Jeffrey N. Schneider v. Champignon Brands Inc. — Entry #98: NOTICE OF MOTION AND MOTION for Disbursement of Funds filed by Lead Plaintiff Michael G

Case 2:21-cv-03120-JVS-KES       Document 98-1   Filed 11/14/24   Page 1 of 5 Page ID
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   8                       UNITED STATES DISTRICT COURT
                          CENTRAL DISTRICT OF CALIFORNIA
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  10 JEFFREY N. SCHNEIDER,                       Case No. 2:21-cv-03120-JVS-KES
  11 Individually and On Behalf of All
       Others Similarly Situated,                CLASS DISTRIBUTION ORDER
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  13               Plaintiff,                    Date:    December 16, 2024
                                                 Time:    1:30 p.m.
  14         v.                                  Crtm:    10C
  15                                             Judge:   James V. Selna
       CHAMPIGNON BRANDS INC.,
  16 GARETH BIRDSALL, and

  17 MATTHEW FISH,

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                   Defendants.
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                                    CLASS DISTRIBUTION ORDER


Case 2:21-cv-03120-JVS-KES     Document 98-1     Filed 11/14/24   Page 2 of 5 Page ID
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   1        Having considered all materials and arguments submitted in support of Lead
   2 Plaintiff’s Unopposed Motion for Class Distribution Order (the “Motion”),

   3 including the Memorandum of Law in Support of the Motion, the Declaration of

   4 Margery Craig Concerning the Results of the Claims Administration Process

   5 (“Craig Decl.”), and the Declaration of Sharon M. McGowan of the Public Justice

   6 Foundation,

   7        NOW, THEREFORE, IT IS HEREBY ORDERED THAT:
   8        1.     This Class Distribution Order incorporates by reference the definitions
   9 in the Stipulation and Agreement of Settlement (ECF No. 65-1) (the “Stipulation”).

  10 All terms not otherwise defined shall have the same meaning as set forth in the

  11 Stipulation or the Craig Declaration.

  12        2.     This Court has jurisdiction over the subject matter of the Action and
  13 over all parties to the Action, including all Settlement Class Members.

  14        3.     As set forth in the Craig Declaration, the administrative determinations
  15 of the Claims Administrator in accepting and rejecting Claims are approved.

  16 Specifically, the administrative determinations of the Claims Administrator

  17 accepting those Claims set forth in Exhibits C-1 and C-2 of the Craig Declaration

  18 are approved.       Likewise, the administrative determinations of the Claims
  19 Administrator rejecting those Claims set forth in Exhibits D and E of the Craig

  20 Declaration are approved. For the avoidance of doubt, claim number 782 is denied

  21 because the Claimant had a market gain with respect to his, her, or its overall

  22 transactions in Braxia shares during the Settlement Class Period. See, e.g., In re

  23 Cendant Corp. Sec. Litig., 454 F.3d 235, 246-47 (3d Cir. 2006) (upholding

  24 application of a “netting provision” providing that “all profits shall be subtracted

  25 from all losses on all transactions of CUC and Cendant publicly-traded securities

  26 during the class period to determine the net claim of each class member. If a class

  27 member made a net profit, the value of his, her or its claim shall be zero.”); In re

  28 Citigroup Inc. Sec. Litig., 2014 WL 7399039, at *2-4 (S.D.N.Y. Dec. 29, 2014)

                                 CLASS DISTRIBUTION ORDER
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Case 2:21-cv-03120-JVS-KES     Document 98-1    Filed 11/14/24   Page 3 of 5 Page ID
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   1 (overruling objection based on objector’s “aggregate gain” from class period

   2 transactions where plan of allocation provided: “[t]o the extent an Authorized

   3 Claimant had an aggregate gain from his, her or its transactions in Citigroup

   4 common stock during the Class Period, the value of his, her or its total Recognized

   5 Loss will be zero.”).

   6        4.      As set forth in the Craig Declaration, no new Claims may be accepted
   7 after August 30, 2024, and no further adjustments to submitted Claim may be made

   8 for any reason after September 24, 2024.

   9        5.      The Court authorizes payment of $5,250 from the Settlement Fund to
  10 the Claims Administrator for the fees and expenses to be incurred in connection

  11 with the Initial Distribution and 2024 tax work, as described in the Craig

  12 Declaration.

  13        6.      The distribution plan for the Net Settlement Fund as set forth in the
  14 Craig Declaration and accompanying exhibits is approved. The balance of the Net

  15 Settlement Fund, after deducting the fees and expenses discussed in paragraph 5,

  16 shall be distributed to Authorized Claimants. To encourage Authorized Claimants

  17 to promptly deposit their payments, all distribution checks will bear a notation:

  18 “CASH PROMPTLY, VOID AND SUBJECT TO RE-DISTRIBUTION 180 DAYS

  19 AFTER ISSUE DATE.”            Authorized Claimants who fail to cash, deposit, or
  20 negotiate a distribution check within the time allotted or consistent with the terms

  21 outlined in Paragraph 21.a.vi. of the Craig Declaration will irrevocably forfeit all

  22 recovery from the Settlement.

  23        7.      After the Initial Distribution of the Net Settlement Fund, the Claims
  24 Administrator shall make reasonable and diligent efforts to have Authorized

  25 Claimants cash, deposit, or negotiate their distribution checks. To the extent any

  26 monies remain in the fund six (6) months after the Initial Distribution, if Lead

  27 Counsel, in consultation with the Claims Administrator, determines that it is cost-

  28 effective to do so, the Claims Administrator shall conduct a redistribution of the

                                 CLASS DISTRIBUTION ORDER
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Case 2:21-cv-03120-JVS-KES     Document 98-1     Filed 11/14/24   Page 4 of 5 Page ID
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   1 funds remaining after payment of, or reserve for, any unpaid fees and expenses

   2 incurred in administering the Settlement, including for such redistribution, payment

   3 of any Taxes, costs of preparing tax returns and escrow fees, to Authorized

   4 Claimants who have cashed their Initial Distributions and who would receive at least

   5 $10.00 from such redistribution. Additional redistributions to Authorized Claimants

   6 who have cashed, deposited, or negotiated their prior checks and who would receive

   7 at least $10.00 on such additional redistributions may occur thereafter if Lead

   8 Counsel, in consultation with the Claims Administrator, determines that additional

   9 redistributions, after the deduction of any additional fees and expenses incurred in

  10 administering the Settlement, including for such redistributions, would be cost-

  11 effective.

  12        8.    At such time as Lead Counsel, in consultation with the Claims
  13 Administrator, determine that no additional distributions are cost-effective, then the

  14 remaining funds will be donated to the Public Justice Foundation, a non-sectarian,

  15 not-for-profit 501(c)(3) organization dedicated to, among other things, investor

  16 education and advocacy.

  17        9.    All persons involved in the review, verification, calculation, tabulation,
  18 or any other aspect of the processing of the claims submitted herein, or otherwise

  19 involved in the administration or taxation of the Settlement Fund or the Net

  20 Settlement Fund, are released and discharged from any and all claims arising out of

  21 such involvement, and all Settlement Class Members and other Claimants, whether

  22 or not they are to receive payment from the Net Settlement Fund, are barred from

  23 making any further claim against the Net Settlement Fund, Lead Plaintiff, Lead

  24 Counsel, Plaintiff’s Counsel, the Claims Administrator, the Escrow Agent, or any

  25 other agent retained by Lead Plaintiff or Lead Counsel in connection with the

  26 administration or taxation of the Settlement Fund or the Net Settlement Fund, or any

  27 other person released under the Settlement beyond the amounts allocated to them

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                                 CLASS DISTRIBUTION ORDER
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Case 2:21-cv-03120-JVS-KES       Document 98-1      Filed 11/14/24    Page 5 of 5 Page ID
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   1 pursuant to the terms of the Class Distribution Order, provided that such released

   2 persons acted in accordance with the Stipulation, the Judgment, and this Order.

   3         10.    The Claims Administrator is authorized to destroy: (a) paper or hard
   4 copies of the Claim Forms and supporting documents one year after any re-

   5 distribution, if that occurs, or, if there is no re-distribution, two years after the Initial

   6 Distribution; and (b) electronic copies of the same one year after the final

   7 distribution of the Net Settlement Fund to Authorized Claimants.

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   9         SO ORDERED this ___ day of _____________ 2024.
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  12                                                   The Honorable James V. Selna
                                                        United States District Judge
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                                   CLASS DISTRIBUTION ORDER
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