Anavex Life Sciences Corp (AVXL)

[ignatiusrielly35]

Discovery is not going to happen in this case unless and until AVXL's motion to dismiss is denied.It is exceedingly rare for an exception to be made.

The PSLRA, enacted by Congress in 1995, established a “stay of discovery provisions” until after a complaint is sustained over defendants’ motion to dismiss or defendants answer the complaint, whichever comes first. Congress reasoned that “discovery should be permitted in securities class actions only after the court has sustained the legal sufficiency of the complaint,” except “in the exceptional circumstance where particularized discovery is necessary to preserve evidence or to prevent undue prejudice to a party.” This broad stay of discovery was supposedly intended to prevent plaintiffs from leveraging the threat of damaging and costly discovery to achieve favorable settlements, especially where a complaint was meritless and unlikely to survive a motion to dismiss.a complaint

Seeking discovery for the purpose of trying to support a complaint, by examining the merits of the case, is not permissible.