Touchstone Group, LLC v. Rink et al
FINAL JUDGMENT re: 256 Order. By Clerk on 07/21/2014. (athom, )
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Civil Action No. 1:11-cv-02971-CMA-KMT
TOUCHSTONE GROUP, LLC, MARGRET GREENSPAN,
AND RONALD GREENSPAN,
On behalf of themselves and all others similarly situated,
DANIEL J. RINK;
ASTOR, WEISS, KAPLAN, & MANDEL LLP;
CHRISTOPHER FLANNERY, ESQ;
STEVEN GRANOFF, CPA;
KRASSENSTEIN & UNGER, LLC; AND
ESTILL & LONG, LLC,
In accordance with the orders filed during the pendency of this case, and
pursuant to Fed. R. Civ. P. 58(a), the following Final Judgment is hereby entered.
Pursuant to the Final Order Granting Approval of Class Action Settlements,
Awards of Attorneys’ Fees and Expenses, Class Representatives’ Incentive Awards and
Dismissal With prejudice of Judge Christine M. Arguello entered on July 18, 2014 it is
hereby ORDERED as follows:
1. This Court has subject matter jurisdiction over this action and personal
jurisdiction over all parties to the Settlement Agreements.
2. Capitalized terms not otherwise defined herein shall have the same meaning
as set forth in the Settlement Agreements.
3. The following Settlement Class, which was conditionally certified in the Order
granting preliminary approval of the Settlements on March 21, 2013 (Doc. # 227), in
Civil Action No. 1:11-cv-02971-CMA-KMT, is certified for settlement purposes as
ALL PERSONS OR ENTITIES WHO INVESTED IN ANY SECURITIES ISSUED OR
PROMOTED BY MANTRIA CORPORATION OR SPEED OF WEALTH, LLC, OR ANY OF
THEIR SUBSIDIARIES OR AFFILIATES SINCE SEPTEMBER 2007 AND INCURRED A
NET LOSS OF THEIR INVESTMENTS (THE “SETTLEMENT CLASS”).
EXCLUDED FROM THE SETTLMENT CLASS ARE DEFENDANTS, MANTRIA
CORPORATION, SPEED OF WEALTH LLC AND ANY OF THEIR OFFICERS,
EMPLOYEES, OR AFFILIATES.
4. This Court finds that certification of the Settlement Class is appropriate
a. The Settlement Class is so numerous that joinder of all members is
impracticable, satisfying the requirement of Rule 23(a)(1);
b. There are questions of law or fact common to the Settlement Class,
satisfying the requirements of 23(a)(2);.
c. The claims of Class Representatives, Touchstone Group, LLC and
Margret and Ronald Greenspan, are typical of the claims of the members of the
Settlement Class, satisfying the requirements of Rule 23(a)(3);
d. The Class Representatives will fairly and adequately protect the
interests of the Settlement Class, and they have retained Class Counsel qualified in
litigating class actions, satisfying the requirements of Rule 23(a)(4); and
e. Questions of law or fact common to the members of the Settlement
Class, as set forth above, predominate over any questions affecting only individual
members, and a class action is superior to other available methods for the fair and
efficient adjudication of the controversy, satisfying the requirements of Rule 23(b)(3).
5. If this Final Judgment and Order of Dismissal is set aside, materially modified,
or returned by this Court on appeal, and it is not fully reinstated on further appeal, this
Order shall be vacated and shall have no force or effect whatsoever.
6. 570 Class Notices were disseminated to Settlement Class Members pursuant
to the Order Granting Preliminary Approval. In response, the Court received
approximately sixteen objections to the terms of the proposed Settlement. The Court
has carefully considered the objections and has OVERRULED them.
7. For the reasons stated at the final fairness hearing held on July 18, 2014, the
Court concludes that the proposed settlement is a fair, reasonable and adequate
compromise of the claims asserted in this action as it relates to the Released Parties.
The Court therefore approves the terms of all Settlement Agreements.
8. The Class Notice, the contents of which were previously approved by the
Court, was disseminated both by first class mail and electronic mail, as well as posted
on the Class Website in accordance with the procedures required by the Court’s
Preliminary Approval Order in accordance with applicable law. Plaintiffs, the Settlement
Class and the Released Parties are bound by this Final Judgment and Order of
Dismissal and by the Settlement Agreements.
9. The Court dismisses, on the merits and with prejudice, all claims currently
pending before it against the Released Parties that are belonging to the Settlement
Class who did not request exclusion from the class in the time and manner provided for
in the Class Notice (“Settlement Class Members”). As of the Effective Date of the
Settlement, the Class Representatives and the Settlement Class Members shall be
deemed to hereby fully and irrevocably release, waive, and discharge the following
Released Parties from all Released Claims (as defined in the Settlement Agreements):
(1) Astor, Weiss, Kaplan & Mandel, LLP and Christopher P. Flannery; (2) Krassenstein
& Unger, LLC and Steven L. Granoff; (3) Estill & Long, LLC; (4) Tatum, LLC; and (5)
Daniel J. Rink.
10. Having reviewed Class Counsel’s Motion for Attorneys’ Fees, the Court
awards Class Counsel reasonable attorneys’ fees in the amount of 30% of the
Settlement Fund for a total of one million eight hundred and fifteen thousand
($1,815,000) in addition to an award of actual expenses incurred in the litigation of
11. Strategic Claims Services’ (“Strategic Claims”) request for payment for
services provided in preparing and mailing the notice in the amount of $5,971.34 is
granted. After Strategic Claims completes the administration of the settlement, and prior
to mailing the settlement proceeds, Strategic Claims shall make an application to the
Court via Class Counsel for payment for the balance of its services. In no event, will
that payment exceed $32,000.
12. The Court awards Class Representatives, Touchstone Group, LLC, Margret
Greenspan and Ronald Greenspan an incentive fee award of $2,500 each for a total of
13. Within 30 days of the Effective Date as defined in the Settlement Agreement,
the Released Parties shall pay into the Escrow Account established by the Settlement
Administrator the total amount of six-million fifty thousand dollars ($6,050,000) as
follows: (i) Tatum, LLC and Rink shall deposit the total sum of five million one hundred
thousand ($5,100.000.00); (ii) the Astor Weiss Parties shall deposit the total sum of
seven hundred and fifty thousand dollars ($750,000.00); (iii) Estill & Long LLC shall
deposit the total sum of one hundred thousand dollars ($100,000); and (iv) the
Krassenstein Parties shall deposit the total sum of one hundred thousand dollars
($100,000.00). The respective above-referenced deposits shall constitute the entire
monetary consideration to be paid by or on behalf of the Released Parties in connection
with this Settlement.
14. After the deduction of Court awarded Attorneys’ Fees and Costs to Class
Counsel; payment of Notice Costs and Administration; and the Incentive Awards, the
remaining balance (“Settlement Class Fund”) shall remain in the Escrow Account until a
final judgment is entered in the above captioned litigation as to all parties and the
Claims Period deadline closes. Once a final judgment is entered, the Settlement
Administrator shall mail a letter to each Class Member with their pro rata settlement
share. The pro rata distribution shall be determined based upon the forensic accounting
prepared the Receiver and provided to Class Counsel demonstrating the amount of
each Settlement Class Member’s outstanding and unpaid investment in Mantria
Corporation. The Class Member will have thirty (30) days to return the letter confirming
their investment amount and pro rata distribution or provide documents supporting a
differing amount. The Settlement Administrator will make the final determination on the
appropriate amount of loss based on all available information. Once that process is
complete, the Settlement Administrator shall mail checks to each Class Member. If any
funds remain in the Escrow Account after 200 days from the first mailing, Class
Counsel shall petition to the Court and provide suggested uses of the money, including
re-distribution to class members or an award of cy pres.
15. The Settlement Agreements, acts performed in furtherance of the Settlement
Agreements or the settlement set forth therein, and documents executed in furtherance
of the Settlement Agreements or the settlement set forth therein may not be deemed or
be used as evidence or an admission supporting: (a) the validity of any claim made by
one or more of the Class Representatives, Settlement Class Members, or Class
Counsel; (b) any wrongdoing or liability of the Released Parties; or (c) any fault or
omission of the Released Parties in any court, administrative agency or other
16. The Settlement Agreements shall not be offered or be admissible in evidence
against Released Parties or cited or referenced to in any action or proceeding, except in
an action or proceeding that is in furtherance of its terms or to enforce its terms.
17. Without affecting the finality of this Final Judgment and Order of Dismissal in
any way, the Court reserves continuing jurisdiction over the parties regarding the
enforcement of the terms of the Settlement Agreements, including any and all
tangential disputes that arise related to the litigation and/or the Settlement and its
18. The Clerk is directed to enter the Final Judgment and Order of Dismissal
pertaining to the Released Parties.
It is further
ORDERED that post judgment interest shall accrue at the legal rate of 0.11%
from the date of entry of judgment.
Dated at Denver, Colorado this 21st day of July, 2014.
FOR THE COURT:
JEFFREY P. COLWELL, CLERK
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