Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-02394/USCOURTS-cand-3_05-cv-02394-7/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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For the Northern District of California

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States District C

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For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

IN RE MAGMA DESIGN AUTOMATION,

INC. SECURITIES LITIGATION

 

THIS DOCUMENT RELATES TO:

ALL ACTIONS

No. C 05-02394 CRB

ORDER

Now pending before the Court is defendant’s motion to dismiss this securities fraud

action. Plaintiff has failed to plead with particularity that defendants Gregory C. Walker and

Roy Jewell had the requisite scienter grounded in an awareness that the validity of the

company’s patents was in question. Accordingly, they are hereby dismissed from the case. 

Plaintiff, however, has alleged with sufficient particularity that Rajeev Madhavan, Magma’s

CEO, made false or misleading statements with the requisite scienter to state a Rule 10b-5

claim for securities fraud under sections 10(b) and 20(a) of the Securities Exchange Act of

1934. Accordingly, the motion is DENIED as to Madhavan and the company. 

IT IS SO ORDERED.

Dated: August 18, 2006

 

CHARLES R. BREYER

UNITED STATES DISTRICT JUDGE

Case 3:05-cv-02394-CRB Document 75 Filed 08/18/06 Page 1 of 2
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Case 3:05-cv-02394-CRB Document 75 Filed 08/18/06 Page 2 of 2