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IN RE WORLDCOM

United States District Court, S.D. New York


November 10, 2004.

IN RE WORLDCOM, INC. SECURITIES LITIGATION.

The opinion of the court was delivered by: DENISE COTE, District Judge

ORDER

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 Plaintiffs.

  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

  ORDERED, as follows:

  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 Individual Action.
  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 attorneys.
  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 Office.

  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 Individual Actions.

  SO ORDERED.

20041110

© 1992-2004 VersusLaw Inc.



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