The Washington Superior Court entered a default judgment on March 27th, which is what led to the order canceling the 1.683 billion shares.
As all know (well most) any default judgment can be challenged or appealed if the opposing party can prove they weren't properly served or had a valid reason for missing the deadline. Now for any so called Federal Intervention to come & squash any state matters it can only happen if a party can argue that the ongoing state litigation involves violations of federal securities laws (e.g., fraudulent disclosure, misrepresentation to the SEC in Form 10 filings, or violations of the Exchange Act🤔), they can petition to move the matter to Federal District Court. This is a legitimate strategic move often used in corporate control battles.
Should said party be able to argue that the ongoing state litigation involves violations of federal securities laws🤔 (e.g., fraudulent disclosure, misrepresentation to the SEC in Form 10 filings, or violations of the Exchange Act🙄), they can petition to move the matter to Federal District Court. Once a matter is in Federal Court, it can indeed stay any state court proceedings under 28 U.S. Code § 2283 (the Anti-Injunction Act, specifically the protect or effectuate its judgments exception.
Now especially as I referenced Consultant(s) compensation for Independent Board Members should someone bring a federal suit alleging that the share cancellation and the independent director compensation schemes constitute a federal securities fraud, the federal judge could stay all the state-level rulings to prevent the state courts from potentially validating actions that are illegal under federal law.
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