Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_00-cv-01967/USCOURTS-cand-3_00-cv-01967-7/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

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In re TERA YON COMMUNICATION )

I I SYSTEMS, INC. SECURITES LITIGATION )

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This Doeument Relates To:

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ALL ACTIONS.

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Master File No. C-00-1967 -MHP

CLASS ACTION

(PROPOSED) ORDER PRELIMINARILY

APPROVING SETTLEMENT AND

PROVIDING FOR NOTICE

AS AMENDED BY COURT @ pp 3-4

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 1 of 10
WHEREAS, a eonsolidated class aetion is pending before the Court entitled In re Terayol1

2 Communication Systems, Inc. Securities Litgation, Master File No. C-00-1967-MHP (the

3 "Litigation");

4 WHEREAS, the Court has received the Stipulation of Settlement dated as of March 17,2006

5 (the "Stipulation"), that has been entered into by the Lead Plaintiffs and Defendants, and the Court

6 has reviewed the Stipulation and its attached Exhibits; and

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

8 Procedure 23( c), for an order preliminarily approving the settlement of this Litigation, in accordance

9 with the Stipulation which, together with the Exhibits annexed thereto scts forth thc tcnns and

10 conditions for a proposed scttlement of the Litigation and for dismissal of the Litigation with

i i prejudice upon the terms and conditions set forth therein; and the Court having read and considered

12 the Stipulation and the Exhibits annexed thereto; and

13 WHEREAS, all defined terms contained herein shall havc the samc meanings as set forth in

14 the Stipulation;

15 NOW, THEREFORE, IT is HEREBY ORDERED:

16 1. The Court does hereby preliminarly approve the Stipulation and the settlement set

17 forth therein; subject to furter consideration at the Settlement Hearing described below.

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

19 25, 2006, at 2:00 p.m., at the United States Courthouse, 450 Golden Gate Avenue, San Francisco,

20 California, to determine whether the proposed settlement of the Litigation on the terms and

2 i conditions provided for in the Stipulation is fair, reasonable and adequate to the Class and should be

22 approved by the Court; whether a Judgment as provided in ~1.13 of the Stipulation should be entered

23 herein; whether the proposed Plan of Allocation should be approved; and to determine the amount of

24 fees and expenses that should be awarded to Co-Lead CounseL. The Court may adjoum the

25 Settlement Hearing without further notice to Members of the Class.

26 3. The Court approves, as to form and content, the Notice of Proposed Settlement of

27 Class Action (the "Notice"), the Proof of Claim and Release form (the "Proof of Claim"), and

28 Summary Notice for publication anexed as Exhibits A- i, A-2 and A-3 hereto, and finds that the

(PROPOSED) ORDER PRELlMINARIL Y APPROVING SETTLEMENT AND PROVIDING FOR NOTICE - C-00-1967-MHP - I -

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 2 of 10
mailing and distribution of the Notice and publishing of the Summar Notice substantially in the

2 manner and form set forth in ~~4-5 of this Order meet the requirements of Federal Rule of Civil

3 Procedure 23 and due process, and is the best notice practicable under the circumstances and shall

4 constitute due and sufficient notice to all Persons entitled thereto.

5 4. Pursuant to Rule 53(c) ofthe Federal Rules of Civil Procedure, the Court appoints the

6 fimi ofRG/2 Claims Administration LLC ("Claims Administrator") to supervise and administer the

7 notice procedure as well as the processing of claims as more fully set forth below:

8 (a) Not later than August 1,2006 (the "Notice Date"), Co-Lead Counsel shall

9 cause a copy of the Notice and the Proof of Claim, substantially in the forms annexed as Exhibits A10 1 and A-2, to be mailed by first class mail to all Class Members who can be identified with

i i reasonable effort;

12 (b) Not later than August 2, 2006, Co-Lead Counsel shall cause the Summary

13 Notice to be published once in Investor's Business Daily; and

14 (c) At least seven (7) calendar days prior to the Settlement Hearng, Co-Lead

15 Counsel shall cause to be served on Defendants' counsel and filed with the Court proof, by affdavit

i 6 or declaration, of such mailing and publishing.

17 5. Nominees who purchased or otherwise acquired publicly traded common stock or

18 purchased call options or sold put options ofTerayon between November 15, 1999 and April 1 i,

19 2000, inclusive, shall send the Notice and the Proof of Claim to all beneficial owners of such

20 Terayon securities within ten (10) days after receipt thereof, or send a list of the names and addresses

21 of such beneficial owners to the Claims Administrator within ten (10) days of receipt thereof, in

22 which event the Claims Administrator shall promptly mail the Notice and Proof of Claim to such

23 beneficial owners. Co-Lead Counsel shall, ifrequested, reimburse ban, brokerage houses or other

24 nominees solely for their fCasonable out-of-pocket expenses incurred in providing notice to

25 beneficial owners who are Class Members out of the Class Notice and Administration Fund, which

26 expenses would not have been incurred except for the sending of such notice, subject to furthcr order

27 of this Court with rcspcct to any disputc conccrning such compensation.

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(PROPOSED) ORDER PRELlMINAIUL Y APPROVING SETTLEMENT AND

PROVIDING FOR NOTICE - C-00-1967-MHP - 2 -

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 3 of 10
6. All Members of the Class shall be bound by all determinations and judgments in the

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

3 7. Class Members who wish to paricipate in the settlement shall complete and submit

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

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

6 Date. Any Class Member who does not timely submit a Proof of Claim within the time provided for

7 shall be barred from sharing in the distribution of the proceeds of the Net Settlement Fund, unless

8 otherwise ordered by the Court.

9 8. The Court previously certified the Class, set forth at paragraph 1.4 ofthe Stipulation.

10 Pursuant to an order of the Court dated April 4, 2003, a Notice of Pendency of Class Action was sent

II to Class Members on April 13, 2003 advising them oftheirright to request exclusion from the Class.

12 The Court finds that the Notice of Pendency of Class Action complied fully with the requirements of

13 Rule 23 of the Federal Rules of Civil Procedure and due process, and thus, it is not necessary to

! 4 afford Class Members another opportunity to request exclusion from the Class pursuant to Rule

15 23(e)(3).

16 9. Any Member of the Class may enter an appearance in the Litigation, at their own

17 expense, individually or through counsel of their own choice. If they do not enter an appearance,

i 8 they wil be represented by Co-Lead CounseL.

19 10. Any Member of the Class may appear and show cause, ifhe, she or it has any reason,

20 why the proposed settlement of the Litigation should or should not be approved as fair, reasonable

21 and adequate, why ajudgment should or should not be entered thereon, why the Plan of Allocation

22 should or should not be approved, or why attorneys' fees and expenses should or should not be

23 awarded to Co-Lead Counsel; provided, however, that no Class Member or any other Person shall be

24 heard or entitled to contest the approval of the terms and conditions of the proposed settlement, or, if

25 approved, the Judgment to be entered thereon approving the same, or the order approving the Plan of

26 Allocation, or the attorneys' fees and expenses to be awarded to Co-Lead Counsel, unless that

27 Person has delivered by hand or sent by first class mail wtitten objections and copies of any papers

28 and briefs such that they are received on or before September 8, 2006, by: Leraeh Coughlin Stoia

(PROPOSED) ORDER PRELIMINARILY APPROVING SETTLEMENT AND PROVIDING FOR NOTICE - C-00-1967-MHP - 3-

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 4 of 10
Geller Rudman & Robbins LLP, Joy An Bull, 655 West Broadway, Suite 1900, San Diego,

2 California 92101; Bernstein Liebhard & Lifshitz, LLP, Timothy J. MacFall, 10 East 40th Street,

3 New York, New York 10016; and Quinn Emanuel Urquhar Oliver & Hedges, LLP, Duane R.

4 Lyons, 865 S. Figueroa Street, 10th Floor, Los Angeles, California 90017, and fied said objections,

5 papers and briefs with the Clerk of the United States District Court for the Northern District of

6 California, on or before September 8, 2006. Any Member of the Class who docs not make his, her

7 or its objection in the maner provided shall be deemed to have waived such objection and shall

8 forever be foreclosed from making any objection to the fairness or adequacy of the proposed

9 settlement as set forth in ile Stipulation, to the Plan of Allocation, or to the award of attorneys' fees

i 0 and expenses to Co-Lead Counsel, unless otherwise ordered by the Court.

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

12 legis of the Court, and shall remain subject to the jurisdiction of the Court, until such time as such

13 funds shall be distributed pursuant to the Stipulation and/or further order(s) of the Court.

14 12. All papers in support of the settlement, the Plan of Allocation, and the application by

15 Co-Lead Counsel for attorneys' fees or reimbursement of expenses shall be fied and served seven

16 (7) calendar days before the Settlement Hearing.

17 13. Neither Defendants nor their Related Parties shall have any responsibility for or

18 liability with respect to the Plan of Allocation or any applieation for attorneys' fees or

19 reimbursement of expenses submitted by Co-Lead Counsel, and such matters will be considered

20 separately from the fairness, reasonableness and adequacy of the settlement.

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

22 Allocation proposed by Co-Lead Counsel, and any application for attorneys' fees or reimbursement

23 of expenses shall be approved.

24 15. All reasonable expenses incuned in identifying and notifying Class Members, as well

25 as administering the Settlement Fund, shall be paid as set forth in the Stipulation. In the event the

26 settlement is not approved by the Court, or otherwise fails to become effective, neither the Lead

27 Plaintiffs nor Co-Lead Counsel shall have any obligation to repay any amounts actually and properly

28 disbursed from the Class Notice and Administration Fund.

(PROPOSED) ORDER PRELIMINARILY APPROVING SETlLEMENT AND

PROVIDING FOR NOTICE - C-00-1967-MHP -4 -

filing

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 5 of 10
16. Neither the Stipulation, nor any ofits terms or provisions, nor any of the negotiations

2 or proceedings connected with it, shall be construed as an admission or concession by Defendants or

3 their Related Parties of the truth of any of the allegations in the Litigation, or of any liabilty, fault,

4 or wrongdoing of any kind.

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

6 further notice to the Members of the Class, and retains jursdiction to consider all furher

7 applieations arising out of or connected with the proposed settlement. The Court may approve the

8 settlement, with such modifications as may be agreed to by the Settling Paries, if appropriate,

9 without further notice to the Class.

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11 DATED:

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14 Submitted by:

15 LERACH COUGHLIN STOIA GELLER

RUDMAN & ROBBINS LLP

16 WILLIAM S. LERACH

JOY ANN BULL

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20 655 West Broadway, Suite 1900

San Diego, CA 92101

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Telephone: 619/231-1058

619/231-7423 (fax)

22 LERACH COUGHLIN STOIA GELLER

?' RUDMAN & ROBBINS LLP -j PATRICK J. COUGHLIN

24 JEFFREY W. LAWRENCE

CHRISTOPHER P. SEEFER

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ELI R. GREENSTEIN

100 Pine Street, Suite 2600

26 San Francisco, CA 94111

Telephone: 415/288-4545

27 415/288-4534 (fax)

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THE HONORABLE MARILYN H. PATEL

UNITED STATES DISTRICT JUDGE

(PROPOSED) ORDER PRELIMINARILY APPROVING SETTLEMENT AND

PROVIDING FOR NOTICE- C-00-1967-MHP - 5-

July 24, 2006

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge Marilyn H. Patel

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 6 of 10
BER.NSTEIN LIEBHARD & LIFSHITZ, LLP

2 SANDY A. LIEBHARD

KErTH M. FLEISCHMAN

3 JEFFREY M. HABER

TIMOTHY J. MacFALL

4 10 East 40th Street

New York, NY 10016

5 Telephone: 212/779-1414

2 J 2/779-3218 (fax)

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Co-Lead Counsel for Plaintiffs

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(PROPOSED) ORDER PRELIMINARILY APPROVING SETTLEMENT AND PROVIDING FOR NOTICE - C-00-1967-MHP - 6-

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 7 of 10
CERTIFICATE OF SERVICE

2 i hereby certify that on July 6, 2006, i electronically fied the foregoing with the Clerk of the

3 Court using the CMIECF system which wil send notifieation of such filing to the e-mail addresses

4 denoted on the attached Electronic Mail Notice List, and i hereby certify that I have mailed the

5 foregoing document or paper via the United States Postal Service to the non-CMlCF paricipants

6 indicated on the attached Manual Notice List.

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

8 Internet site at: http://securities.lerachlaw.coniJ.

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~i 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:J ovbíaUerach law .eom

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Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 8 of 10
CAt'JD-ECF Page 1 of2

Mailng Information for a Case 3:00-cv-01967-MHP

Electronic Mail Notice List

The following are those who are currently on the list to receive e-mail notices for this case.

. Martin D. Chitwood

mdc(¡classlaw.com las(¡classlaw .com ;tft(¡classlaw .com

. Thad Alan Davis

thaddavis(¡quinnemanuel.com

. Amber L. Eck

e _fie _sd(¡lerachlaw.com

. Eli Greenstein

Eli g(¡lerachlaw .com e _fie _ sd(¡lerachlaw .com;e _file _ sf(¡lerachlaw.com

. Charles J. Landy

charles.landy(¡pilsburylaw.com

. Jeffrey W. Lawrence

jeffreyl(¡lerachlaw.com e _fie _ sd(¡lerachlaw.com;e _fie _ sf(¡lerachlaw .com

. Wiliam S. Lerach

e _fie _ sd(¡lerachlaw .com

. Robert C. Sehubert

rschu bert(¡schubert -reed .com

. Christopher Paul Seefer

chriss(¡leraehlaw.com

e _file _ sd(¡lerachlaw.com;e _fie _ sf(¡lerachlaw .com;KiyokoF(¡lerachlaw .com

. Jennie L. Wang

jenniewang(¡quinnemanuel.com amberbums(¡quinncmanuel.com

. Douglas R Young

cfisher(¡fbm.com

Manual Notice List

The following is the list of attorneys who are not on the list to receive e-mail notiees for this case (who

therefore require manual noticing). You may wish to use your mouse to select and copy this list into

your word processing progra in order to create notices or labels for these recipients.

Mark W. Bayer

Gardere Wynne Sewell LLP

300 Thanksgiving Tower

Dallas, 'lX 75201

https:l/ecf.cand.uscourts.gov/cgi-biniMaiIList.pl? 111186035003778- L _701_0-1 7/6/2006

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 9 of 10
CAND-ECF Page 2 of2

Brian A. Eddington

Law Offices of Brian A. Eddington

8941 Jefferson Highway

Ste. 200

Baton Rouge, LA 90809

Sandy A. Liebhard

Bernstein Liebhard & Lifshitz

10 East 40th St

New York, NY 10016

https:llecf.cand.uscourts.gov/cgi-binlailList.pI? i 11186035003 778-L _70 i _0-1 7/6/2006

Case 3:00-cv-01967-MHP Document 234 Filed 07/25/06 Page 10 of 10