Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_15-cv-05429/USCOURTS-cand-3_15-cv-05429-4/pdf.json

Nature of Suit Code: 160
Nature of Suit: Stockholder's Suits
Cause of Action: 28:1332 Diversity-Stockholders Suits

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COOLEY LLP

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STIPULATION AND [PROPOSED] ORDER STAYING 

THE ACTION - CASE NO. 3:15-CV-05429 JST

COOLEY LLP

JOHN C. DWYER (136533) (dwyerjc@cooley.com)

JESSICA VALENZUELA SANTAMARIA (220934) (jsantamaria@cooley.com)

AMANDA A. MAIN (260814) (amain@cooley.com)

BRETT H. DE JARNETTE (292919) (bdejarnette@cooley.com)

3175 Hanover Street

Palo Alto, CA 94304-1130

Telephone: (650) 843-5000

Facsimile: (650) 849-7400

Attorneys for Defendants

JOHN VARIAN, PAUL D. RUBIN, PATRICK J. SCANNON,

WILLIAM K. BOWES, JR., PETER BARTON HUTT,

JOSEPH M. LIMBER, W. DENMAN VAN NESS, 

TIMOTHY P. WALBERT, AND JACK L. WYSZOMIERSKI 

and Nominal Defendant XOMA CORPORATION

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

JEFFREY CSOKA, derivatively on

behalf of XOMA CORPORATION,

Plaintiff,

v.

JOHN VARIAN, PAUL D. RUBIN, 

PATRICK J. SCANNON, WILLIAM K.

BOWES, JR., PETER BARTON HUTT,

JOSEPH M. LIMBER, W. DENMAN VAN 

NESS, TIMOTHY P. WALBERT,

AND JACK L. WYSZOMIERSKI,

Defendants,

And

XOMA CORPORATION,

Nominal Defendant.

Case No. 3:15-CV-05429 JST

STIPULATION AND [PROPOSED]

ORDER STAYING THE ACTION

Judge: Honorable Jon S. Tigar

Case 3:15-cv-05429-JST Document 23 Filed 05/19/16 Page 1 of 6
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2.

STIPULATION AND [PROPOSED] ORDER STAYING

THE ACTION - CASE NO. 3:15-CV-05429 JST

Plaintiff Jeffrey Csoka ("Plaintiff"), nominal defendant XOMA Corporation ("XOMA"), 

and individual defendants Patrick J. Scannon, John W. Varian ("Varian"), Paul D. Rubin 

("Rubin"), William K. Bowes Jr., Peter Barton Hutt, Joseph M. Limber, W. Denman Van Ness, 

Timothy P. Walbert, Jack Wyszomierski, and Kelvin M. Neu (the "Individual Defendants," and 

together with XOMA, the “Defendants”), by and through their undersigned counsel, stipulate as 

follows: 

WHEREAS, on July 24, 2015, a securities class action (the "Securities Action") was filed 

in the U.S. District Court for the Northern District of California against XOMA and defendants 

Varian and Rubin, captioned Markette v. XOMA Corporation, et al., No. 3:15-cv-03425-HSG, 

and several motions for the appointment of lead plaintiff and lead counsel have been filed in the 

Securities Action;

WHEREAS the factually related above-captioned shareholder derivative action (the 

"Derivative Action") alleges, among other things, breaches of fiduciary duties and violations of 

law by certain of the directors and officers of XOMA;

WHEREAS, a factually related shareholder derivative complaint, captioned Silva v. 

Scannon, et al., Sup. Ct. Case No. RG15787990, was previously filed on October 1, 2015 and is

pending before the Superior Court of the State of California, County of Alameda (the “State 

Derivative Action”);

WHEREAS, Defendants intend to file a motion to dismiss in the Securities Action and, if 

any amended complaints are filed therein, Defendants intend to file motions to dismiss the 

amended complaints as well;

WHEREAS, the State Derivative Action has been stayed pending further developments

in the Securities Action;

WHEREAS, Plaintiff and Defendants (collectively, the "Parties") in the Derivative 

Action have met and conferred regarding the most efficient manner in which to proceed;

WHEREAS, the Parties agree that the ruling on any anticipated motions to dismiss in the 

Securities Action may help inform the manner in which the Derivative Action proceeds; and

Case 3:15-cv-05429-JST Document 23 Filed 05/19/16 Page 2 of 6
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3.

STIPULATION AND [PROPOSED] ORDER STAYING

THE ACTION - CASE NO. 3:15-CV-05429 JST

WHEREAS, based upon the circumstances unique to the Derivative Action and in 

furtherance of the goal of judicial economy, the Parties agree that the interests of justice and 

efficient and effective case management would best be served by staying the Derivative Action

pending a resolution of all motions to dismiss in the Securities Action; 

NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED by the Parties, 

through their respective counsel of record, as follows:

TEMPORARY STAY OF THE DERIVATIVE ACTION

1. Subject to paragraph 2 below, all proceedings in the Derivative Action shall be 

stayed until the resolution of all motions to dismiss the Securities Action.

2. Upon expiration of the stay, the Parties in the Derivative Action will meet and 

confer in good faith to determine a schedule for the Derivative Action going forward, and will 

submit a proposed scheduling stipulation for this Court's review and approval.

3. Defendants shall not be obligated to respond to the complaint filed in the 

Derivative Action until a scheduling stipulation has been entered by the Court pursuant to 

paragraph 2 above after the stay has been lifted. Notwithstanding the stipulated stay, Plaintiff

shall be permitted to file an amended complaint during the pendency of the stay, but Defendants 

shall be under no obligation to respond to any complaint while the stay is in effect. Defendants 

reserve all of their defenses to the claims asserted by Plaintiff and other rights, and the stay shall 

not be, and shall not be deemed, a waiver of any of Defendants' defenses or other rights.

4. The Parties agree that any challenges to Plaintiff's allegations that demand on the 

XOMA Board of Directors (the "Board") is or was futile will be determined based on the 

composition of the Board as of the time the first complaint in this action was filed.

5. This Stipulation shall not preclude or prevent the Parties from stipulating to, or 

moving for, a court order lifting, modifying or extending the terms of this Stipulation upon a 

showing of good cause.

6. By entering into this Stipulation, the Parties do not waive any rights not 

specifically addressed herein, including the right to file any motion any party deems appropriate 

once this case is no longer temporarily stayed.

Case 3:15-cv-05429-JST Document 23 Filed 05/19/16 Page 3 of 6
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4.

STIPULATION AND [PROPOSED] ORDER STAYING

THE ACTION - CASE NO. 3:15-CV-05429 JST

IT IS SO STIPULATED.

Dated: May 18, 2016 COOLEY LLP

JESSICA VALENZUELA SANTAMARIA (220934)

JOHN C. DWYER (136533)

AMANDA A. MAIN (260814)

BRETT H. DE JARNETTE (292919)

 /s/ Jessica Valenzuela Santamaria

Jessica Valenzuela Santamaria (220934)

Attorneys for Defendants JOHN VARIAN, PAUL D. 

RUBIN, PATRICK J. SCANNON, WILLIAM K.

BOWES, JR., PETER BARTON HUTT, JOSEPH M. 

LIMBER, W. DENMAN VAN NESS, TIMOTHY P. 

WALBERT, AND JACK L. WYSZOMIERSKI and 

Nominal Defendant XOMA CORPORATION

Dated: May 18, 2016 LAW OFFICE OF ADAM R. BERNSTEIN

ADAM BERNSTEIN (132982)

 /s/ Adam Bernstein

Adam Bernstein (132982)

198 Coffeeberry Dr.

San Jose, CA, 95123

Telephone: (408) 960-6511

Facsimile: (408) 613-2489

Email: bernsteinlaw@earthlink.net

THE BROWN LAW FIRM, P.C.

TIMOTHY W. BROWN

127A Cove Road

Oyster Bay Cove, New York 11771

Telephone: (516) 922-5427

Email: tbrown@thebrownlawfirm.net

Attorneys for Plaintiff JEFFREY CSOKA

Case 3:15-cv-05429-JST Document 23 Filed 05/19/16 Page 4 of 6
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5.

STIPULATION AND [PROPOSED] ORDER STAYING

THE ACTION - CASE NO. 3:15-CV-05429 JST

ATTESTATION OF CONCURRENCE IN FILING

Pursuant to Local Rule 5-1 of The United States District Court for the Northern District of 

California, I, Jessica Valenzuela Santamaria, hereby attest that the concurrence to the filing of the 

foregoing document has been obtained from Adam Bernstein, who provided the conformed 

signature above. 

Dated: May 18, 2016 COOLEY LLP

JESSICA VALENZUELA SANTAMARIA (220934)

JOHN C. DWYER (136533)

AMANDA A. MAIN (260814)

BRETT H. DE JARNETTE (292919)

 /s/ Jessica Valenzuela Santamaria

Jessica Valenzuela Santamaria (220934)

Attorneys for Defendants JOHN VARIAN, PAUL D. 

RUBIN, PATRICK J. SCANNON,

WILLIAM K. BOWES, JR., PETER BARTON HUTT,

JOSEPH M. LIMBER, W. DENMAN VAN NESS, 

TIMOTHY P. WALBERT, AND JACK L.

WYSZOMIERSKI and Nominal Defendant XOMA 

CORPORATION

Case 3:15-cv-05429-JST Document 23 Filed 05/19/16 Page 5 of 6
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6.

STIPULATION AND [PROPOSED] ORDER STAYING

THE ACTION - CASE NO. 3:15-CV-05429 JST

PURSUANT TO STIPULATION, IT IS SO ORDERED

DATED: _____________________ __________________________________________

Honorable Jon S. Tigar

United States District Judge

131364849

May 19, 2016

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

 Judge Jon S. Tigar 

Case 3:15-cv-05429-JST Document 23 Filed 05/19/16 Page 6 of 6