In Re Lernout & Hauspie Securities Litigation

MEMORANDUM AND ORDER

SARIS, District Judge.

I. Introduction

This proposed securities fraud class action raises a novel question under the Private Securities Litigation Reform Act (“PSLRA”), 15 U.S.C. § 78u — 4(b)(3)(B), which stays discovery while any motion to dismiss is pending unless certain circumstances exist. 1 In a class action against multiple defendants, does the PSLRA stay discovery against a defendant whose motion to dismiss has been denied during the pendency of other defendants’ motions to dismiss?

After extensive briefing and a lengthy hearing, this Court recently denied motions to…