New York Appellate Court Resolves Split as to Whether the PSLRA Automatic Stay of Discovery Applies in State Court.

The New York Appellate Division, First Department recently affirmed a judgment stating that discovery stays pending motions to dismiss under the Private Securities Litigation Reform Act (PSLRA) apply in state court cases. The case involved a class action lawsuit alleging violations of the Securities Act of 1933. The PSLRA, enacted in 1995, aims to address abusive securities suits by postponing discovery. While this issue has been resolved in New York, there is still a split in California trial courts regarding the application of the automatic stay. [Extracted from the article]