- What is this lawsuit about?
- Why did I get this notice package in the mail?
- Why is this a class action?
- Why is there a settlement?
- How do I know if I am part of the class?
- Who is not included in the class? (Who is excluded?)
- What does the settlement provide? (What are the benefits?)
- What was the deadline for filing a Claim?
- How much will my payment be?
- How can I get a payment?
- When will I get my payment?
- What am I giving up to get a payment or stay in the class?
- If I excluded myself, can I receive Settlement benefits?
- Do I have a lawyer in this case?
- How will the lawyers be paid?
- When and where did the Court decide whether to approve the settlement?
- How do I get more information?
- I have questions about my Ameriprise/American Express Investment accounts.
- I am hearing impaired, do you have a special TDD line?
Plaintiffs alleged Defendants gave clients financial plans and/or advice that was tainted by inadequately disclosed conflicts of interest. Specifically, Plaintiffs alleged that clients who purchased financial advice, financial plans, or other financial advisory services, during the class period, were given investment recommendations that were improperly influenced by Defendants’ financial interests rather than the individual needs of the clients. These financial interests were not sufficiently disclosed to clients. Based on these factual allegations, Plaintiffs asserted claims against Defendants under The Securities Act of 1933; the Securities Exchange Act of 1934; the Investment Advisers Act of 1940; the Minnesota Uniform Deceptive Trade Practices Act, Minnesota Consumer Fraud Act, Minnesota False Advertisement Act, and Minnesota Unlawful Trade Practices Act; and for breach of fiduciary duty and unjust enrichment.
Defendants denied any wrongdoing and raised numerous defenses.
You were mailed a notice packet because you or someone in your family has been identified as someone who may have purchased one of the mutual funds, financial plans, or fee-for-advice services at issue in this case.
The Court directed that the notice be sent to you because you have a right to know about this class action settlement that will resolve claims based on those mutual funds, financial plans, or fee-for-advice services and about all of your options. The package explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.
A class action lawsuit is when one or more people called class representatives sue on behalf of people who have similar claims. All these people together constitute a plaintiff class.
In this case the class representatives are Plaintiffs Leonard D. Caldwell, Carol M. Anderson, Donald G. Dobbs, Kathie Kerr, Susan M. Rangeley, and Patrick J. Wollmering.
This is a class action because one court resolves all class-wide issues for all people who meet the class definition, except for those who exclude themselves from the class.
The Settlement Fairness Hearing was held on July 13, 2007, at 11:00 a.m., at the United States District Court for the Southern District of New York. At this hearing, the Court granted Final Approval of the Settlement, Attorney Fees, and Incentive Awards.
The Court did not decide in favor of or against Plaintiffs or Defendants. Instead, these parties agreed to a settlement. The settlement was reached after the parties had fully briefed, but the Court had not decided, a motion to dismiss the case.
Through the settlement, the parties avoid the risks, delay, and cost of preparing for and going to trial, and the Class Members affected will get compensation. Plaintiffs and their attorneys think the settlement is in the best interests of the Class as a whole.
You are a Class Member if, at any time from and including March 10, 1999 through and including April 1, 2006 you:
(a) paid a fee for financial advisory services as described in the American Express or Ameriprise Financial Advisory Services Brochure and the Financial Advisory Service Agreement; or
(b) purchased any mutual fund in the American Express or Ameriprise Preferred Provider Program, Select Group Program, or other similar program – a list of funds is attached to the Notice; or
(c) purchased any mutual fund sold under the American Express, AXP, or RiverSource brand – a list of funds is attached to the Notice; or
(d) paid a fee for financial advice, financial planning, or other financial advisory services rendered in connection with the American Express or Ameriprise Strategic Portfolio Service program, Wealth Management Service program, or Separately Managed Account program.
Excluded from the class are the Defendants; Nominal Defendants; members of Defendant James M. Cracchiolo’s immediate family; the employees and agents of any of the Defendants and Nominal Defendants (including financial advisors) during the Class Period; any entity in which any Defendant or Nominal Defendant has or had a controlling interest; and the legal affiliates, representatives, heirs, controlling persons, successors, and predecessors in interest or assigns of any such excluded party. Additionally, any Class Member who submitted a timely and valid exclusion request.
Defendants have paid $100,000,000 into an interest-bearing account. This amount plus interest makes up the settlement fund. After deducting Court-awarded attorneys’ fees and expenses and taxes on income earned by the fund, the balance of this fund will be allocated among all Class Members who submitted a valid proof of claim postmarked by July 10, 2007.
Defendants will also pay all reasonable costs of notifying Class Members of the settlement and all reasonable costs of settlement administration. These costs will not be charged to the settlement fund.
In addition, Defendants will adopt and implement remedial measures that require that Defendants provide training to all financial advisors on mutual fund selection; reiterate to all financial advisors and field managers that their investment recommendations should be based primarily on individual suitability considerations; restrict the use of product sales contests; remind financial advisors that recommendations of mutual funds to clients need be accompanied by appropriate written disclosures explaining financial advisor compensation and any fees/expenses associated with the mutual funds being recommended; prominently display on its website links to disclosures on mutual fund fees and expenses and advisor compensation; and prominently display on its internal financial advisor website a link to enhanced information on client suitability and guidelines for product sales and disclosure of fees, expenses and compensation.
You must have completed your Claim Form, attached any of the required documentation, and mailed it postmarked no later than July 10, 2007.
Under the Court-approved plan of allocation for the settlement fund, a Class Member’s actual recovery depends upon the dollar amount of valid claims submitted by all Class Members, any amount paid in the mutual funds at issue, and any amount paid for an American Express financial plan or other financial advice. To qualify for payment, Class Members were required to send in a simple Proof of Claim Form postmarked no later than July 10, 2007.
For more specific details, you may review the plan of allocation attached to the notice.
To qualify for payment, you must have submitted a Proof of Claim form postmarked no later than July 10, 2007.
The Settlement Fairness Hearing was held on July 13, 2007 at 11:00 am, at the U.S. District Court for the Southern District of New York. At this hearing, the Court granted Final Approval of the Settlement, Attorney Fees, and Incentive Awards.
All appeals regarding the Court’s approval of the Settlement have been resolved. Settlement benefits will be distributed to eligible Class Members who filed timely and valid Claim Forms postmarked by July 10, 2007. The distribution will commence on September 30, 2008.
If you did not exclude yourself and chose to remain a Class Member, you have given up the right to bring or participate in any other cases based upon the same or similar claims made in this Settlement. If you remained a Class Member, all of the Court’s orders will apply to you and legally bind you.
If you do not want a payment from this settlement, but you want to keep the right to sue or continue to assert any of the Released Claims on your own against any Defendant or other Released Person, then you must have taken steps to get out of the class. This is called excluding yourself from, and is sometimes referred to as “opting out” of, the class.
No. You may, however, bring a lawsuit, continue to pursue an existing lawsuit, or be part of a different lawsuit asserting a Released Claim against a Released Person.
Yes, the Court ordered that the Class Members will be represented by 3 law firms.
- Girard Gibbs LLP, 601 California Street, Suite 1400, San Francisco, California 94108,
Telephone (415) 981-4800;
- Milberg Weiss Bershad & Schulman LLP, One Pennsylvania Plaza,
New York, New York 10119-0165, Telephone (212) 594-5300; and
- Stull Stull & Brody, 6 East 45th Street, New York, New York 10017, Telephone (212) 687-7230.
These law firms are called Plaintiffs’ Co-Lead Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.
Plaintiffs’ Co-Lead Counsel asked the Court to award attorneys’ fees from the settlement fund in an amount not to exceed 27% of the settlement fund, and for reimbursement of expenses incurred in connection with the prosecution of this litigation in the approximate amount of $1 million, plus interest on such fees and expenses at the same rate as earned by the settlement fund. Plaintiffs’ Co-Lead Counsel, without further notice to the class, may subsequently apply to the Court for fees and expenses incurred in connection with administering and distributing the settlement proceeds to Class Members and any proceedings after the fairness hearing.
The Settlement Fairness Hearing was held on July 13, 2007 at 11:00 am, at the U.S. District Court for the Southern District of New York. At this hearing, the Court granted Final Approval of the Settlement, Attorney Fees, and Incentive Awards.
All appeals regarding the Court’s approval of the Settlement have been resolved. Settlement benefits will be distributed to eligible Class Members who filed timely and valid Claim Forms postmarked by July 10, 2007.
You may obtain more details about the settlement, including a copy of the Stipulation of Settlement, available on this website.
To speak directly with a representative from Ameriprise/American Express regarding any specific questions you may have about your account(s), please call toll-free 1 (800) 862-7919.
Yes. Hearing impaired class members will be instructed to call toll free at 1 (888) 250-5835.
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