• The Perils of Partial Stays In Parallel Proceedings
  • June 17, 2010
  • Law Firm: Dickstein Shapiro LLP - New York Office
  • Partner Don Corbett and Associate Elliott Stein use the closely watched Galleon insider trading cases to illustrate the thorny legal issues which can arise when a civil lawsuit unfolds parallel to a criminal prosecution. Rather than halt the SEC’s civil action entirely while federal prosecutors conducted their criminal case in Galleon, Judge Jed S. Rakoff issued just a partial stay meant to protect the defendants’ Fifth Amendment rights. The decision led to a clash over evidence when the SEC sought to obtain evidence from the criminal case, and Rakoff reluctantly adjourned the entire case. Its an example of the many perils judges face as they look for alternatives to staying parallel civil cases outright.