We have more details on Class Counsel’s Motion For An Order Approving Distribution Of Settlement Funds To Indirect Purchaser Consumer Subclass. De Beers settlement checks may be coming soon…
As part of the Motion, Amy Lake, a Senior Project Administrator with the Settlement Administrator, filed a Declaration Regarding the Claims Administration Process and Allocation and Distribution of the Consumer Settlement Fund. In her Declaration, Ms. Lake states that as of September 19, 2012, the Settlement Administrator had mailed Notice Packets to 42,504 potential Indirect Purchaser Consumer Subclass members. Further, the Settlement Administrator received and processed 537,657 online claims and 68,387 paper claims from potential Indirect Purchaser Consumer Subclass members.
From the paper claims, the Settlement Administrator determined that the claims were deficient if they a) contained incomplete purchase information or did not contain purchase information; b) were not completed on the Indirect Purchaser Consumer Subclass Corrected Consumer Proof of Claim and Release; c) did not provide proof of purchase for any jewelry item that cost $10,000 or more; d) provided proof of purchase that was illegible; e) were missing a signature; and/or f) provided purchases that were outside the Class Period.
From the internet submitted claims, the Settlement Administrator determined that the claims were deficient if they a) did not provide proof of purchase for any jewelry item that cost $10,000 or more; b) provided proof of purchase that was illegible; and/or c) provided purchases that were outside the Class Period.
The Settlement Administrator sent 39,888 letters via mail and 18,415 via email, advising these claimants their claims were deficient and allowing between 15 and 30 days to respond and cure the deficiencies.
The $295 million Settlement Fund was allocated as follows: a) $272.5 million to the Indirect Purchaser Class Settlement Fund with 50.3% ($137,067,500) of the total to the Indirect Purchaser Reseller Subclass Settlement Fund and 49.7%($135,432,500) of the total to the Indirect Purchaser Consumer Subclass Settlement Fund before deduction of taxes, attorneys’ fees and expenses, incentive awards to named plaintiffs, costs of administration, and any other amounts approved by the Court; and b) $22.5 million to the Direct Purchaser Class Settlement Fund before deduction of taxes, attorneys’ fees and expenses, incentive awards to named plaintiffs, costs of administration, and any other amounts approved by the Court.
The $135,432,500 Indirect Purchaser Consumer Subclass Settlement Fund grew to $153,251,075.85 due to accruing interest.
However, $44,523,927.08 has already been deducted from the fund for the costs of administering the settlement – including $2,324,564.76 in payments to the Settlement Administrator and $35,213,612.89 in attorneys’ fees.
Taking into account the estimated fees to still be paid, the net balance in the Consumer Subclass Settlement Fund as of February 28, 2013 is $107,929,082.45.
The Settlement Administrator determined that 551,909 claimants were eligible to receive a distribution from the Consumer Subclass Settlement Fund. However, the sum of the Recognized Claim Amounts for all Authorized Consumer Claimants is $2,016,260,349.27. Thus, each eligible award will be reduced pro rata.
The Settlement Administrator calculates the average award at $180.75, excluding outliers.
54,135 claims were determined to be ineligible by the Settlement Administrator.
22,951 claimants’ total payments are below the $10 threshold and are therefore not entitled to receive a payment. Those claimants will receive notice from the Settlement Administrator.
5820 claims were postmarked after the May 2008 deadline but they only represent less than 1% of the total claims on file and, therefore, the effect on timely claims is not significant. Class Counsel has asked the Court to treat these late claims as valid.
We will keep you updated as we know more.