The Actions in the IPO Litigation allege that the Underwriters violated federal securities laws by manipulating the prices of the Subject Securities, and that they and the Issuer Defendants also violated these laws by failing to disclose that conduct to the public. Among other things, Plaintiffs allege 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 allege 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 allege that stock analysts, who were employed by the Underwriters and had undisclosed conflicts of interest, made “buy recommendations” for the Subject Securities. Plaintiffs allege 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 deny any wrongdoing.
From January to December 2001, more than one thousand class action complaints were brought against various companies that held initial public offerings from 1998 through 2000 and certain investment banks that underwrote their IPOs. The complaints alleged violations of sections 11 and 15 of the Securities Act of 1933 and sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The cases were consolidated by issuer and each of those cases was then coordinated before this Court for pre-trial management.
Plaintiffs
subsequently amended the complaints and defendants filed motions to
dismiss. In 2003, the Court sustained the complaints, in pertinent
part, and discovery ensued, with tens of millions of pages produced,
scores of depositions taken and extensive motion practice.
CASE INFORMATION
Court: United States District Court Southern District of New York
With discovery well underway, in 2004, Plaintiffs moved for, and the Court granted class certification in six selected focus cases. The Underwriter Defendants appealed that decision, and, in December 2006, the Second Circuit vacated the Court’s certification order. While the class motion was pending before the Second Circuit, a partial settlement was reached between Plaintiffs and certain of the Issuer Defendants. The Court had preliminarily approved that settlement, permitting notice to be sent to the respective classes in 2005. This partial settlement, however, ultimately was voluntarily terminated by the parties due to the Second Circuit’s 2006 decision vacating the Court’s original class certification decision. To address the concerns identified by the Second Circuit, Plaintiffs amended the six focus case complaints and the master allegations filed in all Actions and in September 2007, filed a renewed motion for class certification, with new proposed classes which excluded institutional allocants.
In June 2008, after the partial settlement with the Issuer Defendants had been voluntarily terminated and while the renewed motion for class certification was pending before the Court, the parties collectively agreed to participate in a mediation to consider a global resolution of all Actions in the coordinated litigation. The parties retained Honorable Nicholas Politan and Honorable Daniel Weinstein, both former judges, to oversee and manage the mediation process.
Counsel for the parties participated in numerous multiple-day mediation sessions, directly managed by the mediators, from June 2008 through October 2008, and many additional meetings, attended by counsel for the parties and the insurers, to negotiate the terms of the settlement. Ultimately, after negotiations which ensued over a total of 9 months, the parties reached an agreement to resolve all Actions on a global basis, with the terms now set forth in the Stipulation.
Copies of the Court’s opinions, and copies of Plaintiffs’ complaints and master allegations, may be viewed on the Internet at www.iposecuritieslitigation.com.
In order to participate in the distribution of the settlement, you must send a completed and signed Proof of Claim and Release Form to the Claims Administrator’s Office postmarked no later than December 10, 2009 and must be mailed to:
Initial Public Offering Securities Litigation c/o The Garden City Group, Inc. P. O. Box 9352 Dublin, OH 43017-4252
Copies of broker confirmations or other documentation of your transactions should be attached to your claim. Failure to provide this documentation could delay verification of your claim or result in rejection of your claim. DO NOT SEND ORIGINALS OF ANY SUPPORTING DOCUMENTS. Keep a copy of your Proof of Claim and Release form and all documentation submitted for your records.
The Claims Administrator will acknowledge receipt of your Proof of Claim by mail, within 30 days. Your claim is not deemed filed until you receive an acknowledgment postcard. If you do not receive an acknowledgment postcard within 30 days, please call the Claims Administrator toll free at 1-800-916-6946.
Attorney
Advertising: The information presented on this website should never be
construed to be formal legal advice or to constitute the formation of
an attorney-client relationship. Prior results do not guarantee a
similar outcome.