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Keywords & Phrases
CaseNo: RBS91014, CourtName: CLASS ACTION II, State: CA California, UniqueCaseRef: LCD>RBS91014, Red Brick, Motion, Complaint, Allegations, Class Period, Common Stock, Facts, Entry, Lead Plaintiff, San Francisco, Supp, Securities, Class Action, Reform Act, Fraud, Cir, United States, California, Scienter, Support, Revenues, Clegg Group, John, Red Brick Systems, Sales, Financials, Kathrein, Individual Defendants, Allege, Dismiss, Fernandez, Amended Complaint, Shoch, Litig, Shares, Standards, Reform, Stock, Price, Act, Legislation, Henn, Violation, Exchange Act, Misleading, Cch, Expenses , ContentID: 120246872

Case Documents
1   SUPP STATEMENT OF RECENT DECISION 2
[ see first page and extracted highlights below  ] ItemID: 116872
4 pages
PDF
2   SUPP STATEMENT OF RECENT DECISION
[ see first page and extracted highlights below  ] ItemID: 116871
4 pages
PDF
3   NOTICE OF DISMISSAL
[ see first page and extracted highlights below  ] ItemID: 116865
4 pages
PDF
4   DECLARATION OF REED R KATHREIN
[ see first page and extracted highlights below  ] ItemID: 116859
3 pages
PDF
5   CORRECTED REPLY MEMO IN SUPPORT OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 116856
26 pages
PDF
6   COMPLAINT B 2
[ see first page and extracted highlights below  ] ItemID: 116854
36 pages
PDF
7   COMPLAINT B
[ see first page and extracted highlights below  ] ItemID: 116853
27 pages
PDF
8 1999-12-06 CIVIL DOCKET FOR CASE 98-CV-1206
[ see first page and extracted highlights below  ] ItemID: 116850
24 pages
PDF
9 1999-12-03 MOTION TO DISMISS COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 116864
24 pages
PDF
10 1999-12-03 DECLARATION OF IGNACIO E SALCEDA
[ see first page and extracted highlights below  ] ItemID: 116858
3 pages
PDF
11 1999-02-05 STATEMENT OF RECENT DECISIONS IN SUPPORT OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 116868
25 pages
PDF
12 1998-12-15 SUPP REQUEST FOR JUDICIAL NOTICE
[ see first page and extracted highlights below  ] ItemID: 116870
4 pages
PDF
13 1998-12-15 SUPP APPENDIX IN SUPPORT OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 116869
148 pages
PDF
14 1998-12-15 REQUEST FOR JUDICIAL NOTICE
[ see first page and extracted highlights below  ] ItemID: 116866
12 pages
PDF
15 1998-12-15 MEMO IN OPPOSITION TO MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 116861
38 pages
PDF
16 1998-12-15 COUNTER-MOTION TO STRIKE
[ see first page and extracted highlights below  ] ItemID: 116857
14 pages
PDF
17 1998-12-15 CORRECTED COUNTER-MOTION TO STRIKE
[ see first page and extracted highlights below  ] ItemID: 116855
19 pages
PDF
18 1998-10-07 MOTION TO DISMISS AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 116863
30 pages
PDF
19 1998-07-07 CIVIL DOCKET FOR CASE 98-CV-1207
[ see first page and extracted highlights below  ] ItemID: 116851
4 pages
PDF
20 1998-06-30 MOTION AND MEMO IN SUPPORT OF MOTION
[ see first page and extracted highlights below  ] ItemID: 116862
15 pages
PDF
21 1998-06-30 DECLARATION OF REED R KATHREIN IN SUPPORT OF THE STIPULATION
[ see first page and extracted highlights below  ] ItemID: 116860
5 pages
PDF
22 1998-06-09 STATEMENT OF NON-OPPOSITION TO THE MOTION
[ see first page and extracted highlights below  ] ItemID: 116867
6 pages
PDF
23 1998-03-25 COMPLAIN C
[ see first page and extracted highlights below  ] ItemID: 116852
20 pages
PDF
Total Documents: 23 documents , 495 pages
Price: $ 129.95


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1 . SUPP STATEMENT OF RECENT DECISION 2

EXTRACTED KEY WORDS
PLAINTIFFS
LERACH LLP
DECLARE
CALIFORNIA
PURSUANT
LOCAL RULE
MILBERG WEISS BERSHAD
HYNES
THOMAS
UNITED STATES
NORTHERN DISTRICT
SUPPORT
OPPOSITION
DEFENDANTS
MOTION
DISMISS
AVERY
YORK
BERGER
MONTAGUE
TODD
COLLINS
JACOB
GOLDBERG
PHILADELPHIA
CO-LEAD COUNSEL
COURT
SUPPLEMENTAL STATEMENT
THEREOF



MILBERG WEISS BERSHAD
HYNES & LERACH LLP
REED R. KATHREIN (139304)
222 Kearny Street, 10th Floor
San Francisco, CA 94108
Telephone: 415/288-4545
       - and -
WILLIAM S. LERACH (68581)
KAREN L. THOMAS (149536)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058

WOLF POPPER LLP
STEPHEN D. OESTREICH
PATRICIA I. AVERY
845 Third Avenue
New York, NY 10022
Telephone: 212/759-4600


BERGER & MONTAGUE, P.C.
TODD S. COLLINS
JACOB A. GOLDBERG
1622 Locust Street
Philadelphia, PA 19103
Telephone: 215/875-3000

Co-Lead Counsel for Plaintiffs



                           UNITED STATES DISTRICT COURT

                          NORTHERN DISTRICT OF CALIFORNIA



In re RED BRICK SYSTEMS, INC.           )      Master File No.
SECURITIES LITIGATION                   )      C-98-1206-MJJ
___________________________________)
                                        )      CLASS ACTION
This Document Relates To:               )
                                        )
ALL ACTIONS.                            )
SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP REED R. KATHREIN
  • San Francisco, CA 94108 Telephone:
  • - and -WILLIAM S. LERACH KAREN L. THOMAS
  • WOLF POPPER LLP STEPHEN D. OESTREICH PATRICIA I. AVERY
  • New York, NY 10022 Telephone:
  • BERGER & MONTAGUE, P.C. TODD S. COLLINS JACOB A. GOLDBERG
  • Philadelphia, PA 19103 Telephone: 215/875-3000
  • Co-Lead Counsel for Plaintiffs
  • UNITED STATES DISTRICT COURT
  • NORTHERN DISTRICT OF CALIFORNIA
  • PLAINTIFFS' SUPPLEMENTAL STATEMENT OF RECENT DECISION
  • Pursuant to Local Rule 7-3, plaintiffs hereby submit the following recent decision in further
  • Plaintiffs will be prepared to address this decision during oral argument, should the Court
  • PURSUANT TO NORTHERN DISTRICT LOCAL RULE 23-2
  • That on April 22, 1999, declarant served the PLAINTIFFS' SUPPLEMENTAL STATEMENT OF RECENT
  • I declare under penalty of perjury that the foregoing is true and correct.

  • 2 . SUPP STATEMENT OF RECENT DECISION

    EXTRACTED KEY WORDS
    PLAINTIFFS
    CALIFORNIA
    PURSUANT
    LOCAL RULE
    DECLARE
    UNITED STATES
    NORTHERN DISTRICT
    SUPPORT
    OPPOSITION
    DEFENDANTS
    MOTION
    DISMISS
    LERACH
    LLP
    COURT
    THEREOF
    BUSINESS
    KEARNY STREET
    FLOOR
    DEPOSITING
    UNITED STATES MAILBOX
    SEALED ENVELOPE
    THEREON FULLY PREPAID
    DESIGNATED INTERNET SITE
    REGULAR COMMUNICATION
    MAILING
    PENALTY
    PERJURY
    FOREGOING
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                               UNITED STATES DISTRICT COURT
    
                            NORTHERN DISTRICT OF CALIFORNIA
    
    In re RED BRICK SYSTEMS, INC.            )   Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                    ) )  CLASS ACTION
    ___________________________________ )
    This Document Relates To:                ) )
    ALL ACTIONS.                             ) )
    ___________________________________ ) )
                       PLAINTIFFS' SUPPLEMENTAL STATEMENT OF
                     RECENT DECISION PURSUANT TO LOCAL RULE 7-3(e)
                            IN SUPPORT OF THEIR OPPOSITION
                           TO DEFENDANTS' MOTION TO DISMISS
    
    
    
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP REED R. KATHREIN
  • WOLF POPPER LLP STEPHEN D. OESTREICH PATRICIA I. AVERY
  • Co-Lead Counsel for Plaintiffs
  • UNITED STATES DISTRICT COURT
  • NORTHERN DISTRICT OF CALIFORNIA
  • Pursuant to Local Rule 7-3, plaintiffs hereby submit the following recent decision in further
  • Plaintiffs will be prepared to address this decision during oral argument, should the Court
  • PURSUANT TO NORTHERN DISTRICT LOCAL RULE 23-2
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
  • SUPPORT OF THEIR OPPOSITION TO DEFENDANTS' MOTION TO DISMISS by depositing a true copy
  • That there is a regular communication by mail between the place of mailing and the places so
  • I declare under penalty of perjury that the foregoing is true and correct.

  • 3 . NOTICE OF DISMISSAL

    EXTRACTED KEY WORDS
    LERACH LLP
    DECLARE
    PLAINTIFFS
    CALIFORNIA
    MILBERG WEISS BERSHAD
    HYNES
    KATHREIN
    UNITED STATES
    NORTHERN DISTRICT
    PURSUANT
    SAN DIEGO
    WOLF POPPER LLP
    OESTREICH
    PATRICIA
    AVERY
    YORK
    BERGER
    MONTAGUE
    TODD
    COLLINS
    JACOB
    GOLDBERG
    PHILADELPHIA
    CO-LEAD COUNSEL
    COURT
    CIVIL PROCEDURE
    DISMISS
    PREJUDICE
    THEREOF
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
        - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
    
    
                             UNITED STATES DISTRICT COURT
    
                            NORTHERN DISTRICT OF CALIFORNIA
    
    
    In re RED BRICK SYSTEMS, INC.          )  Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                  )
    _________________________________      )  CLASS ACTION
    This Document Relates To:              ) )  PLAINTIFFS' NOTICE OF DISMISSAL
                                                 OF ACTION WITHOUT PREJUDICE
    ALL ACTIONS.                           ) )  PURSUANT TO FEDERAL RULE OF
                                            ) CIVIL PROCEDURE 41(a)(l)(i)
    
    
    
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP REED R. KATHREIN
  • San Francisco, CA 94111 Telephone:
  • San Diego, CA 92101 Telephone:
  • WOLF POPPER LLP STEPHEN D. OESTREICH PATRICIA I. AVERY
  • New York, NY 10022 Telephone:
  • BERGER & MONTAGUE, P.C. TODD S. COLLINS JACOB A. GOLDBERG
  • Philadelphia, PA 19103 Telephone: 215/875-3000
  • Co-Lead Counsel for Plaintiffs
  • UNITED STATES DISTRICT COURT
  • NORTHERN DISTRICT OF CALIFORNIA
  • P. 41, plaintiffs hereby dismiss this action, without prejudice, against all defendants.
  • As of this date, no answer has been filed, no motion for summary judgment has been filed, and
  • PURSUANT TO NORTHERN DISTRICT LOCAL RULE 23-2
  • DISMISSAL OF ACTION WITHOUT PREJUDICE PURSUANT TO FEDERAL
  • RULE OF CIVIL PROCEDURE 41by depositing a true copy thereof in a United States mailbox at San
  • I declare under penalty of perjury that the foregoing is true and correct.

  • 4 . DECLARATION OF REED R KATHREIN

    EXTRACTED KEY WORDS
    SAN FRANCISCO
    PLAINTIFFS
    CALIFORNIA
    KATHREIN
    COUNSEL
    UNITED STATES
    LERACH LLP
    NORTHERN DISTRICT
    MEMBERS
    PREJUDICE PURSUANT
    FEDERAL RULE
    THEREOF
    MILBERG WEISS BERSHAD
    HYNES
    LAW
    SUPPORT
    CIVIL
    DEFENDANTS
    PUTATIVE CLASS
    INDIVIDUAL SETTLEMENT
    PENALTY
    PERJURY
    FOREGOING
    COUNTY
    AGE
    PARTY
    BUSINESS
    PINE STREET
    FLOOR
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
        - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
    
    
                             UNITED STATES DISTRICT COURT
    
                            NORTHERN DISTRICT OF CALIFORNIA
    
    
    In re RED BRICK SYSTEMS, INC.          )  Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                  )
    _________________________________      )  CLASS ACTION
    This Document Relates To:              ) )  DECLARATION OF REED R.
                                                 KATHREIN IN SUPPORT OF
    ALL ACTIONS.                           ) )  NOTICE OF DISMISSAL OF
                                            ) ACTION WITHOUT PREJUDICE
    
    
    
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP REED R. KATHREIN
  • UNITED STATES DISTRICT COURT
  • I am a member of the law firm of Milberg Weiss Bershad Hynes & Lerach LLP, one of the counsel
  • I make this declaration in support of Plaintiffs' Notice of Dismissal of Action Without
  • Defendants have not made or promised any payment, direct or indirect, to the named plaintiffs
  • Plaintiffs and their counsel represent that they did not append class allegations here in
  • No class has been certified in this action, and no notice of the pendency of the action was
  • I declare under penalty of perjury under the laws of the State of California that the
  • Executed this 18th day of January, 2000, at San Francisco, California.
  • PURSUANT TO NORTHERN DISTRICT LOCAL RULE 23-2
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
  • PROCEDURE 41by depositing a true copy thereof in a United States mailbox at San Francisco,

  • 5 . CORRECTED REPLY MEMO IN SUPPORT OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    DEFENDANTS
    COMPLAINT
    SUPPORT
    RED BRICK
    SUPP
    ALLEGATIONS
    MOTION
    FACTS
    OPP
    SCIENTER
    GROUP PLEADING
    MEMORANDUM
    CIR
    LITIG
    CLASS ACTION
    REFORM ACT
    SAN FRANCISCO
    RED BRICK SYSTEMS
    TRANSFER BINDER
    CONCLUSORY ALLEGATIONS
    CALIFORNIA
    CCH
    SILICON GRAPHICS
    FACTS SHOWING
    PRE-REFORM
    LOSS CAUSATION
    FERNANDEZ
    CORRECTEDL
    COMPARE OPP
    
                                          -
    
                                           ..
                                                                                                       
                                                                                                       
                                                                                                       
                                                                                                       
                                                                                                       
                 TOWER C. SNOW JR. State Bar No.: 58342                                                
     .... 1
    
            i-.  *
    
            I       .            .-
    
                              I . . .
    
                 JOHN B. MISSING State Bar No.: 106044
            ...
                 KEVIN P. MUCK State Bar No.:  1209 18                                           ?'a?  
                 RACHAEL E. M E W  State Bar No.:
                                                          178514                                       
                                                                                                       
                                                                                                  ,    
            1 i : 1; I,
                 HOLLY S. HASKEW (State Bar No. Pending)
      1
                                                                                                 * ' 1
                 BROBECK, PHLEGER & HARRISON LLp                                           cLcsK, 11.5
                                                                                         ~ " ; ' , i t
    
                 ccuR7
                 One Market, Spear Street Tower                                                        
    L l f g ; ( N , n
                 San Francisco, California 94105
                 Telephone:  (41 5 )  442-0900
                 Facsimile:  (4 15) 442- 10  10
    
                 Attorneys for Defendants
                 Red Brick Systems, Inc., Christopher G. Erickson,
                 Robert C. Hausmann, John  F. Shoch, Phillip M.  Fernandez
                 and Thomas W. Hem
           9
          10                                        UNITED STATES DISTRICT COURT
          11                                    NORTHERN DISTRICT OF CALIFORNIA
          12
          13     ROB BLACKTN, ARCHIE BRYANT, JOHN                    )         Case  No. No.
    P            CLEGG,  DR.  PHILLIP COHEN, ADAM B.                 )
          14     COHEN, LISA L. COHEN, MICHELLE                      1  DEFENDANTS' [CORRECTED]  REPLY
    
    SNIPPETS:
  • San Francisco, California 94105
  • Attorneys for Defendants
  • Red Brick Systems, Inc., Christopher G. Erickson,
  • Robert C. Hausmann, John F. Shoch, Phillip M. Fernandez
  • MEMORANDUM IN SUPPORT OF 15 HOLTMAN, SAM HORN, KEN LEVINE,
  • MOTION TO DISMISS AMENDED
  • PLAINTIFFS DO NOT ESTABLISH THAT ANY STATEMENT IS
  • Plaintiffs Acknowledge That Their Crucial Accounting Allegations
  • Plaintiffs Cannot Cure Their Failure To Plead Loss Causation.
  • PLAINTIFFS FAIL TO ESTABLISH ANY DEFENDANT'S SCIENTER
  • THE COMPLAINT DOES NOT CONTAIN CLAIMS AGAINST EACH
  • Plaintiffs Cannot Invoke The Group Pleading Exception to Save
  • SUPP.
  • 137 F. 3d 616 (9th Cir.
  • Sec. L. Rep. (CCH)
  • In re Burlington Coat Factoty Sec. Litig.,
  • 25 In re Silicon Graphics Inc.
  • Transfer Binder] Fed.
  • on authority rendered inapplicable by the Reform Act, in the process often badly misreading
  • the Amended Class Action Complaint must meet the 13
  • other pre-Reform Act cases is inappropriate since, as one court recently found regarding
  • Acknowledging that they must allege facts showing "who, what, when, where how"
  • for the alleged fraud and averring generally that they have done so, Opp.
  • 1997) (pre-Reform case rejects "conclusory allegations that
  • DEFENDANTS' [CORRECTEDl REPLY nlEhlORANDUM IN
  • allegations have been held to be impermissible exercises in hindsight, not facts showing
  • Compare Opp.

  • 6 . COMPLAINT B 2

    EXTRACTED KEY WORDS
    DEFENDANTS
    COMMON STOCK
    PLAINTIFFS
    REVENUES
    SALES
    CLASS ACTION
    ACT
    SECURITIES
    SHARES
    REPORT
    PRICE
    EXPENSES
    UNITED STATES
    DATA WAREHOUSING
    SAN FRANCISCO
    INDIVIDUAL DEFENDANTS
    MEMBERS
    TOTAL REVENUES
    MANAGEMENT
    CALIFORNIA
    DATA MINING
    RED BRICK WAREHOUSE
    VICE PRESIDENT
    LERACH LLP
    MATERIAL FACTS
    DEFENDANT SHOCH
    DEFENDANT ERICKSON
    SOFTWARE LICENSE REVENUES
    GAAP
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
        - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
    
    
                             UNITED STATES DISTRICT COURT
    
                            NORTHERN DISTRICT OF CALIFORNIA
    
    
    In re RED BRICK SYSTEMS, INC.            )  Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                    )  CLASS ACTION
    _____________________________________ ) ) FIRST AMENDED CLASS ACTION
    This Document Relates To:                ) ) COMPLAINT FOR VIOLATIONS
                                             )
    ALL ACTIONS.                                   OF
                                             )  THE SECURITIES EXCHANGE
                                             )
    _____________________________________  ACT OF 1934
                                             )
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP REED R. KATHREIN
  • San Francisco, CA 94108 Telephone:
  • Co-Lead Counsel for Plaintiffs
  • UNITED STATES DISTRICT COURT
  • FIRST AMENDED CLASS ACTION
  • This is a securities class action on behalf of all person, other than defendants and their
  • Red Brick sells software designed for data warehousing, data mart, data mining and on-line
  • This software is called Red Brick Warehouse.
  • While Red Brick's stock flew sky-high during the first few months, as the lockup agreements
  • Realizing that competition was getting tougher and that sustaining a high stock price would
  • In a January 15, 1997 press release announcing Red Brick's results for the fourth quarter and
  • Defendants also violated GAAP by deferring large amounts of expense, including research and
  • In addition to inflating earnings during the fourth quarter of 1996 by pushing expenses out
  • The result was to increase dramatically reported software licensing revenues in the fourth
  • Defendants also failed to disclose that management changes were believed by management to
  • Plaintiffs bring this action pursuant to §§10and 20of the Securities Exchange Act of 1934, 15
  • Further, defendant Red Brick has its principal place of business in this District at 485
  • Defendant Erickson signed the Company's Annual Report on Form 10-K for the fiscal year ended
  • Defendant Robert C. Hausmann was at all relevant times Vice President, Finance and
  • Shoch was one of three Board members who determined the price of Red Brick's stock in
  • Defendant Shoch signed the Company's Annual Report on Form 10-K for the fiscal year ended
  • This revenue performance included a 31% decline in software license revenues, which amounted
  • Software license revenues, which had consistently accounted for over 80% of Red Brick's total
  • Defendants were aware of, or consciously disregarded, but concealed from the public material

  • 7 . COMPLAINT B

    EXTRACTED KEY WORDS
    DEFENDANTS
    CLASS PERIOD
    COMMON STOCK
    PLAINTIFFS
    SECURITIES
    REVENUES
    CLASS ACTION
    VIOLATION
    SALES
    SHARES
    DAMAGES
    INDIVIDUAL DEFENDANTS
    EXPENSES
    MEMBERS
    SAN FRANCISCO
    TRANSACTIONS
    SECURITIES ANALYSTS
    MATERIAL FACTS
    GAAP
    EXCHANGE ACT
    MARKET PRICE
    DEFENDANT ERICKSON
    DEFENDANT SHOCH
    MISLEADING
    PERSONAL RED BRICK
    RED BRICK MANAGEMENT
    GENERAL PARTNER
    DEFENDANT HAUSMANN
    SUSTAINED DAMAGES
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    ROB BLACHKIN, ARCHIE BRYANT,                          )   Master File No.C-98-1206-MJJ
    JOHN CLEGG, DR. PHILLIP COHEN,                        )
    ADAM B. COHEN, LISA L. COHEN,                         ) CLASS ACTION
    MICHELLE GARFES, JEFF HOGAN,                          )
    RUSSELL HOLTMAN, SAM HORN,                            ) AMENDED CLASS ACTION
    KEN LEVINE, SEDDEIQUE M. MATEEN, ) COMPLAINT FOR VIOLATIONS
    ROBERT NERZ, ROBERT R. O'DELL,                        ) OF THE SECURITIES EXCHANGE
    PAUL PIKE, DAVID POSTULA,                             ) ACT OF 1934
    SRIKANTAN RAMABADRAN, DAVID &  ) Plaintiffs Demands A
    KATHLEEN RONSANI, and HOWARD &  ) Trial By Jury
    DOROTHY SILVER,                                       ))
                          Plaintiffs,                     )
    
    SNIPPETS:
  • SRIKANTAN RAMABADRAN, DAVID &) Plaintiffs Demands A KATHLEEN RONSANI, and HOWARD &) Trial By
  • This is a securities class action on behalf of all persons, other than defendants and their
  • During the Class Period, defendants perpetrated a scheme to inflate Red Brick's stock price
  • Red Brick overstated its earnings in violation of generally accepted accounting principles.
  • Defendants also violated GAAP by deferring large amounts of expense, including research and
  • These securities analysts included Jim Pickrel of Hambrecht & Quist and John Faig of
  • In addition to inflating earnings during the fourth quarter of 1996 by pushing expenses out
  • Company insiders took advantage of Red Brick's false financial statements by selling $3.7
  • This Court has jurisdiction over the subject matter of this action pursuant to Section 27 of
  • Many of the acts and transactions giving rise to the violations of law complained of herein,
  • Plaintiffs, as set forth below, made purchases of Red Brick common stock at inflated prices
  • Archie Bryant purchased 5,000 shares on March 19, 1997;
  • The following defendants are referred to herein as the "Individual Defendants":
  • Defendant Erickson signed the Company's Annual Report on Form 10-K for the fiscal year ended
  • Defendant Hausmann signed the Company's Annual Report on Form 10-K for the fiscal year ended
  • Since 1985, Shoch was a general partner at Asset Management Company, a venture capital firm.
  • Specifically, each Individual Defendant, apart from defendant Shoch, was personally involved
  • Defendant Shoch knew of "pull-ins" of revenues, "pushouts" of costs, and inadequate reserving
  • Because over 11 million shares of the Company's common stock were outstanding and because the
  • Plaintiffs' claims are typical of the claims of the members of the Class, because plaintiffs
  • Whether the Company's publicly disseminated releases and statements during the Class Period
  • They concealed the fact that defendants recorded sales before such sales were completed and
  • Defendants' misrepresentations and omissions operated to inflate or to maintain artificially
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and

  • 8 . CIVIL DOCKET FOR CASE 98-CV-1206

    EXTRACTED KEY WORDS
    ENTRY
    MOTION
    JOHN
    DEFENDANT
    RED BRICK SYSTEMS
    COUNSEL
    CLASS ACTION
    LEAD PLAINTIFF
    PLAINTIFF JOHN CLEGG
    JUDGE MARTIN
    PLAINTIFF ROBERT
    JENKINS
    PHILLIP
    CLASS ACTION COMPLAINT
    DISMISS AMENDED CLASS
    PLAINTIFF DAVID
    PLAINTIFF KATHLEEN RONSANI
    PLAINTIFF DOROTHY SILVER
    FERNANDEZ
    DEFENDANT THOMAS
    CERTIFICATE
    DEFENDANT CHRISTOPHER
    OPPOSITION
    PLAINTIFF SEDDEIQUE
    PLAINTIFF ROBERT NERZ
    PLAINTIFF PAUL PIKE
    PLAINTIFF DAVID POSTULA
    PLAINTIFF SRIKANTAN
    PLAINTIFF SRIKANTAN RAMABADRAN
    
    
    
    Docket as of December 6, 1999 [retrieved 12/7/99]
    
    Proceedings include all events.
    CONSOL
    3:98cv1206 Clegg, et al v. Red Brick Systems, et al
    REFDIS
    
                                                                     CONSOL
    REFDIS
                               U.S. District Court
          U.S. District for the Northern District of California (S.F.)
    
                       CIVIL DOCKET FOR CASE #: 98-CV-1206
    
    Clegg, et al v. Red Brick Systems, et al                         Filed:
    03/25/98
    Assigned to: Judge Martin J. Jenkins              Jury demand: Both
                     Referred to: Magistrate Judge James Larson
    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]
    
    
    3/25/98 1            COMPLAINT for violation of the Securities Exchange Act
    of
                         1934; Summons(es) issued; Fee status pd entered on
    3/25/98
                         in the amount of $ 150.00 (Receipt No. 46933); jury
    demand
                           [3:98-cv-01206] (bdb) [Entry date 03/26/98]
    
    3/25/98 2            NOTICE TO PRESERVE DOCUMENTS pursuant to Local Rule
                         16-1(g)(4) by Plaintiff John Clegg [3:98-cv-01206]
    (bdb)
                         [Entry date 03/26/98] [3:98cv1206]
    
    3/25/98 3            INITIAL CASE MANAGEMENT SCHEDULING ORDER FOR SECURITIES
                         CLASS ACTIONS SUBJECT TO PSLRA by Judge Martin J.
    Jenkins;
                         Plaintiff to file requisite certificate on 3/25/98;
    Last
    
    SNIPPETS:
  • [Entry date 03/26/98]
  • CLASS ACTIONS SUBJECT TO PSLRA by Judge Martin J. Jenkins;
  • Plaintiff to file requisite certificate on 3/25/98;
  • day for pltf to file copy of class action notice
  • Proof of service to be filed by 5/11/98; (cc: all counsel)
  • Plaintiff to file motion to serve as lead plaintiff 60 days
  • 5/1/98 6 PROOF OF SERVICE by Plaintiff John Clegg in 3:98-cv-01206
  • 5/5/98 8 RETURN OF SERVICE executed upon defts Red Brick Systems
  • Christopher G. Erickson, Robert C Hausmann, Phillip M
  • Fernandez Thomas W Henn, John F Shoch, Asset Mgt Assoc
  • 8/5/98 30 NOTICE OF ENTRY OF ORDER by defendant Red Brick Systems,
  • Red Brick Systems, defendant Christopher G. Erickson,
  • Fernandez, defendant Thomas W. Henn, defendant John F.
  • to dismiss amended class action complaint
  • Plaintiff Seddeique M. Mateen, Plaintiff Robert Nerz,
  • David Ronsani, Plaintiff Kathleen Ronsani, Plaintiff Howard
  • 11/13/98 43 COUNTER MOTION by Plaintiff Dorothy Silver,
  • Ronsani, Plaintiff Srikantan Ramabadran, Plaintiff David
  • Postula, Plaintiff Paul Pike, Plaintiff Robert R. O'Dell,
  • Silver, Plaintiff Kathleen Ronsani, Plaintiff David
  • Blackin in opposition to motion to dismiss amended class
  • Plaintiff David Postula, Plaintiff Paul Pike, Plaintiff

  • 9 . MOTION TO DISMISS COMPLAINT

    EXTRACTED KEY WORDS
    ALLEGATIONS
    RED BRICK
    COMPLAINT
    COURT
    FRAUD
    PLAINTIFFS
    REFORM
    FAIL
    PLEADING
    SHOCH
    FACTS
    HENN
    SATISFY
    FERNANDEZ
    ALLEGE
    SECURITIES FRAUD
    FAC
    TRANSFER BINDER
    CCH
    ACCOUNTING FRAUD
    REFORM ACT
    TRANSACTIONS
    DISTRICT COURT
    GROUP PLEADING
    INSUFFICIENT
    CALIFORNIA
    AMENDED COMPLAINT
    FINANCIAL STATEMENTS
    FACTS SHOWING
    
    
    
    STEVEN M. SCHATZ, State Bar No. 118356
    LAURIE B. SMILAN, State Bar No. 116740
    IGNACIO E. SALCEDA, State Bar No. 164017
    WILSON SONSINI GOODRICH & ROSATI
    Professional Corporation
    650 Page Mill Road
    Palo Alto, CA 94304-1050
    Telephone: (650) 493-9300
    Facsimile: (650) 565-5100
    
    Attorneys for Defendant
    RED BRICK SYSTEMS, INC.
    
    JOHN MISSING, State Bar No. 106044
    KEVIN P. MUCK, State Bar No. 120918
    BROBECK, PHLEGER & HARRISON LLP
    One Market Street, Spear Street Tower
    San Francisco, CA 94015
    Telephone: (415) 442-0900
    
    Attorneys for Defendants
    CHRISTOPHER G. ERICKSON, ROBERT C.
    HAUSMANN, JOHN F. SHOCH, PHILLIP M.
    FERNANDEZ and THOMAS W. HENN
    
                            UNITED STATES DISTRICT COURT
    
                           NORTHERN DISTRICT OF CALIFORNIA
    
    ____________________________________
                                               )   CASE NO.: C-98-1206-MJJ
    In re RED BRICK SYSTEMS, INC.              )
    SECURITIES LITIGATION,                     )  NOTICE OF MOTION AND MOTION
                                               )  TO DISMISS THE FIRST AMENDED
    ____________________________________ )  COMPLAINT AND MEMORANDUM
                                               )  OF POINTS AND AUTHORITIES IN
    This Document Relates To:                  )  SUPPORT OF MOTION TO DISMISS
                                               )  [filed Dec. 3, 1999]
         ALL ACTIONS.                          )
                                               )  Date: February 15, 2000
                                               )  Time: 9:30 a.m.
    ____________________________________ )  Before: Honorable Martin J. Jenkins
    
    
                                  TABLE OF CONTENTS
    
    
    SNIPPETS:
  • RED BRICK SYSTEMS, INC.
  • UNITED STATES DISTRICT COURT
  • ALLEGATIONS OF THE AMENDED COMPLAINT
  • THE NEW COMPLAINT FAILS TO SATISFY THE REFORM ACT'S HEIGHTENED STANDARD FOR PLEADING
  • Plaintiffs Have Again Failed To Allege Accounting Fraud With the Required Particularity.
  • Plaintiffs Continue To Fail To Allege Particular Facts That Justify
  • Imputing Statements Made By Market Analysts To Defendants.
  • Insufficient Under the Reform Act.
  • E. Plaintiffs Have Again Failed to State a Claim Against Defendants Shoch, Henn and
  • Sec. L. Rep. (CCH) ¶ 90,658 (1st Cir.
  • Head v. NetManage, Inc., [1999 Transfer Binder], Fed.
  • Yourish v. California Amplifier,
  • The Court's Order was very clear -- unsubstantiated allegations of accounting fraud are
  • Plaintiffs cannot state a claim for fraudulent accounting without alleging the particular
  • The Complaint fails to allege particular facts showing how in fact defendants knew of the
  • it is clear that plaintiffs cannot set forth any particular facts giving rise to a strong
  • FAC ¶¶ 1, 13.
  • Like the prior complaint, the FAC alleges that defendants published false financial
  • In its April 30, 1999 Order, the Court found that while the group pleading doctrine may have

  • 10 . DECLARATION OF IGNACIO E SALCEDA

    EXTRACTED KEY WORDS
    STATE BAR
    FILINGS
    RED BRICK
    DEFENDANTS
    HERETO
    RED BRICK SYSTEMS
    CALIFORNIA
    ATTORNEYS
    JOHN
    AMENDED COMPLAINT
    IGNACIO
    SALCEDA
    WILSON SONSINI GOODRICH
    ROSATI
    PALO ALTO
    CHRISTOPHER
    ERICKSON
    ROBERT
    HAUSMANN
    PHILLIP
    FERNANDEZ
    THOMAS
    HENN
    DISTRICT
    COURT
    DISMISS
    DECLARE
    LAW
    INDIVIDUAL DEFENDANTS
    
    
    
    STEVEN M. SCHATZ, State Bar No. 118356
    LAURIE B. SMILAN, State Bar No. 116740
    IGNACIO E. SALCEDA, State Bar No. 164017
    WILSON SONSINI GOODRICH & ROSATI
    Professional Corporation
    650 Page Mill Road
    Palo Alto, CA 94304-1050
    Telephone: (650) 493-9300
    Facsimile: (650) 565-5100
    
    Attorneys for Defendant
    RED BRICK SYSTEMS, INC.
    
    JOHN MISSING, State Bar No. 106044
    KEVIN P. MUCK, State Bar No. 120918
    BROBECK, PHLEGER & HARRISON LLP
    One Market Street, Spear Street Tower
    San Francisco, CA 94015
    Telephone: (415) 442-0900
    
    Attorneys for Defendants
    CHRISTOPHER G. ERICKSON, ROBERT C.
    HAUSMANN, JOHN F. SHOCH, PHILLIP M.
    FERNANDEZ and THOMAS W. HENN
    
                             UNITED STATES DISTRICT COURT
    
                           NORTHERN DISTRICT OF CALIFORNIA
    
    ____________________________________
                                                   )   CASE NO.: C-98-1206-MJJ
    In re RED BRICK SYSTEMS, INC.                  )
    SECURITIES LITIGATION,                         )  DECLARATION OF IGNACIO E.
                                                   )  SALCEDA IN SUPPORT OF MOTION
    ____________________________________ )  TO DISMISS THE FIRST AMENDED
                                                   )  COMPLAINT
    This Document Relates To:                      )  [filed Dec. 3, 1999]
                                                   )
         ALL ACTIONS.                              )  Date: February 15, 2000
                                                   )  Time: 9:30 a.m.
                                                   )  Before: Honorable Martin J. Jenkins
    ____________________________________ )
    
    I, Ignacio E. Salceda, declare as follows:
    
    I am an attorney duly licensed to practice law in the State of California and before this
    
    SNIPPETS:
  • JOHN MISSING, State Bar No. 106044 KEVIN P. MUCK, State Bar No. 120918
  • Attorneys for Defendants
  • NORTHERN DISTRICT OF CALIFORNIA
  • I, Ignacio E. Salceda, declare as follows:
  • I am an attorney duly licensed to practice law in the State of California and before this
  • I am an associate with Wilson Sonsini Goodrich & Rosati, counsel for defendant Red Brick
  • Attached hereto as Exhibit A is a true and correct copy of the Court's Order Granting
  • Attached hereto are true and correct copies of SEC filings on Form 4 during the period July
  • Attached as Exhibit E are copies of such filings for Christopher G. Erickson;
  • Attached as Exhibit F are copies of such filings for Phillip M. Fernandez;
  • Attached as Exhibit G are copies of such filings for Robert C. Hausmann;
  • Attached as Exhibit H are copies of such filings for Thomas W. Henn;
  • I declare under the penalty of perjury under the laws of the State of California that the
  • Executed December 3, 1999, in the City of Palo Alto, California.

  • 11 . STATEMENT OF RECENT DECISIONS IN SUPPORT OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    DEFENDANTS
    DISMISS
    STATE BAR
    MOTION
    COMPLAINT
    SUPPORT
    SALES
    INFERENCE
    ALLEGATIONS
    SCIENTER
    COURT
    ALLEGE
    STOCK
    FACTS
    STMT
    REFORM ACT
    STH4T
    SUPPORTING
    LEXIS
    FRAUDULENT
    NETMANAGE
    JUDGE BREYER
    SAC
    HARRISON LLP
    SPEAR STREET TOWER
    SAN FRANCISCO
    ATTORNEYS
    RED BRICK
    RED BRICK SYSTEMS
    
       1  TOWER  C.  SNOW, JR., State Bar No. 58342
                  JOHN  MISSING, State Bar No. 106044
      2  KEVIN P. MUCK, State Bar No. 12091 8
                  RACHAEL E. MENY, State Bar No. 178514
      3  BROBECK,  PHLEGER & HARRISON  LLP
                  One Market Street, Spear Street Tower
      4  San Francisco, CA  9401 5
                  Telephone:  (41  5) 442-0900
       5  Attorneys for Defendants
       6  CHRISTOPHER G. ERICKSON,  ROBERT C.
                  HAUSMANN, JOHN F. SHOCH,  PHILLIP M.
       7  FERNANDEZ  and  THOMAS W. HENN
    
       8  STEVEN  M.  SCHATZ, State Bar No. 118356
                  LAURIE  B.  SMILAN, State Bar No. 116740
       9  IGNACIO  E.  SALCEDA, State Bar No.  164017
                   WILSON  SONSINI  GOODRICH & ROSATI
    10  Professional Corporation
                  650 Page Mill Road
    1 1   Palo Alto, California  94304-1  050
                  Telephone:  (650) 493-9300
    12  Attorneys for Defendant
    13  RED  BRICK  SYSTEMS,  INC.
    14
    15                                                          UNITED  STATES  DISTRICT COURT
    16                                                      NORTHERN  DISTRICT OF CALIFORNIA
    17
    18  In re RED  BRICK  SYSTEMS,  INC.                                    )     CASE NO.: C-98-
    19  SECURITIES  LITIGATION                                              )     C1,ASS  ACTION
    20                                                                      )
                                                                            )     DEFENDANTS' 
    21                                                                      )
                                                                            1     RECENT DECISIONS IN 
                 This Document Relates To:                                  )     MOTION TO DISMISS 
    22                                                                      )     ACTION COMPLAINT
                             ALL  ACTIONS.                                  )
    23                                                                      )     Date:  February 5,
                                                                                  Time: 9:30 a.m.
    24                                                                      )
                                                                            )     Dept:  The Hon.
    25                                                                      )
    26
    27
    28
    
                  STh4T OF RECENT  DECISIONS
                                                      TN SUpT OF
                  MOTION  TO  DISMISS
                                               - CASE NO. C-98-1206-MJJ
    
    SNIPPETS:
  • TOWER C. SNOW, JR., State Bar No. 58342
  • BROBECK, PHLEGER & HARRISON LLP
  • One Market Street, Spear Street Tower
  • San Francisco, CA 9401 5
  • 13 RED BRICK SYSTEMS, INC. 14
  • STh4T OF RECENT DECISIONS
  • in support of their motion to dismiss the plaintiffs' class action Complaint.
  • RECENT DECISIONS SUPPORTING DEFENDANTS' MOTION TO DISMISS
  • LEXIS 20344 (S.D.N.Y.
  • 25 facts supporting plaintiffs' conclusory allegations that Defendants committed accounting
  • In Head v. NetManage, Inc., No. C 97-4385 CRB, 1998 U.S. Dist.
  • B), Judge Breyer held that:
  • fraudulent because it violated GAAP, NetManage, at the insistence of its auditors,
  • See SAC 7 108.
  • The 1995 annual report, which the Court may consider since the SAC discusses it,
  • that plaintiffs plead facts that give rise to a strong inference of the required state of
  • following quarter, does not support any inference of scienter, let alone the required strong
  • STMT OF RECENT DECISIONS
  • must allege, at a minimum, some particular transactions where revenues were improperly
  • factually why the challenged statements regarding increased competition and delayed sales
  • 16 dismiss and page 16 of Defendants' reply brief that the Securities Litigation Reform Act
  • 25 of the Defendants' total holdings in Red Brick stock and vested options.
  • were based upon conversations plaintiffs or their attorneys had with certain of the VARs,

  • 12 . SUPP REQUEST FOR JUDICIAL NOTICE

    EXTRACTED KEY WORDS
    SUPPORT
    UNITED STATES
    COURT
    MEMORANDUM
    DECLARANT
    PLAINTIFFS
    CALIFORNIA
    JUDICIAL NOTICE
    OPPOSITION
    DEFENDANTS
    MOTION
    DISMISS
    CIR
    NORTHERN DISTRICT
    SUPPLEMENTAL REQUEST
    AUTHORITIES
    SECURITIES
    THEREOF
    PARTIES
    LERACH
    LLP
    PURSUANT
    LOCAL RULE
    AMICUS
    AGE
    PARTY
    BUSINESS
    KEARNY STREET
    FLOOR
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                               UNITED STATES DISTRICT COURT
    
                            NORTHERN DISTRICT OF CALIFORNIA
    
    In re RED BRICK SYSTEMS, INC.                  )   Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                          ) )  CLASS ACTION
    __________________________________________ )  DATE: December 15, 1998
    This Document Relates To:                      ) )  TIME: 9:30 a.m.
                                                       CTRM: The Honorable
    ALL ACTIONS.                                   ) )  Martin J. Jenkins
    __________________________________________ ) )
                           PLAINTIFFS' SUPPLEMENTAL REQUEST
                           FOR JUDICIAL NOTICE IN SUPPORT OF
                     MEMORANDUM OF POINTS AND AUTHORITIES
    
    
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP REED R. KATHREIN LISA C. ATKINSON
  • WOLF POPPER LLP STEPHEN D. OESTREICH PATRICIA I. AVERY
  • NORTHERN DISTRICT OF CALIFORNIA
  • PLAINTIFFS' SUPPLEMENTAL REQUEST
  • IN SUPPORT OF OPPOSITION TO
  • Pursuant to Local Rule 7-3, plaintiffs respectfully submit the following Supplemental Request
  • On November 17, 1998, the Securities and Exchange Commission submitted its Supplemental
  • This Court may freely notice documents filed in other court proceedings.
  • Duckett v. Godinez, 67 F.3d 734, 741 (9th Cir.
  • See United States v. Stewart, 650 F.2d 178, 179 (9th Cir.
  • PURSUANT TO NORTHERN DISTRICT LOCAL RULE 23-2
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
  • That on November 19, 1998, declarant served the PLAINTIFFS' SUPPLEMENTAL
  • TO DISMISS by depositing a true copy thereof in a United States mailbox at San Francisco,
  • Declarant also caused a true copy of the above to be served via facsimile on the parties

  • 13 . SUPP APPENDIX IN SUPPORT OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    PLAINTIFFS
    DEFENDANTS
    JOHN
    MOTION
    DISMISS
    APPLE SOUTH
    ALLEGES
    STATE BAR
    ROBERT
    HAUSMANN
    SHOCH
    PHILLIP
    TEX
    AUTHORITY IS0 DEFENDANTS
    JOHN BRYANT
    MARTIN
    CHITWOOD
    JULES
    RULING
    EXHIBITS
    ACQUISITION RESTAURANTS QUIT
    TOMATO
    CHAIN
    FAILURE
    FORECASTS
    FLOR
    REASON
    CONFERENCC COMMITTEE
    NARRATIVE EXPLANATION
    
                1         TOWER C. SNOW  JR. State Bar  No.: 58342
                          JOHN B. MISSING State Bar No.: 106044
                2         KEVIN  P.  MUCK State Bar No.: 12091 8
                          RACHAEL E. MENY State Bar No.: 1785 14
                3         HOLLY S. HASKEW (State Bar No. Pending)
                          BROBECK,  PHLEGER & HARRISON LLP
                4         One Market, Spear Street Tower
                          San Francisco, California 94 105
                5         Telephone: (4 1 5)  442-0900
                          Facsimile: (4 1 5) 442-  10 1 0
                6         Attorneys for Defendants
                7         Red Brick Systems, Inc., Christopher G. Erickson,
                          Robert C. Hausmann, John F. Shoch, Phillip M. Fernandez
                8         and Thomas W.  Henn
                9
               10                                                             UNITED STATES DISTRICT
              11                                                           NORTHERN DISTRICT OF
               12
               13         ROB  BLACKIN,  ARCHIE  BRYANT,  JOHN                                       ) 
                           CLEGG,  DR.  PHILLIP  COHEN,  ADAM                                 B.     )
               14          COHEN,  LISA                       L. COHEN,  MICHELLE                    ) 
                           GARFES,  JEFF  HOGAN,  RUSSELL                                            1 
               15          HOLTMAN,  SAM  HORN,  KEN  LEVINE,                                        ) 
                           SEDDEIQUE M. MATEEN,  ROBERT  NERZ,  )                                      
               16          ROBERT  R.  O'DELL,  PAUL  PIKE,  DAVID                                   ) 
                           POSTULE,  SRIKANTAN  RAMABADRAN,                                          ) 
               17          DAVID & KATHLEEN  RONSANI,                                 and            1
                           HOWARD & DOROTHY  SILVER,                                                 1 
               18                                                                                    1 
                                                                      Plaintiffs,                    1 
               19                                                                                    ) 
                                                     V.                                              )
              20                                                                                     1
                           RED  BRICK  SYSTEMS,                           INC.,                      )
              21           CHRISTOPHER  G.  ERICKSON,  ROBERT  C.  )
                           HAUSMANN,  JOHN  F. SHOCH,  PHILLIP  M.  )
              22           FERNANDEZ,  and  THOMAS                              W. HENN,             )
               23                                                     Defendants.                    1
               24
               25
               26
               27
               28
                                                    SUPPLEMENTAL  APPENDIX  OF UNREPORTED  AND  OTHER 
                                                                                           Case No,
    SFRLIUI\ASD\
    5161M901(12-@POl~     .)
    
    
    
    SNIPPETS:
  • JOHN B. MISSING State Bar No.:
  • RACHAEL E. MENY State Bar No.:
  • HAUSMANN, JOHN F. SHOCH, PHILLIP M.)
  • Tex.
  • SUPPLEMENTAL APPENDIX OF UNREPORTED AND OTHER AUTHORITY IS0 DEFENDANTS' MOTION TO DISMISS
  • John BRYANT, et al., Plaintiffs,
  • Martin D. Chitwood, Mr., Atlanta, GA, Jules
  • (Cite as:
  • Plaintiffs' motion to strike is GRANTED with respect to exhibits K, L, M, N, 0, Q,
  • Acquisition restaurants quit after Apple South
  • The Tomato Rumba's chain was a failure,
  • below forecasts and below the level at which they
  • stated, "[flor this reason, the Conferencc Committee
  • narrative explanation of material variances of actual
  • Plaintiff alleges that such
  • interest of all parties to secure a final ruling on the
  • Plaintiffs Robert Coates and Management Insights,

  • 14 . REQUEST FOR JUDICIAL NOTICE

    EXTRACTED KEY WORDS
    LEGISLATION
    UNITED STATES
    STANDARD
    JUDICIAL NOTICE
    PLEADING STANDARD
    SECOND CIRCUIT
    SAN FRANCISCO
    DEFENDANTS
    ACT
    DISTRICT COURTS
    PLAINTIFFS
    SUPPORT
    MOTION
    FACTS
    DISMISS
    SECURITIES
    CALIFORNIA
    AUTHORITIES
    PUBLIC RECORDS
    UNIFORM STANDARDS ACT
    PSLRA
    OPPOSITION
    PRESIDENT
    REFORM ACT
    RECKLESSNESS
    SENATOR DODD
    LEGISLATIVE HISTORY
    INTERPRETATION
    MEMORANDUM
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                               UNITED STATES DISTRICT COURT
    
                           NORTHERN DISTRICT OF CALIFORNIA
    
    In re RED BRICK SYSTEMS, INC.                  )   Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                          ) )  CLASS ACTION
    __________________________________________ )  DATE: December 15, 1998
    This Document Relates To:                      ) )  TIME: 9:30 a.m.
                                                       CTRM: The Honorable
    ALL ACTIONS.                                   ) )  Martin J. Jenkins
    __________________________________________ ) )
                     PLAINTIFFS' REQUEST FOR JUDICIAL NOTICE
                     IN SUPPORT OF MEMORANDUM OF POINTS AND
    
    
    
    
    SNIPPETS:
  • UNITED STATES DISTRICT COURT
  • NORTHERN DISTRICT OF CALIFORNIA
  • PLAINTIFFS' REQUEST FOR JUDICIAL NOTICE
  • AUTHORITIES IN SUPPORT OF OPPOSITION
  • Pursuant to Federal Rules of Evidence 201, 803(public records exception to hearsay rules) and
  • Should this Court feel compelled to look beyond the statutory text of the Private Securities
  • Section 21Dof the PSLRA says that if plaintiffs "may recover money damages only on proof that
  • Nonetheless, legislative history confirms that §21Dadopts the Second Circuit standard for
  • Both the PSLRA's Senate and Conference Reports confirm that the "strong inference" standard Second Circuit's pleading standard.The legislators whose votes overrode his veto agreed.As the
  • Congress decided that the Second Circuit's pleading standard and recklessness liability
  • In passing the 1998 legislation, Congress relied on its understanding of the federal
  • Just as S.1260's Statement of Managers notes that "certain Federal district courts" have
  • Senator Dodd, a PSLRA co-author and Manager of both the PSLRA and the Uniform Standards Act,
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and

  • 15 . MEMO IN OPPOSITION TO MOTION TO DISMISS

    EXTRACTED KEY WORDS
    PLAINTIFFS
    COMPLAINT
    FINANCIALS
    SUPP
    COURT
    FRAUD
    CIR
    FY96
    ALLEGE
    RED BRICK
    LOSS
    LITIG
    MOTION
    STANDARDS
    ALLEGATIONS
    SAN FRANCISCO
    ACCOUNTING
    TRANSFER BINDER
    CCH
    UNITED STATES
    PARTICULARITY
    CALIFORNIA
    LEXIS
    INDIVIDUAL DEFENDANTS
    MISLEADING
    CIRCUMSTANTIAL EVIDENCE
    MARKSMAN PARTNERS
    STOCK PRICE
    PUBLIC STATEMENTS
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                               UNITED STATES DISTRICT COURT
    
                            NORTHERN DISTRICT OF CALIFORNIA
    
    In re RED BRICK SYSTEMS, INC.                  )   Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                          ) )  CLASS ACTION
    __________________________________________ )  DATE: December 15, 1998
    This Document Relates To:                      ) )  TIME: 9:30 a.m.
                                                       CTRM: The Honorable
    ALL ACTIONS.                                   ) )  Martin J. Jenkins
    __________________________________________ ) )
                       PLAINTIFFS' MEMORANDUM OF POINTS AND
                     AUTHORITIES IN SUPPORT OF THEIR OPPOSITION
                           TO DEFENDANTS' MOTION TO DISMISS
    
    
    
    SNIPPETS:
  • San Francisco, CA 94108 Telephone:
  • Co-Lead Counsel for Plaintiffs
  • UNITED STATES DISTRICT COURT
  • TO DEFENDANTS' MOTION TO DISMISS
  • DEFENDANTS DISREGARD RULE 12STANDARDS
  • THE COMPLAINT STATES A CLAIM AGAINST EACH DEFENDANT
  • The Complaint Alleges Defendants' Financial Fraud With Particularity
  • Defendants' Other Class Period Statements Are False And Misleading
  • F. Supp.
  • Allison v. California Adult Authority,
  • 419 F.2d 822 (9th Cir.
  • Sec. L. Rep. (CCH) ¶90,244 (W.D.
  • LEXIS 3349 (S.D.N.Y.
  • [1996-1997 Transfer Binder]
  • In re Apple Computer Sec. Litig.,
  • Marksman Partners, L.P. v. Chantal Pharm.
  • Lead Plaintiffs brought these consolidated securities class actions for violations of the 996, in violation of Generally Accepted Accounting Principles and the Exchange Act.
  • Defendants also misrepresented Red Brick's performance during its first quarter ended March
  • Defendants respond to the Complaint's specific allegations in two ways: that the Complaint is
  • Plaintiffs have sufficiently alleged that Red Brick's 4Q96 and FY96 financial statements, and
  • Fully cognizant of these true facts, defendants fixed upon a scheme which was designed to,
  • Defendants' fraud also allowed their venture capitalist backers to withdraw at a substantial
  • On April 15, 1997, Red Brick stunned the public market with reports of a $6.4 million net
  • Here, the Complaint similarly charges that Red Brick's revenues and income for 4Q96 and FY96
  • More to the point, plaintiffs allege that Red Brick, not its outside auditors, committed
  • To prove causation, Ninth Circuit law does not require that defendants must admit in

  • 16 . COUNTER-MOTION TO STRIKE

    EXTRACTED KEY WORDS
    COMPLAINT
    PLAINTIFFS
    ALLEGATIONS
    COURT
    MOTION
    SCIENTER
    STOCK
    SAN FRANCISCO
    UNITED STATES
    DISTRICT COURT
    DISPUTE
    REFERENCES
    SUPP
    RED BRICK
    SHARES
    CALIFORNIA
    PROXY STATEMENT
    CLASS PERIOD
    MISSING DECL
    VESTED STOCK OPTIONS
    INDIVIDUAL DEFENDANTS
    INFERENCE
    INSIDER TRADING
    NORTHERN DISTRICT
    COUNTER-MOTION
    AUTHENTICITY
    SUBMISSION
    STOCK PRICE
    CAUTIONARY LANGUAGE
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                               UNITED STATES DISTRICT COURT
    
                           NORTHERN DISTRICT OF CALIFORNIA
    
    In re RED BRICK SYSTEMS, INC.                  )   Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                          ) )  CLASS ACTION
    __________________________________________ )  DATE: December 15, 1998
    This Document Relates To:                      ) )  TIME: 9:30 a.m.
                                                       CTRM: The Honorable
    ALL ACTIONS.                                   ) )  Martin J. Jenkins
    __________________________________________ ) )
                NOTICE OF MOTION AND COUNTER-MOTION TO STRIKE
    
    
    
    
    
    SNIPPETS:
  • UNITED STATES DISTRICT COURT
  • NOTICE OF MOTION AND COUNTER-MOTION TO STRIKE
  • The Form 4s And Proxy Statement Are Not Properly Considered To Disprove Plaintiffs' Scienter
  • These Documents Are Outside The Complaint 2.
  • Defendants' Submission Of The Forms 10-Q Not Referenced In The Complaint Should Be Stricken
  • PLEASE TAKE NOTICE that on December 15, 1998, at 9:30 a.m., before the Honorable Martin J.
  • Among the documents appended thereto are copies of three Forms 10-Q, Missing Decl., Exs.
  • G, H, I, J and K, for each of the Individual Defendants, purporting to record their sales and
  • Defendants' use of the Form 4s, coupled with the April 15, 1997 Proxy Statement, to contest
  • defendants here cite unauthenticated documents that are outside the Complaint for the truth
  • defendants' submission should be stricken.
  • If a document is not expressly mentioned in the complaint or its authenticity is challenged,
  • Corp., 927 F. Supp.
  • Allegations of insider trading, suspicious in time or amount, demonstrate motive.
  • Hausmann sold 15,000 shares of stock on February 3, 1997, for proceeds of $354,000.
  • Under the circumstances alleged in plaintiffs' Complaint, however, postponing purchases of
  • Vested stock options are non-transferrable, confer no voting rights, entitle their holder to
  • The Form 4's Accuracy And Authenticity Is In Dispute
  • For the foregoing reasons, plaintiffs respectfully request that this Court strike the Missing
  • (cautionary language cannot immunize representations that loan loss reserves comply with

  • 17 . CORRECTED COUNTER-MOTION TO STRIKE

    EXTRACTED KEY WORDS
    COMPLAINT
    PLAINTIFFS
    ALLEGATIONS
    COURT
    MOTION
    SCIENTER
    CIR
    SAN FRANCISCO
    SUPP
    STOCK
    UNITED STATES
    LITIG
    DISTRICT COURT
    CALIFORNIA
    DISPUTE
    REFERENCES
    RED BRICK
    PROXY STATEMENT
    CLASS PERIOD
    MISSING DECL
    VESTED STOCK OPTIONS
    INDIVIDUAL DEFENDANTS
    INFERENCE
    INSIDER TRADING
    SAN DIEGO
    NORTHERN DISTRICT
    COUNTER-MOTION
    AUTHENTICITY
    SUBMISSION
    
    
    
    MILBERG WEISS BERSHAD
      HYNES & LERACH LLP
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
         - and -
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    Co-Lead Counsel for Plaintiffs
    
                               UNITED STATES DISTRICT COURT
    
                           NORTHERN DISTRICT OF CALIFORNIA
    
    In re RED BRICK SYSTEMS, INC.                  )   Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                          ) )  CLASS ACTION
    __________________________________________ )  DATE: December 15, 1998
    This Document Relates To:                      ) )  TIME: 9:30 a.m.
                                                       CTRM: The Honorable
    ALL ACTIONS.                                   ) )  Martin J. Jenkins
    __________________________________________ ) )
                            CORRECTED NOTICE OF MOTION
                            AND COUNTER-MOTION TO STRIKE
    
    
    
    
    SNIPPETS:
  • UNITED STATES DISTRICT COURT
  • CORRECTED NOTICE OF MOTION
  • AND COUNTER-MOTION TO STRIKE
  • The Form 4s And Proxy Statement Are Not Properly Considered To Disprove Plaintiffs' Scienter
  • These Documents Are Outside The Complaint
  • The Form 4's Accuracy And Authenticity Is In Dispute
  • Defendants' Submission Of The Forms 10-Q Not Referenced In The Complaint Should Be Stricken
  • F. Supp.
  • 697 F.2d 1297 (9th Cir.
  • Gruntal & Co. v. San Diego Bancorp.,
  • In re Apple Computer Sec. Litig.,
  • McCalden v. California Library Ass'n,
  • PLEASE TAKE NOTICE that on December 15, 1998, at 9:30 a.m., before the Honorable Martin J.
  • Among the documents appended thereto are copies of three Forms 10-Q, Missing Decl., Exs.
  • G, H, I, J and K, for each of the Individual Defendants, purporting to record their sales and
  • Defendants' use of the Form 4s, coupled with the April 15, 1997 Proxy Statement, to contest
  • defendants here cite unauthenticated documents that are outside the Complaint for the truth
  • defendants' submission should be stricken.
  • If a document is not expressly mentioned in the complaint or its authenticity is challenged,
  • Allegations of insider trading, suspicious in time or amount, demonstrate motive.
  • Vested stock options are non-transferrable, confer no voting rights, entitle their holder to
  • For the foregoing reasons, plaintiffs respectfully request that this Court strike the Missing

  • 18 . MOTION TO DISMISS AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    FACTS
    RED BRICK
    REFORM ACT
    PLAINTIFFS
    AMENDED COMPLAINT
    STANDARDS
    SUPP
    SHOCH
    MOTION
    CIR
    VIOLATION
    MISSING
    FERNANDEZ
    HENN
    SCIENTER
    ALLEGATIONS
    ALLEGED MISSTATEMENTS
    CLASS PERIOD
    SECURITIES
    LEGAL STANDARDS
    MISLEADING
    GROUP PLEADING
    JOHN MISSING
    AUTHORITIES
    ACCOUNTING
    PARTICULARIZED FACTS
    SILICON GRAPHICS
    CCH
    RED BRICK SYSTEMS
    
    
    
    TOWER C. SNOW, JR. (State Bar No. 58342)
    JOHN MISSING (State Bar No. 106044)
    KEVIN P. MUCK (State Bar No. 120918)
    RACHAEL E. MENY (State Bar No. 178514)
    HOLLY S. HASKEW (State Bar No. Pending)
    BROBECK, PHLEGER & HARRISON LLP
    One Market, Spear Street Tower
    San Francisco, CA 94105
    Telephone: (415) 442-0900
    Facsimile: (415) 442-1010
    
    Attorneys for Defendants
    Red Brick Systems, Inc., Christopher G. Erickson,
    Robert C. Hausmann, John F. Shoch,
    Phillip M. Fernandez and Thomas W. Henn
    
                                          UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    ROB BLACKIN, ARCHIE BRYANT, JOHN                         )   No. C-98-1206-MJJ
    CLEGG, DR. PHILLIP COHEN, ADAM B.                        )
    COHEN, LISA L. COHEN, MICHELLE                           ) CLASS ACTION
    GARFES, JEFF HOGAN, RUSSELL                              )
    HOLTMAN, SAM HORN, KEN LEVINE,                           ) DEFENDANTS' NOTICE OF
    SEDDEIQUE M. MATEEN, ROBERT NERZ,                        ) MOTION AND MOTION TO
    ROBERT R. O'DELL, PAUL PIKE, DAVID                       ) DISMISS AMENDED CLASS
    POSTULE, SRIKANTAN RAMABADRAN,                           ) ACTION COMPLAINT;
    DAVID & KATHLEEN RONSANI, and                            ) MEMORANDUM OF POINTS AND
    HOWARD & DOROTHY SILVER,                                 ) AUTHORITIES IN SUPPORT
                                                             ) THEREOF
                          Plaintiffs,                        ) [filed Oct. 7, 1998]
               vs.                                           ) Date: December 15, 1998
                                                             ) Time: 9:30 a.m.
    RED BRICK SYSTEMS, INC., CHRISTOPHER  ) Place: Courtroom 11
    G. ERICKSON, ROBERT C. HAUSMANN,                         )      The Hon. Martin J. Jenkins
    JOHN F. SHOCH, PHILLIP M. FERNANDEZ,   )
    and THOMAS W. HENN,                                      ))
                          Defendants.                        )
    _________________________________________ ))
    
    
                                             TABLE OF CONTENTS
    
    
    
    
    SNIPPETS:
  • RED BRICK SYSTEMS, INC., CHRISTOPHER) Place:
  • JOHN F. SHOCH, PHILLIP M. FERNANDEZ,)
  • NOTICE OF MOTION AND MOTION
  • SUMMARY OF ARGUMENT AND LEGAL STANDARDS
  • Legal Standards for Deciding a Motion to Dismiss Under the Reform Act
  • There Are No Facts to Suggest That Red Brick Improperly Recognized Revenues,
  • None of the Other Allegedly Misleading Statements Made During the Class Period is Actionable
  • Defendants Had No Duty to Disclose Declining Sales
  • Plaintiffs' Vague Allegations of Additional Statements Purportedly Made During the Class
  • The Reform Act Requires Particular Facts Demonstrating A Strong Inference Of Fraudulent Intent
  • Plaintiffs Are Unable to Plead Scienter with Respect to Red Brick's Financial Results,
  • THE AMENDED COMPLAINT DOES NOT SET FORTH FACTS SUFFICIENT TO STATE A CLAIM AGAINST EACH OF
  • F. Supp.
  • 901 F.2d 696 (9th Cir.
  • Sec. L. Rep. (CCH) ¶ 99,043 (S.D.N.Y.
  • In re Silicon Graphics Inc.
  • Returning Without Approval the Private Securities
  • this Notice; the following Points and Authorities; the
  • accompanying Declaration of John Missing ("J.
  • First, they have not identified a single transaction on which revenue was allegedly
  • The Amended Complaint is based on two categories of alleged misstatements: the promulgation
  • Plaintiffs' claim for violation of Section 10fails because they have not alleged
  • Plaintiffs have not alleged facts explaining why each individual defendant is purportedly

  • 19 . CIVIL DOCKET FOR CASE 98-CV-1207

    EXTRACTED KEY WORDS
    PLAINTIFF
    COUNSEL
    MOTION
    LCC
    PLAINTIFF KEN LEVINE
    SECURITIES
    ACT
    CO-LEAD COUNSEL
    APPOINTED LEAD
    EXHANGE ACT
    JUDGE MARTIN
    JENKINS
    CERTIFICATE
    DOCKET
    CONSOLIDATING
    DISTRICT
    JENKINS GRANTING
    DEFTS RED BRICK
    CHRISTOPHER
    ERICKSON
    ROBERT
    HAUSMANN
    PHILLIP
    FERNANDEZ
    THOMAS
    HENN
    PROPOSED ORDER
    PURPOSES
    LERACH
    
    
    
    Docket as of July 7, 1998 [retrieved 4/22/99]
    
    Proceedings include all events.
    CONSOL
    3:98cv1207        Levine v. Red Brick Systems, et al
    
                                                                     CONSOL
                               U.S. District Court
          U.S. District for the Northern District of California (S.F.)
    
                       CIVIL DOCKET FOR CASE #: 98-CV-1207
    
    Levine v. Red Brick Systems, et al                               Filed:
    03/25/98
    Assigned to: Judge Martin J. Jenkins              Jury demand: Plaintiff
    Demand: $0,000                                    Nature of Suit: 850
    Lead Docket: 98-CV-1206                           Jurisdiction: Federal
    Question
    
    Cause: 15:78m(a) Securities Exchange Act
    
    [Party and Counsel List]
    
    
    3/25/98 1            COMPLAINT Summons(es) issued; Fee status pd entered on
                         3/25/98 in the amount of $ 150.00 ( Receipt No.
    46934);
                         jury demand     [3:98-cv-01207] (ab) [Entry date
    03/26/98]
    
    3/25/98 2            NOTICE by Plaintiff to preserve documents [3:98-cv-
    01207]
                         (ab) [Entry date 03/26/98] [3:98cv1207]
    
    3/25/98 3            ORDER RE COURT PROCEDURE and SCHEDULE by Judge Maxine
    M.
                         Chesney : Subject to private securities litigation
    report
                         act (cc: all counsel) (ab) [Entry date 03/26/98]
                         [3:98cv1207]
    
    3/27/98 4            NOTICE by Plaintiff of related case(s) C-98-1206 MJJ
                         [3:98-cv-01207] (ab) [3:98cv1207]
    
    4/9/98       5       ORDER by Judge Martin J. Jenkins granting related
    case
    
    SNIPPETS:
  • Docket as of July 7,
  • U.S. District for the Northern District of California
  • Cause: 15:78mSecurities Exchange Act
  • [Party and Counsel List]
  • jury demand [Entry date
  • 4/9/98 5 ORDER by Judge Martin J. Jenkins granting related case
  • 5/5/98 6 RETURN OF SERVICE executed upon defts Red Brick Systems
  • Christopher G. Erickson, Robert C Hausmann, Phillip M
  • Fernandez Thomas W Henn, John F Shoch, Asset Mgt Assoc
  • 5/26/98 7 NOTICE OF MOTION AND MOTION WITH MEMORANDUM OF POINTS AND
  • Levine to be appointed lead plaintiff of the Securities
  • Exhange Act of 1934 and for approval of lead plaintiff's
  • choice of co-lead counsel with Notice set for 6/30/98 at
  • 9:30 am (lcc)
  • 5/26/98 -- RECEIVED Stipulation and Proposed Order (Plaintiff Ken
  • Levine) consolidating cases for all purposes
  • 5/26/98 9 CERTIFICATE by Plaintiff Ken Levine of Stephen D. Oestreich
  • 5/26/98 11 CERTIFICATE by Plaintiff Ken Levine of William S. Lerach
  • 7/6/98 16 ORDER by Judge Martin J. Jenkins granting motion to be

  • 20 . MOTION AND MEMO IN SUPPORT OF MOTION

    EXTRACTED KEY WORDS
    CLEGG GROUP
    KATHREIN
    MOTION
    CO-LEAD COUNSEL
    EXCHANGE ACT
    APPOINTED LEAD PLAINTIFF
    RED BRICK
    SECURITIES
    PSLRA
    SAN FRANCISCO
    DEFENDANTS
    CLASS MEMBERS
    KATHREIN DECL
    MILBERG WEISS
    WOLF POPPER
    BERGER
    MONTAGUE
    WOLF POPPER LLP
    LEAD PLAINTIFF PURSUANT
    MEMORANDUM
    LERACH LLP
    PHILADELPHIA
    AUTHORITIES
    FEDERAL RULES
    BRICK COMMON STOCK
    INDIVIDUAL DEFENDANTS
    MILBERG WEISS BERSHAD
    CLASS PERIOD
    FEDERAL SECURITIES LAWS
    
    
    
    MILBERG WEISS BERSHAD
    nbsp; HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
         - and -
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    [Proposed] Co-Lead Counsel for Plaintiffs
    
    [Additional counsel appear on signature page.]
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    JOHN CLEGG, On Behalf of Himself                   )    No. C-98-1206-MJJ
    and All Others Similarly Situated,                 )
                                                       )
                          Plaintiff,                   )
               vs.                                     )
                                                       )  CLASS ACTION
    RED BRICK SYSTEMS, INC., et al.,                   )
                                                       )  DATE: June 30, 1998
                          Defendants.                  )  TIME: 9:30 a.m.
                                                       )  CTRM: The Honorable Martin J. Jenkins
    
    SNIPPETS:
  • San Francisco, CA 94108 Telephone:
  • Philadelphia, PA 19103 Telephone: 215/875-3000
  • PLAINTIFFS' NOTICE OF MOTION AND MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT
  • MOTION TO BE APPOINTED LEAD PLAINTIFF PURSUANT TO §21D
  • OF THE SECURITIES EXCHANGE ACT OF 1934 AND FOR APPROVAL OF
  • LEAD PLAINTIFF'S CHOICE OF CO-LEAD COUNSEL
  • The Clegg Group Satisfies The PSLRA And Should Be Appointed Lead Plaintiff
  • The Clegg Group Has Complied With The PSLRA's Requirements
  • PLEASE TAKE NOTICE that on June 30, 1998 at 9:30 a.m., or as soon thereafter as the matter d hereby do, move the Court, under the Securities Exchange Act of 1934, as amended by §21Dof the
  • The Clegg Group also moves the Court to approve their selection of Milberg Weiss Bershad
  • This motion is based on this Notice of Motion and the attached Memorandum of Points and
  • The plaintiffs in each of these actions allege violations of the Exchange Act and Rule 10b-5
  • Each Movant purchased Red Brick securities during the Class Period and suffered damages as a
  • the Individual Defendants knew that Red Brick lacked sufficient sales staff and potential
  • 15 U.S.C. §78u-4(Kathrein Decl.,
  • Further, §21Dof the Exchange Act directs the court to consider any motions by plaintiffs, or
  • The Clegg Group therefore has a very substantial financial interest in the relief sought by
  • The Exchange Act provides that, in addition to possessing the largest financial interest in

  • 21 . DECLARATION OF REED R KATHREIN IN SUPPORT OF THE STIPULATION

    EXTRACTED KEY WORDS
    EXHIBIT
    APPOINTMENT
    DECLARATION
    COUNSEL
    MOTION
    RED BRICK
    RED BRICK SYSTEMS
    SAN
    LEAD PLAINTIFF PURSUANT
    SECURITIES EXCHANGE ACT
    EXCHANGE ACT
    CLEGG
    LERACH LLP
    CALIFORNIA
    ORDER GRANTING
    KATHREIN
    SAN FRANCISCO
    CO-LEAD COUNSEL
    CONSOLIDATING
    APPROVING
    FIRM RéSUM
    PURCHASES
    LITIG
    SUPPORT
    STIPULATION
    PURPOSES
    LAW
    LEVINE
    CIV
    
    
    
    MILBERG WEISS BERSHAD
    nbsp; HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    KAREN L. THOMAS (149536)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
         - and -
    REED R. KATHREIN (139304)
    LISA C. ATKINSON (163320)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
    
    WOLF POPPER LLP
    STEPHEN D. OESTREICH
    PATRICIA I. AVERY
    845 Third Avenue
    New York, NY 10022
    Telephone: 212/759-4600
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    [Proposed] Co-Lead Counsel for Plaintiffs
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    JOHN CLEGG, On Behalf of Himself                   )    No. C-98-1206-MJJ
    
    and All Others Similarly Situated,                 )
                                                       )
                          Plaintiff,                   )   CLASS ACTION
               vs.                                     ) )   DATE: June 30, 1998
    RED BRICK SYSTEMS, INC., et al.,                   )  TIME: 9:30 a.m.
                                                       )  CTRM: The Honorable Martin J. Jenkins
                          Defendants.                  )
                                                       )
    ___________________________________ )   No. C-98-1207-MJJ
    KEN LEVINE, On Behalf of Himself                   )
    
    SNIPPETS:
  • San Francisco, CA 94108 Telephone:
  • Co-Lead Counsel for Plaintiffs
  • DECLARATION OF REED R. KATHREIN IN SUPPORT OF THE STIPULATION AND ORDER CONSOLIDATING CASES
  • I am an attorney duly licensed to practice law in California and before this Court.
  • I am a partner with the law firm vof Milberg Weiss Bershad Hynes & Lerach LLP, one of the
  • Clegg v.
  • Red Brick Systems, Inc., et al.
  • I make this Declaration in support of the Stipulation and Order Consolidating Cases For All
  • Exhibit 1: Order relating Levine v.
  • Exhibit 2: Notice of Related Case in Levine v.
  • Relevant excerpts of §21D of the Securities Exchange Act of 1934;
  • Movants' Purchases, Sales and Losses for Red Brick Systems, Inc. stock;
  • In re Diamond Multimedia Systems, Inc., Sec. Litig., No. C 96-2644 SBA, Order Re Appointment
  • Sec. Litig., Master File No. C97-402WD, Order Appointing Lead Plaintiffs (W.D.
  • Sec. Litig., NO. C-97-20059 RMW, Order Granting Plaintiffs' Motion for Appointment of Lead
  • Malin v. IVAX Corp., et al., Case No. 96-1843-CIV-MORENO, Order Granting
  • Chan, et al. v. Orthologic Corp., et al., No. CIV 96-1514 PHX RCB, Order (D.
  • Firm Résumé of Milberg Weiss Bershad Hynes & Lerach LLP;
  • I declare under penalty of perjury under the laws of the United States of America that the
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and

  • 22 . STATEMENT OF NON-OPPOSITION TO THE MOTION

    EXTRACTED KEY WORDS
    LEAD PLAINTIFF
    SAN FRANCISCO
    DEFENDANTS
    MOTION
    BROBECK
    PHLEGER
    HARRISON LLP
    APPOINTMENT
    COUNSEL
    ACT
    CLASS CERTIFICATION
    BUSINESS
    DECLARE
    PRACTICE
    JOHN
    CSB
    MARKET
    SPEAR STREET TOWER
    ROBERT
    CO-LEAD
    LEAD PLAINTIFF PURSUANT
    SECURITIES EXCHANGE ACT
    PROCEEDING
    CORRESPONDENCE
    LAWS
    THEREOF
    REFORM ACT
    ADEQUACY
    CLASS REPRESENTATION
    
    
    
    JOHN B. MISSING (CSB No. 106044)
    KEVIN P. MUCK (CSB No. 120918)
    RACHAEL E. MENY (CSB No. 178514)
    HOLLY HASKEW (CSB No. 336164)
    BROBECK, PHLEGER & HARRISON LLP
    One Market
    Spear Street Tower
    San Francisco, CA 94105
    Telephone: (415) 442-0900
    
    Attorneys for Defendants Red Brick Systems, Inc.,
    Christopher G. Erickson, Robert C. Hausman, Phillip
    M. Fernandez, Thomas W. Henn and John F. Shoch
    
    
    
                             UNITED STATES DISTRICT COURT
    
                           NORTHERN DISTRICT OF CALIFORNIA
    
    
    
    In re RED BRICK SYSTEMS, INC.                )  Master File No. C-98-1206-MJJ
    SECURITIES LITIGATION                        )  [filed Jun. 9, 1998]
    ___________________________________ ) )  CLASS ACTION
    This Document Relates To:                    )  DEFENDANTS' STATEMENT OF
         ALL ACTIONS.                            )  NON-OPPOSITION TO THE CLEFF
    ___________________________________ ) )  GROUP'S MOTION TO BE
                                                    APPOINTED LEAD PLAINTIFF
                                                    PURSUANT TO § 21D(a)(3)(B) OF THE
                                                    SECURITIES EXCHANGE ACT OF
                                                    1934 AND FOR APPROVAL OF LEAD
                                                    PLAINTIFF'S CHOICE OF CO-LEAD
                                                    COUNSEL
    
                                                    Date: June 30, 1998
                                                    Time: 9:30 a.m.
                                                    Ctrm: The Honorable Martin J. Jenkins
    
    Plaintiffs Rob Blackin, Archie Bryant, John Clegg, Dr. Phillip Cohen, Adam B. Cohen,
    Lisa L. Cohen, Michelle Garfes, Jeff Hogan, Russell Holtman, Sam Horn, Ken Levine,
    Seddeique M. Mateen, Robert Nerz, Robert R. O'Dell, Paul Pike, David Postula,
    Srikantan Ramabadran, David and Kathleen Ronzani and Howard and Dorothy Silver
    ("Plaintiffs") seek appointment as Lead Plaintiff and seek approval for their selection of
    Co-Lead Counsel pursuant to Section 21D(a)(3)(B) of the Private Securities Litigation
    Reform Act. Defendants Red Brick Systems, Inc., Christopher G. Erickson, Robert C.
    
    SNIPPETS:
  • GROUP'S MOTION TO BE
  • Defendants Red Brick Systems, Inc., Christopher G. Erickson, Robert C.
  • Plaintiffs' consolidated complaint must be filed within thirty days after an order
  • Defendants expect to contest the legal adequacy and factual accuracy of the Complaint's
  • However, if the Court permits this action to proceed beyond the pleading stage, Defendants
  • While Federal Rule of Civil Procedure 23 considerations are relevant in determining Lead
  • (appointment of Lead Plaintiff is not dispositive with respect to the ultimate certification
  • 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' STATEMENT OF NON-OPPOSITION TO THE CLEFF GROUP'S MOTION TO BE APPOINTED LEAD
  • TO § 21DOF THE SECURITIES EXCHANGE ACT OF 1934 AND
  • FOR APPROVAL OF LEAD PLAINTIFF'S CHOICE OF CO-LEAD COUNSEL
  • on the partyin this action by placing a true copy thereof in a sealed envelopeaddressed as
  • I declare under penalty of perjury under the laws of the State of California that the
  • I am readily familiar with Brobeck, Phleger & Harrison LLP's practice for collecting and

  • 23 . COMPLAIN C

    EXTRACTED KEY WORDS
    RED BRICK
    CLASS PERIOD
    COMMON STOCK
    PLAINTIFF
    PRICE
    ERICKSON
    CLASS ACTION
    SECURITIES
    REVENUES
    MISLEADING
    DAMAGES
    SCHEME
    MEMBERS
    EXPENSES
    LAW
    INDIVIDUAL DEFENDANTS
    TRANSACTIONS
    ANNUAL REPORT
    PURCHASED RED BRICK
    MARKET PRICE
    EXCHANGE ACT
    MATERIAL FACTS
    MISREPRESENTATIONS
    SOFTWARE LICENSING
    PERSONAL RED BRICK
    RED BRICK WAREHOUSE
    SUSTAINED DAMAGES
    REVENUE GROWTH
    RED BRICK HOLDINGS
    
    
    
    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 -
    REED R. KATHREIN (139304)
    222 Kearny Street, 10th Floor
    San Francisco, CA 94108
    Telephone: 415/288-4545
    
    BERGER & MONTAGUE, P.C.
    TODD S. COLLINS
    JACOB A. GOLDBERG
    1622 Locust Street
    Philadelphia, PA 19103
    Telephone: 215/875-3000
    
    THE OLSEN LAW FIRM
    KURT OLSEN
    2300 N. Street, N.W.
    Suite 600
    Washington, DC 20037
    Telephone: 202/663-9331
    
    Attorneys for Plaintiff
    
                                         UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    KEN LEVINE, Individually                              No. 98-1207-MMC
    And On Behalf of All Others                           [filed Mar. 25, 1998]
    Similarly Situated,                                   CLASS ACTION
                          Plaintiff,                      COMPLAINT FOR
               vs.                                        VIOLATION OF THE
                                                          SECURITIES EXCHANGE
    RED BRICK SYSTEMS, INC.,                              ACT OF 1934
    CHRISTOPHER G. ERICKSON, PHILLIP
    M. FERNANDEZ, THOMAS W. HENN and                      Plaintiff Demands
    ROBERT C. HAUSMANN,                                   A Trial By Jury
    
                          Defendants.
    ______________________________________
    
    SNIPPETS:
  • THE OLSEN LAW FIRM KURT OLSEN