Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_02-cv-04497/USCOURTS-cand-5_02-cv-04497-6/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 ESS TECHNOLOGY, INC. 

SECURITIES LITIGATION 

This Document Relates To: 

ALL ACTIONS. 

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Master File No. C-02-4497-RMW 

CLASS ACTION

STIPULATION AND [] ORDER 

PRELIMINARILY APPROVING 

SETTLEMENT AND PROVIDING FOR 

NOTICE 

*E-FILED - 5/8/07*

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WHEREAS, a class action is pending before the Court entitled In re ESS Technology, Inc. 

Securities Litigation, Master File No. C-02-4497-RMW (the “Litigation”); 

WHEREAS, the Settling Parties submit herewith the Stipulation of Settlement and Release 

dated as of November 12, 2006 (the “Stipulation”), that has been entered into by the Lead Plaintiff 

and Defendants, setting forth the terms of the settlement of the Litigation; 

THEREFORE, the Settling Parties, by and through their counsel, hereby stipulate as follows: 

1. All defined terms contained herein shall have the same meanings as set forth in the 

Stipulation. 

2. Pursuant to Federal Rule of Civil Procedure 23(e), the Settling Parties jointly request 

the Court to enter this order preliminarily approving the settlement of this Litigation, in accordance 

with the Stipulation which, together with the Exhibits annexed thereto and the Supplemental 

Agreement, 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. 

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3. The Settling Parties further jointly request that the Court find that the proposed notice 

procedures and the schedule of events set forth herein meet the requirements of Federal Rule of Civil 

Procedure 23 and due process. 

 IT IS SO STIPULATED. 

DATED: April 30, 2007 LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

PATRICK J. COUGHLIN 

JOHN K. GRANT 

LUKE O. BROOKS 

100 Pine Street, Suite 2600 

San Francisco, CA 94111 

Telephone: 415/288-4545 

415/288-4534 (fax) 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

WILLIAM S. LERACH 

JOY ANN BULL 

s/ Joy Ann Bull 

JOY ANN BULL 

655 West Broadway, Suite 1900 

San Diego, CA 92101 

Telephone: 619/231-1058 

619/231-7423 (fax) 

Lead Counsel for Plaintiffs 

SCOTT & SCOTT, LLC 

DAVID R. SCOTT 

108 Norwich Avenue 

Colchester, CT 06415 

Telephone: 860/537-3818 

860/537-4432 (fax) 

GLANCY & BINKOW LLP 

LIONEL Z. GLANCY 

KEVIN RUF 

1801 Avenue of the Stars, Suite 311 

Los Angeles, CA 90067 

Telephone: 310/201-9150 

310/201-9160 (fax) 

Counsel for Plaintiffs 

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I, Joy Ann Bull, am the ECF User whose ID and password are being used to file this 

Stipulation and [Proposed] Order Preliminarily Approving Settlement and Providing for Notice. In 

compliance with General Order 45, X.B., I hereby attest Meredith N. Landy has concurred in this 

filing. 

DATED: April 30, 2007 O’MELVENY & MYERS LLP 

MEREDITH N. LANDY 

JOSHUA D. BAKER 

s/ Meredith N. Landy 

MEREDITH N. LANDY 

2765 Sand Hill Road 

Menlo Park, CA 94025 

Telephone: 650/473-2600 

650/473-2601 (fax) 

Counsel for Defendants 

* * * 

O R D E R 

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. A hearing (the “Settlement Hearing”) shall be held before this Court on July 27, 2007, 

at 9:00 a.m., at 2112 Robert F. Peckham Federal Building and United States Courthouse, 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, just, reasonable and adequate to the 

Class and Defendants and should be approved by the Court; whether a Judgment as provided in 

¶1.12 of the Stipulation should be entered herein; whether the proposed Plan of Allocation should be 

approved; to determine the amount of fees and expenses that should be awarded to plaintiff’s 

counsel; and to determine the amount of expenses to be reimbursed to the Lead Plaintiff. The Court 

may adjourn the Settlement Hearing without further notice to Members of the Class. 

3. 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 

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Claim”), and Summary Notice for publication 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 ¶¶4 and 5 of this Order meet the requirements of 

Federal Rule of Civil Procedure 23 and due process, and is the best notice practicable under the 

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

4. The firm of Gilardi & Co. LLC (“Claims Administrator”) is hereby appointed to 

supervise and administer the notice procedure as well as the processing of claims as more fully set 

forth below: 

(a) Not later than June 5, 2007 (the “Notice Date”), Lead Counsel shall cause a 

copy of the Notice and the Proof of Claim, substantially in the forms annexed as Exhibits A-1 and A2 hereto, to be mailed by first class mail to all Class Members who can be identified with reasonable 

effort; 

(b) Not later than June 5, 2007, Lead Counsel shall cause the Summary Notice to 

be published once in Investor’s Business Daily; and 

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

shall cause to be served on Defendants’ counsel and filed with the Court proof, by affidavit or 

declaration, of such mailing and publishing. 

5. Nominees who purchased the publicly traded securities of ESST for the beneficial 

ownership of Class Members during the Class Period shall send the Notice and the Proof of Claim to 

all beneficial owners of such ESST 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. Lead Counsel shall, if requested, reimburse banks, 

brokerage houses or other nominees solely for their reasonable out-of-pocket expenses incurred in 

providing notice to beneficial owners who are Class Members out of the Settlement Fund, which 

expenses would not have been incurred except for the sending of such Notice, subject to further 

order of this Court with respect to any dispute concerning such compensation. 

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6. 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. 

7. 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. Notwithstanding the foregoing, Lead Counsel may, in their 

discretion, accept late-submitted claims for processing by the Claims Administrator so long as 

distribution of the Net Settlement Fund is not materially delayed thereby. 

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

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

they will be represented by Lead Counsel. 

9. 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 July 16, 2007. A Request for Exclusion must 

state: (a) the name, address, and telephone number of the Person requesting exclusion; (b) each of 

the Person’s purchases and sales of ESST publicly traded securities made during the Class Period, 

including the dates of purchase or sale, the number of shares purchased and/or sold, and the price 

paid or received per share 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 Net Settlement Fund, and shall not be bound by the Stipulation or the Judgment 

entered in the Litigation. 

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

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

adequate or why a judgment should or should not be entered thereon. Any Member of the Class may 

appear and show cause, if he, she or it has any, why the Plan of Allocation should or should not be 

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

Plaintiff, or why the expenses of the Lead Plaintiff should or should not be awarded. However, no 

Class Member or any other Person shall be heard or entitled to contest such matters, unless that 

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

and briefs such that they are received on or before July 16, 2007, by Lerach Coughlin Stoia Geller 

Rudman & Robbins LLP, Joy Ann Bull, 655 W. Broadway, Suite 1900, San Diego, CA, 92101 and 

O’Melveny & Myers LLP, Joshua D. Baker, 2765 Sand Hill Road, Menlo Park, CA 94025, and filed 

said objections, papers and briefs with the Clerk of the United States District Court for the Northern 

District of California, on or before July 16, 2007. Any Member of the Class who does not make his, 

her or its objection in the manner provided above 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 set forth in the Stipulation, to the Plan of Allocation, or to the award of attorneys’ fees 

and expenses to counsel for the Lead Plaintiff or expenses of the Lead Plaintiff, unless otherwise 

ordered by the Court. 

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

legis of the Court, 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. 

12. 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 or by the Lead 

Plaintiff for reimbursement of his expenses shall be filed and served seven (7) calendar days prior to 

the Settlement Hearing. 

13. Neither Defendants and their Related Parties nor Defendants’ counsel shall have any 

responsibility for the Plan of Allocation or any application for attorneys’ fees or reimbursement of 

expenses submitted by counsel for Lead Plaintiff or the Lead Plaintiff, and such matters will be 

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

14. 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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15. All reasonable expenses incurred in identifying and notifying Class Members, as well 

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

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

Plaintiff nor any of his counsel shall have any obligation to repay any amounts incurred or properly 

disbursed pursuant to ¶¶2.6 or 3.1 of the Stipulation. 

16. Neither the Stipulation, nor any of its terms or provisions, nor any of the negotiations 

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

the truth of any of the allegations in the Litigation, or of any liability, fault, or wrongdoing of any 

kind. 

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

further notice to the Members of the Class and retains jurisdiction to consider all further applications 

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

with such modifications as may be agreed to by the Settling Parties, if appropriate, without further 

notice to the Class. 

IT IS SO ORDERED. 

DATED: _________________________ 

THE HONORABLE RONALD M. WHYTE 

UNITED STATES DISTRICT JUDGE 

S:\Settlement\ESS Tech.set\V3 EA-00037636.doc 

5/4/07

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CERTIFICATE OF SERVICE

I hereby certify that on April 30, 2007, 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/. 

I certify under penalty of perjury under the laws of the United States of America that the 

foregoing is true and correct. Executed on April 30, 2007. 

 s/ Joy Ann Bull 

 JOY ANN BULL 

LERACH COUGHLIN STOIA GELLER 

 RUDMAN & ROBBINS LLP 

655 West Broadway, Suite 1900 

San Diego, CA 92101-3301 

Telephone: 619/231-1058 

619/231-7423 (fax) 

E-mail:Joyb@lerachlaw.com

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