Federal District Court Grants Jeffrey Plotkin's Motion to Make a Secondary Distribution to Eligible Claimants from the SEC v. McAfee, Inc. Fair Fund

Dec 29, 2010, 10:00 ET from Day Pitney LLP

NEW YORK, Dec. 29, 2010 /PRNewswire/ -- On December 21, 2010, the U.S. District Court for the Northern District of California granted the motion of Day Pitney LLP partner Jeffrey Plotkin, in his capacity as Distribution Agent for the Fair Fund established in SEC v. McAfee, Inc. (f/k/a Network Associates, Inc.), to make a secondary distribution to eligible claimants.  

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 Jeffrey Plotkin as Distribution Agent to prepare and implement plans for the distribution of the Fair Fund to investors harmed by the scheme.

In February 2010, at the direction of the Distribution Agent, a primary distribution of $67,230,000 was made to eligible claimants on a pro rata basis. The Distribution Agent and claims administrator, Garden City Group, Inc., then made extensive efforts to complete the distribution of the Fair Fund in consultation with the SEC. By late 2010, the Distribution Agent and claims administrator had successfully distributed in excess of $65,700,000 to eligible claimants and exhausted all reasonable efforts to complete the primary distribution of the Fair Fund. As those efforts culminated, the Distribution Agent and claims administrator estimated that sufficient funds remained to effect a meaningful secondary distribution in an estimated amount of approximately $1.9 million.

The secondary distribution approved by the court 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. Mr. Plotkin expects to distribute these funds to eligible claimants in or about February 2011.

Day Pitney LLP partner Helen Harris serves as counsel to the Distribution Agent.  

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