NEW YORK, Feb. 19, 2016 /PRNewswire/ --
If you had a certificate for lender placed hazard, wind, and/or flood insurance ("LPI") applicable to your property issued between January 1, 2006 through January 14, 2016, inclusive of those dates ("Class Period"), pursuant to a Lender-Placed Insurance Master policy issued to Litton Loan Servicing LP ("Litton") by the AMIG Defendants (as defined in the Settlement Agreement), one of their agents, Affiliates, or any other person or entity acting on behalf of the AMIG Defendants, and were charged by Litton for LPI, 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 ("Settlement") has been reached with defendant American Modern Home Insurance Group, Inc. and related companies ("AMIG Defendants") only, in a putative class action pending in the United States District Court for the Southern District of New York captioned Lyons, et al., v. Litton Loan Servicing LP, et al., No. 1:13-cv-00513.
Plaintiffs Jimmy Lyons, Jacqueline Lyons and Sheila Heard ("Plaintiffs") allege, among other things, that when a borrower was required to have insurance pursuant to a residential mortgage, and the borrower failed to provide evidence of acceptable coverage, Litton would obtain lender-placed insurance ("LPI") from the AMIG Defendants covering the property in a manner that enabled Litton to receive unauthorized benefits from the AMIG Defendants. Plaintiffs also allege that the way in which LPI was obtained and placed caused the LPI charges and the amount of coverage to be excessive. AMIG Defendants deny any wrongdoing and assert that their actions were 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 AMIG Defendants committed any wrongdoing.
WHAT DOES THE PROPOSED SETTLEMENT PROVIDE?
As part of the Settlement, AMIG Defendants have agreed to deposit $4,121,000 into a Settlement Fund established under the terms of the Settlement Agreement. Each Settlement Class Member will be entitled to a pro rata share of the Net Settlement Fund in proportion to their Individual Net Premium over the Total Net Premium charged to all Settlement Class Members, after accounting for Minimum Level Payment Recipients, as those terms are defined in the Settlement Agreement, with a Minimum Level Payment of $2.00. Additionally, second settlement payments may be issued after the first settlement payments if the balance remaining in the Net Settlement Fund exceeds a certain level. Settlement Class Members do not need to submit a claim form in order to receive a settlement payment. Attorneys' fees and costs for the lawyers representing the Settlement Class, service awards to the Plaintiffs, and the costs of administering the Settlement will also be paid out of the Settlement Fund. For more details regarding the Settlement Payment, the Settlement Fund, and other aspects of the Settlement, you may go to www.LyonsInsurerFPIsettlement.com.
ALL SETTLEMENT PAYMENTS ARE CONTINGENT UPON THE COURT ENTERING THE FINAL APPROVAL ORDER AND THE SETTLEMENT EFFECTIVE DATE 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 the Settlement terms and will release your claims against AMIG Defendants and their Affiliates and agents, including Southwest Business Corp., as provided by the Settlement Agreement. 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 Lyons v. Litton Loan Servicing LP., c/o A.B. Data Ltd., PO Box 170500, Milwaukee WI 53217 postmarked no later than April 12, 2016. 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 Agreement.
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 April 12, 2016.
Full details on how to object to or opt out of the Settlement can be found at www.LyonsInsurerFPIsettlement.com.
The Court will hold a Final Approval Hearing on April 22, 2016, at 10:00 a.m., in Courtroom 1306, to consider whether to approve the Settlement, award attorneys' fees of up to one-third of the Settlement Fund, plus reasonable costs to counsel for the Settlement Class, and service awards of up to $2,500 for the Lyons, jointly, and to Sheila Heard, individually, for their service to the Settlement Class. Any attorneys' fees and expenses and service awards 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 you do not have to appear.
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.LyonsInsurerFPIsettlement.com.
This Notice provides only a summary of the terms of the Settlement. A more detailed description of the Settlement is available at www.LyonsInsurerFPIsettlement.com.
SOURCE Kessler Topaz Meltzer & Check, LLP; Berger & Montague, P.C.; Lowey Dannenberg Cohen & Hart, P.C.