Silverman v. Schulman et al

Filing 16

STIPULATION AND ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION. Signed by Judge Richard Seeborg on 2/8/17. (cl, COURT STAFF) (Filed on 2/8/2017)

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1 2 3 4 5 6 JAMES N. KRAMER (SBN 154709) jkramer@orrick.com ALEXANDER K. TALARIDES (SBN 268068) atalarides@orrick.com SUZETTE J. PRINGLE (SBN 273116) springle@orrick.com ORRICK, HERRINGTON & SUTCLIFFE LLP The Orrick Building 405 Howard Street San Francisco, CA 94105-2669 Telephone: (415) 773-5700 Facsimile: (415) 773-5759 7 8 9 10 Attorneys for Nominal Defendant PayPal Holdings, Inc. and Individual Defendants Daniel H. Schulman, John D. Rainey, Patrick L.A. Dupuis, Wences Casares, Jonathan Christodoro, John J. Donahoe, David W. Dorman, Gail J. McGovern, David M. Moffett, Pierre M. Omidyar and Frank D. Yeary 11 [additional counsel appear on following page] 12 13 UNITED STATES DISTRICT COURT 14 NORTHERN DISTRICT OF CALIFORNIA 15 16 STEPHEN SILVERMAN, derivatively on behalf of PAYPAL HOLDINGS, INC., 17 18 19 20 21 22 23 Plaintiff, v. 26 STIPULATION AND [PROPOSED] ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION DANIEL H. SCHULMAN, JOHN D. RAINEY, PATRICK L.A. DUPUIS, WENCES CASARES, JONATHAN CHRISTODORO, JOHN J. DONAHOE, DAVID W. DORMAN, GAIL J. MCGOVERN, DAVID M. MOFFETT, PIERRE M. OMIDYAR, and FRANK D. YEARY, Defendants, 24 25 Case No. 5:17-cv-00162-RS and PAYPAL HOLDINGS, INC., Nominal Defendant. 27 28 STIPULATION AND ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION OHSUSA:766402781.1 1 2 3 4 5 6 7 8 9 10 11 Evan J. Smith BRODSKY & SMITH, LLC 9595 Wilshire Blvd. Beverly Hills, CA 90212 Telephone: (877) 534-2590 Jeffrey J. Ciarlanto Joseph M. Profy David M. Promisloff PROFY, PROMISLOFF & CIARLANTO, P.C. 100 N. 22nd Street, Unit 105 Philadelphia, PA 19103 Telephone: (215) 529-5156 Alfred G. Yates, Jr. Gerald L. Rutledge LAW OFFICE OF ALFRED G. YATES, JR., P.C. 519 Allegheny Building 429 Forbes Avenue Pittsburg, PA 15219 Telephone: (412) 391-5164 12 Attorneys for Plaintiff Stephen Silverman 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1OHSUSA:766402781.1 STIPULATION AND ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION 1 WHEREAS, on January 12, 2017, Plaintiff Stephen Silverman filed this putative 2 shareholder derivative action lawsuit (“Action”) purportedly on behalf of PayPal Holdings, Inc. 3 (“PayPal”) asserting claims for breach of fiduciary duty, unjust enrichment and violations of 4 Section 14(a) of the Securities Exchange Act of 1934 against Daniel H. Schulman, John D. 5 Rainey, Patrick L.A. Dupuis, Wences Casares, Jonathan Christodoro, John J. Donahoe, David W. 6 Dorman, Gail J. McGovern, David M. Moffett, Pierre M. Omidyar and Frank D. Yeary (the 7 “Individual Defendants”); 8 9 WHEREAS, on December 28, 2016, a related putative securities class action lawsuit captioned Cho v. PayPal Holdings, Inc., et al., Case No. 3:16-cv-07371-RS (N.D. Cal.) (“Related 10 Securities Class Action”) was filed in this Court against PayPal and certain of the Individual 11 Defendants, alleging violations of the federal securities laws based on substantially the same facts 12 and circumstances at issue in this Action; 13 14 15 16 17 WHEREAS, on February 8, 2017, the Court entered an order formally relating this Action with the Related Securities Class Action; WHEREAS, the outcome of the anticipated motions to dismiss the Related Securities Class Action will be informative to the litigation of this Action; WHEREAS, the defendants in the Related Securities Class Action intend to file motions 18 to dismiss directed at the pleadings pursuant to Fed. R. Civ. P. 12(b)(6) and the Private Securities 19 Litigation Reform Act of 1995; 20 WHEREAS, the parties agree that a stay of this Action pending resolution of the 21 anticipated motions to dismiss directed at the pleadings in the Related Securities Class Action is 22 appropriate in that it will avoid inefficiencies and duplicative efforts, will better preserve the 23 resources of the Court and the parties, and will more closely align the proceedings in this Action 24 with the proceedings in the Related Securities Class Action; 25 26 27 28 IT IS HEREBY STIPULATED AND AGREED, by and among the parties listed below, by their undersigned counsel, subject to approval of the Court, as follows: 1. The parties agree that a temporary stay of this Action pending resolution of the anticipated motions to dismiss directed at the pleadings in the Related Securities Class Action is -2OHSUSA:766402781.1 STIPULATION AND ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION 1 appropriate in that it will avoid inefficiencies and duplicative efforts, will better preserve the 2 resources of the Court and the parties, and will more closely align the proceedings in this Action 3 with the proceedings in the Related Securities Class Action. 4 2. The proceedings in this Action shall be temporarily stayed pending the ruling on 5 the anticipated motions to dismiss directed at the pleadings filed in the Related Securities Class 6 Action; the stay shall remain in effect until thirty (30) days following the filing of an order 7 resolving those motions to dismiss. 8 9 3. Plaintiff will have thirty (30) days from the filing of an order ruling on the motions to dismiss filed in the Related Securities Class Action to file an amended complaint in this 10 Action. PayPal and/or the Individual Defendants will answer, move against, or otherwise respond 11 to the amended complaint within thirty (30) days after Plaintiff files the amended complaint. 12 4. In the event that PayPal and/or the Individual Defendants file and serve any 13 motions directed at the amended complaint, Plaintiff shall file and serve his opposition within 14 thirty (30) days after service of PayPal’s and/or the Individual Defendants’ motion(s). If PayPal 15 and/or the Individual Defendants file and serve replies to Plaintiff’s opposition, they will do so 16 within fifteen (15) days after service of Plaintiff’s opposition. Counsel agree to confer to select a 17 hearing date. 18 5. Any party may cause the stay to be lifted upon 30 days’ written notice, after which 19 point the briefing schedule set forth in paragraphs 3 and 4 will be in effect starting on the date the 20 Court enters an order lifting the stay 21 6. In the event that a mediation is held in an effort to settle the Related Securities 22 Class Action during the pendency of the stay, counsel for PayPal and/or the Individual 23 Defendants shall provide Plaintiff’s counsel with reasonable notice of said mediation. 24 7. Counsel for PayPal and/or the Individual Defendants will notify Plaintiff’s counsel 25 if any other shareholder derivative proceedings are initiated on behalf of PayPal based on the 26 same set of facts alleged in this Action. 27 28 -3OHSUSA:766402781.1 STIPULATION AND ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION 1 Dated: February 8, 2017 2 JAMES N. KRAMER ALEXANDER K. TALARIDES SUZETTE J. PRINGLE Orrick, Herrington & Sutcliffe LLP 3 /s/ Alexander K. Talarides ALEXANDER K. TALARIDES 4 5 Attorneys for Nominal Defendant PayPal Holdings, Inc., and Individual Defendants Daniel H. Schulman, John D. Rainey, Patrick L.A. Dupuis, Wences Casares, Jonathan Christodoro, John J. Donahoe, David W. Dorman, Gail J. McGovern, David M. Moffett, Pierre M. Omidyar and Frank D. Yeary 6 7 8 9 10 11 12 13 I, Alexander K. Talarides, am the ECF user whose ID and password are being used to file this Stipulation and [Proposed] Order Regarding Stay of Case Pending Resolution of Motions to Dismiss Related Securities Class Action. In compliance with General Order 45, X.B., I hereby attest that Evan J. Smith has concurred in this filing. Dated: February 8, 2017 EVAN J. SMITH BRODSKY & SMITH, LLC 14 15 /s/ Evan J. Smith EVAN J. SMITH 16 Attorneys for Plaintiff Stephen Silverman 17 18 19 *** 20 ORDER 21 Based on the stipulation of the signed parties, and good cause appearing, IT IS HEREBY 22 ORDERED that the Stipulation is approved. 23 It is so ORDERED. 24 25 26 DATED: _______________________ 2/8/17 27 THE HONORABLE RICHARD SEEBORG UNITED STATES DISTRICT JUDGE 28 -4OHSUSA:766402781.1 STIPULATION AND ORDER REGARDING STAY OF CASE PENDING RESOLUTION OF MOTIONS TO DISMISS RELATED SECURITIES CLASS ACTION

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