Overview Of The Settlement
On November 14, 2011, the Court granted final approval of the Settlement concerning claims of persons and entities who purchased or otherwise acquired mortgage pass-through certificates pursuant or traceable to Wells Fargo Asset Securities Corporation’s July 29, 2005 Registration Statement, October 20, 2005 Registration Statement, or September 27, 2006 Registration Statement, and the accompanying prospectuses and prospectus supplements in the 28 Offerings and were damaged thereby (the “Settlement Class”).
Lead Plaintiffs, on behalf of themselves and the Settlement Class, and the other Plaintiffs, have agreed to settle all Settled Claims against Defendants and other Released Parties in exchange for a settlement payment of $125 million to be deposited into an interest-bearing escrow account (the “Settlement Fund”). 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 the Notice, and may be modified by the Court without further notice.
Defendants deny all claims of wrongdoing, that they are liable to Lead Plaintiffs and/or the Settlement Class or that Lead Plaintiffs or other members of the Settlement Class suffered any injury. Moreover, the parties do not agree on the amount of recoverable damages or on the average amount of damages per certificate that would be recoverable if Lead Plaintiffs were to prevail on each of their claims. The issues on which the parties disagree include, but are not limited to: (1) whether the statements made or facts allegedly omitted were material, false or misleading; and (2) whether Defendants are otherwise liable under the securities laws for those statements or omissions.
Your Legal Rights and Options in the Settlement:
- Remain a Member of the Class. If you wished to obtain a payment as a member of the Settlement Class, you needed to file a claim form postmarked no later than December 7, 2011.
- The deadlines to Exclude yourself from the Class, Object to the Settlement, and file an intent to appear at the hearing have expired.
- Do Nothing. Receive no payment, remain a Class Member, give up your rights and be bound by the Final Order and Judgment entered by the Court if it approves the Settlement, including the Release of the Settled Claims.
Please consult the Notice for more details on your options.
The Final Approval Hearing
Pursuant to the Final Approval Hearing on October 27, 2011, the Honorable Lucy H. Koh granted final approval of the Settlement.