Efrat Investments LLC v. Hub Cyber Security Ltd.
- Subramanian
- 1:23-cv-05764
- U.S. District Court · Southern District of New York
- 2
In Efrat Investments LLC v. Hub Cyber Security Ltd., Judge Subramanian ordered new notice in Green and postponed Efrat’s lead-plaintiff hearing.
The plaintiffs and potential lead plaintiffs in the related Efrat and Green securities class actions, particularly investors who may fall within Green’s broader proposed class and class period.
What happened
Efrat Investments LLC v. Hub Cyber Security Ltd. involved a related securities class action brought by Dustin Green against Hub Cyber Security Ltd. and others. Efrat’s plaintiff told the court that the later Green case did not need new notice because both cases arose from the same core facts.
The court found that Green’s proposed class covered more investors and a longer period than Efrat’s proposed class. It ordered Green’s plaintiff to publish a new notice within 20 days after filing the complaint and to report when and how the notice was published. The court also postponed the scheduled hearing on lead-plaintiff motions in Efrat and said it would set a new schedule in both cases.
Judge Arun Subramanian issued the order on August 9, 2023. The order addressed notice and scheduling; it did not decide which plaintiff should be appointed lead plaintiff or resolve the underlying securities claims.
The detailed version
- Efrat Investments LLC v. Hub Cyber Security Ltd. · No. 1:23-cv-05764
- Subramanian
- Aug. 9, 2023
Background
The order concerns two related cases against Hub Cyber Security Ltd. and others: Efrat Investments LLC v. Hub Cyber Security, No. 23-cv-05764, and Green v. Hub Cyber Security Ltd., No. 23-cv-06668. On August 7, 2023, the plaintiff in Efrat notified the court about the Green case and asserted that Green did not need separate publication of notice because the claims arose from the same core facts.
Notice Requirement
The court compared the proposed classes. The Green complaint covered a broader group and a longer class period than the Efrat complaint. The court reasoned that potential lead plaintiffs who were not included in the earlier notice might have disregarded it. Applying the notice requirement in Section 78u-4(a)(3)(A) of the Private Securities Litigation Reform Act, the court ordered the plaintiff in Green to publish a new notice no later than 20 days after the Green complaint was filed.
Ruling and Effect
The court ordered the Green plaintiff to inform the court in writing of the date and manner of publication by August 28, 2023, at 5:00 p.m. It postponed the October 3, 2023 hearing on lead-plaintiff motion practice in Efrat and stated that it would set a new schedule for lead-plaintiff motions in both cases after receiving the publication information. The order did not select a lead plaintiff or decide the merits of the securities claims.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.