In Re Bidz. Com, Inc. Derivative Litigation

Proceedings: (In Chambers) Order Granting Bidz.com’s Motion to Dismiss

Pending before the Court are Nominal Defendant Bidz.com, Ine.’s Motion to Dismiss, and a Motion to Dismiss filed by Individual Defendants. The Court finds the matter appropriate for decision without oral argument. See Fed.R.Civ.P. 78; L.R. 7-15. After considering the moving and opposing papers, the Court GRANTS Defendant Bidz.com, Inc’s Motion to Dismiss, rendering the Individual Defendant’s Motion to Dismiss MOOT.

I. Background

Nominal Defendant Bidz.com, Inc. (“Bidz”) is an online jewelry retailer that sells its products through online auctions. See First Amended Consolidated Shareholder Derivative Complaint (“FAC”) ¶ 2. The company is managed by a five-member Board of Directors (“the Board”), comprised of the following individuals: founder and Chief Executive Officer David Zinberg (“Zinberg”); Chief Financial Officer, Treasurer, and Secretary Lawrence Y. Kong (“Kong”); Chairman of the Board Peter G. Hanelt (“Hanelt”); Former Chief Financial Officer Gary Y. Itkin (“Itkin”); and Man Jit Singh (“Singh”) (collectively, the “Board of Directors”). Id. ¶¶ 23-30. Also relevant are non-board members Chief…