Watkins v. Shrotriya et al

Filing 23

IT IS ORDERED that this case shall remain STAYED until the settlement is finalized.IT IS FURTHER ORDERED the parties file a Joint Status Report by 10/11/2016. Signed by Judge Jennifer A. Dorsey on 9/9/2016. (Copies have been distributed pursuant to the NEF - DC)

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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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IN RE: SPECTRUM PHARMACEUTICALS, INC.
DERIVATIVE SHAREHOLDER LITIGATION

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This Document Relates to ALL ACTIONS

Master File No. 2:13-cv-00624JAD-CWH
(Consolidated with: 2:13-cv00684-JAD-CWH; and 2:13-cv00942-JAD-CWH)

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Hon. Jennifer A. Dorsey
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JOINT STATUS REPORT IN RESPONSE TO
THE ORDER TO SHOW CAUSE DATED SEPTEMBER 2, 2016
WHEREAS, by Order dated September 2, 2016 (D.E. 26), this Court ordered that “the parties

12 must show cause, in writing, no later than September 13, 2016, why this case should not be dismissed.
13 Failure to show cause will result in the dismissal of these consolidated cases without further
14 notice.” (Emphasis in Order);
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WHEREAS, beginning on April 11, 2013, three federal shareholder derivative complaints were

16 filed in this Court against the individual defendants and nominal defendant Spectrum Pharmaceuticals,
17 Inc.: Fik v. Shrotriya, et al., No. 2:13-cv-00624-JAD-CWH; Watkins v. Shrotriya, et al., No. 2:13-cv18 00684-JAD-CWH; and Muenchhagen v. Shrotriya, et al., No. 2:13-cv-00942-JAD-CWH (collectively,
19 the “Derivative Actions”). The Derivative Actions generally allege breaches of fiduciary duty, unjust
20 enrichment, abuse of control, gross mismanagement, and waste of corporate assets relating to
21 allegations in the securities class action entitled In re: Spectrum Pharmaceuticals, Inc., Securities
22 Litigation, No. 2:13-cv-00433-LDG-CWH (the “Securities Class Action”), which was pending before
23 the Honorable Lloyd D. George and has now settled;
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WHEREAS, on May 15, 2013, the Court entered an Order (the “May 15, 2013 Order”)

25 consolidating and staying the first two Derivative Actions pending resolution of the Securities Class
26 Action, but allowing the parties to lift the stay following a final ruling on defendants’ motion to dismiss
27 in the Securities Class Action. The Court also appointed the Derivative Plaintiff Timothy J. Fik as
28 Lead Plaintiff, Federman & Sherwood as Lead Counsel, Bailey Kennedy as Liaison Counsel, and re1

1 styled the consolidated action as In Re: Spectrum Pharmaceuticals, Inc., Derivative Shareholder
2 Litigation;
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WHEREAS, on December 6, 2013, the Court ordered that the third filed action, styled

4 Muenchhagen v. Shrotriya, et al., No. 2:13-cv-00942-JAD-CWH, should also be consolidated and
5 stayed pursuant to the May 15, 2013 Order;
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WHEREAS, on August 10, 2015, the Parties participated in a formal mediation before Mr. Jed

7 D. Melnick, Esq. (“Mr. Melnick”), a respected and highly experienced mediator, to assist them in
8 exploring a potential negotiated resolution of the claims in the Derivative Actions. To facilitate a
9 productive mediation, the Parties exchanged a series of letters, information and briefs;
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WHEREAS, on November 19, 2015, the parties to the Securities Class Action entered into a

11 stipulation of settlement, which the Court preliminarily approved on January 26, 2016. The Court
12 scheduled a hearing on final approval of the settlement in the Securities Class Action for June 13, 2016.
13 The Court approved the settlement on that day;
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WHEREAS, subsequent to the August 2015 mediation, counsel for the Parties hereto have

15 completed substantial communications and arm’s-length negotiations in an effort to reach a settlement
16 of the Derivative Actions, including parallel derivative actions pending in Nevada state court;
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WHEREAS, the Parties have reached a settlement in principle and are negotiating the issue of

18 attorneys’ fees and expenses and developing the necessary written agreements to present the proposed
19 settlement to the Court; and
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WHEREAS, the Parties have met and conferred, and therefore:

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ACCORDINGLY, the Parties respectfully submit that:

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finalize the settlement; and

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finalize the settlement by Tuesday, October 11, 2016.

The Court should allow the Derivative Actions to remain stayed while the parties

The parties shall file a further joint status report on the progress of their efforts to

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Dated: September 8th, 2016

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BAILEY & KENNEDY

BROWNSTEIN HYATT FARBER
SCHRECK, LLP

By: /s/ Dennis L. Kennedy
DENNIS L. KENNEDY
Nevada Bar No. 1462
JOSEPH A. LIEBMAN
Nevada Bar No. 10125
8984 Spanish Ridge Avenue
Las Vegas, NV 89148-1302
[phone] Telephone
[phone] Facsimile
Plaintiffs Liaison Counsel

By: /s/ Jeffrey S. Rugg
KIRK B. LENHARD
Nevada Bar No. 1437
JEFFREY S. RUGG
Nevada Bar No. 10978
100 North City Parkway, Suite 1600
Las Vegas, NV 89106-4614
Tel: [phone]
Fax: [phone]

-and-

-and-

WILLIAM B. FEDERMAN
FEDERMAN & SHERWOOD
10205 N. Pennsylvania Avenue
Oklahoma City, OK 73120
[phone] Telephone
[phone] Facsimile
Plaintiffs Lead Counsel

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JOHN F. CANNON
JASON DE BRETTEVILLE
JUSTIN N. OWENS
AARON C. HUMES
STRADLING YOCCA CARLSON &
RAUTH, P.C.
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Tel: [phone]
Fax: [phone]

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Counsel for Defendants

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Counsel for Plaintiffs

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ORDER

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DATED: 9/9/2016
Dated: ___________________________

____________________________
The Honorable Jennifer A. Dorsey
United States District Judge

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