Market Overview

Robbins Geller Rudman & Dowd LLP Announces Proposed Settlement of Class Action

SAN DIEGO--(BUSINESS WIRE)--

The following statement is being issued by Robbins Geller Rudman & Dowd LLP pursuant to an order of the United States District Court for the District of New Mexico:

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

   

GENESEE COUNTY EMPLOYEES'
RETIREMENT SYSTEM, et al., On Behalf of
Themselves and All Others Similarly Situated,
                                        Plaintiffs,

                        vs.

 

THORNBURG MORTGAGE, INC., et al.,
                                        Defendants.

  )

)

)

)

)

)

)

)

No. 1:09-cv-00300-JB-KBM

 

CLASS ACTION

 

SUMMARY NOTICE

 

You could receive a payment from a class action settlement if you purchased or otherwise acquired the (i) Series 2006-3 mortgage loan pass-through certificates sponsored by Thornburg Mortgage Home Loans, Inc. and issued by Thornburg Mortgage Securities Trust 2006-3 during the period June 1, 2006 through June 30, 2009, inclusive; and/or (ii) Series 2006-5 and/or Series 2007-4 mortgage loan pass-through certificates sponsored by Thornburg Mortgage Home Loans, Inc. and issued by Thornburg Mortgage Securities Trust 2006-5 and Thornburg Mortgage Securities Trust 2007-4 during the period June 1, 2006 through December 10, 2010, inclusive.

An $11,250,000 settlement has been proposed in a class action lawsuit concerning purchasers or acquirers of the Series 2006-3, 2006-5 and/or 2007-4 mortgage loan pass-through certificates sponsored by Thornburg Mortgage Home Loans, Inc. and issued by Thornburg Mortgage Securities Trust 2006-3, Thornburg Mortgage Securities Trust 2006-5, and Thornburg Mortgage Securities Trust 2007-4 and registered and offered pursuant to shelf registration statements, prospectuses and prospectus supplements filed with the United States Securities and Exchange Commission (the “Certificates”) during the Relevant Time Period described above. If you qualify, you may send in a claim form to get benefits, or you can exclude yourself from the settlement, or object to it.

The United States District Court for the District of New Mexico authorized this Notice. Before any money is paid, the Court will have a hearing to decide whether to approve the settlement.

Who Is Included?

You are a Settlement Class Member and could get benefits if you purchased or otherwise acquired a beneficial interest in (i) the Series 2006-3 Certificates during the period from June 1, 2006 through June 30, 2009, inclusive; and/or (ii) the Series 2006-5 and/or Series 2007-4 Certificates during the period from June 1, 2006 through December 10, 2010, inclusive.

Pursuant to an Order by the Court, you are not a Settlement Class Member if you are a Defendant, a Covered Trust, Thornburg or any originator of mortgage loans underlying the Certificates, as well as each and all of the foregoing person's respective officers, affiliates, and directors at all relevant times, members of their immediate families, and their legal representatives, heirs, successors, or assigns and any entity in which such persons have or had a controlling interest, and any Person who timely and validly seeks exclusion from the Settlement Class.

If you are not sure whether you are a Settlement Class Member, you can get more information, including a detailed notice, at www.gilardi.com or by calling toll free 1-800-282-8766.

What Is This Lawsuit About?

The Action claims that Defendants prepared and issued materially false and misleading Registration Statements and Prospectus Supplements in violation of §11, §12(a)(2) and §15 of the Securities Act of 1933 and §58-13B of the New Mexico Securities Act of 1986 in connection with the sale of Thornburg Series 2006-3, 2006-5 and 2007-4 mortgage loan pass-through certificates, including misrepresentations regarding the loan origination and underwriting standards used by the Defendants and their affiliates; the validity of the property appraisals conducted in connection with the issuance of the loans; the LTV ratios of the mortgages; and the credit ratings. All of the Defendants deny they did anything wrong.

What Does The Settlement Provide?

Defendants have agreed to create a $11,250,000 fund to be divided on a pro rata basis among all Settlement Class Members who send in a valid claim form, after payment of the costs and expenses reasonably and actually incurred in connection with providing notice to the Settlement Class, locating Settlement Class Members, soliciting claims, assisting with the filing of claims, and paying escrow fees and costs, if any (including any taxes).

Your share of the fund will depend on the number of valid claim forms that Settlement Class Members send in, how many Certificates you purchased or acquired, and whether you sold your Certificates.

In simple terms, a Settlement Class Member's Recognized Loss is calculated by subtracting any Principal Payments Received and Sale Proceeds from the Original Investment Amount. The Plan of Allocation, which explains the calculation in more detail, is available at www.gilardi.com or by calling toll free 1-800-282-8766.

How Do You Ask for Payment?

A detailed notice and claim form package contains everything you need. Just call or visit the website below to get one. To qualify for a payment, you must send in a claim form. Claim forms are due by March 26, 2013.

What Are Your Other Options?

If you do not wish to be legally bound by the settlement, you must exclude yourself by February 11, 2013, or you won't be able to sue, or continue to sue, Defendants for the legal claims in this case. If you exclude yourself, you can't get money from this settlement. If you stay in the settlement, you may object to it by February 11, 2013. The detailed notice explains how to exclude yourself or object.

The Court will hold a hearing in this case (Genesee County Employees' Retirement System v. Thornburg Mortgage, Inc., No. 1:09-cv-00300 (D.N.M.)) on February 25, 2013, at 9:00 a.m. to consider whether to approve the settlement and a request by the law firms representing Settlement Class Members for reimbursement of their costs up to $225,000 and to award Midwest Operating Engineers Pension Trust Fund $9,808 as reasonable costs and expenses directly relating to the representation of the Settlement Class. In addition, the lawyers will seek an award of attorneys' fees in an amount not to exceed 21% of the Settlement Fund (or $2.36 million), net of Court-approved expenses, plus interest earned at the same rate and for the same period as earned by the Settlement Fund, for investigating the facts, litigating the case and negotiating the settlement without payment over the past three years. You may ask to appear at the hearing, but you don't have to.

For more information, call toll free 1-800-282-8766, visit www.gilardi.com, or write to Rick Nelson, c/o Shareholder Relations, Robbins Geller Rudman & Dowd LLP, 655 West Broadway, Suite 1900, San Diego, CA 92101.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE

Dated: December 10, 2012

BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
DISTRICT OF NEW MEXICO

Robbins Geller Rudman & Dowd LLP
Rick Nelson, 800-449-4900

 

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters