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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR

SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
HONORABLE DAVID O. CARTER, JUDGE PRESIDING
CERTIFIED TRANSCRIPT
- - - - - - -
ALLERGAN I NC. , ET AL, , )
)
Pl ai nt i f f ( s) , )
)
vs. ) No. SACV 14- 1214
) VOL. I V
VALEANT PHARMACEUTI CALS )
I NTERNATI ONAL I NC. , ET AL, , )
)
Def endant ( s) . )
_________________________________)



REPORTER' S TRANSCRI PT OF PROCEEDI NGS
PLAI NTI FF' S PRELI MI NARY I NJ UNCTI ON
SANTA ANA, CALI FORNI A
TUESDAY, OCTOBER 28, 2014



MARI A BEESLEY, CSR, RMR
Of f i ci al Feder al Repor t er
Ronal d Reagan Feder al Bui l di ng, Room1- 053
411 West 4t h St r eet
Sant a Ana, Cal i f or ni a 92701
( 714) 564- 9259
amar i a1957@yahoo. com
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
APPEARANCES OF COUNSEL:
FOR THE PLAI NTI FF( S) : LATHAM & WATKI NS
BY: PETER WALD, ESQ.
505 MONTGOMERY STREET
SUI TE 2000
SAN FRANCI SCO, CALI FORNI A 94111
( 415) 391- 0600

LATHAM & WATKI NS
BY: MI CHELE J OHNSON, AAL
650 TOWN CENTER DRI VE
20TH FLOOR
COSTA MESA, CALI FORNI A 92626
( 714) 540- 1235


FOR THE PLAI NTI FF( S) : WACHTELL LI PTON ROSEN & KATZ
BY: WI LLI AM SAVI TT, ESQ.
51 WEST 52ND STREET
NEWYORK, NEWYORK 10019
( 212) 403- 2329


FOR THE DEFENDANT( S) VALEANT PHARMACEUTI CALS:
SULLI VAN & CROMWELL
BY: BRI AN FRAWLEY, ESQ.
and J OHN HARDI MAN, ESQ.
125 BROAD STREET
NEWYORK, NEWYORK 10004
( 212) 558- 4983


SULLI VAN & CROMWELL
BY: EDWARD J OHNSON, ESQ.
1888 CENTURY PARK EAST
21ST FLOOR
LOS ANGELES, CALI FORNI A 90067
( 310) 712- 6640










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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
FOR THE DEFENDANT( S) PERSHI NG SQUARE:
KI RKLAND & ELLI S
BY: MARK HOLSCHER, ESQ.
and MI CHAEL SHI PLEY, ESQ.
AUSTI N NORRI S, ESQ.
333 SOUTH HOPE STREET
LOS ANGELES, CALI FORNI A 90071
( 213) 680- 8190




Al so Pr esent f or Pl ai nt i f f s: Doug I ngr am, Kar ah Par schauer ,
Ar ni e Pi nkst on, Mat t Mol eda, Gavi n Her ber t ,

Al so Pr esent f or Def endant s: Mi chael Pear son, Howar d Chi l l er ,
Rober t Shyon, Wi l l i amAckman, Davi d Schl ai f er

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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
SANTA ANA, CALIFORNIA, TUESDAY, OCTOBER 28, 2014
VOL. IV
( 3: 46)
THE COURT: Counsel , on behal f of t he def ense. And
we' r e back i n sessi on, al l counsel ar e pr esent , t he par t i es ar e
pr esent .
Mr . Hol scher .
MR. HOLSCHER: Yes, Your Honor . I ' mgoi ng t o t r y and
di r ect l y answer your quest i ons. My co- counsel i s goi ng t o
di r ect l y answer a f ew ot her s.
Wi t h r espect t o Exhi bi t 37, Your Honor , your quest i on
was how we wer e r el yi ng on par agr aph one. Par agr aph one, Your
Honor , i s t he SEC' s i nt er pr et at i on t hat we ar e co- bi dder s and
co- of f er or s and shoul d be l i st ed as co- of f er or s. We' r e not
r el yi ng on t hemi n t er ms of our pr i or conduct . I t i s t hei r
det er mi nat i on of our st at us r egar dl ess of t i me. I t ' s not an i ssue
whet her we t ook subst ant i al st eps. I n par agr aph one, t hey' r e
sayi ng you ar e a co- bi dder , be added as an of f er or . We wer e
descr i bed i n t he of f er i ng document s as an of f er or . Look, put i t
on t he t i t l e page. So i t ' s t hei r det er mi nat i on of our st at us, not
t hat we r el i ed on t he l anguage. I t ' s t hei r act ual det er mi nat i on.
Wi t h r espect t o par agr aph f our , Your Honor , you r ai sed
quest i ons as - - t her e i s a quest i on bei ng asked her e. That ' s one
of 34 quest i ons bei ng asked by cor por at e f i nance, Your Honor . At
t he ur gi ng of Al l er gan - - t hey cal l ed i t a bedbug l et t er - - t hey
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
sent a l et t er sayi ng - - demand we answer t hese quest i ons. We
answer ed t he SEC' s quest i ons wi t h t he same document s and
i nf or mat i on we gave you. Per i od. Har d st op. We j ust i f i ed our
conduct . And t hey can spec i t al l t hey want . The SEC moves f ast
when i t want s t o move f ast , Your Honor .
I f you wer e t o f i nd a subst ant i al quest i on as t o a
vi ol at i on of t he secur i t i es l aws, i f t he di vi si on of cor por at e
f i nance sends i t s one of 34 quest i ons, I submi t , Your Honor , t hat
st andar d woul d be met i n near l y ever y host i l e t r ansact i on because
t hi s i s what happens. The ot her si de says, make t hemanswer .
They answer . They go back and f or t h. That doesn' t cr eat e
subst ant i al quest i ons under t he l aw f or an i nj unct i on.
Second, Your Honor , you asked quest i ons about whet her
r epl acement of di r ect or s can be i r r epar abl e har mt o a company.
Ther e ar e t wo cases, Your Honor , t hat ar e on poi nt . Gearhart v.
Smith, 741 F. 2D, 707, 717, 718. Fi f t h Ci r cui t , 1984. Telex v.
Edelman, 1987 case, Nor t her n Di st r i ct of Okl ahoma. Bot h say, Your
Honor , as you ant i ci pat ed, t he r emoval of di r ect or s cannot be
i r r epar abl e har m.
Al so, we ci t ed t he Ranger Oil case, Your Honor . Ther e
t hey f i nd t hat even t he change of cont r ol i s not i r r epar abl e har m.
We haven' t t al ked much about t hat case. I won' t go at l engt h. I
woul d j ust say t o you and your cl er ks, Your Honor , t hat case i s as
cl ose t o on al l f our s as t hi s case as any and r ej ect s t he
ar gument s.
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
Counsel keeps maki ng t he sweepi ng st at ement t hat many
cases have done t hi s i nj unct i on. I t ' s j ust not t r ue, Your Honor .
I t ' s not t r ue. Let me descr i be t hei r best case, t he Khan case.
I t ' s f asci nat i ng, Your Honor . Khan i s agai nst I CN, whi ch i s t he
pr ecur sor t o t he company t hat Val eant bought . Khan. I CN had
st andi ng because i t was I PO. They gave hi mt he shar es, number
one. St andi ng, t hey gave hi mt he shar es.
Number t wo, he was t he under wr i t er . He t ook t hei r
conf i dent i al i nf or mat i on he had a f i duci ar y r esponsi bi l i t y t o keep
and he st ol e i t . He used i t t o do a t akeover . The di st r i ct cour t
j udge si t t i ng i n your chai r f ound t hat Khan per j ur ed hi msel f .
Tr i ed t o sneak i n change of cont r ol by l yi ng and i nsi der t r adi ng.
The di st r i ct cour t si t t i ng i n your chai r - - t hei r st andi ng because
i t ' s t hei r shar es - - says, you know, he shoul dn' t be abl e t o vot e
hi s shar es. You know what t he Second ci r cui t sai d? No, no, no.
As soon as he makes t he cor r ect ed di scl osur e, he i s an i nsi der
t r ader and t hat cor r ect ed di scl osur e i s made, he can vot e.
Your Honor , you r ead t hei r best case. You r ead t he Khan
case. And l i ke you sai d, t hey' r e f act speci f i c. A case wher e
t her e i s st andi ng, a case wher e i t ' s a f i duci ar y, st ol e
i nf or mat i on. And you know what t he Second Ci r cui t says? Goes t o
t he pr ot ect i on of shar ehol der s. Hey, once you di scl ose t o t he
mar ket t hat t hi s guy engaged i n i nsi der t r adi ng, he i s f r ee af t er
he j ust pr e- cl ear s wi t h t he SEC what ever he i s goi ng t o f i l e f or
t he pr oxi es. So t he SEC get s a l ook at i t , t he j udge i s goi ng t o
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
l ook at i t . Look, we' r e goi ng t o make sur e he i s not l yi ng al l
t he t i me, but he can t r y and t ake over t he company.
You r ead Khan, t hei r best case, st andi ng, f i duci ar y.
I t ' s cl ear , Your Honor , under t hese f act s no way t hat t her e i s an
i nj unct i on.
Your Honor , al so asked - -
THE COURT: That ' s i f cor r ect i ve measur es wer e t aken i n
Khan. And her e, i f t her e i s an i ssue, t her e haven' t been
cor r ect i ve measur es accor di ng t o pl ai nt i f f ' s counsel . Now t hey
hope t o hi t a home r un. They hope t o knock out 9. 7 per cent . But
t he cor r ect i ve measur es spoken about or spoken t o i n Khan, i t may
be ar gued don' t exi st her e.
You haven' t cur ed, i f t he cour t f i nds t hat t her e i s
r eason f or i nj unct i ve r el i ef , you haven' t cur ed t hose.
MR. HOLSCHER: 13 di scl osur es of t he i nsi der t r adi ng
cl ai ms, Your Honor .
THE COURT: I ' mnot t oo cer t ai n I ' mi mpr essed wi t h t he
number . I ' mi mpr essed wi t h t he cont ent . And I ' mnot t oo cer t ai n
t hat t hose di scl osur es t hat wer e made go t o t he hear t of what t he
def endant was ar gui ng a f ew moment s ago.
MR. HOLSCHER: I nt er est i ng, Your Honor , what he ar gued a
f ew moment s ago i s not what was i n hi s mot i on. I t was i n hi s
r epl y br i ef . Hi s mot i on sai d you need t o di scl ose t her e was
i nsi der t r adi ng, and t hat ' s a di scl osur e i ssue. Then t he r epl y
br i ef , af t er we put i n Mr . Pyot t ' s t est i mony and t he evi dence t hat
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
ever y shar ehol der knew t he al l egat i ons, t hey i mpr oper l y swi t ch i n
t he r epl y br i ef .
You know when he t al ks about t he pr oposed or der ? I
r equest , Your Honor , you and your cl er ks go back and l ook at t hei r
f i r st pr oposed or der of t he mot i on, and t hen t hey changed i t .
They changed i t f or new di scl osur es not i n t hei r mot i on. I t
vi ol at es t hi s cour t ' s r ul es, t he Ni nt h Ci r cui t ' s r ul es.
Thei r mot i on, t hei r r equest f or di scl osur e was, you
engaged i n i nsi der t r adi ng. Not t hi s f i nanci ng i ssue, not t hese
ot her t wo i ssues. You can' t put i t i n a r epl y br i ef . Ther e was
al so no f act s devel oped i n t hi s case.
So t hei r new di scl osur es, Your Honor , not appr opr i at e.
They wer en' t i n t he mot i on. They' r e not ent i t l ed t o i t .
You al so Your Honor asked t he quest i on - -
THE COURT: J ust a moment . When somebody asks f or
i nj unct i ve r el i ef , t hi s cour t i s not t i ed t o t hei r speci f i c
r equest . I n ot her wor ds, I f ashi oned, event ual l y, t hat i nj unct i ve
r el i ef . Counsel can suggest i t t o t he cour t . I t doesn' t mat t er
whet her i t comes i n an openi ng br i ef or a r epl y, i t ' s ul t i mat el y
t hi s cour t ' s deci si on about what i s f ai r i n t er ms of t hat
i nj unct i ve r el i ef .
MR. HOLSCHER: Agr eed. But i f a par t y says Val eant ,
Per shi ng Squar e you need t o j ust i f y t hese t hi ngs, you need t o
di scl ose t hem, and we l i t i gat e t hat on an expedi t ed schedul e, and
t hey f i l e a mot i on and t hen don' t r ai se i t and say, " J udge, I want
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
t o di scl ose t hese i ssues t hat we di dn' t gi ve a chance t o br i ef , "
t hat ' s not per mi ssi bl e.
Let me go t o your ot her quest i on, Your Honor . Does a
shar ehol der have st andi ng t o st op us f r omvot i ng? No.
Ms. Par schauer can seek money damages. That ' s t he Brody case and
t hat ' s t he Supr eme Cour t case i n Rondeau. Cl ear as can be. Money
damages i s her r el i ef . The SEC had st andi ng f or an i nj unct i on.
You asked t he quest i on - -
THE COURT: And Al l er gan i t sel f , t he cor por at e ent i t y?
MR. HOLSCHER: No st andi ng, Your Honor .
THE COURT: Why?
MR. HOLSCHER: They' r e not t he i ssuer .
THE COURT: Why? Ther e i s no l aw i n t hi s ar ea t hat I
coul d f i nd.
MR. HOLSCHER: Brody i s t he l aw whi ch i s, 1483 i s meant
t o be cont empor aneous t r ades. I t doesn' t say cont empor aneous
t r ades unl ess you ar e t he company who i ssued t he st ock 10 year s
bef or e.
THE COURT: Don' t get t oo cl ose t o counsel .
( LAUGHTER)
MR. HOLSCHER: We' r e okay. I t ' s a cl i ent i ssue.
MR. WALD: He t ouched me, Your Honor .
( LAUGHTER)
MR. HOLSCHER: So, Your Honor , Brody doesn' t have a
car ve- out t hat says i t must be cont empor aneous t r adi ng unl ess i t ' s
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
t he i ssuer 10 year s bef or e so t hey can say t hey got some i nt er est .
Agai n, l ook at t he Khan case. They wer e t he i ssuer .
So you asked t he quest i on i f t her e ar e ser i ous quest i ons
on t he mer i t s, coul d you pot ent i al l y i ssue an i nj unct i on f or
ser i ous quest i ons on t he mer i t ? Those cases on pr el i mi nar y
i nj unct i on, Your Honor , don' t r educe t he st andar d. They say i f
i t ' s shar pl y t i pped i n i r r epar abl e har m, t hen ser i ous quest i ons
coul d be enough i f i t ' s shar pl y t i pped.
We' ve wal ked t hr ough t he f act , and I won' t r epeat i t ,
t her e has t o be a vot e. We have t o wi n t he vot e. Ther e have t o
be new di r ect or s; new di r ect or s by t he f i duci ar y dut y. Del awar e
cour t s have t o do somet hi ng wr ong.
Let me ask you t hi s, Your Honor . One t hi ng t hat ' s never
been ment i oned. When you t hi nk about t hi s, t he shar ehol der s, you
want t o have shar ehol der s i n your cour t ?
THE COURT: Sur e.
MR. HOLSCHER: Ther e i s not one shar ehol der her e t oday
ot her t han management sayi ng t hey want t o st op us f r omvot i ng.
You enj oi n t hi s and t hat $19 bi l l i on of shar ehol der val ue, t he
expect at i on we' r e goi ng t o go f or war d, t hat $19 bi l l i on t o
shar ehol der s, you' l l have shar ehol der s.
Her e i s t he poi nt , Your Honor . What i s t he bond? What
i s t he bond? I f you t ake t hi s ext r aor di nar y r el i ef , not an
i ssuer , not a cont empor aneous buyer or sel l er , and you f i nd out
l at er af t er your t r i al ni ne mont hs f r omnow t hat , you know what ?
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SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
Maybe t he SEC was r i ght i n t hat J ul y l et t er . Maybe t hose seven
wi t nesses wi t h uni mpeached t est i mony or document s wer e r i ght .
Ther e wer en' t subst ant i al st eps. Maybe I made a mi st ake buyi ng
counsel ' s ar gument s i n t he f ace of al l t he evi dence, how much ar e
t hey gonna pay?
THE COURT: Let me ask you somet hi ng. I f t hi s cour t
enj oi ned t he 9. 7 - - not i ce I keep har pi ng on 9. 7, not 10 as t he
document st at es - - bond may be appr opr i at e and you woul d have a
good ar gument . I t hi nk Al l er gan mi ght shudder . But i f i t ' s
di scl osur e, i f i t ' s cor r ect i ve act i on t hat ' s needed and
not i f i cat i on t o t he shar ehol der s, t hen I ' mnot cer t ai n what t he
bondi ng pr ovi si ons woul d be. I n f act , I t hi nk i t woul d be al most
ni l .
MR. HOLSCHER: Fai r poi nt , Your Honor . My counsel i s
goi ng t o addr ess t hi s co- bi dder quest i on whi ch goes t o t he hear t
of your concer n wi t h a ver y compel l i ng answer . And I t hi nk we' r e
goi ng t o cover t hat and you ar e goi ng t o be pl eased, I hope. But
I can t el l Your Honor t hat i n t hi s case, wi t h t hese di scl osur es
and our conduct , i t ' s cl ear l y appr opr i at e what we di d.
THE COURT: Okay. Thank you ver y much.
MR. FRAWLEY: Good af t er noon, Your Honor . Agai n Br i an
Fr awl ey, f or t he r ecor d, f or Val eant .
I ' mgoi ng t o st ar t wher e Mr . Hol scher l ef t of f wi t h t he
quest i on about - -
THE COURT: Ver y succi nct l y now. You ar e not goi ng t o 03: 58
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SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
r et r ace your openi ng ar gument .
MR. FRAWLEY: I ' mnot . So t he f i r st quest i on was about
t he or i gi n of i t . And Sl i de 37 of Al l er gan' s pr esent at i on
act ual l y pr ovi des t he or i gi n of t he co- bi dder t hi ng. Thi s i s par t
of t he di f f i cul t y of peopl e maki ng ar gument s wi t hout aski ng
quest i ons i n di scover y about i t .
The co- bi dder t hi ng came f r omCanadi an counsel . I t i s a
Canadi an l egal i ssue, not an Amer i can l egal i ssue. Val eant i s a
Canadi an cor por at i on. The r equest t o use t he co- bi dder l abel i n
t he exhi bi t Al l er gan has shown you on page 37 of t hei r
pr esent at i on came f r omCanadi an counsel . That ' s why t hey wer e
cal l ed co- bi dder s.
Ever ybody knew t hey wer e cal l ed co- bi dder s f r omt he ver y
st ar t . Up on t he scr een i s t he ver y f i r st f i l i ng made by Val eant
and Per shi ng Squar e on Apr i l 21, 2014. Thi s i s t he f i l i ng t hat
di scl osed Per shi ng Squar e' s st ake. At t ached t o t hi s f i l i ng,
Exhi bi t 4 t o Mr . Hol scher ' s af f i davi t , i s t he act ual r el at i onshi p
agr eement t hat we have been t al ki ng about t hat descr i bed t he
ent i t i es as co- bi dder s and descr i bed PS Fund 1 as t he co- bi ddi ng
ent i t y. So t he co- bi dder concept has been i n t he publ i c si nce t he
ver y moment t hi s was di scl osed.
You al so asked t he quest i on, I wi l l be even br i ef er on
t hi s one, about t he obj ect i vi t y of subst ant i al st eps. Fr omour
per spect i ve, Your Honor , sect i on 14( e) i s a f r aud st at ut e. You
can' t r ead f r aud out of t he st at ut e by a r ul e. The Supr eme Cour t
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MARIA BEESLEY, OFFICIAL REPORTER, CSR, RMR
SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
r ul ed t hat i n Ernst & Ernst v. Hochfelder. So t her e has t o be
some subj ect i ve el ement t o t he t est . Ot her wi se, we have a st r i ct
l i abi l i t y st at ut e.
You al so asked i f we had any aut hor i t y. On page 28 of
our opposi t i on t o t he ci t at i on t o a Nor t her n Di st r i ct of Okl ahoma
di st r i ct cour t case, Telex Corp, t hat act ual l y hol ds t hat t her e i s
a subj ect i ve el ement t o i t . And as I ment i oned, Your Honor , we
bel i eve t hat t he Exchange Act r el i ef t hat accompani es t he r ul e
says t hat as wel l .
The l ast quest i on, Your Honor , you asked t hat i f t her e
i s a di f f er ent st andar d bet ween an of f er i ng per son and a bi dder ,
and i f I wer e t o assume, whi ch I don' t , t hat of f er i ng per son i s
somebody nar r ower t han bi dder as opposed t o br oader , whi ch i s our
posi t i on, I t hi nk i t ' s f ai r t o say, Your Honor , t hat i f you ar e i n
f act a pur chaser i n t he t ender of f er , t hat you have put your
wal l et on t he l i ne, you have t o be abl e t o pur chase because t hat ' s
t he whol e i dea behi nd al l owi ng t he t ender of f er t o make advanced
pur chases.
So Per shi ng Squar e her e has agr eed, t hey l i ke t o say
i t ' s onl y a backst op, but i t ' s a $59 mi l l i on backst op. Thei r
money i s on t he l i ne her e. They have agr eed t o pur chase t hese
shar es. They' r e an of f er i ng per son under any st andar d.
And unl ess t he cour t has any quest i ons. . .
THE COURT: No. J ust t he same cour t esy. Check wi t h
your co- counsel , make sur e you have cover ed al l of your ar gument s
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and check wi t h your cl i ent s f or j ust a moment .
MR. FRAWLEY: Your Honor , t he def endant s wi l l r est on
t hei r paper s and our ar gument . Thank you.
THE COURT: I want t o t hank al l of you t hen.
I see you ar e r eady t o spr i ng t o your f eet wi t h
sur r epl y.
MR. WALD: One mi nut e, Your Honor .
THE COURT: I f you do, t hat ' s f i ne. But i t ' s co- equal .
So you get one mi nut e, t hey get 20. I ' mj ust ki ddi ng you. One
mor e r ound because I know how har d you have wor ked.
MR. WALD: I have t wo poi nt s and t wo poi nt s onl y. On
t he Khan case, Your Honor , t he f ol l owi ng comes f r omt he Second
Ci r cui t ' s opi ni on. Quot e, " I n t hi s case, however , i t i s cl ear
t hat cor r ect ed di scl osur e woul d not addr ess al l t he secur i t i es l aw
vi ol at i ons t hat Khan was f ound t o have commi t t ed. "
THE COURT: You know what i s amazi ng t o me? I s t he
supposi t i on t hat you t wo have t o r ead t he Khan case t o me.
MR. WALD: Then you know - -
THE COURT: Make your poi nt .
MR. WALD: The poi nt was t hat t he di st r i ct cour t , on t he
basi s of t he i nsi der t r adi ng vi ol at i on, enj oi ned t he whol e t ender
of f er .
The Second Ci r cui t sai d you can' t do t hat . You don' t
need t o enj oi n t he whol e t ender of f er . But one t hi ng you shoul d
consi der doi ng on r emand i s t o enj oi n t he vot i ng of t he unl awf ul l y
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SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
acqui r ed shar es. That ' s what t hat quot e i s.
Your Honor , t he onl y ot her t hi ng I want t o say i s t hat
t he SEC i n SEC v. Ginsburg, t he 11t h ci r cui t says t hat t he l i st of
act i vi t i es t hat can const i t ut e subst ant i al st eps t hat t he SEC has
publ i shed i s not exhaust i ve and not i nt ended t o be exhaust i ve.
I t ' s i l l ust r at i ve. And on page 10 of our sl i de deck we have
l i st ed ei ght t hi ngs whi ch ar e i ncl uded i n t hat l i st whi ch occur r ed
i n t hi s case. Thank you.
THE COURT: Counsel , same oppor t uni t y, sur r ebut t al . You
ar e mor e t han wel come t o.
MR. HOLSCHER: We' r e f i ne, Your Honor .
THE COURT: You' r e sur e?
MR. HOLSCHER: Yes, Your Honor . Thank you ver y much.
MR. WALD: Thank you, Your Honor .
THE COURT: I t ' s a pl easur e. Now, I don' t know when
you' l l hear f r omme, but i t wi l l be i n a r el at i vel y r easonabl e
per i od of t i me. I f I need addi t i onal br i ef i ng, I ' l l send t hat out
t o you, and i nst r uct i ons wi l l pr obabl y be no mor e t han f i ve pages.
I don' t t hi nk so. The number of ar eas I ' mst i l l st r uggl i ng wi t h,
one of t hose i s st andi ng. That ' s why I r epeat edl y asked you t o
addr ess t hat par t i cul ar ar ea. Ther e i s not a l ot of l aw t hat
suppor t s ei t her posi t i on, f r ankl y.
So I want t o t hank you. I t hi nk your br i ef i ng was
excel l ent . I want t o say t hat t o you publ i cl y, and I t hi nk your
ar gument s wer e ext r aor di nar y and t he cour t appr eci at es your
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SACV 14- 1214- DOC - 10/ 28/ 2014 - VOL. I V
ef f or t s.
I ' mgoi ng t o si t her e and keep st udyi ng and I want al l
of you t o l eave.
(Whereupon the proceedings were adjourned at 4:03.)

-oOo-

CERTIFICATE

I hereby certify that pursuant to Section 753, Title 28,
United States Code, the foregoing is a true and correct transcript
of the stenographically reported proceedings held in the
above-entitled matter.

Date: OCTOBER 29, 2014

/S/
______________________________
MARIA BEESLEY, RPR, RMR
OFFICIAL COURT REPORTER


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Maria
Beesley
Digitally signed by Maria Beesley
DN: cn=Maria Beesley, o, ou,
email=amaria1957@yahoo.com,
c=US
Date: 2014.10.29 14:35:23 -07'00'