In re Conn’s, Inc. Securities Litigation , Civil Action No. 4:14-cv-00548 (KPE)
You or someone in your family or an investment account for which you serve as a custodian may have purchased or otherwise acquired the publicly traded common stock and/or call options of Conn’s, Inc., or sold/wrote Conn’s put options, during the period from April 3, 2013 through December 9, 2014, inclusive and were damaged thereby.
The Court directed that the Notice be sent to Class Members because they have a right to know about a proposed settlement of a class action lawsuit, and about all of their options, before the Court decides whether to approve the Settlement. If the Court approves the Settlement, and after any objections and appeals are resolved, an administrator appointed by the Court will make the payments that the Settlement allows.
The Notice explains the lawsuit, the Settlement, Class Members’ legal rights, what benefits are available, who is eligible for them, and how to get them.Back To Top
In a class action, one or more persons or entities (in this case, Class Representatives), sue on behalf of people and entities who have similar claims. Together, these people and entities are a “class,” and each is a “class member.” Bringing a case, such as this one, as a class action allows the adjudication of many individuals’ similar claims that might be too small to bring economically as individual actions. One court resolves the issues for all class members at the same time, except for those who exclude themselves, or “opt-out,” from the class. In this Action, the Court has appointed Detroit, Connecticut, St. Paul, and Universal to serve as Class Representatives and has appointed Motley Rice LLC and Scott+Scott Attorneys at Law LLP to serve as Class Counsel.Back To Top
The Court did not finally decide in favor of Class Representatives or Defendants. Instead, both sides agreed to a settlement. That way, they avoid the risks and cost of a trial. The Class Representatives and their attorneys think the Settlement is in the best interest of the Class.Back To Top
The Court directed, for the purposes of the proposed Settlement, that everyone who fits this description is a Class Member: All persons and entities who purchased, or otherwise acquired, Conn’s publicly traded common stock and/or call options, or who sold/wrote Conn’s put options, during the period from April 3, 2013 through December 9, 2014 (inclusive), and were damaged thereby.
There are some individuals and entities who are excluded from the Class by definition. Excluded from the Class are Defendants and their immediate family members; the officers and directors of the Company during the Class Period and their immediate family members; any entity in which Defendants have or had a controlling interest; and the legal representatives, heirs, successors, assigns, or affiliates of any excluded Person. Also excluded from the Class will be any persons or entities who timely and validly seek exclusion from the Class or whose request for exclusion is accepted by the Court.
If you are still not sure whether you are included, you can ask for free help. You can call 1-855-804-8547 for more information, send an email to the Claims Administrator at info@ConnsSecuritiesLitigation.com, or write to the Claims Administrator at In re Conn’s, Inc. Securities Litigation, c/o Epiq Global, P.O. Box 4087, Portland, OR 97208-4087. Or you can fill out and return the Claim Form, to see if you qualify.Back To Top
The Settlement creates a cash fund of $22.5 million that, along with any interest earned on this amount, will be distributed after deduction of Court-awarded attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court (the “Net Settlement Fund”), among all Class Members who submit valid Claim Forms and are found by the Court to be eligible to receive a distribution from the Net Settlement Fund (“Authorized Claimants”).Back To Top
At this time, it is not possible to make any determination as to how much any individual Class Member may receive from the Settlement. Your share of the Net Settlement Fund will depend on several things, including, among other things, how many Class Members timely send in valid Claim Forms; the amount of Conn’s common stock or call options you purchased or otherwise acquired, or the amount of put options you sold, during the Class Period; the prices and dates of those purchases or acquisitions; and the prices and dates of any sales you made.
By following the instructions in the Plan of Allocation, located in the Notice, you can calculate what is called your Recognized Claim. It is unlikely that you will get a payment for all of your Recognized Claim. After all Class Members have sent in their Claim Forms, the payment you get will be a part of the Net Settlement Fund equal to your Recognized Claim divided by the total of everyone’s Recognized Claim.Back To Top
The Settlement provides $22.5 million in cash for the benefit of the Class. The Settlement Amount and any interest it earns, after deduction of Court-approved attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, is the “Net Settlement Fund”. The Net Settlement Fund will be distributed according to the Plan of Allocation to members of the Class who timely submit valid Claim Forms that show a Recognized Claim that are approved for payment by the Court.
The Plan of Allocation is on pages 13-19 of the Notice, found here.Back To Top
To be eligible for a payment, you must submit a timely and valid Claim Form. The Claim Form is enclosed with the Notice. You can also download a copy of the Claim Form from this website here.
Read the instructions carefully, fill out the Claim Form, and include all the documents the form asks for, sign it, and mail it to the mailing address below. Claim Forms must be postmarked or received online on or before November 10, 2018.
The mailing address for Claim Forms:
Conn’s Inc. Securities Litigation
c/o Epiq Global
P.O. Box 4087
Portland, OR 97208-4087
It is not possible at this time to determine when the Settlement proceeds will be distributed to eligible Class Members. The Court will hold a Settlement Hearing on October 11, 2018, to decide whether to approve the Settlement. If the Court approves the Settlement, there might be appeals. It is always uncertain whether appeals can be resolved, and if so, how long it would take to resolve them. It also takes time for all the Claim Forms to be processed. All Claim Forms need to be submitted by November 10, 2018. Once all the Claim Forms are processed and claims are calculated, Class Counsel, without further notice to the Class, will apply to the Court for an order distributing the Net Settlement Fund to Class Members. Please be patient.Back To Top
If you are a Class Member and do not timely and validly exclude yourself from the Class, you will remain in the Class and that means that, upon the “Effective Date” of the Settlement, you will release all “Released Plaintiffs’ Claims” against the “Released Defendant Parties.” For additional information and a definition of these terms, please review Q&A 12 of the Notice.Back To Top
To exclude yourself from the Class, you must mail a signed letter stating that you “request to be excluded from the Class in In re Conn’s, Inc. Securities Litigation, Civil Action No. 4:14-cv-00548 (KPE).” Each request for exclusion must also state: (i) the name, address, e-mail, and telephone number of the person or entity requesting exclusion, and in the case of entities, the name and telephone number of the appropriate contact person for the entity; (ii) the number of shares of Conn’s common stock, call options, and put options purchased, acquired, and sold during the Class Period, as well as the date, number of shares and price per share of each such purchase, acquisition, and sale; and (iii) be signed by the person or entity requesting exclusion or an authorized representative. You must also submit copies of documents showing your transactions. A request for exclusion must be submitted so that it is received no later than September 20, 2018 to:
Conn’s Inc. Securities Litigation
c/o Epiq Global
P.O. Box 4087
Portland, OR 97208-4087
You cannot exclude yourself by telephone, by e-mail or on this website. Your exclusion request must comply with these requirements in order to be valid. However, if you submit a valid exclusion request, you will not get any payment from the Settlement, and you cannot object to the Settlement. You will not be legally bound by anything that happens in this lawsuit, and you may be able to sue the Defendants and the other Released Defendant Parties in the future.Back To Top
No. Unless you properly exclude yourself, you will remain in the Class and you will give up any rights to sue Defendants and the other Released Defendant Parties for any and all Released Plaintiffs’ Claims. If you have a pending lawsuit against any of the Released Defendant Parties, speak to your lawyer in that case immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is September 20, 2018.Back To Top
No. If you exclude yourself, you may not submit a Claim Form to ask for any money. But, you may exercise any right you may have to sue, continue to sue, or be part of a different lawsuit against the Defendants and the other Released Defendant Parties.Back To Top
The Court appointed the law firms of Motley Rice LLC and Scott+Scott Attorneys at Law LLP to represent all Class Members. These lawyers are called “Class Counsel.” You will not be separately charged for these lawyers. The Court will determine the amount of Plaintiffs’ Counsel’s fees and expenses, which will be paid from the Settlement Fund. If you want to be represented by your own lawyer, you may hire one at your own expense.Back To Top
Plaintiffs’ Counsel have been prosecuting the Action on a contingent basis and have not been paid for any of their work. Class Counsel will ask the Court to award Plaintiffs’ Counsel attorneys’ fees of no more than 20% of the Settlement Fund, which will include any accrued interest, for work performed by Scott+Scott Attorneys at Law LLP, Motley Rice LLC, Labaton Sucharow LLP, and Ajamie LLP in this matter. Motley Rice LLC has a fee-sharing agreement with Sturman LLC, which has served as counsel to Universal during this Action, and which has been consented to by Universal. Labaton Sucharow LLP has a referral obligation to The Thornton Law Firm LLP, which has been consented to by St. Paul. Scott+Scott Attorneys at Law LLP has a referral obligation to Sachs Waldman PC, which has been consented to by Detroit Laborers. None of these obligations will increase the overall fee deducted from the Settlement Fund. Class Counsel will also seek payment of litigation expenses incurred by Plaintiffs’ Counsel in the prosecution of this Action of no more than $1,500,000, plus accrued interest, which may include an application in accordance with the PSLRA for the reasonable costs and expenses (including lost wages) of Class Representatives directly related to their representation of the Class. As explained above, any attorneys’ fees and expenses awarded by the Court will be paid from the Settlement Fund. Class Members are not personally liable for any such fees or expenses.Back To Top
If you are a Class Member, you can object to the Settlement or any of its terms, the proposed Plan of Allocation of the Net Settlement Fund, and/or the Fee and Expense Application. You may give reasons why you think the Court should not approve any or all of the Settlement terms or related relief. If you would like the Court to consider your views, you must file a proper objection within the deadline, and according to the following procedures.
To object, you must send a signed letter stating that you object to the proposed Settlement in “In re Conn’s, Inc. Securities Litigation, Civil Case No. 4:14-cv-00548 (KPE).” The objection must: (i) state the name, address, telephone number, and e-mail address of the person or entity objecting and must be signed by the objector; (ii) contain a statement of the Class Member’s objection or objections and the specific reasons for each objection, including any legal and evidentiary support the Class Member wishes to bring to the Court’s attention; and (iii) include documents sufficient to prove membership in the Class, including the number of shares of Conn’s common stock, call options, and put options purchased, acquired, and sold during the Class Period, as well as the date, number of shares, and price per share of each such purchase, acquisition, and sale. Unless otherwise ordered by the Court, any Class Member who does not object in the manner described in the Notice will be deemed to have waived any objection and will be forever foreclosed from making any objection to the proposed Settlement, the Plan of Allocation, and/or the Fee and Expense Application. Your objection must be filed with the Court no later than September 20, 2018 and be mailed or delivered to the following counsel so that it is received no later than September 20, 2018:
|Court||Class Counsel||Defendants’ Counsel|
|Clerk of the Court
United States District Court
Southern District of Texas
United States Courthouse
515 Rusk Street
Houston, TX 7700
|James M. Hughes, Esq.
Motley Rice LLC
28 Bridgeside Blvd.
Mt. Pleasant, SC 29464
Deborah Clark-Weintraub, Esq.
Scott+Scott Attorneys at Law LLP
The Helmsley Building
230 Park Ave.
New York, NY 10169
|Michael C. Holmes, Esq.
Vinson & Elkins
1001 Fannin Street
Houston, TX 77002
You do not need to attend the Settlement Hearing to have your written objection considered by the Court. However, any Class Member who has not submitted a request for exclusion and who has complied with the procedures described in this FAQ and below in FAQ 20 may appear at the Settlement Hearing and be heard, to the extent allowed by the Court, about their objection. An objector may appear in person or arrange, at his, her, or its own expense, for a lawyer to represent him, her, or it at the Settlement Hearing.Back To Top
Objecting is telling the Court that you do not like something about the proposed Settlement, Plan of Allocation, or Fee and Expense Application. You can still recover money from the Settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself from the Class, you have no basis to object because the Settlement and the Action no longer affect you.Back To Top
The Court will hold the Settlement Hearing on October 11, 2018 at 2:00 p.m., in Courtroom 3A at the United States Courthouse, 515 Rusk Street, Houston, TX 77002.
At this hearing, the Court will consider whether: (i) the Settlement is fair, reasonable, adequate, and should be finally approved; (ii) the Plan of Allocation is fair and reasonable, and should be approved; and (iii) the application of Class Counsel for an award of attorneys’ fees and payment of litigation expenses, including those of Class Representatives, is reasonable and should be approved. The Court will take into consideration any written objections filed in accordance with the instructions here. The Court also may listen to people who have properly indicated, within the deadline identified above, an intention to speak at the hearing; but decisions regarding the conduct of the hearing will be made by the Court. See FAQ 20 for more information about speaking at the hearing. The Court may also decide how much to pay to Plaintiffs’ Counsel. After the hearing, the Court will decide whether to approve the Settlement.
You should be aware that the Court may change the date and time of the Settlement Hearing without another notice being sent to Class Members. If you want to attend the hearing, you should check with Class Counsel or visit this settlement website beforehand to be sure that the hearing date and/or time has not changed.Back To Top
No. Class Counsel will answer any questions the Court may have. But, you are welcome to attend at your own expense. If you submit a valid and timely objection, the Court will consider it and you do not have to come to Court to discuss it. You may have your own lawyer attend (at your own expense), but it is not required. If you do hire your own lawyer, he or she must file and serve a Notice of Appearance in the manner described in the answer to FAQ 20 below no later than September 20, 2018.Back To Top
If you object to the Settlement, the Plan of Allocation, or the Fee and Expense Application, you may ask the Court for permission to speak at the Settlement Hearing. To do so, you must include with your objection (see FAQ 16), no later than September 20, 2018, a statement that you, or your attorney, intend to appear in “In re Conn’s, Inc. Securities Litigation, Civil Case No. 4:14-cv-00548 (KPE).” Persons who desire to present evidence at the Settlement Hearing must also include in their objections (prepared and submitted in accordance with the answer to FAQ 16 above) the identities of any witnesses they may wish to call to testify and any exhibits they intend to introduce into evidence at the Settlement Hearing. You may not speak at the Settlement Hearing if you exclude yourself from the Class or if you have not provided written notice of your objection and intention to speak at the Settlement Hearing in accordance with the procedures described in this FAQ and FAQ 16 above.Back To Top
If you do nothing, you will not receive any money from this Settlement. In addition, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants and their Released Defendant Parties about the Released Plaintiffs’ Claims in this case. To share in the Net Settlement Fund, you must submit a Claim Form (see FAQ 8 above). To start, continue, or be a part of any other lawsuit against Defendants and the other Released Defendant Parties concerning the Released Plaintiffs’ Claims, you must exclude yourself from the Class (see FAQ 11 above).Back To Top