MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
- and -
REED R. KATHREIN (139304)
JEFFREY W. LAWRENCE (166806)
KIMBERLY C. EPSTEIN (169012)
222 Kearny Street, 10th Floor
San Francisco, CA 94108
Telephone: 415/288-4545
WOLF POPPER LLP
LESTER L. LEVY
MICHAEL A. SCHWARTZ
845 Third Avenue
New York, NY 10022
Telephone: 212/759-4600
[Proposed] Co-Lead Counsel for Plaintiffs
[Additional counsel appear on signature page.]
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
E&L BALLAN, TRUSTEES FOR THE BENEFIT
OF E&L BALLAN, On Behalf of Themselves
and All Others Similarly Situated,
Plaintiffs,
vs.
ADAC LABORATORIES, et al.,
Defendants.
___________________________________
No. C-98-4934-MHP
CLASS ACTION
DATE: April 5, 1999
TIME: 2:00 p.m.
CTRM: The Honorable Marilyn Hall Patel
THE BALLAN PLAINTIFF GROUP'S NOTICE OF MOTION AND MOTION AND
MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF
MOTION FOR APPOINTMENT OF LEAD PLAINTIFF AND APPROVAL OF
LEAD PLAINTIFF'S CHOICE OF CO-LEAD COUNSEL
TABLE OF CONTENTS
I. INTRODUCTION
II. SUMMARY OF THE ACTION
III. PROCEDURAL BACKGROUND
IV. ARGUMENT
A. The Ballan Plaintiff Group Is The Most Adequate Plaintiff Under The
Exchange Act
B. The Ballan Plaintiff Group Is Qualified Under Rule 23
C. The Court Should Approve The Ballan Plaintiff Group's Choice Of Co-Lead
Counsel
V. CONCLUSION
NOTICE OF MOTION AND MOTION
TO: ALL PARTIES AND THEIR ATTORNEYS OF RECORD
PLEASE TAKE NOTICE that on April 5, 1999 at 2:00 p.m., or as soon thereafter
as this matter may be heard by and before the Honorable Marilyn Hall Patel,
United States District Court, Northern District of California, located
at 450 Golden Gate Avenue, San Francisco, California 94102, plaintiffs
and the additional class members who have submitted signed certifications,
as required by §21D(a)(2)(A)(i)-(vi) of the Securities Exchange Act
of 1934 ("Exchange Act") (collectively, "Ballan Plaintiff
Group" or "Movants"),(1)
will, and hereby do, move this Court for an Order:
1. Appointing the Ballan Plaintiff Group, as defined in the accompanying
Memorandum of Law, pursuant to §21D(a)(3)(B) of the Exchange Act,
Lead Plaintiff in the above-captioned securities class action lawsuits;
2. Approving their selection of Milberg Weiss Bershad Hynes & Lerach
LLP and Wolf Popper LLP as Co-Lead Counsel; and
3. Authorizing Lead Plaintiff and their Co-Lead Counsel to designate
a maximum of seven individual members of the Ballan Plaintiff Group to
give testimony on behalf of the Class in subsequent proceedings.
The motion is based upon this Notice, the Memorandum of Points and Authorities
filed in support thereof, the Declaration of Jeffrey W. Lawrence filed
herewith and such other pleadings and argument as may be presented at the
hearing on this motion.
MEMORANDUM OF POINTS AND AUTHORITIES
I. INTRODUCTION
The Ballan Plaintiff Group submits this memorandum in support of their
motion for (a) the appointment of all Movants as Lead Plaintiff; (b) approval
of the Ballan Plaintiff Group's choice of Co-Lead Counsel in this action
and any other actions that may be consolidated therewith; and (c) authorization
for Movants and their Co-Lead Counsel to designate a maximum of seven individual
members of the Ballan Plaintiff Group to give testimony on behalf of the
Class in subsequent proceedings.(2)
The Ballan Plaintiff Group collectively purchased 121,258 shares of
ADAC common stock during the Class Period and has incurred out-of-pocket
losses of approximately $337,022.(3) See
Movants' Chart of Purchases, Sales and Losses, and Certifications, Lawrence
Decl., Exs. A and B, respectively. Movants' substantial financial
interest in the relief sought by the Class satisfies the requirements of
§21D(a)(3)(B) of the Exchange Act, 15 U.S.C. §78u-4(a)(3)(B)
(iii)(I).(4) Movants also satisfy the requirement
of Rule 23 of the Federal Rules of Civil Procedure because their claims
are typical of the claims of the Class, will fairly and adequately represent
the interests of the Class (since their interests are closely aligned with
the members of the Class) and have retained counsel who are highly experienced
in prosecuting securities class actions.
Accordingly, the Ballan Plaintiff Group is "the most adequate plaintiff,"
as defined by §21D(a)(3)(B) of the Exchange Act, 15 U.S.C. §78u-4(a)(3)(B),
and collectively should be appointed Lead Plaintiff with approval of its
choice of Milberg Weiss Bershad Hynes & Lerach LLP ("Milberg Weiss")
and Wolf Popper LLP ("Wolf Popper") as Co-Lead Counsel.
II. SUMMARY OF THE ACTION
Plaintiff E&L Ballan's Complaint for Violation of the Federal Securities
Laws, filed on December 29, 1998 (the "Complaint"), asserts
a cause of action for ADAC's violation of §§10(b) and 20 of the
Exchange Act and Rule 10b-5 promulgated thereunder, on behalf of a Class
of purchasers of ADAC common stock during the Class Period.(5)
The Complaint alleges that, pursuant to a scheme to artificially inflate
the price of ADAC's securities, defendants made a series of false and misleading
statements during the Class Period about ADAC's business prospects and
financial results. ¶¶21-56. Defendants were consistently able
to report "record results," quarter after quarter, making it
appear that the Company was growing, its products were succeeding and its
business was expanding. E.g., ¶¶22, 25, 49. Defendants'
scheme was successful until December 29, 1998 when the Company was forced
to announce that it needed to restate its financial results for the previously
reported 1996, 1997 and 1998 fiscal years. ¶57. Upon this revelation,
the market price of ADAC shares dropped to $19-5/8 from the previous day's
close of $27.125, a 28% drop. ¶58.
III. PROCEDURAL BACKGROUND
Section 21D of the Exchange Act requires that early notice be provided
to advise class members of their right to move the court to be appointed
"lead plaintiff" and provides that any member or members of
the class may seek appointment as lead plaintiff within 60 days of
publication of the early notice. On December 29, 1998, early notice
was published in the Ballan action, and Movants now timely request
that the Court appoint the Ballan Plaintiff Group as Lead Plaintiff and
approve its choice of Co-Lead Counsel.
Plaintiffs have filed concurrently herewith a Motion to Consolidate
Related Actions Against ADAC Laboratories, Inc. for Violations of the Securities
Exchange Act of 1934 which seeks to consolidate the above-captioned action
with the following actions in this District: Field v. ADAC Laboratories,
No. C-98-4936-MHP; Reynolds v. ADAC Laboratories, No. C-98-4941-MHP;
Ingersoll v. ADAC Laboratories, No. C-98-4939-MHP; Park East,
Inc. v. Lowe, No. C-98-4950-MHP; Davidson v. ADAC Laboratories,
No. C-99-0019-MHP; Ansnes v. ADAC Laboratories, No. C-99-0024-MHP;
Fernandez v. Lowe, No. C-99-0061-MHP; Bowdoin v. Lowe, No.
C-99-0147-MHP; Polk v. ADAC Laboratories, No. C-99-0166-MHP; and
High v. ADAC Laboratories, No. C-99-0723-SC. The consolidation motion
must be adjudicated prior to ruling upon lead plaintiff pursuant to §21D.
15 U.S.C. §78u-4(a)(3)(B)(ii).
Once the cases are consolidated, the Ballan Plaintiff Group hereby moves
that it be appointed as Lead Plaintiff for the class.
IV. ARGUMENT
A. The Ballan Plaintiff Group Is The Most Adequate Plaintiff Under
The Exchange Act
The Ballan Plaintiff Group constitutes the "most adequate plaintiff"
and should therefore be apopinted Lead Plaintiff for the class. Section
21D(a)(3)(B), 15 U.S.C. §78u-4(a)(3)(B) of the Exchange Act provides
that a court:
[S]hall appoint as lead plaintiff the member or members of the
purported plaintiff class that the court determines to be most capable
of adequately representing the interests of class members (hereafter in
this paragraph referred to as the "most adequate plaintiff")
in accordance with this subparagraph.(6)
Thus, a "member or members" of the class or a "person
or group of persons" may combine to constitute "the largest
financial interest" and thereby jointly serve as the "most adequate
plaintiff." Id.; see also In re Diamond Multimedia
Sys., Inc., Sec. Litig., No. C-96-2644-SBA, Order re Appointment of
Lead Plaintiff and Lead Counsel at 2-4 (N.D. Cal. Jan. 13, 1997) (members
of group seeking lead plaintiff status can pool together their shares to
form the largest financial interest), Lawrence Decl., Ex. C.(7)
Moreover, the Exchange Act provides for a presumption that:
the most adequate plaintiff in any private action arising under this
title is the person or group of persons that --
(aa) has either filed the complaint or made a motion in response to
a notice;
(bb) in the determination of the court, has the largest financial interest
in the relief sought by the class; and
(cc) otherwise satisfies the requirements of Rule 23 of the Federal
Rules of Civil Procedure.
Section 21D(a)(3)(B)(iii)(I), 15 U.S.C. §78u-4(a)(3)(B)(iii)(I)
(citation omitted).
During the Class Period, the Ballan Plaintiff Group collectively purchased
121,258 shares of ADAC stock at prices artificially inflated by defendants'
false and misleading statements and have collectively suffered losses close
to $337,022. See Chart of Movants' Purchases, Sales and Losses,
Lawrence Decl., Ex. A. Thus, the Movants believe that the Ballan Plaintiff
Group has the largest financial interest in the outcome of the case.(8)
Each movant in the Ballan Plaintiff Group has signed and filed a sworn
certification of their review of the Complaint and authorization of its
filing and is willing to serve as a representative party on behalf of the
Class. In addition, the Ballan Plaintiff Group has selected and retained
counsel highly experienced in prosecuting securities class actions such
as this one to represent it. See the firm résumés
of Milberg Weiss and Wolf Popper, Lawrence Decl., Ex. F. Thus, the
Ballan Plaintiff Group is well qualified to represent the proposed Class
and, having the largest financial interest in the relief sought by the
Class, is presumed to be the most adequate plaintiff.
B. The Ballan Plaintiff Group Is Qualified Under Rule 23
Section 21D(a)(3)(B)(iii)(I)(cc) of the Exchange Act provides that the
lead plaintiff or plaintiffs must also "otherwise satisf[y] the requirements
of Rule 23 of the Federal Rules of Civil Procedure." 15 U.S.C.
§78u-4(a)(3)(B)(iii)(I)(cc). Rule 23(a) requires that the claims
of the class representative be typical of the claims of the class and that
he or she will fairly and adequately protect the interests of the class.
The typicality requirement of Rule 23(a)(a)(3) is satisfied when a named
plaintiff has: (1) suffered the same injuries as the absent class
members; (2) as a result of the same course of conduct by defendants;
and (3) their claims are based on the same legal issues. See,
e.g., Epstein v. MCA, Inc., 50 F.3d 644, 668 (9th
Cir. 1995), rev'd on other grounds sub
nom. Matsushita Elec. Indus. Co. v. Lawrence, 516 U.S. 367
(1996); In re Cirrus Logic Sec., 155 F.R.D. 654, 657 (N.D. Cal.
1994); Shields v. Smith, [1992 Transfer Binder] Fed. Sec. L. Rep.
(CCH) ¶97,001, at 94,376 (N.D. Cal. Aug. 18, 1992); In re Activision
Sec. Litig., 621 F. Supp. 415, 428 (N.D. Cal. 1985). Here, the Ballan
Plaintiff Group members each suffered monetary damages as a result of the
materially false and misleading public statements made by or on behalf
of ADAC in violation of §§10(b) and 20 of the Exchange Act.
There is a well defined community of interest in the questions of law
and fact involved in this case.(9) The Ballan
Plaintiff Group alleges, as does each member of the Class, that ADAC and
certain of its officers and directors violated the Exchange Act by publicly
disseminating false and misleading statements about ADAC during the Class
Period. The Ballan Plaintiff Group acquired, as did each member of the
proposed Class, ADAC stock at prices inflated by defendants' misrepresentations
and omissions and was damaged thereby. Typicality exists here because the
claims asserted by the Ballan Plaintiff Group are based on the same legal
theory and arise "from the same event or course of conduct giving
rise to the claims of other class members." In re United Energy
Corp. Solar Power Modules Tax Shelter Inv. Sec. Litig., 122 F.R.D.
251, 256 (C.D. Cal. 1988). Accord Blackie v. Barrack, 524
F.2d 891, 902-03 & n.19 (9th Cir. 1975).
The interests of the Ballan Plaintiff Group are clearly aligned with
the members of the proposed Class, and there is no antagonism between the
interests of those individuals and the proposed Class members.(10)
As detailed above, the claims of the Ballan Plaintiff Group raise substantially
identical questions of law and fact as those of the proposed Class, and
its claims are thus typical of the claims of the Class. Moreover, the Ballan
Plaintiff Group has demonstrated its adequacy as class representative,
because each member of the Ballan Plaintiff Group signed a sworn certification,
filed with the Court, affirming his or her willingness to serve as and
assume the responsibilities of a class representative. See Lawrence
Decl., Ex. B. In addition, the Ballan Plaintiff Group has retained
experienced class counsel to represent its interests. Therefore, the Ballan
Plaintiff Group should be appointed as Lead Plaintiff in this action.
C. The Court Should Approve The Ballan Plaintiff Group's Choice Of
Co-Lead Counsel
The PSLRA vests authority in the Lead Plaintiff to select and retain
Lead Counsel, subject to Court approval. See §21D(a)(3)(B)(v),
15 U.S.C. §78u-4(a)(3)(B)(v). Thus, the Court should not disturb the
Lead Plaintiff's choice of counsel unless it is necessary to protect the
interests of the plaintiff class. The Ballan Plaintiff Group has selected
the law firms of Milberg Weiss and Wolf Popper to serve as Co-Lead Counsel
for the Class. These firms possess extensive experience in the area of
securities litigation and have successfully prosecuted numerous securities
fraud class actions on behalf of injured investors. See Lawrence
Decl., Ex. F. Thus, the Court may be assured that, in the event this
motion is granted, the members of the Class will receive the highest caliber
of legal representation available.
V. CONCLUSION
For all the foregoing reasons, Movants respectfully request that the
Court: (a) appoint all Movants as Lead Plaintiff in the above-captioned
action, pursuant to §21D(a)(3)(B), 15 U.S.C. §78u-4(a)(3)(B);
(b) approve the Ballan Plaintiff Group's choice of Milberg Weiss and
Wolf Popper as Co-Lead Counsel for the Class; and (c) authorize Movants
and their Co-Lead Counsel to designate a maximum of five individual members
of the Ballan Plaintiff Group to give testimony on behalf of the Class
in subsequent proceedings.
DATED: March 1, 1999
Respectfully submitted,
MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
MILBERG WEISS BERSHAD
HYNES & LERACH LLP
REED R. KATHREIN
JEFFREY W. LAWRENCE
KIMBERLY C. EPSTEIN
______________________________
JEFFREY W. LAWRENCE
222 Kearny Street, 10th Floor
San Francisco, CA 94108
Telephone: 415/288-4545
WOLF POPPER LLP
LESTER L. LEVY
MICHAEL A. SCHWARTZ
845 Third Avenue
New York, NY 10022
Telephone: 212/759-4600
[Proposed] Co-Lead Counsel for Plaintiffs
BARRACK, RODOS & BACINE
EDWARD M. GERGOSIAN
600 West Broadway, Suite 1700
San Diego, CA 92101
Telephone: 619/230-0800
BERMAN, DeVALERIO, PEASE
& TABACCO
JOSEPH J. TABACCO, JR.
CHRISTOPHER T. HEFFELFINGER
425 California Street
Suite 2025
San Francisco, CA 94104
Telephone: 415/433-3200
BERMAN, DeVALERIO & PEASE
JEFFREY C. BLOCK
One Liberty Square
Boston, MA 02109
Telephone: 617/542-8300
COHEN, MILSTEIN, HAUSFELD
& TOLL, P.L.L.C.
STEVEN J. TOLL
999 Third Avenue, Suite 3600
Seattle, WA 98104
Telephone: 206/521-0080
ENTWISTLE & CAPPUCCI LLP
VINCENT R. CAPPUCCI
400 Park Avenue
New York, NY 10022-4406
Telephone: 212/894-7200
LAW OFFICES OF LIONEL Z.
GLANCY
LIONEL Z. GLANCY
1801 Avenue of the Stars
Suite 308
Los Angeles, CA 90067
Telephone: 310/201-9150
LOCKRIDGE GRINDAL NAUEN
& HOLSTEIN, P.L.L.P.
RICHARD A. LOCKRIDGE
KAREN M. HANSON
GREGG M. FISHBEIN
100 Washington Avenue South
Suite 2200
Minneapolis, MN 55401-2159
Telephone: 612/339-6900
LOWEY DANNENBERG BEMPORAD
& SELINGER, P.C.
NEIL L. SELINGER
DAVID C. HARRISON
The Gateway
One North Lexington Avenue
White Plains, NY 10601
Telephone: 914/997-0500
LAW OFFICES OF BRUCE G. MURPHY
BRUCE G. MURPHY
265 Llwyds Lane
Vero Beach, FL 32963
Telephone: 561/231-4202
POMERANTZ HAUDEK BLOCK
GROSSMAN & GROSS LLP
STANLEY M. GROSSMAN
MARC I. GROSS
PATRICK V. DAHLSTROM
100 Park Avenue, 26th Floor
New York, NY 10017-5516
Telephone: 212/661-1100
WECHSLER HARWOOD HALEBIAN
& FEFFER LLP
STUART D. WECHSLER
JEFFREY M. HABER
FREDERICK W. GERKENS, III
488 Madison Avenue
8th Floor
New York, NY 10022
Telephone: 212/935-7400
Attorneys for Plaintiffs
ADAC-2\BM000703.BRF
DECLARATION OF SERVICE BY MAIL
PURSUANT TO NORTHERN DISTRICT LOCAL RULE 23-2(c)(2)
I, the undersigned, declare:
1. That declarant is and was, at all times herein mentioned, a citizen
of the United States and a resident of the County of San Francisco, over
the age of 18 years, and not a party to or interested in the within action;
that declarant's business address is 222 Kearny Street, 10th Floor, San
Francisco, California 94108.
2. That on March 1, 1999, declarant served the THE BALLAN PLAINTIFF
GROUP'S NOTICE OF MOTION AND MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES
IN SUPPORT OF MOTION FOR APPOINTMENT OF LEAD PLAINTIFF AND APPROVAL OF
LEAD PLAINTIFF'S CHOICE OF CO-LEAD COUNSEL by depositing a true copy thereof
in a United States mailbox at San Francisco, California in a sealed envelope
with postage thereon fully prepaid and addressed to the parties listed
on the attached Service List and that this document was forwarded to the
following designated Internet site at:
http://securities.milberg.com
3. That there is a regular communication by mail between the place of
mailing and the places so addressed.
I declare under penalty of perjury that the foregoing is true and correct.
Executed this 1st day of March, 1999, at San Francisco, California.
______________________________
DEBORAH R. DASH
1. Movants' certifications are attached as Exhibit
B to the Declaration of Jeffrey W. Lawrence in Support of Motion of the
Ballan Plaintiff Group for Appointment of Lead Plaintiff and Approval of
Lead Plaintiff's Choice of Co-Lead Counsel ("Lawrence Decl."),
filed concurrently herewith.
2. The Class consists of purchasers of ADAC Laboratories
("ADAC" or the "Company") stock between January 10,
1996 through December 28, 1998, inclusive (the "Class Period").
Here, 40 members of the Class (the "Ballan Plaintiff Group")
have stepped forward and expressed interest in representing the Class in
this action and have requested approval of the law firms identified herein
as their choice of counsel. To promote efficiency at trial and during discovery,
Movants request that the Ballan Plaintiff Group and their Co-Lead Counsel
be permitted to make a limited designation of a maximum of seven individuals
who may be called to give testimony on behalf of the Class.
3. One particular shareholder in the Ballan Plaintiff
Group held as many as 59,143 shares, resulting in a loss of $166,266. See
Lawrence Decl., Ex. B.
4. The Securities Exchange Act of 1934, as amended
by the Private Securities Litigation Reform Act of 1995, Pub. L. No. 104-67,
109 Stat. 737 (1995) ("PSLRA").
5. All paragraph references ("¶")
are to the Complaint.
6. Emphasis has been added throughout unless indicated
otherwise.
7. See also Rosenberg v. Nationsbanc
Montgomery Sec., Inc., No. C-98-20956 RMW, Order Appointing Lead
Plaintiff and Co-Lead Counsel (N.D. Cal. Dec. 11, 1998); Drimer v. Amgen,
Inc., No. 98-6483-WMB (RZx), Order Granting the Drimer Group's Motion
to be Appointed Lead Plaintiff and for Appointment of Lead Plaintiffs'
Choice of Co-Lead Counsel (C.D. Cal. Oct. 30, 1998); Reiger v. Altris
Software, Inc., No. 98cv058J(JFS), 1998 U.S. Dist. LEXIS 14705 (S.D.
Cal. Sept. 14, 1998); In re Ride, Inc. Sec. Litig., No. C97-402WD,
Order Appointing Lead Plaintiffs (W.D. Wa. Aug. 5, 1997); In re Mitcham
Indus. Sec. Litig., No. H-98-1244, Amended Order Consolidating Actions
and Appointing Lead Plaintiffs and Lead Counsel (S.D. Tex. Sept. 14, 1998);
Kwalbrun v. Advanced Fibre Communications, Inc., No. C-98-20697(JF),
Order Appointing the Kwalbrun Plaintiffs Group as Lead Plaintiff and Approving
Lead Plaintiff's Choice of Counsel (N.D. Cal. Nov. 2, 1998); In re Vivus,
Inc. Sec. Litig., Master File No. C 98 1026 SBA, Order
Appointing Lead Plaintiff Pursuant to Section 21(D)(a)(3)(B) of the Securities
Exchange Act of 1934 and Approval of Lead Plaintiff's Choice of Counsel
(N.D. Cal. July 2, 1998); City Nominees Ltd. v. Macromedia, Inc.,
No. C 97-3521 SC, Order Re Motion to Appoint Lead Plaintiff (N.D.
Cal. Jan. 23, 1998); In re Read-Rite Corp. Sec. Litig., No.
C-97-20059 RMW, Order Granting Plaintiffs' Motion for Appointment
of Lead Plaintiff and Lead Counsel (N.D. Cal. May 28, 1997); Malin
v. IVAX Corp., Case No. 96-1843-CIV-MORENO, Order Granting Malin/Ferretti/Pennsylvania
Pension Fund Plaintiffs Group's Motion for Appointment as Lead Plaintiffs
and Order Approving Lead Plaintiffs' Choice of Counsel (S.D. Fla. Nov.
1, 1996); Zuckerman v. Foxmeyer Health Corp., No. 3:96-CV-2258-T,
Order Granting Motion to Withdraw Motion and Granting Joint Motion for
Appointment of Lead Plaintiffs and Lead Counsel (N.D. Tex. Mar. 28,
1997); Chan v. Orthologic Corp., No. CIV 96-1514 PHX RCB,
Order (D. Ariz. Dec. 19, 1996); Powers v. Eichen, Civ. No. 96-1431-B(AJB),
Order Granting Plaintiffs' Motion to Be Appointed Lead Plaintiffs Pursuant
to §21D(a)(3)(B) of the Securities Exchange Act of 1934 and for Appointment
of Lead Plaintiffs' Lead Counsel (S.D. Cal. Nov. 15, 1996), Lawrence Decl.,
Ex. D.
8. See In re Advanced Tissue Sciences Sec.
Litig., Master File No. 98-1146-IEG (LAB), 1998 U.S. Dist. LEXIS 16926,
at *14 (S.D. Cal. Oct. 20, 1998) (all else being equal, court must appoint
person or group with "largest financial interest"); In re
Olsten Corp. Sec. Litig., 3 F. Supp. 2d 286 (E.D.N.Y. 1998); In
re Informix Corp. Sec. Litig., No. C-97-1289-SBA, Order at 3 (N.D.
Cal. Oct. 17, 1997); Squyres v. Union Texas Petroleum Holdings, Inc.,
No. CV-98-6085-LGB (AIJx), Order Granting Proposed Union Texas Lead Plaintiffs'
Motion for Appointment of Lead Plaintiffs Pursuant to §21D(a)(3)(B)
of the Securities Exchange Act of 1934 and for Appointment of Lead Counsel
(C.D. Cal. Nov. 2, 1998), Lawrence Decl., Ex. E.
9. The questions of law and fact common to the members
of the Class that predominate over questions that may affect individual
Class members include the following: (1) whether the federal securities
laws were violated by defendants; (2) whether defendants misrepresented
material facts; (3) whether defendants' statements omitted material
facts necessary to make the statements made, in light of the circumstances
under which they were made, not misleading; (4) whether defendants
acted with scienter; (5) whether the price of ADAC stock was artificially
inflated during the Class Period; and (6) the extent of damage sustained
by Class members and the appropriate measure of damages.
10. See Gluck v. CellStar Corp., 976
F. Supp. 542, 544 (N.D. Tex. 1997) (claims of the presumptively most adequate
plaintiff were typical of those of the purported class members); Lax
v. First Merchants Acceptance Corp., No. 97 C 2716, 1997 U.S. Dist.
LEXIS 12432, at *20 (N.D. Ill. Aug. 15, 1997); In re Oxford Health Plans
Sec. Litig., MDL-1222, 1998 U.S. Dist. LEXIS 10694, at *25 (S.D.N.Y.
July 15, 1998); Malin, No. 96-1843-CIV-MORENO.