in re: cisco systems, inc. securities litigation 01-cv...
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UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION
14 ALL ACTIONS.
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i I In re CISCO SYSTEMS, INC. SECURITIES ) Master File No. C-01-20418-JW(PVT)LITIGATION )12 ) CLASS ACTION)
13 This Document Relates To: ) (PROPOSEDj ORDER PRELIMINARIL Y) APPROVING SElTLEMENT AND) PROVIDING FOR NOTICE)
DATE: September I I, 2006TIME: 9:00 a.m.COURTROOM: Honorable James Ware
UN
ITED
STATES DISTRICT COU
RT
NO
RT
H
ERN DISTRICT OF CALI
FOR
NIA
IT IS SO ORDERED
Judge James Ware
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 1 of 9
WHEREAS, a class action is pending before the Court entitled In re Cisco Systems, Inc. Sec.
2 Litig., Master File No. C-O 1-204 I 8-JW(PVT) (the "Litigation");
3 WHEREAS, the Court has received the Stipulation of Settlement dated as of August 28, 2006
4 (the "Stipulation"), that has been entered into by the Lead Plaintiffs and Defendants, and the Court
5 has reviewed the Stipulation and its attached Exhibits; and
6 WHEREAS, the parties having made application, pursuant to Federal Rule of Civil
7 Procedure 23( e), for an order preliminarily approving the settlement of this Litigation, in accordance
8 with the Stipulation which, together with the Exhibits annexed thereto sets forth the terms and
9 conditions for a proposed settlement of the Litigation and for dismissal of the Litigation with
10 prejudice upon the tem1S and conditions set forth therein; and the Court having read and considered
II the Stipulation and the Exhibits aIlexed thereto; and
12 WHEREAS, all defined terms contained herein shall have the same meanings as set forth in
13 the Stipulation;
14 NOW, THEREFORE, IT iS HEREBY ORDERED:
15 l. The Court has previously certified a Class defined as: All persons and entities that
16 purchased Cisco securities between November 10, 1999 and February 6, 200 i and held those
17 securities on the last day of that period. Excluded from the Class are Defendants and offcers and
18 directors of the Defendants, as well as their families, and the families of any Defendant. Also
19 excluded from the Class are those Persons who timely and validly request exclusion from the Class.
20 2. The Court does hereby preliminarily approve the Stipulation and the settlement set
21 forth therein, subject to f1lrther consideration at the Settlement Hearing described below.
22 3. A hearing (the "Settlement Hearing") shall be held before this Court on
, 2006, at _.m., at the United States Courthouse, 280 South First?'-,)
24 Street, San Jose, California, to determine whether the proposed settlement of the Litigation on the
25 terms and conditions provided for in the Stipulation is fair, just, reasonable and adequate to the
26 Settlement Class and should be approved by the Court; whether a Judgment as provided in ~I. i 3 of
27 the Stipulation should be entered herein; whether the proposed Plan of Allocation should be
28 approved; to detennine the amount of fees and expenses that should be awarded to PlaintifTs' Co-
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I Lead Counsel; and to determine the amount of expenses to be reimbursed to the Lead Plaintiffs. The
2 Court may adjourn the Settlement Hearing without further notice to Members of the Class.
,,) 4. The Court approves, as to form and content, the Notice of Pendency and Proposed
4 Settlement of Class Action (the "Notice"), the Proof of Claim and Release form (the "Proof of
5 Claim"), and Summary Notice for publication annexed as Exhibits A-I, A-2 and A-3 hereto and
6 finds that the mailing and distribution of the Notice and publishing of the Summary Notice
7 substantially in the manner and form set foith in 'l,j5-6 of this Order meet the requirements of
8 Federal Rule of Civil Procedure 23 and due process, and is the best notice practicable under the
9 circumstances and shall constitute due and suffcient notice to all Persons entitled thereto.
10 5. The firm of Gilardi & Co. LLC ("Claims Administrator") is hereby appointed to
II supervise and administer the notice procedure as well as the processing of claims as more fully set
12 forth below:
13 (a) Plaintiffs' Co-Lead Counsel shall make reasonable efforts to identify all
i 4 Persons who are Members of the Class, and not later than , 2006 (the "Notice
15 Date"), Plaintiffs' Co-Lead Counsel shall cause a copy of the Notice and the Proof of Claim,
16 substantially in the forms aIlexed as Exhibits A- i and A-2 hereto, to be mailed by first class mail to
17 all Class Members who can be identified with reasonable effort;
, 2006, Plaintiffs' Co-Lead Counsel shall18 (b) Not later than
19 cause the Summary Notice to be published once in Investor 's Business Daily; and
20 (c) At least seven (7) calendar days prior to the Settlement Hearing, Plaintiffs'
21 Co-Lead Counsel shall cause to be served on Defendants' counsel and filed with the Court proof, by
22 affdavit or declaration, of such mailing and publishing.
?'-,) 6. Nominees who purchased the common stock of Cisco for the beneficial ownership of
24 Class Members during the Class Period shall send the Notice and the Proof of Claim to all beneficial
25 owners of such Cisco securities within ten (10) days after receipt thereof, or send a list ofthe names
26 and addresses of such beneficial owners to the Claims Administrator within ten (i 0) days of receipt
27 thereof, in which event the Claims Administrator shall promptly mail the Notice and Proof of Claim
28 to such beneficial owners. Plaintiffs' Co-Lead Counsel shall, if requested, reimburse banks,
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brokerage houses or other nominees solely for their reasonable out-of-pocket expenses incurred in
2 providing notice to beneficial owners who are Class Members out of the Settlement Fund, which
3 expenses would not have been incurred except for the sending of such Notice, subject to further
4 order of this Court with respect to any dispute concerning such compensation.
5 7. All Members of the Class shall be bound by all determinations and judgments in the
6 Litigation conceming the settlement, whether favorable or unfavorable to the Class.
7 8. Class Members who do not timely and validly effect their exclusion from the Class
8 shall complete and submit Proof of Claim fonns in accordance with the instructions contained
9 therein. Unless the Court orders otherwise, all Proof of Claim fonns must be postmarked no later
10 than ninety (90) days from the Notice Date. Any Class Member who does not submit a Proof of
11 Claim within the time provided for, shall be barred from sharing in the distribution of the proceeds
i 2 of the Settlement Fund, unless otherwise ordered by the Court. Notwithstanding the foregoing,
13 PlaintifTs' Co-Lead Counsel shall have discretion to accept late-submitted claims for processing by
14 the Claims Administrator so long as the distribution of the Settlement Fund is not materially delayed
15 thereby.
16 9. Any Member of the Class may enter an appearance in the Litigation, at their own
17 expense, individually or through counsel of their own choice, in which case such counsel must fie
18 with the Clerk of the Cour and deliver to Plaintiffs' Co-Lead Counsel and Defendants' counsel a
19 notice of such appearance. Ifthey do not enter an appearance, thcy wil be represented by Plaintiffs'
20 Co-Lead CounseL.
21 10. Any Person falling within the definition of the Class may, upon request, be excluded
22 from the Class. Any such Person must submit to the Claims Administrator a request for exclusion
23 ("Request for Exclusion"), received no later than , 2006. A Request for Exclusion
24 must state: (a) the name, address, and telephone number of the Person requesting exclusion; (b) each
25 of the Person's purchases and sales of Cisco securities madc during the Class Period, including the
26 dates of purchase or sale, the number of shares purchased and/or sold, and the price paid or received
27 per share for each such purchase or sale; and (c) that the Person wishes to be excluded from the
28 Class. All Persons who submit valid and timely Requests for Exclusion in the manner set forth in
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I this paragraph shall have no rights under the Stipulation, shall not share in the distribution of the Net
2 Settlement Fund, and shall not be bound by the Stipulation or the Judgment entercd in the Litigation.
3 Il. Any Member of the Class may appear and show cause, ifhe, she or it has any, why
4 the proposed settlement of the Litigation should or should not be approved as fair, reasonable and
5 adequate, why a judgment should or should not be entered thereon, why the Plan of Allocation
6 should or should not be approved, why attorneys' fees and expenses should or should not be awarded
7 to counsel for the plaintiffs, or why the expenses of the Lead Plaintiffs should or should not be
8 awarded; provided, however, that no Class Member or any other Person shall be heard or entitled to
9 contest such matters, unless that Class Member has delivered by hand or sent by first class mail
i 0 written objections and copies of any papers and briefs such that they are received on or before
11 ,2006, by Lerach Coughlin Stoia Geller Rudman & Robbins LLP, Keith F. Park,
12 Spencer A. Burkholz, 655 W. Broadway, Suite 1900, San Diego, CA, 92101; Levin, Papantonio,
13 Thomas, Mitchell, Echsner & Proctor, P.A., Timothy M. O'Brien, 316 South Baylen Street, Suite
14 600, Pensacola, FL 32501; Winston & Strawn LLP, Dan K. Webb, Robert Y. Sperling, 35 West
15 Wacker Drive, Chicago, IL 60601-9703; Fenwick & West LLP, Dean S. Kristy, KevinP. Muck, 275
16 Battery Street, San Francisco, CA 94111; and Heller Ehrman LLP, Michael L. Rugen, 333 Bush
i 7 Street, Suite 3100, San Francisco, CA 941 04-2878, and filed said objections, papers and briefs with
18 the Clerk of the United States District Court for the Northern District of Califomia, on or before
19 ,2006. Any Member of the Class who does not make his, her or its objection in the
20 manner provided shall be deemed to have waived such objection and shall forever be foreclosed
21 from making any objection to the fairness or adequacy of the proposed settlement as set forth in the
22 Stipulation, to the Plan of Allocation, or to the award of attorneys' fees and expenses to counsel for
23 the plaintiffs or expenses of the Lead Plaintiffs, unless otherwise ordered by the Court.
24 12. All funds held by the Escrow Agent shall be deemed and considered to be in custodia
25 legis of the COUl1, and shall remain subject to the jurisdiction of the Court, until such time as such
26 funds shall be distributed pursuant to the Stipulation and/or further order(s) of the Court.
27 13. Plaintiffs' Co-Lead Counsel shall be entitled to withdraw seventy-five percent (75%)
28 of their out-of-pocket expenses incUlTed in prosecuting the Litigation from the Settlement FUld upon
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I the execution of this Order, subject to final approval of said expenses at the Settlement Hearing and
2 the other provisions of~6 of the Stipulation.
,,) 14. All papers in support ofthe settlement, the Plan of Allocation, and any application by
4 counsel for the plaintiffs for attorneys' fees or reimbursement of expenses or by Lead Plaintiffs for
5 reimbursement of their expenses shall be fied and served seven (7) calendar days prior to the
6 Settlement Hearing.
7 15. Neither Defendants and their Related Parties nor Defendants' counsel shall have any
8 responsibility for the Plan of Allocation or any application for attorneys' fces or reimbursement of
9 expenses submitted by plaintiffs' counselor the Lead Plaintiffs, and such matters will be considered
10 separately from the fairness, reasonableness and adequacy of the settlement.
11 16. At or after the Settlement Hearing, the Court shall determine whether the Plan of
12 Allocation proposed by PlaintifTs' Co-Lead Counsel, and any application for attorneys' fees or
i 3 reimbursement of expenses shall be approved.
14 17. All reasonable expenses incurred in identifying and notifying Class Members, as well
15 as administering the Settlement Fund, shall be paid as set forth in the Stipulation. In the event the
16 settlement is not approved by thc Court, or otherwise fails to becomc effective, neither the Lead
17 PlaintifTs nor any of their counsel shall have any obligation to repay any amounts incurred or
18 properly disbursed pursuant to ~~2.6 or 2.7 of the Stipulation.
19 18. Neither the Stipulation, nor any of its tern1S or provisions, nor any of the negotiations
20 or proceedings connected with it, shall be construed as an admission or concession by Defendants of
21 the truth of any of the allegations in the Litigation, or of any liability, fàult, or wrongdoing of any
22 kind.
?'-,) 19. Pending final determination of whether the Settlement should be approved, Lead
24 Plaintiffs, all Class Members, and each of them, and anyone who acts or purports to act of their
25 behalf, shall not institute, commence or prosecute any action which asserts Released Claims against
26 any Released Party.
27 20. The Court reserves the right to adjourn the date of the Settlement Hearing without
28 further notice to the Members of the Class, and retains jurisdiction to consider all further
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I applications arising out of or connected with the proposed settlement. The Court may approve the
2 settlement, with such modifications as may be agreed to by the Settling Partics, if appropriate,
3 without further notice to the Class.
4 IT IS SO ORDERED.
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6 DATED:
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THE HONORABLE JAMES WAREUNITED STATES DISTRICT JUDGE
Submitted by:9
LERACH COUGHLIN STOIA GELLERi 0 RUDMAN & ROBBINS LLP
WILLIAM S. LERACHII KEITH F. PARK
SPENCER A. BURKHOLZ12 DANIEL S. DROSMAN
JONAH H. GOLDSTEIN13 MAlTHEW P. MONTGOMERY
LUCAS F. OLTS14 JES A D. 'A"
15 J16
17655 West Broadway, Suite 1900
18 San Diego, CA 92101Telephone: 619/231-1058
19 619/231-7423 (fax)
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 7 of 9
19 Additional Counsel for PlaintifTs
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CERTIFICATE OF SERVICE
2 I hereby cei1ify that on August 28, 2006, I electronically fied the foregoing with the Clerk of
3 the Court using the CM/ECF system which will send notification of such filing to the e-mail
4 addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I have
5 mailed the foregoing documcnt or paper via the United States Postal Service to the non-CM/ECF
6 participants indicated on the attached Manual Notice List.
7 I further certify that I caused this document to be forwarded to the following designated
8 Internet site at: http://securities.lerachlaw.com/.
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s/ Keith F. ParkKEITH F. PARK
LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP
655 West Broadway, Suite 1900San Diego, CA 92101Telephone: 619/231-1058
619/231-7423 (fàx)E-mail:KeithP(iùlerachlaw.com
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TLEMENT AND PROVIDING FOR NOTICE - C-01-20418-JW(PVT) - I -
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 9 of 9
EXHIBIT A-I
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 1 of 20
LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP
2 WILLIAM S. LERACH (68581)KEITH F. PARK (54275)
3 SPENCER A. BURKHOLZ (147029)DANIEL S. DROSMAN (200643)
4 JONAH H. GOLDSTEIN (193777)MATTHEW P. MONTGOMERY (180196)
5 LUCAS F. OLTS (234843)JESSICA D. TALLY (234432)
6 655 West Broadway, Suite 1900San Diego, CA 92101
7 Telephone: 619/231-1058619/231-7423 (fax)
8 BillL(à)lerachlaw.comKci thP lalerachlaw. com
9 SpenceB(flerachlaw.comDanD(flerachlaw.com
10 JonahG(flerachlaw.comMattM(flerachlaw.com
I I LukeO(flerachlaw.comJessica T (fl erachlaw .com12 - and -l' A TRICK 1. COUGHLIN (1 I 1070)
13 LESLEY E. WEAVER (191305)100 Pine Street, Suite 2600
14 San Francisco, CA 941 I ITelephone: 415/288-4545
15 415/288-4534 (fax)PatC(flerachlaw.com
16 LesleyW(flcrachlaw.com
LEVIN, PAPANTONIO, THOMAS, MITCHELL,ECI-ISNER & PROCTOR, P.A.
TIMOTlIY M. O'BRIEN (pro hac vice)316 South Baylen Street, Suite 600Pcnsacola, FL 3250 ITelephone: 850/435-7000850/497-7057 (fax)
17 Co-Lead Counsel for Plaintiffs
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19 UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION
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22 In re CISCO SYSTEMS, INC. SECURITES ) Master File No. C-01-20418-JW(PVT)LITIGATION )23 ) CLASS ACTION)
24 This Document Relates To: ) NOTICE OF PENDENCY AND PROPOSED) SETTLEMENT OF CLASS ACTION25 ALL ACTIONS. )) EXHIBIT A-I
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 2 of 20
I TO: ALL PERSONS WHO PURCHASED CISCO SYSTEMS, INC. ("CISCO")SECURITIES DURING THE PERIOD BEGINNING NOVEMBER 10, 1999
2 THROUGH FEBRUARY 6, 2001, AND HELD THOSE SECURITES ON THELAST DAY OF THAT PERIOD
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4PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS
MA Y BE AFFECTED BY PROCEEDINGS IN THIS LITIGATION. PLEASE NOTE THAT IF
YOU ARE A CLASS MEMBER, YOU MAYBE ENTITLED TO SHARE IN THE PROCEEDS
OF THE SETTLEMENT DESCRIBED IN THIS NOTICE. TO CLAIM YOUR SHARE OF THIS
FUND, YOU MUST SUBMIT A VALID PROOF OF CLAIM AND RELEASE ("PROOF OF
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CLAIM") POSTMARKED ON OR BEFORE ,2006.
IF YOU DO NOT WISH TO BE INCLUDED IN THE CLASS AND YOU DO NOT WISH
TO l' ARTICIp ATE IN THE PROPOSED SETTLEMENT DESCRIBED IN THIS NOTICE, YOU
MAY REQUEST TO BE EXCLUDED. TO DO SO, YOU MUST SUBMIT A WRITTEN
REQUEST FOR EXCLUSION THAT MUST BE RECEIVED ON OR BEFORE
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This Notice has been sent to you pursuant to Rule 23 ofthc Federal Rules of Civil Procedure
and an Order of the United States District Court for the Northern District of California (the "Court").
The purpose of this Notice is to inform you of the pendency and proposed settlcment of this class
action litigation and of the hearing to be held by the Court to consider the fainiess, reasonableness,
and adequacy of the settlement. This Notice is not intended to be, and should not be construed as, an
expression of any opinion by the Court with respect to the truth of the allegations in the Litigation or
the merits of the claims or defenses asserted. This Notice describes the rights you may have in20
21connection with the settlement and what steps you may take in relation to the settlement and this
22class action litigation.
23The proposed settlement creates a fund in the amount of $99,250,000 in cash ( the
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"Settlement Fund") and wil include interest that accrues on the fund prior to distribution. Your
recovery from this fund will depend on a number of variables, including the number of shares of
Cisco securities you purchased during the period November 10, 1999 to February 6, 200 I and held
on FeblUary 6, 2001 and the timing of your purchases and any sales. Depending on the number of28
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eligible shares purchased by Class Members who elect to participate in the settlcment and when
2 those shares were purchased and sold, the estimated average distribution per share will be
3 approximately $0.09 before deduction of Court-approved fees and expenses.
4 Lead Plaintiffs and Defendants do not agree on the average amount of damages per share that
5 would be recoverable if the Lead Plaintiffs were to have prevailed on each claim alleged. The issues
6 on which the parties disagree include: (I) the amount by which Cisco securities werc allegedly
7 artificially inflated (if at all) during the Class Period; (2) the effect of various market forces
8 influencing the trading price of Cisco securities at various times during the Class Period; (3) the
9 extent to which external factors, such as general market and industry conditions, influenced the
10 trading price of Cisco securities at various times during the Class Period; (4) the extent to which the
I I various matters that Lead Plaintiffs alleged were materially false or misleading influenced (if at all)
12 the trading price of Cisco securities at various times during the Class Period; (5) the extent to which
13 the various allegedly adverse material tàcts that Lead PlaintitTs alleged were omitted inI1uenced (if at
14 all) the trading price of Cisco securities at various times during the Class Period; (6) whether the
15 statements made or facts allegedly omitted were material, false, misleading or otherwise actionable
16 under the securities laws; (7) whether any Individual Defendants traded on insider inforn1ation; and
17 (8) whether even if liability could be proven, total damages would still be $0, or $0 per damaged
18 share.
19 The Lead Plaintiffs believe that the proposed settlement is a good recovery and is in the best
20 interests of the Class. At the time this settlement was reached, Defendants' summary judgment
21 motions were pending and had been partially argued. Had Defendants prevailed on thcse motions
22 and because of other risks associated with continuing to litigate and proceeding to trial, there was a
23 danger that the Class would not have prevailed on any of their claims, in which case the Class would
24 receive nothing. The amount of damages recoverable by the Class was and is challenged by
25 Defendants. Recoverable damages in this case are limited to losses caused by conduct actionable
26 under applicable law and, had the litigation gone to trial, Defendants would have asserted that all or
27 most of the losses of Class Members were caused by non-actionable market, industry or general
28 economic factors. In fact, Defendants also argued that the recent U.S. Supreme Court decision in
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I Broudo v. Dura Pharms., 544 U.S. 336 (2005), on the issue ofloss causation for damages, required
2 complete dismissal of the case. Defendants would also assert that throughout the Class Period the
3 uncertainties and risks associated with the purchase of Cisco securities were fully and adequatcly
4 disclosed.
5 Plaintiffs' Co-Lead Counsel have not received any payment for their services in conducting
6 this Litigation on behalf of the Lead Plaintiffs and the Members of the Class, nor have they bcen
7 reimbursed for all of their substantial out-of-pocket expenditures. If the settlement is approved by
8 the COUl1, counsel for the plaintiffs will apply to the Court for attorneys' fees of $15 million or
9 approximately 15.1 % of the Settlement Fund and reimbursement of out-of-pocket expenses not to
i 0 exceed $8.9 million to be paid from the Settlement Fund. The amount sought for fees is less than
i I plaintiffs' counsel's straight hourly charges and includes no enhancement for plaintiffs' counsel for
12 the risk of non-payment or delay in payment. If the amount requested is approved by the Court, the
13 average cost per share will be $0.02. In addition, Lead Plaintiffs may seek reimbursement of their
14 expenses (including lost wages) incurred in prosecuting the Litigation on behalf of the Class in an
15 amount not to exceed $75,000.00 each.
16 For further information regarding this settlement you may contact: Rick Nelson, Lerach
17 Coughlin Stoia Geller Rudman & Robbins LLP, 655 W. Broadway, Suite 1900, San Diego, CA
18 92101, Telephone: 800/449-4900.
19 i. NOTICE OF HEARING ON PROPOSED SETTLEMENT
20 A settlement hearing wil be held on , 2006, at _ _.m., before the
21 Honorable James Ware, United States District Judge, at the United States Courthouse, Northern
22 District of California, 280 South First Street, San Jose, California (the "Settlement Hearing"). The
23 purpose of the Settlement Hearing wil be to determine: (I) whether the settlement consisting of
24 $99,250,000 in cash should be approved as fair, reasonable and adequate to the Settling Parties;
25 (2) whether the proposed plan to distribute the settlement proceeds (the "Plan of Allocation") is tàir,
26 reasonable, and adequate; and (3) whether the application by Plaintiffs' Co-Lead Counsel for an
27 award of attorneys' fees and expenses and reimbursement of the expenses of the Lead Plaintiff
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I should be approved. The Court may adjourn or continue the Settlement Hearing without f1¡rther
2 notice to the Class.
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DEFINITIONS USED IN THIS NOTICE
i. "Authorized Claimant" means any Class M.ember whose claim for recovery has been
5 allowed pursuant to the terms of the Stipulation.
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2. "Cisco" means Cisco Systems, Inc.
3. "Cisco Defendants" means Cisco Systems, Inc. and the Individual Defendants.
"Claims Administrator" means the firm of Gilardi & Co. LLC.4.
5. "Class" means all Persons (other than those Persons who timely and validly request
10 exclusion from the Class) who purchased Cisco securities between November 10, 1999 and Febmary
11 6, 200 I and held those securities on the last day of that period. Excluded from the Class are the
12 Defèndants and officers and directors of the Defendants, as well as their families, and the families of
13 any Defendant.
14 "Class Member" or "Member of the Class" means a Person who falls within the6.
15 definition of the Class as set forth in i¡5 above.
16 7. "Class Period" means the period commencing on November 10, 1999 through
17 Febmary 6, 2001, inclusive.
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"Defendants" means the Cisco Defendants and PwC.8.
9. "Individual Defendants" means John Chambers, Larry Carter, Judith L. Estrin, Gary
20 J. Daichendt, Carl Redfield, Donald J. Listwin, Michaelangelo Volpi, Donald Valentine, Steven
21 West and Edward KozeL.
22 10. "Lead Plaintiffs" means Alexander Nehring, Plllbers & Pipefitters National Pension
23 Fund, Carenters Pension Fund of Ilinois, and Central States, Southeast and Southwest Areas
24 Pension Fund, and John Petrera.
25 11. "Person" means an individual, corporation, partnership, limited partnership,
26 association, joint stock company, estate, legal representative, trust, unincorporated association,
27 government or any political subdivision or agency thereof, and any business or legal entity and their
28 spouses, heirs, predecessors, successors, representatives, or assignees
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12. "Plaintiffs' Co-Lead Counsel" means: Lerach Coughlin Stoia Geller Rudman &
2 Robbins LLP, Keith F. Park, Spencer A. Burkholz, 655 W. Broadway, Suite 1900, San Diego, CA,
3 92101; and Lerach Coughlin Stoia Geller Rudman & Robbins LLP, Patrick J. Coughlin, 100 Pine
4 Street, Suite 2600, San Francisco, CA 94111; and Levin, Papantonio, Thomas, Mitchell, Echsner &
5 Proctor, P.A., Timothy M. O'Brien, 316 South Baylen Street, Suite 600, Pensacola, FL 32501.
6 13. "Plan of Allocation" means a plan or formula of allocation of the Settlement Fund
7 whereby the Settlement Fund shall be distributed to Authorized Claimants after payment of expenses
8 of notice and administration of the settlement, Taxes and Tax Expenses and such attorneys' tèes,
9 costs, expenses and interest, as well as Lead Plaintiffs' expenses if any as may be awarded by the
10 Court. Any Plan of Allocation is not part of the Stipulation and neither Defendants nor their Related
I I Parties shall have any responsibility or liability with respect thereto.
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14. "PwC" means PricewaterhouseCoopers LLP.
15. "Related Parties" means each of a Defendant's past or present directors, oftcers,
14 employees, pai1ners, insurers, co-insurers, reinsurers, controlling shareholders, attorneys,
15 accountants or auditors, personal or legal representatives, predecessors, successors, parents,
16 subsidiaries, divisions, joint ventures, assigns, spouses, heirs, related or affliated entitics, any entity
17 in which a Defendant has a controlling interest, any members of any Individual Defendant's
18 immediate family, or any trust of which any Individual Defendant is the settlor or which is for the
19 benefit of any Individual Defendant's family.
20 16. "Released Claims" shall collectively mean any and all claims arising from the
21 purchase (as the term is used in the Securities Exchange Act to include contract to buy, purchase, or
22 otherwise acquire) or sale of Cisco securities and relating in any way to Cisco's financial statements,
23 the sale of securities by any Cisco offcer, director or employee, or any other acts, facts, statements
24 or omissions during the Class Period that are alleged or could have been alleged in the Litigation.
25 "Released Claims" includes "Unknown Claims" as defined in il19 hereof.
26 "Released Persons" means each and all of the Defendants and their Related Parties.
27
17.
18. "Settling Parties" means, collectively, the Defendants and the Lead Plaintiffs on
28 behalf of themselves and the Members of the Class.
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 7 of 20
I 19. "Unknown Claims" means any Released Claims which any Lead Plaintiff or Class
2 Member does not know or suspect to exist in his, her or its favor at the time of the release of the
3 Released Persons which, if known by him, her or it, might have affècted his, her or its settlement
4 with and release of the Released Persons, or might have atfècted his, her or its decision not to object
5 to this settlement. With respect to any and all Released Claims, the Settling Parties stipulate and
6 agree that, upon the Eftèctive Date, the Lead Plaintiffs shall expressly and each of the Class
7 Members shall be deemed to have, and by operation of the Judgment shall have, expressly waived
8 the provisions, rights and benefits of California Civil Code § I 542, which provides:
9 A general release does not extend to claims which the creditor does notknow or suspect to exist in his favor at the time of executing the release, which if
10 known by him must have materially affected his settlement with the debtor.
i 1 The Lead Plaintiffs shall expressly and each of the Class Members shall be deemed to have, and by
12 operation of the Judgment shall have, expressly waived any and all provisions, rights and benefits
13 conferred by any law of any state or territory of the United States, or principle of common law,
14 which is similar, comparable or equivalent to California Civil Code § 1542. The Lead Plaintiffs and
15 Class Members may hereafter discover facts in addition to or diffèrent from those which he, she or it
16 now knows or believes to be true with respect to the subject matter of the Released Claims, but each
17 Lead Plaintiff shall expressly and each Class Member, upon the Effective Date, shall be deemcd to
18 have, and by operation of the Judgment shall have, fully, finally, and forever settlcd and released any
19 and all Released Claims, known or unknown, suspected or unsuspected, contingent or non-
20 contingent, whether or not concealed or hidden, which now cxist, or heretofore have existed, upon
21 any theory of law or equity now existing or coming into existence in the future, including, but not
22 limited to, conduct which is negligent, intentional, with or without malice, or a breach of any duty,
)'_J law or rule, without regard to the subsequent discovery or existence of such different or additional
24 tàcts. The Lead Plaintiffs acknowledge, and the Class Members shall be deemed by operation of the
25 Judgment to have acknowledged, that the foregoing waiver was separately bargained for and a key
26 element of the settlement of which this release is a part.
27
28
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 8 of 20
I II. THE LITIGATION
2 On and after April 20, 200 I, the following actions were fied in the United States District
3 COUl1 for the Northern District of California (the "Court") as securities class actions on behalf of
4 purchasers of Cisco System, Inc. ("Cisco") securities during defined periods of time.
5 CASE NAME CASE NUMBER
Plumbers & Pipe fillers Local 572 Pension Fund C-01-20418-JWv. Cisco Systems, Inc., et al.
Walanka v. Cisco Systems, Inc., et at. C-01-1587-MEJ
Pirell Armstrong Tire Corp. Retiree Medical C-01-20375-JWBenefits Trust v. Cisco Systems, Inc., et al.
Lloyd v. Cisco Systems, Inc., et al. C-01-1613-EDL
Rubin v. Cisco Systems, Inc., et al. C-01-1608-MEJ
Caresio v. Cisco Systems, Inc., et al. C-01-1623-MEJ
Deitel v. Cisco Systems, Inc., et at. C-01-1629-MEJ
Schneier v. Cisco Systems, Inc., et at. CX-01-1641-EDL
Kolsky v. Cisco Systems, Inc., et al. C-OI-1683-EDL
Hsu v. Cisco Systems, Inc., et at. C-O 1-1699-JL
Orlando v. Cisco Systems, Inc., et at. C-OI-1719-MEJ
Maurer v. Cisco Systems, Inc., et at. C-01-1743-WDB
Campanella v. Cisco Systems, Inc., et al. C-O 1-1946-JCS
Mayer v. Cisco Systems, Inc., et al. C-O 1-2006-MEJ
Norell v. Cisco Systems, Inc., et al. C-01-2165-WDB
Hall v. Cisco Systems, Inc., et al. C-02-2347-MEJ
Taylor v. Cisco Systems, Inc., et al. C-01-2248-JCB
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
7--)
26
27
28
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 9 of 20
1 These actions were consolidated under case number C-O 1-20418-JW for all purposes by an
2 order filed November 15, 2001. The eonsolidated actions are referred to herein collectively as the
3 "Litigation." On November 14,200 I, Alexander Nehring, Plumbers & Pipefitters National Pension
4 Fund, Carpenters Pension Fund of Ilinois, and Central States, Southeast and Southwest Areas
5 Pension Fund, and John Petrera were appointed as Lead Plaintiffs.
6 The operative complaint in the Litigation is the First Amended Class Aetion Complaint for
7 Violations of the Federal Securities Laws (the "Complaint"), fied Dccember 6, 2002. The
8 Complaint alleges violations of §§ 1 O(b), 20(a) and 20A of the Securities Exchange Aet of 1934 and
9 Rule 10b-5 promulgated thereunder on behalf of a class of purchasers of Cisco securities.
10 iv.
11
CLAIMS OF THE LEAD PLAINTIFFS AND BENEFITS OFSETTLEMENT
12The Lead Plaintiffs believe that the claims asserted in the Litigation have merit and that the
evidenee developed to date supports the claims. However, counsel for the Lead Plaintiffs recognize
and acknowledge the expense and length of continued proceedings neeessary to prosecute the
Litigation against the Defendants through trial and through appeals. Counsel for the Lead Plaintiffs
13
14
15also have taken into account the uncertain outeome and the risk of any litigation, especially in
16
17
18
19
20
complex actions such as the Litigation, as well as the diffeulties and delays inherent in such
litigation. Counsel for the Lead Plaintiffs also are mindful of the inherent problems of proof under
and possible defenses to the securities law violations asserted in the Litigation. Counsel for the Lead
Plaintiffs believe that the settlement set forth in the Stipulation contèrs substantial benefits upon the
Class. Based on their evaluation, counsel for the Lead Plaintiffs have determined that the settlement21
set forth in the Stipulation is in the best interests of the Lead Plaintiffs and the Class.22
V. DEFENDANTS' STATEMENT AND DENIALS OF WRONGDOING ANDLIABILITY23
24 The Defendants have denied and eontinue to deny eaeh and all of the claims alleged by the
25 Lead PlaintitTs in the Litigation. The Defendants expressly have denied and continue to deny all
26 eharges of wrongdoing or liability against them arising out of any of the eonduct, statements, acts or
27 omissions alleged, or that could have been alleged, in the Litigation. The Defendants also have
28 denied and continue to deny, inter alia, the allegations that the Lead Plaintiffs or the Class have
NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(PVT) - 8-
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 10 of 20
suffered damage, that the priee of Cisco common stoek was artificially inf1ated by reasons of alleged
2 misrepresentations, non-disclosures or otherwise, that any of the Individual Defendants traded on
3 inside information, or that the Lead Plaintiffs or the Class were harmed by the eonduct alleged in the
4 Complaint and Defendants believe that the evidence developed to date supports their positions.
5 Nonetheless, the Defendants have concluded that further eonduet of the Litigation would be
6 protracted and expensive, and that it is desirable that the Litigation be fully and finally settled in the
7 manner and upon the terms and conditions set forth in the Stipulation. The Detèndants also have
8 taken into aecount the uncertainty and risks inherent in any litigation, especially in eomplex cases
9 like the Litigation. The Defendants have, therefore, detennined that it is desirable and benefieial to
i 0 them that the Litigation be settled in the manner and upon the terms and conditions set f0l1h in the
11 Stipulation.
12 VI. TERMS OF THE PROPOSED SETTLEMENT
13 The Defendants have paid or eaused to be paid into an escrow account, pursuant to the tenns
14 of the Stipulation of Settlement dated as of August 28, 2006 (the "Stipulation"), cash in the amount
15 01'$99,250,000 which has been earning and wil continue to earn interest for the benefit of the Class.
16 In exchange for such payment, the Released Claims wil be released, diseharged and dismissed with
17 prejudice as against eaeh of the Released Persons.
18 A portion of the settlement proceeds will be used tor certain administrative expenses,
19 including costs of printing and mailing this Notice, the eost of publishing a newspaper notice,
20 payment of any taxes assessed against the Settlement Fund and eosts associated with the processing
21 of claims submitted. In addition, as explained below, a portion of the Settlement Fund may be
22 awarded by the Court to eounsel for plaintiffs as attorneys' fees and for reimbursement of out-of-
23 pocket expenses. The balance of the Settlement Fund (the "Net Settlement Fund") will be
24 distributed according to the Plan of Allocation described below to Class Members who submit valid
25 and timely Proof of Claim forms.
26 VII. THE RIGHTS OF CLASS MEMBERS
27 If you are a Class Member, you may reeeive the benefit of and you will be bound by the
28 terms of the proposed settlement described in §VL of this Notice, upon approval of it by the Court.
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 11 of 20
1 If you are a Class Member, you have the following options:
2 l. You may fie a Proof of Claim as described below. If you choose this option, you
3 will remain a Class Member, you will share in the proceeds of the proposed settlement if your claim
4 is timely and valid and if the proposed settlement is finally approved by the Coui1, and you will be
5 bound by the Judgment and release described below.
6 2. If you do not wish to be included in the Class and you do not wish to participate in
7 the proposed settlement described in this Notice, you may request to be excluded. To do so, you
8 must submit a ',Titten request for exclusion that must be received on or before
9 2006. You must set forth: (a) your name, address and telephone number; (b) the numbcr of shares of
10 Ciseo securities purchased and the number of shares sold during the Class Period and held on
Ii Febmary 6, 2001 and the dates and prices of such purchase(s), and/or sale(s); and (c) that you wish
12 to be excluded from the Class. The exclusion request should be addressed as follows:
13 Cisco Securities LitigationClaims Administratore/o Gilardi & Co. LLCP.O. Box 808072Petaluma, CA 94975-8072
14
15
16 NO REQUEST FOR EXCLUSION WILL BE CONSIDERED VALID UNLESS ALL OF THE
17 INFORMATION DESCRIBED ABOVE IS INCLUDED IN ANY SUCH REQUEST,
18 If you timely and validly request exclusion from the Class, (a) you will be excluded from the
19 Class, (b) you will not share in the proceeds of the settlement described herein, (c) you will not be
20 bound by any judgment entered in the Litigation, and (d) you will not be precluded, by reason of
21 your deeision to request exclusion from the Class, from otherwise prosecuting an individual claim, if
22 timely, against Defendants based on the matters complained of in the Litigation.
23 3, If you do not request in writing to be excluded from the Class as set forth in il2 above,
24 you will be bound by any and all determinations or judgments in the Litigation in connection with
25 the settlement entered into or approved by the Court, whether favorable or unfavorable to the Class,
26 and you shall be deemed to have, and by operation of the Judgment shall have fully released all of
27 the Released Claims against the Released Persons, whether ornot you submit a valid Proof of Claim.
28
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 12 of 20
4. You may object to the settlement and/or the applieation of Plaintiffs' Co-Lead
2 Counselor Lead Plaintiffs for an award of attorneys' fees and reimbursement of expenses in the
3 manner set forth below. The filing ofa Proof of Claim by a Class Member does not preclude a Class
4 Member from objecting to the settlement. However, if your objection is rejected you will be bound
5 by the settlement and the Judgment just as if you had not objected.
6 5. You may do nothing at alL. If you choose this option, you will not share in the
7 proceeds of the settlement, but you wil be bound by any Judgment entered by the Court, and you
8 shall be deemed to have, and by operation of the Judgment shall have fully released all of the
9 Released Claims against the Released Persons.
10 If you are a Class Member, you may, but are not required to, enter an appearance through
11 counsel of your own choosing at your own expense. If you do not do so, you will be represented by
12 Plaintiffs' Co-Lead Counsel: Lerach Coughlin Stoia Geller Rudman & Robbins LLP, Keith F. Park,
13 Spencer A. Burkholz, 655 W. Broadway, Suite 1900, San Diego, CA, 92101; Lerach Coughlin Stoia
14 Geller Rudman & Robbins LLP, Patrick 1. Coughlin, 100 Pine Street, Suite 2600, San Francisco, CA
15 94111; and Levin, Papantonio, Thomas, Mitehell, Echsner & Proetor, P.A., Timothy M. O'Brien,
16 316 South Baylen Street, Suite 600, Pensaeola, FL 32501.
17 VII. PLAN OF ALLOCATION
18 The Net Settlement Fund will be distributed to Class Members who submit valid, timely
19 Proof of Claim forms ("Authorized Claimants") underthe Plan of Allocation described below. The
20 Plan of Allocation provides that you will be eligible to participate in the distribution of the
21 Settlement Fund only if you have a net loss on all transactions in Cisco securities during the Class
22 Period.
23 For purposes of determining the amount an Authorized Claimant may recover under the Plan
24 of Alloeation, Plaintiffs' Co-Lead Counsel have eon suited with their damage consultants and the
25 Plan of Allocation reflects an assessment of the damages that they believe could have been recovered
26 had Lead Plaintiffs prevailed at triaL.
27 To the extent there are suffcient funds in the Net Settlement Fund, each Authorized Claimant
28 will receive an amount equal to the Authorized Claimant's claim, as defined below. If; however, the
NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(PVT) - 11 -
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 13 of 20
amount in the Net Settlement Fund is not suffcient to permit payment of the total claim of each
2 Authorized Claimant, then each Authorized Claimant shall be paid the percentage of the Net
3 Settlement Fund that each Authorized Claimant's claim bears to the total of the claims of all
4 Authorized Claimants. Payment in this manner shall be deemed conclusive against all Authorized
5 Claimants.
6 A claim will be calculated as follows:
7 COMMON STOCK8 This allocation is based on the daily per share amounts set forth in Exhibit 1 and shall be
9 caleulated as follows:
10 1. For shares of Cisco eommon stoek purchased from November 10, 1999 through
11 February 6, 2001, and
12 (a)
(b)
sold prior to February 7, 2001, the claim per share is $0;
13 retained at the end of February 6, 2001, the claim per share shall be the daily
14 per share amount on the date of purchase.
15 CALL OPTIONS
16 i. For call options on Cisco common stoek purchased from November 10, 1999 through
17 February 6, 200 i, and
18 (a) ow/led at the end of February 6, 2001, the claim per call option is the
19 diftèrence between the priee paid for the call option less the proceeds received upon the settlement
20 of the eall option contract;
21 (b) /lot ow/led at the end of February 6, 2001, the claim per call option is $0.
22 2. For call options on Cisco common stock writte/l from November 10, 1999 through
23 February 6, 200 I, the claim per call option is $0.
24 PUT OPTIONS
25 i. For put option on Cisco eommon stock writte/l from November 10, 1999 through
26 February 6, 2001, and
27
28
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 14 of 20
(a) held at the end of February 6, 2001, the claim per put option is the difference
2 between the price paid upon settlement of the put option contract less the initial proceeds received
3 upon the sale of the put option eontraet;
4
5
(b) /lot held at the end of February 6, 200 I, the elaim per put option is $0.
2. For put options on Ciseo common stock piircliased from November 10, 1999 through
6 February 6, 2001, the claim per put option is $0.
7 Note: In the case the option was exercised for Cisco common stock, the amount paid, or
8 proceeds received, upon the settlement of the option contract equals the intrinsie value of the option
9 using Cisco eommon stock's closing price on the date the option was exercised.
10 Note: The combined recovery for the call options and the put options shall not exceed 3% of
II the Settlement Fund.
12 The date of purehase or sale is the "contraet" or "trade" date as distinguished from the
13 "settlement" date.
14 For Class Members who held shares at the beginning of the Class Period or made multiple
15 purchases or sales during the Class Period, the first-in, first-out ("FIFO") method will be applied to
16 sueh holdings, purchases and sales for purposes of calculating a claim. Under the FIFO method,
17 sales of shares during the Class Period will be matehed, in chronological order, first against shares
18 held at the beginning of the Class Period. The remaining sales of shares during the Class Period wil
19 then be matched, in chronologieal order, against shares purchased during the Class Period.
20 A Class Member will be eligible to receive a distribution from the Net Settlement Fund only
21 if a Class Member had a net loss, after all profits trom transactions in Cisco securities during the
22 Class Period are subtracted trom all losses. However, the proeeeds from sales of stock which have
23 been matched against stock held at the beginning of the Class Period will not be used in the
24 calculation of such net loss. No distributions will be made to Class Members who would otherwise
25 receive less than $10.00.
26 The Court has reserved jurisdiction to allow, disallow or adjust the claim of any Class
27 Member on equitable grounds.
28
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Payment pursuant to the Plan of Allocation set forth above shall be conclusive against all
2 Authorized Claimants. No person shall have any claim of any kind against Defendants or their
3 Related Parties with respect to the investment or distribution of the Settlement Fund. No Person
4 shall have any claim against Plaintiffs' Co-Lead Counselor any claims administrator or other person
5 designated by Plaintiffs' Co-Lead Counsel based on distributions made substantially in accordance
6 with the Stipulation and the settlement contained therein, the Plan of Alloeation, or further orders of
7 the Court. All Class Members who fail to complete and fie a valid and timely Proof of Claim and
8 Release shall be barred from partieipating in distributions from the Settlement Fund (unless
9 otherwise ordered by the Court), but otherwise shall be bound by all of the terms of the Stipulation,
10 including the terms of any judgment entered and the rcleases given.
11 ix. PARTICIPATION IN THE SETTLEMENT
12 TO PARTICIPATE IN THE DISTRIBUTION OF THE NET SETTLEMENT FUND,
13 YOU MUST TIMELY COMPLETE AND RETURN THE PROOF OF CLAIM AND
14 RELEASE FORM THAT ACCOMPANIES THIS NOTICE. The Proof of Claim and Release
15 must be postmarked on or before , 2006, and delivered to the Claims
16 Administrator at the address below. Unless the Court orders otherwise, if you do not timely submit a
17 valid Proof of Claim, you will be baITed from receiving any payments from the Net Settlement Fund,
18 but will in all other respects be bound by the provisions of the Stipulation and the Judgment.
19 X. DISMISSAL AND RELEASES
20 If the proposed settlement is approved, the Court will enter a Final Judgment and Order of
21 Dismissal with Prejudiee ("Judgment". The Judgment will dismiss the Released Claims with
22 prejudice as to all Defendants. The Judgment will provide that all Class Members shall be deemed
23 to have released and forever diseharged all Released Claims against all Released Persons and that the
24 Released Persons shall be deemed to have released and diseharged all Class Members and eounsel to
25 the Lead Plaintiffs from all claims arising out of the prosecution and settlement of the Litigation or
26 the Released Claims.
27
28
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XI. APPLICATION FOR FEES AND EXPENSES
2 At the Settlement Hearing, counsel for plaintiffs will request the Coui1 to award attorneys'
3 fees of$15 million or approximately 15.1% of the Settlement Fund, plus reimbursement of the
4 expenses, not to exceed $8.9 million whieh were incurred in connection with the Litigation, plus
5 interest thereon. In addition, the Lead Plaintiffs wil seek reimbursement of their expenses
6 (ineluding lost wages) ineurred in representing the Class in the Litigation, not to exceed $75,000.00,
7 each. Such sums as may be approved by the Court will be paid from the Settlement Fund. Class
8 Members are not personally liable for any such fees or expenses.
9 To date, Plaintiffs' Co-Lead Counsel have not reeeived any payment for their services in
10 conducting this Litigation on behalf of the Lead Plaintiffs and Members of the Class, nor have
11 counsel been completely reimbursed for their substantial out-of-poeket expenses. The fee rcquested
12 by Plaintiffs' Co-Lead Counsel will compensate counsel for their eIÌorts in achieving the Settlement
13 Fund for the benefit of the Class, and for their risk in undertaking this representation on a wholly
14 eontingent basis. The tèe requested is well within (if not below) the range of fees awarded to
15 plaintitTs' counsel under similar circumstances in other litigation of this type.
16 XII. CONDITIONS FOR SETTLEMENT
17 The settlement is conditioned upon the oeeurrence of eertain events described in the
18 Stipulation. Those events include, among other things: (1) entry of the Judgment by the Court, as
19 provided for in the Stipulation; and (2) expiration of the time to appeal from or alter or amend the
20 Judgment. If, for any reason, anyone of the conditions described in the Stipulation is not met, the
21 Stipulation might be terminated and, if terminated, wil beeome null and void, and the parties to the
22 Stipulation will be restored to their respective positions as of August 27, 2006.
23 XII. THE RIGHT TO BE HEARD AT THE HEARING
24 Any Class Member who timely and validly fies a written objection to any aspect of the
25 settlement, the Plan of Alloeation, or the applieation for attomeys' fees and expenses, may appear
26 and be heard at the Settlement Hearing. Any such Person must submit a written notice of objection,
27 reeeived on or before 2006, to each of the following:
28 CLERK OF THE COURTNOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(PVT) - 15 -
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 17 of 20
1 UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIA280 South First StreetSan Jose, CA 95113
2
3
4 Co-Lead Counsel/or Plaintiffs:
5 LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLpKEITH F. PARKSPENCER A. BURKHOLZ655 W. Broadway, Suite 1900San Diego, CA 92 I 0 I
6
7
8
9
10
11
12
LEVIN, pApANTONI0, THOMAS, MITCHELL,ECHSNER & PROCTOR, P.ATIMOTHY M. O'BRIEN316 South Baylen Street, Suite 600Pensacola, FL 32501
13Counsel on Behalf olCisco Systems, Inc., John Chambers,Larry Carter, Judith 1. Estrin, Gary 1. Daichendt, CarlRedfield, Donald J. Listwin, Michaelangelo Volpi, DonaldValentine, Steven West and Edward Kozel14
15WINSTON & STRAWN LLpDAN K. WEBBROBERT Y. SPERLING35 West Wacker DriveChieago,IL 60601-9703
16
17
18
19
20
FENWICK & WEST LLpKEVIN p. MUCKDEAN S. KRISTY275 Battery StreetSan Francisco, CA 9411121
22Counsel on Behalf ol Price waterhouse Coopers LLP
7'_JHELLER EHRMAN LLpMICHAEL L. RUGEN333 Bush Street, Suite 3100San Francisco, CA 94104-2878
24
25
26The notice of objection must demonstrate the objecting Person's membership in the Class, including
27the number of Ciseo securities purehased and sold during the Class Period and held at the end of the
28
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 18 of 20
Class Period, and eontaIn a statement of the reasons for objection. Only Members of the Class who
2 have submitted written notices of objection in this manner will be entitled to be heard at the
3 Settlement Hearing, unless the Court orders otherwise.
4 xiv. SPECIAL NOTICE TO NOMINEES
5 If you hold any Cisco seeurities purchased during the Class Period and held on February 6,
6 200 I as nominee for a beneficial owner, then, within ten (10) days after you receive this Notice, you
7 must either: (1) send a eopy of this Notice and the Proof of Claim by first class mail to all such
8 Persons; or (2) provide a list of the names and addresses of such Persons to the Claims
9 Administrator:
10 Cisco Securities LitigationClaims Administrator
I I c/o Gilardi & Co. LLCP.O. box 808072
12 Petaluma, CA 94975-8072
13 If you choose to mail the Notice and Proof of Claim yourself, you may obtain from the
14 Claims Administrator (without eost to you) as many additional copies of these documents as you
15 will need to complete the mailing.
16 Regardless of whether you choose to complete the mailing yourself or elect to have the
17 mailing performed for you, you may obtain reimbursement for or advancement of reasonable
18 administrative costs actually incurred or expected to be incurred in coniieetion with forwarding the
19 Notice and Proof of Claim and which would not have been incurred bnt for the obligation to forward
20 the Notice and Proof of Claim, upon submission of appropriate documentation to the Claims
21 Administrator.
22 XV. EXAMINATION OF PAPERS
7'_J This Notice is a summary and does not describe all of the details of the Stipulation. For full
24 details of the matters discussed in this Notice, you may review the Stipulation filed with the Court,
25 whieh may be inspected during business hours, at the offce of the Clerk of the Court, United States
26 Courthouse, Northern District of California, 280 South First Street, San Jose, California or at
27 www.Gilardi.com.
28
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 19 of 20
If you have any questions about the settlement of the Litigation, you may contact Plaintiffs'
2 Co-Lead Counsel by \\Titing:
3
4
5
6
7
8
9 DATED:
LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLPKEITH F. PARKSPENCER A. BURKHOLZ655 W. Broadway, Suite 1900San Diego, CA 92101
DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE,
,2006 BY ORDER OF THE COURTUNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIA10
11 S:\Scnlcmcnt\Cisco.sct\V3 AI 8-28 Oû033578.doc
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EXHIBIT A-2
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 1 of 12
1 LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP
2 WILLIAM S. LERACH (68581)KEITH F. PARK (54275)
3 SPENCER A. BURKHOLZ (147029)DANIEL S. DROSMAN (200643)
4 JONAH H. GOLDSTEIN (193777)MATTHEW P. MONTGOMERY (180196)
5 LUCAS F. OLTS (234843)JESSICA D. TALLY (234432)
6 655 West Broadway, Suite 1900San Diego, CA 92101
7 Telephone: 619/231-1058619/231-7423 (fax)
8 BillL~lerachlaw.coIlKcithP~lerachlaw.coIl
9 SpenceB~lerachlaw.coIlDanD~lerachlaw.com
1 0 JonahG~lerachlaw.comMattM~lerachlaw.com
11 LukcO~lerachlaw.comJessica T~lerachlaw.com12 andPATRICK J. COUGHLIN (11 1070)
13 LESLEY E. WEAVER (191305)100 Pine Street, Suite 2600
14 San Francisco, CA 94111Telephone: 415/288-4545
15 415/288-4534 (fax)PatC~lerachlaw.com
16 LesleyW~lerachlaw.com
17 Co-Lead Counsel for Plaintiffs
LEVIN, PAPANTONIO, THOMAS, MITCHELL,ECHSNER & PROCTOR, P.A.
TIMOTHY M. O'BRIEN Ú)/'o hac vice)316 South Baylen Street, Suite 600Pensacola, FL 32501Telephone: 850/435-7000850/497-7057 (fax)
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19 UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION
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22 In re CISCO SYSTEMS, INC. SECURITESLITIGATION
25 ALL ACTIONS.
Master File No. C-01-20418-JW(PVT)
CLASS ACTION
PROOF OF CLAIM AND RELEASE
EXHIBIT A-2
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 2 of 12
i. GENERAL INSTRUCTIONS
2 1. To recover as a Member of the Class based on your claims in the action entitled In re
3 Cisco Systems, Inc. Sec. Litig., Master File No. C-O 1-20418-JW(PVT) (the "Litigation"), you must
4 complete and, on page _ hereof, sign this Proof of Claim and Release. If you fail to timely fie a
5 properly addressed (as set forth in paragraph 3 below) Proof of Claim and Release, your claim may
6 be rejected and you may be precluded from any recovery from the Settlement Fund created in
7 connection with the proposed sett1eIlent of the Litigation.
8 2. Submission of this Proof of Claim and Release, however, does not assure that you
9 will share in the proceeds of settlement in the Litigation.
10 3. YOU MUST MAIL YOUR COMPLETED AND SIGNED PROOF OF CLAIM
11 AND RELEASE POSTMARKED ON OR BEFORE
12 ADDRESSED AS FOLLOWS;
, 2006,
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Cisco Securities LitigationClaims Administratorc/o Gilardi & Co. LLCP.O. Box 808072Petaluma, CA 94975-8072
16 If you are NOT a Member of the Settlement Class (as defined in the "Notice of Pendency and
17 Proposed SettleIlent of Class Action") DO NOT subIlit a Proof of ClaiIl and Release form. ,
18 4. If you are a Member of the Class, and you do not timely and validly request
19 exclusion, you are bound by the terms of any judgIlent entered in the Litigation, WHETHER OR
20 NOT YOU SUBMIT A PROOF OF CLAIM AND RELEASE.
21 II. DEFINITIONS
22 Terms as defined in the Notice of Pendency and Proposed Settlement of Class Action shall
23 also apply herein.
24 II. CLAIMANT IDENTIFICATION
25 1. If you purchased Cisco common stock or options and held the certificate(s) in your
26 name, you are the beneficial purchaser as well as the record purchaser. If, however, the certificate(s)
27 were registered in the name of a third party, such as a nominee or brokerage finn, you are the
28 beneficial purchaser and the third pary is the record purchaser.
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 3 of 12
1 2. Use Part I of this form entitled "Claimant Identification" to identifY each purchaser of
2 record ("nominee"), if different from the beneficial purchaser of Cisco common stock or options
3 which forms the basis of this claim. THIS CLAIM MUST BE FILED BY 'THE ACTUAL
4 BENEFICIAL PURCHASER OR PURCHASERS, OR THE LEGAL REPRESENTATIVE OF
5 SUCH PURCHASER OR PURCHASERS, OF THE CISCO COMMON STOCK OR OPTIONS
6 UPON WHICH THIS CLAIM IS BASED.
7 ,~. All joint purchasers must sign this claim. Executors, administrators, guardians,
8 conservators and trustees must complete and sign this claim on behalf of Persons represented by
9 them and their authority must accompany this claiIl and their titles or capacities must be statcd. The
10 Social Security (or taxpayer identification) number and telephone number of the beneficial owner
1 I may be used in verifying the claim. Failure to provide the foregoing infom1aion could delay
12 verification of your claim or result in rejection of the claim.
13 iv. CLAIM FORM
14 1. Use Part II of this fom1 entitled "Schedule of Transactions in Cisco Common Stock or
15 Options" to supply all required details of your transaction(s) in Cisco common stock or options. If
16 you need more space or additional schedules, attach separate sheets giving all of the required
17 information in substantially the san1e form. Sign and print or type your name on each additional
18 sheet.
19 2. On the schedules, provide all of the requested information with respect to all of your
20 purchases and all of your sales of Cisco securities which took place at anytiIle beginning November
21 10, 1999 through February 6, 2001, inclusive (the "Class Period"), whether such transactions
22 resulted in a profit or a loss. Failure to report all such transactions may result in the rejection of your
23 claim.
24 ,~. List each transaction in the Class Period separately and in chronological order, by
25 trade date, beginning with the earliest. You must accurately provide the month, day and year of each
26 transaction you list.
27 4. The date of covering a "shoi1 sale" is deemed to be the date of purchase of Cisco
28 securities. The date of a "short sale" is deemed to be the date of sale of Cisco securities.
PROOF OF CLAIM AND RELEASE - C-01-20418-JW(PVT) - 2 -
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 4 of 12
1 Broker confirmations or other documentation of your transactions in Cisco securities5.
2 must be attached to your claim. Failure to provide this documentation could delay verification of
3 your claim or result in rejection of your claim. Certain claimants with a largc number of
4 transactions, such as institutional holders, may ask (or be askcd) to submit claim infom1ation in an
5 electronic format. The Claims Administrator will decide when electronic fiing of inloimation will
6 be authorized. In these cases, all claimants must stil submit a manually signed paper Proof of Claim
7 form. The Proof of Claim form must list all the data and transactions, whether or not they are also
8 submitted electronically. Only electronic fies authorized by the ClaiIls Administrator will be
9 considered properly submitted. The Claims Administrator will issue a written acknowledgement of
10 receipt and acceptance of electronically submitted data to the claimant.
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8PART 1:
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
In re Cisco Systems, Inc. Securities LitigationMaster File No. C-01-20418-JW(PVT)
PROOF OF CLAIM AND RELEASE
Must be Postmarked on or Before:,2006
Please Type or Print
CLAIMANT IDENTIFICATION9
10Beneficial OW11er's Name (First, Middle, Last)
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12 Street Address
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14 City
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State or Province
16 Zip Code or Postal Code
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Country
18 Social Security Number or
Taxpayer Identification Number19
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Individual
Corporation/Other
Area Code21
22 --Area Code
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Telephone Numbcr (work)
'relephone Number (home)
Record Owner's Name (if different from bene11cial owner listed abovc)?--)
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 6 of 12
1 PART II: SCHEDULE OF TRANSACTIONS IN cisco COMMON STOCK OR OPTIONS
A. Number of sharcs of Cisco common stoek or options held at the beginning of trading
on Novembcr 10, 1999:
B. Purchases (November 10, 1999 -- February 6, 2001, inclusive) olCisco commonstock or options:
Trade Date Type ofSccurity Number of Shares or Total Purchase PriceMonth Day Year Options Purchased
1.
2.i,
3.
IMPORTANT: Identify by number listed above all purchases in which you covered a "shortsale":
C. Sales (November 10, 1999 - Fcbruary 6, 2001, inclusive) of Cisco common stock oroptions:
Trade Date Type of Security Number of Shares or Total Sales Price
Month Day Ycar Options Sold
1.
2.
3.
D. Number of shares of Cisco common stock or options held at close of trading onFebruary 6, 2001:
If you require additional space, attach extra schedules in the same format as above. Sign and printyour name on each additional page.
YOU MUST READ THE RELEASE AND SIGN ON PAGE-
PROOF OF CLAIM AND RELEASE - C-01-20418-JW(PVT) - 5 -
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 7 of 12
1 V.
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SUBMISSION TO JURISDICTION OF COURT ANDACKNOWLEDGMENTS
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1 submit this Proof of Claim and Release under the terms of the Stipulation of Settlement
dcscribed in the Notice. I also submit to the jurisdiction of the United States District Co1i1 for the
Northern District of California, with respect to Ily claim as a Class Mcmber and for purposes of4
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enforcing the release set forth herein. 1 further acknowledge that 1 am bound by and subject to the
tern1s of any Judgment that may be entered in the Litigation. I agree to furnish additional
information sueh as transactions in other Cisco securities (including options) to the Claims
Administrator to support this claim if required to do so. I have not submitted any other claim
covering the same purchases or sales of Cisco securities during the Class Period and know of no
other Person having done so on my behalf.
VI. RELEASE
131. I hereby acknowledge full and complete satisfaction of, and do hereby fully, 11nally
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and forever settle, release and discharge from the Released Claims each and all of the Defendants
and each and all oftheir "Related Parties," de11ned as each of a Defendant's past or present directors,
offcers, employees, partners, insurers, co-insurers, reinsurers, controlling shareholders, attorneys,
accountants or auditors, personal or legal representatives, predecessors, successors, parents,
subsidiaries, divisions, joint ventures, assigns, spouses, heirs, related or affliated entities, any entity
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in which a Defendant has a controlling interest, any members of any Individual Defendant's
immediate family, or any trust of which any Individual Defendant is the settlor or which is for the
bene11t of any Individual Defendant's family.
2. "Released Claims" shall collectively mean any and all claims arising from the
purchase (as the term is used in the Securities Exchange Act to include contract to buy, purchase, or
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24otherwise acquire) or sale of Cis eo securities and relating in any way to Cisco's financial statements,
the sale of securities by any Cisco otTcer, director or employee, or any other acts, facts, statements25
26or omissions during the Class Period that are alleged or could have been alleged in the Litigation.
"Released Claims" includes "Unknown Claims" as defined in paragraph 3 hereof.27
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 8 of 12
1 3. "Unknown Claims" means any Released Claims which any Lead Plaintiff or Class
2 Member does not know or suspect to exist in his, her or its favor at the time of the release of the
3 Released Persons which, if known by him, her or it, might have affected his, her or its settlement
4 with and release of the Released Persons, or might have affected his, her or its decision not to object
5 to this settlement. With respect to any and all Released Claims, the Settling Parties stipulate and
6 agree that, upon the Eftèctive Date, the Lead Plaintiffs shall expressly and each of the Class
7 Members shall be deemed to have, and by operation of the Judgment shall have, expressly waived
8 the provisions, rights and benefits of California Civil Code § 1542, which provides:
9 A general release does not extend to claims which the creditor does notknow or suspect to exist in his favor at the time of executing the release, which if
10 known by him must have materially affected his settlement with the debtor.
11 Thc Lcad Plaintiffs shall expressly and each of the Class Members shall be deemed to have, and by
12 operation of the Judgment shall have, expressly waived any and all provisions, rights and benefits
13 conferred by any law of any state or ten'itory of the United States, or principle of common law,
14 which is similar, comparable or equivalent to Califòrnia Civil Code § 1542. The Lead PlaintiffS and
15 Class Members may hereafter discover facts in addition to or different from those which he, she or it
16 now knows or believes to be true with respect to the subject matter of the Released Claims, but each
17 Lead Plaintiff shall expressly and each Class Member, upon the Effective Date, shall be deemed to
18 have, and by operation of the Judgment shall have, fully, finally, and forever settled and released any
19 and all Released Claims, known or unknown, suspected or unsuspected, contingent or non-
20 contingent, whether or not concealed or hidden, which now exist, or heretofore have existed, upon
2 i any theory of law or equity now existing or coming into existence in the future, including, but not
22 limited to, conduct which is negligent, intentional, with or without malice, or a breach of any duty,
?'--' law or rule, without regard to the subsequent discovery or existence of such diffcrent or additional
24 facts. The Lead Plaintiffs acknowledge, and the Class Members shall be deemed by operation of the
25 Judgment to have acknowledged, that the foregoing waiver was separately bargained for and a key
26 element of the settlement of which this release is a par.
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 9 of 12
4. This release shall only be in force when the Court approves the Stipulation of
2 Settlement and the Stipulation becomes effective on the Effective Date (as defined in the
3 Stipulation).
4 5. I (We) hereby warrant and represent that i (we) have not assigned or transfened or
5 purported to assign or transfèr, voluntarily or involuntarily, any matter released pursuant to this
6 release or any other part or portion thereof.
7 6. I (We) hereby warrant and represent that I (we) have included information about all
8 of my (our) transactions in Cisco comIlon stock or options which occuned during the Class Period
9 as well as the number of shares of Cisco securities held by me (us) at the opening of trading on
10 November 10, 1999, and at the close of trading on February 6, 2001.
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 10 of 12
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4 NAME:
5Check appropriate box:
6 D Individual/Sole ProprietorD Corporation D Partnership7 D IRA D Other
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SUBSTITUTE FORM W-9
Request for Taxpayer Identification Number ("TIN") and Cei1ification
PART I
DD
Pension Plan
Trust
Enter TIN on appropriate line.
For individuals, this is your social security number ("SSN").
For sole proprietors, you must show your individual name, but you may also enter yourbusiness or "doing business as" name. You may enter either your SSN or your EmployerIdentification Number ("ETN").
For other entities, it is your ETN.
orSocial Security Number --
14Employer Identification Number
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PART II
For Payees Exempt from Backup Withholding
If you are exempt from backup withholding, enter your conect TIN in Part I and write "exempt" on17 the following line:
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PART II
Certi11cation
20 UNDER THE PENALTY OF PERJURY, I (WE) CERTIFY THAT:
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The number shown on this fonn is my correct TIN; and
I (We) certify that I am (we are) NOT subject to backup withholding under the provisions ofSection 3406 (a)(1 )(C) of the Internal Revenue Code because: (a) I am (we are) exemptfrom backup withholding; or (b) I (we) have not been notified by the Internal RcvenueService that I am (we are) subject to backup withholding as a result of a failure to report allinterest or dividends; or (c) the Internal Revenue Service has notified me (us) that I am (weare) no longer subject to backup withholding.
PROOF OF CLAIM AND RELEASE - C-01-20418-JW(PVT) - 9 -
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 11 of 12
NOTE: If you have been notified by the Internal Revenue Service that you are subject tobackup withholding, you must cross out Item 2 above.
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SEE ENCLOSED FORM W-9 INSTRUCTIONS
The Internal Revenue Service does not require your consent to any provision of this document other
than the certification required to avoid backup withholding.
I declare under penalty of perjury under the laws of the United States of America that the
foregoing information supplied by the undersigned is true and correct.7
Executed this8
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(City)10
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18 Reminder Checklist:
day of
(Month / Year)
(State / Country)
(Sign your name here)
(Type or print your name here)
(Capacity ofperson(s) signing,e.g., Beneficial Purchaser,Executor or Administrator)
ACCURATE CLAIMS PROCESSING TAKES ASIGNIFICANT AMOUNT OF TIME.
THANK YOU FOR YOUR PATIENCE.
Please sign the above release and declaration.
Remember to attach supporting documentation.
Do not send original or copies of stock certificates.
Keep a copy of your claim form fòr your records.
If you desire an acknowledgment of receipt of your claim form, please send itCertified Mail, Return Receipt Requested.
If you move, please send us your new address.25
S:\Scukmcnt\Cîsco.$ct\V3 A2 8~28 00033582,doc26
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EXHIBIT A-3
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 1 of 5
LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP
2 WILLIAM S. LERACH (68581)KEITH F. PARK (54275)
3 SPENCER A. BURKHOLZ (I 47029)DANIEL S. DROSMAN (200643)
4 JONAH H. GOLDSTEIN (I 93777)MATTHEW P. MONTGOMERY (I 80196)
5 LUCAS F. OL TS (234843)JESSICA D. TALLY (234432)
6 655 West Broadway, Suite 1900San Diego, CA 92101
7 Telephone: 619/231-1058619/231-7423 (fax)
8 BillUàìlerachlaw.comKcithP0J.lerachlaw.com
9 SpenceB\1lerachlaw.comDanD\1lerachla w .com
10 JonahG\1lerachlaw.comMattM\1lerachlaw.com
I I LukeO\1lerachlaw.comJessica T\1lerachlaw.com12 - and -PATRICK J. COUGHLIN (I I 1070)
13 LESLEY E. WEAVER (I91305)100 Pine Street, Suite 2600
14 San Francisco, CA 941 I ITelephone: 415/288-4545
15 4 I 5/288-4534 (fax)PatC\1lerachlaw.com
16 LesleyW\1lerachlaw.com
17 Co-Lcad Counsel for Plaintiffs
LEVIN, PAPANTONIO, THOMAS, MITCHELL,ECHSNER & PROCTOR, P.A.
TIMOTHY M. O'BRIEN (pro hac vice)316 South Baylen Street, Suite 600Pensacola, FL 3250 iTelephone: 850/435-7000850/497-7057 (fax)
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19 UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION
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22 In re CISCO SYSTEMS, INC. SECURITIESLITIGATION
y-) ALL ACTIONS.
Master File No. C-Oi -204 i 8-JW(PVT)
CLASS ACTION
SUMMARY NOTICE
EXHIBIT A-3
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Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 2 of 5
TO: ALL PERSONS WHO PURCHASED cisco SYSTEMS, INC. ("CiSCO")SECURITIES DURING THE PERIOD BEGINING NOVEMBER 10, 1999
2 THROUGH FEBRUARY 6, 2001, AND HELD THOSE SECURITES ON THELAST DAY OF THAT PERIOD
3YOU ARE HEREBY NOTIFIED, pursuant to an Order of the Unitcd States District Court
4for the Northern District of California, that a hearing will be held on , 2006, at
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.m., before the Honorable James Ware, at the United States Courthouse, 280 South First
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Street, San Jose, California, for the purpose of dctermining (I) whethcr the proposed settlement of
the claims in the Litigation for the principal amount of$99.25 million, plus accrued interest, should
be approved by the Court as fair, just, reasonable and adequate; (2) whether a Final Judgment and
Order of Dismissal with Prejudice should be entered by the Court dismissing the Litigation with
prejudice; (3) whether the Plan of Allocation is fair, reasonable and adequate and therefore should be10
IIapproved; and (4) whether the application of Plaintiffs' Co-Lead Counsel for the payment of
12attorneys' fees and reimbursement of expenses and the Lead Plaintiffs' expenses incurred in
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connection in this Litigation should be approved.
If you purchased or acquired Cisco securities during the period beginning November 10,
1999 through February 6, 2001 and held any of those securities on the last day of that period, your
rights may be affected by the settlement of this Litigation. If you have not received a detailed Notice
of Pendency and Proposed Settlement of Class Action ("Notice") and a copy of the Proof of Claim
and Release, you may obtain copies by \vriting to Cisco Securities Litigation, clo Gilardi & Co.,
LLC, P.O. Box 808072, Petaluma, CA 94975-8072, or on the internet at w\V\.Gilardi.coni. If you
are a Class Member, in order to share in the distribution of the Net Settlement Fund, you must21
22submit a Proof of Claim and Release postmarked no later than
establishing that you are entitled to recovery.
If you desire to be excluded from the Class, you must submit a Request for Exclusion to be
, 2006,
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24received by ,2006, in the manner and form explained in the detailed Notice referred to
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above. All Members of the Class who have not timely and validly requested exclusion from the
Class will be bound by any Judgment entered in the Litigation pursuant to the Stipulation of
Settlement.
SUMMARY NOTICE - C-01-20418-JW(PVT) - i -
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 3 of 5
Any objection to the settlement must be received by the following no later than
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,2006:
CLERK OF THE COURTUNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIA280 South First StreetSan Jose, CA 951 13
Co-Lead Counseljor Plaintiffs:
LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLPKEITH F. PARKSPENCER A. BURKHOLZ655 W. Broadway, Suite 1900San Diego, CA 92101
LEVIN, PAPANTONIO, THOMAS, MITCHELL,ECHSNER & PROCTOR, PATIMOTHY M. O'BRIEN3 I 6 South Baylen Street, Suite 600Pensacola, FL 32501
Counsel on Behalf of Cisco Systems, Inc., John Chambers,Larry Carter, Judith 1. Estrin, Gary 1. Daichendt, CarlRedfìeld, Donald 1. Listwin, Michaelangelo Volpi, DonaldValentine, Steven West and Edward Kozel
WINSTON & STRA \\IN LLPDAN K. WEBBROBERT Y. SPERLING35 West Wacker DriveChicago, IL 60601-9703
FENWICK & WEST LLPKEVIN P. MUCKDEAN S. KRISTY275 Battery StreetSan Francisco, CA 94111
SUMMARY NOTICE - C-01-20418-JW(PVT) - 2-
Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 4 of 5
I Counsel on Behalf olPricewaterhouseCoopers LLP
2 HELLER EHRMAN LLPMICHAEL L. RUGEN333 Bush Street, Suite 3 I 00San Francisco, CA 94104-2878
5 PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING
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6 THIS NOTICE. If you have any questions about the settlement, you may contact plaintiffs'
7 counsel at the address listed above.
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9 DATED:
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,2006
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SUMMARY NOTICE - C-01-20418-JW(PVT)
BY ORDER OF THE COURTUNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIA
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