Chechele v. Standard General Master Fund L.P.

Background

The court received a letter from counsel for the Standard General Defendants concerning a proposed transaction between TEGNA Inc. and an affiliate of Standard General L.P. The letter stated that the transaction would provide TEGNA shareholders, including Plaintiff Chechele, with cash for their shares if it closed, and that TEGNA would then become a private company.

The letter also stated that the Standard General Defendants had a pending request to have the court’s July 8, 2021 opinion and order certified for an interlocutory appeal under 28 U.S.C. § 1292(b). The opinion text does not describe the substance of that earlier opinion and order.

Defendants’ request and argument

Standard General asked the court to temporarily stay, or pause, all proceedings while the parties provided further notice about the proposed transaction’s closing date. It argued that, after the transaction closed, Chechele would no longer have a continuing financial interest in TEGNA and therefore could no longer maintain her claim under Section 16(b) of the Securities Exchange Act.

The letter relied on decisions discussing the requirement that a plaintiff maintain a personal stake in a federal case throughout the litigation. It argued that Chechele’s claim would become moot if she lost her financial stake and that the court therefore need not resolve the pending request for interlocutory appeal at that time.

Court’s action

The court did not decide whether to stay the proceedings, whether Chechele’s claim would become moot, or whether to certify the earlier order for interlocutory appeal. Instead, Judge Katherine Polk Failla ordered Chechele to file a response to Standard General’s request on or before March 14, 2022.

Disposition

The opinion text reflects an order requiring a response to a request for a temporary stay. It does not state that the stay was granted or denied.