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Norma Rothman, Individually, and On Behalf of All Others Similarly Situated v. General Nutrition Corporation A Pennsylvania Corporation

October 11, 2011

NORMA ROTHMAN, INDIVIDUALLY, AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED, PLAINTIFF,
v.
GENERAL NUTRITION CORPORATION A PENNSYLVANIA CORPORATION, AND DOES 1-500, DEFENDANTS.



CLASS ACTION

Assigned for discovery matters to the Honorable Ralph Zarefsky

STIPULATED PROTECTIVE ORDER OF CONFIDENTIALITY [PROPOSED]

Date Action Filed: March 16, 2011 Trial Date: TBD Courtroom: 1

NOTE: CHANGES HAVE BEEN MADE TO THIS DOCUMENT

STIPULATION

Pursuant to the Federal Rules of Civil Procedure and the Court's Local Rules, the parties, plaintiff Norma Rothman ("Plaintiff" or "Rothman") and defendant General Nutrition Corporation ("GNC"), hereto submit the following [Proposed] Stipulated Protective Order of Confidentiality ("Order"). Under this Order, it is stipulated and agreed by and between the parties hereto, through their respective counsel and subject to the approval of the Court, that the following Order shall govern discovery and disclosures in this action. The parties agree and make such stipulation without waiving any claims or defenses in this action and without acknowledging the propriety of any claim by any party that any information produced during discovery in this action constitutes confidential information, as defined in Paragraph 3.1. This Order and the procedures herein shall not affect the rights of the parties to object to discovery on any grounds, nor shall it relieve the parties of the necessity of proper response or objection to discovery requests.

1. PURPOSES AND LIMITATIONS

Disclosure and discovery activity in this action are likely to involve production of confidential, proprietary, or private information for which special protection from public disclosure and from use for other than prosecuting this litigation is warranted. The parties hereto desire a protective order to protect the interests of each, respectively, in their own confidential information, as defined in Paragraph 3.1, by controlling access to and use of such information, while allowing discovery of the same to conduct this litigation and not for any other purpose.

The parties acknowledge that this Order does not confer blanket protections on all disclosures or responses to discovery and that the protection it affords extends only to the limited information or items entitled under the applicable legal principles to treatment as protected material, as defined below.

2. GOOD CAUSE FOR ENTRY

There is good cause for this Order in this action because discovery and disclosure will necessarily entail, among other things: (1) confidential and protected information regarding GNC customers, as detailed below in Section 3.1, information which is at the center of this lawsuit; and (2) information from GNC and third-parties with whom GNC has contracted regarding their business, business operations, pricing structure, proprietary computer and data systems which are competitively sensitive and confidential. Good cause exists where the protected information contains the identities of customers, customer purchase information, contract pricing information, internal marketing and strategy information, and sensitive business documents that disclose the company's and third-parties' competitive strategies or inner workings. See Lion Raisins, Inc. v. USDA, 354 F.3d 1072, 1081 (9th Cir. 2004) (finding volume, market share and marketing strategy information are protectable trade secrets); SI Handling Systems, Inc. v. Heisley, 753 F.2d 1244 (3d Cir. Pa. 1985) (explaining cost and pricing information qualify for trade secret protection); Watts v. Metro. Life Ins. Co., No. 09cv829 WQH (WVG), 2010 U.S. Dist. LEXIS 107201, at *9 (S.D. Cal. Oct. 7, 2010) (finding business costs and pricing structure warrant protection); First Advantage Background Servs. Corp. v. Private Eyes, Inc., 569 F. Supp. 2d 929, 942 (N.D. Cal. 2008) (holding that pricing and cost information constituted trade secrets); Whyte v. Schlage Lock Co., 101 Cal. App. 4th 1443, 1455-1456 (Cal. App. 4th Dist. 2002) (finding that pricing, costs, marketing, and payment terms are protectable trade secrets).

3. DEFINITIONS

3.1 Confidential Information

Information or tangible things, regardless of how generated, stored, or maintained, designated as "Confidential," such as trade secret information and confidential, competitive, or proprietary information, which qualify for protection under the standards developed under Federal Rule of Civil Procedure 26(c) and are designated as provided below in Paragraphs 5.2, 5.3, 5.4, and 5.5.

Confidential information includes the following:

(a) contracts with third party vendors, which contain negotiated confidentiality provisions and sensitive pricing and terms, as well as vendors' proprietary information regarding the services rendered to GNC, which, if released, would place GNC's competitors and the third party vendor's competitors at a competitive advantage;

(b) GNC's store training and operations manuals, which include proprietary information relating to GNC's training, operations, franchising, marketing activities and sales. If released, this information would harm GNC by placing its proprietary business operational information in the public domain;

(c) GNC's internal policies relating to the use and protection of its data, its Information Technology hardware and equipment information, and wireless access security policy, which, if released, would place GNC's systems, including customer and employee data, in the public domain and at risk of unauthorized access;

(d) GNC's point-of-sale training manuals, which contain information relating to GNC's proprietary software program that records, maintains and stores employee time records, purchasing, loss prevention, inventory control, pricing information, customer transactions, etc. Release of this information would compromise GNC's computer networks; and

(d) customer information, which may include personal identification information and information relating to customer purchases.

3.2 Counsel

Attorneys of record for the parties in this action, including their regular and temporary employees, such as paralegal, stenographic, and clerical employees.

3.3 Designating Party

A party or non-party that designates information or items that it produces in disclosures or responses to ...


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