Waterford Township Police & Fire Retirement System v. Smithtown Bancorp, Inc. et al

Filing 85

MEMORANDUM & ORDER ADOPTING 82 REPORT AND RECOMMENDATION. For the reasons stated herein, Judge Reyes's 82 Report and Recommendation dated April 17, 2015, is adopted in its entirety and the Court will enter the Order Preliminarily Approvin g Settlement and Providing for Notice, upon the parties' submission of a revised proposed order and exhibits. Accordingly, the Court directs the parties to submit a revised (but not redlined) order attaching the exhibits incorporating the lang uage recommended by Judge Reyes and noting People's United Bank's name change. The documents should also be revised to reflect that the Settlement Hearing will be held before Judge Reyes. The parties should contact Judge Reyes's chambers regarding scheduling. A referral order shall follow separately. Ordered by Judge Sandra L. Townes on 6/3/2015. (Barrett, C)

FiL

1,4 CLERK'S OFFICE
U.S. DISTRICT COURT E.D.N.Y

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

*

WATERFORD TOWNSHIP POLICE & FIRE
RETIREMENT SYSTEM, individually and
on behalf of all others similarly situated, et al.,

JUN 05 2015 *

BR OOKLVN OFFICE
MEMORANDUM & ORDER

Plaintiffs,
10-CV-864 (SLT)(RER)
-againstSMITHTOWN BANCORP, INC., et al.,
Defendants.
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TOWNES, United States District Judge:
Waterford Township Police & Fire Retirement System and Michael L. Cox (collectively,
"Plaintiffs") filed this putative class action against Smithtown Bancorp, Inc. ("Smithtown"),
People's United Financial, Inc., People's United Bank, Bradley E. Rock, and Anita M. Florek
(collectively, "Defendants") alleging violations of the Securities Exchange Act of 1934, 15
U.S.C. § § 78j (b), 78t(a), and the rules promulgated thereunder by the Securities and Exchange
Commission, 17 C.F.R. § 240.1Ob-5. (See Am. Compi., ECF No. 40.) Plaintiffs, purchasers of
Smithtown common stock, allege that Smithtown engaged in unsafe banking practices that
artificially inflated prices before adverse disclosures diminished the stock's value. Plaintiffs
seek compensatory damages, attorneys' fees, and costs on behalf of themselves and the putative
class.
On January 12, 2015, Plaintiffs submitted an Unopposed Motion for Preliminary
Approval of Settlement. (ECF No. 79.) This Court referred this motion to Magistrate Judge
Ramon E. Reyes, Jr. for a report and recommendation. (ECF No. 81.) On April 17, 2015, Judge
Reyes issued a report and recommendation ("R&R") recommending that this Court: (1) certify
the class for settlement purposes; (2) appoint Robbins Geller Rudman & David, LLP as

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Settlement Class Counsel; (3) preliminarily approve the Settlement; (4) approve the Proposed
Notice, as amended, as well as the Proof of Claim and Release and Summary Notice; (5) direct
the Amended Proposed Notice be distributed in the manner set forth in the R&R and within the
"[Proposed] Order Preliminarily Approving Settlement and Providing for Notice"; and (6)
schedule a hearing for final approval of the Settlement.
The parties filed a letter with the Court on April 21, 2015, stating that neither party
objects to any aspect of the R&R. (ECF No. 84.) This letter also attaches a redlined version of
the Notice of Pendency of Class Action and Proposed Settlement, Motion for Attorneys' Fees
and Settlement Fairness Hearing that includes the language recommended by Judge Reyes and
notes that Defendant People's United Bank has changed its name to People's United Bank,
National Association. (Id.)
A district court need not review the factual or legal conclusions of the magistrate judge as
to those portions of a report and recommendation to which no objections are addressed. See
Thomas v. Am, 474 U.S. 140 3 150, 106 S. Ct. 466, 472, 88 L. Ed. 2d 435 (1985). Even when no
objections are filed, however, many courts seek to satisfy themselves "that there is no clear error
on the face of the record." Fed. R. Civ. P. 72(b) advisory committee's note (1983 Addition); see
also Edwards v. Town of Huntington, No. 05 Civ. 339 (NGG)(AKT), 2007 WL 2027913, at *2
(E.D.N.Y. July 11, 2007). Although not required to do so, this Court has reviewed Judge
Reyes's R&R for clear error on the face of the record. The Court finds no clear error and
therefore adopts the R&R in its entirety as the opinion of the Court pursuant to 28 U.S.C. §
636(b)(l).

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CONCLUSION
For the reasons stated above, Judge Reyes's Report and Recommendation dated April 17,
2015, is adopted in its entirety and the Court will enter the Order Preliminarily Approving
Settlement and Providing for Notice, upon the parties' submission of a revised proposed order
and exhibits.
Accordingly, the Court directs the parties to submit a revised (but not redlined) order
attaching the exhibits incorporating the language recommended by Judge Reyes and noting
People's United Bank's name change. The documents should also be revised to reflect that the
Settlement Hearing will be held before Judge Reyes. The parties should contact Judge Reyes's
chambers regarding scheduling. A referral order shall follow separately.

SO ORDERED.
/s/ Sandra L. Townes
SANDRA L. TOWNES
United States District Judge

Dated:

M4iJ1
ew York

oI ~'

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