In re KLA-Tencor Corp., Shareholder Derivative Litigation

Filing 499

ORDER SEALING THE COURTS DECEMBER 12, 2008 ORDER; GRANTING DEFENDANT SCHROEDERS MOTION TO CORRECT re #487 MOTION Correction to 12/12/08 Order and Objection to Publication of Unredacted Order. Signed by Judge James Ware on 1/5/2009. (ecg, COURT STAFF) (Filed on 1/6/2009) Modified docket text on 1/12/2009 (ecg, COURT STAFF).

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1 2 3 4 5 6 7 8 9 10 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION In Re KLA-Tencor Corp. Shareholder Derivative Action NO. C 06-03445 JW ORDER SEALING THE COURT'S DECEMBER 12, 2008 ORDER; GRANTING DEFENDANT SCHROEDER'S MOTION TO CORRECT United States District Court 11 For the Northern District of California 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 / Presently before the Court is the issue of whether the Court should publish in full its December 12, 2008 Order Denying the Special Litigation Committee's Motion to Terminate and Dismiss the Amended Consolidated Complaint and to Approve Settlements with Certain Individual Defendants.1 In its December 12 Order, the Court ordered the parties to file briefs addressing whether, in light of prior orders granting various motions to file documents under seal,2 an unredacted version of the Order should be published. (December 12 Order at 9.) The parties have filed their respective responses pursuant to the Court's Order.3 In addition to filing a response, Defendant Schroeder seeks a correction of a statement attributed to him in the unredacted Order.4 (hereafter, "December 12 Order," Docket Item No. 484.) The parties were provided with the unredacted Order ("Unredacted Order"). On April 18, 2008, the Court granted various administrative motions to file documents under seal in connection with the Special Litigation Committee's ("SLC") Motion to Terminate. (See April 18, 2008 Order, hereafter, "April 18 Order," Docket Item No. 201.) (See Plaintiff's Response to the Court's December 12, 2008 Order to Show Cause at 1, hereafter, "Plaintiff's Response," Docket Item No. 488; KLA-Tencor Corporation's Response to Order to Show Cause Why The Court's December 12, 2008 Order Should Not Be Published at 1, hereafter, "Defendant KLA's Response," Docket Item No. 489.) (See Defendant Kenneth L. Schroeder's Request for Correction to the Order and Objection to Publication of Unredacted Order, hereafter, "Schroeder Motion," Docket Item No. 487.) 4 3 2 1 1 2 3 4 5 6 7 8 9 10 With respect to Plaintiffs' contention that the unredacted December 12 Order should be published in full, the Court finds that in granting Defendants' various motions to seal, it has properly balanced the competing interests of the public's desire for access with the Defendants' need to keep certain records secret. See Kamakana v. City & County of Honolulu, 447 F.3d 1172, 1179 (9th Cir. 2006). The Court granted the various motions to seal documents on the ground that the documents to be sealed contained detailed information about the SLC's investigation, including confidential information about individual Defendants' compensation and confidential settlement agreements, and that KLA has an interest in protecting the confidentiality of the Company's internal processes. (April 18 Order at 2.) Thus, contrary to Plaintiffs' contention, the April 18 Order was not based on the discovery stay in a separate securities class action. The purpose for allowing the documents to be sealed has not been vitiated by the settlement of a separate securities class action or by the Court's denial of the SLC's Motion to Terminate. Accordingly, the unredacted version of the December 12 Order shall be filed under seal by the order of the Court. With respect to Defendant Schroeder's motion, Schroeder moves to correct what he contends is a misstatement contained in the unredacted version of the Court's December 12 Order. (Schroeder Motion at 6.) On page 8, lines 7 and 8, of the Court's unredacted December 12 Order, the Court attributes two emails to Schroeder. However, the record shows that Schroeder was not the author of the first email cited by the Court. Thus, the Court finds that Schroeder has correctly identified a misstatement by the Court and grants the motion to correct the misstatement in the December 12 Order. Accordingly, the Court strikes the sentence on page 8, lines 7 and 8, of the December 12 Order and replaces it with, "Schroeder responded on January 27 with an email, stating, `OK for the price on 1/24.'"5 United States District Court 11 For the Northern District of California 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Although this quote is taken from an exhibit submitted under seal, the Court finds that its publication in this Order, for the purposes of correcting the misstatement, is necessary. 2 5 1 2 3 4 5 6 7 8 9 10 The Clerk of Court shall file under seal the Unredacted December 12 Order. Dated: January 5, 2009 JAMES WARE United States District Judge United States District Court 11 For the Northern District of California 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 1 2 3 4 5 6 7 8 9 10 THIS IS TO CERTIFY THAT COPIES OF THIS ORDER HAVE BEEN DELIVERED TO: Alice L. Jensen ajensen@fenwick.com Arthur L. Shingler ashingler@scott-scott.com Benjamin Patrick Smith bpsmith@morganlewis.com Christopher J. Banks cbanks@morganlewis.com Christopher Martin Wood cwood@csgrr.com David Allen Priebe david.priebe@dlapiper.com David R. Scott drscott@scott-scott.com Dean S. Kristy dkristy@fenwick.com Denise V. Zamore dzamore@scott-scott.com Emily Victoria Griffen egriffen@shearman.com Felicia Gross felicia@ramsey-ehrlich.com Geoffrey M. Johnson gjohnson@scott-scott.com Ismail Jomo Ramsey izzy@ramsey-ehrlich.com James Elliot Lyons jlyons@skadden.com Jeffrey Bruce Coopersmith jeff.coopersmith@dlapiper.com Jonathan B. Gaskin jgaskin@orrick.com Joseph Edward Floren jfloren@morganlewis.com Joseph Edward Floren jfloren@morganlewis.com Kevin Peter Muck kmuck@fenwick.com Lanelle Kay Meidan lanelle.meidan@skadden.com Leigh Anne Parker lparker@wllawca.com Liwen Arius Mah lmah@fenwick.com Lucas F. Olts luke.olts@bullivant.com Matthew S. Weiler mweiler@morganlewis.com Michael J. Shepard mjshepard@hhlaw.com Michael Todd Scott tscott@orrick.com Miles F. Ehrlich miles@ramsey-ehrlich.com Nicole Catherine Lavallee nlavallee@bermanesq.com Patrick David Robbins probbins@shearman.com Paul F. Bennett pfb@gbcslaw.com Robert P. Varian rvarian@orrick.com Shawn A. Williams shawnw@csgrr.com Shawn A. Williams shawnw@csgrr.com Shirli Fabbri Weiss shirli.weiss@dlapiper.com Steve Shea Kaufhold skaufhold@akingump.com Tera Marie Heintz theintz@morganlewis.com Thomas R. Green tgreen@morganlewis.com Thomas Samuel Kimbrell thomas.kimbrell@hellerehrman.com Timothy Alan Miller tmiller@skadden.com Travis E. Downs travisd@csgrr.com Walter F. Brown wbrown@orrick.com Warrington S. Parker wparker@orrick.com Dated: January 5, 2009 Richard W. Wieking, Clerk By: /s/ JW Chambers Elizabeth Garcia Courtroom Deputy United States District Court 11 For the Northern District of California 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

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