Free Status Report - District Court of Colorado - Colorado

Case 1:04-cv-01006-RPM

Document 279

Filed 12/14/2007

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

SPECIAL SITUATIONS FUND III, L.P., SPECIAL SITUATIONS CAYMAN FUND, L.P., SPECIAL SITUATIONS TECHNOLOGY FUND NEW, L.P., and SPECIAL SITUATIONS TECHNOLOGY FUND II, L.P., on behalf of themselves and others similarly situated, Plaintiffs, v. QUOVADX, INC., LORINE R. SWEENEY, GARY T. SCHERPING, JEFFREY M. KRAUSS, FRED L. BROWN, J. ANDREW COWHERD, JAMES B. HOOVER, CHARLES J. ROESSLEIN, and JAMES A. GILBERT, Defendants.

Civil Action No. 1:04-cv-01006-RPM

LEAD COUNSEL'S SUPPLEMENTAL STATUS REPORT AND REQUEST FOR REIMBURSEMENT OF ADDITIONAL EXPENSES

Lead Counsel, Lowenstein Sandler PC and Marc B. Kramer, Esq. (collectively, "Lead Counsel"), hereby submit this Supplemental Status Report and Request for Reimbursement of Additional Expenses. On November 8, 2007, this Court entered an Order mandating that Thuy Bui (Claim No. 1005946) and R. Jane Dehart (Claim No. 1005382) provide the Claims Administrator with additional information to resolve deficiencies with respect to their claims within fourteen (14) days. Neither Ms. Bui nor Ms. Dehart provided the requested

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Case 1:04-cv-01006-RPM

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information and, therefore, under the terms of the November 8, 2007 Order, these claims are now deemed rejected. See Declaration of Michelle LaCount ("LaCount Decl.") ¶ 3. Lead Counsel is not aware of any unresolved claims or objections. Therefore, Lead Counsel is pleased to report that 241 valid Claim Forms and Releases were received by the Claims Administrator. This figure is inclusive of both valid Claim Forms and Releases filed by the April 16, 2007 deadline and valid Claims Forms and Releases that were not timely filed but were otherwise permitted by the Court. The total Recognized Loss Amount for these claims is $$5,163,199.30, which represents more than a 100% recovery for each Claimant filing a valid Claim Form and Release. See LaCount Decl. ¶ 4. In light of the foregoing, Lead Counsel respectfully requests that Court enter an Order: (i) barring all Claimants, whether or not they are to receive payment from the Net Settlement Fund from making any further claim against the Net Settlement Fund or the Released Parties beyond the amount allocated to them by the Settlement Agreement as approved by the Court; and (ii) automatically rejecting all claims and/or objections received as of the date of entry of this Order. Additionally, Lead Counsel respectfully requests permission to transfer the Net Settlement Fund and the Class Notice and Administration Fund to a settlement fund trust account from which payments will be made by the Claims Administrator to authorized claimants pursuant to the Plan of Allocation (the "Disbursement Account"). The Claims Administrator will undertake the following steps concerning distribution upon receipt of the Net Settlement Fund and the Class Notice and Administration Fund into the Disbursement Account: (i) prepare checks, check registers, and cover letters, and mail checks with cover letters via First Class Mail to those who filed valid Claim Forms and -2-

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Releases; (ii) issue replacement checks upon request by payee; and (iii) answer inquiries about claim calculations and checks. Any amounts that remain in the Disbursement Account after six (6) months from the date of distribution will be disbursed to Authorized Claimants pursuant to Section 5.6 of the Stipulation of Settlement (Doc. #243). Such distribution will be made on a pro rata basis to the Claimants who cashed their initial distribution check and who would receive at least $10 from such redistribution. If any balance thereafter remains in the Disbursement Account, it will be donated pursuant to the requirements set forth in Section 5.6 of the Stipulation.1 With the Court's permission, the Claims Administrator will destroy the paper copies of the Claim Forms one year after the final distribution and will destroy electronic copies of claim records three years after the final distribution. Last, Lead Counsel respectfully requests reimbursement of $4,816.84 in expenses incurred since Lead Counsel made its application on April 24, 2007. While a more detailed break-down of expenses incurred is attached to the Declaration of Lawrence M. Rolnick, the majority of expenses were travel expenses associated with Lead Counsel's appearance before this Court for the Motion for Final Approval of the Settlement and the Motion for Reimbursement of Attorneys Fees and Expenses. Other expenses incurred relate to telecommunication charges for conference calls with the claims administrator and various Claimants; copying, printing and other related charges; and on-line legal research pertaining to Kaplan Fox and Kilsheimer's request for attorneys' fees and reimbursement of expenses. See Declaration of Lawrence M. Rolnick. Lead Counsel is submitting a proposed Order herewith.
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The Claims Administrator will continue to be responsible for filing tax returns and providing accounting services in connection with the funds in the Disbursement Account.

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DATED: December 14, 2007

Respectfully submitted, By: s/ Lawrence M. Rolnick Lawrence M. Rolnick, Esq. (LR-0546) LOWENSTEIN SANDLER PC 65 Livingston Avenue Roseland, New Jersey 07068 Telephone: (973) 597-2500 Fax: (973) 597-2469 Email: [email protected] Attorneys for Lead Plaintiffs Special Situations Fund III, L.P., Special Situations Cayman Fund, L.P., Special Situations Technology Fund New, L.P., and Special Situations Technology Fund II, L.P.

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