|Court:||Amsterdam Court of Appeal, The Netherlands|
Note: For information about the action related to Converium before the U.S. District Court for the Southern District of New York, please see the case description for Converium Holdings AG (U.S. Action).
Settlements on behalf of foreign investors who purchased Converium stock on the SWX Swiss Exchange or any other stock exchange outside the United States (the "Non-U.S. Exchange Purchasers") during the period from January 7, 2002 through September 2, 2004 have been reached with Converium and Zurich Financial Services ("ZFS").
In July 2010, the Stichting Converium Securities Compensation Foundation (the "Foundation") and Vereniging VEB NCVB ("VEB") entered into separate settlement agreements with Converium and ZFS, respectively (the "Settlement Agreements") for a total settlement amount of $58,400,000 (USD) — $40,000,000 (USD) from Converium and $18,400,000 (USD) from ZFS. The total settlement amount, less the fee of the Foundation's U.S. counsel in the amount of $11,680,000 and certain other costs, such as costs for implementing the Settlement Agreements, will be made available to Non-U.S. Exchange Purchasers by way of compensation in accordance with the provisions of the Settlement Distribution Plan that is part of the Settlement Agreements.
On 9 July 2010, the Foundation, VEB, Converium, and ZFS jointly filed a petition with the Amsterdam Court of Appeal in The Netherlands (the "Court"), and on October 1, 2010 an amended petition, to have the Agreements declared binding on all Non-U.S. Exchange Purchasers pursuant to Article 7:907 of the Dutch Civil Code.
By Court Order of November 12, 2010, the Court pronounced in a provisional judgment that it is competent to take cognizance of the request in the joint petition of October 1, 2010 and decided that interested parties may present their arguments in a statement of defense or at the oral hearing of the petition. The Court held a hearing on October 3, 2011, and on January 17, 2012 declared the Settlement Agreements binding.
Further to the provisions of the Settlement Agreements, notice of the binding declaration has been sent to all known Non-U.S. Exchange Purchasers. The Notice sets out how, and before what date, Non-U.S. Exchange Purchasers who do not wish to be bound by the Settlement Agreements must submit an opt-out request. The Notice also refers to the Claim Form which must be timely filed with the claims administrator in order for a Non-U.S. Exchange Purchaser to be eligible to participate in the proceeds of the Settlements. Both the Notice and the Claim Form can be accessed here. After the relevant dates for filing opt-out requests and for filing Claim Forms have passed and claims processing has been completed, the net settlement amounts will be distributed pursuant to the terms of the Settlement Distribution Plan.
Copies of the Claim Form, Notice, the Settlement Distribution Plan, the Settlement Agreements, and other documents relating to these settlements can be accessed by clicking Case Documents on the right.
- Events BLB&G Associate Brittney Balser to Speak on GAPPT Trustee School Panel, “What Happened to This Bank? An Investor’s Perspective on Bank Failures, Contagion, and Fraud” September 12, 2023 Learn More
- Events BLB&G Senior Counsel Catherine van Kampen to Moderate NJSBA CLE Webinar “What Lawyers Need to Know to Combat Antisemitism” September 8, 2023 Learn More
- News BLB&G Receives Approval of a Landmark $1 Billion Settlement for Shareholders in Wells Fargo Securities Class Action September 8, 2023 Learn More
- Awards BLB&G Senior Counsel Catherine van Kampen Recognized as 2023 Outstanding Volunteer by American Bar Association International Law Section August 25, 2023 Learn More
- Awards BLB&G Partner Katie Sinderson Appointed Co-Chair of Federal Bar Council Securities Litigation Committee August 23, 2023 Learn More