Free Proposed Order - District Court of California - California

Case 4:07-cv-05111-CW

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1 COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP 2 SHAWN A. WILLIAMS (213113) CHRISTOPHER M. WOOD (254908) 3 100 Pine Street, Suite 2600 San Francisco, CA 94111 4 Telephone: 415/288-4545 415/288-4534 (fax) 5 [email protected] [email protected] 6 LABATON SUCHAROW LLP 7 CHRISTOPHER J. KELLER JONATHAN GARDNER 8 140 Broadway, 34th Floor New York, NY 10005 9 Telephone: 212/907-0700 212/818-0477 (fax) 10 [email protected] [email protected] 11 Co-Lead Counsel for Plaintiffs 12 [Additional counsel appear on signature page.] 13 UNITED STATES DISTRICT COURT 14 NORTHERN DISTRICT OF CALIFORNIA 15 CITY OF WESTLAND POLICE AND FIRE ) No. C 07-05111-JSW 16 RETIREMENT SYSTEM and PLYMOUTH ) COUNTY RETIREMENT SYSTEM, On ) CLASS ACTION 17 Behalf of Themselves and All Others Similarly ) Situated, ) [PROPOSED] ORDER DENYING 18 ) DEFENDANTS' SUPERSEDING MOTION Plaintiff, ) TO DISMISS THE [CORRECTED] 19 ) CONSOLIDATED CLASS ACTION vs. ) COMPLAINT 20 ) SONIC SOLUTIONS, et al., ) DATE: September 5, 2008 21 ) TIME: 9:00 a.m. Defendants. ) COURTROOM: The Honorable 22 ) Jeffrey S. White 23 24 25 26 27 28

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Defendants Sonic Solutions ("Sonic" or the "Company"), David C. Habiger, Robert J. Doris,

2 A. Clay Leighton, Mary C. Sauer, Mark Ely, Robert M. Greber, Peter J. Marguglio and R. Warren 3 Langley's Superseding Motion to Dismiss the [Corrected] Consolidated Class Action Complaint 4 pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure came on for hearing on September 5 5, 2008, at 9:00 a.m. in this Court. Counsel for plaintiffs and defendants were in attendance and 6 presented oral arguments. Having considered the parties' papers filed in support of and in 7 opposition to the motion, oral argument, and other pleadings and papers on file herein, the Court 8 finds the following: 9 1. With respect to the first cause of action for violation of §10(b) of the Securities

10 Exchange Act of 1934 (the "Exchange Act"), defendants' motion is denied. The Court finds that 11 plaintiffs have sufficiently pled facts giving rise to a "cogent and compelling" inference of scienter 12 on the part of each individual defendant, as required by Tellabs, Inc. v. Makor Issues & Rights, Ltd., 13 127 S. Ct. 2499, 2510 (2007). The Court finds that the scienter of the individual defendants is 14 imputed to the Company. See In re Hienergy Techs., Inc Sec. Litig., No.

15 SACV04-1226DOC(JTLX), 2005 WL 3071250, at * 8 (C.D. Cal. Oct. 25, 2005). The Court also 16 finds that the complaint adequately alleges that each defendant made or participated in the 17 preparation of the challenged statements. Finally, the Court finds that the complaint has sufficiently 18 alleged that all defendants participated in a scheme to defraud in violation of Rule 10b-5(a) and (c). 19 2. With respect to the second cause of action for violation of §14(a), defendants' motion

20 is denied as to the Company's 2005 Proxy Statement. Plaintiffs' claim is timely as to the 21 Company's 2005 Proxy Statement. Plaintiffs have also adequately alleged the 2005 Proxy Statement 22 contained a material misrepresentation, which was a direct link to the transaction voted on in the 23 proxy statement (namely the re-election of the board of directors and their continuation of the option 24 backdating) and that plaintiffs and the class were damaged. See In re Zoran Derivative Litig., 511 F. 25 Supp. 2d 986 (N.D. Cal. 2007). 26 3. With respect to the third cause of action for violation of §20(a) of the Exchange Act,

27 defendants' motion is denied with respect to each individual defendant. The complaint alleges a 28
[PROPOSED] ORDER DENYING DEFENDANTS' SUPERSEDING MOTION TO DISMISS THE [CORRECTED] CONSOLIDATED CLASS ACTION COMPLAINT - C 07-05111-JSW

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1 predicate violation of the securities law (namely a predicate violation by the Company of §10(b)) 2 and that each individual defendant by virtue of their positions at the Company is a control person. 3 4. With respect to the fourth cause of action for violation of §20A of the Exchange Act,

4 defendants' motion is denied. The Complaint alleges a predicate violation of the federal securities 5 law (namely a predicate violation of §10(b)). In addition, plaintiffs have alleged that they (as well as 6 numerous class members) purchased Sonic securities contemporaneously with the sales of 7 defendants Robert J. Doris, Mary C. Sauer, Mark Ely, A. Clay Leighton, Peter J. Marguglio, R. 8 Warren Langley and Robert M. Greber. This is sufficient to allege a §20A violation as to each such 9 defendant. See Middlesex Ret. Sys. v. Quest Software Inc., 527 F. Supp. 2d 1164 (C.D. Cal. 2007). 10 11 12 13 IT IS SO ORDERED. ____________________________________ THE HONORABLE JEFFREY S. WHITE UNITED STATES DISTRICT JUDGE IT IS THEREFORE ORDERED that defendants' motion to dismiss is denied. * * ORDER *

14 DATED: _________________________ 15 16 Submitted by: 17 DATED: July 18, 2008 18 COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP SHAWN A. WILLIAMS 20 CHRISTOPHER M. WOOD 19 21 22 23 100 Pine Street, 26th Floor 24 San Francisco, CA 94111 Telephone: 415/288-4545 25 415/288-4534 (fax) 26 27 28 /s/ SHAWN A. WILLIAMS

[PROPOSED] ORDER DENYING DEFENDANTS' SUPERSEDING MOTION TO DISMISS THE [CORRECTED] CONSOLIDATED CLASS ACTION COMPLAINT - C 07-05111-JSW

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1 LABATON SUCHAROW LLP 2 CHRISTOPHER J. KELLER JONATHAN GARDNER 3 140 Broadway, 34th Floor New York, NY 10005 4 Telephone: 212/907-0700 212/818-0477 (fax) 5 Co-Lead Counsel for Plaintiffs 6 VANOVERBEKE MICHAUD 7 & TIMMONY, P.C. MICHAEL J. VANOVERBEKE 8 THOMAS C. MICHAUD 79 Alfred Street 9 Detroit, MI 48201 Telephone: 313/578-1200 10 313/578-1201 (fax) 11 Additional Counsel for Plaintiff 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
[PROPOSED] ORDER DENYING DEFENDANTS' SUPERSEDING MOTION TO DISMISS THE [CORRECTED] CONSOLIDATED CLASS ACTION COMPLAINT - C 07-05111-JSW
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CERTIFICATE OF SERVICE I hereby certify that on July 18, 2008, I electronically filed the foregoing with the Clerk of

3 the Court using the CM/ECF system which will send notification of such filing to the e-mail 4 addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I have 5 mailed the foregoing document or paper via the United States Postal Service to the non-CM/ECF 6 participants indicated on the attached Manual Notice List. 7 I certify under penalty of perjury under the laws of the United States of America that the

8 foregoing is true and correct. Executed on July 18, 2008. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
[PROPOSED] ORDER DENYING DEFENDANTS' SUPERSEDING MOTION TO DISMISS THE [CORRECTED] CONSOLIDATED CLASS ACTION COMPLAINT - C 07-05111-JSW

s/ Shawn A. Williams SHAWN A. WILLIAMS COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP 100 Pine Street, 26th Floor San Francisco, CA 94111 Telephone: 415/288-4545 415/288-4534 (fax) E-mail:[email protected]

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CAND-ECF

https://ecf.cand.uscourts.gov/cgi-bin/MailList.pl?372101145942951-L_4...

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Mailing Information for a Case 3:07-cv-05111-JSW
Electronic Mail Notice List
The following are those who are currently on the list to receive e-mail notices for this case. Ramzi Abadou [email protected],[email protected] Sara B. Brody [email protected],[email protected],[email protected],[email protected],[email protected],Ce Jonathan Gardner [email protected] John K. Grant [email protected],[email protected],[email protected],[email protected],[email protected],[email protected] Monica Patel [email protected] Darren Jay Robbins [email protected] Shawn A. Williams [email protected],[email protected],[email protected],[email protected],[email protected],[email protected]

Manual Notice List
The following is the list of attorneys who are not on the list to receive e-mail notices for this case (who therefore require manual noticing). You may wish to use your mouse to select and copy this list into your word processing program in order to create notices or labels for these recipients.
Catherine J Kowalewski Lerach Coughlin et al LLP 655 W Broadway #1900 San Diego, CA 92101 David C. Walton Lerach Coughlin Stoia Geller Rudman & Robbins LLP 655 West Broadway Suite 1900 San Diego, CA 92101-3301

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