INITIAL PUBLIC OFFERING SECURITIES LITIGATION
FREQUENTLY ASKED QUESTIONS (REVISED 2/23/2010)
This page provides short answers to class members' most frequently asked questions about the Initial Public Offering Securities Litigation.
Please Note that the Court has approved the Settlements described in the Notice of Pendency and Proposed Global Settlement of 309 Class Actions ("Notice"). Judgments have been entered in all 309 Actions dismissing the Actions based on the Settlement. Unless any of the Settlements are reversed on appeal, distributions of the Settlements’ cash proceeds to Class Members who submitted acceptable Proofs of Claim will be made after (i) all the Judgments become “Final” (that is, when the Judgments are not subject to any appeals); and (ii) all the Proofs of Claim in an Action are processed. This website will be updated once these conditions are fulfilled.
The answers provided here are summary in form and are necessarily incomplete. This is not intended to be a complete explanation of your rights. For full and complete information, you should completely read the Notice of Pendency and Proposed Global Settlement of 309 Class Actions ("Notice").
- Am I being sued?
- Why did I get the Notice and Claim Form?
- Why did I receive several Frontispieces?
- What securities are included in the Settlement?
- What should I do if I received several Frontispieces, but I invested in other or additional Subject Securities that are not reflected in the Frontispieces I received?
- What was this lawsuit about?
- How do I know if I could have participated in the Settlement?
- What does the Settlement provide?
- Where can I find more information about the Settlement?
- What did I have to do to participate in the Settlement?
- How do I get a Proof of Claim form?
- Can I file a Claim on the Internet?
- What do I need to submit with my Claim Form?
- Where do I get the documents that I need to evidence my transactions?
- How will I know when my Claim Form has been received by the Claims Administrator?
- When will I receive my payment?
- How much will my payment be?
- Do I have a lawyer in this case?
- How will the lawyers be paid?
- What if I want to bring my own lawsuit against the Defendants?
- How can I exclude myself from the Settlement?
- What happens if I exclude myself?
- Can I object to the Settlement?
- What were the important dates for this litigation?
- When and where did the Court hold a hearing to decide whether or not to approve the Settlement?
- May I speak at the hearing?
- What happens if I do nothing?
- How do I get more information?
A: No, you are not being sued.
2. Why did I get the Notice and Claim Form?
A: You or someone in your family may have purchased or otherwise acquired the securities (the "Subject Securities") of one or more of the 309 entities listed on Schedule 1 of the Notice during the Settlement Class Periods, which are also listed on Schedule 1. You may therefore be a Settlement Class Member.
An agreement to resolve all 309 cases as against all Defendants is memorialized in a Stipulation and Agreement of Settlement, which provides for a $586 million cash recovery. The Court directed that the Notice be sent to all members of the Settlement Classes because Settlement Class Members have a right to know about the proposed Settlement and about all of the Settlement Class Members' options before the Court decides whether or not to approve the Settlement. The Notice describes the litigation, the Settlement and the legal rights of all Settlement Class Members. It also sets forth certain deadlines that govern such legal rights.
3. Why did I receive several Frontispieces?
A: Separate yellow pages, called "Frontispieces," were prepared with information specific to each of the 309 Issuers of the Subject Securities. To the extent that any available records indicated that you traded in a particular Issuer’s Subject Securities, a Frontispiece for that Issuer was added into the envelope with your Notice. If you received more than one yellow Frontispiece with your Notice, you probably purchased more than one of the Subject Securities during the relevant Class Periods. However, you should review all the Subject Securities listed in Schedule 1 to the Notice, as you may have purchased other Subject Securities as well during the respective Class Periods.
4. What securities are included in the Settlement?
A: Only the securities listed on Schedule 1 of the Notice are included in the Settlement. The Settlement does not cover Bonds or Preferred Stock.
A: On your Claim Form, you should have included any and all of the 309 Subject Securities that you purchased or otherwise acquired during the respective Class Periods. The Subject Securities and the Class Periods were listed in Schedule 1 to the Notice. You were not limited to the securities reflected in any of the Frontispieces that you may have received in the mail.
6. What was this lawsuit about?
A: The Actions in the IPO Litigation alleged that the Underwriters violated federal securities laws by manipulating the prices of the Subject Securities. Among other things, Plaintiffs alleged that, in order to obtain allocations of Subject Securities in initial public offerings, certain investors were required or induced to commit to purchase additional Subject Securities after the IPO in a process alleged to be "laddering." Plaintiffs also alleged that, in order to obtain allocations in initial public offerings, certain investors were required to pay excessive, undisclosed commissions to the Underwriters of the Subject Securities. In addition, Plaintiffs alleged that stock analysts, who were employed by the Underwriters and had undisclosed conflicts of interest, made "buy recommendations" for the Subject Securities. Plaintiffs alleged that these undisclosed and manipulative activities caused investors to pay artificially inflated prices for the Subject Securities during the Settlement Class Periods and to sustain damages. The Defendants denied any wrongdoing.
7. How do I know if I could have participated in the Settlement?
A: You are a Class Member and could have participated in the Settlement if you purchased or otherwise acquired the Subject Securities listed on Schedule 1 of the Notice during the relevant Class Periods, which began on the specific dates indicated on Schedule 1 and ended on December 6, 2000, and had a "Recognized Claim" (as defined in the Notice) from such investment - unless you were excluded from the class by definition (as explained in the Notice) or you excluded yourself by choice. The Class definitions generally excluded the Defendants in the Actions and persons and entities closely related to the Defendants. The Class Definitions also generally excluded each investor (other than a natural person) that received an allocation of Subject Securities from the "institutional pot" in the IPO of any of the Subject Securities.
If you still are not sure whether you were a member of one or more of the Settlement Classes or were excluded, you can call the toll-free help line at 1-800-916-6946, or send your question to the Claims Administrator at Questions@IPOSecuritieslitigation.com for more information.
8. What does the Settlement provide?
A: The Settlement provided a $586 Million cash Settlement Fund in exchange for the Settlement and dismissal of all the Actions.
Plaintiffs' Executive Committee, in consultation with their experts, proposed class-wide monetary designations among each of the Settlement Classes. For the designations assigned to each Action, see the Frontispiece for your Action(s) or see Schedule 2 attached to the Notice, particularly the column entitled "PSLRA Stmt. Of Gross Recovery."
In general, an individual Action's Designation Amount, less a proportionate amount of any approved attorneys' fees and expenses (including estimated notice and administration expenses) and PSLRA Award Requests will be shared among all Settlement Class Members who sent in valid Proof of Claim forms for each Action.
9. Where can I find more information about the Settlement?
A: The full terms and provisions of the Settlement are contained in the Stipulation and Agreement of Settlement. Also, additional information is available in the Notice. You can access other Court Documents pertaining to these Actions on this website. Court documents filed in this Action are also available for inspection or copying at The Clerk of the Court, 500 Pearl St., New York, NY, during the Court's business hours.
10. What did I have to do to participate in the Settlement?
A: To qualify for a payment, you should have submitted a timely Proof of Claim form. A Proof of Claim form was mailed with the Notice to Class Members.
The deadline for submitting Proofs of Claim was December 10, 2009. Any Proofs of Claim (except with respect to the Net2Phone, Inc. Action) submitted after December 10, 2009 are subject to rejection for un-timeliness. If you wish to submit a Proof of Claim after December 10, 2009 it should be accompanied by a statement showing good cause for the late submission. It is in the discretion of the Court whether or not to accept any late claims.
NOTE: If you purchased Net2Phone, Inc. common stock on July 29, 1999, then the time for you to object, request exclusion or submit a claim was extended to January 11, 2010.
You can submit a Proof of Claim electronically on-line, or mail the form to the Claims Administrator, The Garden City Group, Inc., by writing to Initial Public Offering Securities Litigation, c/o The Garden City Group, Inc., P.O. Box 9352, Dublin, OH 43017-4252. To submit a claim online, click here. Read the
instructions carefully. Again, any Proofs of Claim submitted after the submission deadlines noted above are subject to rejection for un-timeliness.
Regardless of how you submit your Claim Form, you must fill out the Proof of Claim form completely and include all the required documents. It is your responsibility to advise the Claim Administrator if you change your address.
11. How do I get a Proof of Claim form?
A: Although the deadline for submitting Proofs of Claim has passed, you may download a Proof of Claim form and instructions and mail the Claim Form to the Claims Administrator at the address above. Or, you may file a claim on-line by clicking here. If you would like a hardcopy Claim Form mailed to you, you can call the toll-free help line at 1-800-916-6946, or send your request to the Claims Administrator at Questions@IPOSecuritieslitigation.com. Please note that it is in the discretion of the Court whether or not to accept any late claims. If you decide to submit a Proof of Claim at this time you should include a statement showing good cause for the late submission.
12. Can I file a claim on the Internet?
A: You may file a claim on-line by clicking here. Once you register, follow the prompts to submit your claim. Be sure to fill out all required information and submit all required documentation. Please note that it is in the discretion of the Court whether or not to accept any late claims. If you decide to submit a Proof of Claim at this time you should include a statement showing good cause for the late submission.
13. What do I need to submit with my Claim Form?
A: Regardless of whether you mail your Claim Form or file it on-line on the Internet, you must list ALL of your transactions in the Subject Securities listed on Schedule 1 during the applicable Class Periods listed on Schedule 1. You must also submit documentary evidence of each transaction that you list on your Claim Form. As noted in the Instructions for the Claim Form, acceptable forms of supporting documentation include:
- Broker confirmation slips that list the security name, name and address of the purchaser or seller, type of transaction (purchase or sale), the date of the transaction, the number of shares of the relevant security, the price per share and the total dollar value of the transaction, AND/OR
- Periodic (monthly or quarterly) account statements that detail all activity in an account within a specific period, and which account statement shows the security name, name and address of the account owner, type(s) of transaction(s) (purchase or sale), the date of the transaction, the number of shares of the relevant security, the price per share and the total dollar value of the transaction.
Please note that it is in the discretion of the Court whether or not to accept any late claims. If you decide to submit a Proof of Claim at this time you should include a statement showing good cause for the late submission.
14. Where do I get the documents that I need to evidence my transactions?
A: You need to substantiate all your transactions in the Subject Securities during the relevant Class Periods. If you do not have the supporting documentation you should consult with your broker or financial advisor, who may be able to obtain the documents for you.
15. How will I know when my Claim Form has been received by the Claims Administrator?
A: Approximately 30 days after receipt of your Claim Form, the Claims Administrator will mail you a postcard acknowledging receipt. If you file your Claim Form on-line, after your form is submitted, a confirmation screen will acknowledge your submission; in addition, you will receive email confirmation of your filing at the email address you provide when you register to file your claim on-line.
Please note that as we process claims, we will also notify you in writing if your claim is deficient or ineligible. Steps needed to cure your claim will be set forth in the correspondence sent to you.
16. When will I receive my payment?
A: Please Note that the Court has approved the Settlements. Judgments have been entered in all 309 Actions dismissing the Actions based on the Settlement but those Judgments are not yet final and non-appealable. Unless any of the Settlements are reversed on appeal, distributions of the Settlements’ cash proceeds to Class Members who submitted acceptable Proofs of Claim will be made after (i) all the Judgments become “Final” (that is, when the Judgments are not subject any appeals); and (ii) all the Proofs of Claim in an Action are processed. This website will be updated once these conditions are fulfilled.
17. How much will my payment be?
A: Calculations of individual payments cannot be made at this time. All such allocations will be determined once all Settlements are deemed final and after all claims have been filed and processed.
18. Do I have a lawyer in this case?
A: The Court has appointed a Plaintiffs’ Executive Committee consisting of six law firms to represent all Settlement Class Members. The members of Plaintiffs’ Executive Committee are identified below.
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Stanley D. Bernstein, Esq. Rebecca M. Katz, Esq. BERNSTEIN LIEBHARD LLP 10 East 40th Street New York, New York 10016 (212) 779-1414 |
Robert A. Wallner, Esq. Ariana J. Tadler, Esq. MILBERG LLP One Penn Plaza New York, New York 10119 (212) 594-5300 |
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David Kessler, Esq. BARROWAY TOPAZ KESSLER MELTZER & CHECK, LLP 280 King of Prussia Road Radnor, Pennsylvania 19087 (610) 667-7706 |
Fred Taylor Isquith, Esq. WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP 270 Madison Avenue New York, New York 10016 (212) 545-4600 |
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Jules Brody, Esq. STULL STULL & BRODY 6 East 45th Street New York, New York 10017 (212) 687-7230 |
Howard B. Sirota, Esq. 125 Beach 128th Street Belle Harbor, New York 11694 (212) 425-9055 |
19. How will the lawyers be paid?
A: In the more than eight years that this litigation has been pending, Plaintiffs' Counsel have not been paid any fees and have advanced or incurred millions of dollars in expenses without reimbursement. The Court awarded Plaintiffs' Counsel attorneys' fees in the amount of one-third (331/3%) of the total designation amount in each Action (see Schedule 2 column entitled "PSLRA Stmt. Of Gross Recovery"), plus interest earned at the same net rate as the Gross Settlement Fund. The Court also awarded Plaintiffs’ Counsel reimbursement of their expenses.
20. What if I want to bring my own lawsuit against the Defendants?
A: Unless you timely excluded yourself, or if the Settlement is reversed or terminated, if you are a member of the Class you cannot now bring your own lawsuit or arbitrate with respect to the Settled Claims.
21. How can I exclude myself from the Settlement?
A: The deadline for requesting exclusion has passed.
22. What happens if I exclude myself?
A: The deadline for requesting exclusion has passed.
23. Can I object to the Settlement?
A: The deadline for filing objections has passed.
24. What were the important dates for this litigation?
A: The deadlines were as follows:
- Exclusion Request Deadline: August 10, 2009
- Objection Deadline: August 10, 2009
- Settlement Fairness Hearing: September 10, 2009
- Claim Filing Deadline: December 10, 2009
25. When and where did the Court hold a hearing to decide whether or not to approve the Settlement?
A: The Court held a Settlement Fairness Hearing on September 10, 2009, at the United States District Court for the Southern District of New York, 500 Pearl Street, New York, New York 10007.
26. May I speak at the hearing?
A: The Hearing has already occurred.
27. What happens if I do nothing?
A: If you do not do anything, you will not receive any money from the Settlement and you will be precluded from starting a lawsuit or arbitration, continuing with a lawsuit or arbitration, or being part of any other lawsuit or arbitration against the Defendants and the other Protected Persons concerning the Settled Claims in this Action, ever again.
28. How do I get more information?
A: You can:
- Access the full terms of the Stipulation and Agreement of Settlement and other Court documents pertaining to the Actions through this website;
- Call the toll-free helpline at 1-800-916-6946;
- E-mail your questions to: Questions@IPOSecuritieslitigation.com
- Write to: Initial Public Offering Securities Litigation, c/o The Garden City Group, Inc., P.O. Box 9352, Dublin, OH 43017-4252.
NOTE: This website is being provided as a service to potential class members. The information provided is in summary form and is not intended as a complete explanation of your rights, nor does it serve to provide legal or professional advice. To become more informed about the Litigation, you are directed to review carefully the legal documents linked to the tabs on the left side of this page.