In re Charles Schwab Corp. Securities Litigation

Filing 946

ORDER REGARDING AMENDMENT NO. 4 TO STIPULATION OF SETTLEMENT. Signed by Judge Alsup on November 23, 2010. (whalc2, COURT STAFF) (Filed on 11/23/2010)

In re Charles Schwab Corp. Securities Litigation

Doc. 946

1 2 3 4 5 6 7 8 9 10 IN RE: CHARLES SCHWAB CORPORATION SECURITIES LITIGATION. This Document Relates To All Cases. / No. C 08-01510 WHA IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

United States District Court

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For the Northern District of California

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ORDER REGARDING AMENDMENT NO. 4 TO STIPULATION OF SETTLEMENT

Prior to approval of amendment no. 4 to the stipulation of settlement, this order requires certain revisions: First, the stipulated form of notice in Exhibit A to amendment no. 4 to the stipulation of settlement shall be amended to include the following: "This is the third notice that you have received that relates to the legal proceeding identified above. The first one notified you that a class action had been certified and allowed you to opt out; the second one notified you that a settlement agreement had been reached; and this is the third notice. The reason for this notice is that a clarification has been made to the scope of the release of claims that you will be giving Schwab, namely, the release encompasses more claims than just those certified in the litigation for the federal securities class, of which you have been a member. As a result, you are being given another opportunity to opt out of the class action. If you still choose to proceed as a part of the class and not opt out, you will receive the compensation that the previous notice about the settlement told you that you would receive for your federal securities claims, as set forth in the appended estimate, and which in the Court's

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judgment is fair and adequate. Alternatively, you can choose to opt out and bring your own federal securities and/or Section 17200 claims, among other potential claims. In that case you would not be bound by the release in the settlement here but you will also not be entitled to receive the benefits of the settlement, namely the money recovery." The stipulated form of notice in Exhibit B shall be amended to include the following: "This is the second notice that you have received that relates to the legal proceeding identified above. The first one notified you that a class action had been certified, as well as settled, and allowed you to opt out; this is the second notice. The reason for this notice is that a clarification has been made to the scope of the release of claims that you will be giving Schwab, namely, the release encompasses more claims than just those certified in the litigation for the federal securities class, of which you have been a member. As a result, you are being given another opportunity to opt out of the class action. If you still choose to proceed as a part of the class and not opt out, you will receive the compensation that the previous notice about the settlement told you that you would receive for your federal securities claims, as set forth in the appended estimate, and which in the Court's judgment is fair and adequate. Alternatively, you can choose to opt out and bring your own federal securities and/or Section 17200 claims, among other potential claims. In that case you would not be bound by the release in the settlement here but you will also not be entitled to receive the benefits of the settlement, namely the money recovery." Based on these additions, counsel will please adjust the rest of both forms of notice to eliminate any possible confusion or unnecessary overlap. Second, the notice shall disclose that the California class received an additional $35 million for release of their Section 17200 claims, and that for those California class members who were also members of the federal securities class, this was in addition to their recovery for their federal securities claims. Third, paragraph 4.14 of the amendment shall be stricken. Class members will not be permitted to attend any fairness hearing by telephone.

United States District Court

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For the Northern District of California

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Fourth, the parties shall substitute in the notice that the final fairness hearing will be on February 11, 2011, at 9:00 a.m. The parties shall submit the revised forms of notice by MONDAY, NOVEMBER 29, 2010,
AT 2:00 P.M.

Dated: November 23, 2010.

WILLIAM ALSUP UNITED STATES DISTRICT JUDGE

United States District Court

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For the Northern District of California

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