Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_04-cv-03168/USCOURTS-cand-5_04-cv-03168-4/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 

SAN JOSE DIVISION 

In re THORATEC CORP. SECURITIES 

LITIGATION 

This Document Relates To: 

ALL ACTIONS. 

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Master File No. 5:04-cv-03168-RMW 

CLASS ACTION

ORDER PRELIMINARILY 

APPROVING SETTLEMENT AND 

PROVIDING FOR NOTICE 

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WHEREAS, a consolidated class action is pending before this Court entitled In re Thoratec 

Corp. Securities Litigation, Master File No. 5:04-cv-03168-RMW (the “Litigation”); 

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

Procedure 23(e), for an order approving the settlement of this Litigation, in accordance with a 

Stipulation of Settlement dated as of August 8, 2006 (the “Stipulation”), which, together with the 

Exhibits annexed thereto sets forth the terms and conditions for a proposed settlement of the 

Litigation and for dismissal of the Litigation with prejudice upon the terms and conditions set forth 

therein; and the Court having read and considered the Stipulation and the Exhibits annexed thereto; 

and 

WHEREAS, all defined terms contained herein shall have the same meanings as set forth in 

the Stipulation. 

NOW, THEREFORE, IT IS HEREBY ORDERED: 

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

forth therein, subject to further consideration at the Settlement Hearing described below. 

2. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, the Court hereby 

certifies, for purposes of effectuating this settlement, a Class defined as all Persons (other than those 

Persons who timely and validly request exclusion from the Class) who purchased Thoratec’s 

Publicly Traded Securities during the period April 28, 2004 to June 29, 2004. Excluded from the 

Class are Defendants, members of the immediate families of the Defendants, any entity in which any 

Defendant has or had a controlling interest, present or former directors and officers of Thoratec, and 

the legal representatives, heirs, successors, or assigns of any such Defendant. 

3. The Court finds, for the purposes of the settlement only, that the prerequisites for a 

class action under Rules 23(a) and (b)(3) of the Federal Rules of Civil Procedure have been satisfied 

in that: (a) the number of Class Members is so numerous that joinder of all members thereof is 

impracticable; (b) there are questions of law and fact common to the Class; (c) the claims of the 

named representative are typical of the claims of the Class he seeks to represent; (d) the Lead 

Plaintiff has and will fairly and adequately represent the interests of the Class; (e) the questions of 

law and fact common to the Members of the Class predominate over any questions affecting only 

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individual Members of the Class; and (f) a class action is superior to other available methods for the 

fair and efficient adjudication of the controversy. 

4. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, and for the purposes of 

the settlement only, Lead Plaintiff Craig Toby is certified as the class representative. 

5. A hearing (the “Settlement Hearing”) shall be held before this Court on 11/17, 

2006, at ____ _.m., at the United States District Court for the Northern District of California, San 

Jose Division, 280 South First Street, San Jose, California, to determine whether the proposed 

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

reasonable and adequate to the Class and should be approved by the Court; whether a Judgment as 

provided in ¶1.11 of the Stipulation should be entered herein; whether the proposed Plan of 

Allocation should be approved; and to determine the amount of fees and expenses that should be 

awarded to Lead Counsel. The Court may adjourn the Settlement Hearing without further notice to 

Members of the Class. 

6. The Court approves, as to form and content, the Notice of Pendency and Proposed 

Settlement of Class Action (the “Notice”), the Proof of Claim and Release form (the “Proof of 

Claim”), and Summary Notice annexed as Exhibits A-1, A-2 and A-3 hereto, and finds that the 

mailing and distribution of the Notice and publishing of the Summary Notice substantially in the 

manner and form set forth in this Order meet the requirements of Federal Rule of Civil Procedure 23, 

§21D(a)(7) of the Securities Exchange Act of 1934, 15 U.S.C. §78u-4(a)(7) as amended by the 

Private Securities Litigation Reform Act of 1995, and due process, and is the best notice practicable 

under the circumstances and shall constitute due and sufficient notice to all Persons entitled thereto. 

7. Lead Counsel are hereby authorized to retain the firm of RSM McGladrey (“Claims 

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

as more fully set forth below: 

(a) Not later than ___________, 2006 (the “Notice Date”), the Claims 

Administrator shall cause a copy of the Notice and the Proof of Claim, substantially in the form 

annexed as Exhibits A-1 and A-2 hereto, to be mailed by first class mail to all Class Members who 

can be identified with reasonable effort; 

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(b) Not later than ___________, 2006 the Claims Administrator shall cause the 

Summary Notice to be published once in Investor’s Business Daily; and 

(c) At least seven (7) days prior to the Settlement Hearing, Lead Counsel shall 

serve on Defendants’ counsel and file with the Court proof, by affidavit or declaration, of such 

mailing and publishing. 

8. Nominees who purchased Thoratec’s Publicly Traded Securities during the period 

beginning April 28, 2004 to June 29, 2004 for the beneficial ownership of another Person shall send 

the Notice and the Proof of Claim to such beneficial owners of such Thoratec’s Publicly Traded 

Securities within ten (10) days after receipt thereof, or send a list of the names and addresses of such 

beneficial owners to the Claims Administrator within ten (10) days of receipt thereof in which event 

the Claims Administrator shall promptly mail the Notice and Proof of Claim to such beneficial 

owners. 

9. All Members of the Class shall be bound by all determinations and judgments in the 

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

10. Class Members who wish to participate in the settlement shall complete and submit 

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

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

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

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

otherwise ordered by the Court, but shall nevertheless be bound by any Final Judgment entered by 

the Court. 

11. Any Member of the Class may enter an appearance in the Litigation, at his, her or its 

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

appearance, they will be represented by Lead Counsel. 

12. Pending final determination of whether the settlement should be approved, neither the 

Lead Plaintiff nor any Class Member, either directly, representatively, or in any other capacity, shall 

commence or prosecute against any of the Released Parties, any action or proceeding in any court or 

tribunal asserting any of the Released Claims. 

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13. Any Person falling within the definition of the Class may, upon request, be excluded 

from the Class. Any such Person must submit to the Claims Administrator a request for exclusion 

(“Request for Exclusion”), postmarked no later than ____________, 2006. A Request for Exclusion 

must be signed and state: (a) the name, address, and telephone number of the Person requesting 

exclusion; (b) the Person’s purchases and sales of Thoratec’s Publicly Traded Securities made during 

the Class Period, including the dates, the number of shares purchased, and price paid or received for 

each such purchase or sale; and (c) that the Person wishes to be excluded from the Class. All 

Persons who submit valid and timely Requests for Exclusion in the manner set forth in this 

paragraph shall have no rights under the Stipulation, shall not share in the distribution of the 

Settlement Fund, and shall not be bound by the Stipulation or the Final Judgment. 

14. Any Member of the Class may appear and show cause, if he, she or it has any reason 

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

adequate, or why a Judgment should not be entered thereon, why the Plan of Allocation should not 

be approved, why attorneys’ fees and expenses should not be awarded to counsel for the Lead 

Plaintiff or why Lead Plaintiff’s expenses (including lost wages) should not be awarded; provided, 

however, that no Class Member or any other Person shall be heard or entitled to contest the approval 

of the terms and conditions of the proposed settlement, or, if approved, the Judgment to be entered 

thereon approving the same, or the order approving the Plan of Allocation, or the attorneys’ fees and 

expenses to be awarded to counsel for the Lead Plaintiff unless that Person has served on the 

following counsel (delivered by hand or sent by first class mail) written objections and copies of any 

papers and briefs in support thereof on or before __________, 2006: Lerach Coughlin Stoia Geller 

Rudman & Robbins LLP, Jeffrey D. Light, 655 West Broadway, Suite 1900, San Diego, California 

92101; Federman & Sherwood, William B. Federman, 120 North Robinson, Suite 2720, Oklahoma 

City, Oklahoma 73102 and Gibson, Dunn & Crutcher LLP, Jonathan C. Dickey, 1881 Page Mill 

Road, Palo Alto, California 94304, and filed said objections, papers and briefs with the Clerk of the 

United States District Court for the Northern District of California, San Jose Division on or before 

_____________, 2006. Any objection must contain a written notice of the grounds for opposing the 

settlement, Plan of Allocation, application for attorneys’ fees and costs and expenses or Lead 

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Plaintiff’s expenses and must demonstrate the objecting Person’s membership in the Class by 

including: (a) the objecting Person’s name, address and telephone number; (b) formal proof of the 

number of shares of Thoratec common stock, and/or the number of Put or Call Options purchased 

and sold during the Class Period by the objecting Person; and (c) a statement of the reasons for 

objection. Any Member of the Class who does not make his, her or its objection in the manner 

provided shall be deemed to have waived such objection and shall forever be foreclosed from 

making any objection to the fairness or adequacy of the proposed settlement as incorporated in the 

Stipulation, to the Plan of Allocation, and to the award of attorneys’ fees and expenses to counsel for 

the Plaintiffs and Lead Plaintiff’s expenses, unless otherwise ordered by the Court. 

15. 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 

Class Member or counsel to the Lead Plaintiff shall have any right to any portion of, or in the 

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

the Stipulation. 

16. All funds held by the Escrow Agent 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(s) of the Court. 

17. All papers in support of the settlement, the Plan of Allocation, and any application by 

counsel for the Lead Plaintiff for attorneys’ fees or reimbursement of expenses shall be filed with the 

Court and served at least seven (7) days prior to the Settlement Hearing. 

18. Neither Defendants nor Defendants’ counsel shall have any responsibility for the Plan 

of Allocation or any application for reimbursement of attorneys’ fees or reimbursement of expenses 

submitted by Plaintiffs’ Counsel, and such matters will be considered separately from the fairness, 

reasonableness and adequacy of the settlement. 

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

Allocation proposed by Lead Counsel, and any application for attorneys’ fees or reimbursement of 

expenses shall be approved. 

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CERTIFICATE OF SERVICE

I hereby certify that on August 23, 2006, I electronically filed the foregoing with the Clerk of 

the Court using the CM/ECF system which will send notification of such filing to the e-mail 

addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I have 

mailed the foregoing document or paper via the United States Postal Service to the non-CM/ECF 

participants indicated on the attached Manual Notice List. 

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

Internet site at: http://securities.lerachlaw.com/. 

 s/ BRIAN O. O’MARA 

 BRIAN O. O’MARA 

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:jeffl@lerachlaw.com

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