United States District Court, S.D. California
September 15, 2005.
In re ALLIANCE EQUIPMENT LEASE PROGRAM SECURITIES LITIGATION. This Documents Relates To: All Actions, Courtroom 12.
The opinion of the court was delivered by: NAPOLEON JONES, District Judge
STIPULATION OF SETTLEMENT
This Stipulation is between Lois J. Reynolds and La Voi B.
Congdon ("Settling Class Members"), members of the Plaintiff
Class and broker defendant Tony Sellers ("Settling Defendant"), a
member of the Defendant Class (collectively the "Parties"). This
Stipulation is intended to provide for the full satisfaction of
the judgment entered against Settling Defendant.
On March 27, 2000, the Third Amended Consolidated Complaint
("TACC") was filed in this class action. Lead Plaintiffs alleged
that certain investment contracts offered by Alliance Leasing
Corporation ("Alliance") were securities and that individual
brokers offered and sold the Alliance securities to investors.
Plaintiffs further alleged the defendant brokers are liable for
damages to Plaintiffs pursuant to Section 12(1) of the Securities
Act of 1933.
On February 27, 2004 Lead Plaintiffs filed a Motion for Summary
Judgment against members of the Defendant Class who sold Alliance
securities to participating Class Members.
On July 1, 2004, this Court granted Lead Plaintiffs' motion for
summary judgment and entered judgment against defendant class members, including
Settling Defendant. The Court awarded damages in favor of the
Settling Class Members, and against the Settling Defendant, in
the total amount of $44,883, including pre-judgment interest.
Settling Defendant has claimed extreme financial difficulty. He
has prepared and submitted to Lead Plaintiffs Counsel
documentation supporting his financial difficulty, including
additional legal claims against him in other actions. Settling
Class Members have considered this information and, after
reviewing their options, Settling Class Members have determined
to accept Settling Defendant's offer of settlement, as set forth
NOW, THEREFORE, Settling Defendant desires to satisfy the
judgment against him, and the Settling Class Members desire to
collect upon the judgment, the Parties stipulate as follows:
1. Settling Defendant agrees to pay, immediately upon
execution of this Stipulation, the total sum of
$3,850.00, in complete and total settlement and
satisfaction of the judgments against him.
2. Settling Defendant agrees to mail payment to the
office of Krause, Kalfayan, Benink & Slavens, LLP at
the address above, as follows:
a. By making one check payable to the Krause &
Kalfayan client trust account fbo Lois J. Reynolds,
in the total amount of $1,000.
b. By making one check payable to the Krause &
Kalfayan client trust account fbo La Voi B. Congdon,
in the total amount of $2,850.00.
3. By signing this stipulation below, Settling
Defendant represents and warrants to this Court and
to all parties involved that the amount of this
settlement is the maximum amount of money he is
reasonably able to pay.
Lead Plaintiffs Counsel agrees to file this Stipulation with
the Court, and retain the Settlement Funds until the Court enters
an order approving of this Stipulation. If for any reason the
Court denies the Stipulation, the Stipulation shall be deemed
cancelled, and all funds paid and deposited by Settling Defendant
will be returned as soon as is practicable and the parties will
be returned to their respective positions as of the date of this
Stipulation. IT IS SO STIPULATED: ORDER APPROVING STIPULATION OF SETTLEMENT:
IT IS HEREBY ORDERED, ADJUDGED, AND DECREED:
That the Stipulation of Settlement is hereby approved. Lead
Plaintiffs' Counsel shall distribute the net Settlement Funds,
after deducting attorneys fees and expenses, in accordance with
this Court's Order Granting In Part Lead Plaintiffs' Motion For
Attorneys' Fees and Reimbursement of Expenses; and Permission To
Distribute Net Settlement Funds, dated December 17, 2004.
IT IS SO ORDERED.
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