Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_02-cv-02270/USCOURTS-cand-5_02-cv-02270-11/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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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

In re VERISIGN, INC. SECURITIES 

LITIGATION 

This Document Relates To: 

ALL ACTIONS. 

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Master File No. C-02-2270-JW(PVT) 

CLASS ACTION

[PROPOSED] ORDER PRELIMINARILY 

APPROVING SETTLEMENT AND 

PROVIDING FOR NOTICE 

DATE: December 18, 2006 

TIME: 9:00 a.m. 

COURTROOM: The Honorable James Ware

Case 5:02-cv-02270-JW Document 507 Filed 12/18/06 Page 1 of 12
WHEREAS, a class action is pending before the Federal Court entitled In re VeriSign, Inc. 

Securities Litigation, Master File No. C-02-2270-JW(PVT) (the “Federal Litigation”); 

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WHEREAS, a related action entitled In re VeriSign Inc. Derivative Litigation, Case No. 1-

02-CV-807719 (the “Derivative Litigation”) is pending in the California Superior Court, County of 

Santa Clara; 

WHEREAS, the Federal Court has received the Stipulation of Settlement and Release dated 

as of December 12, 2006 (the “Stipulation”), that has been entered into by the Lead Plaintiffs, the 

Derivative Plaintiffs and Defendants, setting forth the terms of the Settlement of the Federal 

Litigation and the Derivative Litigation (collectively, the “Litigations”), and the Federal Court has 

reviewed the Stipulation and its attached Exhibits; 

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

Procedure 23(e), for an order preliminarily approving the settlement of the Litigations, in accordance 

with the Stipulation which, together with the Exhibits annexed thereto sets forth the terms and 

conditions for a proposed Settlement of the Litigations and for dismissal of the Litigations with 

prejudice upon the terms and conditions set forth therein; and the Federal 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 Federal 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 March 12, 

2007, at 9:00 a.m., at the United States Courthouse, 280 South First Street, San Jose, California, to 

determine whether the proposed Settlement of the Litigations on the terms and conditions provided 

for in the Stipulation is fair, just, reasonable and adequate to the Class, Derivative Plaintiffs and 

Defendants and should be approved by the Federal Court; whether a Judgment as provided in 

paragraph 1.15 of the Stipulation should be entered herein; whether the proposed Plan of Allocation 

[PROPOSED] ORDER PRELIMIN ------------- ARILY APPROVING SETTLEMENT - C-02-2270-JW(PVT) - 1 -

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

plaintiffs’ counsel; and to determine the amount of expenses to be reimbursed to the Lead Plaintiffs. 

The Federal Court may adjourn the Settlement Hearing without further notice to Members of the 

Class. 

3. The Federal Court approves, as to form and content, the Notice of Pendency and 

Proposed Settlement of Class Action (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 paragraphs 4 and 5 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. 

4. The firm of Gilardi & Co. LLC (“Claims Administrator”) is hereby appointed to 

supervise and administer the notice procedure as well as the processing of claims as more fully set 

forth below: 

(a) Not later than January 3, 2007 (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 A2 hereto, to be mailed by first class mail to all Class Members who can be identified with reasonable 

effort; 

(b) Not later than January 4, 2007, Lead Counsel shall cause the Summary Notice 

to be published once in Investor’s Business Daily; and 

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

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

or declaration, of such mailing and publishing. 

5. Nominees who purchased or acquired the common stock of VeriSign for the 

beneficial ownership of Class Members during the Class Period shall send the Notice and the Proof 

of Claim to all beneficial owners of such VeriSign 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 

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Case 5:02-cv-02270-JW Document 507 Filed 12/18/06 Page 3 of 12
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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-ofpocket expenses incurred in providing notice to beneficial owners who are Class Members out of the 

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

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

compensation. 

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

Federal Litigation concerning the Settlement, whether favorable or unfavorable to the Class. 

7. 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 Federal 

Court orders otherwise, all Proof of Claim forms must be submitted no later than ninety (90) days 

from the Notice Date. 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 Settlement 

Fund, unless otherwise ordered by the Federal Court. Notwithstanding the foregoing, Lead Counsel 

may, in their discretion, accept late-submitted claims for processing by the Claims Administrator so 

long as distribution of the Net Settlement Fund is not materially delayed thereby. 

8. Any Member of the Class may enter an appearance in the Federal 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. 

9. Any Person falling within the definition of the Class may, upon request, be excluded 

from the Class. Any such Person must submit to the Claims Administrator a request for exclusion 

(“Request for Exclusion”), postmarked no later than February 12, 2007. A Request for Exclusion 

must state: (a) the name, address, and telephone number of the Person requesting exclusion; (b) each 

of the Person’s purchases or acquisitions and sales of VeriSign common stock made during the Class 

Period, including the dates of purchase, acquisition or sale, the number of shares purchased or 

acquired and/or sold, and the price paid or received per share for each such purchase, acquisition or 

sale; and (c) that the Person wishes to be excluded from the Class. All Persons who submit valid and 

[PROPOSED] ORDER PRELIMIN ------------ ARILY APPROVING SETTLEMENT - C-02-2270-JW(PVT) - 3 -

Case 5:02-cv-02270-JW Document 507 Filed 12/18/06 Page 4 of 12
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timely Requests for Exclusion in the manner set forth in this paragraph 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 Federal Litigation. 

10. Any Member of the Class or current VeriSign shareholder may appear and show 

cause, if he, she or it has any, why the proposed settlement of the Litigations should or should not be 

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

thereon. Any Member of the Class may appear and show cause, if he, she or it has any, why the Plan 

of Allocation should or should not be approved, why attorneys’ fees and expenses should or should 

not be awarded to counsel for the Lead Plaintiffs, or why the expenses of the Lead Plaintiffs should 

or should not be awarded. However, no Class Member, current VeriSign shareholder or any other 

Person shall be heard or entitled to contest such matters, 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 February 12, 2007, by Lerach Coughlin Stoia Geller Rudman & Robbins LLP, 

Joy Ann Bull, 655 W. Broadway, Suite 1900, San Diego, CA 92101 and O’Melveny & Myers LLP, 

David Furbush, 2765 Sand Hill Road, Menlo Park, CA 94025, 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 February 12, 2007. Any Member of the Class or VeriSign shareholder who does not make 

his, her or its objection in the manner provided above 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 counsel for the Lead Plaintiffs or expenses of the Lead Plaintiffs, 

unless otherwise ordered by the Federal Court. 

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

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

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

Federal Court. 

12. Lead Counsel shall be entitled to withdraw seventy-five percent (75%) of their out-ofpocket expenses incurred in prosecuting the Federal Litigation from the Settlement Fund upon the 

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execution of this Order, subject to final approval of said expenses at the Settlement Hearing and the 

other provisions of paragraph 9.1 of the Stipulation. 

13. All papers in support of the Settlement, the Plan of Allocation, and any application by 

counsel for the Lead Plaintiffs for attorneys’ fees or reimbursement of expenses or by Lead Plaintiffs 

for reimbursement of their expenses shall be filed and served seven (7) calendar days prior to the 

Settlement Hearing. 

14. Neither Defendants, their Related Parties, their counsel, nor their insurance carriers 

shall have any responsibility for the Plan of Allocation or any application for attorneys’ fees or 

reimbursement of expenses submitted by counsel for Lead Plaintiffs or the Lead Plaintiffs, and such 

matters will be considered separately from the fairness, reasonableness and adequacy of the 

Settlement. 

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

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

expenses shall be approved. 

16. All reasonable expenses incurred in identifying and notifying Class Members and 

VeriSign shareholders, 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 Federal Court, or otherwise fails to 

become effective, neither the Lead Plaintiffs nor any of their counsel shall have any obligation to 

repay any amounts incurred or properly disbursed pursuant to paragraphs 3.6 or 4.1-4.3 of the 

Stipulation. 

17. 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 of 

the truth of any of the allegations in the Litigations, or of any liability, fault, or wrongdoing of any 

kind. 

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

without further notice to the Members of the Class and VeriSign shareholders, and retains 

jurisdiction to consider all further applications arising out of or connected with the proposed 

[PROPOSED] ORDER PRELIMIN ------------- ARILY APPROVING SETTLEMENT - C-02-2270-JW(PVT) - 5 -

Case 5:02-cv-02270-JW Document 507 Filed 12/18/06 Page 6 of 12
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Settlement. The Federal 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. 

IT IS SO ORDERED. 

DATED: _________________________ 

THE HONORABLE JAMES WARE 

UNITED STATES DISTRICT JUDGE 

Submitted by: 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

PATRICK J. COUGHLIN 

JEFFREY W. LAWRENCE 

DENNIS J. HERMAN 

CHRISTOPHER P. SEEFER 

SHIRLEY H. HUANG 

JENNIE LEE ANDERSON 

100 Pine Street, Suite 2600 

San Francisco, CA 94111 

Telephone: 415/288-4545 

415/288-4534 (fax) 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

WILLIAM S. LERACH 

JOY ANN BULL 

s/ Joy Ann Bull 

JOY ANN BULL 

655 West Broadway, Suite 1900 

San Diego, CA 92101 

Telephone: 619/231-1058 

619/231-7423 (fax) 

Lead Counsel for Plaintiffs 

LAW OFFICES BERNARD M. GROSS, P.C.

BERNARD M. GROSS 

DEBORAH R. GROSS 

Wanamaker Bldg., Suite 450 

100 Penn Square East 

Philadelphia, PA 19107 

Telephone: 215/561-3600 

215/561-3000 (fax) 

[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT - C-02-2270-JW(PVT) - 6 -

December 18, 2006 -------------

Case 5:02-cv-02270-JW Document 507 Filed 12/18/06 Page 7 of 12
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COHEN, MILSTEIN, HAUSFELD 

 & TOLL, P.L.L.C. 

STEVEN J. TOLL 

LISA M. MEZZETTI 

JOSHUA S. DEVORE 

1100 New York Avenue, N.W. 

West Tower, Suite 500 

Washington, DC 20005-3964 

Telephone: 202/408-4600 

202/408-4699 (fax) 

SCHATZ & NOBEL, P.C. 

ANDREW M. SCHATZ 

JEFFREY S. NOBEL 

NANCY A. KULESA 

One Corporate Center 

20 Church Street, Suite 1700 

Hartford, CT 06103 

Telephone: 860/493-6292 

860/493-6290 (fax) 

Additional Counsel for Federal Plaintiffs 

ROBBINS UMEDA & FINK, LLP 

MARC M. UMEDA 

610 West Ash Street, Suite 1800 

San Diego, CA 92101 

Telephone: 619/525-3990 

619/525-3991 (fax) 

Counsel for Derivative Plaintiffs 

SCHIFFRIN & BARROWAY, LLP 

ROBERT B. WEISER 

280 King of Prussia Road 

Radnor, PA 19087 

Telephone: 610/667-7706 

610/667-7056 (fax) 

Additional Counsel for Derivative Plaintiffs 

S:\Settlement\Verisign.set\(V1) EA-00037388.doc 

[PROPOSED] ORDER PRELIMIN ------------- ARILY APPROVING SETTLEMENT - C-02-2270-JW(PVT) - 7 -

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CERTIFICATE OF SERVICE

I hereby certify that on December 14, 2006, I electronically filed the foregoing with the Clerk 

of the Court using the CM/ECF system which will send notification of such filing to the e-mail 

addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I have 

mailed the foregoing document or paper via the United States Postal Service to the non-CM/ECF 

participants indicated on the attached Manual Notice List. 

I further certify that I caused this document to be forwarded to the following designated 

Internet site at: http://securities.lerachlaw.com/. 

s/ Joy Ann Bull 

JOY ANN BULL 

LERACH COUGHLIN STOIA GELLER 

RUDMAN & ROBBINS LLP 

655 West Broadway, Suite 1900 

San Diego, CA 92101 

Telephone: 619/231-1058 

619/231-7423 (fax) 

E-mail:JoyB@lerachlaw.com

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