|
FREQUENTLY ASKED QUESTIONS
1. What is this case about?
A. On January 28, 2003, a 330-page Consolidated Securities Class Action Complaint (the "Complaint") was filed against Tyco International Limited, certain former officers and directors of Tyco, and PricewaterhouseCoopers, alleging that these individuals and entities made false and misleading public statements and omitted material information about Tyco's finances in violation of Sections 10(b), 14, 20A and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") during the Class Period (December 13, 1999 and June 7, 2002). A copy of the Complaint may be viewed by clicking here.
2. Why did I receive the Notice?
A. We have mailed copies of the Notice of Proposed Settlement, Motion for Attorneys' Fees and Fairness Hearing (the "Settlement Notice") and a Proof of Claim form to all people who were identified to us by Tyco's Transfer Agent and by banks, brokerage firms and other Nominees as possibly having invested in Tyco Securities during the Class Period. The Settlement Notice is to notify you of a proposed settlement that has been reached with Tyco International Ltd., two of the officers of the company, and PricewaterhouseCoopers. The Settlement Notice describes Class Members' rights. If you are a Class Member you may be able to receive payment from the settlement fund.
3. I received a Notice Packet. Can you please provide me with a list of my transaction history with Tyco Securities?
A. We do not have your transaction history for Tyco Securities. We have only been notified by either a bank, brokerage firm, other financial institution, or the transfer agent for Tyco securities, that you may be a Class Member. We do not have any of your financial records.
If for some reason you do not have your financial records, please contact your bank, broker or financial institution for records documenting your investments in Tyco International Ltd.
Acceptable forms of supporting documentation include:
|
1)
|
Broker confirmation slips that list the security name, name and address of the purchaser or seller, type of transaction (purchase or sale), the date of the transaction, the number of shares or other securities, the price per share or security and the total amount of the transaction, AND/OR
|
|
2)
|
Periodic (monthly or quarterly) account statements that detail all activity within a specific period.
|
4. How do I know if I am an Eligible Claimant?
A. If you purchased or otherwise acquired Tyco Securities between December 13, 1999 through and including June 7, 2002, you are a potentially eligible Claimant.
5. What is the amount of the settlement fund?
A. The total settlement fund is $3.2 billion. This includes $2.975 billion in cash being contributed by and on behalf of Tyco, Mark Belnick and Michael Ashcroft, and $225 million in cash being contributed by PricewaterhouseCoopers. The settlement funds have been placed in interest-bearing escrow accounts for the benefit of the Class. The net settlement fund to be distributed to Class Members who submit acceptable Proofs of Claim will be reduced by costs, expenses and taxes.
Plaintiffs' Counsel have requested attorneys' fees in the amount of 17.5% of the Settlement Fund, plus up to $40 million of expenses that Plaintiffs' Counsel have incurred to litigate the action and obtain the settlement.
6. What do I need to do to participate in the settlement?
A. If you believe you are a Class Member and entitled to share in the settlement, you must complete and submit a Proof of Claim form, along with the necessary supporting documentation to the Claims Administrator postmarked no later than December 28, 2007.
7. What do I need to submit with my claim form?
A. You must list ALL of your transactions in Tyco securities during the Class Period (December 13, 1999 and June 7, 2002) on your Proof of Claim form and submit documentary evidence of each transaction that you list on your claim form. Acceptable forms of supporting documentation include:
|
1)
|
Broker confirmation slips that list the security name, name and address of the purchaser or seller, type of transaction (purchase or sale), the date of the transaction, the number of shares or other securities, the price per share or security and the total amount of the transaction, AND/OR
|
|
2)
|
Periodic (monthly or quarterly) account statements that detail all activity within a specific period.
|
8. How much money will I receive if I file a claim form?
A. The amount of money that eligible claimants will receive depends on a number of factors, primarily (i) their "Recognized Claim" amount (which depends on the transactions made by the claimant in Tyco securities during the Class Period) and (ii) the number or percentage of Class Members who submit valid Proofs of Claim. Accordingly, it is not possible to know eligible claimants recovery amounts at this time.
The Settlement Notice includes at Exhibit A the proposed "Plan of Allocation" which provides formulae explaining how each claimant's Recognized Claim will be calculated. Claimants will not likely receive the full amount of their Recognized Claims. After all of the Recognized Claims of all eligible Class members are calculated, the Authorized Claimants will share in a pro rata distribution of the net settlement fund.
As stated in the Settlement Notice, the Class Representatives estimated that the approximate average amount of recoverable damages to members of the Class who purchased Tyco common stock were this case to go to trial would be approximately $5.423 per share based upon an estimate of 1.997 billion outstanding Tyco shares as of the last day of the Class Period. The Settling Defendants do not believe that they violated the federal securities laws, deny all allegations of wrongdoing asserted against them, and deny that any of Tyco's public statements were materially false or misleading. They have also asserted affirmative defenses to the claims alleged in this case. Accordingly, the Settling Defendants assert that they are not liable to the Class for any amount of damages.
The Class Representatives estimated that if all Class Members make a claim against the Settlement Fund, the average payment to Class Members will be $1.474 per share of Tyco common stock, after taking into consideration the relative average payment that would be paid to purchasers of Tyco Notes during the Class Period (estimated at approximately 8% of total damages). Of this amount, fees and expenses requested by the attorneys will not exceed $0.30 per share of Tyco common stock. Please note that these amounts are only estimates.
9. How will my claim be calculated?
A. The Settlement Notice, at Exhibit A, provides the formulae for calculating any Class Member's Recognized Claim. The net settlement fund will be allocated in proportion to each Authorized Claimant's Recognized Claim. To download a copy of the Settlement Notice, please click here.
10. When will I receive my payment?
A. Payments will be made after the Settlement is finally approved by the Court and after all Proofs of Claim have been received and processed. If your claim is deemed eligible, which is subject to Court approval, any payment you are entitled to will be mailed approximately twelve months after the filing deadline. Please note that this is just an estimate. We will post notice on our website when the distribution process has started.
11. What do I do if I do not want to be a part of this settlement?
A. If you want to bring or continue your own suit against the defendants you must exclude yourself from the Class. To exclude yourself from the Settlement, you must send a letter by mail to the Claims Administrator saying that you want to be excluded from In re Tyco International Ltd. Securities Litigation Settlement. If you wish to exclude yourself from the Class, be sure to include your name, address, telephone number, and signature, and mail your exclusion request postmarked no later than September 28, 2007 to:
Tyco International Ltd. Securities Litigation Settlement
c/o The Garden City Group, Inc.
Exclusions
Claims Administrator
P.O. Box 9199
Dublin, OH 43017-4199
Requests for exclusion must also list the amount and type of all Tyco Securities purchased, otherwise acquired, or sold during the Class Period, the prices paid or received, the date of each transaction and the amount or number of Tyco Securities held as of the beginning of the Class Period on December 13, 1999.
If you do not want to participate in the settlement, do not complete and submit a Proof of Claim form. You are under no obligation to participate in the Tyco Securities Litigation Settlement. However, the only method to obtain proceeds from the settlement is to submit a timely and complete Claim form. Please refer to the Notice of Proposed Settlement for further information.
12. What happens if I do not do anything?
A. If you do nothing, you will not be eligible to receive a payment from the settlement fund, but you will be bound by the terms of the settlement - including the release of claims against Tyco, PwC and others. Please refer to the Notice of Proposed Settlement for further information.
13. Who is the Claims Administrator?
A. The Garden City Group, Inc.
14. Where can I obtain additional information about the litigation?
A. You may obtain additional information about the litigation by calling the toll-free hotline at (888) 326-8965. Please do not contact the Court.
15. Where can I obtain a copy of the Settlement Notice and/or the Proof of Claim Form?
A. You can obtain a Settlement Notice and Proof of Claim Form by calling (888) 326-8965 or by clicking on one of the following links: Notice, Proof of Claim Form
16. When must I submit my Proof of Claim Form?
A. Your Proof of Claim form must be sent to the Claims Administrator and postmarked no later than December 28, 2007.
17. Do I have to give my claim form to my broker (Financial Advisor) or can I send it in?
A. There is no requirement that you use a broker or other agent to submit a Proof of Claim. Unless you have authorized and directed your broker or agent to submit a Proof of Claim on your behalf, you should submit your claim yourself. The Proof of Claim requires information that should be readily available to you from your own financial records.
If you are not an institution filing electronically, you should mail your claim form directly to the Claims Administrator at the following address:
TYCO Securities Litigation Settlement
c/o The Garden City Group, Inc.
Claims Administrator
P.O. Box 9156
Dublin, OH 43017-4156
18. If I have further questions, can I submit my questions via telephone or email?
A. If you have questions which are not answered by this website, please contact us at the telephone number (888) 326-8965. This hotline contains various information about the settlement and there are operators available from 8:00am to 6:00pm Eastern. You can also reach us online at
questions@tycoclasssettlement.com.
19. How will I know when my Proof of Claim form has been received by the Claims Administrator?
A. Approximately 30 days after receipt of your claim form, the Claims Administrator will mail you a postcard acknowledging receipt.
Please note that as we process claims, we will also notify you in writing if your claim is deficient or ineligible. Steps needed to cure your claim will be set forth in the correspondence sent to you.
20. If we are a financial institution that served as an advisor to numerous clients, can we file claim forms on their behalf? Can we group all our clients together using this method?
A. Provided that you are authorized to do so by your clients, and you provide us with copies of that authorization, then, yes, you may file on behalf of your clients who have so authorized you. If you would like to file these claims together, you should file electronically. You may file electronically by following the instructions on our website here.
|