On October 13, 2015, United States District Court Judge Sara L. Ellis entered a series of Orders, which resolved the pending customer class action brought against U.S. Bank National Association (“U.S. Bank”) Civil Action No. 12-cv-5546. The Orders which were entered are as follows:
As a result of the settlement, U.S. Bank will be making a payment of $44.5 million dollars to resolve all claims. Of that amount, the court approved legal fees for the class lawyers in the amount of $13,795,000 and expenses of $437,440. The court also approved services awards to the named plaintiffs in the class action totaling $45,000.
Under the Plan of Allocation:
- For “New Claimants” (Class members who do not have allowed claims in the bankruptcy action), each “shall receiver a share of the Net Settlement Fund that is determined by multiplying the amount of such New Claimant’s timely claim as approved in the Customer Class Action by a payment ratio computed as: the Net Settlement Fund divided by $215,000,000.00.” The amount to be distributed to New Claimants is capped at 50% of the Net Settlement Fund.
- For Class members with allowed claims in the bankruptcy case: “After the determination of the aggregate amount to be disbursed to the New Claimants, the balance of the Net Settlement Fund shall be transferred to the Trustee for distribution to Settlement Class Members who hold Allowed Claims in the Bankruptcy Case.”
The Trustee estimates the balance of the “Net Settlement Fund” will be approximately $30,000,000. Upon receipt of the balance of the “Net Settlement Fund” the Trustee will file a motion with the bankruptcy court to authorize a further distribution to 4d claimants with Allowed Claims. The Trustee anticipates the distribution will be made in the first quarter of 2016.