Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_06-cv-04910/USCOURTS-cand-5_06-cv-04910-3/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 28:1331 Fed. Question

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[PROPOSED] ORDER AND FINAL JUDGMENT -- LEAD CASE NO. CV 06-04269 JW 

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

In re APPLIED MICRO CIRCUITS 

CORPORATION, INC. DERIVATIVE 

LITIGATION 

_______________________________________

This Document Relates To: 

 ALL ACTIONS. 

_______________________________________

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LEAD CASE NO. CV 06-04269-JW 

[PROPOSED] ORDER AND FINAL 

JUDGMENT

DATE: May 5, 2008 

TIME: 9:00 a.m. 

CRTRM: 8, 4th Floor 

JUDGE: Hon. James Ware 

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

AS MODIFIED

Judge James Ware

Case 5:06-cv-04910-JW Document 29 Filed 05/08/08 Page 1 of 6
[PROPOSED] ORDER AND FINAL JUDGMENT -- LEAD CASE NO. CV 06-04269 JW 

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WHEREAS, this matter having come before the Court for final approval of the proposed 

settlement of this action; 

WHEREAS, the parties to the above-captioned action (the “Action”) entered into a 

Stipulation of Settlement dated as of January 28, 2008 (the “Stipulation”), and have applied to this 

Court for final approval of the settlement provided for therein (the “Settlement”) pursuant to Rule 

23.1 of the Federal Rules of Civil Procedure (“Rule 23.1”); 

WHEREAS, on February 27, 2008, this Court entered a Corrected Preliminary Approval 

Order (“Preliminary Order”), preliminarily approving the Settlement and requiring notice to 

stockholders of Applied Micro Circuits Corporation, Inc. (“AMCC” or “the Company”), who held 

shares of AMCC common stock on January 28, 2008, by mailing via first-class mail to each 

shareholder of record the Notice and by publishing by news wire the Summary Notice; 

WHEREAS, the Preliminary Order set a hearing for May 5, 2008, to determine whether: 

 (i) the plaintiffs fairly and adequately represent the interests of the shareholders in 

enforcing the right of the Company; 

(ii) the proposed Settlement should be approved as fair, reasonable and adequate; 

(iii) final judgment should be entered thereon dismissing the Litigation with prejudice; 

and 

 (iv) whether Plaintiffs’ Counsel’s application for an award of attorneys’ fees and 

reimbursement of expenses should be granted; 

WHEREAS, notice has been provided to stockholders of AMCC in compliance with the 

Preliminary Order; and 

WHEREAS, in accordance with the Preliminary Order and the notice described therein, a 

hearing was held on May 5, 2008, all interested parties were afforded an opportunity to be heard, and 

the Court made certain findings of fact and conclusions of law, as set forth in the transcript of that 

hearing; 

NOW, THEREFORE, it is ORDERED, ADJUDGED AND DECREED pursuant to Rule 

23.1 that: 

 WHEREAS, on May 5, 2008, the Court conducted a hearing on Final Approval of the 

Proposed Settlement of the above entitled action. Upon consideration of the parties' arguments, 

including those of the objectors, the Court ORDERS as follows: 

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1. The terms and definitions employed in the Stipulation are incorporated by reference 

and adopted herein. 

2. This Court has jurisdiction over the subject matter of the Litigation, over all parties to 

the Litigation and over those persons and entities that objected to the Settlement. 

3. The Settlement of the Litigation is, in all respects, fair, reasonable and adequate, is in 

accordance with Rule 23.1 and is in the best interest of AMCC and its shareholders and should be 

approved. Accordingly, the Stipulation and Settlement are hereby approved. 

4. The notice provided for in the Preliminary Order constitutes the best notice 

practicable under the circumstances and is in full compliance with the notice requirements of due 

process and Rule 23.1. 

5. The Consolidated Amended Shareholder Derivative Complaint filed in the Litigation 

is hereby dismissed in its entirety, with prejudice and without costs to any party, other than as set 

forth in the Stipulation and this Order and Final Judgment. 

6. The Court hereby approves the release provisions of the Stipulation in favor of the 

Individual Defendants and others, and directs that, in consideration of the terms and conditions of the 

Stipulation, upon the Effective Date, Plaintiffs and any other present stockholders of the Company 

(claiming by, through, in the right of, or on behalf of the Company), and the Company (or any 

person claiming by, through, in the right of, or on behalf of the Company, by subrogation, 

assignment or otherwise) fully, finally and forever release, relinquish and discharge all Released 

Claims against the Released Persons and the Related Persons, including the claims that were made 

derivatively on behalf of AMCC in In re Applied Micro Circuits Corporation Shareholder 

Derivative Litigation, Case No. 1-06-CV-069540, California Superior Court, County of Santa Clara 

(“State Court Action”). 

7. The Court hereby approves the release provisions of the Stipulation in favor of 

Plaintiffs and others, and directs that, in consideration of the terms and conditions of the Stipulation, 

upon the Effective Date, each of the Defendants, the Released Persons and the Related Persons, 

fully, finally and forever release, relinquish and discharge Plaintiffs and their counsel from all claims 

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arising out of, or relating to or in connection with, their institution, prosecution, assertion or 

resolution of the Litigation or the Released Claims. 

8. The Court hereby approves the Parties’ (i) acknowledgment that after the signing of 

the Stipulation they may discover facts in addition to or different from those which they then know 

or believe to be true and their agreement that, in such event, the releases set forth above shall 

nonetheless remain effective in all respects; and (ii) waiver of any and all provisions, rights and 

benefits conferred by any law of any state or territory of the United States, or principle of common 

law that is similar, comparable or equivalent to Section 1542 of the California Civil Code. 

 9. AMCC has adopted or will adopt certain additional corporate governance measures 

set forth in Exhibit A to the Stipulation, and, with respect to ongoing obligations created by those 

changes, AMCC shall keep such obligations in force and substantially similar form, for a period of at 

least ten years from the date of the Stipulation, unless a majority of the shareholders of AMCC vote 

to amend these obligations. Notwithstanding the foregoing, in no event shall AMCC be obligated to 

adopt, implement or enforce any measures that, either now or in the future, conflict with or are 

otherwise inconsistent with any NASDAQ National Market listing requirements, the listing 

requirements of any exchange on which its stock is traded, any regulations of the Securities and 

Exchange Commission or any applicable law. 

10. Plaintiffs’ Counsel are hereby awarded attorneys’ fees and expenses in the amount of 

$____________, with such payment to be made in accordance with the terms of the Stipulation. 

11. This Order and Final Judgment, the Stipulation, all exhibits thereto, and any and all 

negotiations, papers, writings, statements and/or proceedings related to the Settlement are not, and 

shall not in any way be used or construed as (a) an admission, or evidence of, the validity of any 

Released Claim or of any wrongdoing or liability of the Individual Defendants; or (b) an admission 

of, or evidence of, any fault or omission of any of the Individual Defendants in any civil, criminal or 

administrative proceeding in any court, administrative agency or other tribunal, other than in such 

proceedings as may be necessary to consummate or enforce the Stipulation, the Settlement or this 

Order and Final Judgment, except that the Defendants may file the Stipulation and/or the Order and 

Final Judgment in any action that may be brought against them in order to support a defense or 

905,000.00

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counterclaim based on principles of res judicata, collateral estoppel, release, good faith settlement, 

judgment reduction or any other theory of claim preclusion or issue preclusion or similar defense or 

counterclaim, including but not limited to the State Court Action. 

12. Without affecting the finality of this Order and Final Judgment in any way, this Court 

hereby retains jurisdiction with respect to implementation and enforcement of the terms of the 

Stipulation, including effectuating the release of claims in related proceedings such as the State 

Court Action and all parties hereto submit to the jurisdiction of the Court for the purposes of 

implementing and enforcing the Settlement embodied in the Stipulation. 

13. In the event that the Effective Date does not occur in accordance with the terms of the 

Stipulation, including effectuating the release of claims in related proceedings such as the State 

Court Action this Order and Final Judgment shall be vacated, and all Orders entered and releases 

delivered in connection with the Stipulation and Order and Final Judgment shall be null and void, 

except as otherwise provided for in the Stipulation. 

SO ORDERED. 

DATED: ____________, 2008 __________________________________________ 

 JAMES WARE 

 UNITED STATES DISTRICT COURT JUDGE 

Submitted by, 

WOLF HALDENSTEIN ADLER 

 FREEMAN & HERZ LLP 

FRANCIS M. GREGOREK 

RACHELE R. RICKERT 

 /s/ Rachele R. Rickert 

 RACHELE R. RICKERT 

750 B Street, Suite 2770 

San Diego, CA 92101 

Telephone: 619/239-4599 

Facsimile: 619/234-4599 

May 8

The Clerk shall close this file.

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WOLF HALDENSTEIN ADLER 

FREEMAN & HERZ LLP 

LAWRENCE P. KOLKER 

GUSTAVO BRUCKNER 

RACHEL S. POPLOCK 

270 Madison Avenue 

New York, NY 10016 

Telephone: 212/545-4600 

Facsimile: 212/545-4653 

Lead Counsel for Plaintiffs 

GAINEY & McKENNA 

THOMAS J. MCKENNA 

295 Madison Avenue, 4th Floor 

New York, NY 10017 

Telephone: 212/983-1300 

Facsimile: 212/983-0383 

Attorneys for Plaintiff Francesco Ciabatti 

LAW OFFICES OF JACOB T. FOGEL, P.C. 

JACOB T. FOGEL 

32 Court Street – Suite # 602 

Brooklyn, New York 11201 

Attorneys for Plaintiff Pinchus Berliner 

AMCC:15631.ORD

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