Court Issues Settlement Order in Nation's Largest Investment Manager Fraud Case.

Business Editors/Legal Writers

PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 10, 2002

On Thursday, Judge Garr King of the U.S. District Court for Oregon issued a settlement order governing the return of almost $300 million in settlements and other assets recovered in what the Securities and Exchange Commission has called the largest investment manager fraud case in U.S. history.

The court-approved funds will be distributed by the Receiver, Tom Lennon, among hundreds of trusts and private clients.

For a case of this magnitude, it was anticipated it would take nearly a decade to resolve, but took two years. "It is gratifying to know that hard work and cooperative efforts of all the parties have enabled us to resolve this quickly and efficiently," said lead plaintiff's counsel, Stephen F. English of Bullivant Houser Bailey PC. "We are particularly pleased that the pensioners will go in to the holiday season knowing that they will recover their rightful funds."

The settlements will return approximately 60 percent of the at-risk investments. "I am unaware of any cases of this magnitude returning this percentage recovery," said King during the case. "It is remarkable that the litigation costs were far below anything generally experienced in these cases."

Settlements were approved by counsel for all parties (64 attorneys), 184 individuals and entities on behalf of plaintiffs, and 68 individuals and entities on behalf of settling defendants.

History of Capital Consultants LLC (CCL)

The original lawsuits against Capital Consultants, formerly one of the most well-respected investment firms in the country, and other responsible parties were filed in consortium in September 2000. They contend that an elaborate Ponzi scheme concocted by the company and its advisors was responsible for a loss of nearly $500 million in investments. Many of Capital Consultants' largest clients were Taft-Hartley funds and single employer ERISA plans. The losses bilked an estimated 100,000 ERISA plan beneficiaries in almost 50 states out of their retirement savings and depleted funds for health benefits.

About Bullivant Houser Bailey PC

Founded in 1938, Bullivant Houser Bailey PC is a 175-attorney, full-service law firm. A premier trial firm, Bullivant is lead counsel on the largest pension fraud case in the nation's history. Bullivant's attorneys utilize more than 60 years of experience trying cases, working aggressively to pursue litigation strategies that will obtain early, favorable and cost-effective results for its clients. Bullivant has seven Western offices in Seattle and Vancouver, Wash., Portland, Ore., Sacramento, San Francisco and Irvine, Calif. and Las Vegas, Nev. Further information is available at www.bullivant.com.