Encore Capital Group Announces Proposed Settlement in Derivative Litigation

SAN DIEGO--()--ENCORE CAPITAL GROUP, INC.:

On November 10, 2015, the San Diego Superior Court preliminarily approved a settlement in a shareholder derivative action pending before the Court, captioned International Brotherhood et al. v. Black, et al., Case No. 37-2011-00097795-CU-SL-CTL. A hearing will be held before the Honorable Joel M. Pressman on February 5, 2016 at the San Diego Superior Court of California, to determine whether: (i) the Settlement of the Action on the terms and conditions provided for in the Stipulation is fair, reasonable and adequate, and should be finally approved by the Court; (ii) whether the Action should be dismissed with prejudice; and (iii) the amount, if any, of attorneys’ fees and costs sought by Plaintiff’s Counsel that should be approved by the Court. For further details see the Summary Notice approved by the Court below.

SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SAN DIEGO

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 98 PENSION FUND, on Behalf of Nominal Defendant ENCORE CAPITAL GROUP, INC.

Plaintiff,

v.

J. BRANDON BLACK, GEORGE LUND, H. RONALD WEISSMAN, RICHARD A. MANDELL, WARREN WILCOX, WILLEM MESDAG, J. CHRISTOPHER TEETS, TIMOTHY J. HANFORD, and JOHN J. OROS,

Defendants,

and

ENCORE CAPITAL GROUP, INC.

Nominal Defendant.

Case No. 37-2011-00097795-CU-SL-CTL

SUMMARY NOTICE OF PROPOSED SETTLEMENT

TO: ALL HOLDERS OF ENCORE CAPITAL GROUP, INC. (“ENCORE” OR THE “COMPANY”) STOCK AS OF NOVEMBER 10, 2015. IF YOU HOLD ENCORE COMMON STOCK FOR THE BENEFIT OF ANOTHER, PLEASE TRANSMIT THIS DOCUMENT TO SUCH BENEFICIAL OWNER. PLEASE NOTE THAT THIS ACTION IS NOT A “CLASS ACTION” AND NO INDIVIDUAL STOCKHOLDER HAS THE RIGHT TO BE COMPENSATED AS A RESULT OF THIS SETTLEMENT.

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS MAY BE AFFECTED. THIS NOTICE IS NOT ANY EXPRESSION OF ANY OPINION BY THE COURT AS TO THE MERITS OF ANY CLAIMS OR DEFENSES IN THE ABOVE-CAPTIONED LAWSUIT. THE STATEMENTS IN THIS NOTICE ARE NOT FINDINGS OF THE COURT.

YOU ARE HEREBY NOTIFIED that the parties to the above action (the “Action”) have entered into a Stipulation of Settlement with certain current and former officers and directors of the Company (the “Stipulation”) to fully and finally resolve the issues raised in the Action (the “Settlement”).

The Settlement will result in changes to the Company’s corporate governance, not in payment to individuals. Neither the Company nor any of its current or former officers and directors made any admission of wrongdoing.

For a more detailed statement of the matters involved in the Action and the Settlement, the Stipulation may be inspected at the Civil Business Office of the Superior Court of the Superior Court for the County of San Diego, located at 330 W. Broadway, Room 225, San Diego, California 92101, during regular business hours of each business day. In addition, the Stipulation is publicly available for viewing through the Company’s website at www.encorecapital.com.

PLEASE BE FURTHER ADVISED that pursuant to an Order of the Superior Court for the State of California, County of San Diego (the “Court”), a hearing will be held before the Honorable Joel M. Pressman on February 5, 2016 at 10:30 a.m. in Department 66 of the Superior Court of California, San Diego County, located at 330 W. Broadway, San Diego, California 92101, to determine whether: (i) the Settlement of the Action on the terms and conditions provided for in the Stipulation is fair, reasonable and adequate, and should be finally approved by the Court; (ii) whether the Action should be dismissed with prejudice; and (iii) the amount, if any, of attorneys’ fees and costs sought by Plaintiff’s Counsel that should be approved by the Court.

Any current Encore stockholder wishing to assert a written objection to the Settlement must, no later than January 22, 2016: (1) file with the Clerk of the Court a written objection to the Settlement setting forth: (a) the name, address and telephone number of the person objecting to the Settlement; (b) the nature of the objection; (c) proof of current ownership of Encore common stock, including the number of shares of Encore common stock and the date of purchase; and (d) any documentation in support of such objection. Any current Encore stockholder may in addition to filing a written objection, or in lieu of filing a written objection, appear and request to be heard at the Settlement Hearing and may voice any objection of any kind related to the Settlement at the Settlement Hearing

If a current Encore stockholder files a written objection such stockholder must also simultaneously serve copies of such notice, proof, statement and documentation, together with copies of any other papers or briefs such stockholder files with the Court (either by hand delivery or by first class mail) upon each of the following:

Clerk of the Court
Superior Court of California
County of San Diego
330 W. Broadway
San Diego, CA 92101
(619) 450-7275

KESSLER TOPAZ
MELTZER & CHECK, LLP
Eric L. Zagar
Robin Winchester
280 King of Prussia Road
Radnor, PA 19087
Telephone: (610) 667-7706
Facsimile: (267) 948-2512

Attorneys for Plaintiff International Brotherhood of Electrical Workers Local 98 Pension Fund

SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
Peter B. Morrison
300 South Grand Avenue
Los Angeles, CA 90071
Telephone: (213) 687-5000
Facsimile: (213) 687-5600

Attorneys for Defendants J. Brandon Black, George Lund, H. Ronald Weissman, Richard A. Mandell, Warren Wilcox, Willem Mesdag, J. Christopher Teets, Timothy J. Hanford, and John J. Oros

PESTOTNIK LLP
Timothy R. Pestotnik
Russell F. Winslow
501 West Broadway, Suite 1025
San Diego, CA 92101
Telephone: (619) 237-5080
Facsimile: (619) 342-8020

Attorneys for Nominal Defendant Encore Capital Group, Inc.

Any current Encore stockholder who does not make his, her or its objection in the manners provided herein shall be deemed to have waived such objection and shall forever be foreclosed from making any objection to the fairness, reasonableness, or adequacy of the Settlement as incorporated in the Stipulation, and to the attorneys’ fees and reimbursement of costs sought by Plaintiff’s Counsel, unless otherwise ordered by the Court, but shall otherwise be bound by the Judgment to be entered and the releases to be given.

PLEASE DO NOT TELEPHONE THE COURT OR ENCORE REGARDING
THIS NOTICE

Contacts

Pestotnik LLP
Timothy R. Pestotnik, (619) 237-5080