NEW YORK, Feb. 10, 2011 /PRNewswire/ -- In a December 29, 2010 press release, Day Pitney LLP partner Jeffrey Plotkin, the Distribution Agent for the Fair Fund in SEC v. McAfee, Inc. (f/k/a Network Associates, Inc.), announced that he expected to commence a secondary distribution to eligible claimants of approximately $1.9 million in or about February 2011. Mr. Plotkin has determined to postpone the secondary distribution until the Fair Fund's anticipated receipt of a federal income tax refund that will supplement the funds available for a secondary distribution. Mr. Plotkin anticipates receipt of the tax refund by the summer of 2011.
The SEC v. McAfee, Inc. Fair Fund is comprised of payments made to the court by various entities and persons to settle SEC civil and administrative actions arising from McAfee, Inc.'s fraudulent scheme to overstate its revenue and earnings by hundreds of millions of dollars during the period of 1998 through 2000. The court appointed Mr. Plotkin as Distribution Agent to prepare and implement plans for the distribution of the Fair Fund to investors harmed by the scheme. At his direction, in early 2010, a primary distribution of $67,230,000 was made to eligible claimants on a pro rata basis. By late 2010, the Distribution Agent and claims administrator had successfully distributed in excess of $65,700,000 and exhausted all reasonable efforts to complete the primary distribution. Thereafter, they estimated that sufficient funds remained to effect a meaningful secondary distribution of approximately $1.9 million. In late December 2010, the U.S. District Court for the Northern District of California granted Mr. Plotkin's motion for a secondary distribution.
The secondary distribution will proceed on a pro rata basis to eligible claimants who successfully received a distribution in the primary distribution and whose pro rata share in the secondary distribution would result in a payment equal to or in excess of a minimum distribution amount of $10.00.
Day Pitney LLP partner Helen Harris serves as counsel to the Distribution Agent.
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