The opinion of the court was delivered by: DENISE COTE, District Judge
Order Approving Plan of Allocation
This matter having come before the Court pursuant the Class
Action Settlement Agreement (the "Agreement") dated July 2, 2004,
and specifically section 8.3 thereof, and on the ERISA
Plaintiffs' Motion for Final Approval of Settlement filed
September 1, 2004, and the matter having been heard and good
IT IS ORDERED:
A. Capitalized terms used herein shall have the meanings
ascribed to them in section 1 of the Agreement or in this Order.
B. "Participant" means a person who was a participant, as that
term is used in ERISA, in the Plan during the Class Period.
C. "Plan Administrator" means the administrator of the Plan
pursuant to ERISA § 16(A).
D. "Company Stock" means WorldCom, Inc. stock and MCI Group
tracking stock. II. Amount to Be Distributed.
A. As soon as practicable on or immediately after the Effective
Date, the Custodian shall pay into the Plan:
(1) the Principal Class Settlement Amount
($46,750,000 pursuant to Section 7.2.1 of the
(2) the Ebbers Initial Settlement Payment ($400,000
pursuant to Section 7.2.2 of the Agreement); plus
(3) any interest earned on those amounts pursuant to
Section 7.1.2 of the Agreement; minus
(1) attorneys' fees, expenses, and Named Plaintiff
compensation awarded by the Court, as contemplated by
Section 10 of the Agreement or as reserved for or
otherwise ordered by the Court; and
(2) any reasonable and necessary expenses of the
Settlement Fund, as contemplated by Section 7.1.2 of
This amount is the "Net Class Settlement Amount."
B. The total amount to be distributed to the Participants (the
"Distribution Amount") shall be the Net Class Settlement Amount,
as set out in Paragraph II.A above, minus any reasonable and
necessary out-of-pocket expenses of the implementation of the
Plan of Allocation, as contemplated by Section 8.3 of the
III. Calculation of Each Participant's Share of the
A. The Plan Administrator shall calculate, for each
Participant, a Net Loss. The Net Loss for each Participant shall
be equal to (a) the dollar amount of the account balance invested
in Company Stock at the beginning of the Class Period, plus (b)
the dollar amounts of any additional investment(s) in Company
Stock during the Class Period, as of the date of the investment(s), minus (c) the
proceeds of all dispositions of Company Stock during the Class
B. The Net Losses of the Participants as calculated in Section
III.A above will be totaled to yield the loss of the Plan as a
whole over the Class Period (the "Plan's Loss").
C. The Plan Administrator shall calculate for each Participant
his or her "Preliminary Fractional Share" of the Plan's Loss,
i.e., by dividing each Participant's Net Loss by the Plan's Loss.
D. The Plan Administrator shall then calculate for each
Participant his "Preliminary Dollar Recovery" of the Distribution
Amount by multiplying the Participant's Preliminary Fractional
Share by the Distribution Amount.
E. The Plan Administrator shall identify all Participants whose
Preliminary Dollar Recovery is greater than zero but less than
ten dollars ($10.00) (the "De Minimis Amount"). All such
Participants shall receive an allocation from Distribution Amount
of the De Minimis Amount.
F. The Plan Administrator shall then, taking into account the
Participants who receive the De Minimis Amount, recalculate the
Preliminary Fractional Shares and the Preliminary Dollar
Recoveries as many times as necessary so as to arrive at the
"Final Fractional Share" and the "Final Dollar Recovery" for ...