Cohen Milstein Sellers & Toll PLLC Announce Summary Notice of Pendency of Class Action and Proposed Settlement, Settlement Fairness Hearing and Motion for Reimbursement of Litigation Expenses for the RALI MBS Litigation.
NEW YORK, July 10, 2013 /PRNewswire/ -- The following statement is being issued by Cohen Milstein Sellers & Toll PLLC regarding the RALI MBS Litigation.
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
NEW JERSEY CARPENTERS HEALTH FUND, ET AL., Plaintiffs,
RESIDENTIAL CAPITAL, LLC, ET AL., Defendants.
Civ. No. 08-8781-HB
SUMMARY NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT, SETTLEMENT FAIRNESS HEARING AND MOTION FOR REIMBURSEMENT OF LITIGATION EXPENSES
TO: ALL PERSONS OR ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED BENEFICIAL INTERESTS IN ANY OF THE FOLLOWING OFFERINGS AND WERE ALLEGEDLY DAMAGED THEREBY: RESIDENTIAL ACCREDIT LOANS, INC. ("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 WILL BE AFFECTED BY A CLASS ACTION LAWSUIT PENDING IN THIS COURT.
YOU ARE HEREBY NOTIFIED, pursuant to an Order of the United States District Court for the Southern District of New York, that a settlement of the Action that will resolve all claims in the Action against 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 Residential Funding Securities Corporation n/k/a Ally Securities, LLC (collectively, the "Settling Defendants") for $100 million in cash has been proposed. The Settlement will be funded as part of a global settlement and chapter 11 plan in the Residential Capital, LLC Chapter 11 bankruptcy proceedings, jointly administered as In re Residential Capital LLC, Case No. 12-12020-MG (Bankr. S.D.N.Y.) (the "ResCap Chapter 11 Case"), in exchange, in part, for third party releases and injunctions in favor of, inter alia, the Settling Defendants, and is thus conditioned upon approval of both the District Court herein as well as the confirmation of the ResCap Chapter 11 Plan in the ResCap Chapter 11 Case. A hearing will be held on October 7, 2013, at 9:30 a.m., before the Honorable Harold Baer, at the United States District Court for the Southern District of New York, 500 Pearl Street, New York, New York 10007, Courtroom 23B: (a) to determine whether the proposed Settlement on the terms and conditions provided for in the Stipulation is fair, reasonable and adequate and should be approved by the Court; (b) to determine whether the Order and Final Judgment as provided for under the Stipulation should be entered, dismissing the Action, on the merits and with prejudice, against the Settling Defendants; (c) to determine whether the release by the Settlement Class of the Released Claims against the Released Parties, as set forth in the Stipulation, should be ordered; (d) to determine whether the application by Lead Counsel for reimbursement of litigation expenses should be approved; and (e) to rule upon such other matters as the Court may deem appropriate. There will be no distribution of the Settlement Fund until after the Court approves final settlements or other dispositions against or in favor of the Non-Settling Defendants. Lead Counsel does not intend to request payment of their fees at this time. Rather, at this time Lead Counsel will request only that the Court allow Lead Counsel to receive reimbursement of prior expenses up to $1,000,000. Lead Counsel also reserves the right to apply to the Court on a periodic basis for reimbursement of future case related expenses, actually incurred, in an amount not to exceed $2 million.
In the event you choose to opt out of the Settlement and you have not filed a proof of claim on or before the bar date (November 16, 2012) for the filing of proofs of claim in the ResCap Chapter 11 Case, you will likely be precluded from obtaining any recovery against the ResCap Defendants in the ResCap Chapter 11 Case. In addition, the ResCap Chapter 11 Plan contemplates global releases of claims by third parties in favor of the Individual Defendants and Ally, among other ResCap related parties, in connection with a broad range of claims and potential claims, including claims based upon the purchase of ResCap related MBS. Upon the approval of such releases by the Bankruptcy Court, claims asserted by opt outs will be released and the prosecution of those claims will be enjoined. You are therefore urged to consult your own counsel as well as all relevant documents filed in the ResCap Chapter 11 Case to review and assess the consequences of opting out of the Settlement.
In the event the releases and injunctions in favor of the Individual Defendants and Ally are approved by the Bankruptcy Court in the ResCap Chapter 11 Case, you will likely have no remedy against the Individual Defendants and Ally if you object to, or request exclusion from, the Settlement unless the confirmation order from the Bankruptcy Court is stayed pending any appeal. If you object to the Settlement and the ResCap Chapter 11 Plan has been confirmed with no stay issued in connection with that Plan's effectiveness, then any such objection may be rendered moot and no remedy will be available in connection with an appeal of any order and judgment approving the Settling in the District Court.
IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED BY THE PENDING ACTION AND THE SETTLEMENT, AND YOU MAY BE ENTITLED TO SHARE IN THE NET SETTLEMENT FUND. If you have not yet received the full printed Notice of Pendency of Class Action and Proposed Settlement, Settlement Fairness Hearing and Motion for Reimbursement of Litigation Expenses (the "Notice"), you may obtain a copy of the Notice by contacting the Claims Administrator:
RALI MBS Litigation
c/o The Garden City Group, Inc.
P.O. Box 9991
Dublin, OH 43017-5991
If you are a member of the Class, in order to be potentially eligible to share in the distribution of the Net Settlement Fund, you need not do anything now, but you will be required to submit a Claim Form at a later date. Subsequent notice will issue with the Claim Form and instructions after resolution of the remaining claims against Non-Settling Defendants. To ensure you receive future notices, please provide the Claims Administrator with current contact information.
If you are a member of the Class and do not exclude yourself from the Class, you will be bound by any judgment entered in the Action whether or not you make a Claim. To exclude yourself from the Class, you must submit a request for exclusion such that it is received no later than September 16, 2013, in accordance with the instructions set forth in the Notice. Any objections to the proposed Settlement and/or Lead Counsel's application for reimbursement of litigation expenses must be filed with the Court and delivered to Lead Counsel and counsel for Settling Defendants such that they are received no later than September 25, 2013, in accordance with the instructions set forth in the Notice. If you are a member of the Class and do not submit a proper Claim Form at the appropriate time, you will not share in the Net Settlement Fund but you will nevertheless be bound by the Judgment of the Court.
PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE. Inquiries, other than requests for the Notice, may be made to Lead Counsel:
Joel P. Laitman
Daniel B. Rehns
Cohen Milstein Sellers & Toll PLLC
88 Pine Street, 14th Floor
New York, New York 10005
By Order of the Court
SOURCE Cohen Milstein Sellers & Toll PLLC
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