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Supplemental Distribution of Funds in the Global Research Analyst Settlement

Latest Action.  By Order dated September 22, 2006, the Honorable William H. Pauley III, United States District Judge in the Southern District of New York directed the Distribution Fund Administrator, Francis E. McGovern, to pay all validated, late-filed claims and to engage in additional outreach efforts to locate eligible recipients under the Plan who had yet to submit a claim in the Bear Stearns, Citigroup, CSFB, J.P. Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, US Bancorp Piper Jaffray, Thomas Weisel, and UBS Securities funds. (Deutsche Bank Securities Inc. and Goldman, Sachs & Co. funds have been depleted by paying valid claims.) 

Eligible investors, who had not previously filed a claim, were identified from the records of the remaining Defendants as potential fund recipients and were mailed another Notice in October 2006, informing them of the steps to take to submit a claim for payment.  The new deadline for submitting claims to the Distribution Fund Administrator was December 15, 2006.  Payment of valid, timely claims in this supplemental phase are being mailed in May 2007.

Initial Distribution. On October 31, 2003 and September 24, 2004, the Honorable William H. Pauley III, United States District Judge in the Southern District of New York entered a number of Final Judgments against two individuals and twelve brokerage firms in connection with their research analyst practices.  As a result of payments by the firms and individuals, the Global Research Analyst Settlement Distribution Fund was created. The Court appointed Francis E. McGovern, Esq. as the Distribution Fund Administrator to propose a distribution plan consistent with the terms of the Final Judgments.  On April 22, 2005, the Court approved the Global Research Analyst Settlement Distribution Plan. 

Between December 2005 and March 2006, the Distribution Fund Administrator mailed checks to all eligible claimants.  The total distribution was approximately $283.3 million.  The Distribution Fund Administrator determined that there are unexpended funds of about $172 million.  Accordingly, the Court directed the Distribution Fund Administrator to submit a proposal for the distribution or use of the unexpended funds.  The Court considered the Distribution Fund Administratorís proposal for the distribution of unexpended funds, comments from the Securities and Exchange Commission, the Defendants and the Public.  Subsequently, by Order dated September 22, 2006, the Court ordered the distribution of residual funds to late filed claimants and additional outreach efforts to eligible investors who have not previously filed a claim.

To obtain further information about the Global Research Analyst Settlement or the claims process, please call toll-free 1-877-637-5998, send an email to mail@globalresearchanalystsettlement.com, or write to the Global Research Analyst Settlement, 201 S. Lyndale Avenue, Suite S-3, P.O. Box 1779, Faribault, MN 55021.

For additional information about the settlement, please read www.globalresearchanalystsettlement.com.


http://www.sec.gov/spotlight/globalsettlement/gstimeline.htm


Modified: 05/23/2007