain free to JOINT STIPULATION FOR STAY OF CIVIL PROCEEDINGS 2 CV12-2663 (LHK) 1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 NORTHERN DISTRICT OF CALIFORNIA 11 SAN JOSE DIVISION 12 13 SECURITIES AND EXCHANGE COMMISSION, 14 15 Case No. CV12-2663 (LHK) Plaintiff, vs. [PROPOSED] ORDER FOR STAY OF CIVIL PROCEEDINGS 16 GLR CAPITAL MANAGEMENT, LLC, GLR ADVISORS, LLC, JOHN A. GERINGER, 17 CHRISTOPHER A. LUCK, and KEITH E. RODE 18 19 Defendants and 20 GLR GROWTH FUND, L.P., Relief Defendant. 21 22 23 24 Having reviewed the parties’ Joint Stipulation for Stay of Civil Proceedings and considered 25 the records and files herein, IT IS HEREBY ORDERED: 26 1. That all further proceedings and timelines in this case are stayed for six months from 27 the date of entry of this Order, provided the parties shall remain free to engage in settlement 28 discussions to resolve, in whole or in part, the civil action, file motions and other matters relating to [PROPOSED] ORDER FOR STAY OF CIVIL PROCEEDINGS CV12-2663 (LHK) 1 settlement (such as consents to judgment and proposed judgments), apply to the Court for orders 2 relating to settlements, and that the Commission is free to file motions with this Court, if necessary, 3 to enforce compliance with all previous orders of this Court; 4 2. That the parties will not engage in civil discovery during the stay; 5 3. That this stay may only be shortened or extended by further order of this Court. 6 IT IS SO ORDERED. The Clerk shall administratively close the file. 7 February DATED this _____ day of ________________, 2013 13 8 9 _____________________________ LUCY H. KOH United States District Judge 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 [PROPOSED] ORDER FOR STAY OF CIVIL PROCEEDINGS 2 CV12-2663 (LHK)