Strougo v. Barclays PLC
Barclays LX Securities Litigation
Case No. 1:14-cv-05797-VM-DCF

Frequently Asked Questions

 

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  • You or someone in your family may have purchased or otherwise acquired ADSs of Barclays PLC (“Barclays” or the “Company”) between August 2, 2011 and June 25, 2014, both dates inclusive (the “Class Period”).

  • This settlement resolves the case known as Strougo v. Barclays PLC et al., Civil Action No. 1:14-cv-05797-VM-DCF (S.D.N.Y.) (the “Action”). The Court in charge of the case is the United States District Court for the Southern District of New York. The Action involves allegations that Defendants violated provisions of the Securities Exchange Act of 1934 (“Exchange Act”) by allegedly making misrepresentations and/or omissions of material fact in public statements to the investing public regarding Barclays’ “dark pool,” known as Liquidity Cross or LX, a private trading venue on which participants can trade securities without publicly displaying bids or offers. The Consolidated Second Amended Complaint For Violations Of The Federal Securities Laws (the “Complaint”) alleges that the misstatements or omissions artificially inflated the price of Barclays ADSs, and that the ADS prices dropped in response to certain subsequent disclosures. Defendants have denied and continue to deny each, any and all allegations of wrongdoing, fault, liability or damage whatsoever asserted in the Action. The Settlement shall in no event be construed as, or deemed to be evidence of, liability, fault, wrongdoing, injury or damages, or of any wrongful conduct, acts or omissions on the part of Defendants or any of the Released Parties, or of any infirmity of any defense, or of any damages to the Plaintiffs or any other Settlement Class Member. The Settlement resolves all of the claims in the Action, as well as certain other claims or potential claims, whether known or unknown.

  • In a class action, one or more persons called plaintiffs sue on behalf of all persons who have similar claims. All of the persons with similar claims are referred to as a class. One court resolves the issues for all class members, except for those who exclude themselves from the class.

  • Plaintiffs and Defendants do not agree regarding the merits of Plaintiffs’ allegations and Defendants’ defenses with respect to liability or the average amount of damages per ADS, if any, that would be recoverable if Plaintiffs were to prevail at trial on each claim. The issues on which Plaintiffs and the Defendants disagree include: (1) whether the challenged statements were materially false or misleading or otherwise actionable under federal securities law; (2) whether Defendants had a duty to disclose the allegedly omitted information; (3) whether the Defendants acted with scienter; (4) whether the alleged disclosures were corrective disclosures; (5) the causes of the loss in the value of the ADSs; and (6) the amount of alleged damages, if any, that could be recovered at trial.

    This matter has not gone to trial and the Court has not decided in favor of either Plaintiffs or Defendants. Instead, Plaintiffs and Defendants have agreed to settle the case. Plaintiffs and Lead Counsel believe the Settlement is best for all Settlement Class Members because of the risks associated with continued litigation and the nature of the defenses raised by the Defendants. Among the reasons that Plaintiffs and Lead Counsel believe the Settlement is fair is the fact that there is uncertainty about whether they will be able to prove that any challenged statement was false or misleading, that the alleged misstatements and omissions actually caused the Settlement Class any damages, and the amount of damages, if any.

    Moreover, while litigation of this type is usually expensive, it appears that, even if Plaintiffs’ allegations were found to be true, the total amount of damages to which Settlement Class Members would be entitled could be substantially reduced.

  • The Settlement Class includes all persons or entities, except those who are excluded as described below, who purchased or otherwise acquired Barclays ADSs between August 2, 2011 and June 25, 2014, both dates inclusive (the “Class Period”).

    If one of your mutual funds owns Barclays ADSs, that alone does not make you a Settlement Class Member. Also, if you sold Barclays ADSs during the Class Period, that alone does not make you a Settlement Class Member. You are a Settlement Class Member only if you directly purchased or otherwise acquired Barclays ADSs during the Class Period. Contact your broker to see if you have made any of these transactions.

  • Yes. Excluded from the Settlement Class are (i) Defendants, all current and former directors and officers of Barclays during the Class Period, and any family member, trust, company, entity or affiliate controlled or owned by any of the excluded persons and entities; (ii) Opt-Outs i.e., those Persons who timely and validly request exclusion from the Settlement Class in accordance with the requirements set forth below; and (iii) Persons who have no compensable damages.

  • If you are still not sure whether you are included, you can ask for free help. You can contact the Claims Administrator toll-free at 1-888-593-6794 or at info@Barclayslxsecuritieslitigation.com or you can fill out and return the Proof of Claim form enclosed with the Notice package to see if you qualify.

  • The proposed Settlement provides for Barclays to pay $27,000,000 into a settlement fund (the “Settlement Fund”). The Settlement is subject to Court approval. Also, subject to the Court’s approval, a portion of the Settlement Fund will be used to pay attorneys’ fees with interest and reasonable litigation expenses to Lead Counsel, and Compensatory Awards to Plaintiffs. A portion of the Settlement Fund also will be used to pay taxes due on interest earned by the Settlement Fund, if necessary, and the costs of the claims administration, including the costs of printing and mailing the Notice and the costs of publishing notice. After the foregoing deductions from the Settlement Fund have been made, the amount remaining (the “Net Settlement Fund”) will be distributed to Settlement Class Members who submit timely, valid claims, according to the Plan of Allocation to be approved by the Court (“Authorized Claimants”).

  • Your share of the Net Settlement Fund will depend on several factors, including: (i) how many Barclays ADSs you purchased or sold during the Class Period, and the dates and prices of those purchases and sales; (ii) the number of timely and valid claims submitted by other Settlement Class Members, and the purchases and sales of Barclays ADSs represented by those claims; (iii) the amount of administrative costs, including the costs of notice; and (iv) the amount awarded by the Court to Lead Counsel for attorneys’ fees, costs, and expenses and compensatory awards to Plaintiffs.

    The Claims Administrator will determine each Settlement Class Member’s pro rata share of the Net Settlement Fund based upon each Settlement Class Member’s valid “Recognized Loss.” The Recognized Loss formula is the basis upon which the Net Settlement Fund will be proportionately allocated to the Settlement Class Members with valid claims. The Recognized Loss formula is not intended to be an estimate of the amount that a Settlement Class Member might have been able to recover after a trial; it also is not an estimate of the amount that will be paid to Settlement Class Members pursuant to the Settlement. You can calculate your Recognized Loss by following the instructions in the Plan of Allocation on page 12 of the Notice.

    It is unlikely that you will get a payment for all of your Recognized Loss. After all Settlement Class Members have sent in their Proof of Claim forms, the payment you get will be a part of the Net Settlement Fund equal to your Recognized Loss divided by the total of everyone’s Recognized Losses.

  • To qualify for a payment, you must submit a Proof of Claim form. The Claims Administrator will process your claim and determine whether you are an Authorized Claimant.

    A Proof of Claim form is enclosed with the Notice and may also be downloaded from the Important Documents section of this website.  Read the instructions carefully, fill out the form, include all the documents that the form requests, sign it, and mail or submit it online so that it is postmarked no later than June 7, 2019. The claim form may be submitted online through the File a Claim section of the website or mailed to:

    Barclays LX Securities Litigation
    c/o JND Legal Administration
    P.O. Box 91224
    Seattle, WA 98111

    Tel.: 1-888-593-6794

    info@barclayslxsecuritieslitigation.com

  • The Court will hold a Settlement Hearing on May 31, 2019 at 10:00 a.m. to decide whether to approve the Settlement. If the Court approves the Settlement, there might be appeals afterwards. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. It also takes time for all the Proofs of Claim to be processed. Please be patient.

  • Unless you exclude yourself from the Settlement Class postmarked on or before the May 10, 2019 deadline, you will remain a member of the Settlement Class and will be bound by the release of claims against Defendants and other Released Parties if the Settlement is approved. That means you and all other Settlement Class Members and each of their respective present, former and future direct and indirect parent entities, associates, affiliates, subsidiaries, predecessors, successors, and the officers, directors, attorneys, assigns, legal representatives, and agents of each of them, each of their respective officers, directors, attorneys, legal representatives, and agents, and any person or entity which is or was related to or affiliated with any Releasing Party or in which any Releasing Party has a controlling interest, and each of their immediate family members, heirs, representatives, administrators, executors, trustees, successors, assigns, devisees, legatees, and estates will release (agreeing never to sue, continue to sue, or be part of any other lawsuit) as against Defendants and other Released Parties any and all claims which arise out of, are based upon or relate in any way to the purchase or acquisition of Barclays ADSs during the Class Period. It means that all of the Court’s orders will apply to you and legally bind you. That means you will accept a share of the Net Settlement Fund as sole compensation for any losses you suffered in the purchase, acquisitions, sale or ownership of Barclays ADSs during the Class Period. The specific terms of the release are included in the Settlement Stipulation.

  • To exclude yourself from the Settlement, you must mail a letter stating that you “request exclusion from the Settlement Class in the Strougo, v. Barclays PLC, et al., Civil Action No. 1:14-cv-05797-VM-DCF (S.D.N.Y.)”. To be valid, the letter must state (A) your name, address, telephone number, and e-mail address (if any); (B) the date, number of securities, and dollar amount of all purchases, acquisitions, sales, or dispositions of Barclays ADSs during the Class Period; and (C) the number of Barclays ADSs held by you as of June 25, 2014. In order to be valid, such request for exclusion must be submitted with documentary proof (i) of each purchase or acquisition and, if applicable, sale transaction of Barclays ADSs during the Class Period and (ii) demonstrating your status as a beneficial owner of the Barclays ADSs. Any request for exclusion must be signed and submitted by you, as the beneficial owner, under penalty of perjury. You must submit your exclusion request postmarked on or before May 10, 2019 at:

    Barclays LX Securities Litigation
    Exclusions
    c/o JND Legal Administration
    P.O. Box 91224
    Seattle, WA 98111

    You cannot exclude yourself by telephone or by e-mail. If you properly exclude yourself, you will not receive a payment from the Net Settlement Fund, you cannot object to the Settlement, and you will not be legally bound by the judgment in this case.

  • No. Unless you exclude yourself by following the instructions above, you give up any rights to sue the Defendants or the other Released Parties for the claims being released in this Settlement. If you have a pending lawsuit against the Released Parties or related to any Released Claims, speak to your lawyer in that case immediately, since you must exclude yourself from this Settlement Class to continue your own lawsuit. Remember, the exclusion deadline is May 10, 2019.

  • No. If you exclude yourself, you may not send in a Proof of Claim to ask for any money.

  • The Court has appointed Pomerantz LLP as Lead Counsel to the Class, to represent you and the other Settlement Class Members. If you want to be represented by your own lawyer, you may hire one at your own expense. Contact information for Pomerantz LLP is provided below.

  • Lead Counsel have expended considerable time litigating this Action on a contingent-fee basis, and have paid for the expenses of the case themselves. They have not been paid attorneys’ fees or reimbursed for their expenses in advance of this Settlement. Lead Counsel have done so with the expectation that, if they are successful in recovering money for the Settlement Class, they will receive attorneys’ fees and be reimbursed for their litigation expenses from the Settlement Fund, as is customary in this type of litigation. Lead Counsel will not receive attorneys’ fees or be reimbursed for their litigation expenses except from the Settlement Fund. Therefore, Lead Counsel will file a motion at the Settlement Hearing asking the Court for an award of attorneys’ fees in an amount not greater than thirty percent of the Settlement Fund, equaling $8,100,000 plus interest, plus reimbursement of litigation expenses of no more than $1,000,000 and a Compensatory Award to Lead Plaintiffs collectively not to exceed $35,000 (or $20,000 to Class Representative Mohit Sahni and $15,000 to Class Representative Joseph Waggoner). The Court may award less than these amounts. Any amounts awarded by the Court will come out of the Settlement Fund.

  • If you are a Settlement Class Member, you can tell the Court you do not agree with the proposed Settlement, any part of the Settlement, the proposed Plan of Allocation, and/or Lead Counsel’s motion for attorneys’ fees and expenses and application for a Compensatory Award to Lead Plaintiffs. You can write to the Court setting out your objection. The Court will consider your views.

    To object, you must send a signed letter saying that you object to the proposed Settlement in Strougo v. Barclays PLC, et al., Civil Action No. 1:14-cv-05797-VM-DCF (S.D.N.Y.). Be sure to include (1) your name, address, telephone number, and your signature; (2) the date(s), price(s), and amount(s) of all Barclays ADSs that you purchased, otherwise acquired, sold, or otherwise disposed of during the Class Period, in order to show membership in the Settlement Class; (3) all grounds for the objection, including any legal support known to you or your counsel, (4) the name, address and telephone number of all counsel, if any, who represent you, including your former or current counsel who may be entitled to compensation in connection with the objection, and (5) the number of times you and/or your counsel has filed an objection to a class action settlement in the last five years, the nature of each such objection in each case, the jurisdiction in each case, and the name of the issuer of the security or seller of the product or service at issue in each case.

    If you object to either the Settlement or the requested reimbursement of expenses, you subject yourself to the jurisdiction of the District Court in this matter and consent to being deposed in your district of residence and producing in advance of a deposition any responsive documents to a discovery request prior to the Settlement Hearing.

    Attendance at the Settlement Hearing is not necessary. Objectors wishing to be heard orally at the Settlement Hearing must indicate in their written objection that they intend to appear at the Settlement Hearing and identify any witnesses they may call to testify or exhibits they intend to introduce into evidence at the Settlement Hearing.

    Be sure to mail or deliver copies of any objections, papers and briefs to each of the addresses listed below such that they are postmarked on or before May 10, 2019:
     

    Clerk of the Court
    United States District Court
    Southern District of New York
    500 Pearl Street
    New York, NY 10007

    Lead Counsel
    Jeremy A. Lieberman
    POMERANTZ LLP
    600 Third Avenue, Floor 20
    New York, NY 10016

    Counsel For Defendants
    Jeffrey T. Scott
    SULLIVAN & CROMWELL LLP
    125 Broad Street
    New York, New York 10004

  • Objecting is simply telling the Court you do not like something about the Settlement or some portion thereof. You can object only if you stay in the Settlement Class. Requesting exclusion is telling the Court you do not want to be part of the Settlement Class or the Settlement. If you exclude yourself, you cannot object to the Settlement because it no longer concerns you. If you stay in the Settlement Class and object, but your objection is overruled, you will not be allowed a second opportunity to exclude yourself.

  • The Court will hold a Settlement Hearing on May 31, 2019 at 10:00 a.m. at the United States District Court, 500 Pearl St., Courtroom 11B, New York, NY, 10007.

    At this hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate and should be approved by the Court; whether an Order and Final Judgment as provided in the Settlement Stipulation should be entered; and whether the proposed Plan of Allocation should be approved. If there are objections, the Court will consider them, and the Court will listen to people who have asked to speak at the hearing. The Court may also decide how much should be awarded to Lead Counsel for attorneys’ fees and expenses and a Compensatory Award to Lead Plaintiffs for their service to the Settlement Class.

    We do not know how long these decisions will take. You should be aware that the Court may change the date and time of the Settlement Hearing without another notice being sent to Settlement Class Members. If you want to attend the hearing, you should check with Lead Counsel beforehand to be sure that the date and/or time has not changed.

  • No. Lead Counsel will answer any questions the Court may have. However, you are welcome to attend at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mail your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary. Settlement Class Members do not need to appear at the hearing or take any other action to indicate their approval.

  • If you object to the Settlement, you may ask the Court for permission to speak at the Settlement Hearing. To do so, you must include with your objection (see question 18 on the Notice) a statement that you “intend to appear in Strougo v. Barclays PLC, et al., Civil Action No. 1:14-cv-05797-VM-DCF (S.D.N.Y.).” Persons who intend to object to the Settlement, the Plan of Allocation, and/or the application for an award of attorneys’ fees, costs, and expenses, and desire to present evidence at the Settlement Hearing, must include in their written objections the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the Settlement Hearing. You cannot speak at the hearing if you exclude yourself.

  • If you do nothing, you will not receive a payment from the Settlement. However, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Defendants or the Released Parties about the Released Claims (as defined in the Settlement Stipulation) ever again.

  • The Notice summarizes the proposed Settlement. More details are in the Stipulation of Settlement dated January 28, 2019 (the “Settlement Stipulation”). The Settlement Stipulation is the controlling document describing the proposed Settlement, and its terms govern anything to the contrary in the Notice. You can get a copy of the Settlement Stipulation and obtain answers to common questions regarding the proposed Settlement from the Important Documents section of this website or by contacting the Claims Administrator toll-free at 1-888-593-6794.

  • For even more detailed information concerning the matters involved in this Action, see the Settlement Stipulation, the pleadings in the Action, the papers filed in support of the Settlement, and the orders entered by the Court, which are posted on this website in the Important Documents section.  For a fee, all papers filed in this Action are also available at www.pacer.gov.

For More Information

Visit this website often to get the most up-to-date information.

Mail

Barclays LX Securities Litigation
c/o JND Legal Administration
P.O. Box 91224
Seattle, WA 98111