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)

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