Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-03864/USCOURTS-cand-5_05-cv-03864-1/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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Case No. C 05-3395 JF

ORDER (1) DIRECTING THE CLERK OF THE COURT TO FILE THE COMPLAINT OF MISSISSIPPI PERS ETC.

(JFLC2)

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

ARCHDIOCESE OF MILWAUKEE

SUPPORTING FUND, INC.,

 Plaintiffs,

 v.

MERCURY INTERACTIVE CORPORATION, et

al.,

 Defendants.

Case Number C 05-3395 JF

ORDER (1) DIRECTING THE CLERK

OF THE COURT TO FILE THE

COMPLAINT OF MISSISSIPPI PERS

AND VACATING HEARING DATE

ON MISSISSIPPI PERS’ MOTION TO

INTERVENE; (2) CONSOLIDATING

THE INSTANT ACTION WITH THE

MISSISSIPPI PERS ACTION AND

THREE OTHER RELATED

SECURITIES FRAUD ACTIONS; (3)

GRANTING IN PART MISSISSIPPI

PERS’ MOTION FOR

ADMINISTRATIVE RELIEF TO

CONTINUE THE HEARING ON THE

MERCURY PENSION FUND

GROUP’S MOTION FOR

APPOINTMENT AS LEAD

PLAINTIFF; (4) CONSTRUING

MISSISSIPPI PERS’ MOTION TO

INTERVENE AS A MOTION FOR

APPOINTMENT AS LEAD

PLAINTIFF; AND (5) SETTING

BRIEFING SCHEDULE RE THE

LEAD PLAINTIFF MOTIONS

The instant action, filed on August 19, 2005, was the first of several securities fraud class

actions filed against Mercury Interactive Corporation (“Mercury”) and its officers. Three more

Case 5:05-cv-03864-JF Document 10 Filed 12/20/05 Page 1 of 5
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 A number of derivative actions have been filed as well.

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Case No. C 05-3395 JF

ORDER (1) DIRECTING THE CLERK OF THE COURT TO FILE THE COMPLAINT OF MISSISSIPPI PERS ETC.

(JFLC2)

securities fraud class actions were filed against Mercury on September 23, 2005 (Case No. C 05-

3864 JF) and October 5, 2005 (Case Nos. C 05-4031 JF and C 05-4036 JF).1 Additionally, on

November 28, 2005, the Public Employees’ Retirement System of Mississippi (“Mississippi

PERS”) filed a motion to intervene in the action, seeking leave to file its own securities fraud

class action complaint and to be appointed lead plaintiff.

The Court is somewhat puzzled by Mississippi PERS’ decision to file a motion to

intervene and, within the context of such a motion, to seek leave to file a securities fraud class

action complaint and to be appointed lead plaintiff. The Private Securities Litigation Reform Act

of 1995 (“Reform Act”), Pub.L. No. 104-67 (1995), does not require leave of court before the

filing of a class action complaint and does not appear to contemplate intervention as an

appropriate means of litigating class claims. Accordingly, the Court simply will direct the Clerk

of the Court to file Mississippi PERS’ proposed class action complaint and will vacate the

hearing date on Mississippi PERS’ motion to intervene.

Having reviewed Mississippi PERS’ complaint as well as the complaints in the related

securities fraud actions, the Court concludes that consolidation is appropriate. Accordingly, the

Court will order consolidation of the instant action with the Mississippi PERS action and related

actions C 05-3864 JF, C 05-4031 JF and C 05-4036 JF.

With respect to the appointment of lead plaintiff, the Reform Act requires that the Court

appoint the most adequate plaintiff as lead plaintiff “[a]s soon as practicable” after determining

whether related actions should be consolidated. Having determined that all of the securities fraud

class actions filed to date should be consolidated, the Court now turns to the question of

appointment of lead plaintiff.

Under the Reform Act, the first plaintiff or group of plaintiffs to file a class action

complaint must, within twenty days after filing the complaint, publish a notice advising members

of the purported plaintiff class of the pendency of the action, the claims asserted therein, the

purported class period and the fact that any member of the purported class may move to serve as

Case 5:05-cv-03864-JF Document 10 Filed 12/20/05 Page 2 of 5
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Case No. C 05-3395 JF

ORDER (1) DIRECTING THE CLERK OF THE COURT TO FILE THE COMPLAINT OF MISSISSIPPI PERS ETC.

(JFLC2)

lead plaintiff within sixty days after publication of the notice. 15 U.S.C. § 78u-4(a)(3)(A)(i). 

The notice in the instant case was published on August 21, 2005. Only one application for

appointment of lead plaintiff – that of Mercury Pension Fund Group (“Mercury Group”) filed on

October 20, 2005 – was filed within sixty days after publication of the notice. Mississippi PERS

did not file a timely motion for appointment of lead plaintiff, and in fact it still has not filed such

a motion. However, it is clear from Mississippi PERS’ motion to intervene that Mississippi

PERS in fact seeks appointment as lead plaintiff, and the Court therefore will construe the

motion to intervene as including a motion for appointment as lead plaintiff.

Mississippi PERS has filed a motion for administrative relief seeking to continue the

hearing date on the motion of Mercury Group for appointment of lead plaintiff , currently set for

December 9, 2005. The Court will grant that motion in part so that it may address the

appointment of lead plaintiff in an orderly fashion. The Court will set a briefing schedule so that

Mercury Group and Mississippi PERS may address their competing requests to serve as lead

plaintiff for the class. The Court is particularly interested in whether Mississippi PERS’ failure

to file a timely motion precludes it from considering Mississippi PERS as a candidate for lead

plaintiff. Nothing in this order should be read as a determination of the legal question, raised by

Mercury Group in its opposition to Mississippi PERS’ motion for administrative relief, of

whether Mississippi PERS is statutorily barred from seeking appointment as lead plaintiff. 

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Case 5:05-cv-03864-JF Document 10 Filed 12/20/05 Page 3 of 5
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Case No. C 05-3395 JF

ORDER (1) DIRECTING THE CLERK OF THE COURT TO FILE THE COMPLAINT OF MISSISSIPPI PERS ETC.

(JFLC2)

ORDER

(1) The Clerk of the Court SHALL FILE the proposed securities fraud class action

complaint of Mississippi PERS, submitted as Exhibit A to the Schwartz

Declaration filed in this action (Doc. No. 22), as a new action under a new case

number. The hearing date on Mississippi PERS’ motion to intervene is

VACATED; 

(2) The instant action is HEREBY CONSOLIDATED with the Mississippi PERS

action and with the following related actions: C 05-3864 JF, C 05-4031 JF and C

05-4036 JF;

(3) Mississippi PERS’ motion for administrative relief is GRANTED IN PART. The

hearing on Mercury Group’s motion for appointment of lead plaintiff is

CONTINUED to 9:00 a.m. on Friday, January 13, 2006. At that time, the Court

also will take up Mississippi PERS’ motion for appointment of lead plaintiff. 

Any supplemental briefs on these motions shall be filed on or before December

23, 2005. Any supplemental reply briefs shall be filed on or before January 6,

2006. 

DATED: 12/8/05

/s/ electronic signature authorized 

__________________________________

JEREMY FOGEL

United States District Judge

Case 5:05-cv-03864-JF Document 10 Filed 12/20/05 Page 4 of 5
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Case No. C 05-3395 JF

ORDER (1) DIRECTING THE CLERK OF THE COURT TO FILE THE COMPLAINT OF MISSISSIPPI PERS ETC.

(JFLC2)

Copies of Order served on:

Nicole Leigh Acton nicole.acton@hellerehrman.com, cynthia.kent@hellerehrman.com

Michael M. Goldberg info@glancylaw.com

Willem F. Jonckheer wjonckheer@schubert-reed.com

David R. Scott drscott@scott-scott.com

Arthur L. Shingler , III ashingler@scott-scott.com, ssawyer@scott-scott.com

Case 5:05-cv-03864-JF Document 10 Filed 12/20/05 Page 5 of 5