Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_13-cv-05768/USCOURTS-cand-4_13-cv-05768-0/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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NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

[PROPOSED] ORDER AND FINAL JUDGMENT 

 A hearing having been held before this Court (the “Court”) on October 25, 2016, pursuant to 

the Court’s Order of August 23, 2016 (the “Scheduling and Preliminary Approval Order,” Dkt. No. 

34), upon a Stipulation and Agreement of Compromise, Settlement and Release, executed on June 

29, 2016 (the “Stipulation”), in the above-captioned stockholder derivative action (the “Derivative 

Action”); the Scheduling and Preliminary Approval Order and the Stipulation being incorporated 

herein by reference; it appearing that due notice of said hearing was given in accordance with the 

aforementioned Scheduling and Preliminary Approval Order and that said notice was adequate and 

TROY LOWRY, derivatively on behalf of 

VIOLIN MEMORY, INC., 

 Plaintiff, 

VS. 

DONALD G. BASILE, CORY JOSEPH 

SINDELAR, DIXON RAYMOND DOLL, 

JR., JEFFREY J. NEWMAN, HOWARD 

ALLEN BAIN III, LAWRENCE J. LANG, 

DAVID BRADLEY WALROD, and MARK 

NEAL ROSENBLATT, 

 Defendants, 

-andVIOLIN MEMORY, INC., 

Nominal Defendant.

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Docket No. 4:13-CV-05768-YGR 

*AS MODIFIED BY THE COURT* 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 1 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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sufficient; the parties having appeared by their attorneys of record; the attorneys for the respective 

parties having been heard in support of the proposed settlement (the “Settlement”) of the Derivative 

Action; and an opportunity to be heard having been given to all other persons desiring to be heard as 

provided in the notice; and the entire matter of the Settlement having been considered by the Court; 

 IT IS HEREBY ORDERED, ADJUDGED AND DECREED as follows: 

 1. Unless otherwise defined herein, all defined terms shall have the meanings as set 

forth in the Stipulation. 

 2. The Notice of Settlement of Stockholder Derivative Litigation has been given to 

stockholders of Violin Memory, Inc. (the “Company”) pursuant to and in the manner directed by the 

Preliminary Approval Order; proof of publication of the required notice was filed with the Court; 

and full opportunity to be heard has been offered to all parties, Company stockholders and persons in 

interest. The form and manner of the notice provided is hereby confirmed to have been the best 

notice practicable under the circumstances and to have been given in full compliance with each of 

the requirements of Federal Rule of Civil Procedure 23.1, due process and applicable law, and it is 

further determined that all Company stockholders are bound by the Order and Final Judgment 

herein. 

 3. The Court reconfirms that, for settlement purposes only, the Derivative Action is 

properly maintained as a shareholder derivative action on behalf of the Company, and that Plaintiff 

fairly and adequately represented the interests of stockholders similarly situated in enforcing the 

rights of Company stockholders. Counsel for Plaintiff is authorized to act on behalf of Company 

stockholders with respect to all acts required by the Stipulation or such other acts which are 

reasonably necessary to consummate the Settlement set forth in the Stipulation. 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 2 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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 4. The Settlement is found to be fair, reasonable and adequate, and is hereby approved 

pursuant to Federal Rule of Civil Procedure 23.1. The parties to the Stipulation are hereby 

authorized and directed to comply with and to consummate the Settlement in accordance with its 

terms and provisions, and the Clerk is directed to enter and docket this Order and Final Judgment in 

the Action. 

 5. This Court has jurisdiction over the subject matter of the Derivative Action, including 

all matters necessary to effectuate the Settlement and this Final Judgment and over all parties to the 

Derivative Action. 

 6. The Derivative Action and the Released Claims are hereby dismissed on the merits 

with prejudice as to all Defendants in the Derivative Action and against all Released Parties on the 

merits and, except as provided below in Paragraph 14, without fees or costs. 

 7. “Released Claims” means any and all manner of claims, demands, rights, liabilities, 

losses, obligations, duties, damages, costs, debts, expenses, interest, penalties, sanctions, fees, 

attorneys’ fees, actions, potential actions, causes of action, suits, actions taken pursuant to the 

Stipulation, agreements, judgments, decrees, matters, issues and controversies of any kind, nature or 

description whatsoever, whether known or unknown, disclosed or undisclosed, accrued or 

unaccrued, apparent or not apparent, foreseen or unforeseen, matured or not matured, suspected or 

unsuspected, liquidated or not liquidated, fixed or contingent, including Unknown Claims (defined 

below), whether based on state, local, foreign, federal, statutory, regulatory, common or other law or 

rule, brought or that could be brought derivatively or otherwise by or on behalf of the Company 

against any of the Released Parties (defined below), which now or hereafter are based upon, arise out 

of, relate in any way to, or involve, directly or indirectly, any of the actions, transactions, 

occurrences, statements, representations, misrepresentations, omissions, allegations, facts, practices, 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 3 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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events, claims or any other matters, things or causes whatsoever, or any series thereof, that are, were, 

could have been, or in the future can or might be alleged, asserted, set forth, claimed, embraced, 

involved or referred to in the Derivative Action. For the avoidance of doubt, the Released Claims do 

not include any direct claims on behalf of present or former Company stockholders that are being 

prosecuted in the Securities Class Action. 

 8. “Released Parties” means (i) the Defendants, including the Individual Defendants 

Donald G. Basile, Cory J. Sindelar, Dixon R. Doll, Jeffery J. Newman, Howard A. Bain III, 

Lawrence J. Lang, David B. Walrod, and Mark N. Rosenblatt, and the nominal defendant Violin 

Memory; (ii) all other current and former employees, officers, directors and advisers of the 

Company; and (iii) for each and all of the foregoing persons or entities (but only to the extent such 

persons are released as provided above), any and all of their respective past or present family 

members, spouses, heirs, trusts, trustees, executors, estates, administrators, beneficiaries, 

distributees, foundations, agents, employees, fiduciaries, partners, partnerships, general or limited 

partners or partnerships, joint ventures, member firms, limited-liability companies, corporations, 

parents, subsidiaries, divisions, affiliates, associated entities, stockholders, principals, officers, 

managers, directors, managing directors, members, managing members, managing agents, 

predecessors, predecessors-in-interest, successors, successors-in-interest, assigns, financial or 

investment advisors, advisors, consultants, investment bankers, entities providing any fairness 

opinion, underwriters, brokers, dealers, lenders, commercial bankers, attorneys, personal or legal 

representatives, accountants and associates. 

 9. Plaintiff, the Company and by operation of law all Company stockholders, shall and 

hereby do completely, fully, finally and forever release, relinquish, settle and discharge each and all 

of the Released Parties from and with respect to any and all of the Released Claims, and will be 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 4 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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forever barred and enjoined from commencing, instituting or prosecuting any action or proceeding, 

in any forum, asserting any of the Released Claims against any of the Released Parties. 

 10. Defendants, individually and collectively, shall and hereby do completely, fully, 

finally and forever release, relinquish, settle and discharge the Plaintiff and counsel for Plaintiff from 

and with respect to any and all claims arising out of or relating to the initiation, prosecution and 

resolution of the Derivative Action, excepting any claim to enforce the Stipulation or Settlement. 

 11. The Releases include any claims of Plaintiff or the Company or any Company 

stockholder that he, she or it does not know or suspect exist in his, her or its favor at the time of the 

releases of the Released Claims against the Released Parties, including without limitation those 

which, if known, might have affected the decision to enter into or to object to the Settlement 

(“Unknown Claims”). Plaintiff and the Company shall have, and all Company stockholders shall be 

deemed to have, and by operation of the final order and judgment by the Court shall have, expressly 

waived, relinquished and released any and all provisions, rights and benefits conferred by or under 

California Civil Code § 1542 or any law or principle of common law of the United States or any 

state or territory of the United States which is similar, comparable or equivalent to California Civil 

Code § 1542, which provides: 

 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH 

THE CREDITOR DOES NOT KNOW OR SUSPECT EXIST IN HIS OR 

HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, 

WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY 

AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

Plaintiff and the Company acknowledge, and all Company stockholders by operation of law shall be 

deemed to have acknowledged, that they may discover facts in addition to or different from those 

now known or believed to be true with respect to the Released Claims, but that it is the intention of 

Plaintiff, the Company and all Company stockholders by operation of law, to completely, fully, 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 5 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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finally and forever extinguish any and all Released Claims, known or unknown, suspected or 

unsuspected, which now exist, heretofore existed or may hereafter exist, and without regard to the 

subsequent discovery of additional or different facts. Plaintiff and the Company acknowledge, and 

all Company stockholders by operation of law shall be deemed to have acknowledged, that the 

inclusion of “Unknown Claims” in the definition of “Released Claims” was separately bargained for 

and was a material element of the Settlement and was relied upon by each and all of Defendants in 

entering into the Settlement Agreement. 

 12. Plaintiff, the Company and each and every Company stockholder are hereby 

permanently barred and enjoined from asserting, commencing, prosecuting, assisting, instigating, 

continuing or in any way participating in the commencement or prosecution of any action, whether 

directly, representatively, derivatively or in any other capacity, asserting any of the Released Claims 

that are released pursuant to this Order and Final Judgment or under the Stipulation. 

 13. Neither the Stipulation, the Settlement, this Order and Final Judgment, nor any act 

performed, statement made or document executed pursuant to or in furtherance of the Settlement is 

or may be construed or deemed to be, a presumption, concession or admission (i) by any of the 

Released Parties or any other person of any fault, liability or wrongdoing as to any facts or claims 

alleged or asserted in the Derivative Action or otherwise or that the Company, Plaintiff, counsel for 

Plaintiff, any present or former stockholders of the Company, or any other person, have suffered any 

damage attributable in any manner to any of the Released Parties; or (ii) by Plaintiff or counsel for 

Plaintiff of any lack of merit of the Released Claims, or that the Company has not suffered 

cognizable damages caused by Defendants. The existence of the Stipulation and its contents, the 

Settlement, this Order and Final Judgment or any negotiations, statements or proceedings in 

connection therewith, shall not be offered or admitted in evidence or referred to, interpreted, 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 6 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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construed, invoked or otherwise used by any person for any purpose in the Derivative Action or 

otherwise, except as may be necessary to effectuate the Settlement. Notwithstanding the foregoing, 

any of the Released Parties may file the Stipulation or any judgment or order of the Court related 

hereto in any other action that may be brought against them, in order to support any and all defenses 

or counterclaims based on res judicata, collateral estoppel, release, good-faith settlement, judgment 

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

counterclaim. 

 14. Counsel for Plaintiff are hereby awarded attorneys’ fees and expenses in the total 

amount of $280,000, which sum the Court finds to be fair and reasonable, and which shall be paid to 

Counsel for Plaintiff in accordance with the terms of the Stipulation. Plaintiff is hereby awarded 

incentive award in the total amount of $5,000, which sum shall be paid out of counsel for Plaintiff’s 

attorneys’ fees and expenses award. 

 15. The effectiveness of the Order and Final Judgment and the obligations of Plaintiff, 

counsel for Plaintiff, the Company, Company stockholders and Defendants under the Settlement 

shall not be conditioned upon or subject to the resolution of any appeal that relates solely to the issue 

of attorneys’ fees and expenses. 

 16. The Court further orders, adjudges and decrees that all other relief be, and is hereby, 

denied, and that this Order and Final Judgment disposes of all the claims and all the parties in the 

above-styled and numbered stockholder derivative action. 

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

retains jurisdiction over all matters relating to the administration and consummation of the 

Settlement and all parties hereto for the purpose of construing, enforcing and administering the 

Settlement. 

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 7 of 8
NO. 4:13-CV-05768-YGR 

[PROPOSED] ORDER AND FINAL JUDGMENT 

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 18. In the event that the Settlement does not become effective or that Defendants exercise 

their right to terminate the Settlement in accordance with the terms of the Stipulation, then this Order 

and Final Judgment shall be rendered null and void to the extent provided by and in accordance with 

the Stipulation and shall be vacated, and, in such event, all orders entered and releases delivered in 

connection herewith shall be null and void to the extent provided for and in accordance with the 

Stipulation. 

Dated: __________________ _________________________________________ 

HONORABLE YVONNE GONZALEZ ROGERS 

 UNITED STATES DISTRICT JUDGE

October 26, 2016

Case 4:13-cv-05768-YGR Document 41 Filed 10/26/16 Page 8 of 8