Not what you're
looking for? Try an advanced search.
Buy This Entire Record For
IN RE WORLDCOM
November 10, 2004.
IN RE WORLDCOM, INC. SECURITIES LITIGATION.
The opinion of the court was delivered by: DENISE COTE, District Judge
ORDER ESTABLISHING ESCROW ACCOUNT TO FUND ANY AWARD TO LIAISON
COUNSEL IN INDIVIDUAL ACTIONS
Lowey Dannenberg Bemporad & Selinger, P.C. ("LDBS"), in its
capacity as Liaison Counsel in the WorldCom Securities
Litigation, has applied for a Set-Aside Order. LDBS seeks to
have a portion of any settlements or awards realized by any Individual Action plaintiffs ("IA Plaintiffs"), whether in these
consolidated proceedings or after transfer to another federal
district court for trial, set aside to fund any award of
attorneys' fees and costs that this Court might make for LDBS'
legal work and expenses for the common benefit of the IA
This Court has determined that an award to LBDS is appropriate,
but has not yet decided on the amount of the award or the
allocation among IA Plaintiffs, and retains complete freedom of
action on both issues. This Court has also concluded that the
creation of a fund is necessary to preserve a res against which
an application by LBDS may be made. Accordingly, LBDS'
application to create this fund is granted, and it is hereby
1. As used herein, the following terms are defined as
hereinafter set forth:
a. "Claim Payment" means any money or thing of value
paid or to be paid by any defendant to or for the
benefit of any plaintiff to settle any claim asserted
or to satisfy, in whole or in part, any judgment
rendered in any Individual Action.
b. "CRIS Escrow Account" means the Court Registry
Investment System interest-bearing account. c. "Escrow Amount" shall mean one percent (1%) of any
payment paid by defendant(s) to any plaintiff in any
2. Before making any Claim Payment, each paying defendant shall
deduct the Escrow Amount and pay the Escrow Amount to the Clerk
of Court for deposit to the CRIS Escrow Account. The funds thus
deposited, and any interest earned thereon, shall be held pending
further order of this Court and will be used to pay any award of
attorneys' fees and costs that hereafter may be made to Liaison
Counsel, with any excess after payment of any such fees and costs
being paid to the IA Plaintiffs in proportion to their respective
interests in the account. At the time of each payment, the paying
defendant shall inform LDBS and the Clerk of Court, in writing,
of the following:
a. The name(s) and address(es) of the plaintiff or
plaintiffs for whose benefit the payment is made and
of their attorneys;
b. The title and docket number of the case(s) in
respect of which the payment is made and the court in
which the case is pending;
c. The amount of the settlement or judgment;
d. The amount of the Escrow Amount deposited in the
CRIS Escrow Account; and e. The name(s) and address(es) of the defendant or
defendants contributing payment, and of their
3. Paragraph 2 shall apply to an Individual Action regardless
of whether it or any claim asserted in it is disposed of while it
is on the docket of this Court or following transfer from this
Court to another federal district court for trial. The obligation
to make Escrow Amount payments shall follow each Individual
Action to its final disposition in any United States court,
including a court having jurisdiction in bankruptcy.
4. Should the balance in the CRIS Escrow Account exceed what
the Court deems likely to be necessary to fund any attorneys' fee
and cost award, it reserves the right to distribute any excess to
the plaintiffs in respect of whom Escrow Amounts have been
received in proportion to their respective contributions.
5. The Clerk of Court, as soon as the business of his office
allows, shall prepare the necessary forms to effectuate the
transfer of funds hereafter received pursuant to this Order by
the registry of the United States District Court for the Southern
District of New York.
6. Liaison Counsel shall serve signed copies of this Order on
the Clerk of Court and on a financial deputy in the Cashier's
7. This Order shall apply to all Individual Actions
consolidated with the WorldCom Securities Litigation, whether
or not the Individual Action is already filed. Liaison Counsel
must serve a copy of this Order on all plaintiffs and defendants in
© 1992-2004 VersusLaw ...
Buy This Entire Record For