Broadwind Fair Fund Distribution Agent Announces Notice of Distribution Plan

CHANHASSEN, Minn., March 21, 2022 /PRNewswire/ --

UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

If you purchased or acquired Broadwind Energy ("Broadwind") common stock, traded on the NASDAQ under the trading symbol BWEN (the "Security") during the period March 16, 2009 through March 11, 2010, inclusive (the "Recovery Period"), you may be eligible to recover from the Broadwind Fair Fund. You must submit a completed Proof of Claim Form with the necessary documentation so that it is postmarked or, if not sent by U.S. Mail, received by JUNE 14, 2022 (the "Claims Bar Date") to be eligible to recover from the Fair Fund.

PLEASE READ THE PLAN NOTICE CAREFULLY AND IN ITS ENTIRETY. IF YOU TIMELY SUBMIT A CLAIM FORM AND YOU SATISFY THE ELIGIBILITY CRITERIA UNDER THE DISTRIBUTION PLAN APPROVED BY THE COMMISSION, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION PAYMENT FROM THE BROADWIND FAIR FUND. THE PLAN NOTICE CONTAINS IMPORTANT INFORMATION REGARDING THE BROADWIND FAIR FUND, THE PLAN, AND ELIGIBILITY UNDER THE PLAN.

Background

On February 5, 2015, the U.S. Securities and Exchange Commission (the "SEC" or "Commission") filed a Complaint against Broadwind Energy, Inc. ("Broadwind"), J. Cameron Drecoll ("Drecoll"), and Stephanie K. Kushner ("Kushner") (collectively, the "Defendants") in the United States District Court for the Northern District of Illinois (the "Court").  The SEC alleged accounting and disclosure securities law violations arising from Broadwind's failure to record and disclose a $58 million impairment charge for intangible assets prior to a public offering in January 2010. 

On February 11, 2015, the Court entered final judgments against all of the Defendants, ordering them, in the aggregate, to pay disgorgement of $495,000.00 plus prejudgment interest of $71,467.00 and civil penalties of $1,125,000.00, for a total of $1,691,467.00. The Defendants have paid the full amounts ordered by the Court, which is deposited in an interest-bearing account at the U.S. Treasury's Bureau of Fiscal Service ("BFS"). Each of the final judgments provides that the SEC may propose a plan to distribute the collected funds subject to the Court's approval that the plan may provide for a distribution pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002 ("SOX"), and that the Court shall retain jurisdiction over the administration of any distribution of the Fund.

On February 20, 2020, the Court established a Fair Fund, pursuant to Section 308(a) of SOX consisting of the $1,691,467.00 paid by the Defendants, along with any accrued interest and earnings thereon (the "Fair Fund"), and appointed Miller Kaplan Arase LLP as tax administrator ("Tax Administrator") to fulfill the tax obligations of the Fair Fund ("MKA Appointment Order").

On February 20, 2020, the Court also appointed Analytics Consulting LLC as the distribution agent ("Analytics" or "Distribution Agent") for the Fair Fund to assist in overseeing the administration and the distribution of the Fair Fund in coordination with SEC staff, pursuant to the terms of a distribution plan to be approved by this Court. On January 6, 2022, the Court approved the Plan.

Who is Potentially Eligible for Compensation?

If you purchased Broadwind common stock during the period March 16, 2009 through March 11, 2010, inclusive; are not an Excluded Party as defined in the Plan; and suffered a loss according to the Plan; you may be eligible for a Distribution Payment from the Broadwind Fair Fund. Distribution Payments will be subject to a $10.00 Minimum Distribution Amount.

Excluded Parties are defined as: a) any director or officer, past or present, of Broadwind or any of their past or present advisers, agents, affiliate ( or any of the nominees, assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities of the foregoing) who served in such capacity during the Relevant Period; b) the Defendants in the captioned action (or any of the Defendant's advisers, agents, affiliates, nominees, assignees, creditors, heirs, distributees, spouses, parents, children, or controlled entities); c) any employee or former employee of the Defendant or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct described in the Order; d) the Distribution Agent, its employees, and those persons assisting the Distribution Agent in its role as Distribution Agent; e) any Person who assigned their right to obtain a recovery in the Commission's action against Defendants; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance, devise or operation of law; and f) any Person who, as of the Claims Bar Date, has been the subject of criminal charges related to the violations alleged in the Commission's complaint in this action or any related Commission action ( or any of his or her affiliates, assignees, creditors, heirs, distributees, spouses, parents, children, or controlled entities) unless and until such defendant is found not guilty in all such criminal actions prior to the Claims Bar Date, and proof of the finding(s) is included in such defendant's timely filed Claim Form;

How to Make a Claim

You must complete and sign the Claim Form and submit it to Distribution Agent so that it is postmarked or, if not sent by U.S. Mail, received no later than JUNE 14, 2022

The Claim Form can be downloaded at www.SECvBroadwindFairFund.com. If you have any questions or would like the Court-appointed Distribution Agent to send you a Claim Form, call 1-855-907-3474 or email [email protected].

You can file a Claim Form by mailing the completed form to:

Broadwind Fair Fund
c/o Analytics Consulting LLC
Distribution Agent
P.O. Box 2007
Chanhassen, MN 55317-2007

If you do not complete and timely submit a Claim Form, you will not be considered for eligibility to receive a Distribution Payment under the Plan.

Obtaining a Plan of Distribution and Additional Information

You can get a copy of the Plan and additional information concerning the Broadwind Fair Fund at www.SECvBroadwindFairFund.com. You can also obtain a copy of the Plan by emailing the Distribution Agent at info@ SECvBroadwindFairFund.com, calling the Distribution Agent at 1-855-907-3474, or writing to Broadwind Fair Fund, c/o Analytics Consulting LLC, Distribution Agent, P.O. Box 2007, Chanhassen, MN 55317-2007.

Source: Analytics Consulting, LLC

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