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Unopposed Motion To Extend Time To Produce Documents

Date
2025-04-24

Summary

An unopposed motion by the United States, filed April 25, 2025 as Document 75 in United States ex rel. Paul Pietschner v. Kathryn Petralia, Robert Frohwein and Spencer Robinson, Civil Action No. 4:21-cv-110-SDJ, in the U.S. District Court for the Eastern District of Texas, Sherman Division. The motion asks the court to extend the deadline for the government's document production accompanying its initial disclosures, set by the Order Governing Proceedings (ECF No. 69), until two days after entry of the protective order the parties jointly requested on April 24, 2025 (ECF No. 73). It describes the action as a False Claims Act case under 31 U.S.C. §§ 3729–3733 against former Kabbage, Inc. executives relating to the Paycheck Protection Program. It states that the production includes sensitive personal, financial and Bank Secrecy Act information and that defendants do not oppose the request.

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Case 4:21-cv-00110-SDJ         Document 75       Filed 04/25/25      Page 1 of 5 PageID #: 836




                       IN THE UNITED STATES DISTRICT COURT
                        FOR THE EASTERN DISTRICT OF TEXAS
                                SHERMAN DIVISION



 UNITED STATES OF AMERICA
 ex rel. PAUL PIETSCHNER,

 Plaintiff,                                       Civil Action No.: 4:21-cv-110-SDJ

 v.

 KATHRYN PETRALIA;
 ROBERT FROHWEIN; and
 SPENCER ROBINSON,

 Defendants.


      UNOPPOSED MOTION TO EXTEND TIME TO PRODUCE DOCUMENTS
                ACCOMPANYING INITIAL DISCLOSURES

       Plaintiff the United States of America (the “United States”), by and through its undersigned

counsel, files this unopposed motion requesting an extension of the Court’s deadline for the United

States to serve its document production accompanying its initial disclosures, see the Court’s Order

Governing Proceedings (“Order”), ECF No. 69, within two days after the Court has entered the

requested Protective Order in this case, ECF Nos. 73, 73-1. Because the United States’ production

includes documents containing sensitive information, the United States requests an extension to

serve its initial document production until after the Court has entered the Protective Order

submitted by the parties on April 24, 2025. ECF No. 73.

                                       BACKGROUND

       This is an action against Defendants, former executives of a financial technology company,

Kabbage, Inc., to recover treble damages and civil penalties under the False Claims Act (“FCA”),

31 U.S.C. §§ 3729–3733, and to recover money for common law claims for payment by mistake
Case 4:21-cv-00110-SDJ          Document 75        Filed 04/25/25       Page 2 of 5 PageID #: 837




and unjust enrichment, relating to Kabbage’s participation in the Government’s Paycheck

Protection Program (“PPP”) as a PPP lender and loan service provider.

       On March 25, 2025, the Court entered an Order Governing Proceedings and ordered that

the parties conduct a Rule 26(f) Conference on or before April 16, 2025; complete initial

mandatory disclosures required by the Order by April 28, 2025; and file a joint Rule 26(f) Report

by May 2, 2025. ECF No. 69, at 1. As part of the initial disclosures required by the Order, the

Court ordered the parties to produce “[a] copy of all documents, ESI, witness statements, and

tangible things in the possession, custody, or control of the disclosing party that are relevant to the

claim or defense of any party.” Id. at 4. The initial document production that the United States

intends to make pursuant to the Order will include documents containing sensitive information,

including but not limited to sensitive personal identification or financial information and information

that may be subject to protections under the Bank Secrecy Act (BSA). 1 To protect information

entitled to be kept confidential, the parties jointly requested on April 24, 2025 that the Court enter

a Protective Order governing the handling and use of confidential information. ECF No. 73.

                                           ARGUMENT

       Courts “may, for good cause, issue an order to protect a party or person from annoyance,

embarrassment, oppression, or undue burden or expense,” Fed. R. Civ. P. 26(c)(1), and have broad

discretion to decide when a Protective Order is appropriate and what degree of protection is

required. Seattle Times Co. v. Rhinehart, 467 U.S. 20, 36 (1984). A court also has “broad

discretion . . . to control its docket.” Nevada v. United States Dep’t of Lab., 227 F. Supp. 3d 696,




       1     The BSA is codified at 12 U.S.C. §§ 1829b, 1951–1960, and 31 U.S.C. §§ 310,
5311–5314, 5316–5336, and including notes thereto, with implementing regulations at 31 C.F.R.
Chapter X.
                                            2
Case 4:21-cv-00110-SDJ          Document 75        Filed 04/25/25       Page 3 of 5 PageID #: 838




698 (E.D. Tex. 2017) (Mazzant, J.); see also Landis v. N. Am. Co., 299 U.S. 248, 254 (1936)

(noting “the power inherent in every court to control the disposition of the causes on its docket

with economy of time and effort for itself, for counsel, and for litigants.”).

        Due to the nature of the claims in this case, the United States’ initial document production

required by the Court’s Order will contain sensitive personal identification or financial information

and/or information subject to the BSA that will require protections under a protective order. To

protect information entitled to be kept confidential, the parties have jointly requested that the Court

enter a Protective Order governing the handling and use of confidential information. ECF No. 73-

1. As such, the United States respectfully submits that there is good cause to extend its time to

produce its documents until a protective order has been entered in this action. Defendants are

unopposed to the relief requested herein.

                                              CONCLUSION

       Based on the foregoing reasons, the United States respectfully requests that this Court

extend its time to produce its initial document production within two days after the Court has

entered the Protective Order in this case. The United States is prepared to make its document

production upon entry of a Protective Order, and undersigned counsel represents that the relief

requested herein is for good cause and not to cause any undue delay in this proceeding. A proposed

order accompanies this motion.




                                                  3
Case 4:21-cv-00110-SDJ   Document 75   Filed 04/25/25    Page 4 of 5 PageID #: 839




Dated: April 25, 2025                      Respectfully submitted,

                                           MICHAEL D. GRANSTON
                                           Deputy Assistant Attorney General

                                           ABE MCGLOTHIN, Jr.
                                           Acting United States Attorney
                                           Eastern District of Texas

                                           /s/ Betty Young____________
                                           JAMES G. GILLINGHAM, Texas Bar
                                           #24065295
                                           BETTY S. YOUNG, Texas Bar #24102498
                                           Assistant U.S. Attorneys
                                           Eastern District of Texas
                                           110 N. College Street, Suite 700
                                           Tyler, Texas 75702
                                           E-mail: James.Gillingham@usdoj.gov
                                           E-mail: Betty.Young@usdoj.gov
                                           (903) 590-1400
                                           (903) 590-1436 (facsimile)

                                           JAMIE ANN YAVELBERG
                                           COLIN M. HUNTLEY
                                           SARAH E. LOUCKS
                                           KELLY E. PHIPPS
                                           Attorneys, Civil Division
                                           United States Department of Justice
                                           P.O. Box 261
                                           Ben Franklin Station
                                           Washington, D.C. 20044
                                           E-mail: Sarah.E.Loucks@usdoj.gov
                                           E-mail: Kelly.E.Phipps@usdoj.gov
                                           (202) 616-4203
                                           (202) 514-0280 (facsimile)

                                           ATTORNEYS FOR THE
                                           UNITED STATES OF AMERICA




                                       4
Case 4:21-cv-00110-SDJ        Document 75        Filed 04/25/25     Page 5 of 5 PageID #: 840




                                CERTIFICATE OF SERVICE

       I hereby certify that on April 25, 2025, I caused a true and correct copy of the foregoing
document to be transmitted through the Court’s electronic mailing service (CM/ECF) to all counsel
of record who have consented to electronic service by the Court’s electronic mailing service
(CM/ECF).
                                                     /s/ Betty Young__________
                                                     BETTY S. YOUNG

                            CERTIFICATE OF CONFERENCE

      I hereby certify that on April 25, 2025, I conferred with counsel for Relator and Defendants
pursuant to Local Rule CV-7(h). Counsel for relator and defendants have represented that they are
unopposed to the relief sought herein.

                                                    /s/ Betty Young__________
                                                    BETTY S. YOUNG




                                                5


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