Evil: The 13D Motion for a Protective Order is pre

Evil: The 13D Motion for a Protective Order is pretty much standard operating procedure in high stakes litigation when the moving party has some dirty laundry to hide. Here, 13D is clearly showing concern about the possibility of damaging admissions should Pestell, Caracciolo, or Rosenbaum's son be deposed under oath.

13D's stated basis (as opposed to hiding dirty laundry) for its PO motion is that Judge Noreika's Order permitting expedited discovery was limited to party discovery (i. e.the defendants only), while the above 3 identified deponents are non parties (but may nevertheless possess relevant information regarding the involved legal issues). Assuming that 13D is accurately representing that CYDY limited its motion for expedited discovery to party discovery only, it would not surprise me if Judge Noreika were to grant the Protective Order -- since CYDY apparently has the opportunity to depose 8 party defendants, and expedited discovery is expected to be both limited and targeted. While defeating this motion would be a welcome development for CYDY, my hunch is that Sidley Austin regards winning the expedited discovery motion as receiving the cake, and that gaining permission to depose these 3 guys would be the icing on top.

Keep in mind that the real litigation battle remains whether the 13D slate will be on the BOD ballot. Fights over discovery and additional proxy disclosures are merely skirmishes, though they have the potential to affect which side ultimately wins the battle, as well as the election itself.

I continue to feel that Judge Noreika's ultimate decision will likely turn on whether she is most inclined to see the ballot issue through the prism of "respect for the rules" or "shareholder rights". Believe me. She will be able to justify her written decision using either avenue of reasoning. CYDY, however, is pretty much in a win/win position. Even if Judge Noreika ultimately allows the 13D slate on the ballot, its candidates will have been bloodied pretty badly during the campaign.

Thanks Evil for bring this filing letter to our attention. Great work.