Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_04-cv-05222/USCOURTS-cand-3_04-cv-05222-16/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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[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 

AND PROVIDING FOR NOTICE – Case No. C 04-5222 SI - 1 -

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

In re SUPPORTSOFT, INC. 

SECURITIES LITIGATION 

This Document Relates To: 

ALL ACTIONS 

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CASE NO.: C 04-5222 SI 

CLASS ACTION 

[PROPOSED] ORDER 

PRELIMINARILY APPROVING 

SETTLEMENT AND PROVIDING 

FOR NOTICE 

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

SupportSoft Inc. Securities Litigation, Case No. C 04-5222 SI (the “Litigation”); 

WHEREAS, the Court has received the Stipulation of Settlement dated June 13, 2007 (the 

“Stipulation”), that has been entered into by the Certified Class Representative and Defendants, and 

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

WHEREAS, the parties have made an 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; 

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. 

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[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 

AND PROVIDING FOR NOTICE – Case No. C 04-5222 SI - 2 -

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

28, 2007, 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 Class and should be 

approved by the Court; whether a Judgment substantially in the form of Exhibit B to the Stipulation 

should be entered herein; whether the proposed Plan of Allocation set forth in the proposed form of 

Notice of Proposed Settlement of Class Action and Settlement Hearing (“Notice”), annexed hereto 

as Exhibit A-1, should be approved; and to determine the amount of fees and expenses that should be 

awarded to Class Counsel and the amount of costs and expenses that should be awarded to the 

Named Plaintiffs. The Court may adjourn the Settlement Hearing without further notice to Members 

of the Class. 

3. By Order dated June 1, 2006, the Court certified a Class of all Persons and entities 

who purchased or otherwise acquired the securities of SupportSoft, Inc. (“SupportSoft”) from 

January 20, 2004 to October 1, 2004 and who were damaged thereby. Excluded from the Class are 

Defendants, the officers and directors of SupportSoft at all relevant times, members of their 

immediate families and their legal representatives, heirs, successors or assigns and any entity in 

which any excluded person or entity has a controlling interest. Also excluded from the Class is Paul 

Takacs, Jr., on behalf of Wall Street Warriors Investment Club, who timely and validly requested 

exclusion from the Class pursuant to the Notice of Pendency of Class Action. 

4. The Court approves, as to form and content, the Notice, the Proof of Claim and 

Release form (the “Proof of Claim”), and Summary Notice for publication annexed as Exhibits A-1, 

A-2 and A-3 hereto, and finds that the mailing and distribution of the Notice and publishing of the 

Summary 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. 

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[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 

AND PROVIDING FOR NOTICE – Case No. C 04-5222 SI - 3 -

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5. The Court appoints the firm of Strategic Claims Services, located at 600 North 

Jackson Street - Suite 3, Media, Pennsylvania 19063 (“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 days from the date of this Order (the “Notice Date”), 

Class Counsel shall cause a copy of the Notice and the Proof of Claim, substantially in the forms 

annexed hereto as Exhibits A-1 and A-2, to be mailed by first class mail to all Class Members who 

can be identified with reasonable effort; 

(b) Not later than twenty-one days from the date of this Order, Class Counsel 

shall cause the Summary Notice to be published once in Investor’s Business Daily and once over one 

of the following services: Business Wire; PrimeZone; or PR Newswire for national distribution; and 

(c) At least seven (7) calendar days prior to the Settlement Hearing, Class 

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

or declaration, of such mailing and publishing. 

6. Nominees who purchased SupportSoft securities during the period beginning January 

20, 2004 through October 1, 2004, inclusive, shall send the Notice and the Proof of Claim to all 

beneficial owners of such SupportSoft securities 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. Class 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 Class Members out of the Class Notice and 

Administration Fund, which expenses would not have been incurred except for the sending of such 

notice, subject to further order of this Court with respect to any dispute concerning such 

compensation. 

7. All Members of the Class shall be bound by all determinations and judgments in the 

Litigation concerning the settlement, whether favorable or unfavorable to the Class. 

8. Class Members who wish to participate in the settlement must complete and submit 

Proof of Claim forms in accordance with the instructions contained therein. Unless the Court orders 

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[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 

AND PROVIDING FOR NOTICE – Case No. C 04-5222 SI - 4 -

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otherwise, all Proof of Claim forms must be submitted no later than ninety (90) days from the Notice 

Date, however, Class Counsel may, without further order of this Court and without further notice to 

the Class, elect to extend the date by which Proof of Claim forms must be submitted for up to an 

additional sixty (60) days. Any 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. 

9. Any Member of the 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 Class Counsel. 

10. Any Member of the 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, why attorneys’ fees and expenses should or should not be awarded 

to Class Counsel, or costs and expenses awarded to the Named Plaintiffs; provided, however, that no 

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 entered thereon approving 

the same, or the order approving the Plan of Allocation, the attorneys’ fees and expenses to be 

awarded to Class Counsel, or the costs and expenses awarded to the Named Plaintiffs, unless that 

Person has mailed written objections and copies of any papers and briefs by first class mail, postage 

paid, postmarked no later than September 7, 2007, to: Joseph Sternberg, Esq., Labaton Sucharow & 

Rudoff LLP; Mark Kindall, Esq., Schatz Noblel Izard, P.C.; and Boris Feldman, Esq., Wilson, 

Sonsini, Goodrich & Rosati, P.C., 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 September 7, 2007. 

Any Member of the 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, to the award of attorneys’ fees and expenses to plaintiffs’ counsel and to the award of 

costs and expenses to Named Plaintiffs, unless otherwise ordered by the Court. 

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[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 

AND PROVIDING FOR NOTICE – Case No. C 04-5222 SI - 5 -

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11. 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. 

12. All papers in support of the settlement and the Plan of Allocation shall be filed and 

served seven (7) calendar days before the Settlement Hearing. The application by Class Counsel for 

the award of attorneys’ fees and reimbursement of expenses shall be filed and served not later than 

August 24, 2007. 

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

Allocation proposed by Class Counsel, and any applications for attorneys’ fees or reimbursement of 

expenses shall be approved. 

14. The Court reserves the right to adjourn the date of the Settlement Hearing without 

further notice to the Members of the 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 Class. 

DATED: _____________________ 

 THE HONORABLE SUSAN ILLSTON 

UNITED STATES DISTRICT JUDGE 

674247 v2 

[6/20/2007 16:24] 

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7/13/07

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