The plaintiffs in several 2018 class actions (the "2018 actions") brought a motion to temporarily stay overlapping 2022 class actions (the "2022 actions").
Both sets of actions alleged that defendants, as mutual fund trustees and managers, improperly paid trailing commissions.
The 2018 plaintiffs argued that losses were suffered only by those who purchased through discount brokers, while the 2022 plaintiffs contended that losses were incurred by all mutual fund holders, as fees were paid from the funds.
The court granted the temporary stay of the 2022 actions, finding substantial overlap and shared factual background, which would prevent unnecessary duplication of judicial and legal resources.
The court addressed potential prejudice to the 2022 plaintiffs by ordering the suspension of the relevant limitation period and by bifurcating the "separate series" and allocation issues for later litigation, ensuring that the 2022 plaintiffs' interests would be addressed when they diverged from the 2018 plaintiffs.