RADNOR, Pa., July 24, 2015 /PRNewswire/ -- LEGAL NOTICE—If you were charged by and still owe, or if you paid, Regions Bank, and/or others acting on their behalf between August 1, 2009 and May 8, 2015 for a lender-placed flood insurance policy for your residential property, you may be entitled to benefits under a class action settlement.
THIS NOTICE MAY AFFECT YOUR LEGAL RIGHTS. PLEASE READ IT CAREFULLY. A FEDERAL COURT AUTHORIZED THIS NOTICE. THIS IS NOT A SOLICITATION FROM A LAWYER.
WHAT IS THIS CASE ABOUT?
A proposed settlement of a putative class action against Regions Financial Corp., Regions Bank, and Regions Insurance Inc. ("Regions" or "Defendants") has been reached in the United States District Court for the Eastern District of Arkansas, in the action Mahan v. Regions Financial Corp., No. 4:14-cv-321-JM.
Plaintiff Gary Mahan ("Plaintiff") alleges, among other things, that when a borrower was required to have flood insurance pursuant to a residential mortgage or home equity loan or line of credit, and the borrower failed to provide evidence of acceptable coverage, Defendants would obtain Lender-placed flood insurance policies ("LPFI Policies") in a manner that enabled Regions to receive unauthorized benefits from the lender-placed flood insurer, whose affiliates issued the LPFI Policies. Plaintiff also alleges that the way in which the LPFI Policies were obtained and placed caused the LPFI charges to be excessive. Defendants deny any wrongdoing and assert that their actions are fully authorized under the terms of the loans and by law. There has been no court decision on the merits and no finding that the Defendants committed any wrongdoing.
WHAT DOES THE PROPOSED SETTLEMENT PROVIDE?
As part of the Settlement, Defendants have agreed to provide settlement payments to Settlement Class members from the $612,500.00 Settlement Fund established under the terms of the Settlement. Each Settlement Class member will be entitled to a Settlement Payment in the amount of the percentage of his or her Individual Net Premium relative to the Total Net Premium charged to all Settlement Class members, as those terms are defined in the settlement. Settlement Class members do not need to submit a claim form in order to receive a Settlement Payment. Attorneys' fees and expenses for the lawyers representing the Settlement Class, a service award to the Plaintiff, and costs of administering the Settlement will also be paid out of the Settlement Fund. Defendants also have agreed to additional relief from which you may benefit, including certain commitments regarding placement of LPFI Policies. For more details regarding the Settlement Payments, the Settlement Fund, and other benefits provided under the Settlement, you may go to www.regionsfloodsettlement.com.
ALL SETTLEMENT PAYMENTS ARE CONTINGENT UPON THE COURT ENTERING THE FINAL APPROVAL ORDER AND THE EFFECTIVE DATE OF THE SETTLEMENT OCCURRING.
WHAT ARE MY OPTIONS?
If you remain a Settlement Class member, and the Court approves the Settlement, enters the Final Approval Order and the Effective Date occurs, you will be legally bound by its terms and will release your claims against the Defendants, as provided by the Settlement. If you want to exclude yourself from this Settlement, you must send a written request specifically stating that you wish to opt out from the settlement to Mahan v. Regions Financial Corp. Settlement Administrator, P.O. Box 40007, College Station, Texas 77842-4007 postmarked no later than September 1, 2015. Mass or class opt outs are not allowed. If you do not opt out, you will not be allowed to commence or continue any action, including, without limitation, any lawsuit or arbitration, against any Released Party based on any Released Claim, as defined in the settlement.
If you remain a Settlement Class member, you may object to the settlement by writing to the Court and sending copies to counsel postmarked no later than September 1, 2015.
Full details on how to object to or opt out of the Settlement can be found at www.regionsfloodsettlement.com.
The Court will hold a Final Approval Hearing on October 1, 2015 at 9:30 a.m., to consider whether to approve the Settlement, award attorneys' fees of up to $204,166.50 plus reasonable costs to counsel for the Settlement Class, and a service award of up to $5,000 to the Plaintiff for his service to the Settlement Class. Any attorneys' fees and expenses or service award approved by the Court will be paid from the Settlement Fund.
You or your lawyer may ask to appear and speak at the hearing at your own expense, but do not have to.
The Final Approval Hearing may be moved to a different date or time. Any changes to the date or time of the Final Approval hearing will be posted at www.regionsfloodsettlement.com.
This notice provides only a summary of the terms of the Settlement. A more detailed description of the Settlement is available at www.regionsfloodsettlement.com. You may also contact the Settlement Administrator at 1-888-858-6298 to request a detailed Class Notice.
SOURCE Kessler Topaz Meltzer & Check, LLP