PINNACLE SYSTEMS INC - Legal Case Documents


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PINNACLE SYSTEMS INC

Keywords & Phrases

CaseNo: PSI107432, CourtName: CLASS ACTION CASES, State: CA California, UniqueCaseRef: LCD>PSI107432, Pinnacle, Stock, Video, Sanders, Class Period, Lead Plaintiff, Pinnacle Systems, Burnham, Acquisition, Lawson, Securities, Class Actions, Broadcast, Designs, Technology, Co-lead Counsel, Motion, Sales, Editing, Net Income, Appointed Lead Plaintiff, San Francisco, Video Server, Eps, Video Post-production, Officer, Executive Officer, Consolidation, Federal Securities Laws, Mark, Executives, Lerach Llp, Entry, Stock Price, Report, Multiple, Class Members, Appointment, Individual Defendants , ContentID: 120246844

Case Documents

DECLARATION OF MICHAEL R R REESE
[ see first page and extracted highlights below ] ItemID: 116635

4 pages
PDF

COMPLAINT B
[ see first page and extracted highlights below ] ItemID: 116634

22 pages
PDF

COMPLAINT A
[ see first page and extracted highlights below ] ItemID: 116633

24 pages
PDF

2000-12-04

DOCKET
[ see first page and extracted highlights below ] ItemID: 116636

7 pages
PDF

2000-10-27

MOTION AND MEMO IN SUPPORT OF MOTION TO CONSOLIDATE ACTIONS
[ see first page and extracted highlights below ] ItemID: 116638

7 pages
PDF

2000-10-27

MOTION AND MEMO IN SUPPORT OF MOTION TO BE APPOINTED LEAD PLAINTIFF
[ see first page and extracted highlights below ] ItemID: 116637

10 pages
PDF

Total Documents: 6 documents , 74 pages

Price: $ 44.95

IVESLCD01 KGI0001

1 . DECLARATION OF MICHAEL R R REESE

EXTRACTED KEY WORDS

LEAD PLAINTIFF
SAN FRANCISCO
DECLARE
COUNSEL
CALIFORNIA
APPOINTMENT
LERACH LLP
MOTION
SECURITIES EXCHANGE ACT
MILBERG WEISS BERSHAD
WEISS BERSHAD HYNES
CAULEY
MICHAEL
REESE
FIRM
MOVANTS
LEAD PLAINTIFFS PURSUANT
CO-LEAD COUNSEL
LAW
BUSINESS
AURORA
CONSOLIDATING
APPROVING
INTERNET
LITIG
ORDER GRANTING
PENALTY
PERJURY
FOREGOING




MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
    - and -
REED R. KATHREIN (139304)
100 Pine Street, Suite 2600
San Francisco, CA 94111
Telephone: 415/288-4545
CAULEY & GELLER, LLP
STEVEN E. CAULEY
11311 Arcade Drive, Suite 201
Little Rock, AR 72212
Telephone: 501/312-8500

[Proposed] Co-Lead Counsel for Plaintiffs



                                   UNITED STATES DISTRICT COURT

                                NORTHERN DISTRICT OF CALIFORNIA


MARIA JIMENEZ, On Behalf of                     )  No. C-00-2596-MMC
Herself and All Others Similarly Situated,      )  CLASS ACTION
                        Plaintiff,              ) ) DECLARATION OF MICHAEL R.R.
    vs.                                         ) ) REESE IN SUPPORT OF: (1) MOTION
                                                )
PINNACLE SYSTEMS, INC., et al.,                       OF JEFF BURNHAM AND RONALD P.
                                                )
                                                      LAWSON TO BE APPOINTED LEAD
                                                )
                        Defendants.                   PLAINTIFF PURSUANT TO SECTION
                                                )
_________________________________ ) 21D(a)(3)(B) OF THE SECURITIES
                                                      EXCHANGE ACT OF 1934 AND FOR
                                                      APPROVAL OF LEAD PLAINTIFF'S
                                                      CHOICE OF COUNSEL; AND (2)
                                                      MOTION TO CONSOLIDATE
                                                      ACTIONS AGAINST PINNACLE
                                                      SYSTEMS, INC., ET AL. FOR
                                                      VIOLATION OF THE SECURITIES

SNIPPETS:

CAULEY & GELLER, LLP STEVEN E. CAULEY

I, Michael R.R. Reese, declare as follows:

I am associated with the law firm of Milberg Weiss Bershad Hynes & Lerach LLP, one of the

Exhibit B: Chart of Movants' Purchases,

July 19, 2000 Business Wire;

Consolidating Cases, Appointing the Aurora Lead Plaintiff Group as Lead

and Approving Lead Plaintiff's Selection of Counsel (N.D.

Smith, et al. v. Electronics for Imaging, Inc., et al., No. C-97-4739-CAL, Order Granting the

Lead Plaintiffs Pursuant to §21Dof the Securities Exchange Act

of 1934 and for Appointment of Lead Plaintiffs' Co-Lead Counsel (N.D.

Sec. Litig., No. C-97-20059 RMW,

I declare under penalty of perjury under the laws of the State of California that the

Executed this 18th day of September, 2000, at San Francisco, California.

VIOLATION OF THE SECURITIES EXCHANGE ACT OF 1934 the by depositing a true copy thereof in a

2 . COMPLAINT B

EXTRACTED KEY WORDS

STOCK
VIDEO
SANDERS
CLASS PERIOD
PINNACLE SYSTEMS
BROADCAST
EDITING
TECHNOLOGY
ACQUISITION
BUSINESS
EXECUTIVE OFFICER
DESIGNS
DEFENDANTS
SALES
MULTIPLE
NET INCOME
VIDEO SERVER
SECURITIES
EPS
VIDEO POST-PRODUCTION
MULTIPLE STREAMS
INDIVIDUAL DEFENDANTS
FOREIGN CURRENCY
AJAY CHOPRA
WILLIAM LOESCH
EXCLUDING ACQUISITION
REPEATING SANDERS
TRACK RECORD
PUFFIN DESIGNS




MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
    - and -
REED R. KATHREIN (139304)
100 Pine Street, Suite 2600
San Francisco, CA 94111
Telephone: 415/288-4545
LAW OFFICES OF ALFRED G.
YATES, JR.
ALFRED G. YATES, JR.
519 Allegheny Building
429 Forbes Avenue
Pittsburgh, PA 15219
Telephone: 412/391-5164

Attorneys for Plaintiff



                                   UNITED STATES DISTRICT COURT

                                NORTHERN DISTRICT OF CALIFORNIA


JOSEPH T. MISCOVEY, On Behalf of                  )  No.C-00-2673-MEJ
Himself and All Others Similarly Situated,        )  CLASS ACTION
                        Plaintiff,                ) )  COMPLAINT FOR VIOLATION
    vs.                                           ) )  OF THE FEDERAL SECURITIES
                                                  )
PINNACLE SYSTEMS, INC., MARK                            LAWS
                                                  )
L. SANDERS, AJAY CHOPRA, ARTHUR
                                                  )
D. CHADWICK and WILLIAM LOESCH,
                                                  ) )
                        Defendants.               )
____________________________________ ) DEMAND FOR JURY TRIAL

                                   INTRODUCTION AND OVERVIEW

SNIPPETS:

This is an action on behalf of those who purchased or otherwise acquired Pinnacle Systems,

Pinnacle designs, manufactures, markets, and supports computer-based video postproduction

The Company's products use real time video processing and editing technologies to apply a

Defendants' false and misleading statements concerning the revenues to be derived from its lion acquisition of the Avid Sports business.

On 7/11/00, shortly after the acquisition was completed on 6/30/00, Pinnacle revealed that it

Defendant Mark L. Sanders was, during the Class Period, President and Chief Executive Officer

Defendant Ajay Chopra was, during the Class Period, Chairman of the Board and General Manager

Defendant William Loesch was, during the Class Period, Vice President/General Manager -

The Individual Defendants, by reason of their stock ownership and positions with Pinnacle,

using Pinnacle stock as currency, it was important that Pinnacle maintain a higher share

Including acquisition related charges, net income for the first quarter of fiscal 2000 was

According to Pinnacle Systems' President and Chief Executive Officer Mark Sanders, "The first

Net income, excluding acquisition related charges, increased 61% over the same quarter last

In August, Pinnacle Systems completed the acquisition of the Hewlett Packard broadcast video

As demand for professional-quality streaming increases, Pinnacle intends to leverage its

Sanders commented: "This strategy was strengthened by acquiring four companies since the

Thomas Weisel Partners LLC issued a report on Pinnacle written by van Dorsten repeating

At this time, however, we believe that Pinnacle's broadest business will make up for the

We have an excellent track record of meeting and exceeding expectations.

3 . COMPLAINT A

EXTRACTED KEY WORDS

STOCK
VIDEO
DEFENDANTS
CLASS PERIOD
PINNACLE SYSTEMS
ACQUISITION
BUSINESS
SANDERS
OFFICER
DESIGNS
MARK
EXECUTIVES
SALES
STOCK PRICE
REPORT
NET INCOME
VIDEO POST-PRODUCTION
VIDEO SERVER
SECURITIES
EPS
TECHNOLOGY
INDIVIDUAL DEFENDANTS
LLP
FEDERAL SECURITIES LAWS
EXCLUDING ACQUISITION
REPEATING SANDERS
PCLE
PUFFIN DESIGNS
COMPUTER-BASED VIDEO POST-PRODUCTION




        MILBERG WEISS BERSHAD
        HYNES & LERACH LLP
        WILLIAM S. LERACH (68581)
        DARREN J. ROBBINS (168593)
        600 West Broadway, Suite 1800
        San Diego, CA 92101
        Telephone: 619/231-1058
            - and -
        PATRICK J. COUGHLIN (111070)
        100 Pine Street, Suite 2600
        San Francisco, CA 94111
        Telephone: 415/288-4545

        CAULEY & GELLER, LLP
        PAUL J. GELLER
        One Boca Place, Suite 421A
        2255 Glades Road
        Boca Raton, FL 33431
        Telephone: 561/750-3000

        SCHIFFRIN & BARROWAY, LLP
        RICHARD S. SCHIFFRIN
        MARC A. TOPAZ
        Three Bala Plaza East, Suite 400
        Bala Cynwyd, PA 19004
        Telephone: 610/667-7706

         Attorneys for Plaintiff



                                  UNITED STATES DISTRICT COURT

                                 NORTHERN DISTRICT OF CALIFORNIA


             MARIA JIMENEZ, On Behalf of             )  No.
                                                     )
             Herself                                 )  CLASS ACTION
             and All Others Similarly Situated,      )  COMPLAINT FOR VIOLATION
             Plaintiff,                              ) )  OF THE FEDERAL SECURITIES
             vs.                                     )  LAWS
                                                     )
             PINNACLE SYSTEMS, INC., MARK  )
             L.                                      ) ) DEMAND FOR JURY TRIAL

SNIPPETS:

CAULEY & GELLER, LLP PAUL J. GELLER

PINNACLE SYSTEMS, INC., MARK)

This is an action on behalf of those who purchased or otherwise acquired Pinnacle Systems,

Pinnacle designs, manufactures, markets, and supports computer-based video post-production

Defendants' false and misleading statements concerning the revenues to be derived from its lion acquisition of the Avid Sports business.

On 7/11/00, shortly after the acquisition was completed on 6/30/00, Pinnacle revealed that it

This announcement caused its stock price to drop to as low as $8-13/16 on record volume of

Defendant Mark L. Sanders was, during the Class Period, President and Chief Executive Officer

Defendant Arthur D. Chadwick was, during the Class Period, Chief Financial Officer of the

The Individual Defendants, by reason of their stock ownership and positions with Pinnacle,

The Individual Defendants are each top executives of Pinnacle.

Because this acquisition was to be completed using Pinnacle stock as currency, it was

Net sales were a record $50,447,000 compared to $32,273,000 in the first quarter

net income for the first

excluding acquisition related charges,

Hewlett Packard broadcast video server business,

wide range of Web solutions using our most advanced technology.

On 3/24/00, Pinnacle acquired Puffin Designs, Inc. using 360,352 Pinnacle shares as currency

Thomas Weisel Partners LLC issued a report on Pinnacle written by van Dorsten repeating

PCLE continued to improve its balance sheet.

4 . DOCKET

EXTRACTED KEY WORDS

COUNSEL
CONSOL
DEFENDANT
MOTION
PLAINTIFF
JUDGE MAXINE
CHESNEY
LEAD COUNSEL
APPOINTMENT
DISTRICT
CHESNEY GRANTING MOTION
ATTORNEY SHAWN
PRO HAC VICE
DOCKET
WILLIAMS
COMPLAINT
MARK
SANDERS
AJAY CHOPRA
ARTHUR
CHADWICK
CERTIFICATE
DEFENDANT PINNACLE SYSTEMS
MEMBER
STIPULATION
EXTENDING TIME
MEMORANDUM
SUPPORT
NOTICE SET



Case docket was last updated on: 12/04/00.


Docket as of December 4, 2000 9:06 pm                        Page 1

Proceedings include all events.
CONSOL
3:00cv2596 Jimenez v. Pinnacle Systems Inc, et al                                LEAD

                                                                       CONSOL LEAD
                             U.S. District Court
     U.S. District for the Northern District of California (S.F.)

                     CIVIL DOCKET FOR CASE #: 00-CV-2596

Jimenez v. Pinnacle Systems Inc, et al                                 Filed:
07/19/00
Assigned to: Judge Maxine M. Chesney                  Jury demand: Plaintiff
Demand: $0,000                                        Nature of Suit: 850
Lead Docket: 00-CV-2912                               Jurisdiction: Federal
Question

Cause: 15:78m(a) Securities Exchange Act


MARIA JIMENEZ, On behalf of             William S. Lerach
herself and all others                  [COR LD NTC]
similarly situated                      Darren J. Robbins
        Plaintiff                       [COR NTC]
                                        Milberg Weiss Bershad Hynes &
                                        Lerach LLP
                                        600 W Broadway Ste 1800
                                        One America Plaza
                                        San Diego, CA 92101
                                        (619) 231-1058

                                        Richard S. Schiffrin
                                        [COR LD NTC]
                                        Marc A. Topaz
                                        [COR NTC]
                                        Schiffrin & Barroway LLP
                                        Three Bala Plaza East
                                        Suite 400
                                        Bala Cynwyd, PA 19004
                                        (610) 667-7706

SNIPPETS:

Case docket was last updated on:

CONSOL

U.S. District for the Northern District of California

jury demand [Entry date

Plaintiff to file requisite certificate on

(cc: all counsel)

defendant Pinnacle Systems Inc, defendant Mark L. Sanders,

defendant Ajay Chopra, defendant Arthur D. Chadwick,

and disposition by defendant Pinnacle Systems Inc

3:00-cv-2912 with member cases 3:00-cv-2596, 3:00-cv-2912,

9/15/00 10 STIPULATION and ORDER by Judge Maxine M. Chesney:

extending time to answer complaint to 45 days after filing

9/18/00 11 MOTION with memorandum in support before Judge Maxine

cases with Notice set for 10/27/00 9 a.m.

3:00-cv-02596 re motion for appointment of lead counsel

attorney Shawn A. Williams to appear pro hac vice.

10/24/00 20 ORDER by Judge Maxine M. Chesney granting motion to

5 . MOTION AND MEMO IN SUPPORT OF MOTION TO CONSOLIDATE ACTIONS

EXTRACTED KEY WORDS

PINNACLE
COURT
MOTION
SECURITIES
LEAD PLAINTIFF
RELATED ACTIONS
FEDERAL SECURITIES LAWS
SAN FRANCISCO
PINNACLE SYSTEMS
PENDING
ACT
DEFENDANTS
PRIVATE SECURITIES LITIGATION
MOVANTS
VIOLATION
DECLARE
PURPOSES
DETERMINATION
PRESERVATION
ALLEGES
DISTRICT
CLASS PERIOD
PINNACLE STOCK
PURSUANT
PURCHASE
VIDEO
COMPLAINT
AUTHORITIES
JIMENEZ




MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
    - and -
REED R. KATHREIN (139304)
100 Pine Street, Suite 2600
San Francisco, CA 94111
Telephone: 415/288-4545
CAULEY & GELLER, LLP
STEVEN E. CAULEY
11311 Arcade Drive, Suite 201
Little Rock, AR 72212
Telephone: 501/312-8500

[Proposed] Co-Lead Counsel for Plaintiffs



                                   UNITED STATES DISTRICT COURT

                                NORTHERN DISTRICT OF CALIFORNIA


MARIA JIMENEZ, On Behalf of                     )  No. C-00-2596-MMC
Herself and All Others Similarly Situated,      )  CLASS ACTION
                        Plaintiff,              ) )  NOTICE OF MOTION, MOTION
    vs.                                         ) )  AND MEMORANDUM OF POINTS
                                                )  AND AUTHORITIES IN SUPPORT
PINNACLE SYSTEMS, INC., et al.,                 )  OF MOTION TO CONSOLIDATE
                                                )
                        Defendants.                   ACTIONS AGAINST PINNACLE
                                                )
_________________________________ ) SYSTEMS, INC., ET AL. FOR
                                                      VIOLATION OF THE SECURITIES
                                                      EXCHANGE ACT OF 1934

                                                      DATE: October 27, 2000
                                                      TIME: 9:00 a.m.
                                                      COURTROOM: The Honorable
                                                                                 Maxine M. Chesney

SNIPPETS:

San Francisco, CA 94111 Telephone:

This Court Should Consolidate These Related Actions for Purposes of Efficiency

The Private Securities Litigation Reform Act of 1995 Requires that the Question of

This Court Should Order the Preservation of Documents

The motion is also made on the grounds that consolidation of these actions will promote

The motion is based upon this notice of motion and motion, the memorandum of points and

Presently pending in this District are four related and substantially identical actions

Smith v. Pinnacle Systems, Inc., et al. C-00-2757-MMC 08/01/00 Jones v. Pinnacle Systems,

Each of these actions alleges securities claims on behalf of a class of persons who purchased

Thus, consolidation of the Jimenez, Miscovey, Smith, and Jones actions is appropriate.

Pinnacle designs, manufactures, markets and supports computer based video post production

Defendants' positive statements and strong EPS projections were false and misleading when

While Pinnacle stock traded at artificially inflated levels due to defendants' false and

Consolidation pursuant to Fed.

This Court Should Order the Preservation of Documents Through this motion, movants also

For the reasons stated above, and in order to promote judicial economy, movants respectfully

FOR VIOLATION OF THE SECURITIES EXCHANGE ACT OF 1934 by depositing a true copy thereof in a

I declare under penalty of perjury that the foregoing is true and correct.

All share and purchase amounts have been adjusted to reflect Pinnacle's 2-for-1 stock splits

6 . MOTION AND MEMO IN SUPPORT OF MOTION TO BE APPOINTED LEAD PLAINTIFF

EXTRACTED KEY WORDS

BURNHAM
LAWSON
CLASS ACTIONS
CO-LEAD COUNSEL
COURT
APPOINTED LEAD PLAINTIFF
CLASS MEMBERS
SAN FRANCISCO
SECURITIES
LERACH LLP
MOTION
PINNACLE
CAULEY
RELIEF
APPROVE BURNHAM
DEFENDANTS
FEDERAL SECURITIES LAWS
REESE DECL
EXCHANGE ACT
CLASS PERIOD
MILBERG WEISS BERSHAD
ALLEGATIONS
APPOINTMENT
MISLEADING STATEMENTS
PROCEDURAL BACKGROUND
PSLRA
PURPORTED CLASS
COMPLAINT
CLASS REPRESENTATIVES




MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
    - and -
REED R. KATHREIN (139304)
100 Pine Street, Suite 2600
San Francisco, CA 94111
Telephone: 415/288-4545
CAULEY & GELLER, LLP
STEVEN E. CAULEY
11311 Arcade Drive, Suite 201
Little Rock, AR 72212
Telephone: 501/312-8500

[Proposed] Co-Lead Counsel for Plaintiffs



                                   UNITED STATES DISTRICT COURT

                                NORTHERN DISTRICT OF CALIFORNIA


MARIA JIMENEZ, On Behalf of                     )  No. C-00-2596-MMC
Herself and All Others Similarly Situated,      )  CLASS ACTION
                        Plaintiff,              ) )  NOTICE OF MOTION, MOTION
    vs.                                         ) )  AND MEMORANDUM OF POINTS
                                                )
PINNACLE SYSTEMS, INC., et al.,                       AND AUTHORITIES IN SUPPORT
                                                )
                                                      OF MOTION OF JEFF BURNHAM
                                                )
                        Defendants.                   AND RONALD P. LAWSON TO
                                                )
_________________________________ ) BE APPOINTED LEAD PLAINTIFF
                                                      PURSUANT TO SECTION
                                                      21D(a)(3)(B) OF THE SECURITIES
                                                      EXCHANGE ACT OF 1934 AND
                                                      FOR APPROVAL OF LEAD
                                                      PLAINTIFF'S CHOICE OF COUNSEL

                                                      DATE: October 27, 2000

SNIPPETS:

San Francisco, CA 94111 Telephone:

CAULEY & GELLER, LLP STEVEN E. CAULEY

PROCEDURAL BACKGROUND

SUMMARY OF ALLEGATIONS

Burnham and Lawson Should Be Appointed Lead Plaintiff

Relief Sought by the Class

E. This Court Should Approve Burnham and Lawson's Choice of Counsel

This motion is made on the grounds that Burnham and Lawson are the most adequate lead

P. 23 because their claims are typical of the class members' claims, and they will fairly and

Finally, Burnham and Lawson have selected the law firms of Milberg Weiss Bershad Hynes &

The motion is based on this notice of motion and motion, the accompanying memorandum of