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 31 of 74 defenses that Defendants have or could have asserted. Defendants expressly deny that Plaintiffs or Intervenors have asserted a valid claim and deny any and all allegations of fault, liability, wrongdoing or damages whatsoever. WHAT MIGHT HAPPEN IF THERE WERE NO SETTLEMENT 30. If there were no Settlement and Plaintiff and Intervenors failed to establish any essential legal or factual element of their claims, neither Plaintiff nor Intervenors nor the Settlement Class would recover anything from Defendants. Also, if Defendants were successful in proving any of their defenses, the Settlement Class likely would recover substantially less than the amount provided in the Settlement, or nothing at all. HOW MUCH WILL MY PAYMENT BE I. THE PROPOSED PLAN OF ALLOCATION: GENERAL PROVISIONS 31. The $40 million settlement amount, and the interest earned thereon, shall be the Gross Settlement Fund. The Gross Settlement Fund, less all taxes, approved costs, fees and expenses (the “Net Settlement Fund”), shall be distributed based on the acceptable Claim Forms submitted by members of the Settlement Class (“Authorized Claimants”). The Net Settlement Fund will be distributed to Authorized Claimants who timely submit acceptable Claim Forms under the Plan of Allocation described below, or as otherwise ordered by the Court. 32. Your share of the Net Settlement Fund will depend on the aggregate number of Certificates (represented by valid and acceptable Claim Forms) that members of the Settlement Class submit to the Claims Administrator, relative to the Net Settlement Fund; how many Certificates you purchased; whether the claims related to those certificates have been dismissed; whether you held or sold those Certificates; the date on which you sold those Certificates; and 17
Case 1:09-md-02017-LAK Document 666-1 Filed 01/13/12 Page 32 of 74 the price at which you sold them. At this time, it is not possible to determine how much individual Class Members may receive from the Settlement. 33. A payment to any Authorized Claimant that would amount to less than $10.00 in total will not be included in the calculation of the Net Settlement Fund, and no payment to those members of the Settlement Class will be made. 34. To determine the amount that an Authorized Claimant may recover under the Plan of Allocation, Lead Counsel conferred with a valuation consultant who estimated the values of the Certificates as shown in Table A. The proposed Plan of Allocation is generally based upon the statutory measure of damages for claims asserted with respect to material misrepresentations or omissions in SASCo Offering Documents. For each Authorized Claimant, a “Recognized Claim” will be calculated. The calculation of a “Recognized Claim,” as defined in 45 below, is not intended to be an estimate of, nor does it indicate, the amount that a Class Member might have been able to recover after a trial. Nor is the calculation of a Recognized Claim pursuant to the Plan of Allocation an estimate of the amount that will be paid to Authorized Claimants pursuant to the Settlement, which would depend on the total amount of all Recognized Claims. The Recognized Claim formula provides the basis for proportionately allocating the Net Settlement Fund to Authorized Claimants. That computation is only a method to weigh Class Members’ claims against one another. Each Authorized Claimant will receive a pro rata share of the Net Settlement Fund based on his, her or its Recognized Claim. II. CALCULATION OF RECOGNIZED LOSS OR GAIN AMOUNTS 35. A “Recognized Loss or Gain Amount” will be calculated for each Certificate purchased or acquired for which adequate documentation is provided (each an “Eligible Certificate”). The calculation of the Recognized Loss or Gain Amount will depend on several 18
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Declaration of K. Rehns in Support of Plaintiffs' Motion for - Lehman ...

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