Federal District Court To Rule on Plaintiffs’ Motion for Stay of FTC Non-Compete Ban and Preliminary Injunction Most Likely By July 3rd

Seyfarth Shaw LLP

The district court in the Northern District of Texas recently set the briefing schedule on Plaintiff Ryan’s Motion to Stay the FTC Non-Compete Ban and Preliminary Injunction:

  • The Court ORDERS Defendant FTC to file any opposition to Plaintiff Ryan’s Motion for Stay of Effective Date and Preliminary Injunction, by May 22, 2024.
  • The Court further ORDERS Plaintiff Ryan to file any reply in support of its Motion by June 5, 2024.
  • The Court will issue a decision on the merits of Plaintiff Ryan’s Motion by July 3, 2024.
  • If the Court determines a hearing on the merits of Plaintiff Ryan’s Motion is warranted, the Court sets the date for the hearing as June 17, 2024.
  • By June 6, 2024, the Court will notify the parties if a hearing will be held on June 17, 2024.

The U.S. Chamber of Commerce has moved to intervene as a plaintiff in the case.

The Court subsequently granted that motion and issued a new briefing schedule as follows:

The Court finds that Intervenors’ motion is timely, they have an interest in the subject of the action, the disposition of this action may impair or impede their interest, and their interest may be inadequately represented by the existing parties. The Court further finds that Intervenors have a claim that shares a common question of law or fact with this action and that permitting intervention will not unduly delay or prejudice the adjudication of the original parties’ rights. Thus, it is ordered that Intervenors’ Motion to Intervene as Plaintiffs is hereby GRANTED.

Further, upon review of Defendant Federal Trade Commission’s position on the briefing schedule if intervention is granted, the Court MODIFIES the existing briefing schedule on injunctive relief, (see ECF No. 31), as follows:

  1. May 29, 2024: Deadline for Defendants’ consolidated response, with word limit of 4,250.
  2. June 12, 2024: Deadline for Intervenors’ and Ryan, LLC’s replies.
  3. June 13, 2024: Deadline for Court to notify the parties if a hearing will be held on June 17, 2024.
  4. June 17, 2024: Potential hearing date on Intervenors’ and Ryan, LLC’s motions to stay, if the Court deems it necessary.

It still appears that the Court will issue a decision by July 3rd in this important case.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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