Case 2:23-cv-01075-RFB-BNW Document 18 Filed 07/31/23 Page 1 of 5 1 Kimberly P. Stein, Esq. Nevada Bar No. 8675 2 FLANGAS LAW GROUP 3275 S. Jones Blvd., Suite 105 3 Las Vegas, NV 89146 Email: kps@fdlawlv.com 4 Telephone: (702) 307-9500 Counsel for Defendants 5 Georges Antoun, Kevin A. DeNuccio, Hugh Gallagher, Sarita James, Jay Leupp, Doug Mellinger, Merrick Okamoto, Said Ouissal, Simeon Salzman, and Fred Thiel, and Nominal Defendant 6 Marathon Digital Holdings Inc. 7 [Additional Counsel on Signature Block] 8 UNITED STATES DISTRICT COURT 9 DISTRICT OF NEVADA 10 STEVE HOOD, derivatively on behalf of Case No.: 2:23-cv-01055-RFB-BNW MARATHON DIGITAL HOLDINGS, INC., 11 STIPULATION AND [PROPOSED] Plaintiff, ORDER CONSOLIDATING RELATED 12 ACTIONS v. 13 FREDERICK G. THIEL, MERRICK 14 OKAMOTO, SIMEON SALZMAN, HUGH J. GALLAGHER, GEORGES ANTOUN, KEVIN 15 A. DENUCCIO, SARITA JAMES, JAY LEUPP, SAID OUISSAL and DOUG 16 MELLINGER, 17 Defendants, 18 and 19 MARATHON DIGITAL HOLDINGS, INC., 20 Nominal Defendant. 21 GARY KONIGSBERG, derivatively on behalf Case No.: 2:23-cv-01075-CDS-DJA of MARATHON DIGITAL HOLDINGS, INC., 22 Plaintiff, 23 v. 24 FRANK G. THIEL, MERRICK OKAMOTO, 25 SIMEON SALZMAN, HUGH J. GALLAGHER, GEORGES ANTOUN, KEVIN 26 A. DENUCCIO, SARITA JAMES, JAY LEUPP, SAID OUISSAL, and DOUG 27 MELLINGER, 28 Defendants, 1 Case 2:23-cv-01075-RFB-BNW Document 18 Filed 07/31/23 Page 2 of 5 1 and 2 MARATHON DIGITAL HOLDINGS, INC., 3 Nominal Defendant. 4 5 WHEREAS, on July 8, 2023, plaintiff Steve Hood filed a shareholder derivative action on 6 behalf of Nominal Defendant Marathon Digital Holdings, Inc. (“Marathon” or the “Company”) in 7 this Court making claims for breaches of fiduciary duty, unjust enrichment, waste of corporate assets, 8 and violations of Sections 14(a) of the Securities and Exchange Act of 1934 (the “Exchange Act”) 9 against defendants Georges Antoun, Kevin A. DeNuccio, Hugh Gallagher, Sarita James, Jay Leupp, 10 Doug Mellinger, Merrick Okamoto, Said Ouissal, Simeon Salzman, and Fred Thiel (collectively, the 11 “Defendants”), and for contribution under Sections 10(b) and 21D of the Exchange Act against 12 certain of the Defendants, captioned Hood v. Thiel et al., Case No. 2:23-cv-01055-RFB-BNW (the 13 “Hood” Action”) (Hood Action ECF No.1); 14 WHEREAS, on July 12, 2023, plaintiff Gary Konigsberg (together with plaintiff Steve Hood, 15 “Plaintiffs”) filed a shareholder derivative action on behalf of Nominal Defendant Marathon against 16 the same defendants named in the Hood Action alleging the same facts as the Hood Action and making 17 the same claims for violations of Section 14(a) of the Exchange Act and breaches of fiduciary duty 18 against the Defendants as the Hood Action, captioned Konigsberg v. Thiel et al., Case No. 2:23-cv- 19 01075-CDS-DJA (the “Konigsberg Action,” and together with the Hood Action, the “Derivative 20 Actions”) (Konigsberg Action ECF No.1); 21 WHEREAS, under Fed. R. Civ. P. 42(a), when actions involve “a common question of law or 22 fact,” the Court may “(1) join for hearing or trial any or all matters at issue in the actions; (2) 23 consolidate the actions; or (3) issue any other orders to avoid unnecessary cost or delay”; 24 WHEREAS, Plaintiffs and Defendants (the “Parties”) in the Derivative Actions agree that the 25 Derivative Actions are brought on behalf of the same corporation and challenge the same alleged 26 conduct by the same defendants and involve the same questions of law and fact, and that the 27 administration of justice would best be served by consolidating the Derivative Actions; and 28 WHEREAS this stipulation is not a waiver 2 of any of the Parties’ right, remedies, claims or Case 2:23-cv-01075-RFB-BNW Document 18 Filed 07/31/23 Page 3 of 5 1 defenses; 2 IT IS ACCORDINGLY STIPULATED AND AGREED by and between the Parties through 3 their authorized attorneys, as follows: 4 1. The following actions (the “Related Derivative Actions”) are hereby consolidated for 5 all purposes, including pre-trial proceedings and trial, under Case No.: 2:23-cv-01055-RFB-BNW (the 6 “Consolidated Action”): 7 Case Name Case Number Date Filed 8 Hood v. Thiel et al., 2:23-cv-01055-RFB-BNW July 8, 2023 9 Konigsberg v. Thiel et al., 2:23-cv-01075-CDS-DJA July 12, 2023 10 2. Every pleading filed in the Consolidated Action, or in any separate action included 11 herein, must bear the following caption: 12 13 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 14 15 IN RE MARATHON DIGITAL HOLDINGS, Lead Case No. 2:23-cv-01055-RFB-BNW INC. DERIVATIVE LITIGATION 16 This Document Relates to: 17 ALL ACTIONS 18 19 3. All papers filed in connection with the Consolidated Action will be maintained in one 20 file under In re Marathon Digital Holdings, Inc. Derivative Litigation, Lead Case No. 2:23-cv-01055- 21 RFB-BNW and all papers and documents previously filed and/or served in the Related Derivative 22 Actions shall be deemed a part of the record in the Consolidated Action. 23 4. This Order shall apply to each shareholder derivative action arising out of the same, or 24 substantially the same, transactions or events as the Consolidated Action, which is subsequently filed 25 in, removed to, reassigned to, or transferred to this Court. When a shareholder derivative action that 26 properly belongs as part of In re Marathon Digital Holdings, Inc. Derivative Litigation, Lead Case 27 No. 2:23-cv-01055-RFB-BNW is hereafter filed in this Court, removed to this Court, reassigned to 28 this Court, or transferred here from another court, 3 this Court requests the assistance of counsel in Case 2:23-cv-01075-RFB-BNW Document 18 Filed 07/31/23 Page 4 of 5 1 calling to the attention of the clerk of the Court the filing, removal, reassignment, or transfer of any 2 case that might properly be consolidated as part of In re Marathon Digital Holdings, Inc. Derivative 3 Litigation Lead Case No. 2:23-cv-01055-RFB-BNW, and counsel are to assist in assuring that counsel 4 in subsequent actions receive notice of this Order. Unless otherwise ordered, the terms of all orders, 5 rulings, and decisions in the Consolidated Action shall apply to all later substantially similar 6 shareholder derivative actions filed in this Court, removed to this Court, reassigned to the Court, or 7 transferred here from another court. 8 5. Within fourteen (14) days of consolidation and then selection of lead counsel for 9 plaintiffs in the consolidated action, the Parties shall meet and confer and submit a proposed schedule 10 for the filing of a consolidated complaint and answers, motions to dismiss, and/or other responses. 11 Defendants and Nominal Defendants are not required to answer, move, or otherwise respond to the 12 complaints filed in the Hood Action and the Konigsberg Action until the deadline set forth in the 13 Court’s order on the parties’ proposed schedule. 14 6. This Stipulation is without prejudice to any and all claims or defenses that Plaintiff, 15 Defendants, or the Nominal Defendant may assert. 16 17 Respectfully submitted, 18 Dated: July 28, 2023 LEVERTY & ASSOCIATED LAW CHTD. /s/Patrick R. Leverty_______________ 19 Patrick R. Leverty Reno Gould House 20 Reno, NV 89502 Tel.: (775) 322-6636 21 Email: pat@levertylaw.com 22 Counsel for Plaintiffs Steve Hood and Gary Konigsberg 23 THE BROWN LAW FIRM, P.C. 24 Timothy Brown (pro hac to be submitted) 767 Third Avenue, Suite 2501 25 New York, NY 10017 Tel.: (516) 922-5427 26 Email: tbrown@thebrownlawfirm.net 27 Counsel for Plaintiff Steve Hood 28 4 Case 2:23-cv-01075-RFB-BNW Document 18 Filed 07/31/23 Page 5 of 5 1 THE ROSEN LAW FIRM, P.A. Phillip Kim (pro hac to be submitted) 2 275 Madison Avenue 40th Floor New York, NY 10016 3 Tel.: (212) 686-1060 Email: pkim@rosenlegal.com 4 Counsel for Plaintiff Gary Konigsberg 5 6 Dated: July 28, 2023 FLANGAS LAW GROUP /s/Kimberly P. Stein_______________ 7 Kimberly P. Stein 3275 South Jones Boulevard, Suite 105 8 Las Vegas, NV 89146 Tel.: (702) 307-9500 9 Email: kps@fdlawlv.com 10 WEIL, GOTSHAL & MANGES LLP Jonathan D. Polkes (pro hac to be submitted) 11 Stephen A. Radin (pro hac to be submitted) Caroline Zalka (pro hac to be submitted) 12 767 Fifth Avenue New York, NY 10153 13 Tel.: (212) 310-8770 Email: jonathan.polkes@weil.com 14 Email: stephen.radin@weil.com Email: carolyn.zalka@weil.com 15 Counsel for Defendants Georges Antoun, Kevin 16 A. DeNuccio, Hugh Gallagher, Sarita James, Jay Leupp, Doug Mellinger, Merrick Okamoto, Said 17 Ouissal, Simeon Salzman, and Fred Thiel, and Nominal Defendant Marathon Digital Holdings Inc. 18 19 ORDER 20 IT IS SO ORDERED. 21 _________________________________________ 22 UNITED STATES DISTRICT COURT JUDGE 23 24 25 26 27 28 5