SMITH v. SPERLING

No. CV 11-722-PHX-JAT.

Darlene Smith, derivatively on behalf of Apollo Group, Inc., Plaintiff, v. John G. Sperling, Peter V. Sperling, Charles B. Edelstein, Gregory W. Cappelli, Terri C. Bishop, Dino J. Deconcini, Samuel A. Dipiazza, Jr., Stephen J. Giusto, Roy A. Herberger, Jr., Ann Kirschner, K. Sue Redman, James R. Reis, Manuel F. Rivelo, George Zimmer, Joseph D'Amico, Gregory J. Iverson, Brian L. Swartz, Brian Mueller, P. Robert Moya, Robert W. Wrubel, William J. Pepicello, Defendants, v. Apollo Group, Inc., an Arizona corporation, Nominal Defendant.

United States District Court, D. Arizona.

July 25, 2012.


Attorney(s) appearing for the Case

Darlene Smith, derivatively on behalf of Apollo Group Incorporated, Plaintiff, represented by Francis A Bottini, Jr , Chapin Fitzgerald Sullivan & Bottini LLP & Hart Lawrence Robinovitch , Zimmerman Reed PLLP.

John G Sperling, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Peter V Sperling, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Charles B Edelstein, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Gregory W Cappelli, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Terri C Bishop, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Dino J Deconcini, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Samuel A DiPiazza, Jr., Defendant, represented by Joel Philip Hoxie , Snell & Wilmer LLP — Phoenix, AZ & Joseph G Adams , Snell & Wilmer LLP.

Stephen J Giusto, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Roy A Herberger, Jr., Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Ann Kirschner, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

K Sue Redman, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

James R Reis, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Manuel F Rivelo, Defendant, represented by Joel Philip Hoxie , Snell & Wilmer LLP — Phoenix, AZ & Joseph G Adams , Snell & Wilmer LLP.

George Zimmer, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Joseph L D'Amico, also named as: Joseph D'Amico, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Gregory J Iverson, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Brian L Swartz, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Brian Mueller, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

P Robert Moya, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Robert W Wrubel, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

William J Pepicello, Defendant, represented by Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, David B Rosenbaum , Osborn Maledon PA, Kathleen Erin Brody OMeara , Osborn Maledon PA & Maureen Beyers , Osborn Maledon PA.

Apollo Group Incorporated, nominal defendant/ an Arizona corporation, Defendant, represented by Todd Robert Kerr , Perkins Coie LLP, Daniel John Tyukody , Goodwin Procter LLP — Los Angeles, CA, Jason Lee Krajcer , Goodwin Procter LLP — Los Angeles, CA, Joseph E Floren , Morgan Lewis & Bockius LLP, Joseph E Mais , Perkins Coie LLP & Teodora Emilova Manolova , Goodwin Procter LLP.


ORDER

JAMES A. TEILBORG, District Judge.

Pending before the Court are (1) the Individual Defendants' Motion to Dismiss (Doc. 71), and (2) Nominal Defendant Apollo Group, Inc.'s Motion to Dismiss Plaintiffs Derivative Complaint (Doc. 74). The Court now rules on the Motions.

I. BACKGROUND

Plaintiff brings this shareholder derivative lawsuit against various officers and directors of Apollo Group, Inc. ("Apollo"), alleging violations of federal...

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