Declaration of K. Rehns in Support of Plaintiffs' Motion for - Lehman ...

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Case 1:09-md-02017-LAK Document 666-1 Filed 01/13/12 Page 17 of 74 This Notice explains important rights you may have, including your possible receipt of cash from the Settlement. Your legal rights will be affected whether or not you act. Please read this Notice carefully and in its entirety! 1. Description of the Litigation and Settlement Class: This Notice relates to the pendency and proposed settlement of a class action lawsuit against Defendants Mark L. Zusy (“Zusy”), Samir Tabet (“Tabet”), James J. Sullivan (“Sullivan”), Lana Franks Harber (“Harber”), Edward Grieb (“Grieb”), Kristine Smith (“Smith”) and Richard McKinney (“McKinney”) (collectively, the “Defendants”). Defendants are current and/or former officers and directors of Structured Asset Securities Corporation (“SASCO”), an affiliate of Lehman Brothers Holdings, Inc. (“LBHI”) and a debtor in the bankruptcy proceeding pending in the Bankruptcy Court for the Southern District of New York captioned In re Lehman Brothers Holdings Inc.,et al., 08-bk- 13555 (JMP) (the “Lehman Bankruptcy”). “Plaintiffs” means the Class Representatives Lead Plaintiff Locals 302 and 612 of the International Union of Operating Engineers – Employers Construction Industry Retirement Trust, Plaintiff New Jersey Carpenters Health Fund and Plaintiff Boilermakers-Blacksmith National Pension Trust; and proposed intervenors Iowa Public Employees’ Retirement System and Public Employees’ Retirement System of Mississippi (collectively, the “Intervenors”). The “Settling Parties” mean the (i) Defendants; (ii) LBHI; (iii) Plaintiffs and Intervenors on behalf of themselves and the Class Members. The proposed Settlement, if approved by the Court, will settle certain claims of all persons and entities who purchased or otherwise acquired mortgage pass-through certificates pursuant or traceable to Structured Asset Securities Corporation’s August 16, 2005 Registration Statement or May 10, 2006 Registration Statement, and the accompanying prospectuses and prospectus supplements in the seventeen (17) Offerings and were damaged thereby (the “Settlement Class”). 3
Case 1:09-md-02017-LAK Document 666-1 Filed 01/13/12 Page 18 of 74 2. Statement of the Settlement Class’ Recovery: Subject to Court approval and, as described more fully below, Plaintiffs and Intervenors, on behalf of themselves and the Settlement Class, have agreed to settle all Settled Claims (as defined in 51 below) against the Defendants in exchange for a settlement payment of $40 million ($40,000,000.00) to be deposited into an interest-bearing escrow account (the “Settlement Fund”) within the later of ten (10) business days following entry of the Bankruptcy Order or (ii) execution of the Stipulation. The Net Settlement Fund (the Settlement Fund less taxes, notice and administration costs, and attorneys’ fees and certain Litigation Expenses awarded to Lead Counsel) will be distributed in accordance with a plan of allocation (the “Plan of Allocation”) that will be approved by the Court and will determine how the Net Settlement Fund shall be allocated to the members of the Settlement Class. The proposed Plan of Allocation is included in this Notice, and may be modified by the Court without further notice. 3. Statement of Average Amount of Damages Per $1,000 in Initial Certificate Value: The Settlement Fund consists of $40 million plus interest earned. Based on the total initial face dollar value of the Certificates as stated in the prospectus supplements (without subtracting the principal pay-downs received on the Certificates), and assuming all purchasers of the initially offered certificates elect to participate, the estimated average distribution is $0.37 per $1,000 in initial certificate value of the Lehman Certificates. Class Members may recover more or less than this amount depending on, among other factors, when their certificates were purchased or sold, the amount of principal that has been repaid, the estimated value of the certificates on the applicable Date of First Suit as indicated in the attached Table A, the number of Class Members who timely file Claims, and the Plan of Allocation, as more fully described 4
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Declaration of K. Rehns in Support of Plaintiffs' Motion for - Lehman ...

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