The settlement notice in the massive settlement by the Citigroup Defendants in the WorldCom class action is now available. A copy is available here. The highlights:
--As previously announced, the Settlement Fund is $2.65 billion
--The average recovery per share is estimated at 48 cents, and the average recovery per $1,000 face amount of bonds issued in May 2000 and May 2001 is $95.26
--Lead counsel will be seeking fees not to exceed $144.5 million (5.45% of the Settlement Fund), plus $16 million in expenses
--A settlement hearing has been set for November 5, 2004
--The entire settlement amount (after deduction of Court-approved costs, expenses and attorneys' fees),
plus interest, will be distributed to Class Members who submit timely, valid Proofs of Claim. There will not be any reversion to the Citigroup Defendants of any portion of the settlement amount.
--The notice states that "based on Lead Counsel's experience and survey of claims administrators, it is reasonable to assume that 25-30% of potential claimants will not file claims for a distribution from the Settlement Fund...." If so, this will increase the recovery for Class Members who do file claims.
--Proof of Claim forms must be submitted by March 4, 2005