Knisley

This is a securities class action suit in which two groups of plaintiffs have filed motions for appointment of lead plaintiff and selection of lead counsel. One of those groups is Network Institutional Group (“NIG”), represented by the firm Weiss & Yourman. The other group is Network Associates Lead Plaintiff Group (“NALPG”), represented by Milberg, Weiss, Bershad, Hynes & Lerach, who bring the instant ex parte motion. NALPG’s ex parte motion seeks an order permitting them to engage in expedited discovery related to whether the NIG is the most adequate plaintiff. Such discovery is permitted by 15 U.S.C. § 78u-4(a)(3)(B)(iv) if the plaintiff demonstrates “a reasonable basis for a finding that the presumptively most adequate plaintiff is incapable of adequately representing the class.” For the reasons set forth herein, the Court hereby DENIES NALPG’s ex parte motion.

DISCUSSION

I. Allegations

A. Remuneration

NALPG allege that Weiss & Your-man (“W & Y”), counsel for NIG, offered to pay brokers for the identities of clients who own shares of defendant Network Associates’ stock for the purpose of assembling the plaintiff class for this lawsuit. It appears that W & Y sent letters to…