Free Motion to Stay - District Court of Colorado - Colorado

Case 1:04-cv-01006-RPM

Document 235

Filed 01/03/2007

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 04-cv-01006-RPM 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, QUOVADX, INC., Defendant.

NOTICE OF PROPOSED SETTLEMENT AND JOINT MOTION TO STAY PROCEEDINGS Pursuant to Federal Rules of Civil Procedure 23(d) and 23(e)(1) and D.COLO.LCivR 6.1.B and 16.1, Lead Plaintiffs and Defendant Quovadx, Inc. ("Quovadx") (collectively "the parties") hereby (1) notify the Court that, on December 26, 2006, the parties executed a memorandum of understanding regarding a proposed settlement of the class claims in this action and that the parties are now negotiating and preparing a formal settlement agreement for submission to the Court; and (2) move the Court for an order staying all proceedings in this action pending the Court's consideration and preliminary approval of the proposed settlement. A proposed Order Granting Joint Motion to Stay Proceedings is attached hereto as Exhibit 1. This joint motion is based on the grounds stated below.

Case 1:04-cv-01006-RPM

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CERTIFICATION PURSUANT TO D.C.COLO.LCivR 7.1.A Pursuant to D.C.COLO.LCivR 7.1.A, the parties' respective counsel have conferred with each other, by telephone and e-mail, and have stipulated to the relief requested here. 1. In mid-November 2006, the parties renewed their negotiations, which had been

terminated several months earlier, regarding a proposed settlement of the class claims in this matter. The parties engaged in arm's-length negotiations for approximately four weeks. On December 14, 2006, the parties reached an agreement in principle regarding the essential terms of a class settlement. On December 26, 2006, the parties executed a memorandum of

understanding regarding the essential terms of the proposed class settlement. Pursuant to the terms of the parties' memorandum of understanding, the parties are now negotiating and preparing a formal settlement agreement for submission to the Court, as well as a motion for preliminary approval of the proposed settlement. The parties intend to file their settlement agreement and related documents with the Court by January 19, 2007. 2. Because the parties wish to focus their efforts on the negotiation and preparation

of their settlement agreement and related documents and desire to avoid incurring unnecessary legal fees and expenses related to expert discovery and the litigation of Plaintiffs' pending discovery motions, the parties request a stay of all proceedings pending the parties' submission of their settlement agreement for the Court's consideration and preliminary approval. 3. This is the first stay of proceedings requested by the parties, and good cause exists

for the requested stay. 4. No party to this action will be adversely affected by the relief requested.

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6.

In compliance with D.COLO.LCivR 6.1.D, undersigned counsel certify that a

copy of this motion has been served on their clients and all counsel of record. For the foregoing reasons, the parties respectfully request that the Court grant the parties' joint motion and enter their proposed Order Granting Joint Motion to Stay Proceedings, attached hereto as Exhibit 1. Dated: January 3, 2007 Respectfully submitted,

s/ Michael J. Hahn Lawrence M. Rolnick Gavin J. Rooney Michael J. Hahn Lowenstein Sandler PC 65 Livingston Avenue Roseland, New Jersey 07068 Attorneys for Lead Plaintiffs and the Class

s/ Michael T. Williams Hugh Q. Gottschalk John M. Vaught Michael T. Williams Wheeler Trigg Kennedy LLP 1801 California Street, Suite 3600 Denver, Colorado 80202 Attorneys for Defendant Quovadx, Inc.

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CERTIFICATE OF SERVICE (CM/ECF) I hereby certify that on January 3, 2007, I electronically filed the foregoing with the Clerk of Court using the CM/ECF system which will send notification of such filing to the following email addresses:
· · · · · · · · · · ·

Frederick J. Baumann [email protected] [email protected] Solomon Benjamin Cera [email protected] [email protected] Hugh Gottschalk [email protected] [email protected] [email protected] Marcela A. Kirberger [email protected] Marc Bradley Kramer [email protected] [email protected] Evan S. Lipstein [email protected] [email protected] Lawrence M. Rolnick [email protected] Gavin J. Rooney [email protected] [email protected] John Mark Vaught [email protected] [email protected] Craig Richard Welling [email protected] [email protected] Michael T. Williams [email protected] [email protected]

I hereby certify that a true and correct copy of the foregoing was served by placing a copy in the U.S. Mail, first-class postage prepaid, on January 3, 2007, addressed to: Linda K. Wackwitz Executive Vice President, Chief Legal Quovadx, Inc. 7600 E. Orchard Rd., Suite 300S Greenwood Village, CO 80111

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s/ Michael T. Williams Michael T. Williams Attorney for Defendant Quovadx, Inc. Wheeler Trigg Kennedy LLP 1801 California Street, Suite 3600 Denver, Colorado 80202 Telephone: (303) 244-1800 Facsimile: (303) 244-1879 Class Counsel will serve a copy of this joint motion directly on their clients: Special Situations Fund III, L.P. Special Situations Cayman Fund, L.P. Special Situations Technology Fund New, L.P. Special Situations Technology Fund II, L.P.

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