In Re Mips Technologies, Inc. Derivative Lit.

ORDER GRANTING NOMINAL DEFENDANT’S MOTION TO DISMISS

Lead plaintiff Joseph Careo (“Careo”) brings the present action as a derivative suit on behalf of MIPS Technologies, Inc. (“MIPS”) against certain current and for mer directors and officers of MIPS. Nominal defendant MIPS moves to dismiss the first amended complaint (“FAC”) for failure to make demand against the company or to plead with particularity that demand should be excused. Careo opposes the motion. The court has read the moving and responding papers and considered the arguments of counsel presented at a hearing on January 11, 2008. For the reasons set forth below, the court GRANTS MIPS’s motion to dismiss. Careo has 20 days to file an amended complaint.

I. FACTS

Careo asserts violations of federal securities and state laws against certain current and former directors and officers of MIPS arising from stock option backdating. FAC ¶¶ 1, 2. Specifically, Careo alleges that officers and directors of MIPS manipulated the grant dates and associated documentation of stock options used to compensate MIPS employees and directors. Id. ¶¶ 5, 6. Careo alleges that the various illegal activities occurred between 1998 and 2006,…