Gupta v. Securities and Exchange Commission

Filing 26

ORDER: Defendant's time to answer is adjourned, sine die, and the entire matter is stayed pending further order of the Court. (Signed by Judge Jed S. Rakoff on 8/4/2011) (ab)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

-------------------------------------X

RAJAT K. GUPTA,

Plaintiff,
11 Civ. 1900 (JSR)
-v-

ORDER
SECURITIES AND EXCHANGE COMMISSION,
Defendant.

-------------------------------------X
JED S. RAKOFF, U.S.D.J.
After several adjournments agreed to by the Court,
defendant's Answer was due to be filed on August 3, 2011.
However, on that same date, defendant's counsel faxed to the
Court a two-page Agreement, signed by both parties and attached
hereto, that, when fully executed, will result in the dismissal
of this action as moot.

Accordingly, defendant's time to answer

is adjourned, sine die, and the entire matter is stayed pending
further order of the Court.
SO ORDERED.

Dated:

New York, New York
August 4, 2011

8/3/2011 6:31:02 PM

SEC

PAGE

3/004

Fax Server

AGREEMENT

WHEREAS, the Securities and Exchange Commission ("SEC'') has filed an
administrative and cease-and-desist proceeding alleging violations of the federal securities laws
· by Rajat Gupta ("Gupta"), In the Matter ofRajat K. Gupta, AP File No. 3-14279 (''the
Administrative Proceeding'').
·
WHEREAS, Gupta has filed an action in the U.S. District Court for the Southern District
ofNew York, Gupta v. SEC, 11-cv-1900 (S.DN.Y.) (the "Lawsuit"), challenging the institution·
of the Administrative Procee~ng as ~olative of his constitutional rights.
.

'

THEREFORE, in consideration of the promises made herein, the Parties agree to
dismiss both the Administrative Proceeding and the Lawsuit on the following tenns:
1.
The SEC will enter an Order Dismissing Proceedings, that dismisses the
Administrative Proceeding. The SEC and Gupta (collectively ''the Parties") agree that this
dismissal will not be on the merits of the allegations in the Order Instituting Proceedings but the
SEC agrees that it will not bring any administrative or cease-and-desist proceedings in the future .
against Gupta based on the factual all~gations in the Order Instituting Proceedings.
2.
The Parties agree that once the SEC issues the Order Dismissing Proceedings, the
Lawsuit is moot.
3.
The Parties will enter into a Joint Stipulation of Dismissal pursuant to Federal
Rule of Civil Procedure 41 (aXI )(A)(ii) in the Lawsuit that includes the following stipulations:
(a)

The SEC will not bring any administrative or cease-and-desist proceedings
in the future against Gupta based on the factual allegations in the Order
Instituting Proceedings.

(b)

Any future action against Gupta based on the factual allegations in the
Order Instituting Proceedings shall only be filed in the U.S. District Court
for the Southern District ofNew York. Should the SEC file any such
action, the SEC will designate it as related under Rule 13 of the Court's
Rules for the Division ofBusiness among District Judges to the other
Galleon cases presently pending before the Honorable Jed S. Rakoff.

(c).

.Gupta will not assert in any future action brought against him by the SEC
in U.S. District Court based on the same factual allegations in the Order
Instituting Proceedings, or on appeal from a judgment of the District
Court, that the SEC is precluded from instituting such an action, or that he
bas a defense in such action, because of (i) the SEC's institution of the
Administrative Proceedirig, (ii) the SEC's dismissal of the Administrative
Proceeding, or (iii) this A_greement

8/3/2011 6:31:02 PM

SEC

PAGE

4/004

Fax Server

4.
The Parties will file tfle Joint Stipulation of Dismissal in the Lawsuit dismissing
the Lawsuit as expeditiously as possible and within three business days of the SEC's entry of the
Order Dismissing ProCeedings.
\

5.
So long as the SEC complies.with the terms of this Agreement and the Joint
Stipulation ofDismissal, Gupta may not reflle the Lawsuit or bring any new lawsuit against the
SEC. its Commissioners, or its staff regarding the institution of the Administrative Proceeding.

6.

The Parties agree to bear their own attorneys' fees, costs and expenses.

IN WITNESS WHEREOF, the Parties, intending to be bound. have stipulated and agreed to the
foregoing.

F<fTHESEC:

t- .tJ-r

a.~ ·ll

~L-~~~--~--~----­

Richard M. Humes
Associate General Counsel

Date

~I
Date

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