Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_06-cv-03445/USCOURTS-cand-5_06-cv-03445-11/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 28:1331 Fed. Question: Securities Violation

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MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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1-SF/7621797.2

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

JOHN H. HEMANN (SBN 165823)

JOSEPH E. FLOREN (SBN 168292)

BENJAMIN P. SMITH (SBN 197551)

CHRISTOPHER J. BANKS (SBN 218779)

TERA M. HEINTZ (SBN 241414)

MORGAN, LEWIS & BOCKIUS LLP

One Market, Spear Street Tower

San Francisco, CA 94105-1126

Tel: 415.442.1000

Fax: 415.442.1001

E-mail: jhemann@morganlewis.com

jfloren@morganlewis.com

bpsmith@morganlewis.com

cbanks@morganlewis.com

theintz@morganlewis.com

Attorneys for Defendants Jeffrey L. Hall, Richard P. 

Wallace, John H. Kispert and Nominal Defendant 

KLA-Tencor Corporation

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA – SAN JOSE DIVISION

In re KLA-TENCOR CORPORATION 

SHAREHOLDER DERIVATIVE

LITIGATION

This Document Relates to:

ALL ACTIONS

Case No. C-06-03445-JW

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT

Date: November 5, 2007

Time: 10:00 a.m.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

AS MODIFIED

Judge James Ware

ORDER GRANTING FINAL 

CONTINUANCE OF CASE 

MANAGEMENT CONFERENCE

;

Case 5:06-cv-03445-JW Document 133 Filed 11/01/07 Page 1 of 7
MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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1-SF/7621797.2

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

1

All parties in this action respectfully submit the following joint case management 

statement. 

I. DESCRIPTION OF THE CASE

This is a consolidated shareholder derivative action. Lead Plaintiff Alaska Electrical 

Pension Fund asserts claims on behalf of nominal defendant KLA-Tencor Corporation (“KLA” or 

the “Company”) related to stock options granted by KLA to its employees and officers between 

1995 and the present. The defendants are current and former officers and directors of KLA. Lead 

Plaintiff alleges claims against defendants for violation of the federal securities laws, including 

Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and state law 

claims for breach of fiduciary duty, abuse of control, constructive fraud, waste, unjust 

enrichment, gross mismanagement, a claim for an accounting, and claims under the California 

Corporations Code.

II. STATUS AND RECENT DEVELOPMENTS

Lead Plaintiff filed its Amended Consolidated Complaint on February 20, 2007. Because 

of a stipulated stay order, this action is not yet at issue, and no answers or other responses to the 

complaint have been filed. 

KLA’s Board of Directors appointed a Special Litigation Committee (“SLC”) of 

independent directors to determine the Company’s position with respect to this litigation. The 

parties initially agreed to stay proceedings in this action in order to permit the SLC to complete its 

investigation of Plaintiff’s allegations and determine what action was appropriate, and the stay 

has continued since July 2007 during the parties’ extensive settlement negotiations. 

The parties remain in continuous ongoing, mediated settlement negotiations. These 

negotiations have included all parties to this action and have included a total of six in-person, allday mediation sessions attended by counsel for all affected parties and their insurers in July, 

August, and September 2007, as well as dozens of mediation communications in October 2007. 

The mediation sessions also involve ongoing discussions with the parties in the securities class 

action captioned In re KLA-Tencor Corporation Securities Litigation, N.D. Cal. Case No. C-06-

04065-MJJ, that is pending before the Honorable Martin J. Jenkins against KLA and most of the 

Case 5:06-cv-03445-JW Document 133 Filed 11/01/07 Page 2 of 7
MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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1-SF/7621797.2

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

2

individual defendants arising out of the same series of facts alleged in this derivative litigation. 

At the Case Management Conference on October 1, 2007, the Court ordered that this 

action would remain stayed until November 5, 2007, at which time the instant Further Case 

Management Conference would take place. See Order Setting Further CMC and Deadlines, 

Ordered 10/4/2007, Case Document No. 131.

Since the October 1, 2007 Case Management Conference, the parties have continued 

settlement negotiations in earnest. With the ongoing extensive assistance of nationally known 

mediator Johnathan B. Marks, Esq., of Marks ADR, LLC, the parties have accelerated their 

discussions and engaged in negotiations on a daily basis, and have made substantial progress in 

their efforts to resolve this dispute in recent days and weeks. The discussions are highly complex 

due to, among other things, the nature of this dispute, its relationship to other litigation that is also 

being mediated, and the large number of parties involved. Without disclosing the substance of 

their negotiations, the parties advise the Court that their discussions regarding potential settlement 

remain ongoing and active and that the parties will remain in constant discussions between now 

and the November 5, 2007 Case Management Conference. Because of the significant and 

continuing progress made to date and the frequency and level of discussions currently taking 

place, the parties believe an order continuing the stay for an additional four weeks and setting a 

further Case Management Conference for Monday, December 3, 2007, would be sufficient to 

allow the parties to complete their negotiations and to determine whether settlement can be 

reached at this time, or whether other action is appropriate. 

Accordingly, the parties jointly request that the Court issue an order (a) setting a Further 

Case Management Conference for December 3, 2007, at which time the parties will provide a 

further report to the Court and the Court will take such further action as may be appropriate, with 

a Joint Case Management Conference Statement to be filed with the Court no later than 

November 23, 2007, and (b) continuing the stay of this action in the interim.

Case 5:06-cv-03445-JW Document 133 Filed 11/01/07 Page 3 of 7
MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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1-SF/7621797.2

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

3

DATED: October 26, 2007 Respectfully submitted,

MORGAN, LEWIS & BOCKIUS LLP

JOHN H. HEMANN

JOSEPH E. FLOREN

TERA M. HEINTZ

By: /s/___

Joseph E. Floren

One Market, Spear Street Tower

San Francisco, CA 94105-1126

Telephone: (415) 442-1000

Facsimile: (415) 442-1001

Attorneys for Defendants Jeffrey L. Hall, 

Richard P. Wallace, John H. Kispert, and 

Nominal Defendant KLA-Tencor Corporation

I, Joseph E. Floren, am the ECF User whose ID and password are being used to file this 

JOINT FURTHER CASE MANAGEMENT CONFERENCE STATEMENT. In compliance 

with General Order 45, X.B., I hereby attest that each of the 8 signatories identified below has 

concurred in this filing.

DATED October 26, 2007 COUGHLIN STOIA GELLER

RUDMAN & ROBBINS LLP

SHAWN A. WILLIAMS 

MONIQUE C. WINKLER

AELISH M. BAIG

/s/

SHAWN A. WILLIAMS

100 Pine Street, Suite 2600

San Francisco, CA 94111

Telephone: 415/288-4545

415/288-4534 (fax)

Case 5:06-cv-03445-JW Document 133 Filed 11/01/07 Page 4 of 7
MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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1-SF/7621797.2

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

4

COUGHLIN STOIA GELLER

RUDMAN & ROBBINS LLP

DARREN J. ROBBINS

TRAVIS E. DOWNS III

655 West Broadway, Suite 1900

San Diego, CA 92101-3301

Telephone: 619/231-1058

619/231-7423 (fax)

Lead Counsel for Plaintiffs

DATED: October 26, 2007 FENWICK & WEST LLP

KEVIN P. MUCK

DEAN S. KRISTY

By: /s/

Kevin P. Muck

555 California Street, 12th Floor

San Francisco, CA 94104

Tel. 415-875-2300

Fax: 415-281-1350

Attorneys for Defendants Edward W. Barnholt, 

H. Raymond Bingham, Robert J. Boehlke, 

Robert T. Bond, Richard J. Elkus, Jr., Leo 

Chamberlain, and Lida Urbanek 

DATED: October 26, 2007 ORRICK, HERRINGTON & SUTCLIFFE 

LLP

WALTER F. BROWN, JR.

ROBERT P. VARIAN

By: /s/

Robert P. Varian

405 Howard Street 

San Francisco, CA 94105 

Tel. 415-773-5700 

Fax: 415-773-5759

Attorneys for Defendant Gary Dickerson

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MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

5

DATED: October 26, 2007 SHEARMAN & STERLING LLP

PATRICK D. ROBBINS

JEFFREY S. FACTER

EMILY GRIFFEN

By: /s/

Emily Griffen

525 Market Street, Suite 1500

San Francisco, CA 94105

Telephone: (415) 616-1100

Facsimile: (415) 616-1199

Attorneys for Defendant Kenneth Levy

DATED: October 26, 2007 LAW OFFICE OF MARK A. BELNICK, LLC

MARK A. BELNICK (admitted pro hac vice)

By: /s/

Mark A. Belnick

120 West 45th Street, Suite 1700B

New York, NY 10036 

Telephone: 646-453-2901

Fax: 646-453-2908

CHRISTOPHER D. KERCHER (pro hac vice)

AKIN GUMP STRAUSS HAUER & FELD LLP

590 Madison Avenue

New York, NY 10022

Tel 212-872-1000

STEVEN S. KAUFHOLD

AKIN GUMP STRAUSS HAUER & FELD LLP

580 California Street, 15th Floor 

San Francisco, CA 94104 

Tel: 415-765-9500 

Fax: 415-765-9501

Attorneys for Defendant Stuart J. Nichols

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MORGAN, LEWIS &

BOCKIUS LLP

ATTORNEYS AT LAW

NEW YORK

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JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT (NO. 06-3445)

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DATED: October 26, 2007 RAMSEY & EHRLICH LLP

ISMAIL RAMSEY

MILES F. EHRLICH

By: /s/

Ismail Ramsey

803 Hearst Avenue 

Berkeley, CA 94710 

Telephone: 510-548-3600

Attorneys for Defendant Arthur Schnitzer

DATED: October 26, 2007 DLA PIPER US LLP

SHIRLI FABBRI WEISS

DAVID A. PRIEBE

By: /s/

David A. Priebe

2000 University Avenue

East Palo Alto, California 94303 

Telephone: (650) 833-2056

Facsimile : (650) 833-2001

Attorneys for Defendant Kenneth L. Schroeder

DATED: October 26, 2007 HELLER EHRMAN LLP

MICHAEL J. SHEPARD

WARRINGTON S. PARKER, III

By: /s/

Warrington S. Parker, III

333 Bush Street

San Francisco, CA 94104

Telephone: (415) 772-6000

Facsimile: (415) 772-6268

Attorneys for Defendant Jon D. Tompkins

************ 

ORDER 

 In light of the representations made by the parties their Joint Case Management 

Statement, the Court finds good cause to GRANT one final continuance of the case 

management conference. The continuance is to facilitate the parties' settlement efforts. 

However, since there have been numerous delays, this is the parties’ FINAL continuance. The 

Court sets the conference on December 3, 2007 at 10 AM. The parties shall file a Joint Status 

report by November 26, 2007. If the parties fail to complete their settlement negotiations by 

November 23, 2007, the Court will appoint a Special Master to manage the process or set the 

case on a schedule. All parties must appear for the December 3 conference. 

Dated: November 1, 2007 ______________________________ 

 JAMES WARE 

 United States District Judge 

Case 5:06-cv-03445-JW Document 133 Filed 11/01/07 Page 7 of 7