Anavex Life Sciences Corp (AVXL)

[Investor2014]

Have a look at this easy to follow, but somewhat simplified, flowchart and note the text in the Motion to Dismiss box.

The PSLRA provides for an automatic stay of discovery until the court determines the motion to dismiss.

As I have said there nothing that prevents discovery from being ordered prior to a motion to dismiss. The discovery process can be underway before a motion to dismiss is filed in order to help establish or otherwise merit, but when filed discovery will be stayed until the motion to dismiss is determined. Obviously terminating everything else if ultimately granted.

Dismissal can happen anytime during early and late pleading and discovery can be stayed any number times. The certification process can take over 6 months.

Also note the loop around through amending complaints and motions to dismiss though to a potentially certified class. During this 'discovery' period several discovery orders can be issued by the court.

One key thing to appreciate here is a sketchy first complaint is not a good basis for knowing how things may end. This is why I keep saying first wait for the end of lead plaintiff deadline to see who else files motions for lead plaintiff and review their claims.