DETROIT, Mich.--(BUSINESS WIRE)--The following was released today by Stull, Stull & Brody.
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
|DEBRA GRIFFIN and JOY GARDNER, on|
|Behalf of Themselves and a Class of Persons|
|Similarly Situated,||CASE NO.: 2:10-cv-10610|
|FLAGSTAR BANCORP, INC.; REBECCA A.|
|LUCCI; ERIN ENGLAND; JOHN DOES 1-10,|
|AND RICHARD ROES 1-20,|
SUMMARY NOTICE OF CLASS ACTION SETTLEMENT
TO: ALL CURRENT AND FORMER PARTICIPANTS AND BENEFICIARIES OF THE FLAGSTAR BANK 401(K) PLAN (THE “PLAN”) FOR WHOSE INDIVIDUAL ACCOUNTS THE PLAN HELD SHARES OF COMMON STOCK OF FLAGSTAR BANCORP, INC. (“FLAGSTAR” OR THE “COMPANY”) AT ANY TIME FROM DECEMBER 31, 2006 TO MAY 2, 2013, INCLUSIVE (THE “SETTLEMENT CLASS”).
PLEASE READ THIS NOTICE CAREFULLY.
A FEDERAL COURT AUTHORIZED THIS NOTICE.
THIS IS NOT A SOLICITATION.
YOU ARE NOT BEING SUED.
A Settlement has been preliminarily approved by a federal court in a consolidated class action lawsuit against Flagstar Bancorp, Inc. (“Flagstar” or the “Company”), alleging breaches of fiduciary duties under the Employee Retirement Income Security Act of 1974 (“ERISA”), which claims and allegations were denied by Flagstar. All capitalized terms not otherwise defined in this Summary Notice of Class Action Settlement have the meaning provided in the Class Action Settlement Agreement (the “Settlement Agreement”) available on the Settlement website identified in this Notice. The Settlement will provide for a payment of $3 million to the Plan (minus Court-approved attorneys’ fees, certain expenses and case contribution awards to the Named Plaintiffs), which will then be allocated to the accounts of participants of the Plan, other than certain excluded persons under the terms of the Settlement, who had portions of their Plan accounts invested in Flagstar common stock or fund units in the Flagstar Stock Fund between December 31, 2006 and May 2, 2013, inclusive (the “Class Period”).
You will receive a payment if you qualify under a Court-approved Plan of Allocation. You do not need to send in a claim form or take any other action to participate in the Settlement. The United States District Court for the Eastern District of Michigan (Southern Division) authorized this Notice.
WHO IS INCLUDED IN THE SETTLEMENT?
If you were a member of the Settlement Class, as defined above, then you are included in the Settlement automatically.
WHAT IS THIS CASE ABOUT?
The Named Plaintiffs claimed, among other things, that the Defendant breached fiduciary duties under ERISA by allowing the investment of the Plan’s assets in Flagstar common stock or Flagstar Stock Fund units during a time when they allegedly knew or should have known that such investment was imprudent. Defendant denies any wrongdoing, and asserted defenses against all the claims.
WHAT DOES THE SETTLEMENT PROVIDE?
Defendant agreed to create a Settlement Fund of $3 million to be divided among eligible Settlement Class members after payment of attorneys’ fees and expenses to Class Counsel and Case Contribution Awards to the Named Plaintiffs, and payment of other costs and expenses of the Settlement, including notice and Settlement administration, as the Court may allow. The Settlement Agreement and long-form Class Notice, available along with other related documentation and a list of Frequently Asked Questions at the website identified below, describe the details of the proposed Settlement. The Settlement releases certain claims relating to the investment of the Plan’s assets in Flagstar common stock or common stock fund units during the time period listed above.
HOW DO I RECEIVE A PAYMENT?
If you are a Settlement Class member and are entitled to a share of the Settlement Fund according to the Settlement Agreement, you are not required to do anything to receive a payment. The payment will be made directly to your Plan account(s). If you no longer are a participant in the Plan, a Plan account will be established for you, and you will be notified of this account along with further instructions. If your address has changed since you closed your Plan account(s), please call 800-332-9084 (toll-free) to advise of the change of address.
CAN I OBJECT TO OR OPT OUT OF THE SETTLEMENT?
You cannot opt out of the Settlement, but you may object to all or any part of the Settlement in accordance with the Class Notice. You will be bound by any judgments or orders that are entered in this Action, and if the Settlement is approved, you will be deemed to have released all of the Defendants from all claims that were or could have been asserted in this case.
The Court has scheduled a hearing in this case on December 3, 2013, at 2:30 p.m. in the Courtroom of United States District Judge Paul D. Borman, United States District Court for the Eastern District of Michigan (Southern Division), Theodore Levin U.S. Courthouse, 231 W. Lafayette Blvd., Room 740, Detroit, MI 48226, to consider whether to approve the Settlement and any motion(s) by the lawyers representing Settlement Class members for attorneys’ fees, reimbursement of expenses and Case Contribution Awards to the Named Plaintiffs, and for other case-related expenses. If approved, these amounts will be paid from the Settlement Fund. You may ask to speak at the hearing by filing a notice of your intention to appear, but you are not required to appear at the hearing. If you intend to attend the hearing, please re-confirm the time and location with Plaintiffs’ counsel or check the Settlement website identified in this Notice to make sure that the hearing has not been re-scheduled.
HOW DO I GET MORE INFORMATION?
This Notice summarizes the proposed Settlement. If you are a Settlement Class member and would like to receive additional information or to receive a copy of the long form Class Notice, which more completely describes the Settlement and your rights thereunder (including your right to object to the Settlement), please call toll free 800-332-9084 or visit www.FlagstarERISAsettlement.com.