The Shapiro-Hill Class Settlement Agreement and Class Settlement Fund

On January 7, 2014, Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), filed motions seeking court approval to settle claims asserted by the SIPA Trustee against JPMorgan Chase for $325 million, as well as common law claims brought separately by the SIPA Trustee and in a class action lawsuit – the Shapiro-Hill Class Action – which mirrored the claims developed by the SIPA Trustee’s legal team, for $218 million. (To read the press release regarding these settlements, click here.) Both settlements were approved by the United States Bankruptcy Court for the Southern District of New York on February 4, 2014. (Read the order approving the SIPA Trustee’s avoidance claims here and the Order approving the Class Action here.)

On March 21, 2014, the District Court approved the Class Action settlement certifying the proposed class for purposes of the settlement, appointing settlement class counsel, granting final approval of the settlement agreement and plan of allocation, and authorizing the settlement class counsel to make distributions to class members. (Read the District Court’s order approving the Class Action settlement here.) The Shapiro-Hill Settlement Class consists of BLMIS customers – including their successors, transferees or assignees – who had capital directly invested with BLMIS as of December 11, 2008 and had net losses, regardless of whether they previously filed a claim in the BLMIS SIPA proceeding.

The Claims Administrator for the Class Settlement Fund, AlixPartners LLP, supervised and administered the notice procedure and the processing of claims. On September 15, 2014, AlixPartners mailed notice letters to all authorized claimants of the class stating each claimant’s net losses.

On November 7, 2014, a motion was filed with the United States District Court for the Southern District of New York seeking approval to distribute the Shapiro-Hill Class Settlement Fund. That motion was approved on November 24, 2014.

On December 12, 2014, AlixPartners mailed distribution letters and checks to all authorized claimants.

On November 16, 2015, the United States District Court granted the class action plaintiffs’ motion for final distribution and termination of administration of the class settlement fund. It stated that outstanding and/or uncashed checks issued to Settlement Class members over a certain range of dates can be voided and the funds deposited in the secular Section 501(c)(3) organization.

AlixPartners also serves as the SIPA Trustee’s claims agent in the SIPA liquidation of BLMIS and has access to all updated information on allowed claims and prior distributions made by the SIPA Trustee. The SIPA Trustee will make his documentation of BLMIS customers with allowed claims available to facilitate distribution of the Class Settlement Fund and to vastly reduce potential administrative costs.

For detailed information about the Shapiro-Hill Settlement Class and claims procedures, FAQS and forms, please visit www.Shapiro-HillClassSettlement.com.

CLASS ACTION SETTLEMENT DOCUMENTS

Order
Order preliminarily approving proposed Shapiro-Hill class action settlement and providing for notice.

Proof of Claim Form
Court ordered instructions to file a claim in the proposed Shapiro-Hill class action settlement.

Summary Notice
Notice to all former direct BLMIS customers that a hearing will be held regarding the proposed Shapiro-Hill class action settlement with JPMorgan Chase.

Long Form Notice
Court authorized notice of proposed settlement of Shapiro-Hill class action to direct investors in BLMIS.

Motion
Class Plaintiffs’ Notice of Motion and Motion for Distribution of the Net Settlement Fund

Memorandum
Memorandum in Support of Class Plaintiffs’ Motion for Distribution of the Class Settlement Fund

Declaration
Declaration of Vineet Sehgal of AlixPartners in Support of Motion to Distribute Net Settlement Fund

Order
Order granting Class Plaintiffs’ Motion for Distribution of the Class Settlement Fund

Order
Order granting Settling Class Plaintiffs' Motion for Final Distribution and Termination of Administration of the Class Settlement Fund