Puerto Rico Government Judiciary Employees Retirement System Administration et al v. Marcum, LLP

Filing 39

ORDER AUTHORIZING DISTRIBUTION OF THE NET SETTLEMENT FUND granting 36 Motion for Disbursement of Funds. The payment of $28,218.50 to the Claims Administrator from the Net Settlement Fund for the balance of its fees and expenses incurred in connection with the services performed in processing the Proofs of Claim and in administering the Settlement, as set forth in Exhibit D of the Sherwood Decl. is approved, and Lead Counsel is directed to approve payment from the Net Settlement F und to the Claims Administrator, without further order of the Court, an amount of up to $39,093.07 for the fees and costs the Claims Administrator incurs in connection with performing the work to complete the distribution and administration p rocess; an estimate of these fees and costs is set forth in Exhibit E of the Sherwood Decl.; and This Court retains jurisdiction over this Action and all parties hereto and any further application or matter which may arise in connection with this Action. The Clerk of Court is directed to terminate ECF No. 36. (And as further set forth herein.) SO ORDERED. (Signed by Judge Jesse M. Furman on 1/3/2023) (jca) Transmission to Finance Unit (Cashiers) for processing.

Case 1:15-cv-01938-JMF Document 39 Filed 01/03/23 Page 1 of 5

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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PUERTO RICO GOVERNMENT JUDICIARY
:
EMPLOYEES RETIREMENT SYSTEM
:
ADMINISTRATION, CRAIG B. LAUB, J.D.
:
PISUT and SANDRA REDFERN,
:
:
Plaintiffs,
:
:
-against:
:
:
MARCUM, LLP, as successor to STONEFIELD
:
JOSEPHSON, INC.,
:
:
Defendant.
:
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15 Civ. 01938 (DAB) (JMF)

[PROPOSED] ORDER AUTHORIZING
DISTRIBUTION OF THE NET SETTLEMENT FUND
WHEREAS, by its Order dated February 1, 2018 (ECF No. 35), the Court approved the
terms of the Stipulation of Settlement and attached exhibits, which were filed with the Court on May
25, 2017 (the “Stipulation” or “Settlement Agreement”) (ECF No. 16-1), including the Plan of
Allocation for distributing the Net Settlement Fund to Class Members who were Authorized
Claimants; and
WHEREAS, as set forth in the Notice of Proposed Settlement of Class Action, Motion for
Attorneys’ Fees and Settlement Fairness Hearing (the “Notice”) (ECF No. 25, Exhibit A), the
deadline for Class Members to submit Proof of Claim and Release forms (“Proofs of Claim”) to the
claims administrator for the Settlement, Angeion Group (“Angeion” or the “Claims Administrator”),
in order to participate in the distribution of the Net Settlement Fund was November 24, 2017, which
is extended to December 20, 2022; and
WHEREAS, the process of reviewing all Proofs of Claim has been completed; and

Case 1:15-cv-01938-JMF Document 39 Filed 01/03/23 Page 2 of 5

WHEREAS, Lead Counsel now seeks authorization to distribute the proceeds of the Net
Settlement Fund to Authorized Claimants, after deduction of any taxes, fees and expenses previously
approved by the Court or approved by this Order;
NOW, THEREFORE, upon the reading and filing of: (1) the Memorandum of Law in
Support of Lead Plaintiff’s Motion to Distribute the Net Settlement Fund; (2) the supporting
Declaration of Lawrence D. Levit in Support of Lead Plaintiff’s Motion to Distribute the Net
Settlement Fund, which includes as an exhibit the Declaration of Markham Sherwood in Support of
Lead Plaintiff’s Motion to Distribute Net Settlement Fund (“Sherwood Decl.”) and the exhibits
attached thereto; and (3) upon all prior proceedings heretofore, and after due deliberation,
IT IS HEREBY ORDERED that:
1.

All terms used in this Order shall have the same meanings as defined in the

Stipulation, the Notice or the Sherwood Decl.
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 Plaintiff’s plan for distribution of the Net Settlement Fund to Authorized

Claimants is approved. Accordingly:
(a)

The administrative determinations of the Court-approved Claims

Administrator to accept the timely submitted eligible claims as set forth in Part One of Exhibit B to
the Sherwood Decl. and the late but otherwise eligible claims, as set forth in Part Two of Exhibit B
to the Sherwood Decl., are approved;
(b)

The Claims Administrator’s administrative determinations to reject claims that

were deficient or duplicative and those claims with no Recognized Loss, as set forth in Parts Three
and Four, respectively, of Exhibit B to the Sherwood Decl., are approved;

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(c)

Angeion is directed to conduct an initial distribution of the Net Settlement

Fund to all Authorized Claimants whose Proofs of Claim have been accepted as valid by Angeion
and approved by the Court, including those Authorized Claimants who were previously determined
to have submitted valid claims in the related action In re Fuqi International, Inc. Sec. Litig., No. 10
Civ. 2515 (DAB) (S.D.N.Y.), as set forth in Part Five of Exhibit B to the Sherwood Decl., as
calculated under the Plan of Allocation, after deducting all payments previously allowed from the
Settlement Fund and the payments approved by this Order, and after deducting the payment of any
estimated taxes, the costs of preparing appropriate tax returns, and any escrow fees;
(d)

In order to encourage Authorized Claimants to cash their distribution checks

promptly and to avoid or reduce future expenses relating to uncashed checks, all distribution checks
shall bear the following notation: “CASH PROMPTLY, VOID AND SUBJECT TO
REDISTRIBUTION IF NOT CASHED 120 DAYS AFTER ISSUE DATE.”

The Claims

Administrator is authorized to take appropriate action to locate and/or contact any Authorized
Claimant who initially fails to cash their distribution check;
(e)

Authorized Claimants who do not cash their distribution checks within the

time allotted will irrevocably forfeit all recovery from the Settlement and the funds allocated to all
stale-dated checks will be available to be distributed to other Authorized Claimants in a
redistribution. After the Claims Administrator has made reasonable and diligent efforts to encourage
Authorized Claimants to cash their distribution checks, (a) any balance remaining in the Net
Settlement Fund, by reason of uncashed checks, or otherwise, no less than six (6) months after the
initial distribution, will be redistributed to Authorized Claimants who have cashed their distribution
checks and who would receive at least $20.00 from such redistribution if, after consulting with Lead
Counsel, the Claims Administrator and Lead Counsel determine that a redistribution is feasible and

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the remaining funds in the Net Settlement Fund can be distributed in an equitable and economic
fashion. The redistribution shall be conducted in the same manner consistent with the Plan of
Allocation, after deducting any unpaid costs or fees incurred in administering the Net Settlement
Fund, including the costs for such redistribution, and for any estimated taxes or the cost of preparing
tax returns, and (b) if a redistribution of the Net Settlement Fund is deemed not to be feasible or if a
redistribution occurs and, thereafter, funds remain in the Net Settlement Fund, the Claims
after obtaining leave of the Court
Administrator, following consultation with Lead Counsel, shall donate, pursuant to the doctrine of cy
^
pres, any remaining funds in the Net Settlement Fund, after payment of any further administration
expenses and taxes, to the Legal Aid Society of New York City;
(f)

The Court finds that the administration of the Settlement and the proposed

distribution of the Net Settlement Fund comply with the terms of the Stipulation and the Plan of
Allocation and that all Persons who were involved in the review, verification, calculation, tabulation,
or any other aspect of the processing of the Proofs of Claim filed in this Action, or who were
otherwise involved in the administration, taxation or distribution of the Settlement Fund or the Net
Settlement Fund, including Lead Plaintiff, Lead Counsel, the Claims Administrator, the Escrow
Agent or any other agent retained by Lead Plaintiff or Lead Counsel, are released from any and all
claims arising out of such involvement and all Settlement Class Members, whether or not they are to
receive payment from the Net Settlement Fund, are barred from making any further claims against
the Net Settlement Fund, Lead Plaintiff, Lead Counsel, the Claims Administrator, the Escrow Agent
or any other agent retained by Lead Plaintiff or Lead Counsel in connection with the administration,
taxation or distribution of the Settlement, beyond the amount allocated to Authorized Claimants;
(g)

The payment of $28,218.50 to the Claims Administrator from the Net

Settlement Fund for the balance of its fees and expenses incurred in connection with the services

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Case 1:15-cv-01938-JMF Document 39 Filed 01/03/23 Page 5 of 5

performed in processing the Proofs of Claim and in administering the Settlement, as set forth in
Exhibit D of the Sherwood Decl. is approved, and Lead Counsel is directed to approve payment
from the Net Settlement Fund to the Claims Administrator, without further order of the Court, an
amount of up to $39,093.07 for the fees and costs the Claims Administrator incurs in connection
with performing the work to complete the distribution and administration process; an estimate of
these fees and costs is set forth in Exhibit E of the Sherwood Decl.; and
(h)

The Claims Administrator is authorized to destroy the claim forms and records

in paper form one year after final distribution of the Net Settlement Fund and to destroy the claim
forms and records in electronic form three years after final distribution of the Net Settlement Fund.
4.

This Court retains jurisdiction over this Action and all parties hereto and any further

application or matter which may arise in connection with this Action.
IT IS SO ORDERED
January
Third day of ____________,
this ______
202_3
New York, New York
U.S.D.J. JESSE M. FURMAN
The Clerk of Court is directed to terminate ECF No. 36.

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