Federal Trade Commission v. Paglia

Filing 22

ORDER Granting 21 Motion to Vacate Order to Show Cause and Hearing. Signed by Chief Judge Gloria M. Navarro on 4/23/15. (Copies have been distributed pursuant to the NEF - TR)

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JONATHAN E. NUECHTERLEIN
General Counsel
JOEL MARCUS
Director of Litigation
LESLIE RICE MELMAN
Assistant General Counsel for Litigation
IMAD D. ABYAD
Attorney
FEDERAL TRADE COMMISSION
600 Pennsylvania Ave., N.W.
Washington, DC 20580
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]
Attorneys for Petitioner Federal Trade Commission

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UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEVADA

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FEDERAL TRADE COMMISSION,
Petitioner,

Case No. 2:14-cv-01480-GMN-CWH

v.
RALPH PAGLIA,
Respondent.

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NOTICE OF FEDERAL TRADE COMMISSION
FOR WITHDRAWAL OF MOTION FOR ORDER TO SHOW CAUSE
AND MOTION TO VACATE ORDER TO SHOW CAUSE AND HEARING

AND ORDER THEREON

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The Federal Trade Commission (FTC or Commission) hereby withdraws its

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Motion for an Order to Show Cause (Dkt. 11), and moves this Court to vacate its Order

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to Show Cause (Dkt. 15) and the Show Cause Hearing scheduled for April 28, 2015.
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In support of its motion, the Commission avers as follows:

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1.

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On January 6, 2015, the FTC asked this Court to order Ralph Paglia to

show cause why he should not be held in contempt for disobeying this Court’s Order of
October 28, 2014, (Dkt. 9), which directed Mr. Paglia to respond—within 14 days of

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service—to two Civil Investigative Demands (CIDs) issued by the FTC on May 2 and

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June 18, 2014. 1

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2.

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As requested, this Court issued an Order to Show Cause on March 9, 2015

(Dkt. 12).

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The United States Marshal Service, which was directed to serve that order

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on Mr. Paglia, filed an “unexecuted” return of service on March 26, 2015 (Dkt. 13). The

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return of service showed that the Marshal Service had attempted, but failed, to serve

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Mr. Paglia on three occasions.

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On March 31, 2015, this Court re-issued the Order to Show Cause (OSC) at

the FTC’s request, scheduling a hearing for Tuesday, April 28, 2015. (Dkt. 15).
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The Marshal Service again attempted to serve the OSC on Mr. Paglia, but

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was unable to do so. It filed an “unexecuted” return of service of the OSC on April 17,

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2015 (Dkt. 17). The amended return of service filed on April 21, 2015 (Dkt. 18), details

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The CIDs required Mr. Paglia to provide documents, answer interrogatories, and give
oral testimony. They were duly issued in the course of a Commission investigation into
whether he participated in an alleged group boycott of TrueCar, Inc.—an automotive
marketing firm—in violation of Section 5 of the Federal Trade Commission Act, 15
U.S.C. § 45. Mr. Paglia failed to respond to the two CIDs, prompting the FTC to seek
the aid of this Court in enforcing the Commission process.
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the extensive, but unavailing, efforts that the Marshal Service has undertaken to find

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and serve Mr. Paglia.

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To allow it the time to consider its options in light of this inability to effectuate
service of process, the FTC hereby withdraws its motion for an order to show, and asks

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that this Court vacate its OSC of March 31, 2015, and the hearing scheduled for April

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28, 2015.

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Respectfully submitted,

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JONATHAN E. NUECHTERLEIN
General Counsel

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JOEL MARCUS
Director of Litigation

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LESLIE RICE MELMAN
Assistant General Counsel for Litigation

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/s/ Imad Abyad
IMAD D. ABYAD
Attorney

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FEDERAL TRADE COMMISSION
600 Pennsylvania Ave., N.W.
Washington, DC 20580
Tel.: [phone]
Fax: [phone]
Email: [e-mail]

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Dated: April 23, 2015.

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IT IS SO ORDERED.

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________________________________
Gloria M. Navarro, Chief Judge
United States District Court
DATED: 04/24/2015