Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_06-cv-04809/USCOURTS-cand-5_06-cv-04809-23/pdf.json

Nature of Suit Code: 160
Nature of Suit: Stockholder's Suits
Cause of Action: 15:78m(a) Securities Exchange Act

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STIP AND [PROPOSED] ORDER MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

Jeffrey S. Facter (State Bar No. 123817)

Patrick D. Robbins (State Bar No. 152288)

Emily V. Griffen (State Bar No. 209162)

Sean T. Strauss (State Bar No. 245811)

SHEARMAN & STERLING LLP

525 Market Street, Suite 1500

San Francisco, CA 94105-2723

Telephone: (415) 616-1100

Facsimile: (415) 616-1199

Email: jfacter@shearman.com

probbins@shearman.com

egriffen@shearman.com

sean.strauss@shearman.com

Attorneys for the Special Committee

of the Board of Directors of Blue Coat

Systems, Inc.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

In re BLUE COAT SYSTEMS, INC. 

DERIVATIVE LITIGATION

This Document Relates To:

ALL ACTIONS.

MASTER FILE NO.: C-06-4809-JF (RS)

[Consolidated with C-06-5453]

STIPULATION AND [PROPOSED] 

ORDER EXTENDING DATE FOR CASE 

MANAGEMENT CONFERENCE 

Current CMC Date: August 13, 2010

Proposed CMC Date: September 3, 2010

Before: Hon. Jeremy Fogel

**E-Filed 8/11/2010**

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Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 1 of 7
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STIP AND [PROPOSED] ORDER 1 MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

WHEREAS, Plaintiffs in this Consolidated Action filed a Verified Amended 

Consolidated Shareholder Derivative Complaint (“Consolidated Complaint”) on November 30, 

2007;

WHEREAS, on February 1, 2008, Nominal Defendant Blue Coat Systems, Inc. 

(“Blue Coat”) and Defendant Ernst & Young LLP (“EY”) filed motions to dismiss this case on the 

ground that a demand upon Blue Coat’s board of directors (the “Board”) to assert claims against

the individual Defendants and Defendant EY would not have been futile (the “Demand Futility 

Motions”);

WHEREAS, on February 1, 2008, the individual Defendants and EY filed motions 

to dismiss the Consolidated Complaint on the grounds that it failed to state a claim for relief 

against them;

WHEREAS, on February 1, 2008, Defendants Blue Coat and EY filed motions to 

stay the case and/or to compel mediation and, if necessary, arbitration; 

WHEREAS, Plaintiffs decided not to oppose these motions but to instead make a 

demand on Blue Coat’s Board; 

WHEREAS, the Parties agreed to, and the Court ordered, a stay of the action to 

permit Plaintiffs to make their demand upon Blue Coat’s Board and to allow the Board to consider 

such demand;

WHEREAS, in response to Plaintiffs’ demand, the Board formed a special 

committee, composed of directors James Tolonen and Keith Geeslin, which according to the Form 

10-Q filed by Blue Coat on December 9, 2008, was granted plenary authority to decide whether it 

is in the best interests of the Company and its shareholders to pursue or otherwise resolve the 

claims raised in the demand letter and in the federal and state derivative actions and any other 

claims of the Company that the special committee deems necessary or appropriate to consider 

concerning its historical stock option practices; 

WHEREAS, the special committee represents that it has been actively engaged in 

an investigation of Plaintiffs’ demand and has been working diligently on the investigation;

Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 2 of 7
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STIP AND [PROPOSED] ORDER 2 MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

WHEREAS, counsel for plaintiffs, counsel for the special committee, counsel for 

the insurers, and counsel for certain individual defendants attended a mediation session on 

November 24, 2009 with the Honorable Layn Phillips (Ret.);

WHEREAS, following the mediation, counsel for Plaintiffs, counsel for the special 

committee, counsel for the insurers, and counsel for individual Defendants continued to engage in 

extensive arm’s length settlement discussions, with additional assistance from the mediator; 

WHEREAS, Plaintiffs, certain of the individual Defendants, Defendant EY, and 

nominal Defendant Blue Coat, by and through its special committee, each by and through their 

respective counsel, have reached a settlement in principle of this action and preparation of

settlement documentation is underway;

NOW, THEREFORE, the Parties, by and through their undersigned counsel of

record, hereby agree and stipulate to the following:

1. The Case Management Conference scheduled for August 13, 2010, together 

with all associated pre-conference filings (e.g., the Case Management Statement and Rule 26(f) 

disclosures) shall be continued to September 3, 2010 at 10:30 a.m., or as soon as available 

thereafter, at which time the Parties will report to the Court about the status of the special 

committee’s work and the status of settlement documentation;

2. The Parties respectfully request that the Court enter an Order approving this 

Stipulation.

Dated: August 6, 2010 SHEARMAN & STERLING LLP

Jeffrey S. Facter

Patrick D. Robbins

Emily V. Griffen

Sean T. Strauss

525 Market Street, Suite 1500

San Francisco, CA 94105

Telephone: (415) 616-1100

Facsimile: (415) 616-1199

By: /s

Emily V. Griffen

Counsel for the Special Committee of the Board of 

Directors of Nominal Defendant Blue Coat Systems, 

Inc.

Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 3 of 7
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STIP AND [PROPOSED] ORDER 3 MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

Dated: August 6, 2010 WILSON SONSINI GOODRICH & ROSATI, P.C.

Jerome F. Birn, Jr.

650 Page Mill Road

Palo Alto, CA 94304-1050

Telephone: (650) 493-9300

Facsimile: (650) 565-5100

By: /s

Jerome F. Birn, Jr.

Counsel for the Blue Coat Defendants and Nominal 

Defendant Blue Coat Systems, Inc.

Dated: August 6, 2010 THE WEISER LAW FIRM, P.C.

Robert B. Weiser

121 N. Wayne Avenue, Suite 100

Wayne, PA 19087

Telephone: (610) 225-2677

Facsimile: (610) 225-2678

By: /s

Robert B. Weiser

Dated: August 6, 2010 ROBBINS UMEDA LLP

Brian J. Robbins

Marc M. Umeda

600 B Street, Suite 1900

San Diego, CA 92101

Telephone: (619) 525-3990

Facsimile: (619) 525-3991

By: /s

 Marc M. Umeda

Co-Lead Counsel for Plaintiffs

Dated: August 6, 2010 DLA PIPER US LLP

Shirli Fabbri Weiss

David Priebe

Roy K. McDonald

David M. Doyle

401 B Street, Suite 1700

San Diego, CA 92101

Telephone: (619) 699-2700

Facsimile: (619) 699-2701

By: /s

Shirli F. Weiss

Counsel for Defendant Michael J. Johnson

Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 4 of 7
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STIP AND [PROPOSED] ORDER 4 MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

Dated: August 6, 2010 BINGHAM MCCUTCHEN LLP

Charlene S. Shimada

Three Embarcadero Center

San Francisco, CA 94111

Telephone: 415) 393-2000

Facsimile: (415) 393-2286

By: /s

Charlene S. Shimada

Counsel for Defendant Susan Thornton

Dated: August 6, 2010 KATTEN MUCHIN ROSENMAN, LLP

Bruce G. Vanyo

Richard H. Zelichov

2029 Century Park East, Suite 2600

Los Angeles, CA 90067

Telephone: (310) 788-4400

Facsimile: (310) 788-4471

By: /s

Richard H. Zelichov

Counsel for Defendant Robert P. Verheecke

Dated: August 6, 2010 LATHAM & WATKINS LLP

Peter A. Wald

Patrick E. Gibbs

David M. Friedman

Andrew M. Farthing

505 Montgomery Street, Suite 2000

San Francisco, CA 94111-6538

Telephone: (415) 391-0600

Facsimile: (415) 395-8095

By: /s

David M. Friedman

Counsel for Defendant Ernst & Young LLP

Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 5 of 7
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STIP AND [PROPOSED] ORDER 5 MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

[PROPOSED] ORDER

Based upon the above stipulation of the Parties and for good cause appearing 

therefore, IT IS SO ORDERED.

Dated: ____________, 2010

JEREMY FOGEL

United States District Judge

------------------

August 9

Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 6 of 7
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STIP AND [PROPOSED] ORDER 6 MASTER FILE NO.: C-06-4809-JF (RS)

EXTENDING DATE FOR CMC 289662

ATTESTATION PURSUANT TO GENERAL ORDER 45

I, Emily V. Griffen, attest that concurrence in the filing of this document has been 

obtained from each of the signatories. I declare under penalty of perjury under the laws of the 

United States of America that the foregoing is true and correct. Executed this 6th day of August, 

2010 at San Francisco, California.

By: /s

Emily V. Griffen

Counsel for the Special Committee of the Board of 

Directors of Nominal Defendant Blue Coat Systems, 

Inc.

Case 5:06-cv-04809-JF Document 84 Filed 08/11/10 Page 7 of 7