Lead Counsel Announce Proposed Settlement With Defendant Derek Palaschuk In The In Re Longtop Financial Technologies Limited Securities Litigation

Jul 20, 2015, 09:00 ET from Kessler Topaz Meltzer & Check, LLP

NEW YORK, July 20, 2015 /PRNewswire/ -- The following statement is being issued by Kessler Topaz Meltzer & Check, LLP regarding the In re Longtop Financial Technologies Limited Securities Litigation.

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

IN RE LONGTOP FINANCIAL TECHNOLOGIES LIMITED SECURITIES LITIGATION
Civil Action No. 11-cv-3658-SAS

SUMMARY NOTICE TO CLASS MEMBERS OF PROPOSED $2.3 MILLION SETTLEMENT WITH DEFENDANT DEREK PALASCHUK, SETTLEMENT FAIRNESS HEARING, AND MOTION FOR REIMBURSEMENT OF LITIGATION EXPENSES

To: All persons and entities who purchased or otherwise acquired Longtop Financial Technologies, Ltd. ("Longtop") American Depositary Shares ("ADSs") during the period from February 21, 2008 through May 17, 2011, inclusive, and were damaged thereby (the "Class").  Certain Persons are excluded from the definition of the Class as set forth in detail in the Stipulation and Agreement of Settlement dated June 18, 2015 (the "Stipulation").

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 Rule 23 of the Federal Rules of Civil Procedure and Order of the United States District Court for the Southern District of New York, that a settlement of the above-captioned litigation ("Action") has been proposed with defendant Derek Palaschuk ("Palaschuk") for $2.3 million in cash ("Settlement").  A hearing will be held before the Honorable Shira A. Scheindlin in the United States District Court for the Southern District of New York, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 15C, New York, NY 10007-1312 at 2:30 p.m., on October 13, 2015 to determine whether:  (1) the proposed Settlement should be approved by the Court as fair, reasonable and adequate; (2) the Action should be dismissed with prejudice against Palaschuk, and the releases specified and described in the Stipulation should be granted; (3) the proposed Plan of Allocation should be approved; (4) Lead Counsel's application for reimbursement of expenses should be approved; and (5) Lead Plaintiffs' application for reimbursement of costs and expenses (including lost wages) in connection with their representation of the Class should be approved.

The proposed Settlement follows the November 2014 trial against Palaschuk, whereby a jury found Palaschuk liable for violating Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") between February 10, 2010 and May 17, 2011.  Further, as required under the Exchange Act, the jury apportioned liability for total damages determined at trial amongst the three named defendants in the Action as follows:  Longtop (49%), Wai Chau Lin a/k/a Lian Weizhou ("Lin") (50%) and Palaschuk (1%).  In addition to the jury verdict against Palaschuk, the Court previously entered a default judgment against Longtop and Lin, for violating Sections 10(b) and 20(a) of the Exchange Act between February 21, 2008 and May 17, 2011.  Pursuant to the default judgment, Longtop and Lin are jointly and severally liable to Lead Plaintiffs and the Class for damages totaling $882,300,000 plus 9% interest on such amount from February 21, 2008, through the date of payment.  This amount is the maximum amount of damages available to the Class.  Lead Plaintiffs' efforts to collect this judgment remain ongoing; however, given the complexities of the international laws implicated, Longtop's corporate structure and its potential lack of financial resources, the likelihood of Lead Plaintiffs collecting this judgment or any portion thereof is uncertain.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED BY THE PENDING ACTION AND YOU MAY BE ENTITLED TO SHARE IN THE PROPOSED SETTLEMENT.  A detailed Notice to Class Members of Proposed $2.3 Million Settlement with Defendant Derek Palaschuk, Settlement Fairness Hearing, and Motion for Reimbursement of Litigation Expense ("Notice") and Proof of Claim and Release Form ("Claim Form") are currently being mailed to Class Members explaining Class Members' rights in connection with the Settlement and the process for submitting a claim.  If you have not received a Notice and Claim Form, you may obtain copies of these documents, and other information about the Settlement and the Action, at www.longtopclassaction.com or by calling (855) 382-6454.

In order to be eligible to share in the Settlement, you must submit a valid Claim Form postmarked no later than November 10, 2015, to Longtop Financial Technologies Securities Litigation, c/o GCG, P.O. Box 10149, Dublin, OH  43017-3149.  Please Note:  As discussed in the previously disseminated Notice of Pendency of Class Action dated July 29, 2014 ("Class Notice"), at trial, Lead Plaintiffs pursued claims based on Palaschuk's alleged misrepresentations during the period February 10, 2010 through May 17, 2011 (the "Trial Class Period").  Accordingly, only those Class Members who purchased or otherwise acquired Longtop ADS during the Trial Class Period and submit valid Claim Forms will be potentially eligible to share in the Settlement.  If you are a Class Member and do not submit a valid Claim Form, you will not be eligible to share in the distribution of the net proceeds of the Settlement but you will nevertheless be bound by any judgment or orders entered by the Court in this Action.

If you previously submitted a request for exclusion from the Class in connection with the Class Notice and you wish to remain excluded from the Class, no further action is required.  If you previously submitted a request for exclusion from the Class in connection with the Class Notice and you want to opt-back into the Class and be potentially eligible to receive a payment from the Settlement, you must submit a request to opt-back into the Class in writing such that it is received no later than September 22, 2015, in accordance with the instructions set forth in the Notice.  If you previously submitted a request for exclusion from the Class in connection with the Class Notice and do not opt-back into the Class in accordance with the instructions set forth in the Notice, you will not be bound by any judgment or orders entered by the Court in the Action and you will not be eligible to share in the net proceeds of the Settlement.

If you are a Class Member, you have the right to object to the Settlement, the Plan of Allocation, and/or the requests by Lead Counsel and Lead Plaintiffs for reimbursement of expenses.  Any objections must be filed with the Court and delivered to Lead Counsel and counsel for the Settling Defendant such that they are received no later than September 22, 2015, in accordance with the instructions set forth in the Notice.

Inquiries, other than requests for the Notice and Claim Form, may be made to Lead Counsel: Gregory M. Castaldo and Kimberly A. Justice of Kessler Topaz Meltzer & Check, LLP, 280 King of Prussia Road, Radnor, PA  19087, (610) 667-7706, info@ktmc.com.  Further information may also be obtained by directing your inquiry in writing to the Claims Administrator, GCG, at the address and phone number listed above.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE.

Dated: July 20, 2015

BY ORDER OF THE COURT:
United States District Court
For the Southern District of New York

 

SOURCE Kessler Topaz Meltzer & Check, LLP