In Re Extreme Networks, Inc. Shareholder

ORDER GRANTING NOMINAL DEFENDANT’S MOTION TO DISMISS

[Re Docket No. 68]

Lead plaintiff Frank Grucel brings the present action as a derivative suit on behalf of Extreme Networks, Inc. (“Extreme”) against certain current and former directors and officers of Extreme. Nominal defendant Extreme moves to dismiss the second amended complaint (“SAC”) for failure to make demand against the company or to plead with particularity that demand should be excused. Extreme also moves to dismiss on the grounds that lead plaintiff Grucel lacks standing. Plaintiffs oppose the motion. The court has read the moving and responding papers and considered the arguments of counsel presented at a hearing on August 8, 2008. For the reasons set forth below, the court GRANTS Extreme’s motion to dismiss.

I. FACTS

Lead plaintiff Grucel filed his original complaint on May 31, 2007. The SAC was filed on February 25, 2008. Plaintiffs assert violations of federal securities and state laws against certain current and former directors and officers of Extreme arising from stock option backdating. SAC ¶¶ 1, 2. Specifically, plaintiffs allege that officers and directors of Extreme manipulated the grant dates and…