Washington Mutual MortgagePass-Through Certificates
BofA/Merrill Lynch MergerCase
Regions Morgan Keegan Funds
10/12/2012Here$68 million(Note 13)
Fifth Third Bancorp
Citigroup Bondholders Action
Countrywide Mortgage BackedSecurities Action
In addition to the $475 million securities class action settlement, Merrill Lynch also announced at the same time a $75 millionsettlement of the pending subprime-related ERISA settlement.
The $37.25 mm settlement consists of $24 mm payment by the company’s D&O insurers on behalf of the individualdefendants (the company itself was in bankruptcy); a payment by Deloitte & Touche LLP in the amount of $4.75 mm; and a payment of $8.5 mm by certain offering underwriters.
On May 5, 2010, Charles Schwab announced that it had agreed to pay $35 million to settle the remaining state law claims, inaddition to the previously announced $200 million it had agreed to pay to settle the federal securities law claims.
$624 mm settlement amount includes $24 mm from KPMG.
On November 8, 2010, Schwab moved to withdraw from the settlement, following a court ruling that the settlement did notinclude certain claims of claimants outside of California. A copy of the motion can be found here. On November 17, 2010, the
parties filed a joint motion to amend the settlement, to reflect the parties’ amended understanding regarding the non-Californiaclass members’ California state law claims. Refer here for the joint motion and refer herefor the amended stipulation.
The $33 million settlement consists of a settlement of $27.1 million on behalf of Ambac and its directors and officers and aseparate $5.9 settlement on behalf of Ambac’s offering underwriters.
When the court approved the settlement, the aggregate settlement amount was reduced to $601.5 million, as the settlementagreement had been revised to provide a separate fund of $22.5 million to fund possible separate settlements of opt out actions.Refer here.
The total of $100 million was allocated $52.5 mm to the Champion Income Fund class and $47.5 million to the Core BondFund class. This settlement does not relate to the separate Oppenheimer Rochester Funds consolidated cases.
The WaMu consolidated securities lawsuit settlement actually consisted of three separate settlements: a $105 mm settlementon behalf of the individual defendants; an $85 million settlement on behalf of the offering underwriter defendants; and an $18.5million settlement on behalf of the company’s auditor.
The parties’ settlements in principle are subject to the agreement of the bankruptcy court to lift the stay to allow the insurersto fund the settlements, as well as court approval. The two settlements consist of an agreement to settle the consolidated equityand debt holders’ action for $90 million (refer here) and the separate action of New Jersey state officials for $8.25 million (refer here).
The underwriter defendants were not a party to this settlement.
A separate $19.9 million settlement with Deloitte and Touche brought the total settlement value in the action to just under $295 million.
The global settlement amount of $68 million resolved a number of related lawsuits including not only the consolidatedshareholders suit but also the related shareholders derivative lawsuit.
Securities Class Action
Dismissals GrantedCompany Date Link
With Prejudice?D&O Diary Post
New Century Financial Corp.
05/08/08Here No (12), (19)
Copyright 2013 Kevin M. LaCroix