This page provides the answers to class members' most frequently asked questions.
Please note that information provided by the FAQ section represents summaries of class member rights and should not be treated as a complete explanation. For a comprehensive explanation of class member rights, you are directed to review carefully the documents provided in the Case Documents section.
1. Am I being sued?
No, you are not being sued.
2. What is this lawsuit about?
This action was filed in the Circuit Court of Jefferson County, Kentucky in October 2007. The action involves various claims that CREF improperly failed to pay accountholders the full appreciated amount of their accounts when CREF failed to process transfer or distribution requests related to funds governed by CREF contracts within seven days. CREF has denied wrongdoing. This case has been the subject of extensive discovery and motion practice.
3. Why did I get this Notice package?
It has been determined from the books and records of College Retirement Equities Fund (“CREF”) that at some point during the period October 1, 2005 to March 31, 2008, you had one or more contracts with CREF, governed by New York law, for the maintenance and administration of one or more account(s) with CREF and that you experienced delays of more than seven days in the processing of transfer or distribution requests related to funds governed by the CREF contracts. If so, you may receive the benefits of this settlement. Alternatively, you may elect to exclude yourself and not receive the benefits of the settlement described in the Notice.
4. Why is this a Class Action?
In a class action, one or more plaintiffs called “Class Representatives” sue on behalf of others who have similar claims. In this case, Dr. Richard Rink has asserted claims and asked that the matter be treated as a Class Action. The Court previously certified a class in this matter, and has certified that this case may proceed as a class action for settlement purposes.
5. What does the settlement provide?
Settlement Class Members will be eligible to receive the full amount of the difference between the amount CREF distributed or transferred to the Settlement Class Member and the per-unit price times total number of units associated with each CREF fund governed by a CREF contract on the date of distribution or transfer, plus 4% per annum interest on that amount from the date of the request until the date the Settlement Agreement approval becomes final. In order to receive this payment a timely completed Claim Form must be submitted. A Claim Form for a Settlement Class Member who is deceased may be submitted by the Settlement Class Member’s estate.
6. How much will my payment be?
The amount of your payment depends on several factors, mainly the positive difference between the per-unit price times total number of units associated with each distributed or transferred fund(s) as of the actual date of distribution or transfer versus the date of the distribution or transfer request.
7. When will I get my payment?
Once the settlement is finally approved and there are no pending appeals, the amount owed to Settlement Class Members who filed timely and valid claim forms will be paid within 30 days.
8. What is the effect of not excluding myself from the Settlement Class?
If you don’t exclude yourself from the Settlement Class, you will be a Settlement Class Member and bound by all orders entered by the Court regarding the settlement. This will include the release of certain claims against CREF. If the settlement is approved, you will not be able to bring a separate lawsuit or be part of any other lawsuit or arbitration against CREF for the released claims.
9. How do I exclude myself from the Settlement and not release my claims?
To exclude yourself from the settlement you must send a letter to the Claims Administrator saying that you want to be excluded from the Settlement Class in the Rink v. CREF matter. In your letter, you should give your name, address and telephone number and you must sign the letter. It must be postmarked no later than August 27, 2012. It should be sent to:
BMC Group
P.O. Box 2003
Chanhassen, MN 55317-2003
If you do not follow these procedures including mailing your exclusion by August 27, 2012, you will not be excluded from the Settlement Class and you will be bound by all of the orders and judgments entered by the Court including the release of any claims you may have.
10. If I exclude myself from the Settlement Class, can I get money from this Settlement?
No.
11. Do I have a lawyer in this case?
Yes. The Court has appointed the law firms Stites & Harbison, PLLC, Foley, Bryant, Holloway & Raluy, and Stewart & Irwin, P.C., to represent the Class. You will not be billed or charged by these lawyers. They must seek an order from the Court in order to be paid the expenses that have been incurred and compensation for their time and effort.
12. How will the lawyers get paid?
At the final hearing on September 6, 2012, Counsel in this matter will ask the Court to award them up to $8,500,000 in attorneys’ fees and up to $150,000 in costs. They will submit a Petition for these fees and expenses 30 days prior to the final hearing. That Petition will outline the expenses that have been incurred and information supporting the reasonableness of the requested fee. If you are interested in seeing a copy of that Petition, it will be posted on the website www.crefclassaction.com at least 30 days prior to the final hearing on September 6, 2012. Whatever amount is ultimately awarded by the Court to attorneys representing Plaintiffs in this matter will not be deducted from the settlement amount explained above.
13. How do I tell the court that I do not like an aspect of the Settlement?
If you remain a member of the Settlement Class and do not exclude yourself, you can object to any aspect of the settlement including its amount, the request for attorneys’ fees and expenses, or anything else. To object, you must send a letter or other filing to the Court at the following addresses:
Circuit Court of Jefferson County, Kentucky
c/o BMC Group
P.O. Box 2003
Chanhassen, MN 55317-2003
and
Settlement Counsel for the Class:
Marjorie A. Farris
Joseph L. Hamilton
Clark C. Johnson
STITES & HARBISON
400 West Market Street
Suite 1800
Louisville, KY 40202-3352
Your objection must be mailed no later than August 27, 2012.
14. What is the difference between objecting and excluding?
Objecting is simply telling the Court you don’t like something about the settlement. You can only object if you remain a member of the Settlement Class. But once you exclude yourself from the Settlement Class by sending an exclusion notice, you no longer have the right to object because the settlement no longer affects you. If you exclude yourself from the Settlement Class, you will not be subject to the Release provided for under the Settlement. However, if you object to the settlement, you will be bound by the Release.
15. When and where will the Court decide whether to approve the Settlement?
The Court has scheduled a Final Fairness Hearing to be held in the Jefferson County Judicial Center, 700 W. Jefferson Street, Louisville, Kentucky on September 6, 2012 at 1:00 p.m. At this hearing the Court will consider whether the settlement is fair, reasonable and adequate, the objections that may have been submitted to the Court in timely fashion, and determine whether to approve the request for attorneys’ fees and expenses. It is uncertain how long the Court will take to decide these issues. At the Final Fairness Hearing, the Court ordered final approval of the Settlement.
16. Do I have to come to the hearing?
No. Counsel for the Settlement Class will answer any questions the Court might have. But, although you are not obligated to attend the hearing, you may do so at your own expense.
17. May I speak at the hearing?
It will be the responsibility of Judge Stevens to determine who may speak at the hearing. In order to alert the Court to your desire to appear and make a statement at the hearing (either individually or through counsel that you may hire at your own expense) you should notify the Court, in writing, at the following address of your desire to speak at the hearing:
The Honorable Olu Stevens
Circuit Court of Jefferson County
c/o BMC Group
P.O. Box 2003
Chanhassen, MN 55317-2003
18. What happens if I do nothing at all?
If you don’t file a claim, you will be a Settlement Class Member but receive no benefits from this settlement and will be precluded from otherwise participating in the settlement and receiving any of its benefits. As a Settlement Class Member you will be releasing CREF from the claims asserted in this matter, as explained in detail in the Settlement Agreement. To have a full understanding of the extent of the Release, you should consult the website www.crefclassaction.com.
19. Where can I get more details about the lawsuit?
You are welcome to obtain a copy of the Settlement Agreement and all other relevant documents by accessing the website www.crefclassaction.com. You may request copies of these documents by writing or emailing the Settlement Administrator:
BMC Group
P.O. Box 2003
Chanhassen, MN 55317-2003
crefclassaction@bmcgroup.com
Or, you can email any of the following counsel:
Marjorie A. Farris - mfarris@stites.com
Joseph L. Hamilton - jhamilton@stites.com
Clark C. Johnson - cjohnson@stites.com
