Carnahan v. Baton Corporation Ltd. et al

Filing 13

ORDER terminating #12 Letter Motion to Adjourn Conference; terminating #12 Letter Motion for Extension of Time to File. This case is governed by special rules applicable to PSLRA, it should not have been scheduled for a conference. Please follow the statute. (Signed by Judge Colleen McMahon on 3/11/25) (yv)

Case 1:25-cv-00490-CM
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Document 12

Filed 03/10/25

212-451-9624

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United States District Court fo r Southern District of New York
Daniel Patrick Moynihan Un ited States Courthouse
500 Pearl St., Courtroom 24A, Chambers Room 2550
New York, NY 10007-1312
Re:

Wolf' ~opper LLP
845 Third Avenue
New York, NY 10022

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WOLFPOP
March 10, 2025

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Carnahan v. Baton Corp. Ltd. d/b/a Pump.Fun et al. , No. I :25-cv-00490 (CM) · )
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(BCM) (S.D. .Y.), Aguilar v. Baton Corp. Ltd. d/b/a Pump.Fun et al., No. 1:25-. / ~ ' t ~
cv-00880 (CM) (BCM) (S.D .N.Y.)
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Dear Judge McMahon:

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We represent Plaintiffs Kendall Carnahan and Diego Aguilar in the above captioned
matters. Pursuant to Southern Di strict of New York Local Rule 7.1 (e) and Your Honor's Individual c,1'Y
Practices and Procedures ("Indi vidual Rules"), we respectfully make this Letter Motion to (I)
Request an Adjournment of the Conferences Scheduled for April 10, 2025 and the Requirement to
Meet and Confer and Submit Civil Case Management Plans Sine Die in both cases, and (2)
Set/Reset the Lead Plaintiff Motion Deadline in Carnahan From March 18 , 2025 to the Lead

::~::::::tion Deadline in Aguilar of April 2, 2025

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These two matters are securities class actions. In summary, the complaints allege that
Defendant Baton Corporation Ltd. ("Baton") owns, controls, and does business as the website
Pump.Fun , through which it sold or solicited the sale of unregistered memecoin and/or token
securities. See, e.g. , Carnahan ECF No . 1, 1 4; Aguilar ECF No. I, 1 5. Both actions allege )
violations of Sections 5 and 12(a)(l) of the Securities Act of 1933 (" 1933 Act"), 15 U.S.C. §§ 77e
and 77l(a)(l ), against Baton for Baton's alleged sale and solicitation of the sale of unregistered
securities. Both actions al so allege vio lations of Section 15 of the 1933 Act, 15 U.S.C. § 770,
against Defendants Alon Cohen, Dylan Kerler, and Noah Bernhard Hugo Tweedale as control
persons of Baton. Carnahan ECF No. I, 11 I 04-119; Aguilar ECF No. I, 11 136-151.
The matters differ in that Carnahan alleges claims on behalf ofa proposed class of persons
who purchased a single unregistered security (the $PNUT Token), and Aguilar alleges claims on
behalf of all persons who purchased any unregistered securities that Pump.Fun sold or for which
Pump.Fun so licited the sale. Compare Carnahan ECF No. 1, 11 1, 96 and Aguilar ECF No. 1, 11
I, 128. The proposed Aguilar class includes the proposed Carnahan class.
As securities class actions, these matters are governed by the terms of the Private Securities
Litigation Reform Act ("PSLRA"), 15 U.S. C. § 77z-1 et seq, including the lead plaintiff
provisions. See 15 U.S.C. § 77z-1 (a)(3) . The complaint in Carnahan was tiled on January 16,
2025. The PSLRA required notice ofpendency of Carnahan was issued on January 17, 2025 . 1 The
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https ://www .accessnewswire. com/newsroom/en/business-and-pro fessio nal-services/pnut-in vestors-notice-wolfpopper-llp-and-burwick-law-announce-th-9702 76 .

New York I Puerto Rico I Washington, DC I Texas I Ill inois I Massachusetts

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WOLF POPPER
60-day deadline set by the PS LRA to seek appointment as lead plaintiff in Carnahan is March 18,
2025. See 15 U.S .C. § 77z-l (a)(3) (A)(i). The complaint in Aguilar was filed on January 30, 2025.
The PSLRA requ ired notice of pendency of Aguilar was issued on February I, 2025. 2 The 60-day
deadline set by the PSLRA to seek appointment as lead plaintiff in Aguilar is April 2, 2025. See
id; Teamsters Local 445 Freight Div. Pension Fund v. Bombardier Inc. , o. 05 Civ. 1898 (SAS),
2005 U.S. Dist. LEXIS 10780, at *8-9 (S.D.N.Y. June 1, 2005) (requiring republication of PSLRA
notice and new lead plaintiff motions when an amended complaint added new securities to the
class definition and expanded the class period because "[a]llowing plaintiffs in this case to proceed
without publi shing a new notice reflecting their additional claims would potentially exclude
qualified movants from the lead plaintiff selection process.").
Motion to Request an Adjo urnment of the Conferences Scheduled for April 10, 2025 and the
Requirement to Meet and Confer and Submit Civil Case Management Plans Sine Die
Plainti ffs request that the Court adjourn the conferences scheduled for April I 0, 2025 and
the requirement to meet and confer and submit Civil Case Management Plans sine die in both cases
for two reaso ns. First, all Defendants are believed to be residents and/or citizens of foreign
countries. See Carnahan ECF No. I,~~ 13-17 and ECF Nos. 7- IO ; Aguilar ECF No. I, ~~ 14-18
and ECF Nos. 9-12. Plaintiffs have taken steps to effectuate service of process on the defendants
in foreign countries pursuant to the Convention on the Service Abroad of Judicial and Extrajudicial
Documents in Civil or Com mercial Matters (the "Hague Service Convention"). However, service
has not yet been effected . As such, Plaintiff's Counsel respectfully submits that at this time it is
not possible to meet and confer with the Defendants concerning Civil Case Management Plans.
Second, these matters are securities class actions subject to the provisions of the PSLRA,
including the lead plaintiff provisions discussed above and the stay of discovery during the
pendency of a motion to dismiss (1 5 U.S.C. §77z-l(b)(l)). Plaintiffs respectfully submit that due
to these provis ions, the conferences and the requirements to meet and confer and submit Civil Case
Management Plans should be adjourned. It is unknown at this time whether any Defendants will
move to dismi ss. Further, Plaintiffs respectfully submit that it is the Court-appointed lead plaintiffs
that should cond uct any meet and confer conferences and negotiate Civil Case Management Plans.
See, e.g. , Cook v. Allergan PLC, No . I 8-cv-12089-CM (S.D.N.Y. Feb. 7, 2019) (initial conference
adjourned under similar PSLRA circumstances); Individual Rule IV.M .
For these reasons, Plaintiffs respectfully request that the Court adjourn the conferences
scheduled for April I 0, 202 5 in these matters and the requirement to meet and confer and submit
Civil Case Management Plans sine die.
Pursuant to Your Honor' s Individual Rule I.D.2:
The original deadline that the party wishes to adjourn or extend: The conferences scheduled
for April 10, 2025 and the requirement to meet and confer and submit Civil Case
Management Plans in both matters.
•

2

The number of prev ious requests for adjournment or extension: None.

https: //www.accessnewswire.com/newsroom/en/business-and-professional-services/pumpfun-token-purchasenotice-wolf-popper-llp-and-burwick-law-ann-978081.
New York I Puerto Rico I Washington , DC I Texas I Illinois I Massachusetts
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WOLF POPPER
Whether the adversary consents, and, if not, the reasons given by the adversary for refusing
to consent: Service on Defendants pursuant to the Hague Service Convention has not been
completed and counsel to Defendants have not appeared.
Whether the requested adjournment or extension affects any other scheduled dates: The
requested adjournment or extens ion does not affect any other scheduled dates.
Motion to Set/Reset the Lead Plaintiff Motion Deadline in Carnahan From March 18, 2025 to the
Lead Plaintiff Motion Deadl ine in Aguilar of April 2, 2025
These matters concern similar allegations. However, the matters are alleged on behalf of
different proposed classes of security purchasers. The claims in Carnahan are alleged on behalf of
a proposed class of persons who purchased the $PNUT Token. The claims in Aguilar are alleged
on behalf of a proposed class of persons who purchased any unregistered memecoin or token
securities that Pump .Fun sold or for wh ich Pump.Fun solicited the sale, which includes purchasers
of $PNUT Tokens (the proposed Carnahan class). The matters were filed on different days, the
PSLRA notices of pendency were issued approximately 2 weeks apart, and as such the matters
have PSLRA deadlines to seek appoi ntment as lead plaintiff approximately two weeks apart:
March 18, 2025 for Carnahan and April 2, 2025 for Aguilar.
Plaintiffs respectfully subm it that the Court should issue an order setting the deadline to
move for appointment as lead plaintiff in Carnahan as April 2, 2025 , the deadline to seek
appointment as lead plainti ff in the broader proposed Aguilar class. This will allow members of
the broadest class definition to seek appointment as lead plaintiff in one or both cases, and/or file
motions to consolidate the matters, at the same time. Judicial economy will also be served by
having the lead plaintiff and/or consolidation motions heard on the same schedule.
If the Court grants th is motio n, Plaintiffs ' counsel will issue an updated PSLRA notice
advising the proposed class in Carnahan of the new PSLRA lead plaintiff motion deadline.
Pursuant to Your Honor's Individual Rule 1.0.2:
The original deadli ne that the party wishes to adjourn or extend: The PSLRA lead plaintiff
motion deadline of March 18, 2025 for the Carnahan matter.
The number of prev ious requests for adjournment or extension: None.
Whethe r the adversary consents, and, if not, the reasons given by the adversary for refusing
to consent: Service on Defendants pursuant to the Hague Service Convention has not been
comp leted and counsel to Defendants have not appeared.
Whether the requested ad journment or extension affects any other scheduled dates: The
requested adjournment would impact the schedule for lead plaintiff briefing in Carnahan .
If the request is granted, and pursuant to Your Honor's Individual Rule IV.M, oppositions
to lead plaintiff motions in both Carnahan and Aguilar will be due 14 days after April 2,
202 5, or April 16, 2025.

New York I Puerto Rico I Washington , DC I Texas J lll, nois I Massachusetts

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WOLF POPPER
Thank you fo r your attention to these matters.
Respectfull y,
Isl Chet B. Waldman

Chet B. Waldman

New York I Puerto Rico I Washington, DC I Texas I Illinois I Massachusetts

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