Silverman v. Schulman et al

Filing 22

STIPULATION AND ORDER Consolidating Related Derivative Actions and Appointing Co-Lead Counsel for Plaintiffs (14 in 3:17-cv-02428-RS), (18 in 3:17-cv-00162-RS),(14 in 3:17-cv-02206-RS), (14 in 3:17-cv-02446-RS). Signed by Judge Richard Seeborg on 6/30/17. (cl, COURT STAFF) (Filed on 6/30/2017)

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ROBBINS ARROYO LLP 1 BRIAN J. ROBBINS (190264) FELIPE J. ARROYO (163803) 2 SHANE P. SANDERS (237146) SCOTT F. TEMPLETON (246872) 3 600 B Street, Suite 1900 San Diego, CA 92101 4 Telephone: (619) 525-3990 Facsimile: (619) 525-3991 5 E-mail: brobbins@ robbinsarroyo.com farroyo@ robbinsarroyo.com 6 ssanders@robbinsarroyo.com stempleton@robbinsarroyo.com 7 Attorneys for Plaintiffs Steve Sims and Edith Liss 8 UNITED STATES DISTRICT COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION 11 STEPHEN SILVERMAN, derivatively on ) Case No. 5:17-cv-00162-RS 12 behalf of PAYPAL HOLDINGS, INC., ) ) 13 ) STIPULATION AND [PROPOSED] Plaintiff, ) ORDER CONSOLIDATING RELATED 14 ) DERIVATIVE ACTIONS AND v. 15 ) APPOINTING CO-LEAD COUNSEL FOR DANIEL SCHULMAN, JOHN D. RAINEY, ) PLAINTIFFS 16 PATRICK L.A. DUPUIS, WENCES ) CASARES, JONATHAN CHRISTODORO, ) 17 JOHN J. DONAHOE, DAVID W. DORMAN, ) ) 18 GAIL J. MCGOVERN, DAVID M. MOFFETT, PIERRE M. OMIDYAR and ) 19 FRANK D. YEARY, ) ) 20 ) Defendants, ) 21 ) -and22 ) ) PAYPAL HOLDINGS, INC., 23 ) ) Date Action Filed: January 12, 2017 Nominal Defendant. 24 ) 25 [Caption continued on next page.] 26 27 28 STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS STEVE SEEMAN, derivatively on behalf of 1 PAYPAL HOLDINGS, INC., 2 3 4 5 6 7 8 9 10 11 12 13 ) ) ) Plaintiff, ) ) v. ) ) DANIEL 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, ) ) ) -and) ) PAYPAL HOLDINGS, INC., ) ) Nominal Defendant. ) Case No. 3:17-cv-02206-RS Date Action Filed: April 20, 2017 14 [Caption continued on next page.] 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -1STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 STEVE SIMS, Derivatively on Behalf of 2 PAYPAL HOLDINGS, INC. Plaintiff, 3 4 v. 5 DANIEL SCHULMAN, JOHN RAINEY, 6 JOHN DONAHOE, DAVID MOFFETT, PIERRE OMIDYAR, GAIL MCGOVERN, 7 FRANK YEARY, DAVID DORMAN, JONATHAN CHRISTODORO, WENCES 8 CASARES, and PATRICK DUPUIS, 9 10 Defendants, -and- 11 PAYPAL HOLDINGS, INC., a Delaware 12 corporation, 13 Nominal Defendant. 14 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. 3:17-cv-02428-LHK Date Action Filed: April 27, 2017 15 [Caption continued on following page.] 16 17 18 19 20 21 22 23 24 25 26 27 28 -2STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS EDITH LISS, Derivatively on Behalf of 1 PAYPAL HOLDINGS, INC. 2 Plaintiff, 3 v. 4 DANIEL SCHULMAN, JOHN RAINEY, JOHN DONAHOE, DAVID MOFFETT, 6 PIERRE OMIDYAR, GAIL MCGOVERN, FRANK YEARY, DAVID DORMAN, 7 JONATHAN CHRISTODORO, WENCES CASARES, and PATRICK DUPUIS, 8 Defendants, 9 5 10 -and- 11 PAYPAL HOLDINGS, INC., a Delaware corporation, 12 Nominal Defendant. 13 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. 5:17-cv-02446-EJD Date Action Filed: April 28, 2017 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -3STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 WHEREAS, there are presently four related stockholder derivative actions currently 2 pending in this District against the Individual Defendants,1 who are certain current and former 3 directors and officers of nominal defendant PayPal Holdings, Inc. ("PayPal") (PayPal, together 4 with the Individual Defendants, is collectively referred to herein as "Defendants"): Silverman v. 5 Schulman, et al., Case No. 5:17-cv-00162-RS; Seeman v. Schulman, et al., Case No. 3:17-cv6 02206-RS; Sims v. Schulman, et al., Case No. 3:17-cv-02428-LHK; and Liss v. Schulman, et al., 7 Case No. 5:17-cv-02446-EJD (together, the "Related Derivative Actions"); 8 WHEREAS, under Fed. R. Civ. P. 42(a), when actions involve "a common question of 9 law or fact," the Court may "(1) join for hearing or trial any or all matters at issue in the actions; 10 (2) consolidate the actions; or (3) issue any other orders to avoid unnecessary cost or delay"; WHEREAS, the Related Derivative Actions challenge similar alleged conduct by 11 12 PayPal's directors and executive officers and involve common questions of law and fact; WHEREAS, the parties therefore respectfully submit that consolidation of the Related 13 14 Derivative Actions is appropriate; WHEREAS, to avoid potentially duplicative actions and to prevent any waste of the 15 16 Court's resources, the parties agree that the Related Derivative Actions should be related and 17 consolidated for all purposes, including pre-trial proceedings and trial, into a single consolidated 18 action (hereinafter referred to as the "Consolidated Derivative Action"); 19 WHEREAS, the parties agree that Robbins Arroyo LLP and Profy Promisloff & 20 Ciarlanto, P.C. shall be designated as Co-Lead Counsel for plaintiffs in the Consolidated 21 Derivative Action; 22 WHEREAS, a factually-related class action alleging violations of the federal securities 23 laws against PayPal and certain PayPal officers was commenced in this District on December 28, 24 25 1 The "Individual Defendants" include Daniel H. Schulman, John D. Rainey, John J. Donahoe, David M. Moffett, Pierre M. Omidyar, Gail J. McGovern, Frank D. Yeary, David W. Dorman, 26 Jonathan Christodoro, Wences Casares, and Patrick L.A. Dupuis. 27 28 -4STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 2016: In re PayPal Holdings, Inc. Securities Litigation, Master File No. 3:16-cv-07371-RS (the 2 "Securities Class Action"); 3 WHEREAS, on June 1, 2017, the lead plaintiff in the Securities Class Action filed a 4 Notice of Voluntary Dismissal without Prejudice, and the case was closed the same day; 5 WHEREAS, the parties have met and conferred and agree that Plaintiffs shall have thirty 6 (30) days from entry of an order on this stipulation to file a consolidated complaint; 7 WHEREAS, in the event Plaintiffs do not file a consolidated complaint within thirty (30) 8 days from entry of an order on this stipulation, Plaintiffs shall dismiss the action without 9 prejudice within seven (7) days of the date the consolidated complaint would have been due; and 10 WHEREFORE, the parties, through their undersigned counsel, hereby agree, stipulate, 11 and respectfully request that the Court enter an Order as follows: 12 1. Defendants hereby acknowledge service of the summonses and complaints in the 13 Related Derivative Actions. Aside from defenses and objections related to the absence of a 14 summons or of service, Defendants expressly reserve all defenses and objections to the 15 complaints filed in the Related Derivative Actions and any complaints filed in the Consolidated 16 Derivative Action, including but not limited to defenses based on lack of personal jurisdiction 17 and improper venue. 18 2. Defendants need not answer, move or otherwise respond to any of the complaints 19 currently filed in the Related Derivative Actions. 20 3. The following actions shall be consolidated for all purposes, including pre-trial 21 proceedings and trial, into one consolidated action: 22 Case Name Case No. Filing Date 23 Silverman v. Schulman, et al. 5:17-cv-00162-RS January 12, 2017 24 Seeman v. Schulman, et al. 3:17-cv-02206-RS April 20, 2017 25 Sims v. Schulman, et al. 3:17-cv-02428-LHK April 27, 2017 26 Liss v. Schulman, et al. 5:17-cv-02446-EJD April 28, 2017 27 28 -5STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 4. Every pleading filed in the Consolidated Derivative Action, or in any separate 2 action included herein, must bear the following caption: 3 UNITED STATES DISTRICT COURT 4 FOR THE NORTHERN DISTRICT OF CALIFORNIA 5 7 IN RE PAYPAL HOLDINGS, INC. Lead Case No. 5:17-cv-00162-RS SHAREHOLDER DERIVATIVE LITIGATION (Consolidated with No. 3:17-cv-02206-RS; ___________________________________ 3:17-cv-02428-LHK; and 5:17-cv-02446-EJD) 8 This Document Relates To: 6 9 Hon. Richard Seeborg Courtroom: 3, 17th Floor ALL ACTIONS. 10 11 12 13 14 5. The files of the Consolidated Derivative Action will be maintained in one master file under Lead Case No. 5:17-cv-00162-RS. 6. Co-Lead Counsel for plaintiffs for the conduct of In re PayPal Holdings, Inc. Shareholder Derivative Litigation, Lead Case No. 5:17-cv-00162-RS, is designated as follows: 15 16 17 18 19 20 21 22 ROBBINS ARROYO LLP BRIAN J. ROBBINS FELIPE J. ARROYO SHANE P. SANDERS SCOTT F. TEMPLETON 600 B Street, Suite 1900 San Diego, CA 92101 Telephone: (619) 525-3990 Facsimile: (619) 525-3991 brobbins@robbinsarroyo.com farroyo@robbinsarroyo.com ssanders@robbinsarroyo.com stempleton@robbinsarroyo.com 23 24 -and- 25 26 27 28 -6STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 PROFY PROMISLOFF & CIARLANTO, P.C. JEFFREY J. CIARLANTO JOSEPH M. PROFY DAVID M. PROMISLOFF 100 N. 22nd Street, Unit 105 Philadelphia, PA 19103 Telephone: (215) 259-5156 Facsimile: (215) 600-2642 ciarlanto@prolawpa.com profy@prolawpa.com david@prolawpa.com 2 3 4 5 6 7 8 7. Plaintiffs' Co-Lead Counsel will be responsible for coordinating all activities and 9 appearances on behalf of plaintiffs and for the dissemination of notices and orders of this Court. 10 The parties further agree that no motion, request for discovery, or other pre-trial or trial 11 proceedings will be initiated or filed by any plaintiffs except through plaintiffs' Co-Lead 12 Counsel. 13 8. Defendants' counsel may rely upon all agreements made with any of plaintiffs' 14 Co-Lead Counsel, or other duly authorized representative of plaintiffs' Co-Lead Counsel, and 15 such agreements will be binding on plaintiffs. 16 9. This Order shall apply to each purported derivative action arising out of the same 17 or substantially the same transactions or events as the Related Derivative Actions that is 18 subsequently filed in, removed to, or transferred to this Court. 19 10. If a case that properly belongs as part of In re PayPal Holdings, Inc. Shareholder 20 Derivative Litigation, Lead Case No. 5:17-cv-00162-RS, is hereafter filed in this Court or 21 transferred here from another court, plaintiffs' Co-Lead Counsel shall promptly call to the 22 attention of the Clerk of the Court the filing or transfer of any case that might properly be 23 consolidated as part of In re PayPal Holdings, Inc. Shareholder Derivative Litigation, Lead Case 24 No. 5:17-cv-00162-RS. 25 11. In the interest of efficiency and avoidance of unnecessary duplication of effort or 26 judicial resources by the Court or the parties, it is further Ordered that (i) within thirty (30) days 27 of the entry of an order consolidating the Related Derivative Actions, plaintiffs shall file a 28 -7STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 consolidated complaint; (ii) if plaintiffs decide to file a consolidated complaint, the parties shall 2 meet and confer within seven (7) days of that filing and propose a schedule with the Court 3 regarding further proceedings in the Consolidated Derivative Action, including the filing of 4 Defendants' anticipated motions to dismiss; and (iii) in the event Plaintiffs do not file a 5 consolidated complaint within thirty (30) days from entry of an order on this stipulation, 6 Plaintiffs shall dismiss the action without prejudice within seven (7) days of the date the 7 consolidated complaint would have been due. 8 12. All initial case management conferences currently scheduled, attendant 9 deadlines, and related ADR procedures shall be deferred until the Court issues a ruling on 10 Defendants' anticipated motions to dismiss. 11 13. Pursuant to Fed. R. Civ. P. 5(b)(2)(E), all parties consent to service by e-mail of 12 any document required to be served in the Consolidated Derivative Action. 13 IT IS SO STIPULATED. 14 Dated: June 29, 2017 15 16 ROBBINS ARROYO LLP BRIAN J. ROBBINS FELIPE J. ARROYO SHANE P. SANDERS SCOTT F. TEMPLETON 17 /s/ Shane P. Sanders SHANE P. SANDERS 18 19 20 21 22 23 600 B Street, Suite 1900 San Diego, CA 92101 Telephone: (619) 525-3990 Facsimile: (619) 525-3991 E-mail: brobbins@robbinsarroyo.com farroyo@robbinsarroyo.com ssanders@robbinsarroyo.com stempleton@robbinsarroyo.com 24 25 Counsel for Plaintiffs Steve Sims and Edith Liss and [Proposed] Co-Lead Counsel for Plaintiffs 26 27 28 -8STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 Dated: June 29, 2017 2 PROFY PROMISLOFF & CIARLANTO, P.C. JEFFREY J. CIARLANTO JOSEPH M. PROFY DAVID M. PROMISLOFF 3 /s/ Jeffrey J. Ciarlanto JEFFREY J. CIARLANTO 4 5 100 N. 22nd Street, Unit 105 Philadelphia, PA 19103 Telephone: (215) 259-5156 Facsimile: (215) 600-2642 E-mail: ciarlanto@prolawpa.com profy@prolawpa.com david@prolawpa.com 6 7 8 9 Counsel for Plaintiff Stephen Silverman and [Proposed] Co-Lead Counsel for Plaintiffs 10 11 12 Dated: June 29, 2017 BRODSKY & SMITH, LLC EVAN J. SMITH 13 /s/ Evan J. Smith EVAN J. SMITH 14 15 16 17 9595 Wilshire Blvd. Beverly Hills, CA 90212 Telephone: (877) 534-2590 Facsimile: (310) 247-0160 E-mail: esmith@brodsky-smith.com 18 19 20 21 22 23 24 25 LAW OFFICE OF ALFRED G. YATES, JR., P.C. ALFRED G. YATES, JR. GERALD L. RUTLEDGE 519 Allegheny Building 429 Forbes Avenue Pittsburgh, PA 15219 Telephone: (412) 391-5164 Facsimile: (412) 471-1033 E-mail: yateslaw@aol.com Counsel for Plaintiff Stephen Silverman 26 27 28 -9STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS 1 Dated: June 29, 2017 THE BROWN LAW FIRM, P.C. TIMOTHY W. BROWN 2 /s/ Timothy W. Brown TIMOTHY W. BROWN 3 4 240 Townsend Square Oyster Bay, NY 11771 Telephone: (516) 922-5427 Facsimile: (516) 344-6204 E-mail: tbrown@thebrownlawfirm.com 5 6 7 Of Counsel for Plaintiff Steve Seeman 8 9 Dated: June 29, 2017 10 ORRICK, HERRINGTON & SUTCLIFFE LLP JAMES NEIL KRAMER ALEXANDER K. TALARIDES SUZETTE PRINGLE 11 /s/ Alexander K. Talarides ALEXANDER K. TALARIDES 12 13 The Orrick Building 405 Howard Street San Francisco, CA 94105 Telephone: (415) 773-5700 Facsimile: (415) 773-5759 E-mail: atalarides@orrick.com jkramer@orrick.com springle@orrick.com 14 15 16 17 18 Counsel for individual defendants Daniel H. Schulman, John D. Rainey, John J. Donahoe, David M. Moffett, Pierre M. Omidyar, Gail J. McGovern, Frank D. Yeary, David W. Dorman, Jonathan Christodoro, Wences Casares, and Patrick L.A. Dupuis and nominal defendant PayPal Holdings, Inc. 19 20 21 22 23 24 25 26 1187533 27 28 - 10 STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS SIGNATURE ATTESTATION 1 2 I, Shane P. Sanders, am the ECF user whose identification and password are being used to 3 file the foregoing Stipulation and [Proposed] Order Consolidating Related Derivative Actions 4 and Appointing Co-Lead Counsel for Plaintiffs. In compliance with Civil L.R. 5-1(i)(3), I 5 hereby attest that concurrence in the filing of this document has been obtained. 6 7 Dated: June 29, 2017 /s/ Shane P. Sanders SHANE P. SANDERS 8 9 **** 10 11 ORDER 12 13 PURSUANT TO STIPULATION, IT IS SO ORDERED. 14 15 16 17 DATED: _______________________ 6/30/17 ______________________________________ HON. RICHARD SEEBORG UNITED STATES DISTRICT COURT 18 19 20 21 22 23 24 25 26 27 28 - 11 STIPULATION & [PROPOSED] ORDER CONSOLIDATING RELATED DERIVATIVE ACTIONS AND APPOINTING CO-LEAD COUNSEL FOR PLAINTIFFS Lead Case No. 5:17-cv-00162-RS

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