GOLD BENNETT & CERA LLP
SOLOMON B. CERA (99467)
GARY A. GARRIGUES (148667)
595 Market Street, Suite 2300
San Francisco, California 94105
(415) 777-2230

BERGER & MONTAGUE, P.C.
SHERRIE R. SAVETT
MERRILL G. DAVIDOFF
SUSAN SCHNEIDER THOMAS
1622 Locust Street
Philadelphia, Pennsylvania 19103
(215) 875-3000

Attorneys for Plaintiff And
All Others Similarly Situated

O'MELVENY & MYERS LLP
ROBERT C. VANDERET (58524)
SETH ARONSON (100153)
400 South Hope Street
Los Angeles, California 90071
(213) 669-6000

O'MELVENY & MYERS LLP
DANIEL H. BOOKIN (78996)
275 Battery Street, Suite 2600
San Francisco, California 94111
(415) 984-8700

Attorneys for Defendants

Pursuant to Civil L.R. 16-4, on or about July 28-30, 1998, lead counsel for the parties to this action met and conferred for the purposes specified in Fed.R.Civ.P. 26(f) and Civil L.R. 16-5 through 16-8, as applicable to this action. The parties request that the Court adopt this Joint Case Management Statement as the initial Case Management Order in this case, provided however, that the Court adopt either plaintiff's or defendants' position, as set forth in Paragraphs 9(a) and 9(b), respectively, with respect to discovery, or some compromise thereof.

This action is related to another case pending before this Court, Cadence Design Systems, Inc. v. Avant! Corp., No. C95-20828 RMW (PVT), (hereafter, the "Cadence Action") in which Cadence alleges that Avant!'s major software product line infringes Cadence's copyrighted software, and that Avant! misappropriated its trade secrets. Plaintiff in this case alleges that Avant! violated federal securities laws by misrepresenting and failing to disclose material information pertaining to the alleged infringement and misappropriation. This action is also related to an action encaptioned In re Avant! Securities Litigation, Master File No. C 96-20132 RMW, which is a consolidated securities fraud class action on behalf of purchasers of Avant! stock in a period prior to the filing of the Cadence litigation.

Plaintiff's motion for class certification, which defendants have opposed, is set for hearing on October 9. Defendants' motion to consolidate this action with the In re Avant! Securities Litigation, which plaintiff has opposed, is also set for hearing on October 9.

2.-3. Principal Factual and Legal Issues in Dispute

(a) Did the defendants make actionable misrepresentations and/or omissions as alleged by plaintiff in this action?

(b) Did any alleged misrepresentations and/or omissions cause the market price of Avant!'s stock to be artificially inflated during the class period?

(c) With respect to the claims asserted under §10(b) of the Securities Exchange Act of 1934, did each of the defendants act with the requisite scienter in making any alleged misrepresentations and/or omissions?

(d) Were plaintiff and members of the class damaged by any of defendants' alleged misrepresentations or omissions?

(e) Did Avant! adequately disclose to investors the material risks which ultimately led to plaintiff's and the class' alleged losses, or were such risks known to the market through other channels of information?

(f) Are plaintiff's claims barred by any provisions of the Private Securities Litigation Reform Act of 1995?

(g) Does the case meet each of the requisite elements essential for certification of a class and subclass? The facts and law supporting class certification are set forth in plaintiff's motion for class certification filed July 22, 1998, and plaintiff's reply memorandum filed September 4, 1998. Defendants have opposed class certification as set forth in its opposition papers filed on or about August 21, 1998.

5. Parties Not Served. All parties named in the complaint have been served.

(a) Plaintiff shall have immediate access, not later than October 12, 1998, to the discovery in the Cadence Action. Avant! agrees that the protective order in the Cadence Action shall be modified to allow plaintiff access to that discovery and use of that discovery in the prosecution of this case. Except as provided in paragraph 9(a), plaintiff agrees to be bound by the protective order in the Cadence Action, unless and until a different protective order is entered in this case. Avant! shall promptly make available for production to plaintiff's counsel, not later than October 12, 1998, copies of all documents produced to date in the Cadence Action, other than production of actual source code, which will be the subject of later negotiations; copies of all written discovery responses in the Cadence Action including responses to interrogatories and requests for admission; and copies of all transcripts of depositions (including deposition exhibits) in the Cadence Action.

(b) Defendants agree to produce non-objectionable documents requested in plaintiff's first request for production within thirty-five (35) days after entry of this order, or sooner as set forth in paragraph 8(a), as applicable.

(c) Plaintiff may commence non-party written discovery (subpoenas duces tecum) at any time.

(d) The parties agree to preserve until the final conclusion of this action all documents that are or potentially could be relevant to this action.

(e) Given the parties' disagreement with respect to the timing and scope of discovery as described herein and in the parties' papers submitted on defendants' motion to consolidate, the parties are unable to set a discovery cut-off date for this action at this time, nor are the parties presently able to set limits on the number of depositions or interrogatories, nor deadlines for expert disclosures, amendments to pleadings or dispositive motions.

(a) Plaintiff's position: Discovery shall proceed as permitted by the Federal Rules of Civil Procedure. Defendants shall be required to produce promptly to plaintiff any additional documents, written discovery responses, hearing or deposition transcripts from the Cadence Action, as such additional items become available. Notwithstanding the terms of any protective order in the Cadence Action, the parties shall not be required to disclose the identity of, or any other information regarding their respective experts in this action prior to the deadline for expert disclosures to be set by subsequent order of the Court, nor shall the parties disclose the identity of, or any other information regarding other persons who may be shown protected information, except as required by an order of the Court for good cause shown, and the parties shall each bear their own attorneys' fees regarding any disputes arising from the application of any protective order applicable to this action. Plaintiff shall not be bound by the Court's July 22, 1997 Order Granting In Part Defendants' Motion To Stay Discovery entered in the In re Avant! Securities Litigation;

(b) Defendants' position: Defendants believe this action should be consolidated with, or alternatively closely coordinated with, the related Avant! Consolidated Securities class action and the Cadence Action, to avoid duplication and to insure that the plaintiffs in the various actions are treated equitably. This action should be subject to the existing discovery stays and protective orders in the related consolidated securities actions and the Cadence Action.

IT IS SO ORDERED.

Dated: _____________________, 1998
 

_______________________________ Ronald M. Whyte United States District Judge

 

Source: Diskette and paper copy from Gold Bennett & Cera LLP