Joint Motion for Entry of Amended Scheduling Order — United States ex rel. Paul Pietschner v. Kathryn Petralia

Summary

Joint Motion for Entry of Amended Scheduling Order filed February 9, 2026 as Document 108 in United States of America, et al., ex rel. Paul Pietschner v. Kathryn Petralia, Robert Frohwein, and Spencer Robinson, Civil Action No. 4:21-CV-110-SDJ, U.S. District Court for the Eastern District of Texas, Sherman Division. The United States, Relator Paul Pietschner and the three defendants state that the action seeks treble damages and civil penalties under the False Claims Act relating to Kabbage's participation in the Paycheck Protection Program. They cite a 43-day lapse in appropriations and General Order 25-06 as reasons to amend the May 30, 2025 Scheduling Order (ECF No. 96), and ask the Court to extend deadlines preceding the Final Pre-Trial Conference by approximately seven-and-a-half to eleven months and to allow up to 25 fact depositions per side. The motion is six pages.

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“Joint Motion for Entry of Amended Scheduling Order — United States ex rel. Paul Pietschner v. Kathryn Petralia.” Original at ecf.txed.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-pietschner-v-kabbage-dkt-108-e-d-tex-41afe04fbc/, SHA-256 37215373a46e945a843f2fdd8a76159a626c58d24ff2fac205439b147a0c4671.

Full text

Case 4:21-cv-00110-SDJ Document 108 Filed 02/09/26 Page 1 of 6 PageID #: 1132

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

UNITED STATES OF AMERICA, et al.,
ex rel. PAUL PIETSCHNER,
Plaintiffs,
Civil Action No. 4:21-CV-110-SDJ
v.
KATHRYN PETRALIA; ROBERT FROHWEIN;
and SPENCER ROBINSON,
Defendants.

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER

Plaintiff United States of America (the “United States”), Relator Paul Pietschner, and

Defendants Kathryn Petralia, Robert Frohwein, and Spencer Robinson (“Defendants”)

(collectively referred to as the “Parties”), by and through their respective counsel, jointly file this

Motion for the entry of an Amended Scheduling Order.

This action involves claims against Defendants, who are former executives of a financial

technology company, Kabbage, Inc., seeking 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 and unjust enrichment, relating to Kabbage’s participation in the

Government’s Paycheck Protection Program (“PPP”).

On May 30, 2025, the Court entered a Scheduling Order in this action. ECF No. 96.

On October 1, 2025, a lapse in appropriations began. On October 8, 2025, the United States

District Court for the Eastern District of Texas entered General Order 25-06, staying “all civil

actions…pending in the Eastern District of Texas wherein the United States or an agency,

corporation, officer or employee of the United States is a party and that party is represented of

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER – PAGE 1
Case 4:21-cv-00110-SDJ Document 108 Filed 02/09/26 Page 2 of 6 PageID #: 1133

record by the United States Attorney (or an Assistant United States Attorney) for the Eastern

District of Texas ….” General Order 25-06 further provided that, “[a]ll such cases shall remain

stayed until such time as an appropriations bill or a continuing resolution is enacted restoring

funding to the Department of Justice or a subsequent Order lifting this stay (in whole or in part) is

entered. All deadlines and due dates in such cases are extended for a period of time commensurate

with the duration of the lapse in appropriations.”

On November 12, 2025, the lapse in appropriations ended and appropriations were restored

through January 30, 2026 for most agencies, along with full-year appropriations for others. The

lapse in appropriations lasted 43 days.

II.

Given the 43-day lapse in appropriations and the entry of the Court’s General Order 25-06,

the Parties conferred on the current Scheduling Order to submit to the Court an amended

Scheduling Order to reflect the lapse. Upon reassessment of the Scheduling Order due to the lapse

and the complexity of discovery and emerging discovery disputes, the Parties represent that there

is good cause for the entry of an amended scheduling order. The Parties have also extended certain

deadlines to allow for resolution of summary judgment motions before trial. Defendants have also

proposed to include in the amended scheduling order additional deadlines associated with

summary judgment motion briefing. While it may be difficult to ascertain now how much time

will be needed for summary judgment briefing, the United States is unopposed. The Parties

therefore, jointly request that this Court enter the proposed Amended Scheduling Order, which

extends all current deadlines preceding the Final Pre-Trial Conference by a total range of

approximately seven-and-a-half to eleven months.

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER – PAGE 2
Case 4:21-cv-00110-SDJ Document 108 Filed 02/09/26 Page 3 of 6 PageID #: 1134

The Parties also respectfully request that this Court grant leave to increase the deposition

limits set forth in Federal Rules of Civil Procedure 30(a)(2)(A)(i) and 31(a)(2)(A)(i), allowing the

Parties up to 25 fact depositions per side (excluding depositions should Defendants invoke the

advice-of-counsel defense), by way of entering the Parties’ proposed Amended Scheduling Order.

Should Defendants invoke the advice-of-counsel defense, the Parties have agreed to confer on a

mutual increase in the number of depositions associated with this defense.

The Parties propose a modest extension of the dispositive motions and mediation

completion deadlines to allow the Parties additional time to consider and resolve any expert

discovery disputes. The Parties estimate that extending the current deadlines by the proposed

timeline will allow the Parties sufficient time to iron out, with or without court intervention,

emerging discovery issues. The Parties recognize that the Final Pre-Trial Conference and the jury

selection and trial docket date range were set based on the Parties’ and Court’s availability and are

subject to this Court’s further modification.

A copy of the Proposed Amended Scheduling Order is filed concurrently herewith.

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER – PAGE 3
Case 4:21-cv-00110-SDJ Document 108 Filed 02/09/26 Page 4 of 6 PageID #: 1135

Date: February 9, 2026

Respectfully submitted,

_/s/ Christopher E. Babbitt________ _/s/ Faith E. Gay________________
Christopher E. Babbitt (pro hac vice) Faith E. Gay
Michaela S. Wilkes Klein (pro hac vice) Temidayo Aganga-Williams (pro hac vice)
Wilmer Cutler Pickering Hale and Dorr LLP Joshua S. Margolin (pro hac vice)
2100 Pennsylvania Avenue NW Sylvia Woodmansee (pro hac vice)
Washington, DC 20037 Selendy Gay PLLC
Telephone: (202) 663-6000 1290 Avenue of the Americas
Fax: (202) 663-6363 New York, NY 10104
christopher.babbitt@wilmerhale.com Telephone: 212-390-9001
michaela.wilkesklein@wilmerhale.com Facsimile: 212-390-9399
Fgay@selendygay.com
Anjan Sahni (pro hac vice) TAgangawilliams@selendygay.com
Wilmer Cutler Pickering Hale and Dorr LLP JMargolin@selendygay.com
7 World Trade Center, 250 Greenwich Street SWoodmansee@selendygay.com
New York, NY 10007
Telephone: (212) 230-8800 MCKOOL SMITH, PC
Fax: (212) 230-8888 Nicholas M. Mathews
anjan.sahni@wilmerhale.com Alexander J. Chern
McKool Smith, PC - Dallas
George P. Varghese (pro hac vice) 300 Crescent Court, Suite 1500
Sharon K. Hogue (pro hac vice) Dallas, TX 75201
Wilmer Cutler Pickering Hale and Dorr LLP Telephone: (214) 978-4258
60 State Street Fax: (214) 978-4044
Boston, MA 02109 NMathews@mckoolsmith.com
Telephone: (617) 526-6000 AChern@mckoolsmith.com
Fax: (617) 526-5000 ATTORNEYS FOR DEFENDANT
george.varghese@wilmerhale.com ROBERT FROHWEIN
Sharon.hogue@wilmerhale.com
__/s/ Henry W. Asbill______________
Melissa R. Smith Henry W. Asbill (admitted Pro Hac Vice)
Gillam & Smith LLP DC Bar #938811
303 South Washington Avenue hasbill@schertlerlaw.com
Marshall, TX 75670 Christopher B. Mead (admitted Pro Hac Vice)
Telephone: (903) 934-8450 MD Bar #8512010419
Fax: (903) 934-9257 cmead@schertlerlaw.com
melissa@gillamsmithlaw.com Lisa H. Schertler (admitted Pro Hac Vice)
ATTORNEYS FOR DEFENDANT DC Bar #430754
KATHRYN PETRALIA lschertler@schertlerlaw.com
Paola Pinto (admitted Pro Hac Vice)
FL Bar #1013933
ppinto@schertlerlaw.com
SCHERTLER ONORATO MEAD & SEARS

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER – PAGE 4
Case 4:21-cv-00110-SDJ Document 108 Filed 02/09/26 Page 5 of 6 PageID #: 1136

555 13th Street NW Suite 500W
Washington DC 20004
Telephone: 202-628-4199
Facsimile: 202-628-4177
ATTORNEYS FOR DEFENDANT
SPENCER ROBINSON

BRENNA E. JENNY _/s/ Julie Bracker___________
Deputy Assistant Attorney General JULIE BRACKER
Georgia Bar No. 073803
JAY R. COMBS Bracker & Marcus LLC
United States Attorney 3355 Lenox Road, Suite 660
Eastern District of Texas Atlanta, Georgia 30326
E-mail: Julie@FCACounsel.com
/s/ Betty Young____________ (770) 988-5035
JAMES GILLINGHAM, Texas Bar # (678) 648-5544 (fax)
24065295
BETTY YOUNG, Texas Bar #24102498 SARAH M. FRAZIER
Assistant U.S. Attorneys Texas Bar # 24027320
110 N. College Street, Suite 700 Murphy Anderson PLLC
Tyler, Texas 75702 1919 Decatur Street
E-mail: James.Gillingham@usdoj.gov Houston, Texas 77007
E-mail: Betty.Young@usdoj.gov (202) 223-2620 ext. 116
(903) 590-1400 sfrazier@murphypllc.com
(903) 590-1436 (fax) ATTORNEYS FOR RELATOR
PAUL PIETSCHNER
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 PLAINTIFF
THE UNITED STATES OF AMERICA

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER – PAGE 5
Case 4:21-cv-00110-SDJ Document 108 Filed 02/09/26 Page 6 of 6 PageID #: 1137

CERTIFICATE OF SERVICE

I hereby certify that on February 9, 2026, 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/ Sharon K. Hogue_________________
SHARON K. HOGUE

CERTIFICATE OF CONFERENCE

I hereby certify that the parties have complied with Local Rule CV-7(h) and counsel for all
parties have conferred on this motion and the proposed amended scheduling order beginning
November 17, 2026 through February 6, 2026. All parties agree and join in this motion for entry
of the attached Amended Scheduling Order.
____/s/ Sharon K. Hogue________________
SHARON K. HOGUE

JOINT MOTION FOR ENTRY OF AMENDED SCHEDULING ORDER – PAGE 6

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