Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

In re Leapfrog Enterprise, Inc. Securities Litigation

United States District Court, N.D. California

February 28, 2018

IN RE LEAPFROG ENTERPRISE, INC. SECURITIES LITIGATION This Document Relates to: All Actions.

          ORDER RE SUPPLEMENTAL BRIEFING AND/OR EVIDENCE DOCKET NO. 169

          EDWARD M. CHEN, UNITED STATES DISTRICT JUDGE

         The Court has reviewed Lead Plaintiff's motion for preliminary approval and accompanying submissions. Having done so, the Court hereby orders the parties to file supplemental briefing and/or evidence as follows. (A joint filing is preferred. This does not preclude the parties from providing their separate positions within the joint filing.) The parties' filing shall be made within one week of the date of this order.

         A. Maximum Value of the Case

         Lead Plaintiff states that its expert “estimates that the maximum recoverable damages under the alleged Class Period of May 5, 2014, through June 11, 2015, are $89 million.” Mot. at 10 n.4. Lead Plaintiff shall explain whether this estimate includes all of the claims it has ever asserted in this case or just the two accounting claims (i.e., the goodwill and long-lived asset claims). See, e.g., Docket No. 88 (order) (dismissing claims based on allegedly false and misleading statements about LeapFrog's inventory, the rollout of LeapTV, and LeapFrog's financial guidance).

         B. Risks of Litigation

         In its motion, Lead Plaintiff states that one risk of litigation with respect to the long-lived asset claim is the difficulty in proving that Lead Plaintiff or other putative class members' losses were due to the disclosure about the long-lived asset impairment as opposed to some other reason. See Mot. at 11 (“[B]ecause LeapFrog's stock price declined in the wake of the Company's announcement of its disappointing fiscal year 2015 financial results, an announcement that also contained substantial commentary on issues not directly related to taking a charge for LeapFrog's long-lived asset impairment, Defendants would have argued that facts other than the announcement of the impairment were the proximate cause of Lead Plaintiffs losses.”). The parties shall address what possible “other” reasons for the losses there could have been.

         C. Net Settlement Fund

         Under the Settlement Agreement, “Net Settlement Fund” is defined as “the Settlement Fund less: (i) Court-awarded attorneys' fees and expenses; (ii) Notice and Administration Expenses; (iii) Taxes; and (iv) any other fees or expenses approved by the Court.” Sett. Agmt. § III, ¶ 1.18. How much in taxes do the parties anticipate will be deducted from the gross settlement fund?

         D. Average Recovery

         Lead Plaintiff indicates that the average recovery per share is estimated to be $0.125 before deduction of attorney's fees and expenses and $0.083 after such deduction. What is the average recovery when not only attorney's fees and expenses are deducted but also claim administration fees and expenses (the full $350, 000 contemplated by the Settlement Agreement) and taxes?

         E. Attorney's Fees and Expenses

         Although the Court is not requiring Lead Plaintiff, at this time, to file a motion for attorney's fees and expenses, more information about the fees and expenses is needed than that contained within the pending motion. For example:

• What is the asserted lodestar? (An estimate is acceptable.)
• What is the range of hourly rates?
• What is the number of hours on which the lodestar is based?
• What were the major litigation tasks and how much time was spent on each? (Estimates are acceptable.)
• What and how much were the major expenses?

         F. In ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.