SOURCE: Federman & Sherwood

August 07, 2008 18:02 ET

Federman & Sherwood Announces to All Current Owners of Magma Design Automation, Inc. (NASDAQ: LAVA) Common Stock

OKLAHOMA CITY, OK--(Marketwire - August 7, 2008) - YOU ARE HEREBY NOTIFIED that the Parties to a shareholder derivative action styled Susan Willis v. Rajeev Madhavan, et al.; Civil Action No. 1:05-CV-045834 (Superior Court of CA, County of Santa Clara) (the "Derivative Action") have entered into a Stipulation and Agreement of Settlement (the "Stipulation") to resolve the allegations asserted in the Derivative Action (the "Settlement").

PLEASE BE FURTHER ADVISED that pursuant to an Order of the Superior Court of CA, County of Santa Clara (the "Court"), the Settlement was preliminarily approved on August 4, 2008. A hearing will be held in the Derivative Action on October 3, 2008, at 9:00 a.m. PDT (the "Settlement Hearing"), before the Honorable Jack Komar for the purpose of determining: (a) whether the Settlement of the Derivative Action by way of the adoption of certain corporate governance provisions (as set forth in more detail in the Stipulation) should be approved by the Court as fair, reasonable and adequate to Magma (NASDAQ: LAVA) and its common stockholders; (b) whether the application of Plaintiff's Counsel for attorneys' fees and reimbursement of expenses should be approved; and (c) whether the application of Plaintiff for an incentive fee award should be approved.

If you are a current shareholder of Magma, your rights to pursue certain derivative claims on behalf of Magma may be affected by this Settlement. Any person who is a current Magma shareholder, i.e., persons who have continuously owned Magma common stock since on or after October 23, 2002 and who continue to hold their Magma common stock as of the date of the Settlement Hearing, may appear in person or by attorney at the hearing and show cause, if any, why the Stipulation should not be finally approved; why a judgment dismissing the Derivative Action with prejudice as against the Defendants should not be entered and the claims of Magma should not be barred permanently; why the application of Plaintiff's counsel for an award of attorneys' fees and reimbursement of expenses should not be approved; and/or why the application of Plaintiff for an incentive fee award should not be approved. Before the Court will consider an objection, however, such objection must be in writing and must include the objector's name, address, telephone number and signature; and must be accompanied by formal proof of continuous ownership of Magma stock from October 23, 2002 through the date of objection. Any shareholder that files a written objection and appears at the Settlement Hearing, either in person or through counsel, must also be prepared to show continuous ownership through the date of the Settlement Hearing. Any written objection must be filed with the Court and served upon the following attorneys at least twenty (20) days before the Settlement Hearing date.

If you want additional information regarding the Derivative Action or the Settlement, please go to www.federmanlaw.com to access the Stipulation and Agreement of Settlement or contact Plaintiff's counsel.

PLEASE DO NOT TELEPHONE THE COURT OR MAGMA REGARDING THIS NOTICE

Contact Information

  • Contact:
    William B. Federman
    FEDERMAN & SHERWOOD
    10205 N. Pennsylvania
    Oklahoma City, OK 73120
    (405) 235-1560
    Fax: 239-2112
    WFederman@aol.com