Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-06384/USCOURTS-cand-3_06-cv-06384-3/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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COOLEY GODWARD 

KRONISH LLP 

ATTORNEYS AT LAW

PALO ALTO

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624730 v1/HN STIPULATION RE AMENDED ANSWER OF KERN

CASE NO. 3-06-CV-06384 (CRB) 

COOLEY GODWARD KRONISH LLP 

WILLIAM S. FREEMAN (82002) (wfreeman@cooley.com) 

NEAL J. STEPHENS (152071) (nstephens@cooley.com) 

ANGELA L. DUNNING (212047) (adunning@cooley.com) 

Five Palo Alto Square 

3000 El Camino Real 

Palo Alto, CA 94306-2155 

Telephone: (650) 843-5000 

Facsimile: (650) 857-0663 

Attorneys for Defendant 

L. John Kern 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SECURITIES AND EXCHANGE 

COMMISSION, 

Plaintiff, 

v. 

ROMULUS S. PEREIRA, ROBERT B. 

STANTON, L. JOHN KERN, ANDREW D. 

FELDMAN, WILLIAM F. McFARLAND, 

LORI H. CORNMESSER, 

Defendants. 

Case No. 3-06-CV-06384 (CRB) 

STIPULATION AND [PROPOSED] ORDER 

PERMITTING THE FILING OF THE FIRST 

AMENDED ANSWER OF L. JOHN KERN 

AND WITHDRAWING PLAINTIFF’S 

MOTION TO STRIKE AS TO DEFENDANT 

KERN

 Pursuant to Rule 15 of the Federal Rules of Civil Procedure and Civil Local Rules 7-7 and 

10.1, counsel for plaintiff Securities and Exchange Commission (the “SEC”) and counsel for 

defendant L. John Kern (“Kern”) jointly submit the following stipulation (“Stipulation”) 

permitting Kern to file the First Amended Answer of L. John Kern attached hereto as Exhibit A 

(“Amended Answer”) and withdrawing the SEC’s motion to strike certain affirmative defenses 

set forth in Kern’s original answer (“Answer”). 

 WHEREAS, Kern filed his Answer to the SEC’s Complaint on December 11, 2006; 

 WHEREAS, the parties thereafter commenced to meet and confer regarding the propriety 

of certain affirmative defenses set forth in the Answer; 

Case 3:06-cv-06384-CRB Document 29 Filed 01/18/07 Page 1 of 3
COOLEY GODWARD 

KRONISH LLP 

ATTORNEYS AT LAW

PALO ALTO

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624730 v1/HN 2. STIPULATION RE AMENDED ANSWER OF KERN

CASE NO. 3-06-CV-06384 (CRB) 

 WHEREAS, on December 20, 2006, the SEC filed its Motion To Strike Affirmative 

Defenses of Defendants Kern, McFarland, and Cornmesser (“Motion To Strike”); 

WHEREAS, the Motion To Strike is scheduled to be heard by the Court on February 16, 

2007, at 10:00 a.m.; 

 WHEREAS, in the interests of judicial economy and avoiding the burden and expense of 

further briefing on the Motion To Strike, and without admitting that any affirmative defense 

included in the Answer is improper or otherwise lacks merit in any way, Kern is prepared to 

amend his Answer by filing the Amended Answer attached hereto as Exhibit A; 

WHEREAS, the SEC stipulates and agrees that Kern should be permitted to file the 

Amended Answer, that the filing thereof will moot the Motion To Strike as to Kern, and that the 

Motion To Strike should therefore be withdrawn as to Kern upon the filing of the Amended 

Answer; 

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by and between the parties 

hereto through their respective attorneys of record, that: 

1. Kern shall file the Amended Answer on or before January 19, 2007; 

2. Upon the filing of the Amended Answer, the SEC’s Motion To Strike shall be 

deemed withdrawn as to Kern; and 

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Case 3:06-cv-06384-CRB Document 29 Filed 01/18/07 Page 2 of 3
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KRONISH LLP 

ATTORNEYS AT LAW

PALO ALTO

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624730 v1/HN 3. STIPULATION RE AMENDED ANSWER OF KERN

CASE NO. 3-06-CV-06384 (CRB) 

3. The Motion To Strike as it pertains to certain affirmative defenses set forth in the 

answers of defendants McFarland and Cornmesser is not affected by this Stipulation. 

Dated: January 11, 2007 SECURITIES AND EXCHANGE COMMISSION 

LESLIE J. HUGHES (CO Bar No. 15043) 

LEE C. ROBINSON (CO Bar No. 32734) 

 /s/ 

Leslie J. Hughes 

Attorneys for Plaintiff 

U.S. Securities and Exchange Commission 

Dated: January 11, 2007 COOLEY GODWARD KRONISH LLP 

WILLIAM S. FREEMAN (82002) 

NEAL J. STEPHENS (152071) 

ANGELA L. DUNNING (212047) 

 /s/ 

Neal J. Stephens 

Attorneys for Defendant 

L. John Kern 

IT IS SO ORDERED. 

Dated: ____________, 2007 __________________________________________ 

 HONORABLE CHARLES R. BREYER 

 United States District Judge 

January 12

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge Charles R. Breyer

Case 3:06-cv-06384-CRB Document 29 Filed 01/18/07 Page 3 of 3