Securities and Exchange Commission v. Live Ventures Incorporated et al

Filing 159

ORDER Granting 158 Amended Stipulation to Continue Discovery. Motions due by 10/30/2024. Proposed Joint Pretrial Order due by 11/13/2024. Signed by Magistrate Judge Maximiliano D. Couvillier, III on 8/27/2024. (Copies have been distributed pursuant to the NEF - AMMi) Modified on 8/28/2024 (HAM).

1

8

Mark E. Ferrario (Nevada Bar No. 1625)
[e-mail]
Glenn F. Meier (Nevada Bar No. 06059)
[e-mail]
Daniel J. Wadley (pro hac vice)
[e-mail]
Nicholas P. Peterson (pro hac vice)
[e-mail]
GREENBERG TRAURIG, LLP
10845 Griffith Peak Drive, Suite 600
Las Vegas, NV 89135
Telephone: [phone]
Facsimile: [phone]

9

Attorneys for Defendants Live Ventures Incorporated and John Isaac a/k/a Jon Isaac

2
3
4
5
6
7

10

UNITED STATES DISTRICT COURT

11

DISTRICT OF NEVADA

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

SECURITIES AND EXCHANGE
COMMISSION,
vs.

Plaintiff,

LIVE VENTURES INCORPORATED;
JANONE INC. (f/k/a Appliance Recycling
Centers of America, Inc.); JOHN ISAAC
a/k/a JON ISAAC; KINGSTON
DIVERSIFIED HOLDINGS LLC; and
VIRLAND A. JOHNSON,

Case No. 2:21-cv-01433-JCM-MDC
AMENDED STIPULATION AND
PROPOSED ORDER TO CONTINUE
DISCOVERY
(Sixth Request)

Defendants.
Pursuant to Local Rule 26-3 and LR IA 6-1, Plaintiff Securities and Exchange
Commission (“SEC”), Defendants Live Ventures Incorporated and Jon Isaac a/k/a Jon Isaac
(collectively, the “Live Defendants”), Virland Johnson (“Mr. Johnson” and, together with the
SEC, and Live Defendants, the “Parties”), by and through their respective undersigned counsel
of record, hereby file this Amended Stipulation and Proposed Order to Continue Discovery
(Sixth Request) (this “Stipulation”) and stipulate, agree, and request that the Court enter an order
adjusting and continuing certain discovery deadlines set forth in the Court’s Order, dated March
-1STIPULATION AND PROPOSED ORDER TO CONTINUE DISCOVERY (Sixth Request)

1

21, 2024 (the “Order”) (ECF 133), so that expert depositions may be continued in light of certain

2

unexpected circumstances of one of the SEC’s experts.

3

As contemplated by LR 26-3, good cause exists to adjust the deadlines for this matter

4

because unexpected circumstances, including an unexpected family medical event for one of

5

the experts, prevent the Live Defendants and Mr. Johnson from completing expert discovery

6

within the current case deadlines. This is the Parties’ sixth request for an extension of the

7

discovery deadlines set forth in the Court’s initial Scheduling Order (ECF 85).

8
9
10
11
12
13
14
15
16
17

A. STATEMENT SPECIFYING THE DISCOVERY COMPLETED (LR 26-3(a))
The parties participated in an initial Rule 26(f) Conference in September 2022.
On October 24, 2022, the SEC served its Initial Rule 26(a) Disclosures. The SEC
subsequently produced the documents identified in its initial disclosures.
On October 28, 2022, the Live Defendants served their Initial Disclosures pursuant to
Federal Rule of Civil Procedure 26(a)(1).
On October 28, 2022, the JanOne Defendants served their Initial Disclosures pursuant
to Federal Rule of Civil Procedure 26(a).
On October 2, 2023, Defendant Kingston served its Initial Disclosures pursuant to
Federal Rule of Civil Procedure 26(a).

18

On May 20, 2024, fact discovery closed.

19

On June 17, 2024, the SEC and the Live Defendants exchanged expert disclosures and

20

reports.

21

On July 15, 2024, the SEC and the Live Defendants exchanged rebuttal expert reports.

22

B. DESCRIPTION OF THE DISCOVERY THAT REMAINS TO BE COMPLETED

23

(LR 26-3(b))

24

The Parties intend to take the depositions of the opposing parties’ respective expert

25

witnesses.

26
27
28

-2-

AMENDED STIPULATION AND PROPOSED ORDER TO CONTINUE DISCOVERY (Sixth Request)

1

C. REASON WHY REMAINING DISCOVERY CANNOT BE COMPLETED
WITHIN THE TIME LIMITS SET BY THE DISCOVERY PLAN (LR 26-3(c))

2

The Parties have been diligently participating in the discovery process, including expert

3

discovery, and have exchanged both initial and rebuttal expert reports. Following submission

4

of expert reports on June 17, 2024, and rebuttal reports on July 15, 2024, the parties negotiated

5

deposition dates and locations for the two SEC expert witnesses and Live’s expert witness. In

6

particular, the depositions of SEC expert witnesses Eugene Canjels and John Drum were set for

7

August 22 and 23, 2024, in Denver, Colorado, and the deposition of Live expert witness Todd

8

McKinnon was set for August 26, 2024, in Salt Lake City, Utah. The SEC has contemplated

9

that in addition to his own deposition, Mr. Drum, the SEC’s accounting expert, would attend

10

the deposition of Live’s accounting expert, Todd McKinnon.

11

However, on August 8, 2024, the SEC notified Live’s counsel that its expert witness

12

John Drum had twins born very prematurely, who have remained hospitalized, and that Mr.

13

Drum was no longer available for his noticed deposition. The parties then met and conferred

14

about an extension of the expert discovery cut-off and the Court’s other outstanding deadlines,

15

and ultimately determined that a 30-day extension was necessary to accommodate Mr. Drum’s

16

schedule.

17
18
19

D. PROPOSED SCHEDULE FOR COMPLETING ALL REMAINING
DISCOVERY (LR 26-3(d))
(a)

Expert Discovery Deadline: The deadline for the Parties to complete all expert

20

discovery, including the depositions of any experts, shall be extended from August 26, 2024, to

21

September 25, 2024.

22
23
24

(b)

Dispositive Motion Deadline: The deadline for the Parties to file their dispositive

motions shall be extended from September 30, 2024, to October 30, 2024.
(c)

Joint Pretrial Order: The deadline for the parties to file their joint pretrial order

25

shall be extended from October 14, 2024, to November 13, 2024. Pursuant to LR 26-1(b)(5),

26

in the event dispositive motions are filed, the date for filing the Joint Pretrial Order shall be

27
28

-3-

AMENDED STIPULATION AND PROPOSED ORDER TO CONTINUE DISCOVERY (Sixth Request)

1

suspended until thirty (30) days after the entry of a decision on the dispositive motion(s), or

2

upon further order of the Court.

3

Based on the foregoing Stipulation and good cause appearing, the Parties respectfully

4

request that the Court enter an order adopting the Parties’ amended proposed schedule for

5

completing all remaining discovery.

6

IT IS SO STIPULATED.

7
8
9

Dated this 26th day of August 2024.

10 SECURITIES AND EXCHANGE
COMMISSION
11
/s/ Ruth Pinkel
12 Ruth Pinkel (Cal. Bar #164470)
Robert Stillwell (Cal. Bar # 308630)
13 444 S. Flower Street, Suite 900
14 Los Angeles, California 90071
Attorneys for Plaintiff Securities and
15 Exchange Commission
16

Dated this 26th day of August 2024.
GREENBERG TRAURIG, LLP
/s/ Nicholas Peterson
Mark E. Ferrario (NV Bar #1625)
Glenn F. Meier (NV Bar #06059)
Daniel J. Wadley (pro hac vice)
Nicholas P. Peterson (pro hac vice)
10845 Griffith Peak Drive, Suite 600
Las Vegas, NV 89135
Attorneys for Defendants John Isaac a/k/a Jon
Isaac and Live Ventures Incorporated

17
18
19
20
21
22
23
24
25
26
27
28

-4-

AMENDED STIPULATION AND PROPOSED ORDER TO CONTINUE DISCOVERY (Sixth Request)

1
2
3
4
5
6
7
8
9
10

Dated this 26th day of August 2024.
/s/ Brent Baker
Brent Baker (pro hac vice forthcoming)
Elizabeth Stallard
60 E. South Temple, Suite 1200
Salt Lake City, UT 84111
[e-mail]
Attorney for Virland Johnson
IT IS SO ORDERED.
UNITED STATES MAGISTRATE JUDGE
8/27/24
DATED: _____________________________

11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

-5-

AMENDED STIPULATION AND PROPOSED ORDER TO CONTINUE DISCOVERY (Sixth Request)