Legal Notice In Re Tennison v. Marion Bass Securities Corp.

EDWARDSVILLE, Ill., Nov. 22, 2016 /PRNewswire/ -- The following release was issued by RG/2 Claims Administration LLC, as Claims Administrator, on behalf of Motley Rice LLC

William Tennison, individually and on behalf of all others similarly situated, Plaintiffs, v.     MARION BASS SECURITIES CORPORATION, et al. Defendants.

IN THE CIRCUIT COURT, THIRD JUDICIAL CIRCUIT,
MADISON COUNTY, ILLINOIS
Cause No. 01-L-000457

NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

TO:  ALL OF THOSE PERSONS OR ENTITIES WHO EVER PURCHASED, OWNED, OR OTHERWISE ACQUIRED ANY OF THE REVENUE BONDS ISSUED BETWEEN FEBRUARY 1, 1996 AND DECEMBER 11, 1998 BY STATE OR MUNICIPAL ECONOMIC DEVELOPMENT AGENCIES FOR THE CITIES OF:  LAWRENCE, INDIANA; PRINCETON, WISCONSIN; MANITOWOC, WISCONSIN; GILLETT, WISCONSIN; WAUTOMA, WISCONSIN; RIVERVIEW, MICHIGAN; BANGOR, MICHIGAN; AND REDFORD, MICHIGAN, WITH THE MALACHI CORP., INC., AS OBLIGOR ("THE BONDS").

PLEASE READ THIS COURT-AUTHORIZED NOTICE CAREFULLY.  THIS IS NOT A SOLICITATION.

The purpose of this Notice is to inform you of a proposed Settlement of this class action "Litigation" between Plaintiff William Tennison, individually and on behalf of the above "Settlement Class," and Defendant Wells Fargo Bank, N.A. relating to the Bonds.  A "Final Hearing" will be held in the Circuit Court of Madison County, Illinois (the "Court") to consider the fairness, reasonableness, and adequacy of the Settlement.  Your legal rights may be affected by this Notice and the proceedings in the Litigation, whether or not you act. 

Under the proposed Settlement, Wells Fargo will pay or distribute a "WF Contribution" consisting of (1) a $6,500,000 cash payment, and (2) $800,000 in "Previously Collected Funds" that Wells Fargo received, in its capacity as indenture trustee, for the Bondholders, net of its expenses and fees.  The WF Contribution and the $525,000 paid in prior settlements by other defendants ("Additional Defendants' Contribution") will together comprise the "Gross Settlement Fund."  At the Final Hearing, Class Counsel will request the Court to approve payment of (a) a "Fee and Expense Award" to Class Counsel not to exceed 25% of the Gross Settlement Fund plus reimbursement of out-of-pocket litigation expenses up to $785,000, which includes consulting fees of $40,000 to a potential Settlement Class member for more than 15 years of services during the Litigation, (b) "Incentive Awards" not to exceed $5,000 to each of three present and former class representatives, and (c) all "Settlement Costs" incurred since the Court's preliminary approval of the Settlement. 

If the Court grants final approval, and after payment of the Fee and Expense Award, Incentive Awards, and all Settlement Costs, the remaining "Net Settlement Fund" will be distributed to eligible Class Members.  First, Wells Fargo will distribute the Previously Collected Funds to Bondholders as of the date of final approval, pursuant to a prior federal court order in a separate "Receivership Action" involving the Bonds.  Second, the "Settlement Administrator" will distribute the WF Contribution and the Additional Defendants' Contribution pursuant to a "Distribution Plan" proposed by Class Counsel and attached to the Settlement Agreement, subject to Court approval.

The Court will conduct a Final Hearing on February 21, 2017, at 1:30 p.m. to determine, among other things:  (1) whether the Settlement is fair, reasonable, and adequate; (2) whether the proposed Settlement should be finally approved; and (3) whether the Litigation and the claims of the Settlement Class against Wells Fargo should be dismissed with prejudice pursuant to the Settlement.

If you want to be excluded from the Settlement, you must sign and mail a written "Opt Out Request" requesting your exclusion and provide (1) your name, mail and email addresses, and telephone number, and (2) the date(s), amounts, and types of Bonds you purchased and the date(s), if any, that you sold any Bonds.  Your exclusion request must be postmarked no later than January 31, 2017.  If you submit an Opt Out Request, you will not receive any Settlement funds. 

If you do not opt out, you can mail a signed, written "Objection" to the Settlement terms, which must be postmarked no later than January 31, 2017.  The Objection must include (1) your name, mail and email addresses, and telephone number, (2) the date(s), amounts, and types of Bonds you purchased and the date(s), if any, that you sold any Bonds, and (3) the basis or reason for your Objection, including any legal support or evidence (including witnesses) that the Court should consider.

If you want to share in the potential Distribution to Class Members, you must fill out, sign, and return the written Proof of Claim Form available at http://www.kellermanmunicipalbondsettlement.com to the Settlement Administrator, postmarked no later than April 21, 2017.  If you do not timely submit a Proof of Claim Form, you will not share in the Distribution to Class Members, but will still be bound by the Settlement terms, including the release of all claims against Wells Fargo.

Note:  You cannot submit an Opt Out Request, a Proof of Claim Form, or an Objection by telephone, facsimile or email.  Opt Out Requests must be mailed to Class Counsel and Wells Fargo's counsel.  Objections must be mailed to the Court, Class Counsel, and Wells Fargo's counsel.  Proof of Claim Forms must be mailed to the Settlement Administrator.  Contact information for each is listed below.

You are not required to attend the Final Hearing, but can do so in person or through a lawyer you hire at your expense.  If you or your lawyer wish to speak, you must, no later than February 10, 2017, mail a written notice of intent to appear to the Court, Class Counsel, and counsel for Wells Fargo.  The notice must include your name, address, and telephone number, and the number of Bonds you purchased, owned, or otherwise acquired.

If you want more information regarding anything in this Notice, you may consult http://www.kellermanmunicipalbondsettlement.com, contact the Settlement Administrator at (866) 742-4955 or [email protected], or contact Class Counsel listed above.

DO NOT CONTACT THE COURT OR CLERK REGARDING THIS NOTICE, AS THEY WILL NOT BE ABLE TO ANSWER YOUR QUESTIONS.

DATED: November 22, 2016    
Pursuant to Order of the Court

SOURCE:  William Norton, Esq., Motley Rice LLC, 28 Bridgeside Blvd., Mt. Pleasant, SC  29464, Telephone 843-216-9195, [email protected] and Tina Chiango, RG/2 Claims Administration LLC, P.O. Box 59479, Philadelphia, PA 19102-9479, Telephone 866-742-4955, Facsimile 215-979-1695, [email protected]

SOURCE RG/2 Claims Administration LLC