On April 23, TelexFree filed an emergency motion in the SEC case, seeking to delay the hearing for a preliminary injunction. The company requested a new hearing date of May 5, proposing the temporary restraining order remain in effect until then.

TelexFree claimed it needed more time to respond fully to the plaintiff's preliminary injunction request. The proposed May 5 date, however, was set three days after the final hearing in the Nevada bankruptcy case. This timing suggested TelexFree filed the motion to observe the bankruptcy outcome first.

TelexFree has made it clear it believes the Nevada bankruptcy filing will absolve it of responsibility for operating a billion-dollar Ponzi scheme. The SEC recently filed a motion to move the bankruptcy hearing to Massachusetts, which is expected to be heard by the end of the week. The Department of Justice also filed a motion asking for a US Trustee to be appointed to the case. This action would place the application under regulatory control.

Judge Gorton ruled on TelexFree's emergency motion, granting the delay. A new hearing date for the preliminary injunction was set for May 7. The temporary restraining order, covering all defendants, was extended until April 25. A separate hearing for a preliminary injunction against remaining defendants Faith Sloan, Randy Crosby, Santiago De La Rosa, Sanderly Rodrigues de Vasconcelos, and Steve Labriola is scheduled for the same day.

Steve Labriola also filed his own request for a delay, citing that he only retained an attorney on April 23. Labriola claims he has not yet met with this attorney, and the attorney is unfamiliar with the case details. His motion has not yet been ruled upon.

A ruling on the SEC's motion to move the bankruptcy hearing to Massachusetts is anticipated by the end of the week. This move would stop TelexFree's use of the bankruptcy court. The company continues to operate under the belief a Nevada judge will grant the relief it seeks, namely tearing up the $1 billion in AdCentral ROI contracts the company currently owes its affiliates.