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Welcome to the Thomas G. Ong, et al., v. Sears, Roebuck and Co., et al. class action
settlement website.
Please read this information carefully. If you are a Settlement Class Member (as
defined below), your rights will be affected by these proceedings and you may be
entitled to receive benefits under a proposed settlement.
All persons and entities who, between October 24, 2001 and October 17, 2002, inclusive,
purchased and/or otherwise acquired Sears Roebuck Acceptance Corp. ("SRAC") Securities,
including without limitation, all persons and entities who purchased and/or otherwise
acquired SRAC Securities in a registered public offering or purchased SRAC Securities
pursuant to and/or traceable to a prospectus or registration statement, you could
get a payment from this class action settlement.
Securities Brokers and other Nominees: Please see instructions at the end of the
Notice.
Settlement Fairness Hearing
The settlement was approved in a court hearing held on May 1, 2008 at the United
States District Court for the Northern District of Illinois, Eastern Division, Everett
McKinley Dirksen Building, Courtroom 2119, 219 South Dearborn Street, Chicago, Illinois
60604. The Court approved the plan of allocation, and proposed fees and expenses.
Lead Plaintiffs’ Allegations
The Third Amended Class Action Complaint for Violations of Federal Securities Laws
dated October 28, 2005 (the “Complaint”) filed in the Action generally alleges,
among other things, that the Sears Defendants issued materially false and misleading
press releases and other statements regarding Sears’ credit card operations during
the Class Period — October 24, 2001 through and including October 17, 2002 — in
an effort to make those operations appear more stable and profitable than they actually
were.
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More specifically, the Complaint alleges that, during the Class Period, the Sears
Defendants concealed material adverse information concerning the financial condition,
performance and prospects of Sears’ credit card operations, and that the Sears Defendants
issued a series of falsely positive statements in which, inter alia, they allegedly:
(i) misrepresented the performance and quality of Sears’ credit card operations
and concealed the deteriorating condition of those operations; (ii) misled the investing
public into believing that the delinquency and charge-off rates of Sears’ credit
card products were comparable to, or better than, those of other leading credit
card issuers; and (iii) failed to disclose that Sears’ reserves for bad credit card
debt were materially inadequate. The Complaint alleges that these purported material
misrepresentations and omissions caused Sears’ and SRAC’s public statements issued
during the Class Period to be materially false and misleading, in violation of the
federal securities laws.
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IMPORTANT DATES & DEADLINES
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File a Claim: |
Postmarked no later than July 8, 2008
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EXPIRED: Opt-Out/Exclusion:
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Postmarked no later than April 14, 2008 |
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EXPIRED: File an Objection: |
On or before April 14, 2008
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Fairness Hearing: |
May 1, 2008
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The Defendants deny all allegations of misconduct contained in the Complaint, and
deny having engaged in any wrongdoing whatsoever. The Defendants maintain that the
allegedly false and misleading statements were truthful and not misleading, and
that all material facts were disclosed. In addition, the Defendants have asserted
numerous affirmative defenses.
Terms of the Settlement
In exchange for the settlement and dismissal of the Action, Defendants agreed that
within seven (7) business days of entry by the Court of an order granting preliminary
approval of the settlement, Sears will cause the Settlement Amount (a payment equal
to Fifteen Million, Five-Hundred Thousand Dollars ($15,500,000) in cash) to be paid
into escrow for the benefit of the Settlement Class. The Settlement Amount, after
deducting costs of notice and Settlement administration, and attorneys’ fees and
expenses approved by the Court, will be divided among Class Members who purchased
SRAC Securities between October 24, 2001 and October 17, 2002, inclusive and who
send in a valid Proof of Claim form.
The Rights of the Settlement Class Members
If you are a Settlement Class Member, you have the following options:
- If you wish to remain a member of the Class, you may share in the proceeds of the
Settlement, provided that you submit an acceptable Proof of Claim by following the
instructions in the Notice. (See Notice, Question 10) If you submit a valid Proof
of Claim form, you WILL be bound by this Settlement and you WILL be entitled to
a share of the Settlement Fund. In order to be eligible to receive any distribution
from the Settlement Fund, you must send a properly executed Proof of Claim by first
class mail postmarked no later than July 8, 2008 to the Claims Administrator.
- If you do not wish to remain a member of the Class, you may exclude
yourself from the Class by following the instructions in the Notice. (See Notice,
Question 13) Persons or entities who exclude themselves from the Class will NOT
be bound by this Settlement, but will NOT receive any share of the Settlement Fund.
If you are a Settlement Class Member and you do not properly exclude yourself from
the Class, you will be bound by the Settlement and the Order and Final Judgment
of the Court, even if you do not submit a Proof of Claim. The time to exclude yourself
has expired. Written requests to Claims Administrator had to be mailed and postmarked
no later than April 14, 2008.
- If you object to the Settlement or to Lead Plaintiffs’ Counsel’s
application for fees and expenses, but do not exclude yourself from the Class, you
may present your objections under the procedures described in the Notice. (See Notice,
Question 17) The time to file objection(s) has expired. All requests had to be filed
with the Court and served on Counsel on or before April 14, 2008.
Claims Submission and Settlement Administration
The Claims Administrator will notify in writing all Settlement Class Members whose
Proofs of Claim they propose to reject, in whole or in part, setting forth the reasons
for the proposed rejection.
Any Settlement Class Member who does not submit a timely and valid Proof of Claim
will not be entitled to receive proceeds from the Net Settlement Fund, but WILL
be bound by the terms of the Stipulation and Agreement of Settlement, including
the covenants and releases barring any action against the Release Parties concerning
the Settled Claims unless you filed a timely exclusion.
All inquiries concerning the Notice or the Proof of Claim form by Settlement Class
Members should be made to the Claims Administrator in writing and not to the Court.
Further Information
Further information regarding the Action and the Notice may be obtained by clicking
on the "Contact Information" link at the left.
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