in re: cisco systems, inc. securities litigation 01-cv...

2

,,)

4

5

6

7

8

9

io

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

14 ALL ACTIONS.

15

16

17

18

19

20

21

22

?'-,)

24

25

26

27

28

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 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-

(PROPOSED) ORDER PRELIMINARILY APPROVINGSETTLEMENT AND PROVIDING FOR NOTICE - C-01-20418-JW(PVT) - I -

December 5 9 a


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,

(PROPOSED) ORDER PRELIMINARILY APPROVINGSElTLEMENT AND PROVIDING FOR NOTICE - C-01-20418-JW(PVT) - 2-

Sept., 31

Sept., 28


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


Oct., 31


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


Oct., 31

Oct., 31


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

(PROPOSED) ORDER PRELIMINARILY APPROVINGSETTLEMENT AND PROVIDING FOR NOTICE - C-01-204 i 8-JW(PVT) - 5 -


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.

5

6 DATED:

7

8

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)

20

21

22

23

24

25

26

27

28


September 11, 2006


19 Additional Counsel for PlaintifTs

20 S:\Scttlcmcl1l\Císco,sct\V2 EA 8-28 00033575.doc

21

22

23

24

25

26

27

28

(PROPOSED) ORDER PRELIMINARIL Y APPROVINGSElTLEMENT AND PROVIDING FOR NOTICE - C-01-20418-JW(PVT) -7 -


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/.

9

10

II

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

12

13

14

15

16

17

18

19

20

21

22

?'-,)

24

25

26

27

28

TLEMENT AND PROVIDING FOR NOTICE - C-01-20418-JW(PVT) - I -


EXHIBIT A-I

Case 5:01-cv-20418-JW Document 604 Filed 09/12/2006 Page 1 of 20


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

18

19 UNITED STATES DISTRICT COURT


SAN JOSE DIVISION

20

21

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

26

27

28


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

3

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

5

6

7

8

9

10

II

12

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

2006.13

14

15

16

17

18

19

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

24

25

26

27

"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

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(pVT) - I -


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

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(PVT) - 2-


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

28

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(PVT) ,- J -


I should be approved. The Court may adjourn or continue the Settlement Hearing without f1¡rther

2 notice to the Class.

3 II.4

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.

6

7

8

9

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.

18

19

"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



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.

12

13

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.

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(PVT) - 5 -


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



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

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(pVT) - 7 -


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



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.



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



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



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

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(pVT) - 12-


(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



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



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 -


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



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

NOTICE OF PENDENCY AND PROPOSED SETTLEMENTOF CLASS ACTION - C-01-20418-JW(pVT) - 17-


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

12

13

14

15

16

17

18

19

20

21

22

')'_J

24

7--)

26

27

28



EXHIBIT A-2


1 LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP


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)


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)

18



SAN JOSE DIVISION

20

21

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

23

24 This Document Relates To:

26

27

28


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,

13

14

15

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.

PROOF OF CLAIM AND RELEASE - C-OI-20418-JW(PVT) - 1 -


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 -


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.

11

12

13

14

15

16

17

18

19

20

21

22

?'--'

24

25

26

27

28

PROOF OF CLAIM AND RELEASE - C-01-20418-JW(PVT) ,- -' -


1

2

,-'

4

5

6

7

8PART 1:

UNITED STATES DISTRICT COURT


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)

11

12 Street Address

13

14 City

15

State or Province

16 Zip Code or Postal Code

17

Country

18 Social Security Number or

Taxpayer Identification Number19

20

Individual

Corporation/Other

Area Code21

22 --Area Code

?'--'

24

Telephone Numbcr (work)

'relephone Number (home)

Record Owner's Name (if different from bene11cial owner listed abovc)?--)

26

27

28

PROOF OF CLAIM AND RELEASE - C-01-20418-JW(PVT) - 4-


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-


2

,-'

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


1 V.

2

SUBMISSION TO JURISDICTION OF COURT ANDACKNOWLEDGMENTS

,-'

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

5

6

7

8

9

10

II

12

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

14

15

16

17

18

19

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

20

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

21

22

23

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

28



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.

27

28



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.

11

12

13

14

15

16

17

18

19

20

21

22

?'-~

24

25

26

27

28

PROOF OF CLAIM AND RELEASE - C-OI-20418-JW(PVT) - 8 -


3

4 NAME:

5Check appropriate box:

6 D Individual/Sole ProprietorD Corporation D Partnership7 D IRA D Other

1

2

8

9

10

11

12

13

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

15

16

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:

18

19

PART II

Certi11cation

20 UNDER THE PENALTY OF PERJURY, I (WE) CERTIFY THAT:

21 1.

22 2.

23

24

25

26

27

28

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.



NOTE: If you have been notified by the Internal Revenue Service that you are subject tobackup withholding, you must cross out Item 2 above.

2

3

4

5

6

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

9in

(City)10

11

12

13

14

15

16

17

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

27

28



EXHIBIT A-3




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)


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)

18



SAN JOSE DIVISION

20

21

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

23

24 This Document Relates To:

26

27

28


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

5

6

7

8

.m., before the Honorable James Ware, at the United States Courthouse, 280 South First

9

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

13

14

15

16

17

18

19

20

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,

23

24received by ,2006, in the manner and form explained in the detailed Notice referred to

?--)

26

27

28

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 -


Any objection to the settlement must be received by the following no later than

2

"~

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

,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-


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

"~

4

6 THIS NOTICE. If you have any questions about the settlement, you may contact plaintiffs'

7 counsel at the address listed above.

8

9 DATED:

10

11

,2006

S:\Sculcmcni\Cisco,scl\V2 A3 8-28 00033593.doc

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

SUMMARY NOTICE - C-01-20418-JW(PVT)

BY ORDER OF THE COURTUNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIA

- 3 -


in re: cisco systems, inc. securities litigation 01-cv...

Documents