In re FINISAR CORP. DERIVATIVE LITIGATION

Filing 182

STIPULATION AND ORDER 179 Regarding Substitution of the Mitchell Family Revocable Trust, Larry Mitchell Terminated. Signed by Judge Ronald M. Whyte on 9/5/12. (jg, COURT STAFF) (Filed on 9/5/2012)

1 ROBBINS GELLER RUDMAN
& DOWD LLP
2 SHAWN A. WILLIAMS (213113)
CHRISTOPHER M. WOOD (254908)
3 Post Montgomery Center
One Montgomery Street, Suite 1800
4 San Francisco, CA 94104
Telephone: [phone]
5 415/288-4534 (fax)
[e-mail]
SAXENA WHITE P.A.
6 [e-mail]
MAYA SAXENA
– and –
JOSEPH E. WHITE
7 TRAVIS E. DOWNS III (148274)
2424 N. Federal Highway, Suite 257
655 West Broadway, Suite 1900
Boca Raton, FL 33431
8 San Diego, CA 92101
Telephone: [phone]
Telephone: [phone]
561/394-3382 (fax)
9 619/231-7423 (fax)
[e-mail]
[e-mail]
[e-mail]
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Co-Lead Counsel for Plaintiffs
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
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) Master File No. C-06-07660-RMW
In re FINISAR CORP. DERIVATIVE
)
15 LITIGATION
) STIPULATION AND [] ORDER
) REGARDING SUBSTITUTION OF THE
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) MITCHELL FAMILY REVOCABLE TRUST
This Document Relates To:
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ALL ACTIONS.
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748890_1

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Plaintiffs, Finisar and defendants hereby submit this Stipulation and [Proposed] Order

2 Regarding Substitution of the Mitchell Family Revocable Trust, in order to memorialize their
3 agreement and obtain the Court’s approval of the parties’ agreement as set forth herein.
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WHEREAS, on May 21, 2008, plaintiffs filed the operative complaint in this matter, the

5 Supplemental Second Amended Consolidated Verified Shareholder Derivative Complaint (the
6 “SSAC”) (Dkt. No. 63-1);
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WHEREAS, the SSAC named Larry Mitchell, a former member of Finisar’s Board of

8 Directors, as a defendant;
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WHEREAS, Mr. Mitchell passed away during the course of this litigation;
WHEREAS, the date for filing a motion for substitution with respect to the claims against

11 Mr. Mitchell has not passed;
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WHEREAS, plaintiffs do not believe that pursuing claims against Mr. Mitchell’s estate is in

13 the best interests of any of the parties to the action;
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WHEREAS, certain defendants have contended that plaintiffs must prove that a demand on

15 Finisar’s Board of Directors at the time this litigation was commenced would have been futile in
16 order to prevail on the claims asserted in this action;
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WHEREAS, Mr. Mitchell was a member of Finisar’s Board of Directors at the time this

18 action was commenced;
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WHEREAS, defendants and Finisar have agreed that they will never contend that plaintiffs’

20 decision to forego any potential claims against Mr. Mitchell’s estate is in any way relevant to a
21 determination regarding whether a demand on Mr. Mitchell or Finisar’s Board of Directors would
22 have been futile at the time that the SSAC was filed.
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THEREFORE, the parties agree, subject to this Court’s approval, as follows:

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1.

Plaintiffs will not move to substitute any party with respect to the claims asserted in

25 the SSAC against Mr. Mitchell;
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2.

None of the parties will contend that plaintiffs’ decision to forego any potential

27 claims against Mr. Mitchell’s estate is in any way relevant to a determination regarding whether a
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748890_1

STIPULATION AND [] ORDER REGARDING SUBSTITUTION OF THE MITCHELL
FAMILY REVOCABLE TRUST - C-06-07660-RMW

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1 demand on Mr. Mitchell or Finisar’s Board of Directors would have been futile at the time that the
2 SSAC was filed;
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3.

Except as provided in the foregoing paragraph 2, nothing in this stipulation shall limit

4 or prejudice any arguments, claims or defenses of defendants that a demand on Mr. Mitchell or
5 Finisar’s Board of Directors would not have been futile at the time that the SSAC was filed; and
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4.

Nothing in this stipulation shall limit or prejudice any argument or claim that

7 plaintiffs need not prove that a demand on Finisar’s Board of Directors at the time this litigation was
8 commenced would have been futile in order to prevail on the claims asserted in this action.
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IT IS SO STIPULATED.

10 DATED: August 13, 2012
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ROBBINS GELLER RUDMAN
& DOWD LLP
SHAWN A. WILLIAMS
CHRISTOPHER M. WOOD

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s/ Christopher M. Wood
CHRISTOPHER M. WOOD
Post Montgomery Center
One Montgomery Street, Suite 1800
San Francisco, CA 94104
Telephone: [phone]
415/288-4534 (fax)
ROBBINS GELLER RUDMAN
& DOWD LLP
TRAVIS E. DOWNS III
655 West Broadway, Suite 1900
San Diego, CA 92101
Telephone: [phone]
619/231-7423 (fax)

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SAXENA WHITE P.A.
MAYA SAXENA
JOSEPH E. WHITE
2424 N. Federal Highway, Suite 257
Boca Raton, FL 33431
Telephone: [phone]
561/394-3382 (fax)

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Co-Lead Counsel for Plaintiffs

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STIPULATION AND [] ORDER REGARDING SUBSTITUTION OF THE MITCHELL
FAMILY REVOCABLE TRUST - C-06-07660-RMW

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1 DATED: August 13, 2012
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s/ Sarah A. Good
SARAH A. GOOD

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50 Fremont Street
Post Office Box 7880
San Francisco, CA 94120-7880
Telephone: [phone]
415/983-1200 (fax)

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Counsel for Defendants David Buse, John Drury,
Mark Farley, Jan Lipson, Stephen Workman and
Joseph Young

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PILLSBURY WINTHROP SHAW
PITTMAN LLP
SARAH A. GOOD

DATED: August 13, 2012

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DLA PIPER LLP
DAVID A. PRIEBE
s/ David A. Priebe
DAVID A. PRIEBE

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2000 University Avenue
East Palo Alto, CA 94303-2214
Telephone: [phone]
650/833-2001 (fax)

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Counsel for Defendants David Fries, Harold
Hughes, Gregory Olsen and Nominal Defendant
Finisar Corporation

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19 DATED: August 13, 2012

GOODWIN PROCTER LLP
LLOYD WINAWER

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s/ Lloyd Winawer
LLOYD WINAWER
135 Commonwealth Drive
Menlo Park, California 94025
Telephone: [phone]
650/853-1038 (fax)

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STIPULATION AND [] ORDER REGARDING SUBSTITUTION OF THE MITCHELL
FAMILY REVOCABLE TRUST - C-06-07660-RMW

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STEPHEN D. POSS
Exchange Place
53 State Street
Boston, MA 02109
Telephone: [phone]
517/523-1231 (fax)

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Counsel for Defendants Michael C. Child, Roger
C. Ferguson, Frank H. Levinson, Robert N.
Stephens and Dominique Trempont

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8 DATED: August 13, 2012
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LAW OFFICES OF JARED L. KOPEL
JARED L. KOPEL
s/ Jared L. Kopel
JARED L. KOPEL
303 Almaden Blvd., Suite 500
San Jose, CA 95110
Telephone: [phone]
408/291-3934 (fax)
Counsel for Defendant Jerry S. Rawls

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I, Christopher M. Wood, am the ECF User whose identification and password are being used

17 to file the Stipulation and [Proposed] Order Regarding Substitution of the Mitchell Family
18 Revocable Trust. In compliance with Civil Local Rule 5-1(i)(3), I hereby attest that Sarah A. Good,
19 David A. Priebe, Lloyd Winawer and Jared L. Kopel have concurred in this filing.
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s/ Christopher M. Wood
CHRISTOPHER M. WOOD

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STIPULATION AND [] ORDER REGARDING SUBSTITUTION OF THE MITCHELL
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ORDER

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Having considered the parties’ Stipulation, and good cause appearing, the Court hereby
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GRANTS the parties’ Stipulation.
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IT IS SO ORDERED.
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7 Dated: ___________________, 2012
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THE HONORABLE RONALD M. WHYTE
UNITED STATES DISTRICT JUDGE

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STIPULATION AND [] ORDER REGARDING SUBSTITUTION OF THE MITCHELL
FAMILY REVOCABLE TRUST - C-06-07660-RMW

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