Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_20-cv-01815/USCOURTS-cand-3_20-cv-01815-0/pdf.json

Parties Involved:
Adamas Pharmaceuticals, Inc.
Defendant
Michael F. Bigham
Defendant
Martha J. Demski
Defendant
Mardi C. Dier
Defendant
William W. Ericson
Defendant
Richard A. King
Defendant
Ivan Lieberburg
Defendant
John MacPhee
Defendant
David L. Mahoney
Defendant
Alfred G. Merriweather
Defendant
Patrick Van Camp
Plaintiff
Gregory T. Went
Defendant

Document Text:

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JOINT STIPULATION AND ORDER TO

CONSOLIDATE AND STAY DERIVATIVE ACTION

4:20-CV-01815-KAW

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COOLEY LLP 

PATRICK E. GIBBS (183174) 

(pgibbs@cooley.com) 

SHANNON M. EAGAN (212830)

(seagan@cooley.com)

TIJANA M. BRIEN (286590) 

(tbrien@cooley.com) 

3175 Hanover Street 

Palo Alto, CA 94304

Telephone: (650) 843-5000 

Facsimile: (650) 849-7400 

Attorneys for Defendants, 

ADAMAS PHARMACEUTICALS, INC., 

WILLIAM ERICSON, MARTHA J. DEMSKI, 

IVAN LIEBERBURG, GREGORY T. WENT, 

MICHAEL F. BIGHAM, DAVID L. MAHONEY, 

JOHN MACPHEE, ALFRED G. 

MERRIWEATHER, RICHARD A. KING, and 

MARDI C. DIER 

THE ROSEN LAW FIRM, P.A. 

Laurence M. Rosen, Esq. (SBN 219683) 

355 South Grand Avenue, Ste. 2450 

Los Angeles, CA 90071 

Telephone: (213) 785-2610 

Facsimile: (213) 226-4684 

Email: lrosen@rosenlegal.com 

Attorneys for Plaintiffs 

PATRICK VAN CAMP and JAMES 

DRUZBIK 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

PATRICK VAN CAMP, derivatively on 

behalf of ADAMAS PHARMACEUTICALS, 

INC., 

Plaintiff, 

v.

GREGORY T. WENT, ALFRED G. 

MERRIWEATHER, RICHARD A. KING, 

MICHAEL F. BIGHAM, MARTHA J. 

DEMSKI, MARDI C. DIER, WILLIAM W. 

ERICSON, IVAN LIEBERBURG, DAVID 

L. MAHONEY, and JOHN MACPHEE,

Defendants. 

-andADAMAS PHARMACEUTICALS, INC.,

Nominal Defendant. 

Case No.: 4:20-cv-01815-RS

JOINT STIPULATION AND ORDER TO 

CONSOLIDATE RELATED DERIVATIVE 

ACTIONS AND APPOINT CO-LEAD 

PLAINTIFFS AND COUNSEL, AND STAY 

DERIVATIVE ACTION

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 1 of 9
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JAMES DRUZBIK, derivatively on behalf of 

ADAMAS PHARMACEUTICALS, INC., 

Plaintiff, 

v.

GREGORY T. WENT, ALFRED G. 

MERRIWEATHER, RICHARD A. KING, 

MICHAEL F. BIGHAM, MARTHA J. 

DEMSKI, MARDI C. DIER, WILLIAM W. 

ERICSON, IVAN LIEBERBURG, DAVID 

L. MAHONEY, and JOHN MACPHEE,

Defendants. 

-andADAMAS PHARMACEUTICALS, INC.,

Nominal Defendant. 

Case No.: 4:20-cv-02320-RS

Plaintiffs Patrick Van Camp and James Druzbik (“Plaintiffs”), derivatively and on behalf of 

nominal defendant Adamas Pharmaceuticals, Inc. (“Adamas”), and defendants Gregory T. Went,

Alfred G. Merriweather, Richard A. King, Michael F. Bigham, Martha J. Demski, Mardi C. Dier, 

William M. Ericson, Ivan Lieberburg, David L. Mahoney, and John MacPhee (collectively, the 

“Individual Defendants” and together with Adamas, “Defendants”) (collectively, the “Parties”) jointly 

submit this Stipulation to Consolidate Related Derivative Actions, Appoint Co-lead Plaintiffs and 

Counsel, and Stay the Derivative Action (“Stipulation”), and in support thereof state as follows: 

WHEREAS, on March 16, 2020, Plaintiff Van Camp filed the above-captioned action, 

purportedly in the right, and for the benefit, of Adamas against the Individual Defendants seeking to 

remedy the Individual Defendants’ alleged violation of Section 14(a) of the Securities Exchange Act 

of 1934 (the “Exchange Act”), breach of fiduciary duties, unjust enrichment and gross mismanagement 

that occurred and have caused substantial harm to Adamas (the “Van Camp Action”). 

WHEREAS, on April 6, 2020, Plaintiff Druzbik filed his above-captioned action, which 

asserts the same allegations against the same defendants as in the Van Camp complaint (collectively, 

the “Derivative Actions”). 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 2 of 9
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WHEREAS, Cooley LLP represents the Defendants. The Brown Law Firm, P.C. represents 

Plaintiff Van Camp in the Van Camp Action. The Rosen Law Firm P.A. represents Plaintiff Druzbik 

in the Druzbik Action and is local counsel for Plaintiff Van Camp in the Van Camp Action; 

WHEREAS, under Fed. R. Civ. P. 42(a), when actions “involve a common question of law or 

fact,” the Court may “(1) join for hearing or trial any or all matters at issue in the actions; (2) 

consolidate the actions; or (3) issue any other orders to avoid unnecessary cost of delay”; 

WHEREAS, the Derivative Actions challenge the same alleged misconduct by the Individual 

Defendants and involve identical questions of law and fact; 

WHEREAS, to avoid potentially duplicative actions and to preserve both public and private 

resources, the parties have met and conferred and agree that the Derivative Actions should be related 

and consolidated for all purposes, including pre-trial proceedings and trial, into a single consolidated 

action (hereinafter referred to as the "Consolidated Derivative Action"); 

WHEREAS, counsel for the Plaintiffs have met and conferred and agree that The Rosen Law 

Firm P.A. and the Brown Law Firm, P.C., the firm resumes of which are attached hereto as Exhibits 

A and B, respectively, shall serve as co-lead counsel and Plaintiffs shall serve as co-lead plaintiffs in 

the Consolidated Derivative Action; 

WHEREAS, Defendants take no position as to the appointment of lead counsel or lead 

plaintiff in the Consolidated Derivative Action; 

WHEREAS, also pending in the United States District Court for the Northern District of 

California (the “Court”) is a putative securities class action captioned Ali Zaidi v. Adamas 

Pharmaceuticals, Inc., et al., Case No. 4:19-cv-08051 (the “Securities Class Action”), which was filed 

on December 10, 2019; 

WHEREAS, Adamas, Gregory T. Went, and Alfred G. Merriweather are named defendants 

in the Consolidated Derivative Action, and they are also named as defendants in the Securities Class 

Action (the “Federal Securities Class Action Defendants”); 

WHEREAS, the Securities Class Action alleges, inter alia, that the Federal Securities Class 

Action Defendants violated the Exchange Act; 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 3 of 9
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WHEREAS, there is substantial overlap between the facts and circumstances alleged in the 

Consolidated Derivative Action and the Securities Class Action, including the relevance of many of 

the same documents and witnesses; 

WHEREAS, on March 3, 2020, the Court in the Securities Class Action appointed lead 

plaintiff (the “Securities Class Action Lead Plaintiff”) and lead counsel (Dkt. No. 56); 

WHEREAS, the deadline for the Securities Class Action Lead Plaintiff to file an amended 

complaint is May 15, 2020 (Dkt. No. 59). 

WHEREAS, the Federal Securities Class Action Defendants intend to file a motion to dismiss 

any amended complaint pursuant to Fed. R. Civ. P. 12(b)(6), and the deadline to file such motion or 

otherwise respond to any amended complaint is July 14, 2020 (Dkt. No. 59); 

WHEREAS, the deadline for the Securities Class Action Lead Plaintiff to file an opposition 

brief to any motion to dismiss is August 28, 2020, and the deadline for the Federal Securities Class 

Action Defendants to file a reply to any opposition brief is September 28, 2020 (Dkt. No. 59); and 

WHEREAS, in order ensure economy of time and effort for the Court, for counsel, and for 

litigants, the Parties have agreed that, in light of the overlap between the Consolidated Derivative 

Action and the Securities Class Action, the Derivative Action should be voluntarily stayed on the 

terms set forth below unless and until either (1) the Securities Class Action is dismissed, with 

prejudice, by the Court, and all appeals related thereto have been exhausted; or (2) the motion to 

dismiss the Securities Class Action is denied in part or in full. 

NOW THEREFORE, it is hereby stipulated by and between the parties hereto, through their 

undersigned counsel of record, as follows: 

1. The following Derivative Actions shall be consolidated for all purposes, including pretrial proceedings and trial, into the one action, the Consolidated Derivative Action: 

x Van Camp v. Went, et al., Case No. 4:20-cv-01815-KAW, filed on March 16, 2020 

x Druzbik v. Went, et al., Case No. 4:20-cv-02320-KAW, filed on April 6, 2020 

2. Every pleading filed in the Consolidated Derivative Action shall bear the following

caption: 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 4 of 9
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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

In re ADAMAS PHARMACEUTICALS, INC. 

SHAREHOLDER DERIVATIVE 

LITIGATION 

This Document Relates To: 

ALL ACTIONS 

) 

) 

) 

) 

) 

) 

) 

) 

)

Lead Case No. 4:20-cv-01815-RS

(Consolidated with Case No. 4:20-cv-02320-

RS) 

3. This Order shall apply to any purported stockholder derivative action on behalf of

nominal defendant Adamas, arising out of the same or substantially the same transactions or events as 

the Consolidated Derivative Action that is subsequently filed in, removed to, or transferred to this 

Court. 

4. If a case that properly belongs as part of In re Adamas Pharmaceuticals, Inc.

Shareholder Derivative Litigation, Lead Case No. 4:20-cv-01815-KAW, is hereafter filed in this 

Court, removed to this Court, or transferred here from another court, the Parties shall promptly call to 

the attention of the Clerk of the Court the filing, removal, or transfer of any case, that might properly 

be consolidated as part of In re Adamas Pharmaceuticals, Inc. Shareholder Derivative Litigation, Lead 

Case No. 4:20-cv-01815-KAW. 

5. The Rosen Law Firm, P.A. and the Brown Law Firm, P.C. shall serve as Co-Lead

Counsel for Plaintiffs in the Consolidated Derivative Action. Co-Lead Counsel shall have authority 

to speak for Plaintiffs in matters regarding pre-trial and trial procedure and settlement negotiations 

and shall make all work assignments in such manner as to facilitate the orderly and efficient 

prosecution of the Consolidated Derivative Action and to avoid duplicative or unproductive efforts. 

Patrick Van Camp and James Druzbik shall serve as Co-Lead Plaintiffs in the Consolidated Derivative 

Action. 

6. Defendants’ counsel may rely upon all agreements made with Co-Lead Counsel, and

such agreements shall be binding on Co-Lead Plaintiffs and all other plaintiffs, if any, in the 

Consolidated Derivative Action. 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 5 of 9
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7. Defendants Adamas, Gregory T. Went, Alfred G. Merriweather, Richard A. King,

Michael F. Bigham, Martha J. Demski, Mardi C. Dier, William M. Ericson, Ivan Lieberburg, David 

L. Mahoney, and John MacPhee hereby acknowledge and accept service of the complaints filed in the

Derivative Actions. Defendants need not respond to said complaints until such time as agreed between

Co-Lead Plaintiffs and Defendants or as otherwise ordered by the Court.

8. This Consolidated Derivative Action shall be stayed, and no Case Management Order

issued, upon the Court’s so-ordering this Stipulation as an Order of the Court. 

9. Defendants agree that if a related derivative lawsuit is filed in this Court or another

court, Defendants will promptly inform Co-Lead Plaintiffs. 

10. The Parties agree that if the plaintiff in any related derivative lawsuit refuses to agree

to a stay for the same or longer duration and/or if Defendants do not seek to stay such lawsuit, 

Defendants will promptly inform Co-Lead Plaintiffs of the same, and Co-Lead Plaintiffs may lift the 

agreed stay upon fifteen (15) days’ notice in writing to the undersigned counsel for Defendants via 

email. 

11. The Parties agree that Defendants shall inform Co-Lead Plaintiffs promptly upon the

scheduling of any mediation with the plaintiffs in the Securities Class Action, and shall make a good 

faith effort to include Co-Lead Plaintiffs in any mediation with any such plaintiffs. In the event that 

Defendants’ good faith efforts do not result in including Co-Lead Plaintiffs in the mediation with 

plaintiffs in the Securities Class Action, then Defendants agree to mediate with Co-Lead Plaintiffs in 

the Derivative Action at or about the same time. The Parties further agree that Defendants shall inform 

Co-Lead Plaintiffs promptly upon the scheduling of any mediation with any other derivative plaintiffs 

who have asserted claims substantially similar to the claims asserted by Plaintiff herein, and shall 

include Plaintiff in any such mediation. 

12. The Parties agree that notwithstanding the stay of this Consolidated Derivative Action,

the Parties reserve all of their rights. 

13. The Parties agree that notwithstanding the stay of this Consolidated Derivative Action,

Plaintiff may file an amended complaint. Defendants shall be under no obligation to respond to the 

complaints thus filed in the Consolidated Derivative Action or any subsequent complaint filed in the 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 6 of 9
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Derivative Action during the pendency of the stay and Defendants expressly do not waive any 

arguments they may have that any demands in any such amended complaint would not be futile by 

looking at the composition of the Adamas board of directors at the time of the filing date of the 

amended complaint. Likewise, Co-Lead Plaintiffs do not waive any arguments they may have that 

any demands in any such amended complaint would be futile by looking at the composition of the 

Adamas board of directors at the time of the filing date of the original complaint. 

14. In the event that Defendants agree to produce, or any of them are ordered to produce,

any documents in the Securities Class Action, in any related derivative action, or to any purported 

shareholder of Adamas in response to a related books and records request, copies of such documents 

shall be provided to counsel for Plaintiffs within fifteen (15) days, subject to the execution by CoLead Plaintiffs of a confidentiality agreement governing the use and disclosure of these materials, 

provided that the documents may be used in the Consolidated Derivative Action. 

15. Upon occurrence of any of (1) the dismissal of the Securities Class Action, with

prejudice, by the Court, and exhaustion of all appeals related thereto; or (2) the denial of any motion 

to dismiss, in part or in full, the Securities Class Action filed by the Federal Securities Class Action 

Defendants; or (3) if Co-Lead Plaintiffs lift the stay pursuant to paragraph 10 hereof, the Parties shall 

notify the Court within fifteen (15) court days after the occurrence of any of the events above. 

16. The case management conference scheduled for June 16, 2020 (“CMC”) and all

deadlines related to the CMC are hereby vacated. 

IT IS SO STIPULATED. 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 7 of 9
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Dated: May 7, 2020 

THE ROSEN LAW FIRM, P.A. 

By: /s/ Laurence M. Rosen 

Laurence M. Rosen, Esq. (219683) 

355 S. Grand Avenue, Suite 2450 

Los Angeles, CA 90071 

Telephone: (213) 785-2610

Facsimile: (213) 226-4684 

Email: lrosen@rosenlegal.com 

Attorneys for Plaintiffs 

PATRICK VAN CAMP and JAMES 

DRUZBIK

THE BROWN LAW FIRM, P.C. 

By: /s/ Timothy Brown 

Timothy Brown 

240 Townsend Square 

Oyster Bay, NY 11771 

Telephone: (516) 922-5427

Facsimile: (516) 344-6204 

Email: tbrown@thebrownlawfirm.net 

Attorneys for Plaintiff 

PATRICK VAN CAMP 

COOLEY LLP 

By: /s/ Tijana M. Brien 

Tijana M. Brien (286590) 

Attorneys for Defendants,

ADAMAS PHARMACEUTICALS, INC., WILLIAM 

ERICSON, MARTHA J. DEMSKI, IVAN 

LIEBERBURG, GREGORY T. WENT, MICHAEL F. 

BIGHAM, DAVID L. MAHONEY, JOHN 

MACPHEE, ALFRED G. MERRIWEATHER, 

RICHARD A. KING, and MARDI C. DIER 

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 8 of 9
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FILER’S ATTESTATION 

Pursuant to Civil Local Rule 5-1(i)(3), regarding signatures, Tijana M. Brien hereby attests 

that concurrence in the filing of this document has been obtained from all the signatories above. 

Dated: May 7, 2020 

/s/ Tijana M. Brien 

***

PURSUANT TO STIPULATION, IT IS SO ORDERED: 

Dated: 5/18/2020

Richard Seeborg

United States District Judge

Case 3:20-cv-01815-RS Document 18 Filed 05/18/20 Page 9 of 9