Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-02811/USCOURTS-cand-3_06-cv-02811-16/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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COOLEY GODWARD 

KRONISH LLP

ATTORNEYS AT LA W

PALO ALTO

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761629 v5/PA 1.

STIPULATION AND [PROPOSED] ORDER STAYING 

POWER INTEGRATIONS’ MOTION TO DISMISS

C-06-2811-MHP

COOLEY GODWARD KRONISH LLP

JOHN C. DWYER (136533) (dwyerjc@cooley.com)

JEFFREY S. KARR (186372) (jkarr@cooley.com)

JEFFREY M. KABAN (235734) (jkaban@cooley.com)

Five Palo Alto Square

3000 El Camino Real

Palo Alto, CA 94306-2155

Telephone: (650) 843-5000

Facsimile: (650) 843-0663

Attorneys for Nominal Defendant

Power Integrations, Inc.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

Kimberly Quaco, Derivatively on Behalf of 

Nominal Defendant POWER 

INTEGRATIONS, INC.,

Plaintiff,

v.

Balu Balakrishnan, et al.

Defendants,

Power Integrations, Inc.,

Nominal Defendant.

Case No. C-06-2811-MHP

STIPULATION AND [PROPOSED] ORDER 

STAYING POWER INTEGRATIONS’

MOTION TO DISMISS TO ALLOW THE 

PARTIES TO FILE A MOTION FOR 

PRELIMINARY APPROVAL OF 

SETTLEMENT

Pursuant to Northern District Civil Local Rule 6-2, Nominal Defendant Power 

Integrations, Inc. (“Power Integrations”) and Representative Plaintiffs Geoffrey Wren, Kimberly 

Quaco, and Christopher DeBoskey (“Plaintiffs”), by and through their respective counsel of 

record, hereby stipulate and agree to extend the stay of Power Integrations’ Motion to Dismiss to 

allow the parties to finalize a written settlement agreement and file a Motion for Preliminary 

Approval of Settlement by two weeks. Previously, the parties agreed that if they had not 

submitted a Motion for Preliminary Approval of Settlement by December 28, 2007, Power 

Integrations would have two weeks from December 28, 2007, to file its Motion to Dismiss and 

would meet and confer with plaintiff’s counsel and submit a further stipulation regarding the 

Case 3:06-cv-02811-MHP Document 140 Filed 01/02/08 Page 1 of 5
COOLEY GODWARD 

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PALO ALTO

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STIPULATION AND [PROPOSED] ORDER STAYING 

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C-06-2811-MHP

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briefing schedule and new hearing date for such hearing. Given the holidays and vacation 

schedules, the parties need additional time to finalize the written settlement agreement and file a 

Motion for Preliminary Approval of Settlement and have agreed to extend the stay by two weeks, 

such that if the parties have not submitted a Motion for Preliminary Approval of Settlement by 

January 11, 2008, Power Integrations will have two weeks from such date to file its Motion to 

Dismiss. This stipulation is based on the following facts:

Whereas, representative plaintiff Kimberly Quaco initiated this shareholder derivative 

case on behalf of Nominal Defendant Power Integrations on or about April 25, 2006;

Whereas, on May 10, 2006, the parties stipulated that plaintiff would file the amended 

complaint on or before May 26, 2006 and that defendants would respond to such amended 

complaint on or before June 26, 2006;

Whereas, representative plaintiff Kimberly Quaco filed an amended complaint on 

May 26, 2006. At the time of filing, counsel for Power Integrations no longer represented all 

individual defendants. As a result, service was not completed on all defendants at the same time. 

By stipulation dated June 22, 2006 (and approved by the Court), the parties agreed to an effective 

service date and agreed that defendants would respond to the Quaco amended complaint on or 

before September 12, 2006;

Whereas, on August 1, 2006, after the parties had set the service and response dates by 

stipulation, Kathryn Champlin initiated a shareholder derivative action on behalf of Nominal 

Defendant Power Integrations based upon allegations that were virtually identical to those alleged 

in the Quaco case. Champlin also moved to be appointed lead plaintiff in the case;

Whereas, on September 5, 2006, the Court granted Power Integrations’ motion to extend 

the time to respond to the Quaco amended complaint until after the motion to consolidate and 

appoint lead plaintiff was resolved;

Whereas, on December 18, 2006, the Court appointed Geoffrey Wren as lead plaintiff 

and the law firm of Schiffrin Barroway Topaz & Kessler, LLP as lead counsel and ordered 

plaintiff to file a consolidated complaint no later than January 17, 2007;

Whereas, on February 9, 2007, April 10, 2007, and May 31, 2007, pursuant to 

Case 3:06-cv-02811-MHP Document 140 Filed 01/02/08 Page 2 of 5
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STIPULATION AND [PROPOSED] ORDER STAYING 

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C-06-2811-MHP

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stipulations by the parties, the Court extended Power Integrations’ time to respond to the 

Consolidated Complaint and stayed all other activities to allow the parties to engage in informal 

discovery and to discuss a potential resolution of this matter;

Whereas, on August 3, 2007, pursuant to a stipulation by the parties, plaintiffs filed an 

Amended Consolidated Complaint; 

Whereas, on September 11, 2007, and October 11, 2007 pursuant to stipulations by the 

parties, the Court extended Power Integrations’ time to respond to the Amended Consolidated 

Complaint and stayed all other activities to allow the parties to continue to discuss a potential 

resolution of this matter; 

Whereas, on October 4, 2007, the parties participated in a productive mediation with the 

Honorable Eugene Lynch (Ret.); 

Whereas, since the mediation, the parties have been engaged and continue to engage in 

negotiations with the goal of presenting a final written settlement agreement to the Court for 

preliminary approval on or before November 30, 2007;

Whereas, pursuant to stipulations filed on November 30, 2007, and December 14, 2007, 

the Court has extended the stay for two additional two week periods to allow the parties to 

finalize and present a final written settlement agreement to the Court for preliminary approval;

Whereas, the parties are working diligently to finalize the settlement agreement but need 

additional time (due primarily to the holidays and vacation schedules of the numerous counsel 

and parties who must review and approve the final settlement agreement) to present a final 

written settlement agreement to the Court for preliminary approval;

Whereas, the only scheduled events in this case are the briefing and hearing dates on 

nominal defendant Power Integrations’ motion to dismiss the case for failure of plaintiff to 

comply with the shareholder demand requirement. No other scheduled dates will be affected by 

this stipulation.

Now, therefore, it is hereby stipulated, by and between the undersigned, as follows:

1. Power Integrations response date and the corresponding briefing schedule to the 

Amended Consolidated Complaint are stayed;

Case 3:06-cv-02811-MHP Document 140 Filed 01/02/08 Page 3 of 5
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2. If the parties do not file a Motion for Preliminary Approval of Settlement by 

January 11, 2008, Power Integrations’ response to the Amended Consolidated Complaint will be 

due within two weeks of such date. If such filing becomes necessary, counsel for Power 

Integrations will meet and confer with counsel for the plaintiffs and select a mutually agreeable 

date for the remaining briefing schedule and hearing and submit a stipulation with such dates for 

approval.

Dated: December 28, 2007 SCHIFFRIN BARROWAY TOPAZ & KESSLER

By: /s/ Michael Wagner

Michael Wagner

Counsel for Lead Plaintiffs

Dated: December 28, 2007 COOLEY GODWARD KRONISH LLP

By: /s/ Jeffrey S. Karr

Jeffrey S. Karr

Attorneys for Nominal Defendant

Power Integrations, Inc.

ORDER

PURSUANT TO THE STIPULATION BY THE PARTIES, IT IS SO ORDERED.

Dated: ________________, 2007

The Honorable Marilyn Hall Patel

United States District Judge

1/2/2008

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge Marilyn H. Patel

Case 3:06-cv-02811-MHP Document 140 Filed 01/02/08 Page 4 of 5
COOLEY GODWARD 

KRONISH LLP

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PALO ALTO

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STIPULATION AND [PROPOSED] ORDER STAYING 

POWER INTEGRATIONS’ MOTION TO DISMISS

C-06-2811-MHP

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FILER’S ATTESTATION

Pursuant to General Order No. 45, Section X, Subparagraph B, the undersigned attests that 

all parties have concurred in the filing of this Stipulation and [Proposed] Order.

Dated: December 28, 2007 COOLEY GODWARD KRONISH LLP

By: /s/ Jeffrey S. Karr

Jeffrey S. Karr

Case 3:06-cv-02811-MHP Document 140 Filed 01/02/08 Page 5 of 5