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Keywords & Phrases
CaseNo: NT88895, CourtName: CLASS ACTION CASES, State: CA California, UniqueCaseRef: LCD>NT88895, Bay, Bay Networks, Complaint, Motion, Facts, Market, Allegations, Stock, Entry, Ludwick, Reform Act, Misleading, Class Period, Securities, Sac, Allege, Cir, Material Adverse, Supp, Sales, Annual Report, Product Development, Amended Complaint, California, Dismiss, Technology, Class Action, Materials, Muck, Pslra, Management, Standard, Plead, Insider Defendants, Florida, Scienter, Bay Stock, Materially False, Securities Litigation, Representations, Act, Omissions, Switching, Comp , ContentID: 120246228

Case Documents
1   PROPOSED ORDER GRANTING MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 114596
2 pages
PDF
2   PROOF OF SERVICE RE DEFENDANTS MOTION
[ see first page and extracted highlights below  ] ItemID: 114595
3 pages
PDF
3   DEFENDANTS MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 114581
27 pages
PDF
4   DECLARATION OF KEVIN M PRONGAY IN OPPOSITION TO DEFENDANTS MOTION
[ see first page and extracted highlights below  ] ItemID: 114580
3 pages
PDF
5   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114574
14 pages
PDF
6   CLASS ACTION COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114573
88 pages
PDF
7 1999-01-20 DOCKET C
[ see first page and extracted highlights below  ] ItemID: 114589
6 pages
PDF
8 1999-01-20 DOCKET B
[ see first page and extracted highlights below  ] ItemID: 114588
3 pages
PDF
9 1999-01-20 DOCKET A
[ see first page and extracted highlights below  ] ItemID: 114587
3 pages
PDF
10 1999-01-14 CIVIL DOCKET FOR CASE 97-CV-728
[ see first page and extracted highlights below  ] ItemID: 114572
19 pages
PDF
11 1998-06-12 REPLY MEMO IN SUPPORT OF DEFENDANTS MOTION
[ see first page and extracted highlights below  ] ItemID: 114586
17 pages
PDF
12 1998-06-03 PLAINTIFFS MEMO IN OPPOSITION OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 114592
38 pages
PDF
13 1998-05-04 DEFENDANTS MOTION TO DISMISS 2ND AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114582
28 pages
PDF
14 1997-11-21 DEFENDANTS REPLY BRIEF
[ see first page and extracted highlights below  ] ItemID: 114585
5 pages
PDF
15 1997-11-21 DEFENDANTS RE BRIEF IN SUPPORT OF MOTION TO CONSOLIDATE
[ see first page and extracted highlights below  ] ItemID: 114584
5 pages
PDF
16 1997-11-17 DECLARATION OF I WALTON BADER
[ see first page and extracted highlights below  ] ItemID: 114577
4 pages
PDF
17 1997-11-17 AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114571
56 pages
PDF
18 1997-11-14 PLAINTIFFS REQUEST TO TAKE JUDICIAL NOTICE IN OPPOSITION TO MOTION
[ see first page and extracted highlights below  ] ItemID: 114594
3 pages
PDF
19 1997-11-14 PLAINTIFFS MEMO IN OPPOSITION TO MOTION
[ see first page and extracted highlights below  ] ItemID: 114593
26 pages
PDF
20 1997-11-14 MOTION TO DISMISS COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114591
30 pages
PDF
21 1997-11-14 MOTION FOR CLASS CERTIFICATION
[ see first page and extracted highlights below  ] ItemID: 114590
20 pages
PDF
22 1997-11-14 DECLARATION OF JOSEPH J TABACCO JR IN SUPPORT MOTION
[ see first page and extracted highlights below  ] ItemID: 114579
3 pages
PDF
23 1997-11-14 DECLARATION OF JOSEPH J TABACCO IN OPPOSITION TO DEFENDANTS MOTION
[ see first page and extracted highlights below  ] ItemID: 114578
3 pages
PDF
24 1997-09-26 DEFENDANTS MOTION TO DISMISS AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114583
28 pages
PDF
25 1997-06-24 COMPLAINT B
[ see first page and extracted highlights below  ] ItemID: 114575
48 pages
PDF
26 1997-02-28 COMPLAINT FILED
[ see first page and extracted highlights below  ] ItemID: 114576
81 pages
PDF
Total Documents: 26 documents , 563 pages
Price: $ 144.95


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1 . PROPOSED ORDER GRANTING MOTION TO DISMISS

EXTRACTED KEY WORDS
DEFENDANTS
PAUL
BAY NETWORKS
ANDREW
LUDWICK
SEVERINO
WILLIAM
RUEHLE
RONALD
SCHMIDT
JEFFRY
DOMINIC ORR
VITO
PALERMO
STEPHEN CHEHEYL
BRUCE
SACHS
UNITED STATES DISTRICT
MOTION
DISMISS
TOWER
BROBECK
PHLEGER
HARRISON LLP
COURT
COMPLAINT
ENTIRETY
PREJUDICE
STATES DISTRICT JUDGE


TOWER C. SNOW, JR. (State Bar No. 58342)
KEVIN P. MUCK (State Bar No. 120918)
LISA J. MORELLI (State Bar No. 137092)
JANE ROWEN (State Bar No. 162455)
BROBECK, PHLEGER & HARRISON LLP
One Market, Spear Street Tower
San Francisco, CA 94105
Telephone: (415) 442-0900

MEREDITH N. LANDY (State Bar No. 136489)
BROBECK, PHLEGER & HARRISON LLP
Two Embarcadero Place, 2200 Geng Road
Palo Alto, CA 94303
Telephone: (415) 424-0160

Attorneys for Defendants
Bay Networks, Inc., Andrew K. Ludwick, Paul J. Severino,
William J. Ruehle, Ronald V. Schmidt, Jeffry R. Allen,
Gary J. Bowen, Dominic Orr, Vito E. Palermo,
R. Stephen Cheheyl and Bruce I. Sachs

                         UNITED STATES DISTRICT COURT
                        NORTHERN DISTRICT OF CALIFORNIA

                          PAUL BERGER and JOHN QUERCI,
                              On Behalf of Themselves and
                              All Others Similarly Situated,
                                          Plaintiffs,

                                             vs.

                   ANDREW K. LUDWICK, PAUL J. SEVERINO,
                   WILLIAM J. RUEHLE, RONALD V. SCHMIDT,
               JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC ORR,
                    VITO E. PALERMO, R. STEPHEN CHEHEYL,
                   BRUCE I. SACHS and BAY NETWORKS, INC.,
                                       Defendants.

                                   No. C-97-0728-PJH

                                    CLASS ACTION

     [PROPOSED] ORDER GRANTING DEFENDANTS' MOTION TO
                              DISMISS COMPLAINT

The motion of defendants Bay Networks, Inc., Andrew K. Ludwick, Paul J. Severino,
SNIPPETS:
  • KEVIN P. MUCK (State Bar No. 120918) LISA J. MORELLI JANE ROWEN
  • BROBECK, PHLEGER & HARRISON LLP
  • One Market, Spear Street Tower
  • UNITED STATES DISTRICT COURT
  • PAUL BERGER and JOHN QUERCI,
  • ANDREW K. LUDWICK, PAUL J. SEVERINO,
  • WILLIAM J. RUEHLE, RONALD V. SCHMIDT,
  • JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC ORR,
  • VITO E. PALERMO, R. STEPHEN CHEHEYL,
  • BRUCE I. SACHS and BAY NETWORKS, INC.,
  • ORDER GRANTING DEFENDANTS' MOTION TO
  • The Court, having fully considered the papers filed by the parties and the argument of
  • IT IS HEREBY ORDERED THAT defendants' motion to dismiss is granted, and the Complaint herein
  • United States District Judge

  • 2 . PROOF OF SERVICE RE DEFENDANTS MOTION

    EXTRACTED KEY WORDS
    SAN FRANCISCO
    MOTION
    STATE BAR
    BROBECK
    PHLEGER
    HARRISON LLP
    DEFENDANTS
    DISMISS
    SPEAR STREET TOWER
    PAUL
    BUSINESS
    DISMISS COMPLAINT
    DECLARATION
    PRACTICE
    SCHMIDT
    JEFFRY
    DOMINIC ORR
    VITO
    PALERMO
    STEPHEN CHEHEYL
    BRUCE
    SACHS
    UNITED STATES
    DISTRICT
    SUPPORT
    THEREOF
    MAILING
    LAW
    CORRESPONDENCE
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    LISA J. MORELLI (State Bar No. 137092)
    JANE ROWEN (State Bar No. 162455)
    BROBECK, PHLEGER & HARRISON LLP
    One Market, Spear Street Tower
    San Francisco, CA 94105
    Telephone: (415) 442-0900
    
    MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place, 2200 Geng Road
    Palo Alto, CA 94303
    Telephone: (415) 424-0160
    
    Attorneys for Defendants
    Bay Networks, Inc., Andrew K. Ludwick, Paul J. Severino,
    William J. Ruehle, Ronald V. Schmidt, Jeffry R. Allen,
    Gary J. Bowen, Dominic Orr, Vito E. Palermo,
    R. Stephen Cheheyl and Bruce I. Sachs
    
                             UNITED STATES DISTRICT COURT
                            NORTHERN DISTRICT OF CALIFORNIA
    
                              PAUL BERGER and JOHN QUERCI,
                                  On Behalf of Themselves and
                                  All Others Similarly Situated,
                                              Plaintiffs,
    
                                                 vs.
    
                       ANDREW K. LUDWICK, PAUL J. SEVERINO,
                       WILLIAM J. RUEHLE, RONALD V. SCHMIDT,
                  JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC ORR,
                       VITO E. PALERMO, R. STEPHEN CHEHEYL,
                       BRUCE I. SACHS and BAY NETWORKS, INC.,
                                           Defendants.
    
                                       No. C-97-0728-PJH
    
                                        CLASS ACTION
    
         PROOF OF SERVICE RE DEFENDANTS' MOTION TO DISMISS
                                        COMPLAINT
                                    Date: To Be Determined
                                    Time: To Be Determined
    
    SNIPPETS:
  • KEVIN P. MUCK (State Bar No. 120918) LISA J. MORELLI JANE ROWEN
  • BROBECK, PHLEGER & HARRISON LLP
  • NORTHERN DISTRICT OF CALIFORNIA
  • PAUL BERGER and JOHN QUERCI,
  • WILLIAM J. RUEHLE, RONALD V. SCHMIDT,
  • JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC ORR,
  • VITO E. PALERMO, R. STEPHEN CHEHEYL,
  • BRUCE I. SACHS and BAY NETWORKS, INC.,
  • PROOF OF SERVICE RE DEFENDANTS' MOTION TO DISMISS
  • I am employed in the City and County of San Francisco, State of California.
  • My business address is Brobeck, Phleger & Harrison LLP, Spear Street Tower, One Market, San
  • DEFENDANTS' NOTICE OF MOTION AND MOTION TO DISMISS COMPLAINT; MEMORANDUM OF POINTS AND
  • DECLARATION OF KEVIN P. MUCK IN SUPPORT OF DEFENDANTS' MOTION TO DISMISS COMPLAINT
  • on the partyin this action by placing a true copy thereof in a sealed envelopeaddressed as
  • I placed the sealed envelopefor collection and mailing, or in the case of the Stanford Law
  • I am readily familiar with Brobeck, Phleger & Harrison LLP's practice for collecting and
  • correspondence is deposited in the United States Postal Service the same day as it is placed
  • I declare under penalty of perjury under the laws of the State of California that the

  • 3 . DEFENDANTS MOTION TO DISMISS

    EXTRACTED KEY WORDS
    BAY NETWORKS
    COURT
    PLAINTIFFS
    MARKET
    FACTS
    MUCK
    LUDWICK
    SECURITIES LITIGATION
    REFORM ACT
    COMP
    COMPLAINT
    SEVERINO
    CIR
    ALLEGE
    SCIENTER
    ALLEGATIONS
    DOMINIC ORR
    STEPHEN CHEHEYL
    SECOND CIRCUIT
    CLASS PERIOD
    ALLEGED OMISSIONS
    SECURITIES LAWS
    MISLEADING
    COMPETITION
    PLEADING REQUIREMENTS
    DEVELOPMENTAL PROBLEMS
    SAFE HARBOR
    TECHNOLOGY
    INDIVIDUAL DEFENDANTS
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    LISA J. MORELLI (State Bar No. 137092)
    JANE ROWEN (State Bar No. 162455)
    BROBECK, PHLEGER & HARRISON LLP
    One Market, Spear Street Tower
    San Francisco, CA 94105
    Telephone: (415) 442-0900
    
    MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place, 2200 Geng Road
    Palo Alto, CA 94303
    Telephone: (415) 424-0160
    
    Attorneys for Defendants
    Bay Networks, Inc., Andrew K. Ludwick, Paul J. Severino,
    William J. Ruehle, Ronald V. Schmidt, Jeffry R. Allen,
    Gary J. Bowen, Dominic Orr, Vito E. Palermo,
    R. Stephen Cheheyl and Bruce I. Sachs
    
                             UNITED STATES DISTRICT COURT
                            NORTHERN DISTRICT OF CALIFORNIA
    
                              PAUL BERGER and JOHN QUERCI,
                                  On Behalf of Themselves and
                                  All Others Similarly Situated,
                                              Plaintiffs,
    
                                                 vs.
    
                       ANDREW K. LUDWICK, PAUL J. SEVERINO,
                       WILLIAM J. RUEHLE, RONALD V. SCHMIDT,
                  JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC ORR,
                       VITO E. PALERMO, R. STEPHEN CHEHEYL,
                       BRUCE I. SACHS and BAY NETWORKS, INC.,
                                           Defendants.
    
                                       No. C-97-0728-PJH
    
                                        CLASS ACTION
    
         DEFENDANTS' NOTICE OF MOTION AND MOTION TO DISMISS
         COMPLAINT; MEMORANDUM OF POINTS AND AUTHORITIES IN
                        SUPPORT OF MOTION TO DISMISS
    
    
    SNIPPETS:
  • Attorneys for Defendants
  • UNITED STATES DISTRICT COURT
  • ANDREW K. LUDWICK, PAUL J. SEVERINO,
  • JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC ORR,
  • VITO E. PALERMO, R. STEPHEN CHEHEYL,
  • BRUCE I. SACHS and BAY NETWORKS, INC.,
  • THE REFORM ACT AND THE LEGAL STANDARDS FOR A MOTION TO DISMISS
  • PLAINTIFFS HAVE FAILED TO ALLEGE ADEQUATELY THAT DEFENDANTS MADE ANY ACTIONABLE
  • Plaintiffs' Case Rests on Alleged Omissions Which, As a Matter of Law, Cannot Support a Claim
  • No Duty to Disclose Effects of Competition on Products
  • THE COMPLAINT DOES NOT CONTAIN FACTS ESTABLISHING A STRONG INFERENCE OF SCIENTER
  • PLAINTIFFS HAVE FAILED TO ALLEGE FACTS SUFFICIENT TO ESTABLISH THAT THE INDIVIDUAL DEFENDANTS
  • 90 F.3d 617 (1st Cir.
  • In re Convergent Technologies Securities Litigation,
  • President's Message to the House of Representatives Returning Without Approval the Private
  • Defendants' motion is based upon this Notice, the following Memorandum of Points and
  • Perhaps the only significant deviation from the classic "fraud by hindsight" formula is that
  • Congress and the federal courts have become increasingly skeptical of securities lawsuits
  • The securities laws are not intended to punish companies or their officers when they stumble
  • With the passage of the Private Securities Litigation Reform Act of 1995, Congress
  • Armed with little more than some stock sales and a few vague statements about the Company's
  • As discussed in detail below, the Complaint is deficient as a matter of law, and does not
  • the Reform Act creates a "safe harbor" for forward-looking statements.
  • Although Congress borrowed the "strong inference" standard from the Second Circuit, noting
  • No Duty to Disclose Technical or Developmental Problems

  • 4 . DECLARATION OF KEVIN M PRONGAY IN OPPOSITION TO DEFENDANTS MOTION

    EXTRACTED KEY WORDS
    HERETO
    EXHIBIT
    ANNUAL REPORT
    PRONGAY
    DOWNLOADING
    WEBSITE
    ADVERTISES
    TABACCO
    KEVIN
    BORDERUD
    ZWERLING
    DECLARE
    BAY NETWORKS ETHERNET
    EXCERPTS
    JOSEPH
    BERMAN
    DEVALERIO
    PEASE
    SUITE
    COUNSEL
    SCHACHTER
    YORK
    ATTORNEYS
    PLAINTIFFS
    COURT
    CALIFORNIA
    LAW
    NETWORKS ETHERNET LATTISSWITCH
    BACKBONE LAN ENVIRONMENTS
    
    
    
    JOSEPH J. TABACCO, JR. (75484)
    CHRISTOPHER T. HEFFELFINGER (118058)
    BERMAN DeVALERIO
    PEASE & TABACCO
    425 California Street
    Suite 2025
    San Francisco, CA 94104
    Telephone: (415) 433-3200
     KEVIN M. PRONGAY (87010)
    JON W. BORDERUD (134355)
    MICHAEL E. O'KEEFE, Of Counsel
    PRONGAY & BORDERUD
    881 Alma Real Drive, Suite 211
    Pacific Palisades, CA 90272
    Telephone: (310) 573-3600
     ROBERT S. SCHACHTER
    JEFFREY C. ZWERLING
    JOSEPH LIPOFSKY
    ZWERLING, SCHACHTER & ZWERLING LLP
    767 Third Avenue
    New York, New York 10017
    Telephone: (212) 223-3900
     Attorneys for Plaintiffs
    
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    
    PAUL BERGER, and JOHN QUERCI, On                         |  CASE NO. C 97-0728 CAL
    Behalf of Themselves and All Others Similarly  |
    Situated,                                                |  CLASS ACTION
                                                             |
                          Plaintiffs,                        |
                                                             |
               vs.                                           |  DECLARATION OF KEVIN M.
                                                             |  PRONGAY IN OPPOSITION TO
    ANDREW K. LUDWICK, PAUL J.                               |  DEFENDANTS' MOTION TO
    SEVERINO, WILLIAM J. RUEHLE,                             |  DISMISS AMENDED
    RONALD V. SCHMIDT, JEFFRY R. ALLEN,  |  COMPLAINT
    GARY J. BOWEN, DOMINIC ORR, VITO E.                      |
    
    
    
    
    
    SNIPPETS:
  • JOSEPH J. TABACCO, JR.
  • Suite 2025 San Francisco,
  • PRONGAY & BORDERUD
  • ROBERT S. SCHACHTER JEFFREY C. ZWERLING JOSEPH LIPOFSKY ZWERLING,
  • New York, New York 10017 Telephone: 223-3900 Attorneys for Plaintiffs
  • DECLARATION OF KEVIN M. PRONGAY
  • I am an attorney duly admitted to practice before this Court and all courts of the states of
  • I am associated with the law firm of PRONGAY & BORDERUD, counsel of record for plaintiffs in
  • Attached hereto as Exhibit 1 is a true and correct copy of an article published in the May 6,
  • Attached hereto as Exhibit 2 is a true and correct copy of a document published by Bay
  • Attached hereto as Exhibit 3 is a true and correct copy of a press release dated May 1, 1995,
  • Attached hereto as Exhibit 4 is a true and correct copy of a press release dated July 13,
  • Attached hereto as Exhibit 7 is a true and correct copy of excerpts from Bay Networks,
  • I declare under penalty of perjury under the laws of the United States of America that the
  • ftp file from Berman, DeValerio, Pease & Tabacco

  • 5 . COMPLAINT

    EXTRACTED KEY WORDS
    PLAINTIFFS
    SECURITIES
    ACT
    CLASS ACTION
    VIOLATION
    NORTEL
    REGISTRATION STATEMENT
    YORK
    JOHN
    ROTH
    STOCK
    BAY NETWORKS
    PROSPECTUS
    SCOTT
    FEDERAL SECURITIES LAWS
    CLASS ACTION COMPLAINT
    NORTHERN TELECOM
    CIVIL ACTION
    ATTORNEYS
    COMMON STOCK
    REVENUE GROWTH
    UNITED STATES
    STATES DISTRICT COURT
    COMMON STOCK PURSUANT
    GARY SCIBELLI
    MARK LEONARDO
    PETER GOTTLIEB
    SUSAN GREENEWAY
    CONSOLIDATED AMENDED CLASS
    
    
    
    UNITED STATES DISTRICT COURT
    
    SOUTHERN DISTRICT OF NEW YORK
     -------------------------------------------------------
    GARY SCIBELLI, On Behalf of Himself and All Others Similarly Situated,
    
    Plaintiffs,
    
    v.
    
    JOHN A. ROTH; C. WES M. SCOTT and
    
    NORTHERN TELECOM LTD.,
    
    Defendants.
    
    ------------------------------------------------------
    
    Civil Action No. 98CIV7228
    
    GEORGE L. LORD, on behalf of Himself and All Others Similarly Situated,
    
    Plaintiffs,
    
    v.
    
    JOHN A ROTH; C. WES M. SCOTT and NORTHERN TELECOM LTD.,
    
    Defendants.
    
    -------------------------------------------------------
    
    x
    
    Civil Action No. 98CIV8143
    
    MARK LEONARDO, PETER GOTTLIEB and SUSAN GREENEWAY, on behalf of
    themselves and all others similarly situated,
     Plaintiffs,
    v.
    
    JOHN A. ROTH, C. WES M. SCOTT and
    
    NORTHERN TELECOM LTD.,
    
    Defendants.
    
    SNIPPETS:
  • UNITED STATES DISTRICT COURT
  • GARY SCIBELLI, On Behalf of Himself and All Others Similarly Situated,
  • Plaintiffs,
  • Defendants.
  • Civil Action No. 98CIV7228
  • JOHN A ROTH; C. WES M. SCOTT and NORTHERN TELECOM LTD.,
  • MARK LEONARDO, PETER GOTTLIEB and SUSAN GREENEWAY, on behalf of themselves and all others
  • CONSOLIDATED AMENDED CLASS ACTION COMPLAINT
  • Plaintiffs, individually and on behalf of persons similarly situated, by their undersigned orthern Telecom, Ltd. and Bay Networks, Inc. as follows:
  • Section 22 of the Securities Act of 1933,
  • persons whose shares of Bay Networks stock or Bay Networks stock options
  • were exchanged for Nortel common stock in a merger between Nortel and Bay
  • 1998 (the "Registration Statement and Prospectus").
  • As set forth below, the Registration Statement and Prospectus omitted material facts and was
  • Plaintiffs bring this action against defendants to recover damages caused by these violations
  • Nortel trades on the New York Stock Exchange.
  • Nortel has 24,500 employees in more than 100 locations across the United States.
  • Plaintiffs bring this action as a class action pursuant to Rule 23 of the Federal Rules of
  • its business and revenue growth and that the decline was so severe that it would

  • 6 . CLASS ACTION COMPLAINT

    EXTRACTED KEY WORDS
    DEFENDANTS
    BAY NETWORKS
    PLAINTIFF
    BAY STOCK
    MISLEADING
    MATERIALS
    CLASS PERIOD
    MARKET
    INFLATED PRICE
    DEMAND
    PRODUCT DEVELOPMENT
    PLANS
    REPORTS
    SALES
    MERGER
    SECURITIES
    REPRESENTATIONS
    INSIDER DEFENDANTS
    CALIFORNIA
    LATTISSWITCH
    MATERIAL ADVERSE
    EXECUTIVE COMMITTEE
    SUCCESSFUL
    MANUFACTURING
    MANAGEMENT
    TECHNOLOGY
    FAST ETHERNET
    LATE-TO-MARKET
    ANNUAL REPORT
    
     JOSEPH J. TABACCO, JR. (75484)
    CHRISTOPHER T. HEFFELFINGER (118058)
    BERMAN, DeVALERIO, PEASE & TABACCO
    425 California Street, Suite 2025
    San Francisco, CA 94104
    Telephone: (415) 433-3200
    
    KEVIN M. PRONGAY (87010)                     JEFFREY C. ZWERLING
    JON W. BORDERUD (134355)                     JOSEPH LIPOFSKY
    MICHAEL E. O'KEEFE, Of Counsel               OREN GISKAN
    PRONGAY & BORDERUD                           ZWERLING, SCHACHTER
    881 Alma Real Drive, Suite 211                  & ZWERLING, LLP
    Pacific Palisades, CA 90272                 767 Third Avenue
    Telephone: (310) 573-3600                    New York, NY 10017
                                                 Telephone: (212) 223-3900
    
    
    [Additional counsel appear on signature page]
    
    Attorneys for Plaintiffs
    
                          UNITED STATES DISTRICT COURT
    
                       NORTHERN DISTRICT OF CALIFORNIA
    
    
    PAUL BERGER, JOHN QUERCI, ROBERT      )     CASE NO. C-97-0728-CAL
    MASON, RONALD AND JUDITH HUGHES,      )
    MIN RU, CHRISTOPHER FLYNN, CAL        )     CLASS ACTION
    MELAND, BARRY WOLINSKY, JOHN          )
    DRAKE, BRADLEY PERNA, JASON           )     AMENDED CLASS ACTION
    MENDENHALL, THOMAS JOHNSTON,          )     COMPLAINT FOR VIOLATION
    KENNETH GRIFFIN, MARC A. TOPAZ,       )     OF SECTIONS 10(b)AND
    LUIS SAN ANDRES, ALAN TRESKI,         )     20(a) OF THE SECURITIES
    DAVID M. KAMMERER, MICHAEL A.         )     EXCHANGE ACT AND RESTATED
    INGENITO, KYNA SAH, CHINHI SONG,      )     JURY DEMAND
    JONG E. LEE, FONG OU, SUSAN           )
    BLACK, and ROBERT BORTNER, II, On )
    Behalf of Themselves and All          )     Plaintiffs Demand A Trial
    Others Similarly Situated,            )     By Jury
                                          )
                   Plaintiffs,            ))
    vs.                                   ))
    ANDREW K. LUDWICK, PAUL J.            )
    SEVERINO, WILLIAM J. RUEHLE,          )
    RONALD V. SCHMIDT, JEFFRY R.          )
    ALLEN, GARY J. BOWEN, DOMINIC         )
    ORR, R. STEPHEN CHEHEYL and BAY       )
    NETWORKS, INC.,                       ))
    
    SNIPPETS:
  • NORTHERN DISTRICT OF CALIFORNIA
  • R. STEPHEN CHEHEYL and BAY)
  • Securities and Exchange Commission and security analyst
  • reports and advisories about Bay, press releases issued by Bay, rating
  • other than defendants, who purchased or otherwise acquired the stock
  • deceit on all persons who purchased or otherwise acquired Bay stock.
  • manipulative acts and the making of a series of misleading public
  • Bay was formed on October 21, 1994, through the merger of two
  • Throughout the Class Period, Bay stated that the Merger created a
  • stock market analysts who had been following SynOptics and Wellfleet
  • in part, responsible for the material product delays, manufacturing
  • shakeup in Bay's top management.
  • that:the Merger was not successful;
  • delivering on its new product development plans or marketing plans;
  • Defendants' representations about the success of the merger,
  • and enabled many of the Insider Defendants to sell
  • While in possession of the undisclosed material adverse
  • the price of Bay Networks stock fell to as low as $18 5/8 per
  • for the 1995 and 1996 fiscal years (the "1995 Annual Report" and "1996
  • Bay's Executive Committee.
  • LattisSwitch 28115 and was aware that Bay had issued materially
  • activities, its sales and marketing plans, sales reports and inventory reports.
  • availability dates were materially misleading because Bay was late-to-market and behind in
  • artificially inflated price for such securities at the time of
  • Plaintiff John Querci purchased 1,000 shares of Bay
  • Technology, Inc.
  • By artificially increasing the demand for Bay's stock,
  • 28115 Fast Ethernet switch,

  • 7 . DOCKET C

    EXTRACTED KEY WORDS
    NTC
    PLAINTIFFS
    DOCMT
    ENTRY
    JAMES
    BASHIAN
    MOTION
    DOCKET
    YORK
    SUITE
    PRONGAY
    DEFENDANT
    ORIGINAL DOCMT DKTD
    DOCMT DKTD
    DJC
    TAYLOR
    ISQUITH
    TERRELL OXFORD
    FREDERICK
    FOX
    BURTON
    FINKELSTEIN
    MILA
    BARTOS
    SUSAN
    GREENEWAY
    PROPOSED LEAD PLAINTIFFS
    COUNSEL
    CONSOLIDATION
    
    
    
    Docket as of January 20, 1999 [retrieved 1/23/99]
    
    Proceedings include all events.
    REL
    1:98cv8798           Leonardo, et al v. Roth, et al
                                                                                    1:98cv
    7228
                                                                          REL
    1:98cv
                                                                          7228
                                  U.S. District Court
         Southern District of New York - Civil Database (Foley Square)
    
                          CIVIL DOCKET FOR CASE #: 98-CV-8798
    
    Leonardo, et al v. Roth, et al                                        Filed:
    12/11/98
    Assigned to: Judge Harold Baer, Jr.
    Demand: $0,000                                         Nature of Suit: 850
    Lead Docket: None                                      Jurisdiction: Federal
    Question
    Dkt# in other court: None
    
    Cause: 15:77 Securities Fraud
    
    
    MARK LEONARDO                            James V. Bashian
            plaintiff                        [COR LD NTC]
                                             The Law Offices of James V.
                                             Bashian, P.C.
                                             500 Fifth Avenue
                                             Suite 2800
                                             New York, NY 10110
                                             (212) 921-4110
    
                                             Frederick F. Fox
                                             [COR LD NTC]
                                             Kaplan, Kilsheimer & Fox
                                             685 Third Avenue
                                             26th Floor
                                             New York, NY 10016
                                             (212) 687-1980
    
                                             Burton H. Finkelstein
                                             [COR LD NTC]
                                             Mila F. Bartos
    
    SNIPPETS:
  • Docket as of January 20,
  • Southern District of New York - Civil Database
  • [COR LD NTC]
  • Suite 669
  • Law Offices of James Bashian
  • Prongay & Borderud
  • Fred Taylor Isquith
  • Burton H. Finkelstein
  • SUSAN GREENEWAY, on behalf of James V. Bashian
  • ruling on the plaintiffs' motion in the event the motion is
  • Original docmt dktd in case
  • docmt #6 (djc)
  • approval of the proposed lead plaintiffs'
  • selection of counsel and consolidation of related cases.
  • Original docmt dktd in case no. 98 cv 7228,
  • [Entry date 12/17/98]
  • Terrell Oxford, Kevin M. Prongay, Oren S. Giskan, James
  • Bashian, D. Joshua Staub, Mila F. Bartos, Burton H.
  • Finkelstein, Frederick F. Fox, Michael Jaffe, Fred Taylor

  • 8 . DOCKET B

    EXTRACTED KEY WORDS
    PLAINTIFFS
    DOCMT
    MOTION
    LEAD PLAINTIFFS
    DEFENDANT
    DOCKET
    DOCMT DKTD
    DJC
    CIVIL
    COURT
    JUDGE
    GEORGE
    LORD
    APPOINTMENT
    PROPOSED LEAD
    COUNSEL
    CONSOLIDATION
    ORIGINAL DOCMT DKTD
    JUDGE BAER
    MEMORANDUM
    LAW
    SUPPORT
    SELECTION
    STIPULATION
    MATTER
    RULING
    PARTIES
    WHITMAN KNAPP
    ORIG
    
    
    
    Docket as of January 20, 1999 [retrieved 1/23/99]
    
    Proceedings include all events.                                                         REF
    1:98cv8143               Lord v. Roth, et al
    
                                                                                  REF
                                      U.S. District Court
         Southern District of New York - Civil Database (Foley Square)
    
                              CIVIL DOCKET FOR CASE #: 98-CV-8143
    
    Lord v. Roth, et al                                                           Filed:
    11/16/98
    Assigned to: Judge Unassigned                                  Jury demand: Plaintiff
    Demand: $0,000                                                 Nature of Suit: 850
    Lead Docket: None                                              Jurisdiction: Federal
    Question
    Dkt# in other court: None
    
    Cause: 15:77 Securities Fraud
    
    
    GEORGE L. LORD, on behalf of                    Jules Brody
    Himself and All Others                          [COR LD NTC]
    Similarly Situated                              Aaron Lee Brody
                plaintiff                           [COR LD NTC]
                                                    Stull, Stull & Brody
                                                    6 East 45th Street
                                                    New York, NY 10017
                                                    (212) 687-7230
    
                                                    Tzivia Brody
                                                    [COR LD NTC]
                                                    Stull, Stull & Brody
                                                    6 East 45th Street
                                                    New York, NY 10165
                                                    (212) 687-7230
    
    
          v.
    
    
    JOHN A. ROTH
                defendant
    
    
    
    SNIPPETS:
  • Docket as of January 20,
  • Southern District of New York - Civil Database
  • Dkt# in other court: None
  • 11/16/98 -- CASE REFERRED TO Judge Baer [Entry date 11/17/98]
  • 12/14/98 -- MEMORANDUM of LAW by George L. Lord in support of motion
  • for appointment of lead plaintiffs,
  • proposed lead plaintiffs' selection of counsel,
  • Original docmt dktd in case
  • appointment of lead plaintiffs, approval of proposed lead
  • plaintiffs' lead counsel and consolidation of related
  • Original docmt dktd in case no. 98
  • 1/14/99 -- STIPULATION and ORDER, that the time for the defendants to
  • appear in this matter, or to move, answer or otherwise
  • ruling on the plaintiffs' motion in the event the motion is
  • or such time as the Court orders or the parties
  • Whitman Knapp - Part I).
  • Orig.

  • 9 . DOCKET A

    EXTRACTED KEY WORDS
    LEAD PLAINTIFFS
    MOTION
    JUDGE
    DOCKET
    JOHN
    ROTH
    DEFENDANT
    WES
    SCOTT
    NORTHERN TELCOM
    GARY SCIBELLI
    DJC
    CIVIL
    BAER
    COURT
    APPOINTMENT
    COUNSEL
    CONSOLIDATION
    PETER MORSE/CORP TRUST
    MEMORANDUM
    LAW
    SUPPORT
    SELECTION
    MATTER
    RULING
    PARTIES
    WHITMAN
    KNAPP
    EDIT
    
    
    
    Docket as of January 20, 1999 [retrieved 1/23/99]
    
    Proceedings include all events.
    1:98cv7228               Scibelli v. Roth, et al
    
                                      U.S. District Court
         Southern District of New York - Civil Database (Foley Square)
    
                              CIVIL DOCKET FOR CASE #: 98-CV-7228
    
    Scibelli v. Roth, et al                                                   Filed:
    10/14/98
    Assigned to: Judge Harold Baer, Jr.
    Demand: $0,000                                           Nature of Suit: 850
    Lead Docket: None                                        Jurisdiction: Federal
    Question
    Dkt# in other court: None
    
    Cause: 15:78m(a) Securities Exchange Act
    
    
    GARY SCIBELLI, On behalf of                  Fred Taylor Isquith
    himself and all others                       [COR LD NTC]
    similarly situated                           Wolf Haldenstein Adler Freeman
                plaintiff                        & Herz
                                                 270 Madison Avenue
                                                 New York, NY 10016
                                                 (212)545-4690
    
                                                 Shane T. Rowley
                                                 [COR LD NTC]
                                                 Wolf, Haldenstein, Adler,
                                                 Freeman & Herz LLP
                                                 270 Madison Avenue
                                                 New York, NY 10016
                                                 (212) 545-4600
    
    
          v.
    
    
    JOHN A. ROTH
                defendant
    
    
    C. WES M. SCOTT
    
    SNIPPETS:
  • Docket as of January 20,
  • Southern District of New York - Civil Database
  • Assigned to: Judge Harold Baer,
  • Dkt# in other court: None
  • JOHN A. ROTH
  • WES M. SCOTT
  • # 328607 [Entry date 10/15/98]
  • Northern Telcom LTD by Peter Morse/Corp Trust on
  • 12/14/98 4 MEMORANDUM of LAW by Gary Scibelli in support of Motion
  • for appointment of lead plaintiffs,
  • proposed lead plaintiffs' selection of counsel,
  • consolidation of related cases.
  • appointment of lead plaintiffs; for approval of proposed
  • lead plaintiffs' lead counsel and for consolidation of
  • No Return date (djc) [Entry date
  • appear in this matter, or to move, answer or otherwise
  • extended for either 30 days following the court's ruling
  • or such time as the Court orders or the parties agree in
  • Whitman
  • Knapp - Part I).
  • [Edit date 01/15/99]

  • 10 . CIVIL DOCKET FOR CASE 97-CV-728

    EXTRACTED KEY WORDS
    PLAINTIFFS
    MOTION
    DEFENDANTS
    COUNSEL
    SUPPORT
    JUDGE
    MEMORANDUM
    AMENDED COMPLAINT
    DISMISS
    MANAGEMENT CONFERENCE
    GBA
    CERTIFICATION
    LEAD PLAINTIFFS
    COURT
    ADR OPTIONS
    OPPOSITION
    RESPONSE
    STIPULATION
    CERTIFYING PLAINTIFFS
    CONSOLIDATE
    DECLARATION
    JUDGE CHARLES
    ACTION COMPLAINT
    STATES DISTRICT JUDGE
    HAMILTON
    JUDICIAL NOTICE
    RECEIVED STIPULATION
    APPOINTING CLASS COUNSEL
    BAY NETWORKS
    
    
    
    Docket as of January 14, 1999 [retrieved 4/1/99]
    
    Proceedings include all events.
    CONSOL
    3:97cv728 Berger, et al v. Ludwick, et al
    
                                                                         CONSOL
                                   U.S. District Court
         U.S. District for the Northern District of California (S.F.)
    
                      CIVIL DOCKET FOR CASE #: 97-CV-728
    
    Berger, et al v. Ludwick, et al                                      Filed:
    02/28/97
    Assigned to: Judge Charles A. Legge                   Jury demand: Both
    Demand: $0,000                                        Nature of Suit: 850
    Lead Docket: None                                     Jurisdiction: Federal
    Question
    Dkt# in other court: None
    
    Cause: 15:78m(a) Securities Exchange Act
    
    [Party and Counsel List]
    
    
    2/28/97 1            COMPLAINT Summons(es) issued; Fee status pd entered on
                         2/28/97 in the amount of $ 150.00 (Receipt No. 41541);
    jury
                         demand        [3:97-cv-00728] (scu)
    
    2/28/97 2            ORDER RE COURT PROCEDURE and SCHEDULE by Mag. Judge
    Phyllis
                         J. Hamilton : Proof of service to be filed by 4/14/97 ;
                         counsels' case management statement to be filed by
    7/28/97 ;
                          initial case management conference will be held 1:30
                         8/5/97 (cc: all counsel) (scu)
    
    4/7/97       3       WAIVER OF SERVICE by defendant served on 4/4/97 in
    response
                         to the Request for Waiver sent on 3/4/97        [3:97-cv-
    00728]
                         (gba)
    
    4/23/97 4            DECLINATION to proceed before magistrate by defendant
                         [3:97-cv-00728] (gba)
    
    SNIPPETS:
  • Dkt# in other court: None
  • [Party and Counsel List]
  • initial case management conference will be held 1:30
  • 4/7/97 3 WAIVER OF SERVICE by defendant served on 4/4/97 in response
  • States District Judge
  • [Entry date 04/30/97]
  • 5/2/97 6 MOTION with memorandum in support before Mag.
  • J. Hamilton by Plaintiff for the approval of the proposed
  • lead plaintiffs' choice of counsel
  • 5/2/97 8 PROOF OF SERVICE by Plaintiff of declaration,
  • J. Hamilton by defendant to dismiss complaint
  • hearing on defendants' motion to dismiss is taken off
  • otherwise respond to the amended complaint on or before
  • 6/20/97 18 ORDER by Judge Charles A. Legge appointing lead plaintiffs
  • Cheheyl and Bay Networks, Inc. in support of their motion
  • 8/7/97 26 PROOF OF SERVICE by Plaintiffs of stipulation
  • motion to dismiss the amended class action complaint is due
  • and the reply brief to the opposition is due
  • AUTHORITIES by Plaintiffs for class certification order
  • certifying plaintiffs as class representatives,
  • 9/22/97 38 REQUEST FOR JUDICIAL NOTICE by Plaintiffs in support of
  • 9/25/97 41 CERTIFICATION of discussion of ADR options by Plaintiff
  • and appointing class counsel
  • support of their motion to consolidate cases
  • 6/1/98 -- RECEIVED Stipulation and Order to reschedule the

  • 11 . REPLY MEMO IN SUPPORT OF DEFENDANTS MOTION

    EXTRACTED KEY WORDS
    DEFENDANTS
    ALLEGATIONS
    PLEAD
    FACTS
    BAY
    FSBA
    SAC
    SUPP
    RELIANCE
    COURT
    LAW
    LITIG
    AMENDED COMPLAINT
    STATE BAR
    MARKET
    SECURITIES
    FSBA FAILS
    ALLEGED MISSTATEMENTS
    CALIFORNIA
    NEGLIGENT MISREPRESENTATION
    OPPOSITION
    FACTS SUPPORTING ALLEGATIONS
    FIRST AMENDED COMPLAINT
    BROBECK
    PHLEGER
    HARRISON LLP
    BAY NETWORKS
    PARTICIPATION
    INSTRUCTION
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    JANE ROWEN (State Bar No. 162455)
    JAMES A. LICO (State Bar No. 169017)
    ROBIN J. REILLY (State Bar No. 191579)
    BROBECK, PHLEGER & HARRISON LLP
    One Market, Spear Street Tower
    San Francisco, California 94105
    Telephone: (415) 442-0900
    
    MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place
    2200 Geng Road
    Palo Alto, California 94303
    Telephone: (650) 424-0160
    
    Attorneys for Defendants Andrew K. Ludwick,
    Paul J. Severino, William J. Ruehle, Ronald V. Schmidt,
    Jeffry R. Allen, Gary J. Bowen, Dominic Orr,
    Vito E. Palermo, R. Stephen Cheheyl, Bruce I. Sachs
    and Bay Networks, Inc.
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    FLORIDA STATE BOARD OF                                   ) No. C-97-2347-CAL
    ADMINISTRATION in behalf of itself and in                ) [filed Jun. 12, 1998]
    behalf of all other parties similarly situated and       )
    circumstanced, who desire to personally join in          ) DEFENDANTS' REPLY
    this action and contribute pro rata to the costs         ) MEMORANDUM IN SUPPORT OF
    and expenses thereof,                                    ) MOTION TO DISMISS SECOND
                                                             ) AMENDED COMPLAINT
                          Plaintiff,                         ) Date: July 31, 1998
               vs.                                           ) ) Time: 9:30 a.m.
                                                                   Place: Courtroom 10,
    BAY NETWORKS, INC. JEFFREY R. ALLEN,                     )      Honorable Charles A. Legge
    GARY J. BOWEN, R. STEPHEN CHEHEYL,                       )
    ANDREW K. LUDWICK, DOMINIC ORR,                          ) Trial Date: None Set
    VITO E. PALERMO, WILLIAM J. RUEHLE,                      )
    BRUCE I. SACHS, RONALD V. SCHMIDT,                       )
    PAUL J. SEVERINO, AND "JOHN DOE" AND                     )
    "RICHARD ROE", the names "JOHN DOE" and                  )
    "RICHARD ROE" being fictitious, the parties              )
    intended being those parties, presently unknown          )
    
    SNIPPETS:
  • (State Bar No. 58342)
  • BROBECK, PHLEGER & HARRISON LLP
  • California 94105 Telephone:
  • PLAINTIFF IGNORED THIS COURT'S SPECIFIC INSTRUCTION TO PLEAD ALL FACTS SUPPORTING ALLEGATIONS
  • UNAVAILING OR HAS ALREADY BEEN REJECTED BY THE COURT
  • EACH OF PLAINTIFF'S STATE LAW CLAIMS FAILS AS A MATTER OF LAW
  • Plaintiff's Claims of Fraud and Negligent Misrepresentation Must Be Dismissed, No Matter
  • Plaintiff Fails to State a Claim for Relief Under the Florida Securities Laws
  • F. Supp.
  • Craftmatic Sec. Litig.
  • In its opposition to defendants' motion to dismiss the Second Amended Complaint, plaintiff
  • FSBA defends its Section 10claim by adopting arguments made by other parties in opposition to
  • The Court dismissed the Berger First Amended Complaint for failure to satisfy the pleading
  • * FSBA fails to address the argument that the SAC contains no facts giving rise to a strong
  • knowledge of falsity with respect to alleged misstatements falling within the Reform Act's
  • In the face of these pervasive defects, FSBA requests leave to replead for one reason alone:
  • FSBA's complaint that Bay "failed" to provide the market with sufficient investment
  • Plaintiff's complaint does painstakingly allege the dates and amounts of a number of sales
  • Regarding the publication of press releases as "investment advice" is also inconsistent with

  • 12 . PLAINTIFFS MEMO IN OPPOSITION OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    BAY
    PLAINTIFFS
    COURT
    ALLEGATIONS
    PSLRA
    FACTS
    SAC
    STOCK
    CIR
    BAY NETWORKS
    SALES
    SUPP
    STATUTE
    LEGISLATIVE HISTORY
    ALLEGE
    STOCK PRICE
    LOSS CAUSATION
    CLASS PERIOD
    MISLEADING
    UNITED STATES
    DEFENDANTS ARGUE
    LEXIS
    CALIFORNIA
    DISTRICT COURTS
    SILICON GRAPHICS
    INSIDER DEFENDANTS
    MISREPRESENTATIONS
    PRODUCT DEVELOPMENT
    AVAILABILITY
    
    
    
    KEVIN M. PRONGAY
    JON W. BORDERUD
    MICHAEL E. O'KEEFE, Of Counsel
    PRONGAY & BORDERUD
    881 Alma Real Drive, Suite 211
    Pacific Palisades, California 90272
    Telephone: (310) 573-3600
    
    JEFFREY C. ZWERLING
    JOSEPH LIPOFSKY
    ZWERLING, SCHACHTER & ZWERLING LLP
    767 Third Avenue
    New York, New York 10017
    Telephone: (212) 223-3900
    JOSEPH TABACCO, JR.
    CHRISTOPHER T. HEFFELFINGER
    JENNIFER ABRAMS
    BERMAN, DEVALERIO, PEASE
    & TABACCO
    425 California Street, Suite 2025
    San Francisco, California 94104
    Telephone: (415) 433-3200
    Attorneys for Class Plaintiffs
    [Additional Counsel appear on signature page]
    
                                IN THE UNITED STATES DISTRICT COURT
    
                             FOR THE NORTHERN DISTRICT OF CALIFORNIA
    PAUL BERGER, JOHN QUERCI, ROBERT
    MASON, RONALD AND JUDITH HUGHES, MIN RU,                  CASE NO. C-97-0728-CAL
    CHRISTOPHER FLYNN, CAL MELAND, BARRY                      [filed Jun. 3, 1998]
    WOLINSKY, JOHN DRAKE, BRADLEY PERNA,
    JASON MENDENHALL, THOMAS JOHNSTON,                        Date: July 10, 1998
    KENNETH GRIFFIN, MARC A. TOPAZ, LUIS SAN                  Time: 9:30 a.m.
    ANDRES, ALAN TRESKI, DAVID M. KAMMERER,                   Place: Courtroom 10
    MICHAEL A. INGENITO, KYNA SAH, CHINHA SONG,
    JONG E. LEE, FONG OU, SUSAN BLACK and ROBERT              PLAINTIFFS' MEMORANDUM
    BORTNER, II, On Behalf of Themselves and All Others
    Similarly Situated,                                       OF POINTS AND AUTHORITIES
                                                              IN OPPOSITION TO DEFENDANTS'
                          Plaintiffs,                         MOTION TO DISMISS
               vs.                                            SECOND AMENDED COMPLAINT
    
    ANDREW K. LUDWICK, PAUL J. SEVERINO,
    WILLIAM J. RUEHLE, RONALD V. SCHMIDT,
    DOMINIC ORR, R. STEPHEN CHEHEYL,
    
    SNIPPETS:
  • California 94104 Telephone: 433-3200 Attorneys for Class Plaintiffs
  • IN THE UNITED STATES DISTRICT COURT
  • PLAINTIFFS' ALLEGATIONS ARE SUFFICIENT UNDER THE PSLRA
  • Legislative History Supports Plaintiffs' Interpretation That "All Facts" Means Facts,
  • PLAINTIFFS ADEQUATELY ALLEGE SCIENTER
  • The Statute Is Plain On Its Face,
  • Defendants' Stock Sales Support Scienter
  • PLAINTIFFS ADEQUATELY ALLEGE LOSS CAUSATION
  • The SAC Does Not Allege That Defendants Were Under a Duty To Disclose "Internal Forecasts Or
  • F.2d 680 (7th Cir.), cert.
  • F. Supp.
  • LEXIS 13207 (N.D.
  • In re Silicon Graphics, Inc.
  • Defendants attempt to transmogrify the factual allegations in the Second Amended Complaint to
  • Moreover, ¶114 of the SAC alleges with particularity the immediate and material impact the
  • Defendants' purported factual statements to the Court should not be relied upon.The SAC
  • In September 1995, Bay again resorted to deliberately announcing a fictitious availability
  • This misleading "vaporware" announcement was designed to make Bay customers believe it would
  • The Insider Defendants knew by late January 1996 that the development of these two products
  • the 28115 sales were declining rapidly at that time.
  • When a statute is clear, the Court must look to the language of the statute, not to
  • a minority of district courts have tried to read into some of the legislative history of the
  • Defendants argue that plaintiffs' allegations concerning defendants' stock sales, if
  • * on 8/14/95 -- "Bay Networks Adds Ethernet Switching to Centillion 100;" "The 16port
  • Bay's inventory buildup in the quarter ended December 31, 1995 was due to a slow-down in

  • 13 . DEFENDANTS MOTION TO DISMISS 2ND AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    PLAINTIFFS
    BAY
    SAC
    FACTS
    COMPLAINT
    MUCK
    ALLEGATIONS
    SALES FORCE
    MARKET
    MOTION
    SEVERINO
    SCIENTER
    CIR
    CLASS PERIOD
    STOCK
    PLEAD FACTS
    REFORM ACT
    LOSS CAUSATION
    SECURITIES FRAUD
    STOCK PRICE
    MISREPRESENTATIONS
    FACTS SHOWING
    ALLEGED MISSTATEMENTS
    ANNUAL REPORT
    HARRISON LLP
    BAY NETWORKS
    CHANNEL STUFFING
    ORGANIZATIONAL PROBLEMS
    INVENTORY BUILD-UP
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    JANE ROWEN (State Bar No. 162455)
    JAMES A. LICO (State Bar No. 169017)
    ROBIN J. REILLY (State Bar No. 191579)
    BROBECK, PHLEGER & HARRISON LLP
    One Market, Spear Street Tower
    San Francisco, CA 94105
    Telephone: (415) 442-0900
    
    MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place
    2200 Geng Road
    Palo Alto, CA 94303
    Telephone: (650) 424-0160
    
    Attorneys for Defendants
    Andrew K. Ludwick, Paul J. Severino, William J. Ruehle,
    Ronald V. Schmidt, Jeffry R. Allen, Gary J. Bowen,
    Dominic Orr, R. Stephen Cheheyl and Bay Networks, Inc.
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    PAUL BERGER, JOHN QUERCI, ROBERT                           )  No. C-97-0728-CAL
    MASON, RONALD AND JUDITH HUGHES, MIN  ) [filed May 4, 1998]
    RU, CHRISTOPHER FLYNN, CAL MELAND,                         )
    BARRY WOLINSKY, JOHN DRAKE, BRADLEY  ) CLASS ACTION
    PERNA, JASON MENDENHALL, THOMAS                            )
    JOHNSTON, KENNETH GRIFFIN, MARC A.                         ) DEFENDANTS' NOTICE OF
    TOPAZ, LUIS SAN ANDRES, ALAN TRESKI,                       ) MOTION AND MOTION TO
    DAVID M. KAMMERER, MICHAEL A.                              ) DISMISS SECOND AMENDED
    INGENITO, KYNA SAH, CHINHI SONG, JONG E. ) COMPLAINT; MEMORANDUM
    LEE, FONG OU, SUSAN BLACK and ROBERT                       ) OF POINTS AND AUTHORITIES
    BORTNER, II, On Behalf of Themselves and All               ) IN SUPPORT OF MOTION TO
    Others Similarly Situated,                                 ) DISMISS
                                                               )
                          Plaintiffs,                                Date: June 26, 1998
                                                               ) Time: 9:30 a.m.
               vs.                                             ) Place: Courtroom 10
                                                               )
    ANDREW K. LUDWICK, PAUL J. SEVERINO,                       )
    WILLIAM J. RUEHLE, RONALD V. SCHMIDT,  )
    JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC )
    
    SNIPPETS:
  • BROBECK, PHLEGER & HARRISON LLP
  • INGENITO, KYNA SAH, CHINHI SONG, JONG E.) COMPLAINT;
  • NOTICE OF MOTION AND MOTION
  • PLAINTIFFS' "INFORMATION AND BELIEF" ALLEGATIONS ARE INADEQUATE
  • Plaintiffs' Scienter Allegations Concerning Bay's Products Do Not Meet the Particularity
  • Plaintiffs Actually Plead Facts Which Negate Any Suggestion of Scienter
  • Defendants' Stock Transactions Are Inconsistent With Plaintiffs' Entire
  • PLAINTIFFS HAVE AGAIN FAILED TO ALLEGE ADEQUATELY THAT DEFENDANTS MADE ANY ACTIONABLE
  • Plaintiffs Cannot Establish Loss Causation for the Product-Related Statements
  • Plaintiffs Have Again Failed to Plead Facts Demonstrating That the Alleged Forward-Looking
  • E. Bay Did Not Have a Duty to Disclose Alleged Product Problems
  • PLAINTIFFS HAVE NOT STATED A CLAIM FOR MISREPRESENTATIONS OR OMISSIONS CONCERNING BAY'S
  • As a Matter of Law, Plaintiffs Have No Claim for Alleged Misstatements or Omissions Regarding
  • The Alleged Misstatements and Omissions Regarding Channel Stuffing, Inventory Build-Up and
  • 892 F.2d 680 (7th Cir.),
  • this Notice; the following Points and Authorities; the accompanying Declaration of Kevin P.
  • After more than twelve months of work and three separate pleading efforts, plaintiffs and
  • the SAC is premised on little more than the fact that Bay experienced a temporary business
  • The Company's outstanding performance throughout the class period -- during which it earned
  • Plaintiffs contend this disclosure -- which marks the end of the class period --had an
  • Plaintiffs similarly make the conclusory assertion that the individual defendants instructed
  • plaintiffs are unable to plead facts showing that alleged product-related misstatements in
  • Plaintiffs claim that Bay's 1995 Annual Report, October 17, 1995 press release and 1996 First
  • These purchases demonstrate a good faith belief in Bay and its prospects, and are completely

  • 14 . DEFENDANTS REPLY BRIEF

    EXTRACTED KEY WORDS
    BERGER
    PLAINTIFF
    DEFENDANTS
    PURPOSES
    FLORIDA STATE BOARD
    STATE BAR
    MOTION
    PARTIES
    ALLEGATIONS
    LAW
    DISCOVERY
    COMPLAINT
    INCONSISTENT
    COURT
    EXPENSES
    SUIT
    CLASS ACTION
    ECONOMY
    INCONSISTENT ADJUDICATIONS
    WASTE
    RISK
    PHLEGER
    HARRISON LLP
    STEPHENS
    ADMINISTRATION
    COSTS
    IDENTICAL ALLEGATIONS
    SECURITIES
    INDIVIDUAL SUIT
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    JANE ROWEN (State Bar No. 162455)
    JAMES A. LICO (State Bar No. 169017)
    BROBECK, PHLEGER & HARRISON LLP
    One Market
    Spear Street Tower
    San Francisco, California 94105
    Telephone: (415) 442-0900
    
    MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place
    2200 Geng Road
    Palo Alto, California 94303
    Telephone: (415) 424-0160
    
    Attorneys for Defendants
    Andrew K. Ludwick, Paul J. Severino, William J. Ruehle,
    Ronald V. Schmidt, Jeffry R. Allen, Gary J. Bowen,
    Dominic Orr, Vito E. Palermo, R. Stephen Cheheyl,
    Bruce I. Sachs, and Bay Networks, Inc.
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    FLORIDA STATE BOARD OF                             )  No. C-97-2347-CAL
    ADMINISTRATION in behalf of itself and )  [filed Nov. 21, 1997]
    in behalf of all other parties similarly           )
    situated and circumstanced, who desire to          )  DEFENDANTS' REPLY BRIEF IN
    personally join in this action and contribute  )  SUPPORT OF THEIR MOTION
    pro rata to the costs and expenses thereof,  )  TO CONSOLIDATE
                                                       )
                          Plaintiff,                   )  Date: December 5, 1997
                                                             Time: 9:30 a.m.
               vs.                                     ) )  Place: Courtroom of the
                                                                        Honorable Charles A. Legge
    BAY NETWORKS, INC., JEFFREY R.                     )
    ALLEN, GARY J. BOWEN, R. STEPHEN  )
    CHEHEYL, ANDREW K. LUDWICK,                        )
    DOMINIC ORR, VITO E. PALERMO,                      )
    WILLIAM J. RUEHLE, BRUCE I. SACHS,  )
    RONALD V. SCHMIDT, PAUL J.                         )
    SEVERINO, AND "JOHN DOE" AND                       )
    "RICHARD ROE", the names "JOHN                     )
    
    SNIPPETS:
  • KEVIN P. MUCK (State Bar No. 120918) JANE ROWEN JAMES A. LICO
  • BROBECK, PHLEGER & HARRISON LLP
  • Attorneys for Defendants
  • ADMINISTRATION in behalf of itself and)
  • personally join in this action and contribute) SUPPORT OF THEIR MOTION pro rata to the costs
  • parties, presently unknown to the plaintiffs,) who participated in the wrongful acts set)
  • Faced with identical allegations of wrongdoing against the same defendants, presenting
  • Plaintiff has not even filed an opposition to defendants' motion to consolidate.
  • Instead, it has submitted a declaration from its counsel suggesting that while these cases
  • Thus, the only issue on which the plaintiff and defendants part company is whether the
  • It is clear from the allegations of the complaints at issue that they involve identical
  • As explained below, each of these "different" factual and legal issues are, at best,
  • Consolidation for all purposes will ensure that the same issues will be tried only once,
  • Plaintiff agrees that consolidation at this point in the litigation will expedite pretrial
  • plaintiff attempts to assert that the state-law claims asserted in its complaint present
  • Section 18makes actionable false or misleading statements contained in documents filed with
  • Second, plaintiff attempts to distinguish its action from Berger by pointing out that Berger
  • Werner v. Satterlee, Stephens, Burke & Burke, 797 F. Supp.
  • (granting motion for consolidation of an individual suit with a class action).

  • 15 . DEFENDANTS RE BRIEF IN SUPPORT OF MOTION TO CONSOLIDATE

    EXTRACTED KEY WORDS
    FLORIDA STATE
    PLAINTIFFS
    DEFENDANTS
    PURPOSES
    BERGER
    FLORIDA STATE BOARD
    INCONSISTENT
    STATE BAR
    ALLEGATIONS
    BROBECK
    PHLEGER
    HARRISON LLP
    LAW
    DISCOVERY
    COMPLAINT
    TIME PERIOD
    ECONOMY
    INCONSISTENT ADJUDICATIONS
    WASTE
    RISK
    COURT
    ALLEGES
    CLASS PERIOD
    GRANTING MOTION
    COMMON
    SEPARATE
    WRONGDOING
    SLIGHTLY LONGER TIME
    MOTION
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    JANE ROWEN (State Bar No. 162455)
    JAMES A. LICO (State Bar No. 169017)
    BROBECK, PHLEGER & HARRISON LLP
    One Market, Spear Street Tower
    San Francisco, CA 94105
    Telephone: (415) 442-0900
    
    MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place, 2200 Geng Road
    Palo Alto, CA 94303
    Telephone: (415) 424-0160
    
    Attorneys for Defendants
    Andrew K. Ludwick, Paul J. Severino, William J. Ruehle,
    Ronald V. Schmidt, Jeffry R. Allen, Gary J. Bowen,
    Dominic Orr, R. Stephen Cheheyl and Bay Networks, Inc.
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    PAUL BERGER, JOHN QUERCI, ROBERT                       )  No. C-97-0728-CAL
    MASON, RONALD AND                                      ) [filed Nov. 21, 1997]
    JUDITH HUGHES, MIN RU, CHRISTOPHER  )
    FLYNN, CAL MELAND, BARRY                               ) CLASS ACTION
    WOLINSKY, JOHN DRAKE, BRADLEY                          )
    PERNA, JASON MENDENHALL, THOMAS  ) DEFENDANTS' REPLY BRIEF IN
    JOHNSTON, KENNETH GRIFFIN, MARC                        ) SUPPORT OF THEIR MOTION
    A. TOPAZ, LUIS SAN ANDRES, ALAN                        ) TO CONSOLIDATE
    TRESKI, DAVID M. KAMMERER,                             ) Date: December 5, 1997
    MICHAEL A. INGENITO, KYNA SAH,                         ) Time: 9:30 a.m.
    CHINHI SONG, JONG E. LEE, FONG OU,                     ) Place: Courtroom of the
    SUSAN BLACK and ROBERT BORTNER, II,  )            Honorable Charles A. Legge
    On Behalf of Themselves and All Others                 )
    Similarly Situated,                                    ))
                          Plaintiffs,                      )
               vs.                                         ))
    ANDREW K. LUDWICK, PAUL J.                             )
    SEVERINO, WILLIAM J. RUEHLE,                           )
    RONALD V. SCHMIDT, JEFFRY R. ALLEN,  )
    GARY J. BOWEN, DOMINIC ORR, R.                         )
    STEPHEN CHEHEYL, and                                   )
    
    
    SNIPPETS:
  • KEVIN P. MUCK (State Bar No. 120918) JANE ROWEN JAMES A. LICO
  • BROBECK, PHLEGER & HARRISON LLP
  • Attorneys for Defendants
  • Faced with identical allegations of wrongdoing against the same defendants, presenting
  • The only issue on which plaintiffs and defendants part company is whether the actions should
  • It is clear from the allegations of the complaints at issue that they involve identical
  • plaintiffs could point to only two such "different" factual and legal issues: the Berger
  • As explained below, each of these "different" factual and legal issues are, at best,
  • Consolidation for all purposes will ensure that the same issues will be tried only once,
  • In response to defendants' motion to consolidate, plaintiffs concede that the Florida State
  • Plaintiffs agree that consolidation at this point in the litigation will expedite pretrial
  • First, plaintiffs point to the fact that the class period in Berger begins on May 1, 1995,
  • the Berger amended complaint alleges that these press releases were false and misleading for
  • (granting motion to consolidate two securities actions, one of which had a slightly shorter
  • All of the state-law claims (including the common law fraud, negligent misrepresentation and
  • (granting consolidation of actions for trial when "nough common and related issues exist with

  • 16 . DECLARATION OF I WALTON BADER

    EXTRACTED KEY WORDS
    BERGER
    MOTION
    CONSOLIDATE
    PLAINTIFF
    BADER
    COUNSEL
    DEFENDANTS
    DISMISS
    AMENDED COMPLAINT
    CLASS ACTION
    COURT
    FLORIDA
    CO-PENDING
    ATTORNEYS
    STATE BOARD
    ADMINISTRATION
    CALIFORNIA
    WALTON BADER
    DECLARATION
    SECURITIES
    STOCK
    HEREBY
    FACTS
    AWAIT
    EXCHANGE ACT
    LAW
    INDIVIDUAL SUIT
    STATE PENSION FUND
    LEAD COUNSEL
    
    
    
    BADER and BADER
    I.WALTON BADER
    BENEDICT BADER
    Attorneys for Plaintiffs
    65 Court Street
    White Plains NY 10601
    Telephone : 914-682-0072
    
    HORACE SCHOW II
    General Counsel
    STATE BOARD OF ADMINISTRATION OF FLORIDA
    Attorney for Plaintiffs
    1801 Hermitage Boulevard
    Tallahassee, Florida 32308
    Telephone 904-488-4406
    
    SIEGERMAN and WEGLEY
    Jon Siegerman
    Attorneys for Plaintiffs
    100 Bush Street
    San Francisco, California 94104
    Telephone 415-989-0715
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    FLORIDA STATE BOARD OF ADMINISTRATION :  Civil Action
    in behalf of itself and in behalf of                      :
    all other parties similarly situated                      : Docket Number
    and circumstanced,who desire to                           : C-97-2347-CAL
    personally join in this action and                        : [filed Nov. 17, 1997]
    contribute pro rata to the costs                          :
    and expenses thereof,                                     : DECLARATION OF I, WALTON
                                                              : BADER WITH RESPECT TO
                          Plaintiff,                          : DEFENDANTS' MOTION TO
                                                                   CONSOLIDATE ACTIONS
               -against-                                      :: Date : December 5, 1997
    BAY NETWORKS, INC., JEFFREY R. ALLEN,                     : Time : 9:30 AM
    GARY J, BOWEN, R, STEPHEN CHEHEYL,                        : Place: Courtroom of the
    ANDREW K. LUDWICK, DOMINIC ORR, VITO E.  : Hon. Charles A. Legge, USDJ
    PALERMO, WIILIAM J. RUEHLE, BRUCE I.                      :
    SACHS, RONALD V. SCHMIDT, PAUL J.                         :
    SEVERINO,and "JOHN DOE" and "RICHARD                      :
    ROE", the names "JOHN DOE" and                            :
    "RICHARD ROE" being fictitious, the                       :
    
    SNIPPETS:
  • BADER and BADER
  • STATE BOARD OF ADMINISTRATION OF FLORIDA
  • SIEGERMAN and WEGLEY Jon Siegerman Attorneys for Plaintiffs
  • San Francisco, California 94104 Telephone 415-989-0715
  • FLORIDA STATE BOARD OF ADMINISTRATION:
  • Because of the facts which will be set forth hereinafter in this Declaration the undersigned
  • The Berger Class Action Complaint contains only Section 10and Section 20claims of the
  • The Individual Complaint in this action, in addition to containing Section 10and Section
  • Another point of distinction between the Berger Complaint and the present Complaint is the
  • Quite obviously the State Pension Fund has the right to proceed in its individual action
  • Any right of counsel in the Berger action to be a "lead counsel" in the Class Action can not
  • The plaintiff herein suggests that the defendants' Motion to Consolidate be held in abeyance
  • In addition any Consolidation Order should provide that the counsel for the State Board of
  • I hereby certify that on November 10th, 1997 I served a copy of the forgoing Declaration of

  • 17 . AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    DEFENDANT
    BAY NETWORKS
    COMPLAINT
    LUDWICK
    PLAINTIFFS
    STOCK
    MARKET
    MATERIAL ADVERSE
    MISLEADING
    FLORIDA
    SWITCHING
    BUSINESS
    WRONGDOING SET
    SALES
    ANNUAL REPORT
    MATERIALLY FALSE
    PRODUCT DEVELOPMENT
    MANAGEMENT
    TECHNOLOGY
    ALLEGATIONS
    SOLD BAY STOCK
    REPRESENTATIONS
    CALIFORNIA
    COMMON STOCK
    SECURITIES
    BUSINESS UNITS
    DEFENDANT SEVERINO
    COMPETITIVENESS
    ACQUISITION
    
    
    
    BADER and BADER
    I.WALTON BADER
    BENEDICT BADER
    Attorneys for Plaintiffs
    65 Court Street
    White Plains NY 10601
    Telephone : 914-682-0072
    
    HORACE SCHOW II
    General Counsel
    STATE BOARD OF ADMINISTRATION OF FLORIDA
    Attorney for Plaintiffs
    1801 Hermitage Boulevard
    Tallahassee, Florida 32308
    Telephone 904-488-4406
    
    SIEGERMAN and WEGLEY
    Jon Siegerman
    Attorneys for Plaintiffs
    100 Bush Street
    San Francisco, California 94104
    Telephone 415-989-0715
    
                                          UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    FLORIDA STATE BOARD OF ADMINISTRATION :  Civil Action
    in behalf of itself and in behalf of                       :
    all other parties similarly situated                       : Docket Number
    and circumstanced,who desire to                            : C-97-2347-CAL
    personally join in this action and                         : [filed Nov. 17, 1997
    contribute pro rata to the costs                           : JURY TRIAL DEMANDED
    and expenses thereof,                                      ::
                          Plaintiff,                           :
               -against-                                       ::
    BAY NETWORKS, INC., JEFFREY R. ALLEN,                      :
    GARY J, BOWEN, R, STEPHEN CHEHEYL,                         :
    ANDREW K. LUDWICK, DOMINIC ORR, VITO E.  :
    PALERMO, WIILIAM J. RUEHLE, BRUCE I.                       :
    SACHS, RONALD V. SCHMIDT, PAUL J.                          :
    SEVERINO,and "JOHN DOE" and "RICHARD                       :
    ROE", the names "JOHN DOE" and                             :
    "RICHARD ROE" being fictitious, the                        :
    parties intended being those parties,                      :
    
    
    SNIPPETS:
  • Attorneys for Plaintiffs
  • STATE BOARD OF ADMINISTRATION OF FLORIDA
  • All allegations made in this Complaint are based on information and belief, except those
  • The investigations included a review of the SEC filings of the defendant BAY NETWORKS,
  • It has its office and principal place of business at 180l Hermitage Boulevard, Tallahassee,
  • It maintains its General Offices and its principal place of business at 4401 Great American
  • The common stock of the said BAY NETWORKS is listed on the New York Stock Exchange.
  • During the periods of wrongdoing set forth herein, defendant Allen sold BAY stock for
  • On July 19, 1996, Bay announced that, in view of BAY's reorganization of its sales and
  • Two months following this announcement, on or about September 17, 1996, defendant Bowen was
  • Ludwick signed BAY's annual reports on Form 10-K for the 1995 fiscal year ended June 20, 1995
  • Ruehle made or participated in a number of other misleading public statements particularized
  • Defendant Severino has remained on BAY's Board following his resignation and, for a two week
  • The common stock of BAY, during the period of wrongdoing set forth in this Complaint, was
  • During the period of wrongdoing as set forth in this Complaint, defendants issued public
  • As set forth hereafter, these materially false and misleading statements included statements
  • Defendants exercised these options -- sometimes for pennies a share -- and often "flipped"
  • The significance of BAY's continuing representations throughout the aforesaid period that it
  • Analysts also questioned whether the integration of the two previous business units would
  • The repurchases were designed to, and had, the effect, of propping up BAY's stock at a time
  • The Press Release stated that the Lattis Switch which was shipped since January 1995, is

  • 18 . PLAINTIFFS REQUEST TO TAKE JUDICIAL NOTICE IN OPPOSITION TO MOTION

    EXTRACTED KEY WORDS
    PRONGAY
    KEVIN
    EXHIBIT
    DECLARATION
    TABACCO
    ZWERLING
    PLAINTIFFS
    BAY NETWORKS ETHERNET
    JOSEPH
    BERMAN
    DEVALERIO
    PEASE
    SUITE
    BORDERUD
    SCHACHTER
    YORK
    NETWORKS ETHERNET LATTISSWITCH
    EXCERPTS
    ANNUAL REPORT
    STRATEGIC NETWORKS
    THROUGHPUT PERFORMANCE TEST
    INTEGRATED SUITE
    HIGH-PERFORMANCE ETHERNET SOLUTIONS
    WORKGROUP
    BACKBONE LAN ENVIRONMENTS
    ETHERNET LATTISSWITCH HUB
    PACKETS
    INDUSTRY-RECOGNIZED BRADNER BENCHMARK
    FTP FILE
    
    
    
    JOSEPH J. TABACCO, JR. (75484)
    CHRISTOPHER T. HEFFELFINGER (118058)
    BERMAN DeVALERIO
    PEASE & TABACCO
    425 California Street
    Suite 2025
    San Francisco, CA 94104
    Telephone: (415) 433-3200
     KEVIN M. PRONGAY (87010)
    JON W. BORDERUD (134355)
    MICHAEL E. O'KEEFE, Of Counsel
    PRONGAY & BORDERUD
    881 Alma Real Drive, Suite 211
    Pacific Palisades, CA 90272
    Telephone: (310) 573-3600
     ROBERT S. SCHACHTER
    JEFFREY C. ZWERLING
    JOSEPH LIPOFSKY
    ZWERLING, SCHACHTER & ZWERLING LLP
    767 Third Avenue
    New York, New York 10017
    Telephone: (212) 223-3900
     Attorneys for Plaintiffs
    
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    
    PAUL BERGER, and JOHN QUERCI,                            |  CASE NO. C 97-0728 CAL
    On Behalf of Themselves and All Others Similarly  |
    Situated,                                                |  CLASS ACTION
                                                             |
                          Plaintiffs,                        |
                                                             |
               vs.                                           |  PLAINTIFFS REQUEST TO TAKE
                                                             |  JUDICIAL NOTICE IN OPPOSITION
    ANDREW K. LUDWICK, PAUL J.                               |  TO DEFENDANTS' MOTION TO
    SEVERINO, WILLIAM J. RUEHLE,                             |  DISMISS AMENDED COMPLAINT
    RONALD V. SCHMIDT, JEFFRY R. ALLEN,                      |
    GARY J. BOWEN, DOMINIC ORR, VITO E.                      | Date: Nov. 14, 1997
    
    
    
    
    
    SNIPPETS:
  • JOSEPH J. TABACCO, JR.
  • Suite 2025 San Francisco,
  • PRONGAY & BORDERUD
  • ROBERT S. SCHACHTER JEFFREY C. ZWERLING JOSEPH LIPOFSKY ZWERLING,
  • New York, New York 10017 Telephone: 223-3900 Attorneys for Plaintiffs
  • Pursuant to Federal Rule of Evidence 201, plaintiffs, PAUL BERGER, and JOHN QUERCI hereby
  • An article published in the May 6, 1997, issue of the national newspaper, USA Today titled,
  • Bay Networks, Inc.'s publication of January 24, 1997, titled, "Analysts and Press on New
  • Bay Networks, Inc.'s press release of May 1, 1995, titled, "Bay Networks Ethernet
  • Bay Networks, Inc.'s press release of July 13, 1995, titled, "Bay Networks Delivers
  • Bay Networks, Inc.'s press release of July 24, 1995, titled, "Bay Networks Ethernet
  • Excerpts from Bay Networks, Inc.'s 1996 Annual Report attached to the Declaration of Kevin M.
  • ftp file from Berman, DeValerio, Pease & Tabacco

  • 19 . PLAINTIFFS MEMO IN OPPOSITION TO MOTION

    EXTRACTED KEY WORDS
    DEFENDANTS
    COMPLAINT
    BAY
    FACTS
    MOTION
    INVESTORS
    MISLEADING
    BASIS
    STANDARD
    PSLRA
    PLEADING STANDARD
    STOCK
    DISMISS
    COMPETITION
    TRUTH
    MATERIAL FACT
    AMENDED COMPLAINT
    SECOND CIRCUIT
    ALLEGATIONS
    FEDERAL SECURITIES LAWS
    INSIDER DEFENDANTS
    OPPOSITION
    REFORM ACT
    MANAGEMENT
    APPLE COMPUTER
    SECURITIES FRAUD
    LATTISSWITCH
    MISREPRESENTATIONS
    LEXIS
    
    
    
    JOSEPH J. TABACCO, JR. (75484)
    CHRISTOPHER T. HEFFELFINGER (118058)
    JENNIFER S. ABRAMS (178203)
    BERMAN, DeVALERIO, PEASE & TABACCO
    425 California Street, Suite 2025
    San Francisco, CA 94104
    Telephone: (415) 433-3200
    
    KEVIN M. PRONGAY (87010)                                      JEFFREY C. ZWERLING
    JON W. BORDERUD (134355)                                      JOSEPH LIPOFSKY
    MICHAEL E. O'KEEFE, Of Counsel                                OREN GISKAN
    PRONGAY & BORDERUD                                            ZWERLING, SCHACHTER
    881 Alma Real Drive, Suite 211                                  & ZWERLING, LLP
    Pacific Palisades, CA 90272                                   767 Third Avenue
    Telephone: (310) 573-3600                                     New York, NY 10017
                                                                  Telephone: (212) 223-3900
    [Additional counsel appear on signature page]
    
    Attorneys for Plaintiffs
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    
    PAUL BERGER, JOHN QUERCI, ROBERT                         )  CASE NO. C-97-0728-CAL
    MASON, RONALD AND JUDITH HUGHES,  )
    MIN RU, CHRISTOPHER FLYNN, CAL                           ) CLASS ACTION
    MELAND, BARRY WOLINSKY, JOHN                             )
    DRAKE, BRADLEY PERNA, JASON                              )
    MENDENHALL, THOMAS JOHNSTON,                             ) DATE November 14, 1997
    KENNETH GRIFFIN, MARC A. TOPAZ, LUIS  ) TIME: 9:00 a.m.
    SAN ANDRES, ALAN TRESKI, DAVID M.                        ) CTRM: Hon. Charles A. Legge
    KAMMERER, MICHAEL A. INGENITO,                           )
    KYNA SAH, CHINHI SONG, JONG E. LEE,                      )
    FONG OU, SUSAN BLACK, and ROBERT                         )
    BORTNER, II, On Behalf of Themselves and All )
    Others Similarly Situated,                               )
                                                             )
                          Plaintiffs,                        )
                                                             )
               vs.                                           )
                                                             )
    ANDREW K. LUDWICK, PAUL J.                               )
    SEVERINO, WILLIAM J. RUEHLE, RONALD  )
    
    
    SNIPPETS:
  • PLAINTIFFS' MEMORANDUM OF POINTS AND AUTHORITIES IN OPPOSITION TO THE MOTION TO DISMISS THE
  • Plaintiffs submit this Memorandum of Points and Authorities in Opposition to the Motion to
  • Companies and their officers and directors would speak the whole truth to investors and
  • Perhaps motivated by the strong desire not to admit failure, coupled with the incredibly
  • Determined to overcome the nay sayers, Bay Networks, Inc., and its top management launched a
  • that the newly created Bay was not only responding but was "one upping" the competition in
  • As detailed in plaintiffs' June 20, 1997 Amended Complaint, defendants' numerous
  • In that time, defendants were able to artificially maintain Bay's stock prices, paving the
  • As required by the recently enacted PLSRA, the complaint details facts from which a strong
  • At the pleading state the Court's mandate is to review the contents of the Complaint, taking
  • Among the most significant of the detailed series of misleading statements isued by
  • Defendants contend that plaintiffs have failed to allege particularized facts establishing
  • One issue raised by this motion is plaintiffs' compliance with the pleading standard of the
  • Plaintiffs detail at least 21 statements containing actionable misrepresentations and
  • LEXIS 21034, at * 2, to the allegations here, the test demonstrates that statements about the
  • quoting Apple Computer,
  • All that the PSLRA's "information and belief" provision does is codify the heightened
  • Ignoring the plain language of the PSLRA and its rich legislative history, defendants say
  • the Complaint specifically alleges that the Insider Defendants sold millions of dollars worth

  • 20 . MOTION TO DISMISS COMPLAINT

    EXTRACTED KEY WORDS
    BAY
    COMPLAINT
    PLAINTIFF
    FACTS
    MARKET
    MOTION
    SUPP
    REFORM ACT
    COMP
    CIR
    ALLEGE
    LITIG
    LUDWICK
    SCIENTER
    SECURITIES
    MISLEADING STATEMENTS
    ALLEGATIONS
    BAY NETWORKS
    PLAINTIFF FAILS
    SAN FRANCISCO
    SILICON GRAPHICS
    CLASS PERIOD
    SECOND CIRCUIT
    FACTS DEMONSTRATING
    PLEADING REQUIREMENTS
    TECHNOLOGY
    COMPETITION
    STOCK PRICE
    ROWEN DECL
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    KEVIN P. MUCK (State Bar No. 120918)
    LISA J. MORELLI (State Bar No. 137092)
    JANE ROWEN (State Bar No. 162455)
    JAMES A. LICO (State Bar No. 169017)
    BROBECK, PHLEGER& HARRISON LLP
    One Market
    Spear Street Tower
    San Francisco, California 94105
    Telephone: (415) 442-0900
     MEREDITH N. LANDY (State Bar No. 136489)
    BROBECK, PHLEGER & HARRISON LLP
    Two Embarcadero Place
    2200 Geng Road
    Palo Alto, California 94303
    Telephone: (415) 424-0160
    Attorneys for Defendants
    Andrew K. Ludwick, Paul J. Severino,
    William J. Ruehle, Ronald V. Schmidt,
    Jeffry R. Allen, Gary J. Bowen,
    Dominic Orr, Vito E. Palermo,
    R. Stephen Cheheyl, Bruce I. Sachs,
    and Bay Networks, Inc.
    
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    
    FLORIDA STATE BOARD OF                                  )  No. C-97-2347-CAL
    ADMINISTRATION in behalf of itself and  )
    in behalf of all other parties similarly                ) CLASS ACTION
    situated and circumstanced, who desire to               )
    personally join in this action and contribute  ) DEFENDANTS' NOTICE OF MOTION
    pro rata to the costs and expenses thereof,             ) AND MOTION TO DISMISS
                                                            ) COMPLAINT; MEMORANDUM OF
                          Plaintiff,                        ) POINTS AND AUTHORITIES IN
                                                            ) SUPPORT OF MOTION TO DISMISS
               -against-                                    )
                                                            ) Date: November 14, 1997
    BAY NETWORKS, INC. JEFFREY R.                           ) Time: 9:00 a.m.
    ALLEN, GARY J. BOWEN, R. STEPHEN  ) Place: Courtroom 10,
    CHEHEYL, ANDREW K. LUDWICK,                             )       Honorable Charles A. Legge
    
    
    
    SNIPPETS:
  • One Market Spear Street Tower San Francisco,
  • 424-0160 Attorneys for Defendants
  • THE REFORM ACT AND THE LEGAL STANDARDS FOR A MOTION TO DISMISS
  • PLAINTIFF FAILS TO ALLEGE ADEQUATELY THAT DEFENDANTS MADE ANY ACTIONABLE MISREPRESENTATIONS
  • No Duty to Disclose Effects of Competition on Products
  • Bay Warned Potential Investors of Each of the "Facts"
  • Plaintiff Has Failed to Plead Facts Demonstrating Actual
  • E. Plaintiff's Allegations Are Fatally Deficient Because They Fail to State All Facts
  • THE COMPLAINT DOES NOT CONTAIN FACTS ESTABLISHING A STRONG INFERENCE OF SCIENTER
  • Plaintiff Fails to State a Claim for Relief Under the Florida Securities Laws
  • 90 F.3d 617 (1st Cir.
  • F. Supp.
  • In re Baesa Sec. Litig.,
  • In re Silicon Graphics Inc.
  • President's Message to the House of Representatives Returning Without Approval the Private
  • Perhaps the only significant deviation from the classic "fraud by hindsight" formula is that
  • Congress and the federal courts have become increasingly suspicious of securities class
  • Armed with little more than stock sales and vague statements about the Company's business,
  • As discussed below, the Complaint is deficient as a matter of law, and falls far short of
  • See January 11, 1996 release (Rowen Decl., Ex.
  • Plaintiff contends this announcement caused the stock price to drop about 20%,
  • Although Congress borrowed the "strong inference" language from the Second Circuit, noting
  • plaintiff must state specific facts demonstrating that each defendant had the requisite state
  • Plaintiff Fails to "Link" the Alleged Omissions With Misleading Statements.

  • 21 . MOTION FOR CLASS CERTIFICATION

    EXTRACTED KEY WORDS
    COURT
    REPRESENTATIVES
    MOTION
    CLASS CERTIFICATION
    CLASS ACTION
    COUNSEL
    CLASS MEMBERS
    DEFENDANTS
    TABACCO
    COMMON
    SECURITIES
    DISTRICT
    CERTIFYING
    CLASS PERIOD
    BAY
    CALIFORNIA
    JOHN DRAKE
    ROBERT BORTNER
    MEMORANDUM
    COMMON QUESTIONS
    SECURITIES LAWS
    TYPICALITY
    CHRISTOPHER
    UNITED STATES
    COMPLAINT
    SECURITIES FRAUD
    CCH
    LITIGATION
    FEDERAL SECURITIES LAWS
    
    
    
    JOSEPH J. TABACCO, JR. (75484)
    CHRISTOPHER T. HEFFELFINGER (118058)
    BERMAN DeVALERIO
    PEASE & TABACCO
    425 California Street, Suite 2025
    San Francisco, CA 94104
    Telephone: (415) 433-3200
     JEFFREY C. ZWERLING
    OREN S. GISKAN
    ZWERLING, SCHACHTER                               KEVIN M. PRONGAY (87010)
                                                      JON W. BORDERUD (134355)
      & ZWERLING, LLP                                 MICHAEL E. O'KEEFE, Of Counsel
    767 Third Avenue                                  PRONGAY & BORDERUD
    New York, New York 10017                          881 Alma Real Drive, Suite 211
    Telephone: (212) 223-3900                         Pacific Palisades, CA 90272
                                                      Telephone: (310) 573-3600
    (Other Counsel for Plaintiffs Appear on Signature Page)
    
    
                                IN THE UNITED STATES DISTRICT COURT
    
                           FOR THE NORTHERN DISTRICT OF CALIFORNIA
    
    
    PAUL BERGER, JOHN QUERCI, ROBERT                      )  CASE NO. 97-0728 CAL
    MASON, RONALD AND JUDITH HUGHES, MIN  )
    RU, CHRISTOPHER FLYNN, CAL MELAND,                    )
    BARRY WOLINSKY, JOHN DRAKE, BRADLEY  )
    PERNA, JASON MENDENHALL, THOMAS                       ) CLASS ACTION
    JOHNSTON, KENNETH GRIFFIN, MARC A.                    )
    TOPAZ, LUIS SAN ANDRES, ALAN TRESKI,                  )
    DAVID M. KAMMERER, MICHAEL A.                         )
    INGENITO, KYNA SAH, CHINHI SONG, JONG E. ) DATE: November 14, 1997
    LEE, FONG OU, YEHUDA SCHWAB, SUSAN                    ) TIME: 9:00 a.m.
    BLACK, and ROBERT BORTNER, II, On Behalf of  ) CTRM: Hon. Charles A. Legge
    Themselves and All Others Similarly Situated,         )
                                                          )
                          Plaintiffs,                     )
                                                          )
               vs.                                        )
                                                          )
    ANDREW K. LUDWICK, PAUL J. SEVERINO,                  )
    WILLIAM J. RUEHLE, RONALD V. SCHMIDT,  )
    JEFFRY R. ALLEN, GARY J. BOWEN, DOMINIC )
    ORR, R. STEPHEN CHEHEYL and BAY                       )
    
    
    SNIPPETS:
  • JOSEPH J. TABACCO, JR.
  • CHRISTOPHER T. HEFFELFINGER
  • (Other Counsel for Plaintiffs Appear on Signature Page)
  • IN THE UNITED STATES DISTRICT COURT
  • FOR THE NORTHERN DISTRICT OF CALIFORNIA
  • BARRY WOLINSKY, JOHN DRAKE, BRADLEY)
  • BLACK, and ROBERT BORTNER, II, On Behalf of) CTRM:
  • NOTICE OF MOTION AND MOTION FOR CLASS CERTIFICATION, AND PLAINTIFFS' MEMORANDUM IN SUPPORT OF
  • NOTICE OF MOTION AND MOTION FOR CLASS CERTIFICATION TO: THE PARTIES AND THEIR ATTORNEYS OF
  • All persons who purchased or otherwise acquired the common stock of Bay Networks, Inc. during
  • Excluded from the Class are the defendants herein, members of their families and any entity
  • This motion is based upon this Notice of Motion and Motion, the accompanying Memorandum of
  • Plaintiffs' Amended Consolidated Class Action Complaint for Violation of Federal Securities
  • "lass actions commonly arise in securities fraud cases as the claims of separate investors
  • the Ninth Circuit as well as the courts of the Northern District take a liberal view towards
  • Throughout the Class Period, Bay stated that the Merger created a corporation with diverse
  • Sec. L. Rep. (CCH) ¶ 95,004 at 95,626 (N.D.
  • Thus, while the exact number of Class members is unknown at this time and can only be
  • In determining whether common questions predominate, the Court's inquiry