Lead Counsel Announce Pendency and Proposed Settlement of RALI Mortgage-Backed Securities Litigation
NEW YORK, March 10, 2015 /PRNewswire/ -- The following statement is being issued by Cohen Milstein Sellers & Toll PLLC regarding the RALI Mortgage-Backed Securities Litigation.
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
NEW JERSEY CARPENTERS HEALTH FUND, ET AL., Plaintiffs,
v.
RESIDENTIAL CAPITAL, LLC, ET AL., Defendants.
No. 08-cv-8781 (KPF)
SUMMARY NOTICE OF: (I) PENDENCY OF CLASS ACTION; (II) PROPOSED $235 MILLION SETTLEMENT WITH THE UNDERWRITER DEFENDANTS; (III) SETTLEMENT HEARING; (IV) PLAN OF ALLOCATION FOR DISTRIBUTION OF BOTH THE $235 MILLION SETTLEMENT WITH THE UNDERWRITER DEFENDANTS AND PREVIOUSLY APPROVED $100 MILLION SETTLEMENT WITH THE RESCAP DEFENDANTS, THE INDIVIDUAL DEFENDANTS, AND ALLY SECURITIES; AND (V) LEAD COUNSEL'S MOTION FOR ATTORNEYS' FEES AND REIMBURSEMENT OF LITIGATION EXPENSES
TO: All persons or entities who purchased or otherwise acquired interests in any mortgage asset-backed pass-through certificates issued by any of the following twenty (20) RALI trusts: RALI Series 2006-QH1, RALI Series 2006-QO1, RALI Series 2006-QO2, RALI Series 2006-QO3, RALI Series 2006-QO5, RALI Series 2006-QS7, RALI Series 2006-QO6, RALI Series 2006-QS8, RALI Series 2006-QO7, RALI Series 2006-QS15, RALI Series 2006-QO10, RALI Series 2007-QS1, RALI Series 2007-QS2, RALI Series 2007-QS5, RALI Series 2007-QH1, RALI Series 2007-QH2, RALI Series 2007-QH3, RALI Series 2007-QH4, RALI Series 2007-QH5, and RALI Series 2007-QH6 (the "Certificates").
– AND –
TO: All persons or entities who purchased certificates or otherwise acquired beneficial interests in any of the following fifty-nine (59) RALI trusts: RALI Series 2007-QS1, RALI Series 2007-QO4, RALI Series 2007-QH4, RALI Series 2006-QO7, RALI Series 2007-QS5, RALI Series 2006-QS7, RALI Series 2007-QO2, RALI Series 2006-QS11, RALI Series 2007-QS4, RALI Series 2006-QA4, RALI Series 2006-QA6, RALI Series 2006-QA7, RALI Series 2006-QA8, RALI Series 2006-QA10, RALI Series 2006-QA11, RALI Series 2007-QA1, RALI Series 2007-QA2, RALI Series 2007-QO3, RALI Series 2007-QA3, RALI Series 2007-QA5, RALI Series 2007-QH8, RALI Series 2007-QH9, RALI Series 2007-QO5, RALI Series 2007-QS11, RALI Series 2007-QS6, RALI Series 2006-QS8, RALI Series 2006-QS9, RALI Series 2007-QS7, RALI Series 2007-QH2, RALI Series 2007-QH5, RALI Series 2007-QH6, RALI Series 2006-QS18, RALI Series 2006-QO10, RALI Series 2006-QO3, RALI Series 2006-QO6, RALI Series 2007-QH3, RALI Series 2007-QS2, RALI Series 2006-QO9, RALI Series 2006-QO8, RALI Series 2006-QO5, RALI Series 2006-QA5, RALI Series 2006-QA9, RALI Series 2006-QH1, RALI Series 2006-QO4, RALI Series 2006-QS5, RALI Series 2006-QS16, RALI Series 2006-QS17, RALI Series 2007-QH1, RALI Series 2007-QO1, RALI Series 2007-QS3, RALI Series 2007-QA4, RALI Series 2007-QH7, RALI Series 2007-QS8, RALI Series 2007-QS10, RALI Series 2006-QS12, RALI Series 2006-QS13, RALI Series 2006-QS6, RALI Series 2007-QS9, and RALI Series 2006-QS15.
PLEASE READ THIS NOTICE CAREFULLY. YOUR RIGHTS MAY BE AFFECTED BY A CLASS ACTION LAWSUIT, SETTLEMENT, AND PLAN OF ALLOCATION PENDING IN THIS COURT.
NOTICE OF PENDENCY OF CLASS ACTION, SETTLEMENT WITH THE UNDERWRITER DEFENDANTS, PLAN OF ALLOCATION, AND LEAD COUNSEL'S MOTION FOR ATTORNEYS' FEES AND REIMBURSEMENT OF LITIGATION EXPENSES: You are hereby notified: (i) of the pendency of the above-captioned class action lawsuit (the "Action") asserting claims against defendants Citigroup Global Markets Inc., Goldman, Sachs & Co., and UBS Securities LLC (collectively, the "Underwriter Defendants"), relating to certain mortgage asset-backed pass-through certificates and brought on behalf of those who purchased or otherwise acquired interests in the Certificates described above on or before the date when a claim concerning those Certificates was first asserted in the Action (i.e., the "Date of First Suit") (the "Underwriter Settlement Class");1 (ii) that a proposed settlement has been reached in the Action (the "Underwriter Settlement"); (iii) of the plan of allocation pertaining to the Underwriter Settlement's funds; and (iv) of Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses. A hearing with respect to the Underwriter Settlement, the plan of allocation, and Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses will be held on July 31, 2015, at 2:30 P.M. before the Honorable Katherine Polk Failla, at the United States District Court for the Southern District of New York, Thurgood Marshall United States Courthouse, 40 Foley Square, Courtroom 618, New York, New York 10007.
The purpose of the hearing is to determine, among other things: (i) whether the proposed settlement of the claims asserted in this Action, pursuant to which the Underwriter Defendants will cause to be deposited the sum of $235,000,000.00 into a settlement fund in exchange for (among other things) the dismissal of the Action and a release of claims against the Underwriter Defendants and other related persons and entities, is fair, reasonable, and adequate, and should be finally approved by the Court; (ii) whether the Action should be dismissed, on the merits and with prejudice, and whether the releases set forth in the Underwriter Settlement should be ordered by the Court; (iii) whether the proposed plan of allocation of the settlement fund is fair and reasonable, and should be approved by the Court; and (iv) whether Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses should be approved.
If you are a member of the Underwriter Settlement Class, you may be entitled to share in the distribution of the Underwriter Settlement if you submit a claim form postmarked no later than July 3, 2015, establishing that you are entitled to a recovery.
If you are a member of the Underwriter Settlement Class, you have the right to object to the Underwriter Settlement, the plan of allocation, and/or Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses, or otherwise request to be heard, by submitting a written objection so that it is received by July 1, 2015, in accordance with the procedures described in a more detailed notice that has been mailed to persons or entities known to be potential members of the Underwriter Settlement Class, and that is available at www.RALIMBSLitigation.com. You also have the right to exclude yourself from the Underwriter Settlement Class by submitting a written request for exclusion so that it is received by June 22, 2015, in accordance with the procedures described in the more detailed notice. If the Underwriter Settlement is approved by the Court, you will be bound by the terms of that settlement and the Court's final order and judgment, including the releases provided for in the final order and judgment, unless you submit a request to be excluded.
NOTICE OF PLAN OF ALLOCATION FOR DISTRIBUTION OF THE PREVIOUSLY APPROVED $100 MILLION SETTLEMENT WITH RESCAP DEFENDANTS AND LEAD COUNSEL'S MOTION FOR ATTORNEYS' FEES AND REIMBURSEMENT OF LITIGATION EXPENSES: You are also hereby notified of: (i) the plan of allocation pertaining to funds from a previously approved $100 million settlement (the "ResCap Settlement") with defendants Residential Capital, LLC, Residential Funding Company, LLC, Residential Accredit Loans, Inc., Bruce J. Paradis, Kenneth M. Duncan, Davee L. Olson, Ralph T. Flees, Lisa R. Lundsten, James G. Jones, David M. Bricker, James N. Young, and Ally Securities (the "ResCap Defendants") pertaining to persons or entities who purchased certificates or otherwise acquired beneficial interests in any of the following fifty-nine (59) RALI trusts: RALI Series 2007-QS1, RALI Series 2007-QO4, RALI Series 2007-QH4, RALI Series 2006-QO7, RALI Series 2007-QS5, RALI Series 2006-QS7, RALI Series 2007-QO2, RALI Series 2006-QS11, RALI Series 2007-QS4, RALI Series 2006-QA4, RALI Series 2006-QA6, RALI Series 2006-QA7, RALI Series 2006-QA8, RALI Series 2006-QA10, RALI Series 2006-QA11, RALI Series 2007-QA1, RALI Series 2007-QA2, RALI Series 2007-QO3, RALI Series 2007-QA3, RALI Series 2007-QA5, RALI Series 2007-QH8, RALI Series 2007-QH9, RALI Series 2007-QO5, RALI Series 2007-QS11, RALI Series 2007-QS6, RALI Series 2006-QS8, RALI Series 2006-QS9, RALI Series 2007-QS7, RALI Series 2007-QH2, RALI Series 2007-QH5, RALI Series 2007-QH6, RALI Series 2006-QS18, RALI Series 2006-QO10, RALI Series 2006-QO3, RALI Series 2006-QO6, RALI Series 2007-QH3, RALI Series 2007-QS2, RALI Series 2006-QO9, RALI Series 2006-QO8, RALI Series 2006-QO5, RALI Series 2006-QA5, RALI Series 2006-QA9, RALI Series 2006-QH1, RALI Series 2006-QO4, RALI Series 2006-QS5, RALI Series 2006-QS16, RALI Series 2006-QS17, RALI Series 2007-QH1, RALI Series 2007-QO1, RALI Series 2007-QS3, RALI Series 2007-QA4, RALI Series 2007-QH7, RALI Series 2007-QS8, RALI Series 2007-QS10, RALI Series 2006-QS12, RALI Series 2006-QS13, RALI Series 2006-QS6, RALI Series 2007-QS9, and RALI Series 2006-QS15 (the "ResCap Settlement Class"); and (ii) Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses. A hearing with respect to the plan of allocation and Lead Counsel's motion for and award of attorneys' fees and reimbursement of litigation expenses will be held on July 31, 2015, at 2:30 P.M. before the Honorable Katherine Polk Failla, at the United States District Court for the Southern District of New York, Thurgood Marshall United States Courthouse, 40 Foley Square, Courtroom 618, New York, New York 10007.
The purpose of the hearing is to determine, among other things: (i) whether the proposed plan of allocation of the settlement fund is fair and reasonable, and should be approved by the Court; and (ii) whether Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses should be approved.
If you are a member of the ResCap Settlement Class, you may be entitled to share in the distribution of the settlement fund if you submit a claim form postmarked no later than July 3, 2015, establishing that you are entitled to a recovery.
If you are a member of the ResCap Settlement Class, you have the right to object to the plan of allocation and/or Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses, or otherwise request to be heard, by submitting a written objection so that it is received by July 1, 2015, in accordance with the procedures described in a more detailed notice that has been mailed to persons or entities known to be potential members of the ResCap Settlement Class, and that is available at www.RALIMBSLitigation.com.
This notice provides only a summary of matters regarding the Action and the ResCap Settlement and the Underwriter Settlement. A more detailed notice describing the Action, the Underwriter Settlement, and the rights of members of the ResCap Settlement Class and/or the Underwriter Settlement Class to appear in Court at the hearing referenced above, to request to be excluded from the Underwriter Settlement Class and/or to object to that settlement, the plan of allocation, and/or Lead Counsel's motion for an award of attorneys' fees and reimbursement of litigation expenses, has been mailed to persons or entities known to be potential members of the ResCap Settlement Class and/or Underwriter Settlement Class. You may obtain a copy of that more detailed notice, a claim form, or other information by writing to the following address or calling the following telephone number:
RALI MBS Litigation
c/o Garden City Group, LLC
P.O. Box 9991
Dublin, OH 43017-5991
(888) 985-9201
[email protected]
or by downloading the same from www.RALIMBSLitigation.com.
PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE. Inquiries, other than requests for the more detailed notice and claim form referenced above, may be made to Lead Counsel for the ResCap Settlement Class and the Underwriter Settlement Class:
COHEN MILSTEIN SELLERS & TOLL PLLC
Joel P. Laitman
Christopher Lometti
Michael Eisenkraft
88 Pine Street, 14th Floor
New York, N.Y. 10005
Telephone: (212) 838-7797
Email: [email protected], [email protected], [email protected]
Steven J. Toll
1100 New York Avenue, N.W.
Suite 500, West Tower
Washington, D.C. 20005
Tel.: (202) 408-4600
Email: [email protected]
Dated: March 5, 2015
By Order of the Clerk of the Court
United States District Court
for the Southern District of New York
1 The Date of First Suit is September 22, 2008 for the Certificates issued by the RALI Series 2006-QO1, RALI Series 2006-QO2, RALI Series 2006-QO3, RALI Series 2006-QO5, RALI Series 2006-QO6, RALI Series 2006-QO7, and RALI Series 2006-QO10 trusts and May 18, 2009 for the Certificates issued by the RALI Series 2006-QH1, RALI Series 2006-QS7, RALI Series 2006-QS8, RALI Series 2006-QS15, RALI Series 2007-QS1, RALI Series 2007-QS2, RALI Series 2007-QS5, RALI Series 2007-QH1, RALI Series 2007-QH2, RALI Series 2007-QH3, RALI Series 2007-QH4, RALI Series 2007-QH5, and RALI Series 2007-QH6 trusts
SOURCE Cohen Milstein Sellers & Toll PLLC
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