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Atanasoff v. Bradford — Entry #23: ORDER APPROVING ECF No

Case: Atanasoff v. Bradford nvd · 2:23-cv-00358

filed March 07, 2023

What this document is

Docket entry #23 · filed April 21, 2023

ORDER APPROVING ECF No. 21 Stipulation to Set Briefing Schedule for Motion to Dismiss - NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by the Parties hereto, through their undersigned counsel, subject to the approval of the Court , as follows: 1. Plaintiff's deadline to oppose any motion to dismiss the Complaint that Defendants file is extended until on or before June 5, 2023 (6/5/2023). 2. Defendants' deadline to reply in support of any motion to dismiss the Complaint that Defendants file is extended until on or before June 26, 2023 (6/26/2023). Signed by District Judge Anne R. Traum on 4/21/2023. (Copies have been distributed pursuant to the NEF - CJS)

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Case 2:23-cv-00358-ART-BNW Document 23 Filed 04/21/23 Page 1 of 6


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 8                              UNITED STATES DISTRICT COURT
 9                                     DISTRICT OF NEVADA
10
     ERIC ATANASOFF, Derivatively on Behalf of         Case No.: 2:23-cv-00358-ART-BNW
11   CLEANSPARK, INC.,
                     Plaintiff,                        (Removal from District Court, Clark County,
12                                                     Nevada, Case No. A-23-866492-C)
     v.
13

14   ZACHARY K. BRADFORD,                              ORDER APPROVING
     S. MATTHEW SCHULTZ, ROGER P.
15   BEYNON, LARRY MCNEILL, and THOMAS                 STIPULATION TO SET BRIEFING
     L. WOOD,                                          SCHEDULE FOR MOTION TO
16                                                     DISMISS
                            Defendants,
17

18   -and-

19   CLEANSPARK, INC., a Nevada Corporation,

20                          Nominal Defendant.
21           Plaintiff Eric Atanasoff (“Plaintiff”), derivatively on behalf of Nominal Plaintiff

22   CleanSpark, Inc. (“CleanSpark”) and Defendants Zachary K. Bradford, S. Matthew Schultz,

23   Larry McNeill, Thomas L. Wood, Roger P. Beynon (the “Individual Defendants”), and Nominal

24   Defendant CleanSpark (together with the Individual Defendants, “Defendants”) (collectively,

25   with Plaintiff, the “Parties”), by and through their undersigned counsel, hereby enter into the

26   following stipulation and proposed order:

27   ///

28   ///
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     Case 2:23-cv-00358-ART-BNW Document 23 Filed 04/21/23 Page 2 of 6


 1                                     The Six Derivative Actions

 2           WHEREAS, on May 26, 2021, plaintiff Andrea Ciceri filed a shareholder derivative

 3   action on behalf of nominal defendant CleanSpark in the United States District Court for the

 4   District of Nevada, captioned Ciceri v. Bradford, et al., Case No. 2:21-cv-01004-GMN-BNW

 5   (“Ciceri”). Ciceri was assigned to the Honorable Gloria M. Navarro; and

 6           WHEREAS, on June 22, 2021, plaintiff Mark Perna filed a second shareholder

 7   derivative action on behalf of nominal defendant CleanSpark in the United States District Court

 8   for the District of Nevada, captioned Perna v. Bradford, et al., Case No. 2:21-cv-01181-GMN-

 9   BNW (“Perna”). Perna was also assigned to the Honorable Gloria M. Navarro; and

10           WHEREAS, on June 29, 2021, Judge Navarro consolidated Ciceri and Perna into a

11   single consolidated action, captioned In re Cleanspark, Inc. Derivative Litigation, Case No.

12   2:21-cv-01004-GMN-BNW (the “Consolidated Action”) and designated the complaint filed in

13   Ciceri as the operative complaint pursuant to a Joint Stipulation and Order Consolidating Related

14   Actions and Appointing Co-Lead Counsel (the “Consolidation Order”); and

15           WHEREAS, on February 24, 2023, plaintiff Nicholas Iraci filed a third shareholder

16   derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court

17   of the State of Nevada in and for Clark County, captioned Iraci v. Bradford, et al., Case No. A-

18   23-866172-C (“Iraci”); and

19           WHEREAS, on February 28, 2023, defendant S. Matthew Schultz (“Schultz”) filed a

20   Petition for Removal and Notice of Petition for Removal, removing Iraci to the United States

21   District Court for the District of Nevada. Iraci is now pending in the United States District Court

22   for the District of Nevada before the Honorable Jennifer A. Dorsey, captioned Iraci v. Bradford,

23   et al., Case No. 2:23-cv-00315-JAD-NJK. On March 6, 2023, defendant Schultz filed a Notice

24   of Related Case, requesting that Iraci be transferred to Judge Navarro and added to the

25   Consolidated Action; and

26           WHEREAS, on March 1, 2023, plaintiff Eric Atanasoff filed a fourth shareholder

27   derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court

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     Case 2:23-cv-00358-ART-BNW Document 23 Filed 04/21/23 Page 3 of 6


 1   of the State of Nevada in and for Clark County, captioned Atanasoff v. Bradford, et al., Case No.

 2   A-23-866492-C (“Atanasoff”); and

 3           WHEREAS, on March 7, 2023, defendant Schultz filed a Petition for Removal and

 4   Notice of Petition for Removal, removing Atanasoff to the United States District Court for the

 5   District of Nevada. Atanasoff is now pending in this Court. On March 9, 2023, defendant

 6   Schultz filed a Notice of Related Case, requesting that Atanasoff be transferred to Judge Navarro

 7   and added to the Consolidated Action; and

 8           WHEREAS, on February 21, 2013, plaintiff Brandon Smith filed a fifth shareholder

 9   derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court

10   of the State of Nevada in and for Clark County, captioned Smith v. Bradford, et al., Case No. A-

11   23-866051-C (“Smith”); and

12           WHEREAS, on March 23, 2023, Defendants filed a Petition for Removal and Notice of

13   Removal, removing Smith to the United States District Court for the District of Nevada. Smith is

14   now pending in the United States District Court for the District of Nevada before Judge Navarro,

15   captioned Smith v. Bradford, et al., Case No. 2:23-cv-00445-GMN-BNW. On March 24, 2023,

16   Defendants filed a Notice of Related Case, requesting that Smith be added to the Consolidated

17   Action; and

18           WHEREAS, on March 8, 2023, plaintiff Travis France filed a sixth shareholder

19   derivative action on behalf of nominal defendant CleanSpark in the Eighth Judicial District Court

20   of the State of Nevada in and for Clark County, captioned France v. Bradford, et al., Case No.

21   A-23-866925-C (“France” and together with the Iraci, Atanasoff, Smith, and the Consolidated

22   Action, the “Six Derivative Actions”); and

23           WHEREAS, on March 23, 2023, Defendants filed a Petition for Removal and Notice of

24   Removal, removing France to the United States District Court for the District of Nevada.

25   France is also now pending in the United States District Court for the District of Nevada before

26   Judge Navarro, captioned France v. Bradford, et al., Case No. 2:23-cv-00444-GMN-NJK. On

27   March 24, 2023, Defendants filed a Notice of Related Case, requesting that France be added to

28   the Consolidated Action; and
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 1           WHEREAS, on March 24, 2023, Defendants filed a Motion to Consolidate in the

 2   Consolidated Action, with notifications for Iraci, Atanasoff, Smith, and France, requesting that

 3   those cases be consolidated with the Consolidated Action before Judge Navarro; and

 4           WHEREAS, between March 30, 2023 and April 6, 2023, plaintiffs in Iraci, Atanasoff,

 5   Smith, and France all filed motions to remand those actions back to state court; and

 6           WHEREAS, the parties in Six Derivative Actions have the following briefing deadlines:

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      Date          Case        Task
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        3/24/2023   Atanasoff   Defendants' Motion to Consolidate Cases
 9      3/24/2023   France      Defendants' Motion to Consolidate Cases
        3/24/2023   Iraci       Defendants' Motion to Consolidate Cases
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        3/24/2023   Smith       Defendants' Motion to Consolidate Cases
11      3/30/2023   Iraci       Plaintiff's Motion to Remand to State Court
        3/31/2023   France      Plaintiff's Motion to Remand to State Court
12       4/4/2023   Atanasoff   Plaintiff's Motion to Remand to State Court
13       4/6/2023   Smith       Plaintiff's Motion to Remand to State Court
         4/7/2023   France      Plaintiff's Response to Motion to Consolidate
14       4/7/2023   Atanasoff   Plaintiff's Opposition to Motion to Consolidate
15      4/11/2023   France      Defendants' Motion to Dismiss
        4/13/2023   Iraci       Defendants' Opposition to Motion to Remand
16      4/14/2023   France      Defendants' Reply to Plaintiff’s Opposition to Motion to Consolidate
        4/14/2023   Atanasoff   Defendants' Reply to Plaintiff’s Opposition to Motion to Consolidate
17
        4/14/2023   France      Defendants' Opposition to Motion to Remand
18      4/17/2023   Iraci       Plaintiff's Opposition to Motion to Consolidate
        4/17/2023   Smith       Plaintiff's Opposition to Motion to Consolidate
19
        4/18/2023   Atanasoff   Defendants' Opposition to Motion to Remand
20      4/20/2023   Smith       Defendants' Opposition to Motion to Remand to State Court
        4/20/2023   Iraci       Plaintiff's Reply to Defendant’s Opposition to Motion to Remand
21
        4/21/2023   France      Plaintiff's Reply to Defendant’s Opposition to Motion to Remand
22      4/24/2023   Smith       Defendants' Reply to Plaintiff’s Opposition to Motion to Consolidate
        4/24/2023   Iraci       Defendants' Reply to Plaintiff’s Opposition to Motion to Consolidate
23      4/24/2023   Iraci       Defendants' Motion to Dismiss
24      4/25/2023   Atanasoff   Plaintiff's Reply to Defendant’s Opposition to Motion to Remand
                                Plaintiff's Reply to Defendant's Opposition to Motion to Remand to State
25      4/27/2023   Smith       Court
         5/5/2023   Atanasoff   Defendants' Motion to Dismiss
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        5/11/2023   France      Plaintiff's Opposition to Motion to Dismiss (pending court approval)
27      5/24/2023   Iraci       Plaintiff's Opposition to Motion to Dismiss
                                Defendants' Reply to Plaintiff's Opposition to Motion to Dismiss (pending
28        6/1/2023 France       court approval)
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 1       6/5/2023 Atanasoff     Plaintiff's Opposition to Motion to Dismiss (pending court approval)
        6/14/2023 Iraci         Defendants' Reply to Plaintiff’s Opposition to Motion to Dismiss
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                                Defendants' Reply to Plaintiff's Opposition to Motion to Dismiss (pending
 3      6/26/2023 Atanasoff     court approval)

 4                                              This Action
 5           WHEREAS, on April 5, 2023, after meeting and conferring extensively, the Parties
 6   submitted a joint Stipulation and [proposed] Order Extending Time to Respond to Complaint
 7   (the “Stipulation”), agreeing, subject to the Court’s approval, to extend: (i) Defendants’ time to
 8   respond to the Complaint until May 5, 2023, (ii) Plaintiff’s time to oppose any motion to dismiss
 9   the Complaint that Defendants file until on or before June 5, 2023, and (iii) Defendants’ time to
10   reply in support of any motion to dismiss the Complaint that Defendants file until on or before
11   June 26, 2023; and
12           WHEREAS, on April 6, 2023, Magistrate Brenda Weksler granted the Stipulation in part
13   and denied it in part, extending Defendants’ time to respond to the Complaint until May 5, 2023,
14   but instructing the Parties to make a separate filing setting forth their proposed briefing schedule
15   for any motion to dismiss that Defendants file pursuant to LR IC 2-2(b); and
16           WHEREAS, Defendants intend to move to dismiss the Complaint in this Action on or
17   before May 5, 2023; and
18           WHEREAS, given the crowded briefing schedules in the Six Derivative Actions, the
19   Parties agree to extend the deadline for Plaintiff to oppose any motion to dismiss the Complaint
20   that Defendants file until on or before June 5, 2023; and
21           WHEREAS, given the crowded briefing schedules in the Six Derivative Actions, the
22   Parties agree to extend the deadline for Defendants to reply in support of any motion to dismiss
23   the Complaint until on or before June 26, 2023.
24           NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by the Parties
25   hereto, through their undersigned counsel, subject to the approval of the Court, as follows:
26           1.     Plaintiff’s deadline to oppose any motion to dismiss the Complaint that
27   Defendants file is extended until on or before June 5, 2023.
28           2.     Defendants’ deadline to reply in support of any motion to dismiss the Complaint
                                                       5
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     Case 2:23-cv-00358-ART-BNW Document 23 Filed 04/21/23 Page 6 of 6


 1   that Defendants file is extended until on or before June 26, 2023.

 2           3.     Other than as agreed herein, the Parties reserve all rights.

 3   DATED: April 17, 2023                                DATED: April 17, 2023
 4
     FOX ROTHSCHILD LLP                                   ALDRICH LAW FIRM, LTD.
 5
     /s/ Colleen E. McCarty                               /s/ John P. Aldrich
 6   MARK J. CONNOT (10010)                               JOHN P. ALDRICH (6877)
     COLLEEN E. MCCARTY (13186)                           CATHERINE HERNANDEZ (8410)
 7   1980 Festival Plaza Drive, Ste. 700                  7866 West Sahara Avenue
 8   Las Vegas, NV 89135                                  Las Vegas, Nevada 89117
     mconnot@foxrothschild.com                            jaldrich@johnaldrichlawfirm.com
 9   cmccarty@foxrothschild.com                           chernandez@johnaldrichlawfirm.com
     Counsel for Defendants
10
                                                          DATED: April 17, 2023
11

12                                                        THE WEISER LAW FIRM, P.C.

13                                                        /s/ James M. Ficaro
                                                          JAMES M. FICARO
14                                                        200 Barr Harbor Drive
                                                          West Conshohocken, PA 19428
15

16                                                        Counsel for Plaintiff Eric Atanasoff

17

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                                                   IT IS SO ORDERED.
19

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                                                   _____________________________________
21                                                 Anne R. Traum
                                                   United States District Court Judge
22
                                                   DATED: April 21, 2023.
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     144760884.1