Automated Summary
Key Facts
The court granted Defendants' Motion to Stay the case pending appeal until 21 days after the U.S. Court of Appeals for the Fourth Circuit issues its mandate in consolidated appeal 25-1828. The court denied Plaintiffs' motion to lift the adjournment of the responsive pleading deadline, citing judicial economy, potential hardship to Defendants from parallel proceedings, and no cognizable prejudice to Plaintiffs. The case remains stayed with joint status reports required every 60 days starting March 2, 2026.
Issues
- The court addressed Plaintiffs' motion to lift the adjournment of the deadline for Defendants to respond to the FAC. It rejected the argument that local practice permits discovery before responsive pleadings are filed, citing Local Rule 104.4 and general procedural norms. The court concluded that the stipulated adjournment remained in effect and that no persuasive reason existed to deviate from the standard order of resolving motions before discovery.
- The court evaluated whether to stay the case pending the Fourth Circuit's appeal of the preliminary injunction (PI) issued in favor of Plaintiffs. This included analyzing the three factors for a discretionary stay: (1) judicial economy, (2) hardship to Defendants if the stay is denied, and (3) potential prejudice to Plaintiffs if the stay is granted. The court emphasized the complexity of the case, the risk of redundant efforts, and the likelihood that the appellate decision would inform discovery and motions.
Holdings
- The court granted the Motion to Stay (ECF No. 352), staying the case until 21 days after the U.S. Court of Appeals for the Fourth Circuit issues its mandate in the consolidated appeal (lead case number 25-1828).
- The court ordered the parties to file joint status reports beginning March 2, 2026, and every 60 days thereafter or upon disposition of the consolidated appeal, whichever occurs first.
- The court denied the Gilead Motion (ECF No. 350) to lift the adjournment of the responsive pleading deadline as moot.
Remedies
- The Motion to Stay (ECF No. 352) is granted, staying the case until 21 days after the U.S. Court of Appeals for the Fourth Circuit issues its mandate in the consolidated appeal identified by lead case number 25-1828.
- The Gilead Motion (ECF No. 350) is denied as moot, as the court has granted the Motion to Stay and the case is now stayed pending the Fourth Circuit's decision.
- The parties are ordered to file joint status reports beginning on March 2, 2026, and thereafter every 60 days or upon disposition of the consolidated appeal, whichever occurs first.
Legal Principles
The court applied Local Rule 104.4, which prohibits discovery commencement without a scheduling order, and considered factors for granting a stay pending appeal including judicial economy, potential hardship to parties, and risk of prejudice. These principles align with the court's discretion to manage case progression based on procedural rules and equitable considerations.
Precedent Name
- American Heartland Port, Inc. v. American Port Holdings, Inc.
- Int'l Refugee Assistance Project v. Trump
- Sierra Club v. Nat'l Marine Fisheries Serv.
Cited Statute
- Trademark Act
- First-sale doctrine under Copyright Act
- Federal Food, Drug, and Cosmetic Act
Judge Name
Julie R. Rubin
Passage Text
- The court agrees with Defendants that they stand to sustain avoidable, considerable hardship in the absence of a stay... If Defendants lose on appeal, resources spent on motions at the district level could be foreclosed by the appellate decision. If they prevail, they will have incurred unnecessary costs on matters that could have been shaped by the appellate opinion.
- The pending appeals raise a diverse set of arguments... The Fourth Circuit will consider whether this court erred in its legal analysis as to application of the Federal Food, Drug, and Cosmetic Act, the first-sale doctrine, and theories of liability for trademark infringement... The strength of Gilead's claims against New Defendants will be informed by the Fourth Circuit's analysis.
- For the foregoing reasons, it is this 3rd day of February 2026: ORDERED that the Motion to Stay (ECF No. 352) shall be, and is hereby, GRANTED; and further it is ORDERED that this case shall be, and is hereby STAYED until 21 days after the U.S. Court of Appeals for the Fourth Circuit issues its mandate in the consolidated appeal before it, identified by lead case number 25-1828;