Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-03817/USCOURTS-cand-3_06-cv-03817-22/pdf.json

Nature of Suit Code: 160
Nature of Suit: Stockholder's Suits
Cause of Action: 15:78m(a) Securities Exchange Act

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United States District Court

For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

In Re CNET NETWORKS, INC.

SHAREHOLDER DERIVATIVE 

LITIGATION.

 /

This Document Relates To:

ALL ACTIONS. /

Master File No. C 06-03817 WHA

STAY PENDING BOOKS

AND RECORDS DEMAND 

In order to allow plaintiffs a reasonable period to pursue their rights under Delaware

Corporations Code § 220 to inspect books and records and to allow an enforcement action in the

Delaware courts, this action will now be STAYED until further order. Defendant CNET is

requested to cooperate and to expedite the inspection, especially since CNET itself raised the

availability of such an inspection in its recent memoranda. 

If an enforcement action is brought, then the following may be of assistance to the

Delaware court. Recognizing that the inspection rights are a matter of Delaware law and for the

Delaware court to decide in the event that the parties cannot agree, the Delaware court may

nonetheless desire information as to the categories of books and records that might well shed

light on the issues pending before this Court. They would be: 

1. All books and records showing the extent to which the CNET

compensation committee delegated (or did not delegate) to management, either

expressly or by custom and practice, the authority to select the exercise price or

Case 3:06-cv-03817-WHA Document 169 Filed 05/09/07 Page 1 of 2
United States District Court

For the Northern District of California

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grant date of stock options under the 1997 plan and, if such delegation occurred,

the extent to which the compensation committee was made aware of the exercise

prices and dates selected. 

2. All books and records establishing the specific chronology and

events leading to the stock-option grants alleged in the complaint and exercise

prices and grant dates associated therewith. 

3. All books and records needed to determine to whether

Messrs. Colligan and Robison received stock options that were backdated. 

4. All books and records necessary to show the extent to which any

minutes or unanimous written consents for the compensation committee (while

Colligan and Robison were members) were backdated, at least as to those

minutes involving stock-option grants. 

The foregoing is without prejudice to other possible requests. 

Plaintiffs must make any renewed demand by MAY 14, AT NOON. Plaintiffs should not

seek to enforce the inspection rights in the instant action but should seek to enforce their

inspection rights in the Delaware courts, if at all. If alacrity is not in evidence, the stay will be

lifted. A case management conference will be held on MAY 31, AT 11:00 A.M. to learn the

status and to possibly set further deadlines for the amended pleading and motion to dismiss. 

IT IS SO ORDERED.

Dated: May 9, 2007. WILLIAM ALSUP

UNITED STATES DISTRICT JUDGE

Case 3:06-cv-03817-WHA Document 169 Filed 05/09/07 Page 2 of 2