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Case C2@-A0-00484-DGtuUDER ODoeAékGA, PREG DLI1 H2gQePavfeds of 13
I. MAXWELL’S MOTION FOR A STAY
A. Applicable Legal Standards
Although staying a civil action pending the completion of a criminal prosecution against
a named defendant has been characterized as an “extraordinary remedy,” Louis Vuitton Malletier
S.A. v. LY USA, Inc., 676 F.3d 83, 98 (2d Cir. 2012), “courts will not hesitate to grant a stay
‘when the interests of justice seem to require’ it,” Sec. & Exch. Comm’n v. LaGuardia,
435 F. Supp. 3d 616, 621 (S.D.N.Y. 2020) (citing Jn re Worldcom, Inc. Securities Litigation,
No. 02cv3288 (DLC), 2002 WL 31729501, at *3 (S.D.N.Y. Dec. 5, 2002)) (granting a stay where
there was overlap of issues in the civil and criminal cases and explaining that overlap of issues is
a particularly significant factor); see also Trustees of Plumbers & Pipefitters Nat. Pension
Fund v. Transworld Mech., Inc., 886 F. Supp. 1134 (S.D.N.Y. 1995) (same); Volmar Distributors,
Inc. v. New York Post Co., 152 F.R.D. 36, 42 (S.D.N.Y. 1993) (staying civil discovery pending
completion of the criminal case against the defendant); Sec. & Exch. Comm’n v. Shkreli,
No. 15-CV-7175 (KAM) (RML), 2016 WL 1122029, at *7 (E.D.N.Y. Mar. 2, 2016) (same).
Ultimately, the decision as to whether to issue such a stay rests in the discretion of the
district court, Louis Vuitton Malletier, 676 F.3d at 99, and each case requires a particularized
inquiry, see id., at 98. In determining whether a civil action should be stayed in the face of a
parallel criminal proceeding, courts in this District have generally been guided by six factors:
(1) the extent to which the issues in the criminal case overlap with those presented in the civil
case; (2) the status of the criminal case, including whether the defendant has been indicted;
(3) the private interests of the plaintiff in proceeding expeditiously weighed against the prejudice
to the plaintiff caused by the delay; (4) the private interests of and burden on the defendant;
(5) the interests of the court(s); and (6) the public interest. See id.; see also, e.g., Trustees of
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| Filename | DOJ-OGR-00019449.jpg |
| File Size | 742.5 KB |
| OCR Confidence | 93.4% |
| Has Readable Text | Yes |
| Text Length | 2,125 characters |
| Indexed | 2026-02-03 19:43:28.488136 |