Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_00-cv-04263/USCOURTS-cand-3_00-cv-04263-2/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

---

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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

Jordan L. Lurie (130013)

Leigh A. Parker (170565)

WEISS & LURIE

10940 Wilshire Boulevard, Suite 2300

Los Angeles, CA 90024

Tel: (310) 208-2800

Fax: (310) 209-2348 

Lead Counsel for the Settlement Class

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

In Re QUINTUS SECURITIES

LITIGATION

 

This Document Relates to:

ALL ACTIONS.

 

)

)

)

)

)

)

)

)

CASE NO: C-00-4263 VRW

CLASS ACTION

AMENDED [PROPOSED] ORDER

DIRECTING NOTICE OF PENDENCY

AND SETTLEMENT OF CLASS

ACTION AND SETTING HEARING

DATE FOR FINAL APPROVAL OF

SETTLEMENT; EXHIBITS ATTACHED

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 1 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

1

WHEREAS, on July 7, 2006, this Court issued an Order (the “July 7 Order”): 1) granting

preliminary approval of the Settlement of the above-captioned litigation (the “Litigation”), the

proposed Plan of Allocation and an award of attorney fees and expenses; 2) certifying the

Settlement Class; 3) directing certain revisions to the proposed Notice of Pendency and Proposed

Settlement of Class Action and Settlement Hearing (the “Notice”) and Summary Notice for

Publication (the “Summary Notice”); and 4) providing that approval of the Notice and Summary

Notice will be granted, and related ministerial orders concerning the Settlement will be entered,

after the Court has reviewed revised versions of the Notice and Summary Notice that conform to

the July 7 Order; and

WHEREAS, the parties concurrently herewith submit an amended Notice and Summary

Notice conforming to the July 7 Order, together with a Proof of Claim and Release Form and

proposed Judgment providing for the dismissal of the Litigation with prejudice as against all

Defendants upon the terms and conditions set forth in the parties’ Stipulation of Settlement

(“Stipulation”) for this Court’s review; and

WHEREAS, plaintiffs’ Lead Counsel has conferred with the other parties regarding the

date to be set for the hearing to consider whether final approval of the Settlement shall be granted

(the “Settlement Hearing”) and confirmed that this Court is available for the Settlement Hearing

on October 19, 2006 and no party has objected to that date.

NOW, THEREFORE, IT IS HEREBY ORDERED:

1. This order (the “Notice Order”) hereby incorporates by reference the definitions in

the Stipulation, and all terms used herein shall have the same meanings as set forth in the

Stipulation.

2. The Settlement Hearing shall be held before the Honorable Vaughn R. Walker,

approximately 75 days from the date of signing of this Notice Order, on October 19, 2006 at 2:00

p.m. in the United States District Court, Northern District of California, located at 450 Golden

Gate Avenue, San Francisco, California 94102, to determine: (i) whether the Proposed

Settlement of the Litigation on the terms and conditions provided for in the Stipulation is fair,

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 2 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

2

reasonable and adequate; (ii) whether it should be approved by the Court; (iii) whether Judgment,

in substantially the form attached to the Stipulation as Exhibit B, should be entered dismissing

the Litigation on the merits and with prejudice as against all Defendants; (iv) whether the

proposed Plan of Allocation is fair and reasonable; and (iv) whether Lead Counsel’s application

for attorneys’ fees and reimbursement of costs and expenses should be approved. The Court may

continue or adjourn the Settlement Hearing without further notice to the Settlement Class.

5. The Court hereby approves, as to form and content, the Notice annexed hereto as

Exhibit A-1, the Proof of Claim and Release annexed hereto as Exhibit A-2, and the Summary

Notice annexed hereto as Exhibit A-3. The Court finds that the publication of the Summary

Notice and mailing and distribution of the Notice substantially in the manner and form set forth

in paragraphs 6 and 7 of this Notice Order meets the requirements of due process, and is the best

notice practicable under the circumstances and shall constitute due and sufficient notice to all

Persons entitled thereto.

6. Lead Counsel shall make reasonable efforts to identify all Persons who are

Settlement Class Members, including beneficial owners whose Quintus common stock is or was

held by banks, brokerage firms, or other nominees. Lead Counsel shall mail or cause to be

mailed the Notice and the Proof of Claim and Release by first class mail to all Members of the

Settlement Class who can be identified by reasonable notice. The cost of notice to stockholders

will be paid out of the Settlement Fund, as addressed in the Stipulation. Lead Counsel is hereby

empowered to supervise and administer the notice procedure as set forth below. Lead Counsel is

hereby authorized to retain the firm of Berdon Claims Administration LLC (the “Claims

Administrator”) to administer the notice procedure as well as the processing of claims as more

fully set forth herein. The Claims Administrator shall be responsible for the receipt of all

responses from Settlement Class Members and shall preserve all Proof of Claim forms and any

and all other written communications from Settlement Class Members, nominees, or any other

Person in response to the Notice or Summary Notice until one year following the date of

distribution of the proceeds of the Net Settlement Fund to the Settlement Class Members or

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 3 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

3

pursuant to further order of the Court. Within five (5) business days from the date of this Notice

Order (the “Notice Date”), Quintus, or its Bankruptcy Trustee, or its transfer agent shall provide

the Claims Administrator with a list containing the identity of all record holders of Quintus

common stock who purchased or acquired their Quintus common stock during the Settlement

Class Period (the “List”). The List shall contain the names and addresses of all purchasers of the

common stock during the Settlement Class Period. Defendants and/or their transfer agent shall

bear all costs or expenses associated with providing the Claims Administrator with the List. 

Within twenty-one (21) days from the Notice Date, Lead Counsel or their designee shall mail, or

cause to be mailed by first class mail, copies of the Notice substantially in the form annexed

hereto as Exhibit A-1 to all Members of the Settlement Class who can be identified with

reasonable effort. Within twenty-one (21) days from the Notice Date, Lead Counsel shall cause

the Summary Notice to be published, substantially in the form annexed hereto as Exhibit A-3,

once in a widely circulated national business-oriented publication or wire service. At least five

(5) calendar days prior to the Settlement Hearing, Lead Counsel shall serve and file with the

Court proof by affidavit or declaration of such mailing and publishing.

7. Nominees who purchased or otherwise acquired Quintus common stock during

the Settlement Class Period are directed to: (a) send the Notice and the Proof of Claim and

Release to all beneficial owners of Quintus common stock purchased or otherwise acquired

during the Settlement Class Period, within ten (10) days after receipt of the Notice; or (b) send a

list of the names and addresses of such beneficial owners to Lead Counsel within ten (10) days

after receipt of the Notice.

8. Unless otherwise ordered by the Court, all Members of the Settlement Class shall

be bound by the terms of any judgment entered in the Litigation concerning the Proposed

Settlement (including the Judgment), whether favorable or unfavorable to the Settlement Class. 

Any Member of the Settlement Class who does not properly and timely request exclusion shall

be included in the Settlement Class and shall be bound by any judgment (including the

Judgment) entered in the Litigation.

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 4 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

4

9. Settlement Class Members who wish to participate in the distribution of the

Settlement Fund shall complete and submit Proof of Claim and Release forms in accordance with

the instructions contained therein. Unless the Court orders otherwise, all Proof of Claim and

Release forms must be received by the Claims Administrator postmarked no later than 120 days

from the date this Notice Order is signed. Any Settlement Class Member who does not submit a

properly completed Proof of Claim and Release form within the time provided shall be barred

from sharing in the distribution of the proceeds of the Net Settlement Fund unless otherwise

ordered by the Court.

10. Any Settlement Class Member who wishes to be excluded from the Settlement

Class must provide, postmarked no later than twenty-one (21) days prior to the Settlement

Hearing, written notice of such request to the Claims Administrator identified in the Notice,

referring to the Litigation and setting forth his or her name, address, and transactions in Quintus

common stock during the Settlement Class Period (including each date of acquisition, purchase

and sale and each price and amount paid and/or received). Unless otherwise ordered by the

Court, all Settlement Class Members not exercising the option to be excluded from the

Settlement Class within the specified time period shall be bound by the Stipulation, the

Settlement and releases contained therein, and the Judgment entered hereon, and shall not have

any further opportunity to opt out of the Settlement Class. Any Settlement Class Member who

shall timely and properly elect to be excluded from the Settlement Class shall be permitted to

revoke such election by mailing, within the required time frame, a request for revocation to Lead

Counsel, and in such event shall once again become a Settlement Class Member for all purposes. 

Any Person who, pursuant to the provisions of this paragraph and the Notice, elects to be

excluded from the Settlement Class and does not revoke such election as provided above, shall

have no right to any portion of the Settlement Fund, and shall be left, as to the Released Persons

and the Released Claims, only to his or her individual remedies.

11. Any Member of the Settlement Class may appear and show cause why the

Proposed Settlement of the Litigation embodied in the Stipulation should or should not be

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 5 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

5

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

thereon, and/or to present opposition to the Plan of Allocation or the application of Lead Counsel

for fees and expenses. However, no Settlement Class Member or any other Person shall be heard

or entitled to contest the approval of the terms and conditions of the Stipulation and the

Settlement, or, if approved, the Judgment to be entered thereon approving the same, unless on or

before twenty-one (21) days prior to the Settlement Hearing, that Settlement Class Member or

Person has served by hand or otherwise caused to be delivered written objections, including the

basis therefor, as well as copies of any papers and/or briefs in support of his or her position upon: 

Jordan L. Lurie, Leigh A. Parker, WEISS & LURIE, Suite 2300, 10940 Wilshire Boulevard, Los

Angeles, CA 90024; and Kurt F. Gwynne, REED SMITH LLP, 1201 Market Street, Suite 1500,

Wilmington, DE 19801; Boris Feldman, Douglas J. Clark, Peri B. Nielsen, WILSON SONSINI

GOODRICH & ROSATI, Professional Corporation, 650 Page Mill Road, Palo Alto, CA 94304-

1050; Sara B. Brody, HELLER EHRMAN LLP, 333 Bush Street, San Francisco, CA 94104-

2878; and Michael Tubach, O’MELVENY & MYERS, LLP, Embarcadero Center West, 275

Battery Street, Suite 2600, San Francisco, CA 94111-3304 and file said objections, papers and

briefs with the Clerk of the United States District Court for the Northern District of California. 

Any Settlement Class Member or Person who does not make his, her or its objection in the

manner provided for herein shall be deemed to have waived such objection and shall forever be

foreclosed from making any objection to the fairness or adequacy of the Settlement as

incorporated in the Stipulation, unless otherwise ordered by the Court. The manner in which a

notice of objection should be prepared, filed and delivered shall be stated in the Notice. Unless

the Court orders otherwise, only Settlement Class Members who have filed and delivered valid

and timely notices of objection will be entitled to be heard at the Settlement Hearing.

12. All papers in support of the Settlement and for reimbursement of attorneys’ fees

and expenses shall be filed with the Court and served on Defendants’ counsel at least five (5)

calendar days prior to the Settlement Hearing. Neither Defendants nor Defendants’ counsel shall

have any responsibility for the Plan of Allocation and it will be considered separately from the

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 6 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

6

fairness, reasonableness and adequacy of the Settlement. At or after the Settlement Hearing, the

Court will determine whether Lead Counsel’s proposed Plan of Allocation should be approved.

13. The passage of title and ownership of the Settlement Fund to the Escrow Agent in

accordance with the terms and obligations of the Stipulation is approved. No Person that is not a

Settlement Class Member or Lead Counsel shall have any right to any portion of, or any rights in

the distribution of, the Settlement Fund unless otherwise ordered by the Court or otherwise

provided in the Stipulation.

14. All funds held in the Escrow Account shall be deemed and considered to be in

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

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

15. Lead Counsel may use the proceeds of the Settlement Fund to pay the costs and

expenses reasonably and actually incurred in connection with providing notice to the Settlement

Class, locating Settlement Class Members, soliciting Settlement Class claims, assisting with the

filing of claims, administering and distributing the Net Settlement Fund to the Members of the

Settlement Class, processing Proofs of Claim and Release and paying escrow fees and costs, if

any. 

16. The Court reserves the right to continue or adjourn the date of the Settlement

Hearing without further notice to Members of the Settlement Class, and retains jurisdiction to

consider all further applications arising out of or connected with the Proposed Settlement.

17. Neither the Stipulation nor the Settlement provided for therein, nor any act

performed or document executed pursuant to or in furtherance of the Stipulation or the

Settlement: (i) is or may be deemed to be or may be used as an admission of, or evidence of, the

validity of any Released Claim, or of any wrongdoing or liability on the part of any of the

Released Persons; or (ii) is or may be deemed to be or may be used as an admission of, or

evidence of, any fault or omission of any of the Released Persons in any civil, criminal or

administrative proceeding in any court, administrative agency or other tribunal, other than in such

proceedings as may be necessary to consummate or enforce the Stipulation, or the Settlement

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 7 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

7

provided for therein, or the Judgment, except that the Released Persons may file the Stipulation

and/or the Judgment in any action that may be brought against them in order to support a defense

or counterclaim based on principles of res judicata, collateral estoppel, release, good faith

settlement, judgment bar or reduction or any other theory of claim preclusion or issue preclusion

or similar defense or counterclaim.

18. Pending final approval of the Settlement reflected in the Stipulation, neither the

Lead Plaintiff nor Members of the Settlement Class, shall directly, representatively, or in any

other capacity, commence or prosecute any action or proceeding in any court or tribunal asserting

any of the Released Claims against any of the Released Persons. All discovery and other

proceedings in the Litigation are stayed until further order of the Court, except as may be

necessary to implement or comply with the terms of the Stipulation.

19. The Judgment will permanently bar and enjoin the Lead Plaintiff and all Members

of the Settlement Class who did not timely and validly request exclusion from the Settlement

Class from instituting or prosecuting, in any capacity, any action or proceeding that involves or

asserts any of the Released Claims against any of the Released Persons and upon the Effective

Date any such Settlement Class Member shall conclusively be deemed to have released any and

all such Released Claims as against any and all of the Released Persons.

20. If the Settlement is not approved or consummated for any reason whatsoever, the

Settlement and all proceedings had in connection therewith shall be without prejudice to the

status quo ante rights of the parties to the Litigation, except as otherwise set forth in the

Stipulation.

DATED: _________________ _________________________________________

HONORABLE VAUGHN R. WALKER

UNITED STATES DISTRICT COURT JUDGE

July 25, 2006

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 8 of 9
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

AMENDED [PROPOSED] ORDER DIRECTING NOTICE OF PENDENCY In re Quintus Corp. Sec. Litig., Case No. 00-4263 VRW

8

Respectfully submitted by:

Jordan L. Lurie

Leigh A. Parker

WEISS & LURIE

10940 Wilshire Boulevard, Suite 2300

Los Angeles, CA 90024

Tel: (310) 208-2800

Fax: (310) 209-2348

Lead Counsel for the Settlement Class

Kurt F. Gwynne

REED SMITH LLP

1201 Market Street, Suite 1500

Wilmington, DE 19801

Tel: (302) 778-7500 

Fax: (302) 778-7575

Chapter 11 Trustee for the Quintus Estate

Boris Feldman

Douglas J. Clark

Peri B. Nielsen

WILSON SONSINI GOODRICH & ROSATI

Professional Corporation

650 Page Mill Road

Palo Alto, CA 94304-1050

Tel: (650) 493-9300

Fax: (650) 565-5100

Counsel for Defendants Paul H. Bartlett, Andrew Busey, Frederic W. Harman, William Herman,

Alexander Rosen, Robert W. Shaw, Jeanne Wohlers, Oak Investment Partners VI, LP and Oak VI

Affiliates Fund, LP

Sara B. Brody

HELLER EHRMAN LLP

333 Bush Street

San Francisco, CA 94104-2878

Tel: (415) 772-6000

Fax: (415) 772-6268

Counsel for Defendant Susan Salvesen

Michael Tubach

O’MELVENY & MYERS, LLP

Embarcadero Center West

275 Battery Street, Suite 2600

San Francisco, CA 94111-3304

Tel: (415) 984-8700

Fax: (415) 984-8701

Counsel for Defendant Alan Anderson

Case 3:00-cv-04263-VRW Document 273 Filed 07/25/06 Page 9 of 9