Lowenstein Sandler LLP Announces Class Action Settlement Involving All Persons who Purchased MBI Common Stock

SACRAMENTO, Calif., March 12, 2019 /PRNewswire/ --

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF CALIFORNIA

TO:      All persons or entities who or which purchased or otherwise acquired MBI common stock directly in or traceable to the Company's secondary offering pursuant to MBI's Form S-1 Registration Statement, dated May 16, 2014, and its Prospectus dated June 5, 2014, and were damaged thereby (the "EY Settlement Class").

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 an Order of the United States District Court for the Eastern District of California, that the above-captioned litigation (the "Action") has been certified as a class action with respect to claims asserted against Ernst & Young LLP ("EY" or the "Settling Defendant") on behalf of the class, except for certain persons and entities who are excluded from the Settlement Class by definition as set forth in the full printed Notice of (I) Pendency of Class Action and Certification of Settlement Class; (II) Proposed Settlement; (III) Settlement Hearing; and (IV) Motion for an Award of Attorneys' Fees and Reimbursement of Litigation Expenses (the "Notice").

YOU ARE ALSO NOTIFIED that the Court-appointed Lead Plaintiffs, Special Situations Fund III QP, L.P. and Special Situations Cayman Fund, L.P. ("Lead Plaintiffs" or "The Funds"), on behalf of themselves and the other members of the EY Settlement Class, have reached a proposed settlement of the Action with Defendant Ernst & Young LLP ("EY" or the "Settling Defendant," and together with Lead Plaintiffs, the "Settling Parties") for $775,000 in cash (the "EY Settlement").  The EY Settlement, if approved, will resolve all claims in the above-captioned securities class action (the "Action") pending in the United States District Court for the Eastern District of California (the "Court") against EY.  The claims asserted against EY are the only remaining claims in this Action and, therefore, if the EY Settlement is approved by the Court, the Action will be completely resolved subject to any appeals.¹

A hearing will be held on July 11, 2019, at 2:00 p.m., before the Honorable Morrison C. England, Jr., at the United States District Court for the Eastern District of California, Robert T. Matsui United States Court House, Courtroom 7, 501 I Street, Sacramento, California, 95814, to determine (i) whether the proposed Settlement should be approved as fair, reasonable, and adequate; (ii) whether the Action should be dismissed with prejudice against the Settling Defendants, and the Releases specified and described in the Stipulation and Agreement of Settlement dated January 14, 2019 (and in the Notice) should be granted; and (ii) whether Lead Counsel's application for an award of attorneys' fees and reimbursement of Litigation Expenses should be approved.

If you are a member of the EY Settlement Class, your rights will be affected by the pending Action and the EY Settlement, and you may be entitled to share in the Settlement Fund.  If you have not yet received the Notice and Claim Form, you may obtain copies of these documents by contacting the Claims Administrator at MBI EY Securities Litigation, c/o Epiq, P.O. Box 3219, Portland, OR 97208-3219, by toll-free phone at (855) 907-3227, or by email at [email protected].  Copies of the Notice and Claim Form can also be downloaded from www.MBISecuritiesLitigationSettlement.com. 

If you are a member of the EY Settlement Class and previously submitted a Claim Form in connection with the Secondary Offering Class in the previously announced MBI Settlement in this Action, you do not need to submit a Claim Form again.  Unless you properly exclude yourself from the EY Settlement Class, your earlier Claim Form will be considered for participation in this Settlement.  If you are an EY Settlement Class Member and DID NOT submit a Claim Form in connection with the MBI Settlement, however, YOU MUST SUBMIT A CLAIM FORM, postmarked no later than May 6, 2019, to be eligible to share in the distribution of the Net Settlement Fund (as defined in the Stipulation and the Notice).  This is the only way to now be eligible to receive a payment from the Net Settlement Fund.  If you are an EY Settlement Class Member and you remain in the EY Settlement Class, you will be bound by the EY Settlement as approved by the Court and you will give up any Released Lead Plaintiffs' Claims (defined in ¶ 43 of the Notice) that you have against EY and EY's Releasees (defined in ¶ 44 of the Notice), so it is in your interest to submit a Claim Form.  If you are a member of the EY Settlement Class and have not previously submitted a Claim Form in connection with the Secondary Offering Class in the previously announced MBI Settlement in this Action and do not submit a Claim Form now, you will not be eligible to share in the distribution of the net proceeds of the EY Settlement.  You will, however, nevertheless be bound by any judgments or orders entered by the Court in the Action.

If you are a member of the EY Settlement Class and wish to exclude yourself from the EY Settlement Class, you must submit a request for exclusion such that it is received no later than June 27, 2019, in accordance with the instructions set forth in the Notice.  If you properly exclude yourself from the Settlement Class, you will not be bound by any judgments or orders entered by the Court in the Action and you will not be eligible to share in the proceeds of the Settlement. 

Any objections to the proposed EY Settlement and/or Lead Counsel's motion for attorneys' fees and reimbursement of litigation expenses, must be filed with the Court and delivered to Lead Counsel and EY's Counsel such that they are received no later than June 27, 2019, in accordance with the instructions set forth in the Notice.

Please do not contact the Court, the Clerk's office, EY, MBI, or EY's counsel regarding this notice.  All questions about this notice, the proposed Settlement, or your eligibility to participate in the Settlement should be directed to Lead Counsel or the Claims Administrator.

Requests for the Notice and Claim Form should be made to:

MBI EY Securities Litigation
c/o Epiq
P.O. Box 3219
Portland, OR 97208-3219
(855) 907-3227
www.MBISecuritiesLitigationSettlement.com

Inquiries, other than requests for the Notice and Claim Form, should be made to Lead Counsel:

LOWENSTEIN SANDLER LLP
Lawrence M. Rolnick, Esq.
1251 Avenue of the Americas
New York, NY 10020
(212) 262-6700

¹ The current proposed settlement is in addition to another partial settlement -- the "MBI Settlement" -- previously approved by the Court, resulting in an aggregate recovery of $12 million, $3,869,616 of which was allocated and distributed (net of fees and expenses) to members of the EY Settlement Class.  If approved, the proposed EY Settlement will constitute an additional and supplemental distribution of settlement funds to the EY Settlement Class.

SOURCE United States District Court for the Eastern District of California

Related Links

http://www.mbisecuritieslitigationsettlement.com