In re Leapfrog Enterprises, Inc. Securities Litigation

Filing 319

ORDER by Judge Whyte granting 316 Motion for Settlement (rmwlc3, COURT STAFF) (Filed on 12/31/2009)

1 Joseph J. Tabacco, Jr. (75484) Christopher T. Heffelfinger (118058) 2 Nicole Lavallee (165755) Julie J. Bai (227047) 3 BERMAN DEVALERIO 425 California Street, Suite 2100 4 San Francisco, CA 94104-2205 Telephone: [phone] Facsimile: [phone] Email: [e-mail] 6 Liaison Counsel for the Class 7 Steven J. Toll (admitted pro hac vice) Matthew K. Handley (admitted pro hac vice) 8 COHEN MILSTEIN SELLERS & TOLL PLLC 1100 New York Avenue, N.W. 9 West Tower, Suite 500 Washington, D.C. 20005 10 Telephone: [phone] Facsimile: [phone] 11 Email: [e-mail] 12 Lead Counsel for the Class 13 14 15 16 17 18 In re LEAPFROG ENTERPRISES, INC. SECURITIES LITIGATION 19 20 21 22 23 24 25 26 27 28 This Document Relates To: All Actions

E-Filed 12/31/09

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

No. C-03-05421(RMW) And Related Cases [PROPOSED] ORDER RE: XXXXXXXXXX DISTRIBUTION OF CLASS SETTLEMENT FUND

[No. 03-05421(RMW)] - [PROPOSED] ORDER RE: DISTRIBUTION OF CLASS SETTLEMENT FUND

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WHEREAS, on September 29, 2008, this Court entered an Order and Final Judgment

2 approving the terms of the Stipulation of Settlement dated April 18, 2008 (the "Stipulation") and the 3 Plan of Allocation; and 4 WHEREAS, this Court has directed the parties to consummate the terms of the Stipulation

5 and the Plan of Allocation; and 6 WHEREAS, this Court has retained jurisdiction of the above-captioned action (the

7 "Action") for the purpose of considering any further application or matter which may arise in 8 connection with the administration and execution of the Settlement and the processing of Proofs of 9 Claim ("Proofs of Claim") and the distribution of the Net Settlement Fund to the Authorized 10 Claimants. 11 NOW, THEREFORE, upon reading and filing the Declaration of Jennifer M. Keough of

12 Garden City Group, the Claims Administrator, and the accompanying memorandum of law, and 13 upon all prior proceedings herein and after due deliberation, it is hereby: 14 ORDERED, that the administrative determinations of the Claims Administrator accepting

15 the claims as indicated on the computer printout of accepted claims submitted with and described in 16 the Declaration of Jennifer M. Keough, including claims submitted after February 9, 2009 through 17 and including August 3, 2009, be and the same hereby are approved, and said claims are hereby 18 accepted; and it is further 19 ORDERED, that the administrative determinations of the Claims Administrator rejecting the

20 claims as indicated on the computer printout of rejected claims submitted with and described in the 21 Declaration of Jennifer M. Keough be and the same hereby are approved, and said claims are hereby 22 rejected; and it is further 23 ORDERED, that Garden City Group be paid the sum of $341,288.65 from the Settlement

24 Fund and the interest accrued thereon for the balance of its fees and expenses incurred and to be 25 incurred in connection with the services performed and to be performed in giving notice to the Class, 26 preparing tax returns for the Settlement Fund, processing the Proofs of Claim, and administering and 27 distributing the Settlement Fund; and it is further 28
[No. 03-05421(RMW)] - [PROPOSED] ORDER RE: DISTRIBUTION OF CLASS SETTLEMENT FUND

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ORDERED, that the balance of the Settlement Fund and interest accrued thereon after

2 deducting the payments previously allowed and set forth herein (the "Net Settlement Fund") shall be 3 distributed to the eligible claimants listed on the computer printout submitted with the Declaration of 4 Jennifer M. Keough in proportion to the Recognized Claim allocated to each such eligible claimant 5 as shown on such printout; and it is further 6 ORDERED, that the payments to be distributed to the Authorized Claimants shall bear the

7 notation "CASH PROMPTLY, VOID AND SUBJECT TO RE-DISTRIBUTION 180 DAYS 8 AFTER ISSUE DATE." Class Counsel and the Claims Administrator are authorized to take 9 appropriate action to locate and/or contact any eligible claimant who has not cashed his, her or its 10 distribution within said time; and it is further 11 ORDERED, that the costs of such services to locate and reissue payments to such

12 Authorized Claimants shall be payable from the unclaimed/un-cashed monies remaining in the Net 13 Settlement Fund; and it is further 14 ORDERED, that, as provided in the Stipulation, after the Claims Administrator has made

15 reasonable and diligent efforts to have Authorized Claimants who are entitled to participate in the 16 distribution of the Net Settlement Fund cash their distribution checks, then any balance remaining in 17 the Net Settlement Fund six (6) months after the initial distribution of such funds shall be used: (a) 18 first to pay any amounts mistakenly omitted from the initial distribution to Authorized Claimants or 19 to pay any late, but otherwise valid and fully documented claims received after the cut-off date used 20 to make the initial distribution, which were not previously authorized by the Court to be paid, 21 provided that such distributions to any late post-distribution claimants meet all of the other criteria 22 for inclusion in the initial distribution, including the $10.00 minimum check amount set out in the 23 Notice, (b) second to pay any additional settlement administration fees and expenses, including those 24 of Lead Counsel as may be approved by the Court, and (c) finally, to make a second distribution to 25 Authorized Claimants who cashed their checks from the initial distribution and who would receive at 26 least $10.00 from such second distribution, after payment of the estimated costs or fees to be 27 incurred in administering the Net Settlement Fund and in making this second distribution, if Lead 28 Counsel determines that such second distribution is economically feasible. If after six (6) months
[No. 03-05421(RMW)] - [PROPOSED] ORDER RE: DISTRIBUTION OF CLASS SETTLEMENT FUND

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1 after such second distribution, if undertaken, or if such second distribution is not undertaken, any 2 funds shall remain in the Net Settlement Fund after the Claims Administrator has made reasonable 3 and diligent efforts to have Authorized Claimants who are entitled to participate in this Settlement 4 cash their checks, the Claims Administrator shall donate any funds remaining in the Net Settlement 5 Fund to a 503(c) charity chosen by Lead Counsel and approved by the Court; and it is further 6 ORDERED, that all persons involved in the review, verification, calculation, tabulation, or

7 any other aspect of the processing of the claims submitted herein, or otherwise involved in the 8 administration or taxation of the Settlement Fund or the Net Settlement Fund are released and 9 discharged from any and all claims arising out of such involvement, and all Class Members, whether 10 or not they are to receive payment from the Net Settlement Fund, are barred from making any further 11 claim against the Net Settlement Fund or the released persons beyond the amount allocated to them 12 pursuant to this Order, and it is further 13 ORDERED, that the Claims Administrator is hereby authorized to discard paper or hard

14 copies of the Proofs of Claim and supporting documents not less than one year after the initial 15 distribution of the Net Settlement Fund to the eligible claimants and electronic or magnetic media 16 data not less than three years after the initial distribution of the Net Settlement Fund to the eligible 17 claimants; and it is further 18 ORDERED, that no claim submitted after August 3, 2009 may be accepted for any reason

19 whatsoever; and it is further 20 ORDERED, that this Court retain jurisdiction over any further application or matter which

21 may arise in connection with this Action. 22 23 Dated: 24 25 26 27 28
[No. 03-05421(RMW)] - [PROPOSED] ORDER RE: DISTRIBUTION OF CLASS SETTLEMENT FUND

12/21/09 _______________________________________ THE HONORABLE RONALD M. WHYTE UNITED STATES DISTRICT JUDGE

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