Summary Notice Of Distribution Of Grifco Fair Fund

HOUSTON, June 3, 2013 /PRNewswire/ --

LEGAL NOTICE

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS

SEC v. GOLDEN STATE EQUITY INVESTORS, INC.,
CASE NO. 4:09cv1307 (MH)

IF YOU PURCHASED GRIFCO COMMON STOCK DURING THE PERIOD FROM JANUARY 1, 2005 THROUGH DECEMBER 14, 2006, YOU MAY BE ENTITLED TO A MONETARY PAYMENT FROM A FAIR FUND DISTRIBUTION.

On April 30, 2009, the Securities and Exchange Commission ("SEC") filed its Complaint in this action alleging that Golden State Equity Investors, Inc. ("Golden State") violated the registration provisions of the Securities Act of 1933 ("Securities Act") through the offer and sale of Grifco International, Inc. ("Grifco") securities in unregistered transactions.  On May 8, 2009, the United States District Court for the Southern District of Texas (the "Court") entered a Final Judgment against Golden State, to which Golden State consented without admitting or denying the allegations in the SEC's Complaint.  Pursuant to the Final Judgment, Golden State paid approximately $1,577,579 to the Court that was deposited into an interest bearing account with the Court Registry Investment System ("CRIS"). On November 2, 2012, RG/2 Claims Administration, LLC ("RG/2") was appointed to serve as Distribution Agent for the Fair Fund.

On March 26, 2013, the Court issued an Order approving the Distribution Plan in this matter.  The Distribution Plan provides that the funds held by the Clerk of the Court relating to the matter, totaling approximately $1.5 million ("Grifco Fair Fund"), shall be distributed for the benefit of injured investors who purchased Grifco common stock between January 1, 2005 and December 14, 2006, and suffered a Recognized Loss, as defined by the Distribution Plan.

WHO IS ELIGIBLE FOR COMPENSATION?

You may be eligible for compensation from the Grifco Fair Fund if you purchased Grifco common stock between January 1, 2005 and December 14, 2006 (collectively hereafter "Recovery Period"), and suffered a Recognized Loss as defined by the Distribution Plan.  If the shares you purchased were:

(a)  Sold on or before June 12, 2005, the Recognized Loss (or Gain) per Share is zero (0);

(b)  Sold between June 13, 2005 and December 14, 2006, the Recognized Loss (or Gain) per Share is equal to the purchase price less the sales price;

(c)  Retained as of December 14, 2006, the Recognized Loss (or Gain) per Share is equal to the purchase price less $0.048 (the closing price on December 14, 2006).

For investors who held shares of Grifco at the beginning of the Recovery Period or made multiple purchases or sales during the Recovery Period, the first-in, first-out ("FIFO") method will be applied to such holdings, purchases and sales, as defined in the Distribution Plan.  The Eligible Loss Amount shall be determined by aggregating the Recognized Loss (or Gain) per Share for all transactions during the Recovery Period.  Payments to Eligible Claimants will reflect their pro rata share of the Available Distribution. An investor will not receive a distribution that exceeds his or her overall net loss or whose pro rata share results in a payment of less than $10.

HOW TO OBTAIN COMPENSATION

If you believe you are eligible to share in the Grifco Fair Fund, you must submit a completed Proof of Claim Form and supporting documentation to the Distribution Agent postmarked no later than October 1, 2013.  To obtain the Proof of Claim Form visit www.rg2claims.com/grifco.html or www.sec.gov/divisions/enforce/claims/grifco.htm or call (866) 742-4955.  Completed claims should be mailed to Grifco Fair Fund Distribution Agent, c/o RG/2 Claims Administration LLC, P.O. Box 59479, Philadelphia, PA 19102-9479.

If you submit a timely, eligible claim, your recovery, if any, will depend on a number of factors, including but not limited to, the number and dollar amount of valid claims submitted, and the amount and timing of your purchases and sales of Grifco common stock. The Grifco Fair Fund will be distributed pursuant to the orders of the Court.

CLAIM FILING DEADLINE

All Proofs of Claim Forms and supporting documentation must be submitted to the Distribution Agent and postmarked no later than October 1, 2013.

ADDITIONAL INFORMATION

Additional information, including copies of the Proof of Claim Form may be found at
www.rg2claims.com/grifco.html or www.sec.gov/divisions/enforce/claims/grifco.htm. You can also obtain additional information or request copies of forms by calling (866) 742-4955.

Visit: www.rg2claims.com/grifco.html Call:  (866) 742-4955

Media Contact: 
RG/2 Claims Administration, LLC
Grifco Fair Funds Distribution Agent     
Tel. (866) 742-4955

SOURCE RG/2 Claims Administration LLC