YOU ARE HEREBY NOTIFIED that the above-captioned action (the "Action") has been preliminarily certified by the Court to proceed as a class action and that the parties have reached a proposed Stipulation of Settlement ("Stipulation") that fully and completely releases the Classes' claims in consideration of the following: For the Holder Class , W2007 Grace shall present for approval by the holders of Preferred Stock, pursuant to a Proxy Statement, a merger transaction whereby W2007 Grace will be merged with and into another entity and all Preferred Stock (except for Excluded Shares, as defined in the Stipulation) shall be converted into the right to receive $26.
To participate in the Holder Class , you MUST timely submit your stock certificate(s) and a completed Letter of Transmittal which will be mailed by Computershare Trust Company, N.
For several years after the Uniform Standards Act came into existence, defrauded holders of securities continued to bring holder class actions under state law with considerable success.
Small individual shareholders--such as the low-level Enron employees whose retirement savings were lost when Enron's stock plummeted (76)--will almost certainly be excluded from the holder class actions and be left with no remedy by which to recover their losses.
The Fifth Circuit addressed this issue in a 2008 Enron holder class action appeal brought under state law.
86) Accordingly, it appears to be fairly well settled that plaintiffs may not circumvent the Act's limitation on the number of plaintiffs in a state law holder class action by bringing numerous small actions rather than one large one.
The Uniform Standards Act's limitation on the number of shareholders that may bring a holder class action under state law also undercuts the ability of private litigation to act as an enforcement mechanism for antifraud laws.
In contrast to the Blue Chip Stamps Court, the Court in Dabit casually discounted the importance of state law to holder class actions, and securities law generally.
Similarly, allowing state courts to entertain holder class actions would enable states to act as "laboratories for experimentation" for these actions.
127) Thus, in preempting state holder class actions, the federal government has sacrificed the significant benefits that accompany federalism without any corresponding efficiency gains.