United States District Court, S.D. New York
August 30, 2005.
OSRECOVERY, INC., et al., Plaintiffs,
ONE GROUP INTERNATIONAL, INC., et al., Defendants.
The opinion of the court was delivered by: LEWIS KAPLAN, District Judge
The United States has moved for leave to intervene for the
purpose of making, and made, an application to stay discovery in
and the imminent trial of this action on the ground that these
proceedings threaten to interfere with a pending criminal
investigation. All of the remaining parties in this case either
consent to, or have taken no position on, the government's
The Court is somewhat troubled by the lateness of the
government's application. This matter was brought to its
attention long ago, yet it seems to have begun its investigation
quite late and to have allowed that investigation to linger for
some considerable period. Moreover, it brought this application
within about two weeks of the scheduled start of the trial, which
has been on the calendar for some time. Nevertheless, there is a
substantial public interest in the government's investigation
that goes well beyond the private interests of the parties. The
Court is not disposed to risk interference with that
investigation provided the government now moves with alacrity,
particularly given the lack of any objection by any party.
Accordingly, the government's motion to intervene for the
stated purpose is granted. Its motion to stay discovery and the
trial is granted to the extent that discovery is stayed until
October 20, 2005 and the trial is adjourned pending further order
of the Court with the understanding that it is the Court's
present intention to calendar the case for trial as promptly
after October 20, 2005 as possible. Should the government require
additional time, it may apply for a continuation of the stay upon
a detailed showing of what has been accomplished, what remains to
be done, and a timetable for completion of the investigation.
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