Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_02-cv-05344/USCOURTS-cand-3_02-cv-05344-2/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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States District C

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For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

CHRISTINE KUEHBECK,

Plaintiff,

 v.

 GENESIS MICROCHIP, INC., et al.,

Defendants.

 /

No. C 02-05344 JSW

ORDER PRELIMINARILY

APPROVING SETTLEMENT AND

PROVIDING FOR NOTICE

WHEREAS, a consolidated class action is pending before the Court entitled Christine

Kuehbeck v. Genesis Microchip Inc., et al., No. C02-05344 JSW (the “Litigation”);

WHEREAS, the Court has received the Stipulation of Settlement dated as of May 25,

2006 (the “Stipulation”), that has been entered into by the Lead Plaintiff and Defendants, and

the Court has reviewed the Stipulation and its attached Exhibits; and

WHEREAS, the parties having made application, pursuant to Federal Rule of Civil

Procedure 23(e), for an order preliminarily approving the settlement of this Litigation, in

accordance with the Stipulation which, together with the Exhibits annexed thereto sets forth

the terms and conditions for a proposed settlement of the Litigation and for dismissal of the

Litigation with prejudice upon the terms and conditions set forth therein; and the Court having

read and considered the Stipulation and the Exhibits annexed thereto; and

WHEREAS, all defined terms contained herein shall have the same meanings as set

forth in the Stipulation;

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NOW, THEREFORE, IT IS HEREBY ORDERED:

1. The Court does hereby preliminarily approve the Stipulation and the settlement

set forth therein, subject to further consideration at the Settlement Hearing described below.

2. A hearing (the “Settlement Hearing”) shall be held before this Court on

December 8, 2006, 2006, at 9:00 a.m., at the United States Courthouse, 450 Golden Gate

Avenue, San Francisco, California, to determine whether the proposed settlement of the

Litigation on the terms and conditions provided for in the Stipulation is fair, reasonable and

adequate to the Settlement Class and should be approved by the Court; whether a Judgment as

provided in ¶1.9 of the Stipulation should be entered herein; whether the proposed Plan of

Allocation should be approved; and to determine the amount of fees and expenses that should

be awarded to Lead Counsel. The Court may adjourn the Settlement Hearing without further

notice to Members of the Settlement Class.

3. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, the Court

preliminarily certifies, for purposes of effectuating this settlement, a Settlement Class of all

Persons who purchased or acquired Genesis Microchip Inc. (“Genesis”) common stock on the

open market during the period between April 29, 2002 and June 14, 2002, inclusive. Excluded

from the Settlement Class are Defendants, members of the immediate families of the

Individual Defendants, any entity in which any Defendant has or had a controlling interest,

current or former directors and officers of Genesis, and the legal representatives, heirs,

successors, or assigns of any such excluded person or entity. Also excluded from the

Settlement Class are those Persons who timely and validly request exclusion from the

Settlement Class pursuant to the Notice of Pendency and Proposed Settlement of Class

Action. The certification of the Settlement Class shall be binding only with respect to the

settlement of the Litigation.

4. With respect to the Settlement Class, this Court preliminarily finds for purposes

of effectuating this settlement that (a) the Members of the Settlement Class are so numerous

that joinder of all Settlement Class Members in the Litigation is impracticable; (b) there are

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questions of law and fact common to the Settlement Class which predominate over any

individual questions; (c) the claims of the Lead Plaintiff are typical of the claims of the

Settlement Class; (d) the Lead Plaintiff and Lead Counsel have fairly and adequately

represented and protected the interests of all of the Settlement Class Members; and (e) a class

action is superior to other available methods for the fair and efficient adjudication of the

controversy, considering: (i) the interests of the Members of the Settlement Class in

individually controlling the prosecution of the separate actions; (ii) the extent and nature of

any litigation concerning the controversy already commenced by Members of the Settlement

Class: (iii) the desirability or undesirability of continuing the litigation of these claims in this

particular forum; and (iv) the difficulties likely to be encountered in the management of the

Litigation.

5. The Court approves, as to form and content, subject to the modifications

required by this Order, the Notice of Pendency and Proposed Settlement of Class Action (the

“Notice”), the Proof of Claim and Release form (the “Proof of Claim”), the Publication Notice

and Press Release Notice annexed as Exhibits A-1, A-2, A-3 and A-4 to Docket Entry 88 in

this case, the Proposed Order submitted by the parties, and finds that the mailing and

distribution of the Notice and publication dissemination of the Publication Notice and Press

Release Notice substantially in the manner and form set forth in ¶¶ 6-7 of this Order meet the

requirements of Federal Rule of Civil Procedure 23 and due process, and is the best notice

practicable under the circumstances and shall constitute due and sufficient notice to all Persons

entitled thereto. The parties shall add the following language at the end of the third full

paragraph on page 5 of the Notice, regarding those persons whose allocation of the Net

Settlement Fund would be less than $10.00: “Those Class Members should give serious

considerations to their rights, including the right to request exclusion from the

Settlement.” 

The parties shall also make the times for filing exclusions from the Settlement,

objections to the Settlement, and intention to appear at the Fairness Hearing set forth in

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the Notice, consistent with the terms of this Order, i.e. any exclusions, objections, and

intentions to appear shall be filed and served no later than twenty-one (21) calendar days

before the Fairness Hearing.

6. Pursuant to Rule 53(c) of the Federal Rules of Civil Procedure, the Court

appoints the firm of Garden City Group (“Claims Administrator”) to supervise and administer

the notice procedure as well as the processing of claims as more fully set forth below:

(a) Not later than fourteen (14) days after entry of this Order (the “Notice

Date”), Lead Counsel shall cause a copy of the Notice and the Proof of Claim, substantially in

the forms annexed as Exhibits A-1 and A-2 to Docket Number 88 the Proposed Order

submitted by the Parties, to be mailed by first class mail to all Settlement Class Members

who can be identified with reasonable effort;

(b) Not later than twenty-one (21) days after entry of this Order, Lead

Counsel shall cause the Publication Notice to be published once in Investor’s Business Daily

and the Press Release Notice to be issued once over Business Wire; and

(c) At least Fourteen (14) calendar days prior to the Settlement Hearing,

Lead Counsel shall cause to be served on Defendants’ counsel and filed with the Court proof,

by affidavit or declaration, of such dissemination of notice. 

7. Nominees who purchased or acquired Genesis common stock on the open

market during the period beginning April 29, 2002 through June 14, 2002, inclusive, on behalf

of beneficial owners, shall send the Notice and the Proof of Claim to all such beneficial

owners of such Genesis common stock within ten (10) days after receipt thereof, or send a list

of the names and addresses of such beneficial owners to the Claims Administrator within ten

(10) days of receipt thereof, in which event the Claims Administrator shall promptly mail the

Notice and Proof of Claim to such beneficial owners. Lead Counsel shall, if requested,

reimburse banks, brokerage houses or other nominees solely for their reasonable out-of-pocket

expenses incurred in providing notice to beneficial owners who are Settlement Class Members

out of the Class Notice and Administration Fund, which expenses would not have been

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incurred except for the sending of such notice, subject to further order of this Court with

respect to any dispute concerning such compensation.

8. All Members of the Settlement Class shall be bound by all determinations and

judgments in the Litigation concerning the settlement, whether favorable or unfavorable to the

Settlement Class.

9. Settlement Class Members who wish to participate in the settlement shall

complete and submit Proof of Claim forms in accordance with the instructions contained

therein. Unless the Court orders otherwise, all Proof of Claim forms must be submitted no

later than one hundred twenty (120) days from the Notice Date. Any Settlement Class

Member who does not timely submit a Proof of Claim within the time provided for shall be

barred from sharing in the distribution of the proceeds of the Net Settlement Fund, unless

otherwise ordered by the Court.

10. Any Person who desires to request exclusion from the Settlement Class shall do

so within the time set forth and in the manner described in the Notice. All Persons who submit

valid and timely Requests for Exclusion in the manner set forth in the Notice shall have no

rights under the Stipulation, shall not share in the distribution of the Net Settlement Fund, and

shall not be bound by the Stipulation or the Judgment entered in the Litigation.

11. Any Member of the Settlement Class may enter an appearance in the Litigation,

at their own expense, individually or through counsel of their own choice. If they do not enter

an appearance, they will be represented by Lead Counsel.

12. Any Member of the Settlement Class may appear and show cause, if he, she or

it has any reason, why the proposed settlement of the Litigation should or should not be

approved as fair, reasonable and adequate, why a judgment should or should not be entered

thereon, why the Plan of Allocation should or should not be approved, or why attorneys’ fees

and expenses should or should not be awarded to Lead Counsel; provided, however, that no

Settlement Class Member or any other Person shall be heard or entitled to contest the approval

of the terms and conditions of the proposed settlement, or, if approved, the Judgment to be

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entered thereon approving the same, or the order approving the Plan of Allocation, or the

attorneys’ fees and expenses to be awarded to Lead Counsel, unless that Person has delivered

by hand or sent by first class mail written objections and copies of any papers and briefs such

that they are received on or before twenty-one (21) calendar days prior to the Settlement

Hearing, by: Wolf Popper LLP, Robert C. Finkel, Danielle Disporto, 845 Third Avenue, New

York, New York 10022; and Wilson Sonsini Goodrich & Rosati, P.C., Nina F. Locker, Ignacio

E. Salceda, Bahram Seyedin-Noor, 650 Page Mill Road, Palo Alto, California 94304, and filed

said objections, papers and briefs with the Clerk of the United States District Court for the

Northern District of California, on or before twenty-one (21) calendar days prior to the

Settlement Hearing. Any Member of the Settlement Class who does not make his, her or its

objection in the manner provided shall be deemed to have waived such objection and shall

forever be foreclosed from making any objection to the fairness or adequacy of the proposed

settlement as set forth in the Stipulation, to the Plan of Allocation, or to the award of attorneys’

fees and expenses to Lead Counsel, unless otherwise ordered by the Court.

13. All funds held by the Escrow Agent shall be deemed and considered to be in

custodia legis of the Court, and shall remain subject to the jurisdiction of the Court, until such

time as such funds shall be distributed pursuant to the Stipulation and/or further order(s) of the

Court.

14. All papers in support of the settlement, the Plan of Allocation, and the

application by Lead Counsel for attorneys’ fees or reimbursement of expenses shall be filed

and served thirty-five (35) calendar days before the Settlement Hearing.

15. Neither Defendants nor their Related Parties shall have any responsibility for or

liability with respect to the Plan of Allocation or any application for attorneys’ fees or

reimbursement of expenses submitted by Lead Counsel, and such matters will be considered

separately from the fairness, reasonableness and adequacy of the settlement.

16. At or after the Settlement Hearing, the Court shall determine whether the Plan

of Allocation proposed by Lead Counsel, and any application for attorneys’ fees or

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reimbursement of expenses shall be approved.

17. All reasonable expenses incurred in identifying and notifying Settlement Class

Members, as well as administering the Settlement Fund, shall be paid as set forth in the

Stipulation. In the event the settlement is not approved by the Court, or otherwise fails to

become effective, neither the Lead Plaintiff nor Lead Counsel shall have any obligation to

repay any amounts actually and properly disbursed from the Class Notice and Administration

Fund.

18. Neither the Stipulation, nor any of its terms or provisions, nor any of the

negotiations or proceedings connected with it, shall be construed as an admission or

concession by Defendants or their Related Parties of the truth of any of the allegations in the

Litigation, or of any liability, fault, or wrongdoing of any kind.

19. The Court reserves the right to adjourn the date of the Settlement Hearing

without further notice to the Members of the Settlement Class, and retains jurisdiction to

consider all further applications arising out of or connected with the proposed settlement. The

Court may approve the settlement, with such modifications as may be agreed to by the Settling

Parties, if appropriate, without further notice to the Settlement Class.

IT IS SO ORDERED.

Dated: August 3, 2006 

JEFFREY S. WHITE

UNITED STATES DISTRICT JUDGE

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