Wilson v. Finisar Corporation et al

Filing 14

ORDER RELATING CASE; SETTING CASE MANAGEMENT CONFERENCE. Accordingly, the Clerk of Court shall immediately relate Derchi-Russo v. Finisar Corporation, et al., Case No. CV 11-1252 EJD to Wilson v. Finisar Corporation, et al., Case No. CV 11-1278 CW an d Wade v. Finisar Corporation, et al., Case No. CV 11-1635 PJH. The parties in all three cases shall appear for a Case Management Conference on June 15, 2011 at 9 a.m. On or before June 6, 2011, the parties shall file a Joint Case Management Statement. The Statement shall address whether the cases should be consolidated and if so, a schedule for nomination of Lead Plaintiff and Lead Counsel. Signed by Judge Edward J. Davila on 5/4/2011. (ecg, COURT STAFF) (Filed on 5/4/2011)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

United States District Court
For the Northern District of California

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MARTIN DERCHI RUSSO,
Plaintiff,

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v.

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No. CV 11-1252 EJD
No. CV 11-1278 CW
No. CV 11-1365 PJH
ORDER GRANTING MOTION TO
RELATE CASES; SETTING CASE
MANAGEMENT CONFERENCE

FINISAR CORPORATION, et al.
Defendant.

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/

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Presently before the Court is Defendants Finisar Corporation, Jerry S. Rawls, Eitan Gertel

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and Kurt Adzema’s (collectively, “Defendants”) unopposed Administrative Motion to

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Consider Whether Cases Should be Related. (Hereafter, “Motion,” CV 11-1252 EJD, Docket Item

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No. 12.) Defendants seek the Court’s determination as to whether Wilson v. Finisar Corporation, et

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al., Case No. CV 11-1278 CW and Wade v. Finisar Corporation, et al., Case No. CV 11-1635 PJH,

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should be related to this action, Derchi-Russo v. Finisar Corporation, et al., Case No. CV 11-1252

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EJD. Defendants contend that all three cases assert nearly identical claims against the same

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defendants, based on the same statements allegedly made between the same dates. Further, in each

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case, the claims are asserted on behalf of an almost identical alleged plaintiff classes of securities

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purchasers. (Motion at 1.)

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Civil Local Rule 3-12(a) provides:

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An action is related to another action when:

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(1) The action concerns substantially the same parties, property,
transaction or event; and

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(2) It appears likely that there will be an unduly burdensome
duplication of labor and expense or conflicting results if the cases are
conducted before different judges.

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Here, the Court finds the three actions involve an overlapping class of Plaintiffs that

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purchased or otherwise acquired Finisar securities between December 1, 2010 and March 8, 2011

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United States District Court
For the Northern District of California

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and were allegedly mislead by the same statements regarding Finisar.1 Plaintiffs allege in all three

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cases that Defendants’ made false and/or misleading statements and failed to disclose material

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adverse facts about Finisar’s business, operations, and prospects . (See id.) All three cases allege

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similar causes of action, and thus involve the same issues of law relating to Sections 10(b) and 20(a)

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of the Securities Exchange Act of 1934. (Id.) The Court also finds that the three actions pose a

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substantial risk of inconsistent judgments. In light of the substantial similarity of parties and events,

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the Court finds that there is a risk of “an unduly burdensome duplication of labor and expense or

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conflicting results if the cases are conducted before different judges.” Thus, the Court finds that the

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cases are related within the meaning of Rule 3-12(a).
Accordingly, the Clerk of Court shall immediately relate Derchi-Russo v. Finisar

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Corporation, et al., Case No. CV 11-1252 EJD to Wilson v. Finisar Corporation, et al., Case No. CV

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11-1278 CW and Wade v. Finisar Corporation, et al., Case No. CV 11-1635 PJH.

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(Compare Class Action Complaint, CV 11-1252 EJD, Docket Item No. 1 with Class Action Complaint, CV 111278 CW, Docket Item No. 1 and Class Action Complaint, CV 11-1635 PJH, Docket Item No. 1.)

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The parties in all three cases shall appear for a Case Management Conference on June 15,

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2011 at 9 a.m. On or before June 6, 2011, the parties shall file a Joint Case Management

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Statement. The Statement shall address whether the cases should be consolidated and if so, a

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schedule for nomination of Lead Plaintiff and Lead Counsel.

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IT IS SO ORDERED.

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Dated: May 4, 2011
Edward J. Davila
UNITED STATES DISTRICT JUDGE

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United States District Court
For the Northern District of California

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