Your legal rights are affected even if you do nothing. Please read this notice carefully.

Transcription

1 THE CIRCUIT COURT OF KANAWHA COUNTY, WEST VIRGINIA If You Are a Current or Former West Virginia School Employee Enrolled in the WV Teacher Retirement System and Transferred Retirement Funds from the System s Defined Benefit Plan to the Defined Contribution Plan between October 8, 1991 and July 1, 2008 Your Rights May Be Affected By a Class Action Settlement A West Virginia state court authorized this notice. This is not a solicitation from a lawyer. A c l a s s a c t i on Settlement has been reached by the West Virginia Consolidated Public Retirement Board ( WVCPRB ) and Cheryl Dougherty, individually, and on behalf of all others similarly situated ( Settlement Class Members ) in a lawsuit involving WVCPRB s role in the purchase and/or transfer of funds from the Defined Benefit Plan to the VALIC Defined Contribution Plan, resulting in participants investment losses and other such damages. This Settlement only involves WVCPRB. Litigation is still being pursued in the pending class action lawsuit against the other Defendants including the Variable Annuity Life Insurance Company ( VALIC ). Generally, the Settlement includes all current and former West Virginia school employees who were enrolled in the West Virginia Teacher Retirement System and transferred their retirement funds from the System s Defined Benefit Plan to the Defined Contribution Plan between October 8, 1991 and July 1, 2008, who upon transferring to the Defined Contribution Plan purchased the Fixed Annuity product that was offered as one option within the plan (the VALIC Fixed Annuity ), and who later transferred back to the Defined Benefit Plan. The Settlement provides that WVCPRB will pay $75,000, inclusive of costs and fees, in exchange for a full release of all claims against it. It is proposed that $5,000 of the proceeds will be paid to Class Representative, Cheryl Dougherty, for her efforts in prosecuting this matter since The remaining funds will not be distributed to the Settlement Class Members, but will be used to pay historical and future litigation costs and expenses incurred by counsel in continuing the litigation against the non-settling defendants. DO NOTHING OPT OUT OBJECT GO TO A HEARING Your legal rights are affected even if you do nothing. Please read this notice carefully. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT Remain in the Settlement. Write to the Settlement Administrator to request to be excluded. Write to the Court if you do not like the Settlement. Ask to speak in Court about the fairness of the Settlement. These rights and options and the deadlines to exercise them are explained in this notice. The Court in charge of this case still has to decide whether to approve the Settlement. Payments will only be made if the Court approves the Settlement.

2 What This Notice Contains BASIC INFORMATION Why is there a notice? 2. What is this lawsuit about? 3. Why is this a class action? 4. Why is there a Settlement? WHO IS PART OF THE SETTLEMENT? Who is included in the Settlement? 6. What if I am not sure whether I am included in the Settlement? THE SETTLEMENT BENEFITS What does the Settlement provide? 8. What if I do not want to take part in the Settlement and I want to sue WVCPRB on my own? EXCLUDING YOURSELF FROM THE SETTLEMENT How do I get out of the Settlement? THE LAWYERS REPRESENTING YOU Do I have a lawyer in the case? 11. How will the lawyers be paid? OBJECTING TO THE SETTLEMENT How do I tell the Court if I do not like the Settlement? 13. What is the difference between objecting and asking to be excluded? THE FAIRNESS HEARING When and where will the Court decide whether to approve the Settlement? 15. Do I have to attend the hearing? 16. May I speak at the hearing? GETTING MORE INFORMATION How do I get more information? -2-

3 BASIC INFORMATION 1. Why is there a notice? A Court authorized this notice because you have a right to know about a proposed Settlement with one of the Defendants in this class action lawsuit and about all of your options before the Court decides whether to grant final approval to the Settlement. This notice explains the lawsuit, the Settlement, and your legal rights. The Honorable Carrie L. Webster is overseeing this case in the Circuit Court of Kanawha County, West Virginia. This litigation is known as Dougherty v. Cerra, et al., Civil Action No. 08-C The people who filed and prosecuted the lawsuit are called the Plaintiffs. The parties that were sued are the Defendants. The Defendants in this case are Ramona Cerra, individually; Greg Garrett, individually; Clarence Burdette, individually; VALIC; and WVCPRB. 2. What is this lawsuit about? The lawsuit claims that the Defendants improperly induced teachers, school service personnel and professional staff in the state of West Virginia to invest in VALIC annuities which, as a result of their purchase or transfer of retirement funds into these annuities, caused or resulted in the participants suffering investment losses, loss of principal, unnecessary expenses, devaluation of their protected retirement funds and individual and collective losses. It also claims that the Defendants did not exercise appropriate fiduciary caution and attention to the class members money from 1991 to WVCPRB denies these claims and maintains it did nothing wrong. Litigation is still being pursued against the other Defendants in this case. 3. Why is this a class action? In a class action, one or more people called Class Representatives sue on behalf of themselves and other people with similar claims. All of these people together are the Settlement Class or Class Members. In this case, the Plaintiff and proposed Class Representative is Cheryl Doughe rty. One court resolves the issues for all Class Members, except those who exclude themselves from the Class 4. Why is there a Settlement? The Court has not decided in favor of the Plaintiff or the Defendants. Instead, Plaintiff and WVCPRB (only one of the Defendants) have agreed to a Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial. The Class Representative and attorneys believe that the Settlement is in the best interest of the Settlement Class Members. The Settlement does not mean that the WVCPRB did anything wrong or improper. WHO IS PART OF THE SETTLEMENT? If you received a postcard about the Settlement in the mail, then you may be a Class Member. But even if you did not receive a mailed notice, you may be a Class Member, as described below. 5. Who is included in the Settlement? You are included in the Settlement if you are a current or former West Virginia school employee who: -3-

4 Enrolled in the West Virginia Teacher Retirement System and; Transferred retirement funds from the System s Defined Benefit Plan to the Defined Contribution Plan between October 8, 1991 and July 1, 2008, and; Upon transferring to the Defined Contribution Plan purchased the Fixed Annuity product that was offered as one option within the plan (the VALIC Fixed Annuity ) and then later transferred back to the Defined Benefit Plan. 6. What if I am not sure whether I am included in the Settlement? If you are not sure whether you are included in the Settlement, you may call with questions or visit You may also write with questions to: WVCPRB Settlement Administrator P.O. Box 4227 Charleston, WV What does the Settlement provide? THE SETTLEMENT BENEFITS If the Settlement is approved and any and all appeals are resolved in its favor (i.e., if it becomes final ), it will provide that WVCPRB pay $75,000 in exchange for a full and final release of all claims against it. Of the total settlement amount, $5,000 will be paid to the proposed Class Representative, Cheryl Dougherty, for her efforts in prosecuting this matter since 2008 and serving as the proposed Class Representative. The remaining $70,000 will not be distributed to the Settlement Class Members, but will be used to cover historical and future litigation costs and expense incurred by counsel in continuing the litigation against the non-settling Defendants. More details are available in the Settlement Agreement at 8. What if I do not want to take part in the Settlement and I want to sue WVCPRB on my own? If the Settlement becomes final, Class Members will not be able to sue WVCPRB or their respective trustees, employees, and other representatives on their own for matters covered by the Settlement. All Class Members will be bound by the Settlement and will be unable to separately pursue claims against WVCPRB or their respective trustees, employees, and other representatives. 9. How do I get out of the Settlement? EXCLUDING YOURSELF FROM THE SETTLEMENT To exclude yourself from the settlement, you must mail a letter or other written documentation that includes: Your name, address, and telephone number; A statement saying that you want to be excluded from the Class in Dougherty v. Cerra, et al., Civil Action No. 08-C-2080; and Your signature and date -4-

5 You must mail your exclusion request, postmarked by October 1, 2015, to the following address: 10. Do I have a lawyer in the case? WVCPRB Settlement Administrator P.O. Box 4227, Charleston, WV THE LAWYERS REPRESENTING YOU Yes. The Court has appointed lawyers to represent all Class Members as Class Counsel. They include: Harry F. Bell, Jr. The Bell Law Firm, PLLC 30 Capitol Street Charleston, WV A. Daniel Woska Woska Law Firm, PLLC 722 N. Broadway Oklahoma City, OK Charles R. Rusty Webb The Webb Law Centre 716 Lee Street Charleston, WV You will not be charged for contacting these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense. 11. How will the lawyers be paid? Class Counsel and all other eligible lawyers representing Class Members in the case will be paid for fees and reasonable expenses from a n y future Settlement Fund created as a result of the pending litigation. If that happens, the Court will decide the amount of fees and expenses to award. OBJECTING TO THE SETTLEMENT 12. How do I tell the Court if I do not like the Settlement? You can object to the Settlement if you do not like some part of it. The Court will consider your views. To object, you must submit a letter that includes: Your name, address, and telephone number; A statement saying that you object to the WVCPRB Settlement in Dougherty v. Cerra, et al., Civil Action No. 08-C-2080; The reasons you object to the Settlement, along with any supporting materials; A description of any and all evidence you may offer at the Final Approval Hearing; and Your signature You must mail your objection to each of the following addresses, and your objection must be postmarked by October 1, 2015: -5-

6 COURT Clerk of the Court Circuit Court of Kanawha County, West Virginia 409 Virginia St. East Charleston, WV Settlement Administrator WVCPRB Settlement Administrator PO Box 4227 Charleston, WV What is the difference between objecting and asking to be excluded? Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you do not exclude yourself from the Class. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you. THE FAIRNESS HEARING The Court will hold a hearing to decide whether to approve the Settlement and any requests for fees and expenses. You may attend and you may ask to speak, but you are not required to do so. 14. When and where will the Court decide whether to approve the Settlement? The Court will hold a Fairness Hearing at 10:00 am on October 29, 2015 in the Circuit Court of Kanawha County, on the 7th Floor of the Judicial Annex Building, at 111 Court Street in Charleston, WV The hearing may be moved to a different date or time without additional notice, so it is a good idea to check or call At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them and may listen to people who have asked to speak at the hearing. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take. 15. Do I have to attend the hearing? No. Class Counsel will answer questions the Court may have. But, you are welcome to attend at your expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also have your own lawyer attend, but it is not necessary. 16. May I speak at the hearing? You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter stating this is your Notice of Intention to Appear in Dougherty v. Cerra, et al., Civil Action No. 08-C Be sure to include your name, address, telephone number, and your signature. Your Notice of Intention to Appear must be postmarked no later than October 1, 2015, and must be sent to the addresses listed in Question

7 17. How do I get more information? GETTING MORE INFORMATION Complete details are found in the Settlement Agreement, which is available to you upon request. Please visit the Settlement website at to download this document, or call the toll-free Settlement hotline at You may submit in writing any requests or questions by mailing to WVCPRB Settlement, P.O. Box 4227, Charleston, WV Please provide all relevant contact information should a representative need to speak with you or correspond in any manner -7-