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CLOROX CLASS ACTION LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: CCAL159445, CourtName: CLASS ACTION CASES, State: CA California, UniqueCaseRef: LCD>CCAL159445, Cholestech, Ldx System, First Brands, Revenue, Market, Distributors, Compl, Consol, Pinckert, Scienter, Analyzers, Pleading, Financials, Complaint, Class Action, Inference, Securities, Class Period, Stock, Clorox, Materially Misleading, Sales, Plead, Robert, Pleading Standard, Health Promotion, Installed Base, Sac, Particularity, Fails, State Bar, Lexis, Litig, California, Pharmacy Market, Distribution Channel, Physician Office Lab, Cir, Recklessly Disregarding, Promotions, Allegations , ContentID: 120249573

Case Documents
1 2001-06-08 REPLY MEMORANDUM IN SUPPORT OF MOTION
[ see first page and extracted highlights below  ] ItemID: 122149
24 pages
PDF
2 2000-09-06 DOCKET
[ see first page and extracted highlights below  ] ItemID: 122148
3 pages
HTML
3 2000-01 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 122147
8 pages
PDF
4 1999-06-25 AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 122146
81 pages
HTML
5 1999-01-14 TABLE OF AUTHORITIES
[ see first page and extracted highlights below  ] ItemID: 122150
5 pages
PDF
Total Documents: 5 documents , 121 pages
Price: $ 39.95


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1 . REPLY MEMORANDUM IN SUPPORT OF MOTION

EXTRACTED KEY WORDS
DEFENDANTS
FIRST BRANDS
COMPL
CONSOL
SCIENTER
PLEADING
FINANCIALS
INFERENCE
CLOROX
PLEAD
PLEADING STANDARD
SAC
COURT
PARTICULARITY
FAILS
STATE BAR
SECURITIES
PROMOTIONS
ALLEGATIONS
TRADE LOADING
PRACTICES
LEXIS
PROJECTIONS
EPLY MEMO I/S/O
FERNANDEZ
REFORM ACT
CITING SAC
ACQUISITION
REASONABLENESS


 1  MELVIN R. GOLDMAN (State Bar No. 34097)
            JORDAN ETH (State Bar No. 121617)
 2  DOROTHY FERNANDEZ (State Bar No. 184266)
            MIA A. MAZZA (State Bar No. 184158)
 3  MORRISON & FOERSTER LLP
            425 Market Street
 4  San Francisco, California  94105-2482
            Telephone:  (415) 268-7000
 5  Telefacsimile: (415) 268-7522

 6  Attorneys for Defendants
            THE CLOROX COMPANY, G. CRAIG SULLIVAN,
 7  GERALD E. JOHNSTON, KAREN M. ROSE,
            WILLIAM V. STEPHENSON, FIRST BRANDS
 8  CORPORATION, THOMAS H. ROWLAND and
            DONALD A. DESANTIS
 9
10                                               UNITED STATES DISTRICT COURT
11
                                              NORTHERN DISTRICT OF CALIFORNIA
12
13   In re THE CLOROX COMPANY SECURITIES  Case No.  C-99-4471-SC
14  LITIGATION                                                        CLASS ACTION
15                                                                    DEFENDANTS' REPLY
16                                                                   MEMORANDUM OF POINTS AND
                                                                     AUTHORITIES IN SUPPORT OF
17                                                                   MOTION TO DISMISS SECOND
                                                                     CONSOLIDATED AMENDED
18  This Document Relates to:                                        COMPLAINT

19  ALL ACTIONS                                                      Date:     June 8, 2001
                                                                     Time:  10:00 a.m.
20                                                                   Judge:  Hon. Samuel Conti
                                                                     Courtroom:  One, 17th Floor
21

22
23

24

25

26

27
SNIPPETS:
  • MELVIN R. GOLDMAN (State Bar No. 34097)
  • DOROTHY FERNANDEZ
  • 13 In re THE CLOROX COMPANY SECURITIES Case No. C-99-4471-SC
  • DEFS' R EPLY MEMO I/S/O MTN TO DISMISS CONSOL.
  • 2ND AM. COMPL.
  • OF DEFENDANTS' FINANCIAL STATEMENTS
  • II. PLAINTIFFS' CLAIM THAT CLOROX OMITTED
  • STRONG INFERENCE OF SCIENTER
  • PLEADING STANDARD
  • THE SAC SHOULD BE DISMISSED WITH PREJUDICE
  • practices do not cause improper accounting,, so the SAC's allegations of promotional
  • 11 allegation that "Clorox's acquisition of First Brands has been a disaster for investors."
  • As the Reform Act was designed to rid companies and courts of this type of suit,
  • 19 pleading standard found in the Federal Rules of Civil Procedure," and that plaintiffs now
  • the "court must.
  • Plaintiffs also do not refute that the SAC fails to cite a single "pulled in"
  • 22 particularity even before the Reform Act).
  • (PM at 8, citing SAC ¶¶ 61-66.)
  • 15 be sufficient to plead improper accounting practices.
  • LEXIS 19966, at *11 28 (N.D.
  • inventory in its own warehouses contradicts, rather than supports, plaintiffs' trade loading
  • 22 failing to disclose First Brands' promotions, because the market was already aware of this
  • SAC does not contain facts showing that Defendants knew the full extent of First Brands'
  • First Brands' financials from Clorox's post -merger charges, the non sequitur re-emerges in
  • 21 previously rejected by the Court - the acquisition, the desire to sell stock, and the
  • the reasonableness of Clorox's financial projections.

  • 2 . DOCKET

    EXTRACTED KEY WORDS
    VDF
    DEFENDANT
    CIVIL ACTION
    ENTRY
    CONSOLIDATED PLAINTIFF
    JUDGE
    ORDER CONSOLIDATING
    BUCHMEYER
    COUNSEL
    REFERENCE MATTER
    DOCKET
    FUTURE PLEADINGS
    ISSUED-4
    MCALEER
    KEVIN
    THOMPSON
    JERE
    CYR
    LEO
    CAPROCK
    HECTOR ALFARO
    DEMAND
    JURY
    ASSIGNMENT
    COURT
    DISTRICT
    CONSOLIDATED LEAD
    SPECIFICS
    JUDGE PAUL STICKNEY
    
    Case docket was last updated on: 09/06/00.
    
    
    Docket as of September 6, 2000 5:11 pm               Page 1
    
    Proceedings include all events.                                   M-STI
    3:00cv1613 Alfaro, et al v. Caprock Comm, et al                          LEAD
                                                                             JURY
                                                                M-STI  LEAD
                                                                JURY
                           U.S. District Court
                   Northern District of Texas (Dallas)
    
                   CIVIL DOCKET FOR CASE #: 00-CV-1613
    
    Alfaro, et al v. Caprock Comm, et al                        Filed: 07/26/00
    Assigned to: Chief Judge Jerry Buchmeyer     Jury demand: Plaintiff
    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
    
    
    HECTOR ALFARO, On behalf of       Marc R Stanley, Attorney at Law
    himself and all others            214/443-0358 FAX
    similarly situated                (COR LD NTC ret)
         plaintiff                    Stanley Mandel & Iola
                                      3100 Monticello Ave
                                      Suite 750
                                      Dallas, TX 75205
                                      USA
                                      214/443-4300
    
    
    ANGELA AMOS, On behalf of         Thomas E Bilek, Attorney at Law
    herself and all others            713/227-9404 FAX
    similarly situated                (COR LD NTC ret)
         consolidated plaintiff       Hoeffner Bilek & Eidman
                                      440 Louisiana
                                      Suite 720
                                      Houston, TX 77002-1634
                                      USA
                                      713/227-7720
    
    
    TERESA A CICALA                   Marc R Stanley, Attorney at Law
         consolidated plaintiff       (See above)
    
    SNIPPETS:
  • Case docket was last updated on:
  • U.S. District Court
  • Northern District of Texas
  • Assigned to: Chief Judge Jerry Buchmeyer Jury demand: Plaintiff
  • HECTOR ALFARO, On behalf of Marc R Stanley, Attorney at Law
  • consolidated plaintiff Hoeffner Bilek & Eidman
  • CAPROCK COMMUNICATIONS CORP
  • KEVIN W MCALEER
  • defendant Leo J Cyr, defendant Jere W Thompson Jr, Kevin W
  • McAleer (Issued-4) (vdf) (Entry date 07/27/00)
  • 7/26/00 -- PRELIMINARY ASSIGNMENT TO Magistrate Judge Paul Stickney
  • 8/28/00 3 ORDER consolidating cases...The above referenced case is
  • CONSOLIDATED with civil action number 3:00-CV-1730-R and
  • (See order for specifics)
  • 8/28/00 -- Consolidated Lead Case
  • 9/6/00 4 ORDER consolidating cases..The above reference matter is
  • All future pleadings shall be filed
  • Buchmeyer) Copies to counsel: 09/06/00 Page1

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    CLOROX COMMON STOCK
    HARES
    ROBBINS
    HODMS
    LER4CH
    LAMJJML
    WFILBERG WEISS BERSW
    
    . -  '  10/03/99                       14:04
    v.     lO;oi~'sS                                                      4082956895
                         14:06  FAX  4082956895
                   ,
     1                                                                                          ---
                                           ----
    
    
    
    
    
                          1  wfILBERG WEISS BERSW
                                       HyNES&LERAcHUP
                          2  LAmJJml  s. LER4CH  (68581)
                                       3ATRIcK  1. COUGmm  (111070)
                          3  GLEN  J. HODMS  (131674)
                                       CIRJC B. HULETT  (110726)
                          4  >ARREN  1, ROBBINS  (168593)
                                       ;OO West Broadway, Suite 1800
                          5             II Diego, CA  92101
                                        kphone:  619/231-1058
                          6             hlJ.QWAY  &  ASSOCIATES
                          7             
    
    
    SNIPPETS:
     
  • wfILBERG WEISS BERSW
  • LAmJJml s.
  • LER4CH
  • GLEN J. HODMS
  • 4>ARREN 1, ROBBINS
  • 10 hares of Clorox common stock as detailed in the attached certification,

  • 4 . AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    DEFENDANTS
    LDX SYSTEM
    PLAINTIFFS
    REVENUE
    MARKET
    DISTRIBUTORS
    PINCKERT
    ANALYZERS
    COMPLAINT
    CLASS ACTION
    CLASS PERIOD
    STOCK
    MATERIALLY MISLEADING
    SALES
    ROBERT
    HEALTH PROMOTION
    INSTALLED BASE
    CALIFORNIA
    PHARMACY MARKET
    SECURITIES
    DISTRIBUTION CHANNEL
    PHYSICIAN OFFICE LAB
    RECKLESSLY DISREGARDING
    ACCOUNTING
    UNITED STATES
    CHOLESTEROL
    JANNEY COMPLAINT
    HEALTH MANAGEMENT SYSTEMS
    SECONDARY OFFERING
    
    LIONEL Z. GLANCY #134180
    TRACY L. THROWER #145782
    MICHAEL GOLDBERG #188669
    LAW OFFICES OF LIONEL Z. GLANCY
    1801 Avenue of the Stars, Suite 311
    Los Angeles, California  90067
    Phone:    (310) 201-9150
    Fax:      (310) 201-9160
    
    Lead Counsel For Plaintiffs
    
    ROBERT C. SUSSER
    ROBERT C. SUSSER, P.C.
    6 East 43rd Street, Suite 1900
    New York, New York 10017-4609
    
    Attorneys For Plaintiffs
    (Additional Counsel Appear on Signature Page)
    
                     UNITED STATES DISTRICT COURT
    
               FOR THE NORTHERN DISTRICT OF CALIFORNIA
    
    ROBERT REE, FRANK BIANCHI, MARK    )  Civ. Action No.
    BOUQUET, TIMOTHY CASTELL, AMY      )  C99-0562 MMC
    CHU, ELYSE COLEMAN, LISA           )
    CUSTODIO, ROBERT CUVA, MILES       )
    DAUB, DAVID DREWEK, DONALD         )  Hon. Maxine M. Chesney
    FOUGHT, ALLEN GERSTON, ALBERT      )
    JACKSON, DARYL JOHNSON, RICHARD    )
    KAIN, SAID KHATIB, CARL KIRCHER,   )  AMENDED CLASS ACTION
    LARRY KOLODEY, NICHOLAS LAURORA,   )  COMPLAINT
    JENNINE LINDBERG, PATRICIA         )  (filed Jun. 25, 1999)
    MALLOY, STUART MATT, TODD          )
    MATTHEWS, DAVID MILLER, KURT       )  JURY TRIAL DEMANDED
    MITCHELL, ROBERT MORRISON, MYRON   )
    OLSON, SHARON QUERCIOLI, MARTHA    )
    RABKIN, MARIO SCOMA, BEN           )
    STACKLER, JAMES STAUBER, MARTHA    )
    STOVALL, ANTHONY STRACHAN, FRANK   )
    STROCK, GENE TORBECK, THOMAS       )
    TRENKMANN, TED VALK, BARRY         )
    WEISMAN, BERNARD WIEST and         )
    DOUGLAS WRAY,                      )
                                       )
         Plaintiffs,                   )
                                       )
         v.                            )
    
    SNIPPETS:
  • Lead Counsel For Plaintiffs
  • ROBERT C. SUSSER, P.C. 6 East 43rd Street, Suite 1900
  • UNITED STATES DISTRICT COURT
  • FOR THE NORTHERN DISTRICT OF CALIFORNIA
  • complaint, allege the following upon personal knowledge as to
  • familiar with the business of Cholestech Corporation
  • and analysis of accounting rules and related literature.
  • Plaintiffs bring this action as a class action on
  • to recover damages caused by defendants' violations
  • flagship product, the LDX System.
  • During the Class Period,
  • revenue with respect to these "deals;"
  • Cholestech's shelves to distributors' shelves to meet
  • Analyzers sold during the fourth quarter of 1998 were sold on a
  • terminated by defendant Pinckert,
  • support the illusion of market acceptance for the LDX Analyzer,
  • results and on Forms 10-Q and 10-K, filed with the Securities
  • Wray purchased the common stock of Cholestech during the Class
  • have been materially misleading to the investing public.
  • testing and measuring total cholesterol,
  • Office Laboratory, Health Promotion and Pharmacy
  • Physician Sales & Services, Inc.
  • Pharmacy market using Bergen Brunswig Drug Company.
  • The Class Period Commences With Cholestech's Secondary Offering
  • distribution channel" with excess product and book all such
  • Janney Complaint, from 1992 through 1996, Janney reported
  • The installed base of Cholestech LDX Systems in the physician office lab market increased to
  • purchase refrigerators for Health Management Systems so that it
  • despite actual knowledge or recklessly disregarding

  • 5 . TABLE OF AUTHORITIES

    EXTRACTED KEY WORDS
    CIR
    SUPP
    LEXIS
    COMPL
    CONSOL
    CCH
    BINDER
    TECH
    ELECS
    MASS
    MMC
    POLAROID
    ARIZ
    PETSMART
    PEOPLESOFT
    TEX
    PARACELSUS
    OXFORD HEALTH PLANS
    MCKESSON HBOC
    HI/FN
    ASSOC
    KINION
    HALL
    CRB
    DURA PHARM
    CONVERGENT TECH
    CBT GROUP PLC
    BANKAMERICA
    MEDHEKAR
    
    
     1                                                             TABLE OF AUTHORITIES
    
     2                                                                             CASES
    
     3  Acito v. IMCERA Group, Inc.,
                     47 F.3d 47 (2d Cir. 1995) ................................
    8
     4  Allen Neuman Prods., Inc. v. Albright,
     5               862 F.2d 1388 (9th Cir. 1988) ................................
    
     6  Cooper v. Pickett,
                     137 F.3d 616 (9th Cir. 1997) ................................
     7  Copperstone v. TSCI Corp.,
     8               No. C 97-3495 SBA,
                     1999 U.S. Dist. LEXIS 20978 (N.D. Cal. Jan. 14,
     9  Desaigoudar v. Meyercord,
    10               223 F.3d 1020 (9th Cir. 2000) ................................
    
    11  DiLeo v. Ernst & Young,
                     901 F.2d 624 (7th Cir. 1990) ................................
    
    12  Fisher v. Acuson Corp.,
    13               No. C 93-20477 RMW (EAI),
                     1995 U.S. Dist. LEXIS 19968 (N.D. Cal. Apr. 26, 1995)
    14  Friedberg v. Discreet Logic,
    15               959 F. Supp. 42 (D. Mass. 1997) ................................
    
    16  Goldberg v. Primax Elecs., Ltd.,
                     No. C-00-2525 PJH (N.D. Cal. Feb. 2, 2001)................................
    17  Harris v. Ivax,
    18               182 F.3d 799 (11th Cir. 1999) ................................
    
    19  Heliotrope Gen., Inc. v. Ford Motor Co.,
                     189 F.3d 971 (9th Cir. 1999) ................................
    20  Hockey v. Medhekar,
    21               30 F. Supp. 2d 1209 (N.D. Cal. 1998)................................
    
    22  In re BankAmerica Corp. Secs. Litig.,
                     78 F. Supp. 2d 976 (E.D. Mo. 1999) ................................
    23  In re CBT Group PLC Secs. Litig.,
    24               No. C-98-21014-RMW (N.D. Cal. Jan. 2, 2001)................................
    
    25  In re Cirrus Logic Secs. Litig.,
                     946 F. Supp. 1446 (N.D. Cal. 1996) ................................
    26  In re Convergent Tech. Secs. Litig.,
    27               948 F.2d 507 (9th Cir. 1991) ................................
    
    
    SNIPPETS:
  • F.2d 1388 (9th Cir.
  • LEXIS 20978 (N.D.
  • F. Supp.
  • Mass.
  • 16 Goldberg v. Primax Elecs., Ltd.,
  • 20 Hockey v. Medhekar,
  • 22 In re BankAmerica Corp.
  • 23 In re CBT Group PLC Secs. Litig.,
  • 26 In re Convergent Tech.
  • CONSOL.
  • 2ND AM. COMPL.
  • In re Dura Pharm.
  • No. 99-1815 CRB (N.D.
  • In re Hall, Kinion & Assoc., Inc.
  • In re Hi/fn, Inc.
  • In re McKesson HBOC,
  • 10 In re Oxford Health Plans, Inc., Secs. Litig.,
  • 11 In re Paracelsus Corp.
  • Tex.
  • 13 In re PeopleSoft, Inc., Secs. Litig.,
  • Binder] Fed.
  • Sec. L. Rep. (CCH) ¶ 91,035
  • 15 In re PETsMART, Inc.
  • Ariz.
  • 16 In re Polaroid Corp.
  • No. C99-0562 MMC (N.D.
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