Settlements involving those who, directly or through an agent, entered into Stock Loan Transactions with Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, and/or UBS in the U.S. from January 7, 2009 through August 22, 2023
NEW YORK, April 15, 2024 /PRNewswire/ --
NOTICE OF PROPOSED CLASS ACTION SETTLEMENTS, FAIRNESS HEARING AND CLASS MEMBERS' RIGHTS
TO: ALL PERSONS WHO, DIRECTLY OR THROUGH AN AGENT, ENTERED INTO STOCK LOAN TRANSACTIONS WITH THE PRIME BROKER DEFENDANTS, DIRECT OR INDIRECT PARENTS, SUBSIDIARIES, OR DIVISIONS OF THE PRIME BROKER DEFENDANTS IN THE UNITED STATES FROM JANUARY 7, 2009 THROUGH AUGUST 22, 2023, INCLUSIVE.
The purpose of this Notice is to inform you of two separate proposed settlements in this Action (combined, the "Settlements"). The first settlement agreement is with the "Credit Suisse Settling Defendants," which are: Credit Suisse Group AG, Credit Suisse AG; Credit Suisse Securities (USA) LLC; Credit Suisse First Boston Next Fund, Inc.; and Credit Suisse Prime Securities Services (USA) LLC. The "Settlement Class Period" for the Credit Suisse Settlement Agreement is January 7, 2009 through January 20, 2022, inclusive.
The second settlement is with the "Newly Settling Defendants", which are: Goldman Sachs & Co. LLC; Goldman Sachs Execution & Clearing, L.P.; J.P. Morgan Securities LLC; J.P. Morgan Prime, Inc.; J.P. Morgan Strategic Securities Lending Corp.; JPMorgan Chase Bank, N.A.; Morgan Stanley; Morgan Stanley Capital Management, LLC; Morgan Stanley & Co. LLC; Morgan Stanley Distribution, Inc.; Prime Dealer Services Corp.; Strategic Investments I, Inc.; UBS AG; UBS Americas Inc.; UBS Securities LLC; UBS Financial Services Inc.; EquiLend LLC; EquiLend Europe Limited; and EquiLend Holdings LLC. The "Settlement Class Period" for the New Settlement Agreement is January 7, 2009 through August 22, 2023, inclusive.
Plaintiffs allege that Defendants, the dominant intermediary banks in the U.S. stock loan market, conspired to block and boycott new offerings that would have increased competition and improved the efficiency and transparency of the market, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1. The purpose and effect of this alleged conspiracy was to maintain supracompetitive "spreads" between beneficial owners of stock who lend their stock out for a fee and borrowers of stock, who generally sell the borrowed shares as part of a short transaction. As a result, Plaintiffs allege Class Members were damaged by receiving lower fees for lending shares of stock and/or paying higher fees for borrowing stock than they would have if Defendants had not conspired to block efficient new developments in the market. The lawsuit also alleges that Defendants were unjustly enriched under common law. All Defendants deny they did anything wrong.
The Court has preliminarily approved the Settlements with the Settling Defendants who have agreed to pay a total of $580,008,750. Class Members who or which do not opt out of the Settlements will release their claims against all Settling Defendants in the Action.
Your Options
If you are a Settlement Class Member of either or both Settlement Classes and do not exclude yourself, you are eligible to file a Claim Form to receive your share of money. Claim Forms must be submitted online at the Settlement Website on or before 11:59 p.m. Eastern time on July 8, 2024 OR postmarked by July 8, 2024 and mailed to: Stock Loan Transactions Settlement, c/o Epiq, P.O. Box 3546, Portland, OR 97208-3546. If you do not file a Claim Form, you will not receive any payments under the Settlements.
If you are a Settlement Class Member and do not want to remain in either or both Settlement Classes, and do not want a payment from the Settlements, then you must take steps to exclude yourself from the Settlements. If you wish to exclude yourself from either or both of the Settlement Classes, you must submit by U.S. first class mail or deliver a written request to the Settlement Administrator so that it is received by June 7, 2024. If you exclude yourself from a Settlement, you will not be bound by that Settlement, if approved, or that Settlement's release, and you will not be eligible for any payment from that Settlement.
If you are a Class Member and you do not exclude yourself, you can tell the Court what you think about the Settlements. You can object to all or any part of the Settlements, Plans of Allocation, and/or application for attorneys' fees, reimbursement of litigation expenses and costs, or plaintiff service awards. If you wish to object to either or both of the Settlements, you must file a written objection with the Court and serve copies on Plaintiffs' Counsel and Settling Defendants' counsel so that the written objection is received by June 7, 2024. You must be and remain within a Settlement Class in order to object to that Settlement.
The Court will hold the Fairness Hearing on September 4, 2024. At the Fairness Hearing, the Court will consider whether the Settlements are fair, reasonable, and adequate. The Court will also consider whether to approve the Plans of Allocation and requests for attorneys' fees, litigation expenses and costs, and plaintiff service awards. If there are any objections, the Court will consider them at this time. Plaintiffs' Counsel will answer any questions the Court may have. You are, however, welcome to participate at the Fairness Hearing. If you send an objection, you do not have to participate at the Fairness Hearing to talk about it. As long as you file and serve your written objection on time, the Court will consider it. You may also hire your own lawyer to participate, but you are not required to do so.
This Notice summarizes the Settlement Agreements. More details are in the Settlement Agreements and Plans of Allocation, which are available for your review at the Settlement Website, www.StockLoanSettlements.com. The Settlement Website also has answers to common questions about the Settlements, Claim Form, and other information to help you determine whether you are a Class Member and whether you are eligible for a payment. You may also call toll-free 1-877-606-2315.
URL: www.StockLoanSettlements.com
SOURCE United States District Court for the Southern District of New York
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