COURT TO CONSIDER SETTLEMENT IN THORNBURG MORTGAGE SUIT.Byline: Bob Quick
The messy, long-running Thornburg Mortgage lawsuit could be coming to an end -- but it's dependent on whether thousands of shareholders of the bankrupt company are ready to accept a settlement of the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. .
The settlement fund consists of $2 million in cash, and if a settlement can be arranged, former common and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders.
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. shareholders would receive about one penny per damaged share.
Damaged shares are shares bought when a stock price was artificially high due to material omissions or misrepresentations, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the court filing.
"Please note: This average is only an estimate and is before court-approved fees and expenses," said a statement from the U.S. District Court in Albuquerque.
Reducing shareholders' potential return is the fact that attorneys' fees and expenses will have first claim on what remains of the assets.
Attorneys' fees for the Thornburg litigation will not be able to exceed 25 percent of the settlement amount.
Out-of-pocket expenses are not to exceed $260,000, plus interest earned on both amounts, a court document states.
A hearing will be held in the chambers of U.S. District Judge James O. Browning in Albuquerque starting at 9 a.m. Aug. 27 to consider the settlement. The court will consider:
* Whether the proposed settlement should be approved as fair, reasonable and adequate.
* Whether the litigation should be dismissed with prejudice against the settling defendants.
* Whether the proposed plan of allocation should be approved as fair and reasonable.
* Whether lead counsel's application for an award of attorneys' fees and reimbursement of expenses should be approved.
For more information -- and to obtain notice and proof of claims documents -- visit www.strategicclaims.net.
Garrett Thornburg came to Santa Fe in 1982 to start a mutual fund that evolved into the Thornburg Companies.
The firms Thornburg Mortgage and Thornburg Investment Management are separate entities and the investment company that manages domestic and foreign stock and bond funds continues to thrive.
But the mortgage company was highly leveraged, and as home values dropped and the credit crunch Credit Crunch
An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. intensified in 2008, the company could no longer borrow money.
The stock price of Thornburg Mortgage dropped from almost $30 per share to about 5 cents per share Cents per share
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. .
The mortgage firm filed for bankruptcy when the stock was worth only a few cents per share.
Litigation has continued since that time.
For more information, call the Claims Administrator, Strategic Claims Services at 1-866-274-4004.
Any objections to the proposed settlement plan and other related matters must be filed with the court on or before Aug. 6, in accordance set forth in the notice.
The settling defendants are Garrett Thornburg, Larry A. Goldstone gold·stone
An aventurine with gold-colored inclusions.
Noun 1. goldstone - aventurine spangled densely with fine gold-colored particles , Clarence Simmons, Anne-Drue M. Anderson, David A. Alter, Joseph H. Badal, Elliot R. Cutler, Paul G. Decoff, Michael B. Jeffers, Ike Kalangis, Owen M. Lopez, Francis I. Mullin III and Stuart C. Sherman.
Contact Bob Quick at 986-3011 or email@example.com.