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March 22, 2011 – Judge Rakoff Approves Settlements with Grant Thornton LLP and Settling Officer Defendants

On March 22, 2011, following a Settlement Hearing on March 11, 2011, the Honorable Jed S. Rakoff entered orders granting final approval to the settlements reached with defendant Grant Thornton LLP and with defendants Joseph J. Murphy, Dennis A. Klejna and William M. Sexton (the “Settling Officer Defendants”), which together provided for an additional payment to the Settlement Class of $25.3 million. Judge Rakoff also certified the Settlement Class as to these defendants, authorized the application of the previously approved Plan of Allocation to the proceeds of these settlements, and approved Lead Counsel’s motion for attorneys’ fees and expenses. Click here to view the related Judgments and Court Orders.

Approval of these settlements concludes the litigation – unless a petition for certiorari filed by Lead Plaintiffs and pending in the U.S. Supreme Court is granted, in which case the litigation will resume against two other defendants against whom claims were previously dismissed.

February 4, 2011 – Lead Plaintiffs Submit Papers in Support of Final Approval of Settlements with Grant Thornton LLP and Settling Officer Defendants, and Lead Counsel Submit Papers in Support of Their Motion for Attorneys’ Fees and Expenses

On February 4, 2011, Lead Plaintiffs filed papers with the Court in support of final approval of the proposed settlements with Grant Thornton LLP and with Joseph J. Murphy, Dennis A. Klejna and William M. Sexton (the “Settling Officer Defendants”), authorization to apply the previously approved Plan of Allocation of the settlement proceeds to these additional settlements, and final certification of the settlement class as to these defendants. Lead Counsel also filed papers in support of their motion for attorneys’ fees and reimbursement of expenses. Click here to view the associated filings on our Lead Plaintiff Filings page. Judge Rakoff will consider the motions at the Settlement Hearing to be held on March 11, 2011 at 4:00 p.m.

November 12, 2010 - Judge Rakoff Grants Preliminary Approval to Settlements with Grant Thornton LLP and Settling Officer Defendants

On November 12, 2010, the Honorable Jed S. Rakoff granted preliminary approval to a settlement reached between Lead Plaintiffs and Refco’s former auditor, Grant Thornton LLP and a settlement reached between Lead Plaintiffs with Joseph J. Murphy, Dennis A. Klejna and William M. Sexton. Judge Rakoff also preliminarily certified a settlement class as to these defendants and approved the distribution of notice to class members concerning these settlements. Click here to view the Court Order.

Judge Rakoff scheduled a hearing (the “Settlement Hearing”) for March 11, 2011 at 4:00 p.m. at the United States Courthouse, 500 Pearl Street, New York, NY 10007. The purpose of the Settlement Hearing will be to determine, among other things, whether the proposed settlements are fair, reasonable and adequate and should be approved by the Court and whether the plaintiffs’ attorneys’ application for an award of attorneys’ fees and reimbursement of litigation expenses should be granted. Proposed Settlements to be Considered at the March 11, 2011 Hearing.

 

IMPORTANT DATES & DEADLINES

File a Proof of Claim If you previously submitted a Proof of Claim, you do not need to take further action. If your claim is valid and you are eligible for a payment, you will share in the proceeds of the Settlement(s) if the Settlement(s) are finally approved by the Court. If you have NOT previously submitted a Proof of Claim in the Refco Securities Litigation, you must submit one postmarked by March 15, 2011 in order to be eligible to share in the proceeds of the Settlements.
Request Exclusion Received no later than February 19, 2011
File an Objection Received no later than February 19, 2011
Settlement Hearing March 11, 2011 at 4:00 p.m. at the United States Courthouse, 500 Pearl Street, New York, NY 10007.

The following is a summary of the information which is presented in more detail in the Notice being mailed to class members. The Notice describes rights you may have in connection with the action and with respect to the Settlements and you should read it in its entirety. The following documents were mailed, beginning December 15, 2010, to potential class members who we have been able to identify:

The proposed settlements that will be considered at the March 11, 2011 hearing are (i) a settlement reached between Lead Plaintiffs and defendant Grant Thornton LLP, which provides for a payment of $25 million for the benefit of the Settlement Class and (ii) a settlement reached between Lead Plaintiffs and Joseph J. Murphy, Dennis A. Klejna and William M. Sexton (the “Settling Officer Defendants”) which provides for payment of $300,000 for the benefit of the Settlement Class.

If you purchased or otherwise acquired Refco Group Ltd., LLC/Refco Finance Inc. 9% Senior Subordinated Notes due 2012 (CUSIP Nos. 75866HAA5 and/or 75866HAC1) and/or common stock of Refco (CUSIP No. 75866G109) during the period July 1, 2004 through and including October 17, 2005, you may be eligible to participate in the settlements.

Participating in the Settlements

PLEASE NOTE, if you previously submitted a proof of claim form in connection with the earlier approved settlements in this action, do not submit another claim form. Your earlier claim will be considered for participation in the current settlements.

If you have not previously submitted a Proof of Claim form in the Refco Securities Litigation, you must submit one postmarked no later than March 15, 2011. Click here to download the Proof of Claim to participate in the settlements with defendant Grant Thornton LLP and defendants Joseph J. Murphy, Dennis A. Klejna and William M. Sexton. If the settlements are approved, the net proceeds of the settlements will be distributed to class members who submit timely and valid Proof of Claim forms, pursuant to the terms of the Plan of Allocation previously approved by the Court.

Further Information

If you would like a copy of the Notice, updated Plan of Allocation or Proof of Claim for the current settlements to be mailed to you or if you have any questions about submitting a Proof of Claim, please contact the Court-appointed Claims Administrator, The Garden City Group, at (888) 212-5574. For further information regarding the settlements you may also contact Lead Counsel at the addresses and telephone numbers set out in the Notice.

October 27, 2010 – Judge Rakoff Approves Settlements with Audit Committee Defendants and THL Defendants and with Underwriter Defendants and approves Plan of Allocation

On October 27, 2010, following a Settlement Hearing, the Honorable Jed S. Rakoff granted final approval to the settlements reached with the Audit Committee Defendants and the THL Defendants and the Underwriter Defendants (including Sandler O’Neil & Partners, L.P.). Judge Rakoff certified the settlement class as to these defendants and approved the proposed Plan of Allocation for the settlement proceeds. Judge Rakoff also approved Lead Counsel’s motion for attorneys’ fees and expenses. Click here to view the related Court Orders and Judgments.

October 20, 2010 - Lead Plaintiffs Submit Supplemental Papers in Support of Final Approval of Settlements with Audit Committee Defendants and THL Defendants and with Underwriter Defendants

On October 20, 2010, Lead Plaintiffs and Lead Counsel filed supplemental papers with the Court in further support of Lead Plaintiffs’ motion for final approval of the proposed settlements with the Audit Committee Defendants and the THL Defendants and with the Underwriter Defendants and final approval of the proposed Plan of Allocation of the settlement proceeds and in further support of Lead Counsel’s motion for attorneys’ fees and reimbursement of expenses. Click here to view the associated filings on our Lead Plaintiff Filings page.

October 18, 2010 - Lead Plaintiffs Present Settlements with Grant Thornton LLP and with the Settling Officer Defendants to Court for Preliminary Approval

On October 18, 2010, Lead Plaintiffs presented a proposed settlement with Refco’s former auditor, Grant Thornton LLP and a proposed settlement with Joseph J. Murphy, Dennis A. Klejna and William M. Sexton (the “Settling Officers Defendants”) to the Court for preliminary approval and certification of the settlement class as against these settling defendants. If preliminarily approved, a notice explaining the settlements in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by the Court.  Click here to view the associated filings on our Lead Plaintiff Filings page.

September 22, 2010 – Lead Plaintiffs Submit Papers in Support of Final Approval of Settlements with Audit Committee Defendants and THL Defendants and with Underwriter Defendants, and Lead Counsel Submit Papers in Support of Their Motion for Attorneys’ Fees and Expenses

On September 22, 2010, Lead Plaintiffs filed papers with the Court in support of final approval of the proposed settlements with the Audit Committee Defendants and the THL Defendants and with the Underwriter Defendants (discussed in more detail below), final approval of the proposed Plan of Allocation of the settlement proceeds, and final certification of a class for settlement purposes. Lead Counsel also filed papers in support of their motion for attorneys’ fees and reimbursement of expenses. Click here to view the associated filings on our Lead Plaintiff Filings page. Judge Rakoff will consider the motions at the Settlement Hearing to be held on October 27, 2010 at 4:00 p.m.

July 30, 2010 – Judge Rakoff Grants Preliminary Approval to Settlements with Audit Committee Defendants and THL Defendants and with Underwriter Defendants and sets Settlement Hearing

On July 30, 2010, the Honorable Jed S. Rakoff granted preliminary approval to a settlement reached between Lead Plaintiffs and the Audit Committee Defendants and the THL Defendants, which provides for a payment of $130 million for the benefit of the settlement class, plus a possible additional settlement payment of up to $10 million; and to a settlement reached between Lead Plaintiffs and the Settling Underwriter Defendants, which provides for payment of $49.5 million for the benefit of the settlement class. Judge Rakoff also preliminarily certified a settlement class for these settlements and approved the distribution of notice to class members concerning these settlements and a settlement between Lead Plaintiffs and Sandler O’Neill & Partners L.P., which provides for a payment of $3.5 million, that had previously been preliminarily approved. The action is continuing against the remaining defendants. Click here to view the Court Orders.  Click here to view the stipulations of settlement.

Judge Rakoff scheduled a hearing (the “Settlement Hearing”) for October 27, 2010 at 4:00 p.m. at the United States Courthouse, 500 Pearl Street, New York, NY 10007. The purpose of the Settlement Hearing will be to determine, among other things, whether the proposed settlements are fair, reasonable and adequate and should be approved by the Court; whether the proposed plan of allocation for the settlement proceeds is fair and reasonable and should be approved; and whether the plaintiffs’ attorneys’ application for an award of attorneys’ fees and reimbursement of litigation expenses should be granted.

Proposed Settlements to be Considered at the October 27, 2010 Hearing


IMPORTANT DATES & DEADLINES

File a Proof of Claim

To be eligible to participate in the settlements that will be considered at the October 27, 2010 hearing and a previously approved settlement and in the distribution of certain restitution funds obtained by Lead Plaintiffs from the United States government, you must submit a Proof of Claim postmarked no later than November 9, 2010

Request Exclusion

Received no later than October 7, 2010

File an Objection

Received no later than October 7, 2010

Settlement Hearing

October 27, 2010 at 4:00 p.m. at the United States Courthouse, 500 Pearl Street, New York, NY 10007.



The following is a summary of the information which is presented in more detail in notices being mailed to class members. The notices describe rights you may have in connection with the action and with respect to the settlements and you should read them in their entirety. The following documents are being mailed in one package by first-class mail to potential class members whom we have been able to identify:

All four documents listed above can be downloaded in a single PDF document, the Notice Packet. Please note, only one copy of the Proof of Claim form, which applies to all the settlements, should be submitted.

Securities Brokers and other Nominees: To obtain copies of the Notice Packet for mailing to beneficial owners please click here.

The proposed settlements that will be considered at the October 27, 2010 hearing are (i) a settlement reached between Lead Plaintiffs and the Audit Committee Defendants and the THL Defendants, which provides for a payment of $130 million for the benefit of the settlement class, plus a possible additional settlement payment of up to $10 million; (ii) a settlement reached between Lead Plaintiffs and the Settling Underwriter Defendants, which provides for payment of $49.5 million for the benefit of the settlement class; and (iii) a settlement reached between Lead Plaintiffs and Sandler O’Neill & Partners L.P., which provides for payment of $3.5 million for the benefit of the settlement class.

If you purchased or otherwise acquired Refco Group Ltd., LLC/Refco Finance Inc. 9% Senior Subordinated Notes due 2012 (CUSIP Nos. 75866HAA5 and/or 75866HAC1) and/or common stock of Refco (CUSIP No. 75866G109) during the period July 1, 2004 through and including October 17, 2005, you may be eligible to participate in the settlements.

If you wish to participate, you must submit a Proof of Claim
postmarked no later than November 9, 2010. The proceeds of the settlements that will be considered at the October 27, 2010 Settlement Hearing will be combined with amounts recovered in a previously approved settlement and certain restitution funds obtained by Lead Plaintiffs from the United States government for the benefit of class members. If all proposed settlements are approved, the Total Settlement Amount is expected to be approximately $380.488 million, plus interest thereon (the “Total Settlement Fund”). After payment of taxes, the costs of providing notice and administering the settlements, and the attorneys’ fees and expenses awarded by the Court, the remainder of the Total Settlement Fund (the “Net Total Settlement Fund”) will be distributed to class members who submit timely and valid Proof of Claim forms, pursuant to the terms of the plan of allocation that is approved by the Court. A link to the Plan of Allocation proposed for approval by Lead Plaintiffs is set forth above.

Further Information

If you would like a copy of the Notice Packet to be mailed to you or if you have any questions about submitting a Proof of Claim, please contact the Court-appointed Claims Administrator, The Garden City Group, at (888) 212-5574. For further information regarding the settlements you may also contact Lead Counsel at the addresses and telephone numbers set out in the notices.

April 20, 2010 - Lead Plaintiffs Present Settlement with Remaining Underwriter Defendants to the Court for Preliminary Approval

On April 20, 2010, Lead Plaintiffs presented the settlement with the remaining Underwriter Defendants to the Court for preliminary approval and certification of the settlement class. If preliminarily approved, notice explaining the settlement in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by the Court. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

In October 2008, Lead Plaintiffs signed a stipulation and agreement of settlement with Underwriter Defendant Sandler O’Neill & Partners, L.P. for a payment of $3.5 million in cash, which the Court preliminarily approved on November 5, 2008 (see below). If the Court grants final approval to these two settlements, the claims against the Underwriter Defendants will be resolved for a total payment of $53 million in cash.

April 20, 2010 - Lead Plaintiffs Reach Partial Settlement with Remaining Underwriter Defendants for Payment of $49.5 Million in Cash, Bringing Total Settlement with the Underwriters to $53 Million in Cash

On April 20, 2010, Lead Plaintiffs RH Capital Associates LLC and Pacific Investment Management Company LLC signed a stipulation and agreement of settlement with Defendants Credit Suisse Securities (USA) LLC, Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities Inc., HSBC Securities (USA) Inc., William Blair & Company, L.L.C., BMO Capital Markets Corp. (f/k/a Harris Nesbitt Corp.), Samuel A. Ramirez & Company, Inc., Muriel Siebert & Co., Inc., and The Williams Capital Group, L.P. (collectively, the “Settling Underwriter Defendants”) for a payment of $49.5 million in cash. Further to the settlement, the claims against Defendants CMG Institutional Trading, LLC and Utendahl Capital Partners, L.P. will be dismissed.

April 5, 2010 - Lead Plaintiffs Present Settlement with THL Defendants And Audit Committee Defendants to Court for Preliminary Approval

On April 5, 2010, Lead Plaintiffs presented the settlement with the THL Defendants and the Audit Committee Defendants to the Court for preliminary approval and certification of the settlement class. If preliminarily approved, notice explaining the settlement in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by the Court. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

March 29, 2010 - Lead Plaintiffs Reach Partial Settlement with THL Defendants And Audit Committee Defendants for Payment of at Least $130 Million in Cash

On March 29, 2010, Lead Plaintiffs RH Capital Associates LLC and Pacific Investment Management Company LLC signed a stipulation and agreement of settlement with Defendants Ronald L. O’Kelley, Leo R. Breitman and Nathan Gantcher (collectively, the “Audit Committee Defendants”); Thomas H. Lee Equity Fund V, L.P., Thomas H. Lee Parallel Fund V, L.P. and Thomas H. Lee Equity (Cayman) Fund V, L.P. (collectively, the “THL Funds”); Thomas H. Lee Partners, L.P., THL Equity Advisors V, LLC, Thomas H. Lee Investors Limited Partnership and The 1997 Thomas H. Lee Nominee Trust and any predecessor or related THL Entities named in any prior version of the Complaint, (collectively, with the THL Funds, the “THL Entities”) and Thomas H. Lee, David V. Harkins, Scott L. Jaeckel and Scott A. Schoen (collectively, with the THL Entities, the “THL Defendants”) for a payment of $130 million in cash, plus an amount equal to 50% of any additional amount that the THL Entities receive as restitution from the government in connection with their claims against Refco, up to a maximum additional amount of $10 million.

November 5, 2008 - Judge Lynch Grants Preliminary Approval to Partial Settlement with Defendant Sandler O'Neill & Partners, L.P.

On November 5, 2008, the Honorable Gerard E. Lynch granted preliminary approval to the partial settlement reached between Lead Plaintiffs and Defendant Sandler O'Neill & Partners L.P. In his preliminary approval order, Judge Lynch wrote that "[i]n the interests of conserving expenses to the class, the Court shall defer until a later date the preliminary approval of a proposed notice and notice procedures for the Settlement, and the scheduling of a hearing for final approval of the Settlement." Click here to view Judge Lynch's Opinion. Click here to view all Court Orders.

October 27, 2008 - Lead Plaintiffs Present Settlement with Defendant Sandler O’Neill & Partners L.P. to Court for Preliminary Approval

On October 27, 2008, Lead Plaintiffs presented the settlement with Defendant Sandler O'Neill & Partners L.P. (a junior member of the 15-member underwriting syndicate who underwrote approximately 2.8% of the IPO) to Judge Lynch for preliminary approval and certification of the settlement class. If preliminarily approved, notice explaining the settlement in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by Judge Lynch. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

March 26, 2008 - Judge Lynch Grants Preliminary Approval to Partial Settlement with Defendant Joseph J. Murphy

On March 26, 2008, the Honorable Gerard E. Lynch granted preliminary approval to the partial settlement reached between Lead Plaintiffs and defendant Joseph Murphy. Regarding the non-settling defendants who objected to the settlement with Murphy, Judge Lynch wrote that "the non-settling defendants' arguments are a rehash of the arguments made and rejected in connection with an earlier settlement agreement with defendant Dennis A. Klejna, and they are rejected again for the reasons fully set forth in the Court's order of January 22, 2008, granting preliminary approval to that settlement." Click here to view all Court Orders.

February 21, 2008 - Lead Plaintiffs Present Settlement with Defendant Joseph J. Murphy to Court for Preliminary Approval

On February 21, 2008, Lead Plaintiffs presented the settlement with Joseph J. Murphy (Refco Group's former Exec. Vice President and President of various Refco subsidiaries) to Judge Lynch for preliminary approval and certification of the settlement class. If the settlement is preliminarily approved, notice explaining the deal in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by Judge Lynch. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

January 22, 2008 - Judge Lynch Grants Preliminary Approval to Settlement with Defendant Dennis A. Klejna

On January 22, 2008, the Honorable Gerard E. Lynch granted preliminary approval to the partial settlement reached between Lead Plaintiffs and defendant Dennis A. Klejna. Judge Lynch wrote that "[i]n the interests of conserving expense to the class, the Court will defer consideration of ... preliminary certification of the class, preliminary approval of notice to the class, and the scheduling of a fairness hearing, pending submission of additional motion(s) for approval of further settlements that Lead Plaintiffs have advised have already been reached in principle, or may soon be reached, with other defendants, which may appropriately be addressed in a single notice and at a single hearing." Click here to view Judge Lynch's Opinion. Click here to view all Court Orders.

December 7, 2007 - Lead Plaintiffs Present Settlement with Defendant Dennis A. Klejna to Court for Preliminary Approval

On December 7, 2007, Lead Plaintiffs presented the settlement with Dennis A. Klejna (Refco's former General Counsel and Exec. Vice President) to Judge Lynch for preliminary approval and certification of the settlement class. If the settlement is preliminarily approved, notice explaining the deal in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by Judge Lynch. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

December 6, 2007 - Lead Plaintiffs Announce Settlement With Defendant Dennis A. Klejna for Payment of $7,600,000 and Cooperation Against Others Who Played Role in Refco Affair

On December 6, 2007, RH Capital Associates LLC and Pacific Investment Management Company LLC, the institutional investors appointed by U.S. District Judge Gerard E. Lynch to serve as Lead Plaintiffs on behalf of investors victimized by the Refco affair, signed a settlement agreement with Dennis A. Klejna ("Klejna"). Klejna was Refco's former General Counsel and Executive Vice President. Pursuant to the agreement, Klejna has agreed to pay to Lead Plaintiffs, on behalf of the Class, a total settlement amount of $7,600,000, including a personal contribution of $50,000.00 in cash.

In addition to the monetary payment, Klejna has pledged to cooperate with Lead Plaintiffs as they pursue the Class’ claims against other current (and prospective) defendants in the consolidated securities class action.

The settlement resolves two categories of claims asserted against Klejna in the Refco class action, namely, claims arising from Refco’s bond and stock offerings in 2004 and 2005, and claims arising out of the purchase of Refco securities in the open market between August 5, 2004 and October 17, 2005 . As part of the settlement, the Class’ claims against Klejna will be released.

This is the second settlement achieved for the Class in the Refco Securities Litigation. Lead Plaintiffs will continue to pursue the Class’ claims against the remaining defendants, which include several former Refco insiders (including former CEO Phillip Bennett), Refco’s former board of directors, Refco’s former auditor (Grant Thornton LLP), the investment banking concern that helped take Refco “public” in August 2005 (Thomas H. Lee Partners L.P. and related entities), and a total of fifteen investment banks that sold Refco stocks and bonds to public investors (including Goldman Sachs, Credit Suisse and Bank of America).

The attorneys who worked to achieve this settlement are partners Sean Coffey, Salvatore Graziano and John Browne and associate Jeremy Robinson of Bernstein Litowitz Berger & Grossmann LLP, and partners Stuart Grant, James Sabella, and Megan McIntyre of Grant & Eisenhofer P.A. Their work prosecuting the Class’ claims against other defendants in the Refco debacle continues.

June 29, 2007 – Judge Lynch Grants Final Approval to BAWAG Settlement

On June 29, 2007, the Honorable Gerard E. Lynch granted final approval to the partial settlement reached between Lead Plaintiffs and defendant BAWAG for a total of $140 million (the “BAWAG Settlement”).  In doing so, Judge Lynch found the settlement to be fair, reasonable and adequate to the Class.  As part of the final approval opinion, Judge Lynch also certified as a Class for settlement purposes “…all persons and entities that purchased or otherwise acquired Refco Group Ltd., LLC/Refco Finance Inc. 9% Senior Subordinated Notes due 2012 and/or common stock of Refco, Inc. during the period August 5, 2004 through and including October 17, 2005 and who were damaged thereby (subject to certain exceptions).”

March 5, 2007 – Judge Lynch Grants Preliminary Approval to BAWAG Settlement

On March 5, 2007, the Honorable Gerard E. Lynch preliminarily certified as a Class “…all persons and entities that purchased or otherwise acquired Refco Group Ltd., LLC/Refco Finance Inc. 9% Senior Subordinated Notes due 2012 (CUSIP Nos. 75866HAAS and/or 75866HAC1) and/or common stock of Refco, Inc. (CUSIP No. 7566G109) during the period August 5, 2004 through and including October 17, 2005 and who were damaged thereby (subject to certain exceptions).” Judge Lynch also granted preliminary approval to the partial settlement reached between Lead Plaintiffs and defendant BAWAG and scheduled a hearing (the “Settlement Hearing”) to take place on June 29, 2007 at the United States Courthouse, 500 Pearl Street, New York, NY, 1007. The purpose of the Settlement Hearing will be to determine, among other things, whether the proposed settlement with BAWAG is fair, reasonable and adequate to the Class and whether it should be approved by the Court. Click here to view Judge Lynch’s Opinion. Click here to view all Court Orders.

February 22, 2007 - Lead Plaintiffs Submit Revised BAWAG Settlement to Court for Preliminary Approval

On February 22, 2007, Lead Plaintiffs submitted a revised BAWAG settlement to Judge Lynch for preliminary approval and certification of the settlement class. The settlement has been revised to include language agreed between the parties regarding certain effects the settlement may have on the remainder of the litigation. Although certain terms of the settlement agreement have been revised, the amounts involved in the settlement remain the same. If the settlement is preliminarily approved, notice explaining the deal in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by Judge Lynch sometime in the Fall. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

September 8, 2006 - Lead Plaintiffs Present the BAWAG Settlement to Court for Preliminary Approval

On September 8, 2006, Lead Plaintiffs presented the BAWAG settlement to Judge Lynch for preliminary approval and certification of the settlement class. If the settlement is preliminarily approved, notice explaining the deal in greater detail will thereafter be sent to Class members, who will have an opportunity to file any formal objections they may have before a final approval hearing is held by Judge Lynch sometime in the Fall. The timing of the distribution of the funds recovered in this settlement to Class members has not yet been determined. Click here to view the associated filings on our Lead Plaintiff Filings page.

June 5, 2006 - Lead Plaintiffs Announce Settlement With Austrian Bank BAWAG for Payment of at Least $108 Million in Cash and Cooperation Against Others Who Played Role in Refco Affair;

On June 5, 2006, RH Capital Associates LLC and Pacific Investment Management Company LLC, the institutional investors appointed by U.S. District Judge Gerard E. Lynch to serve as Lead Plaintiffs on behalf of investors victimized by the Refco affair, signed a settlement agreement with BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft, an Austrian bank that had been sued for securities fraud by Lead Plaintiffs. Pursuant to the agreement, BAWAG has agreed to pay to Lead Plaintiffs, on behalf of the Class, at least $108 million in cash, with the possibility of an additional payment of up to $32 million when BAWAG is sold in the coming months.

In addition to the cash payment(s), BAWAG has pledged to cooperate with Lead Plaintiffs as they pursue the Class’ claims against other current (and prospective) defendants in the consolidated securities class action.  Indeed, BAWAG began to assist Lead Plaintiffs before the settlement agreement was formally signed, making available for Lead Counsel’s review a large cache of documents referring to the various roles played by Refco insiders and Refco’s bankers, lawyers, and auditors.

The settlement resolves two categories of claims asserted against BAWAG in the Refco class action, namely, claims arising from Refco’s bond and stock offerings in 2004 and 2005, and claims arising out of the purchase of Refco securities in the open market between August 5, 2004 and October 17, 2005 . As part of the settlement, the Class’ claims against BAWAG will be released.

The settlement between Lead Plaintiffs and BAWAG is an integral part of a set of settlements recently reached between BAWAG and various parties, including Lead Plaintiffs, the United States Attorney for the Southern District of New York (“USAO”) and the Official Committee of Unsecured Creditors in the Refco bankruptcy proceedings. In order to facilitate BAWAG’s ability to achieve global resolution of its potential liability relative to Refco, Lead Plaintiffs have agreed that certain funds they may obtain from a restitution fund that the USAO is establishing for victims of the Refco debacle (and funded by BAWAG) will be credited as partial payment of BAWAG’s obligations under this agreement. The agreement specifically provides, however, that BAWAG remains absolutely obligated to make the payments to the Class required under the deal if, for any reason, the funds obtained through the restitution fund fall short of the required amounts.

This is the first settlement achieved for the Class in the Refco Securities Litigation. Lead Plaintiffs will continue to pursue the Class’ claims against the remaining defendants, which include several former Refco insiders (including former CEO Phillip Bennett), Refco’s former board of directors, Refco’s former auditor (Grant Thornton LLP), the investment banking concern that helped take Refco “public” in August 2005 (Thomas H. Lee Partners L.P. and related entities), and several investment banks that sold Refco stocks and bonds to public investors (including Goldman Sachs, Credit Suisse and Bank of America). Lead Plaintiffs are also evaluating the role and potential liability of other participants in the Refco scandal.

The attorneys who worked to achieve this settlement are partners Sean Coffey and Salvatore Graziano and associates John Browne and Jeremy Robinson of Bernstein Litowitz Berger & Grossmann LLP, and partners Stuart Grant, James Sabella, and Megan McIntyre and associates Jonathan Margolis and Christine Mackintosh of Grant & Eisenhofer P.A. Their work prosecuting the Class’ claims against other defendants in the Refco debacle continues.

 

 

For additional information please email your request to info@refcosecuritieslitigation.com
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