Minneapolis Firefighters' Relief Association v. Medtronic, Inc. et al
Filing
359
ORDER granting 355 Motion for Approval of Distribution Plan and providing for distribution of settlement proceeds (Written Opinion). Signed by Judge Paul A. Magnuson on February 24, 2015. (ALT)
UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
MINNEAPOLIS FIREFIGHTERS’
RELIEF ASSOCIATION, et al.,
Civil No. 08-6324 (PAM/AJB)
Plaintiffs,
v.
MEDTRONIC, INC., et al.,
Defendants.
ORDER APPROVING DISTRIBUTION PLAN
Lead Plaintiffs, on notice to Defendants’ Counsel, moved this Court for an order
approving a distribution plan for the Net Settlement Fund in the above-captioned class action
(the “Action”), and the Court having considered all the materials and arguments submitted in
support of the motion, including the Declaration of Jason Rabe in Support of Lead Plaintiffs’
Motion for Approval of Distribution Plan (the “Rabe Declaration”) and Lead Plaintiffs’
Memorandum in Support of Motion for Approval of Distribution Plan, submitted therewith;
NOW, THEREFORE, IT IS HEREBY ORDERED THAT:
1.
This Order incorporates by reference the definitions in the Stipulation and
Agreement of Settlement dated July 20, 2012 (Docket No. 325) (the “Stipulation”), the Notice
of Pendency of Class Action and Proposed Settlement, Settlement Fairness Hearing, and
Motion for Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”)
(Docket No. 332-1, Exhibit A), and the Rabe Declaration and all terms used herein shall
have the same meanings as set forth in the Stipulation, the Notice, or the Rabe Declaration.
2.
This Court has jurisdiction over the subject matter of the Action and over all
parties to the Action, including all Class Members.
3.
Lead Plaintiffs’ Motion for Approval of Distribution Plan (Docket No. 355) is
GRANTED and the plan for distribution of the Net Settlement Fund to Authorized
Claimants is APPROVED. Accordingly,
(a)
The administrative recommendations of the Court-approved Claims
Administrator, Rust Consulting, Inc. (“Rust”), to accept the Timely Eligible Claims as
set forth in Exhibit C-1 to the Rabe Declaration and the Late but Otherwise Eligible
Claims as set forth in Exhibit C-2 to the Rabe Declaration, are adopted;
(b)
Rust’s administrative recommendations to reject wholly ineligible
Claims, as set forth in Exhibit C-3 to the Rabe Declaration, are adopted;
(c)
Rust is authorized to accept and reject Claims-in-Process on the same
basis as it did with respect to the Late but Otherwise Eligible Claims and to include the
accepted Claims-in-Process in the Initial Distribution (defined below) as set forth in
paragraph 29 of the Rabe Declaration. A supplement to Exhibit C to the Rabe
Declaration will be filed with the Court reflecting the disposition of the Claims-inProcess.
(d)
Rust is directed to distribute 100% of the available balance of the Net
Settlement Fund, after deducting the payments previously allowed and approved
herein, and after deducting payment of any estimated taxes, the costs of preparing
appropriate tax returns, and any escrow fees, to the Authorized Claimants whose pro
rata share of the Net Settlement Fund, as set forth in the Court-approved Plan of
Allocation, is at least $20.00, as further detailed in paragraphs 37 and 39(a) of the
Rabe Declaration (the “Initial Distribution”);
(e)
In order to encourage Authorized Claimants to promptly cash their
payments, all Initial Distribution checks shall bear the following notation: “CASH
PROMPTLY, VOID AND SUBJECT TO RE-DISTRIBUTION IF NOT CASHED
BY [DATE 120 DAYS AFTER ISSUE DATE].” Lead Counsel and Rust are
authorized to take appropriate action to locate and/or contact any Authorized
Claimant who has not cashed his, her, or its check within said time as detailed in
footnote 8 of the Rabe Declaration;
(f)
Authorized Claimants who do not cash their Initial Distribution checks
within the time allotted or on the conditions set forth in footnote 8 of the Rabe
Declaration shall irrevocably forfeit all recovery from the Settlement, and the funds
allocated to all such stale-dated checks shall be available to be distributed to other
Authorized Claimants in the Second Distribution. Similarly, Authorized Claimants
who do not cash subsequent distributions within the time allotted or on the conditions
set forth in footnote 8 of the Rabe Declaration will irrevocably forfeit any further
recovery from the Net Settlement Fund;
(g)
After Rust has made reasonable and diligent efforts to have Authorized
Claimants cash their Initial Distribution checks (as set forth in footnote 8 of the Rabe
Declaration), but no earlier than one (1) year after the Initial Distribution, Rust shall
conduct a second distribution of the Net Settlement Fund (the “Second Distribution”),
pursuant to which any amounts remaining in the Net Settlement Fund after the Initial
Distribution, after deducting Rust’s fees and expenses incurred in connection with
administering the Settlement for which it has not yet been paid (including the
estimated costs of such Second Distribution), and after the payment of any estimated
taxes, the costs of preparing appropriate tax returns, and any escrow fees, shall be
distributed to all Authorized Claimants from the Initial Distribution who (1) cashed
their distribution payment and (2) are entitled to at least $20.00 from the
redistribution based on their pro rata share of the remaining funds;
(h)
In order to allow a final distribution of any funds remaining in the Net
Settlement Fund after completion of the Second Distribution, whether by reason of
returned funds, tax refunds, interest, uncashed checks, or otherwise:
(1)
If cost effective, not less than six (6) months after the Second
Distribution is conducted, Rust shall conduct a further distribution of the Net
Settlement Fund, pursuant to which all funds remaining in the Net Settlement
Fund, after deducting Rust’s unpaid fees and expenses incurred or to be
incurred in connection with administering the Net Settlement Fund (including
the estimated costs of such distribution), and after the payment of any
estimated taxes, the costs of preparing appropriate tax returns, and any escrow
fees, shall be distributed to Authorized Claimants who cashed their most
recent distribution checks and who would receive at least $20.00 in such
further distribution. Additional redistributions, after deduction of costs and
expenses as described above and subject to the same conditions, may occur
thereafter in six-month intervals until Lead Counsel, in consultation with Rust,
determine that further redistribution is not cost-effective.
(2)
At such time as Lead Counsel, in consultation with Rust,
determine that further redistribution of the funds remaining in the Net
Settlement Fund is not cost-effective, any otherwise valid Claims received
after the Claims-in-Process Cut-Off Date, i.e., February 19, 2015, and any
Claims for which information supporting an upward adjustment of the Claim
was received after February 19, 2015, will be eligible for payment or
additional payment in accordance with subparagraph (i) below. 1 If any funds
remain in the Net Settlement Fund after payment of such late or late adjusted
Claims, the remaining balance of the Net Settlement Fund, after payment of
any unpaid fees or expenses incurred in connection with administering the Net
Settlement Fund and after the payment of any estimated taxes, the costs of
preparing appropriate tax returns, and any escrow fees, shall be donated to
non-sectarian, not-for-profit, 501(c)(3) organization(s) designated by Lead
Counsel and approved by the Court.
(i)
No further Claims may be accepted for any reason after February 19,
2015, and no upward adjustments may be made for any reason with respect to Claims
for which information supporting the adjustment was received after February 19,
1
New Claims received after February19, 2015, will not be processed until Lead Counsel
have determined that further redistributions are not cost effective. However, if additional
information relating to Claims filed prior to February 19, 2015, is received, that information
will be processed upon receipt and the procedures set forth in paragraph 30 of the Rabe
Declaration will be followed.
2015, subject to the following exception. If Claims are received or modified after that
date that would have been eligible for payment or additional payment under the
Court-approved Plan of Allocation if timely received, then, at the time that Lead
Counsel, in consultation with Rust, determine that a redistribution is not cost effective
as provided in subparagraph (h)(2) above, such Claimants, at the discretion of Lead
Counsel, may be paid their distribution amounts or additional distribution amounts on
a pro rata basis that would bring them into parity with other Authorized Claimants
who have cashed all their prior distribution checks to the extent possible;
(j)
All persons involved in the review, verification, calculation, tabulation,
or any other aspect of the processing of the Proofs of Claim submitted herein, or
otherwise involved in the administration or taxation of the Settlement Fund or the Net
Settlement Fund, are hereby released and discharged from any and all claims arising
out of such involvement, and all Class Members, whether or not they receive payment
from the Net Settlement Fund, are hereby barred from making any further claims
against the Net Settlement Fund, Lead Plaintiffs, Lead Counsel, the Claims
Administrator, the Escrow Agent or any other agent retained by Lead Plaintiffs or
Lead Counsel in connection with the administration or taxation of the Settlement
Fund or the Net Settlement Fund beyond the amount allocated to Authorized
Claimants;
(k)
All of Rust’s fees and expenses incurred in connection with the
administration of the Settlement and estimated to be incurred in connection with the
Initial Distribution as set forth in Exhibit D to the Rabe Declaration are approved, and
Lead Counsel are authorized to direct payment of $1,663,635.41 out of the Settlement
Fund to Rust for the unpaid balance of such fees and expenses; and
(l)
Unless otherwise ordered by the Court, one (1) year after the Second
Distribution, Rust shall destroy the paper copies of the Proofs of Claim and all
supporting documentation, and one (1) year after all funds have been distributed, Rust
shall destroy electronic copies of the same.
4.
This Court retains jurisdiction to consider any further applications concerning
the administration of the Settlement, and such other and further relief as this Court deems
appropriate.
SO ORDERED this 24th day of February , 2015.
s/ Paul A. Magnuson
Paul A. Magnuson
United States District Court Judge
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