Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_08-cv-01830/USCOURTS-cand-3_08-cv-01830-17/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 

 STIPULATION AND [PROPOSED] ORDER 08-CV-1830 RS 

GILBERT R. SEROTA (No. 75305) 

Email: gserota@howardrice.com 

CHRISTINE HUBBARD (No. 220105) 

Email: chubbard@howardrice.com 

JEREMY T. KAMRAS (No. 237377) 

Email: jkamras@howardrice.com 

HOWARD RICE NEMEROVSKI CANADY 

FALK & RABKIN 

A Professional Corporation 

Three Embarcadero Center, 7th Floor 

San Francisco, California 94111-4024 

Telephone: 415/434-1600 

Facsimile: 415/677-6262 

Attorneys for Defendants 

WELLS FARGO & COMPANY, WELLS 

FARGO FUNDS MANAGEMENT, LLC, AND 

WELLS FARGO FUNDS TRUST 

[Additional counsel listed on signature page.] 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

EDWARD LEE, EDWARD ARSENAULT, 

EMIL DE BACCO, RICHARD HINTON, 

ARNOLD KREEK, and MARGRET 

MACHT, 

Plaintiffs, 

v. 

WELLS FARGO & COMPANY, WELLS 

FARGO FUNDS MANAGEMENT, LLC, 

and WELLS FARGO FUNDS TRUST, 

Defendants. 

No. 08-CV-1830 RS 

Action Filed: April 4, 2008

STIPULATION AND [PROPOSED] 

ORDER RE SCHEDULING AND 

RESOLVING PLAINTIFFS’ MOTION 

TO STAY DISCOVERY 

Date: May 27, 2010 

Time: 1:30 p.m. 

Judge: Hon. Richard Seeborg 

Dept: Courtroom 3, 17th Floor 

*E-Filed 5/7/10*

Case 3:08-cv-01830-RS Document 106 Filed 05/07/10 Page 1 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 

 STIPULATION AND [PROPOSED] ORDER 08-CV-1830 RS 

-1- 

WHEREAS on August 20, 2009, the Honorable William H. Alsup granted in part and 

denied in part Defendants’ motion to dismiss, and in so doing, dismissed without leave to 

amend all class action allegations in the above-captioned matter (Dkt. 86); 

WHEREAS on October 16, 2009, Judge Alusp entered a case management order

setting forth a discovery and trial schedule (Dkt. 94); 

WHEREAS on November 4, 2009, Judge Alsup referred the parties to Magistrate 

Judge Joseph C. Spero for mediation or settlement (Dkt. 96); 

WHEREAS on January 27, 2009, the parties had a telephonic conference call with 

Judge Spero wherein they agreed to exchange certain information in anticipation of 

settlement discussions (see Dkt. 99), and therefore entered into a stipulation by which the 

parties were to exchange that information and discuss settlement by April 9, 2010 (Dkt. 

100); 

WHEREAS on March 19, 2010, this matter was reassigned to the Honorable Richard 

Seeborg (Dkt. 101); 

WHEREAS the exchange of settlement information was unproductive, and therefore, 

facing approaching discovery deadlines, Defendants sought to move forward with discovery 

by requesting dates on which to depose Plaintiffs; 

 WHEREAS in dismissing the class allegations, Judge Alsup relied in part on In re 

American Funds Securities Litigation, 556 F. Supp. 2d 1100 (C.D. Cal. 2008), which is 

presently on appeal to the Ninth Circuit Court of Appeals; 

WHEREAS Plaintiffs contend that the decision in In re American Funds will likely 

bear on Judge Alsup’s ruling and, therefore, on April 23, 2010, Plaintiffs sought a stay of 

discovery pending the Ninth Circuit’s decision in In re American Funds (Dkt. 104); 

WHEREAS the Ninth Circuit stayed its ruling in In re American Funds until the 

Supreme Court issued a decision in Merck & Co., Inc. v. Reynolds; 

WHEREAS on April 27, 2010, the Supreme Court issued a decision in Merck; 

WHEREAS on May 3, 2010, the Ninth Circuit issued an order requiring the parties in 

In re American Funds to brief the import of Merck by June 2, 2010; 

Case 3:08-cv-01830-RS Document 106 Filed 05/07/10 Page 2 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 

 STIPULATION AND [PROPOSED] ORDER 08-CV-1830 RS 

-2- 

WHEREAS should the Ninth Circuit reverse In re American Funds, briefing will likely 

be required to assess its impact, if any, on this matter; 

WHEREAS the parties agree that in light of the fact that the Supreme Court issued a 

decision in Merck and therefore anticipate a decision in In re American Funds relatively 

soon, an open-ended stay of discovery is not warranted; but, 

WHEREAS the parties further agree that given that they have engaged in limited 

discovery to date and given the continued potential for uncertainty regarding the impact, if 

any, of In re American Funds, a modification of the present discovery and trial schedule is 

warranted; 

NOW THEREFORE, subject to this Court’s approval, the undersigned parties hereby 

stipulate to the following schedule intended to permit resolution of the issues raised above: 

1. Non-expert fact discovery shall be completed by July 1, 2011. 

2. Each party shall serve a list of issues on which it will offer any expert testimony 

in its case-in-chief by July 1, 2011. 

3. The last date for designation of expert testimony and disclosure of full expert 

reports under Rule 26(a)(2) as to any issue on which a party has the burden of proof 

(“opening reports”) shall be August 1, 2011. 

4. All other parties must disclose any expert reports on the same issue (“opposition 

reports”) by August 31, 2011. 

5. The party with the burden of proof must disclose any reply reports rebutting 

specific material in opposition reports by September 20, 2011. 

6. If the party with the burden of proof neglects to make a timely disclosure, the 

other side, if it wishes to put in expert evidence on the same issue anyway, must still disclose 

its expert report by August 31, 2011. In that event, the party with the burden of proof on the 

issue may then file a reply expert report by September 20, 2011, subject to possible 

exclusion for “sandbagging” and, at all events, any such reply material may be presented at 

trial only after, if at all, the other side actually presents expert testimony to which the reply is 

responsive. 

Case 3:08-cv-01830-RS Document 106 Filed 05/07/10 Page 3 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 

 STIPULATION AND [PROPOSED] ORDER 08-CV-1830 RS 

-3- 

7. Expert discovery shall be completed by October 4, 2011. 

8. The last date to file dispositive motions shall be October 25, 2011. 

9. A jury trial shall begin on or after February 28, 2012. 

10. Plaintiffs hereby withdraw their pending Motion to Stay Discovery (Dkt. 104). 

DATED: May 6, 2010. GILBERT R. SEROTA 

CHRISTINE HUBBARD 

JEREMY T. KAMRAS 

HOWARD RICE NEMEROVSKI CANADY 

FALK & RABKIN 

A Professional Corporation 

By: /s/ Gilbert R. Serota

GILBERT R. SEROTA 

Attorneys for Defendants WELLS FARGO & 

COMPANY, WELLS FARGO FUNDS 

MANAGEMENT, LLC, and WELLS FARGO 

FUNDS TRUST 

DATED: May 6, 2010. REESE RICHMAN LLP 

MICHAEL R. REESE 

230 Park Avenue, 10th Floor 

New York, NY 10169 

WHATLEY DRAKE & KALLAS, LLC 

DEBORAH CLARK WEINTRAUB 

ELIZABETH ROSENBERG 

1540 Broadway, 37th Floor 

New York, NY 10036 

By: /s/ Deborah Clark Weintraub

DEBORAH CLARK WEINTRAUB 

Attorneys for Plaintiffs EDWARD LEE, EDWARD 

ARSENAULT, EMIL DE BACCO, RICHARD 

HINTON, ARNOLD KREEK and MARGRET 

MACHT 

Case 3:08-cv-01830-RS Document 106 Filed 05/07/10 Page 4 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 

 STIPULATION AND [PROPOSED] ORDER 08-CV-1830 RS 

-4- 

DECLARATION PURSUANT TO GENERAL ORDER 45, § X.B 

I, GILBERT R. SEROTA, hereby declare pursuant to General Order 45, § X.B, that I 

have obtained the concurrence in the filing of this document from each of the other 

signatories listed above. 

I declare under penalty of perjury that the foregoing declaration is true and correct. 

Executed on May 6, 2010, at San Francisco, California. 

/s/ Gilbert R. Serota 

 GILBERT R. SEROTA 

IT IS SO ORDERED. 

DATED: __________________, 2010 

THE HONORABLE RICHARD SEEBORG 

UNITED STATES DISTRICT JUDGE 

5/7

Case 3:08-cv-01830-RS Document 106 Filed 05/07/10 Page 5 of 5