Case 2:11-cv-03531-GAF-JC Document 156

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Stephen D. Hibbard, Esq. (SBN 177865) SHEARMAN & STERLING LLP Four Embarcadero Center, Suite 3800 San Francisco, CA 94111 Telephone: (415) 616-1100 Facsimile: (415) 616-1199 Email: shibbard@shearman.com Counsel for ZSTN and the ZSTN Individual Defendants UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA ROBERT SCOTT, et al., 11-cv-03531-GAF-JC Plaintiffs, v. ZST DIGITAL NETWORKS, INC., et al., Defendants. STIPULATION AND [PROPOSED] ORDER DISMISSING CLAIMS AGAINST CERTAIN DEFENDANTS AND ADJOURNING THE TIME TO FILE RESPONSIVE PLEADINGS

WHEREAS, on March 9, 2012, Plaintiff J. Malcolm Gray (Plaintiff) filed the Amended Class Action Complaint (the Complaint); WHEREAS, on April 27, 2012, Defendant ZST Digital Networks, Inc. (ZSTN) and WestPark Capital, Inc. (WestPark) filed motions to dismiss the claims brought under Sections 11 and 15 of the Securities Act of 1933 (the Securities Act Claims); WHEREAS, on June 1, 2012, Defendant Richard Rappaport filed a motion to

STIP. ADJOURNING TIME TO FILE RESPONSIVE PLEADINGS

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dismiss the Securities Act Claims; WHEREAS, on August 7, 2012, the Court dismissed the Securities Act Claims with prejudice; WHEREAS, on August 9, 2012, Plaintiff filed proof of service of the summons and Complaint on Defendants Zhong Bo, Zhong Lin, John Chen, Zeng Yun Su, Xue Na, Tian Li Zhi, Liu Hui Fang, and Sheng Yong (the ZSTN Individual Defendants); WHEREAS, the parties expect to engage in active settlement discussions in the coming weeks; IT IS HEREBY STIPULATED AND AGREED, by and between the undersigned counsel for the parties, that: 1. All claims in the Complaint brought against Xue Na, Tian Li Zhi, Liu

Hui Fang, Sheng Yong, and Yang Ai Mei are voluntarily dismissed in their entirety pursuant to Federal Rule of Civil Procedure 21;

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2.

The time for ZSTN, Zhong Bo, Zhong Lin, John Chen, Zeng Yun Su,

WestPark, and Richard Rappaport to answer the Complaint is adjourned until October 22, 2012.

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Dated: August 20, 2012 GLANCY BINKOW & GOLDBERG LLP /s/ Lionel Z. Glancy Lionel Z. Glancy, Esq. (SBN 134180) Michael Goldberg, Esq. (SBN 188669) 1801 Avenue of the Stars, Suite 311 Los Angeles, CA 90067 Telephone: (310) 201-9150 Facsimile: (310) 201-9160 Liaison Counsel for Lead Plaintiff Marvin L. Frank, Esq. Benjamin D. Bianco, Esq. MURRAY FRANK LLP 275 Madison Avenue New York, NY 10016 Telephone: (212) 682-1818 Facsimile: (212) 682-1892 Counsel for Lead Plaintiff

SHEARMAN & STERLING LLP /s/ Stephen D. Hibbard Stephen D. Hibbard, Esq. (SBN 177865) Four Embarcadero Center, Suite 3800 San Francisco, CA 94111 Telephone: (415) 616-1100 Facsimile: (415) 616-1199 Of Counsel: Christopher R. Fenton, Esq. Edward G. Timlin, Esq. Andrew J. Rodgers, Esq. SHEARMAN & STERLING LLP 599 Lexington Avenue
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New York, NY 10022 Telephone: (212) 848-4000 Facsimile: (212) 848-7179 Counsel for ZSTN and the ZSTN Individual Defendants

COZEN OCONNOR /s/ Megan R. Peitzke______________ Megan R. Peitzke, Esq. (SBN 230375) 601 South Figueroa Street, Suite 3700 Los Angeles, CA 90017 Telephone: (213) 892-7900 Facsimile: (213) 892-7999 Of Counsel: Robert W. Hayes COZEN OCONNOR 1900 Market Street Philadelphia, PA 19103 Telephone: (215) 665-2000 Facsimile: (215) 665-2013 Counsel for the WestPark Capital Inc. and Richard Rappaport

DATE:

, 2012 HON. GARY ALLEN FEESS U.S. DISTRICT JUDGE

CASE NO. 11-CV-03531-GAF-JC