Hu v. Cadence Design Systems, Inc et al

Filing 154

ORDER Denying Stipulation to Shorten Time. Signed by Judge Samuel Conti on 6/20/11. (tdm, COURT STAFF) (Filed on 6/20/2011)

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GIBSON, DUNN & CRUTCHER LLP
TIMOTHY K. ROAKE, SBN 99539
[e-mail]
SALLY J. BERENS, SBN 218880
[e-mail]
1881 Page Mill Road
Palo Alto, California 94304
Telephone: [phone]
Facsimile: [phone]
ETHAN D. DETTMER, SBN 196046
[e-mail]
MATTHEW S. KAHN, SBN 261679
[e-mail]
555 Mission Street, Suite 3000
San Francisco, California 94105
Telephone: [phone]
Facsimile: [phone]
Attorneys for CADENCE DESIGN SYSTEMS,
INC., MICHAEL J. FISTER, KEVIN S.
PALATNIK, WILLIAM PORTER and KEVIN
BUSHBY

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UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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In re CADENCE DESIGN SYSTEMS, INC.
SECURITIES AND DERIVATIVE
LITIGATION
________________________________________

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CASE NO. C-08-4966 SC
CLASS ACTION
STIPULATION AND [PROPOSED] ORDER
SHORTENING TIME [CIV. L.R. 6-2 & 7-12]

This Document Relates To:
ALL CASES

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Gibson, Dunn &
Crutcher LLP

STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

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STIPULATION AND [PROPOSED] SCHEDULING ORDER SHORTENING TIME

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WHEREAS, the first complaint in these related actions was filed on October 29, 2008;

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WHEREAS, on March 4, 2009, the Court entered an Order consolidating three related

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securities litigation cases, appointing Alaska Electrical Pension Fund as the lead plaintiff, and

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approving the selection of Lead Counsel (the “Securities Action”);

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WHEREAS, on April 24, 2009, Lead Plaintiff in the Securities Action filed a consolidated

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complaint against defendants Cadence Design Systems, Inc. (“Cadence”), and Michael J. Fister,

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Kevin S. Palatnik, William Porter, and Kevin Bushby (together with Cadence, the “Securities Action

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Defendants”);

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WHEREAS, on September 11, 2009, the Court entered an order dismissing the consolidated

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complaint in the Securities Action without prejudice; on October 13, 2009, Lead Plaintiff in the

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Securities Action filed an amended consolidated complaint (the “First Amended Complaint”); and on

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March 2, 2010, the Court entered an order denying Defendants’ motion to dismiss the First Amended

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Complaint in the Securities Action;

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WHEREAS, in 2010, shareholder derivative actions captioned Hamilton v. Fister, et. al., Case

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No. CV-10-01849-SC (filed April 28, 2010), Samani v. Fister, et al., Case No. CV-10-3607-SC and

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Powers v. Fister, et al., Case No. CV-10-3627-SC (both filed August 16, 2010) (together, the

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“Derivative Actions”), were filed on behalf of Cadence against Michael J. Fister, Kevin S. Palatnik,

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William Porter, Kevin Bushby, James J. Cowie, R.L. Smith McKeithen, James S. Miller, John B.

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Shoven, Lip-Bu Tan, Alberto Sangiovanni-Vincentelli, Donald L. Lucas, Roger S. Siboni, George M.

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Scalise, and John A.C. Swainson (collectively, the “Derivative Action Individual Defendants”),

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asserting factual allegations related to those in the Securities Action;

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WHEREAS, on July 7, 2010, the Court entered an order staying the Securities Action in its

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entirety to facility the parties’ efforts to reach a negotiated resolution, and on August 25, 2010, the

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parties participated in a mediation with the Honorable Edward A. Infante (Ret.), but did not reach a

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negotiated resolution of this case;

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WHEREAS, since that time, the parties continued their settlement discussions;

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WHEREAS, on September 24, 2010, the Court entered an Order relating the Derivative

Gibson, Dunn &
Crutcher LLP

STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

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Actions to the Securities Action, staying the Derivative Actions pending the parties’ ongoing

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settlement discussions, and scheduling a case management conference on January 7, 2011;

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WHEREAS, on January 7, 2011, the Court entered an Order continuing the case management

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conference until July 8, 2011 and extending the litigation stay in order to facilitate the parties’

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ongoing settlement efforts;

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WHEREAS, on February 8, 2011, the parties participated in a further mediation session with

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Judge Infante (Ret.), which resulted in an agreement in principle for a negotiated resolution of the

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Securities Action and the Derivative Actions;

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WHEREAS, on June 7, 2011, the parties to the Securities Action executed a Stipulation of
Settlement (“Securities Stipulation”);
WHEREAS, on June 7, 2011, the parties to the Derivative Actions executed a Stipulation of
Settlement (“Derivative Stipulation”);
WHEREAS, concurrently herewith, Plaintiffs in the Securities Action have filed a motion

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with the Court requesting an order: preliminarily approving the Securities Stipulation and settlement;

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certifying a Class (for settlement purposes only); scheduling a hearing to determine whether the

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settlement of the Securities Action is fair, reasonable, and adequate to the Class; and approving the

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proposed Notice of Pendency and Proposed Settlement of Class Action (the “Securities Motion”);

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WHEREAS, concurrently herewith, Plaintiffs in the Derivative Actions have filed a motion

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with the Court requesting an order: preliminarily approving the Derivative Stipulation and settlement;

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scheduling a hearing to determine whether the proposed settlement of the Derivative Actions is fair,

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reasonable, and adequate to Cadence and Current Cadence Stockholders (as defined in the Derivative

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Stipulation); and approving the proposed Notice of Settlement and Summary Notice of Settlement

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(the “Derivative Motion,” and, collectively with the Securities Motion, the “Motions”);

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WHEREAS, Civil Local Rule 7-2(a) requires that a motion be noticed for a date not less than
35 days after service of the motion;
WHEREAS, the Securities Action Defendants do not oppose the Securities Motion, Cadence

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and the Derivative Action Individual Defendants do not oppose the Derivative Motion, and the

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parties do not anticipate any other opposition to the Motions;

Gibson, Dunn &
Crutcher LLP

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STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

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WHEREAS, the parties, through counsel, believe that it is in the best interests of the parties

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and the Court, and in the interests of justice, to expedite the Court’s consideration of the Motions and

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preliminary approval of the settlements of the Securities Action and the Derivative Action;

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WHEREAS, the parties, through counsel, believe that the Motions are appropriate for
resolution without hearing, unless the Court believes that a hearing would be beneficial;
WHEREAS, in accordance with Local Rule 6-2(a)(2), the time modifications made to date in
this action are as follows:
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defendants’ time to respond to the complaint in the Securities Action (Docket No. 7);

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On February 2, 2009, pursuant to stipulation, the Court entered an Order vacating a case
management conference scheduled for February 6, 2009 (Docket No. 34);

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On November 25, 2008, pursuant to stipulation, the Court entered an Order enlarging

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On March 10, 2009, pursuant to stipulation, the Court entered an Order setting a schedule

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for the filing of a consolidated complaint in the Securities Action, defendants’ responsive

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pleadings, and any responses thereto (Docket No. 38);

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On October 20, 2009, pursuant to stipulation, the Court entered an Order setting a

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schedule for defendants’ responsive pleadings to the First Amended Complaint (and any

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responses thereto) (Docket No. 56);

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defendants’ time to answer the First Amended Complaint (Docket No. 75);

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On March 16, 2010, pursuant to stipulation, the Court entered an Order enlarging

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On June 21, 2010, pursuant to stipulation, the Court entered an Order continuing the

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hearing on defendants’ Motion for Partial Summary Judgment in the Securities Action

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until July 9, 2010 (Docket No. 125);

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Action (Docket No. 131);

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On July 7, 2010, pursuant to stipulation, the Court entered an Order staying the Securities

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On September 24, 2010, the Court entered an Order staying the Derivative Actions and
scheduling a case management conference for January 7, 2011 (Docket No. 136);

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Gibson, Dunn &
Crutcher LLP

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STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

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On January 7, 2011, pursuant to stipulation, the Court entered an Order continuing the

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January 7, 2011 case management conference until July 8, 2011 and extending the

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litigation stay (Docket No. 145); and

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WHEREAS, the parties believe the requested time modification will have no other effect on
the current schedule of the litigation.
THEREFORE, IT IS HEREBY STIPULATED AND AGREED, pursuant to Civil L.R. 6-

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1(b), by and between the parties, through their respective attorneys of record, based on the foregoing,

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and subject to the approval of the Court, that:

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1. The Motions be heard on shortened time and without hearing (unless the Court believes a

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hearing will be beneficial, in which case the parties would be happy to appear); and

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2. The Parties respectfully request that the Court enter the proposed preliminary approval

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orders submitted with such Motions at the earliest possible date.
DATED: June 15, 2011

GIBSON, DUNN & CRUTCHER LLP

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By:

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Attorneys for Cadence Design Systems, Inc. (in the
Securities and Derivative Actions), and Michael J.
Fister, Kevin S. Palatnik, William Porter and Kevin
Bushby (in the Securities Actions)

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/s/ Ethan D. Dettmer
Ethan D. Dettmer

DATED: June 15, 2011

ROBBINS GELLER RUDMAN & DOWD LLP

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By:

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/s/ Jeffrey D. Light
Jeffrey D. Light

Attorneys for Alaska Electrical Pension Fund

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DATED: June 15, 2011

SKADDEN ARPS SLATE MEAGHER & FLOM LLP
By:

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Gibson, Dunn &
Crutcher LLP

/s/ Garrett J. Waltzer
Garrett J. Waltzer

Attorneys for Lip-Bu Tan, Alberto SangiovanniVincentelli, Michael J. Fister, John B. Shoven,
Donald L. Lucas, George M. Scalise, Roger S. Siboni,
and John A. Swainson
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STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

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DATED: June 15, 2011

HOGAN LOVELLS US LLP

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/s/ Douglas M. Schwab
Douglas M. Schwab

By:

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Attorneys for William Porter, Kevin S. Palatnik, R.L.
Smith McKeithen, James S. Miller and James J. Cowie

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DATED: June 15, 2011

DLA PIPER US LLP

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/s/ Shirli Fabbri Weiss
Shirli Fabbri Weiss

By:

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Attorneys for Kevin S. Bushby
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DATED: June 15, 2011

THE WEISER LAW FIRM, P.C.

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/s/ Kathleen A. Herkenhoff
Kathleen A. Herkenhoff

By:
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Attorneys for Walter Hamilton

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DATED: June 15, 2011

KESSLER TOPAZ MELTZER & CHECK LLP

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/s/ Eric Zagar
Eric Zagar

By:

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Attorneys for Arash DISTR& George Powers
Samani
PURSUANT TO STIPULATION, IT IS SO ORDERED.

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FO

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____________________________________________
The Honorable Samuel Conti
United SamuelDistrict Judge
States Conti
udge
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D

DENIE

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6/20/11

DATED: __________________
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Gibson, Dunn &
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STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

ATTESTATION PURSUANT TO GENERAL ORDER NO. 45

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Pursuant to General Order No. 45 of the Northern District of California, I attest that

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concurrence in the filing of this document has been obtained from the other signatory to this

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document.

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/s/ Ethan D. Dettmer
Ethan D. Dettmer

By:

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Gibson, Dunn &
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STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC

CERTIFICATE OF SERVICE

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I, the undersigned, declare that I am employed in the County of Santa Clara, State of

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California; I am over the age of eighteen years and am not a party to this action; my business address

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is 1881 Page Mill Road, Palo Alto, California, 94304, in said County and State. On the date

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indicated below, I served the within:

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STIPULATION AND [PROPOSED] ORDER SHORTENING TIME [CIV. L.R. 6-2 & 7-12]
To all interested parties as follows:

BY ECF (ELECTRONIC CASE FILING): I e-filed the above-detailed documents
utilizing the United States District Court, Northern District of California’s mandated ECF
(Electronic Case Filing) service on December 30, 2010. Counsel of record are required by the
Court to be registered e-filers, and as such are automatically e-served with a copy of the
documents upon confirmation of e-filing.

I certify under penalty of perjury that the foregoing is true and correct, that the foregoing
document(s) were printed on recycled paper, and that this Certificate of Service was executed by me
on June 15, 2011, at Palo Alto, California.

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/s/ Melinda A. McCrory
Melinda A. McCrory

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100958250_2.DOC

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Gibson, Dunn &
Crutcher LLP

STIPULATION AND [PROPOSED] ORDER SHORTENING TIME

CASE NO. C-08-4966 SC