SECURITIES AND EXCHANGE COMMISSION ACTION
Notice of Distribution in
SEC v. The BISYS Group, Inc., 07-Civ-4010 (RJS) (S.D.N.Y.)
On May 23, 2007, the Securities and Exchange Commission (SEC) filed an enforcement action against The BISYS Group, Inc. (BISYS), SEC v. The BISYS Group, Inc., 07-Civ-4010 (RJS), alleging violations of the financial reporting, books and records, and internal control provisions of the federal securities laws arising out of improper accounting that occurred from July 2000 through December 2003. For more information about the SEC’s case, see Litigation Release No. 20125 (May 23, 2007).
As part of the settlement of the SEC’s case, BISYS paid approximately $25 million and a distribution fund was established to compensate harmed investors. On May 21, 2012, the Hon. Richard J. Sullivan, District Judge of the United States District Court of the Southern District of New York, issued an order approving the SEC’s proposed plan of distribution in this case (the “Distribution Plan” or “Plan”). The Distribution Plan governs the distribution of the approximate $25 million paid by BISYS in settlement of the SEC’s case, plus additional funds added from the Fair Fund created in a related case, SEC v. Wevodau, 08 Civ. 8348 (RJS) (S.D.N.Y.). Pursuant to the court’s order approving the Plan, A.B. Data, Ltd., the claims administration firm that served as the Court-appointed claims administrator in a parallel class action, In re BISYS Securities Litigation, 04-Civ-3840 (JSR) (S.D.N.Y.) (the “Class Action”), will implement the Plan and administer the distribution.
Under the terms of the Distribution Plan, the available funds will be distributed to shareholders who acquired and held BISYS stock during the period beginning on October 23, 2000, and ending on April 22, 2004 (the “Recovery Period”), and suffered a loss on their investment. Persons eligible to receive a distribution under the Plan are persons who acquired BISYS shares during the Recovery Period, and who incurred a Net Recognized Loss, as defined under the Plan with respect to their purchase of BISYS shares, and (a) who submitted a claim in the Class Action that was accepted by the Claims Administrator in that case; or (b) who requested to be excluded from the class in the Class Action and whose request for exclusion was approved by the court in that action (the “Opt-Outs”); and (c) whose distribution amount is greater than $10.00 after their Net Recognized Loss is calculated and pro rata allocation is applied (the “Eligible Claimants”). ELIGIBLE CLAIMANTS OTHER THAN OPT-OUTS DO NOT NEED TO SUBMIT A CLAIM FORM. THEIR DISTRIBUTION WILL BE CALCULATED BASED ON THE CLAIM FORM SUBMITTED IN THE CLASS ACTION.
Based on the claim forms submitted in the Class Action, and the Loss Formula provided in the Plan, each Eligible Claimant will receive an individualized Notice of Distribution containing an individualized Net Recognized Loss before the application of the pro rata allocation. Please note that your Net Recognized Loss is not the amount that will be distributed to you. Instead, it will be used to determine your Distribution Amount which will likely be less than your Net Recognized Loss. Please note that, if after the application of the pro rata allocation, your Distribution Amount is $10.00 or less, you will not receive a payment.
Distribution payments are expected to be made in the beginning of 2013. If you would like to learn more information about the Distribution Plan, a copy of the Plan may be obtained by clicking here. You may also call the Claims Administrator toll free at 800-949-0206 for more information about the Plan and the status of the distribution. All Eligible Claimants are responsible for updating their address with the Claims Administrator by calling 800-949-0206 or by writing to:
SEC v. The BISYS Group, Inc.
c/o A.B. Data, Ltd.
PO Box 170200
Milwaukee, WI 53217-8042
The claims period for the Class Action has ended and the Court has approved or rejected all claims received by the Claims Administrator. Please keep your address up to date with the Claims Administrator if you filed a claim in the Class Action. If you have questions about your claim or distributions in the Class Action, please contact the Claims Administrator:
In re BISYS Securities Litigation
c/o A.B. Data, Ltd.
PO Box 170500
Milwaukee, WI 53217-8042
Toll-Free Telephone: 800-949-0206
Inquiries may be made to Lead Plaintiffs’ Counsel:
Peter S. Linden, Esq
KIRBY MCINERNEY, LLP
825 Third Ave, 16th Floor
New York, NY 10022
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