Efrat Investments LLC v. Hub Cyber Security Ltd.

Background

The opinion concerns two proposed securities class actions against Hub Cyber Security Ltd. and other defendants. Counsel in Green v. Hub Cyber Security Ltd. notified the court that the notice required by the Private Securities Litigation Reform Act had been published on August 16, 2023.

Lead- Plaintiff Process

The Act allows a member of the proposed class to ask to serve as lead plaintiff within 60 days after publication of the notice. It also directs the court to consider those motions within 90 days and appoint the class member or members the court finds most capable of adequately representing the class. When multiple actions asserting substantially the same claims are involved and a party seeks consolidation, the court must decide the consolidation motion before appointing a lead plaintiff.

Order

The court ordered that proposed class members must move for appointment as lead plaintiff by October 16, 2023. Opposition to any such motion must be served and filed by October 26, 2023. The court scheduled a conference for November 8, 2023, at 9:00 a.m. in Courtroom 15A of the Daniel Patrick Moynihan Courthouse.

Judge Arun Subramanian further ordered counsel to submit a letter within one week if an amended complaint or related case is filed before a lead plaintiff is appointed. The letter must identify differences between the new allegations and the original complaint, including differences in claims or class periods, and show why the court should not require publication of a new notice and set a new deadline for lead-plaintiff motions. The order set procedure and deadlines; it did not decide the underlying securities claims.