Judge Fullam approved the class action settlement at the hearing on May 7, 2007.
For a copy of his Order, see below. He also approved the petition for counsel fees, cost reimbursements, and incentive payments. For a copy of that Order, see below.
The timetable for receipt of the settlement proceeds is:
(1) IF YOU HAVE ALREADY RETIRED AND HAVE RECEIVED A LUMP SUM PAYMENT
• If there is no appeal, the settlement will become final on June 7, 2007.
• Assuming there is no appeal, Hercules will send you an Election Form by September 4, 2007. That form will ask you how you want the settlement payment made to you: as a cash payment (from which the Hercules Pension Plan is required to withhold taxes), or as a direct tax-free rollover into your IRA or retirement plan with another employer. To view a sample Election Form, see below.
• You will have 30 days to complete and return this Election Form to Hercules.
• The Pension Plan will make the payment, in the manner you have directed, within 45 days after Hercules receives your Election Form.
• We cannot estimate what your settlement amount will be. For one plaintiff, the amount was 13% of his lump sum, and for the other plaintiff, it was 7.2% of his lump sum. The percentage you receive could be higher or lower because it is based on interest rates that were in effect during the calendar quarter you elected the lump sum.
• You will have automatically deducted from your payment 6.82% as your share of counsel fees, litigation costs, and incentive payments. For example, if your settlement amount is $5,000, then $341 will be deducted as your share of class counsel fees, costs, and incentive payments.
• Your settlement amount will also include interest at 3% on the settlement payment, compounded annually, from the date you retired until the date the settlement payment is issued.
(2) IF YOU ARE ENTITLED TO ELECT A LUMP SUM BUT HAVE NOT YET RECEIVED A LUMP SUM PAYMENT
• If you have not started your pension and therefore have not received any lump sum payment under the Pension Plan, your settlement payment will be included as part of the lump sum payment when you retire (assuming you elect to receive a lump sum).
• At that time, Hercules will provide you with a statement showing: your base lump sum; the additional settlement amount; the applicable interest rates; and your 6.82% contribution to class counsel fees, litigation costs, and incentive payments from the additional settlement amount.