Grant & Eisenhofer P.A. and Kessler Topaz Meltzer & Check LLP Announce a Proposed Settlement of Liberty Tax Inc. Stockholder Litigation

WILMINGTON, Del., April 30, 2019 /PRNewswire/ --

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT
OF STOCKHOLDER CLASS AND DERIVATIVE ACTION,
SETTLEMENT HEARING, AND RIGHT TO APPEAR

PLEASE READ THIS NOTICE CAREFULLY.  YOUR RIGHTS WILL BE AFFECTED BY A CLASS AND DERIVATIVE LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to Delaware Court of Chancery Rules 23(a), 23(b)(1), 23(b)(2) and 23.1 and an Order of the Delaware Court of Chancery (the "Court"), that the above-captioned class and derivative action (the "Action") has been preliminarily certified as a non-opt out class action on behalf of the Settlement Class, except for certain persons and entities who are excluded from the Settlement Class by definition as set forth in the Stipulation of Settlement and the full printed Notice of Pendency and Proposed Settlement of Class and Derivative Action, Settlement Hearing and Right to Appear (the "Long-Form Notice").  Copies of the Stipulation of Settlement and the Long-Form Notice are available for review at www.libertytaxshareholdersettlement.com.

YOU ARE ALSO HEREBY NOTIFIED that Plaintiffs in the Action, on behalf of themselves and the other members of the Settlement Class, have reached a proposed settlement of class and derivative claims that will require Liberty to implement certain corporate governance changes (the "Settlement") on the terms and conditions set forth in the Stipulation of Settlement.  If the proposed Settlement is approved by the Court, it will resolve all claims in the Action.

IF YOU ARE A MEMBER OF THE SETTLEMENT CLASS OR ARE OTHERWISE A CURRENT LIBERTY STOCKHOLDER, YOUR RIGHTS WILL BE AFFECTED BY THE PENDING ACTION AND THE SETTLEMENT.  A Postcard Notice is currently being mailed to known current Liberty stockholders and known members of the Settlement Class, and the Long-Form Notice is available at www.libertytaxshareholdersettlement.com or by contacting Liberty at:

In re Liberty Tax, Inc. Stockholder Litigation.
c/o A.B. Data Ltd.
P.O. Box 170500
Milwaukee, WI 53217

Inquiries, other than requests for the Postcard Notice, may be made to following Co-Lead Counsel for the Settlement Class:

A settlement hearing will be held on June 28, 2019 at 1:30 p.m. at the Court of Chancery in the Leonard L. Williams Justice Center, 500 North King Street, Wilmington, DE 19801, to determine, among other things, (i) whether the proposed Settlement should be approved as fair, reasonable, and adequate; (ii) whether the Action should be dismissed with prejudice and the Releases specified and described in the Stipulation of Settlement (and in the Long-Form Notice) should be granted; and (iii) whether Co-Lead Counsel's application for an award of attorneys' fees and reimbursement of litigation expenses should be approved.

If the Settlement is approved by the Court, no further action is required by current Liberty stockholders or Settlement Class Members.  Because the Settlement is non-monetary, Liberty stockholders and Settlement Class Members do not have to submit a claim form or take any other action in connection with the Settlement.

Any objections to the proposed Settlement and/or Co-Lead Counsel's application for an award of attorneys' fees and reimbursement of litigation expenses, must be filed with the Register in Chancery and delivered to Representative Co-Lead Counsel and Representative Defendant's Counsel such that they are received no later than June 18, 2019, in accordance with the instructions set forth in the Long-Form Notice.

YOU ARE FURTHER NOTIFIED that the plaintiff in a related derivative action currently pending in the United States District Court in the Eastern District of Virginia (the "E.D.Va. Action") is making an application to the court (the "Virginia Court") for an award of attorneys' fees and expenses in the amount of $295,000.  This amount has been agreed to by and among the parties to the E.D.Va. Action, without the participation of Plaintiffs or Plaintiffs' Counsel in this Action, and, if approved by the Virginia Court, will be paid by the Company and/or its insurance carrier.  Further information about the Virginia Hearing can be found in Exhibit 99.1 to Liberty's Form 8-K filing, dated April 9, 2019, available for review as www.libertytaxshareholdersettlement.com.

DO NOT CALL OR WRITE THE COURT OR THE OFFICE OF
THE REGISTER IN CHANCERY REGARDING THIS NOTICE.

¹ Any capitalized terms used herein that are not otherwise defined herein shall have the meanings ascribed to them in the Stipulation and Agreement of Settlement, Compromise and Release dated March 15, 2019 (the "Stipulation of Settlement"), which is available at www.libertytaxshareholdersettlement.com.

SOURCE Grant & Eisenhofer P.A.

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