Veloso v. John et al

Filing 79

ORDER Denying 77 Proposed Voluntary Dismissal. Signed by Judge Phyllis J. Hamilton on 09/28/2016. (pjhlc2S, COURT STAFF) (Filed on 9/28/2016)

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1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 Case No. 15-cv-04625-PJH 8 IN RE: ROCKET FUEL INC. 9 DERIVATIVE LITIGATION 10 ORDER DENYING PROPOSED VOLUNTARY DISMISSAL Re: Dkt. No. 77 United States District Court Northern District of California 11 12 13 On August 26, 2016, this court granted defendants’ motion to dismiss the 14 complaint in this shareholder derivative action for failure to comply with the particularized 15 pleading requirements of Federal Rule of Civil Procedure 23.1. Dkt. 75. The order 16 provided plaintiffs leave to file an amended complaint, which was due on September 21. 17 Id. at 14. 18 On September 21, instead of filing an amended complaint per the court’s order, 19 plaintiffs filed a request to voluntarily dismiss the action without prejudice. See Dkt. 77 20 (“Notice and [Proposed] Order Regarding Voluntary Dismissal”). As this is a derivative 21 shareholder action, voluntary dismissal under Rule 41(a)(1) is inappropriate. See Fed. R. 22 Civ. P. 23.1(c) (requiring court approval for voluntary dismissal). Moreover, nominal 23 24 defendant Rocket Fuel opposes the plaintiffs’ request unless dismissal is with prejudice. Dkt. 78. The court therefore DENIES plaintiffs’ request to voluntarily dismiss the action 25 without prejudice. 26 The court further ORDERS the plaintiffs to file an amended complaint by October 27 28 5. If the plaintiffs do not comply with the court’s order by that date, their inaction will 1 constitute grounds for a dismissal with prejudice under Federal Rule of Civil Procedure 2 41(b). Alternatively, if the plaintiffs do not intend to amend their complaint, they may 3 stipulate to a dismissal of this action with prejudice. 4 IT IS SO ORDERED. 5 Dated: September 28, 2016 6 7 8 __________________________________ PHYLLIS J. HAMILTON United States District Judge 9 10 United States District Court Northern District of California 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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