United States District Court for the Central District of California NOTICE OF PROPOSED CLASS ACTION SETTLEMENT
In re American Equity Annuity Practices & Sales Litigation, No. 05-6735-CAS (MANx)
THIS NOTICE IS FOR PERSONS WHO OWN OR HAVE OWNED CERTAIN DEFERRED ANNUITIES ISSUED BY AMERICAN EQUITY INVESTMENT LIFE INSURANCE COMPANY AND WHOSE RIGHTS
MAY BE AFFECTED BY THIS PROPOSED CLASS ACTION SETTLEMENT
A federal district court authorized this Notice. However, the court has not made any determination that American Equity has done anything wrong. This is not junk mail, an advertisement or a solicitation from a lawyer. If you have an Annuity that is the subject of this case, and you are happy with that Annuity and do not wish to change it, you need not take any action in response to this Notice. However, you should read this Notice to make sure
you understand all your rights.
• To be a member of the Settlement Class, you must either own or have owned a deferred Annuity listed in Section 5 of this Notice (referred to as “Annuities”) that was issued by American Equity Investment Life Insurance Company (“American Equity”). For California residents, you must have been at least 60 years of age at the time of purchase and purchased the Annuity between January 3, 2000, and June 30, 2011. For non-California residents, you must have been at least 65 years of age at the time of purchase and purchased the Annuity between January 3, 2000, and December 31, 2009.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
DO NOTHING If you do nothing in response to this Notice, and the proposed Settlement is approved by the Court, you will be bound by the Release described in response to Question 12, which means you will give up any right to bring your own lawsuit relating to any of the claims that are the subject of this case. The benefits potentially available to you under the proposed Settlement will depend on whether you are a California or non-California resident, and whether you have an active deferred Annuity, an Annuity that has been Annuitized, or an Annuity that has been surrendered. Each of the settlement benefits is discussed in detail in response to Question 10 of this notice.
EXCLUDE YOURSELF You must submit a timely written request to exclude yourself from the proposed Settlement by November 21, 2013. If you choose to exclude yourself, you will not be bound by the release or other aspects of the proposed Settlement, and you will not be eligible to receive any benefits under the proposed Settlement. Please see Question 13 below.
OBJECT You may write the Court about why you do not like the proposed Settlement. Written objections to the proposed Settlement must be filed with the Court no later than November 21, 2013. Lodging an objection does not exclude you from the proposed Settlement. If the proposed Settlement is approved despite your objection, you will be bound by the Release described in response to Question 12, which means you will give up any right to bring your own lawsuit relating to any of the claims that are the subject of this case.
GO TO THE HEARING If you timely object in writing to the proposed Settlement as described in this Notice and file a timely Notice of Intention to Appear at the Fairness Hearing, you will be entitled to ask to speak in Court about the fairness of the proposed Settlement during the Fairness Hearing set for January 27, 2014, at 10:00 a.m.
APPEARTHROUGHAN ATTORNEY
You may appear and be heard through an attorney if you desire, but you will still need to comply with the requirements for objecting to the proposed Settlement and appearing at the fairness hearing.
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• These rights and options — and the deadlines to exercise them — are explained in this Notice.
• This Notice is merely a summary of the terms and provisions of the proposed Settlement. For a complete description of the terms and provisions of the proposed Settlement, including certain exceptions, conditions, and limitations that may not be addressed herein, you should read the Settlement Agreement filed with the Court and available at www.AnnuityPracticesAndSalesSettlement.com or by calling 1-866-336-6421.
• The Court in charge of this case still has to decide whether to approve the proposed Settlement. Please be patient. BASIC INFORMATION
1. Why did I get this Notice Package?
You are listed in American Equity’s records as being either the current or most recent Owner of an Annuity that is included in the proposed Settlement.
The Court directed the parties to send you this Notice because you have a right to know about a proposed Settlement of a class action lawsuit, and about your options, before the Court decides whether to approve the proposed Settlement. If the Court approves it, and after objections and appeals are resolved, American Equity will make available the benefits provided for in the approved Settlement.
This package explains the litigation, the proposed Settlement, your legal rights, the benefits potentially available, who is eligible for them, and how to get them.
The Court in charge of the case is the United States District Court for the Central District of California, and the case is known as In re American Equity Insurance Co. Practices & Sales Litigation, No. 05-6735-CAS (MANx). Bernard McCormack, Gary Anagnostis in his capacity as successor co-trustee of the Anagnostis Family Trust and as co-executor for the Estate of Gust Anagnostis, Robert Anagnostis and his capacity as successor co-trustee of the Anagnostis Family Trust and as co-executor for the Estate of Gust Anagnostis, Sharon Schipiour in her capacity as trustee of the Regina Bush Trust and executrix for the Estate of Mrs. Regina Bush, the Estate of Lenice Mathews, by and through Executrix Mary Ann McLean, and George Miller have been designated to represent all members of the Settlement Classes in this matter. They are called the “Plaintiffs,” and the companies they sued, American Equity Investment Life Insurance Company and American Equity Investment Service Company, are the “Defendants.”
2. What is this litigation about?
Plaintiffs brought this litigation on behalf of themselves and certain other policyholders against American Equity with respect to certain deferred Annuities issued by American Equity. Plaintiffs allege that American Equity targeted senior consumers and sold them deferred Annuities with undisclosed sales loads and illusory premium bonuses and crediting options. Plaintiffs allege that these undisclosed costs adversely impacted the performance of the American Equity Annuities.
Plaintiffs claim that the conduct described above violates the federal civil RICO statute, §18 U.S.C. 1962, and certain California consumer protection laws, including §§ 17200 and 17500 of the California Business and Profession Code, and California’s Financial Elder Abuse Act (Welf. & Inst. Code § 15610.30). Plaintiffs seek monetary relief arising out of Defendants’ allegedly improper conduct in connection with the marketing and sale of its Annuities to senior citizens in the form of restitution, compensatory, punitive and other exemplary damages, as well as interest, legal fees and costs. The litigation also seeks injunctive relief that would require defendants to change certain of their business practices.
The court has not made any determination that Plaintiffs’ claims have any merit or that American Equity has done anything wrong. American Equity has agreed to the proposed Settlement to avoid further costs of litigation. American Equity believes the evidence is very clear that it did not unfairly “target” seniors, that its Annuities have no undisclosed “loads,” that it did not break any laws or any terms of the Annuities, and that its Annuities are appropriate products for many consumers.
3. Why is there a class action?
In a class action, one or more people, called Class Representatives, sue on behalf of people who have similar claims. All these people are a Class or Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. United States District Court Judge Christina A. Snyder is in charge of this case, and she has conditionally certified it as a class action for purposes of settlement.
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WHO IS IN THE SETTLEMENT
To see if you are included in this proposed Settlement, you first have to determine if you are a Settlement Class Member. 4. How do I know if I am part of the proposed Settlement?
The proposed Settlement provides potential relief for two separate categories of Class Members: a California Class and a Nationwide Class.
The California Class consists of policies owned by residents of the State of California who were 60 years of age or older, or if jointly owned where one of the owners was 60 years of age or older, and if Trust owned where a grantor of the Trust was 60 years of age or older at the time the Annuity was purchased, and who purchased their contracts between the period January 3, 2000, and June 30, 2011.
The Nationwide Class consists of policies owned by all other individuals and Trusts who are not California residents and who were 65 years of age or older, or if jointly owned where one of the joint owners was 65 years of age or older, and if Trust owned where a grantor of the Trust was 65 years of age or older at the time the Annuity was purchased, and who purchased their contracts between the period January 3, 2000, and December 31, 2009.
Neither Class includes policies that fall within the classes certified in the following actions: Stephens v. American Equity, Case No. CV 040965 (Cty. of San Luis Obispo, California); Panter v. Tackett, et al., Case No. 01-CI-02109 (Jefferson Circuit Ct., Kentucky); and Strube v American Equity, Case No. 6:01-cv-1236 (M.D. Fla.).
See Question 6 for specific exceptions to each of the Classes.
5. Do I own a Deferred Annuity included in the proposed Settlement?
To take part in the proposed Settlement, you must own or have owned one of the Annuities issued by American Equity during the Class Period that is listed in Appendix A to this Notice. The Annuities listed in Appendix A are the marketing names for the products as reflected in Defendants’ policy administration system. If you are an addressee of this Notice, American Equity’s records show that you are or were the Owner of one of these products. If, however, you have a question about the application of this proposed Settlement to a particular Annuity, you may contact the Settlement Administrator. See Question 22.
6. Are there exceptions to being included in either Settlement Class? Yes.
The California Class does not include those persons: (a) who are or were an Owner of an Annuity (i) that was purchased prior to January 3, 2000, or after June 30, 2011, (ii) that was issued but not accepted or was returned to American Equity as part of the exercise of the free-look provision in the Annuity or was otherwise rescinded, (iii) that was surrendered in full without incurring any Surrender Charge, (iv) that was Annuitized and the Annuity Payments have ceased, or (v) that was purchased by a natural person under age 60 and in which no person age 60 or older had an ownership interest at the time of purchase; or (b) who signed a document that released American Equity from any further claims concerning the Annuity; or (c) whose rights and claims respecting the Annuity have been finally adjudicated in a court of law; or (d) who are or were a member of the Board of Directors, an officer, or employee of American Equity at any time during the California Class Period, as well as the affiliates, legal representatives, attorneys, successors, or assigns of American Equity; or (e) who are a judge, justice, or judicial official presiding over the Action or is with the staff or immediate family of such judge, justice or official; or (f) who are a person or entity hired to administer the terms of the Settlement; or (g) which are a corporation or legal entity (corporation, partnership, etc.) or employer sponsored plan/trust; or (h) who make a valid election to be excluded from the Class as discussed in the answer to Question 13 below.
The Nationwide Class does not include those persons: (a) who are or were an Owner of an Annuity (i) that was purchased prior to January 3, 2000, or after December 31, 2009, (ii) that was issued but not accepted or was returned to American Equity as part of the exercise of the free-look provision in the Annuity or was otherwise rescinded, (iii) that was surrendered in full without incurring any Surrender Charge, (iv) that was Annuitized and the Annuity Payments have ceased, or (v) that was purchased by a natural person under age 65 and in which no person age 65 or older had an ownership interest at the time of purchase; or (b) who signed a document that released American Equity from any further claims concerning the Annuity; or (c) whose rights and claims respecting the Annuity have been finally adjudicated in a court of law; or (d) who are or were a member of the Board of Directors, an officer, or employee of American Equity at
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any time during the Class Period, as well as the affiliates, legal representatives, attorneys, successors, or assigns of American Equity; or (e) who are a judge, justice, or judicial official presiding over the Action or is with the staff or immediate family of such judge, justice or official; or (f) who are a person or entity hired to administer the terms of the Settlement; or (g) which are a corporation or legal entity (corporation, partnership, etc.) or employer sponsored plan/trust; or (h) who make a valid election to be excluded from the Class as discussed in the answer to Question 13 below.
7. Are beneficiaries of deceased contract owners entitled to relief?
Beneficiaries of an Annuity that has been terminated by death, and the beneficiary has elected to receive death benefits in the form of annuitized payments for the longer of either the lifetime of the beneficiary or a period of at least 10 years (“Qualifying Period”), shall receive a 1.75% increase in each death benefit payment. For Annuity payments that have already been paid, your future Annuity payments will be increased by an additional amount to accomplish the increase in the prior payments.
8. Does the proposed Settlement terminate my Annuity contract?
No. No matter what you decide to do in response to this Settlement -- submit a Claim Form, exclude yourself, object, or do nothing -- your Annuity contract will not be automatically terminated by the Settlement.
Your Annuity will be terminated only if you choose to take further action to terminate it. If you choose to participate in the Claim Review Process, receive Surrender Charge Reduction Benefits, and you choose to surrender your Annuity pursuant to the Claim Review Process, your contract will be terminated. Also, if you own more than one American Equity Class Annuity and choose to surrender any one of them as part of the Claim Review Process, you will be required to surrender all of them.
If you do not participate in the Claim Review Process and do not exclude yourself from the Settlement, your Annuity will not be terminated but you will release any claims that you may have as part of this Settlement.
9. I’m still not sure if I am included in the Settlement Class.
If you are not sure whether you are included in either Settlement Class, call 1-866-336-6421. THE PROPOSED SETTLEMENT BENEFITS
10. What benefits does the Proposed Settlement provide?
As stated above, there are two separate Classes -- the California Class and the Nationwide Class
California Class:
If the proposed Settlement is approved by the Court and you are a member of the California Class and do not exclude yourself, you may be eligible to receive one of the following settlement benefits:
(1) If you have an active Annuity, you may obtain a reduction of the applicable Surrender Charge as follows:
• If you, a joint owner, or a grantor of a trust which owns an Annuity were between 60 and 69 years of age at the time your Annuity was issued, you will receive up to a 42.5% reduction in applicable Surrender Charges.
• If you, a joint owner, or a grantor of a trust which owns an Annuity were between 70 and 84 years of age at the time your Annuity was issued, you will receive up to a 67.5% reduction in applicable Surrender Charges.
• If you, a joint owner, or a grantor of a trust which owns an Annuity were 85 years of age or older at the time your Annuity was issued, you will receive up to a 100% reduction in applicable Surrender Charges.
• Please note that the amount of the California Surrender Charge Reduction Benefits paid to you may be less than the maximum percentages listed above, depending upon the total number of claims that are made. For a full explanation in this regard, please refer to Section VI.A.7 of the Settlement Agreement.
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(2) If you want to get this benefit, you must surrender your policy by completing the enclosed surrender form and returning it to the Settlement Administrator by no later than December 6, 2013. Doing so could have tax consequences for you, and you should consult with a tax professional in that regard. Also if you own more than one American Equity Class Annuity and choose to surrender any one of them as part of the proposed Settlement, you will be required to surrender all of them. Please note that if you choose to surrender your Annuity pursuant to the proposed Settlement, you cannot use any of the money from that annuity to purchase another annuity from any company for a period of at least one year.
(3) Please also note that if, on or after the date of this Notice, you either: 1) surrender your American Equity Class Annuity without first completing and timely returning the enclosed surrender form; or 2) withdraw any money from your American Equity Class Annuity (other than pursuant to a previously-arranged required minimum distribution or systematic withdrawal plan), you will not be eligible for any California Surrender Charge Reduction Benefits to which you might otherwise be entitled under this Settlement. If you have previously arranged for systematic withdrawals from your American Equity Class Annuity (other than pursuant to a required minimum distribution plan), we will contact you in writing shortly to request that you let us know whether you would like to continue those distributions. If you respond by indicating that you wish to continue your distributions, or you fail to timely respond, your distributions will continue and you will not be eligible for any California Surrender Charge Reduction Benefits. If you are receiving payments pursuant to a required minimum distribution plan, you need not take any action to continue those payments and you are eligible for California Surrender Charge Reduction Benefits.
(4) If you do not elect to surrender your Annuity, but you wish to begin receiving periodic payments from it (“Annuitization”), you may be eligible to receive the same Annuitization Bonus made available to the Nationwide Class, as described below.
(5) If you have already surrendered your Annuity and paid surrender charges, you may submit a Claim asking for a partial refund of those surrender charges. To do so, please follow the instructions set forth in the Nationwide Class section below.
Nationwide Class:
If the proposed Settlement is approved by the Court and you are a member of the Nationwide Class and do not exclude yourself, you may be eligible to receive one of the following settlement benefits:
(1) If you have an active Annuity, you may apply for Surrender Charge Reduction Benefits through the Claim Review Process. If your Claim is granted, you will be eligible to receive up to either a 32.5% or a 67.5% reduction in otherwise applicable Surrender Charges. Please note that the amount of the Surrender Charge Reduction Benefits paid to you may be less than the maximum percentages listed above, depending upon the total number of Claims that are made. For a full explanation in this regard, please refer to Section V.G.1 of the Settlement Agreement. If you own more than one American Equity Class Annuity and choose to surrender any one of them as part of the proposed Settlement, you will be required to surrender all of them. Please note that if you choose to surrender your Annuity pursuant to the proposed Settlement, you cannot use any of the money from that annuity to purchase another annuity from any company for a period of at least one year. If your Claim is denied, you will not be eligible to receive any reduction in Surrender Charges.
(2) To apply for Nationwide Surrender Charge Reduction Benefits you must submit the enclosed Claim Form and provide certain information about the purchase of your Annuity. The completed Claim Form must be post-marked no later than December 6, 2013, and mailed to:
In re American Equity Annuity Practices and Sales Litigation Settlement Administrator
c/o GCG P.O. Box 35075 Seattle, WA 98124-3508
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(3) Please note that if, on or after the date of this Notice, you either: 1) surrender your American Equity Class Annuity without first completing and timely returning the enclosed Claim Form; or 2) withdraw any money from your American Equity Class Annuity (other than pursuant to a previously-arranged required minimum distribution or systematic withdrawal plan), you will not be eligible for any Nationwide Surrender Charge Reduction Benefits to which you might otherwise be entitled under this Settlement. If you have previously arranged for systematic withdrawals from your American Equity Class Annuity (other than pursuant to a required minimum distribution plan), we will contact you in writing shortly to request that you let us know whether you would like to continue those distributions. If you respond by indicating that you wish to continue your distributions, or you fail to timely respond, your distributions will continue and you will not be eligible to apply for any Nationwide Surrender Charge Reduction Benefits. If you are receiving payments pursuant to a required minimum distribution plan, you need not take any action to continue those payments and you are eligible to apply for Nationwide Surrender Charge Reduction Benefits.
(4) If through the Claim Review Process it is determined that you are not entitled to Nationwide Surrender Charge Reduction Benefits, but you wish to begin receiving periodic payments from your Annuity (“Annuitization”), you may be eligible to receive an Annuitization Bonus as follows.
(5) If you have already Annuitized your Annuity, the amount scheduled to be paid under your Annuity will be increased by 1.75%. This applies to both past and future Annuity payments. For Annuity payments that have already been paid, your future Annuity payments will be increased by an additional amount to accomplish the increase in the prior payments.
(6) If you have not already Annuitized your Annuity, but you wish to do so and you elect to receive payments over a period of the longer of your life or at least 10 years (“Qualifying Period”) American Equity will increase the Accumulation Value of each non-Annuitized Annuity by the amount of the applicable bonus, shown in the table below, calculated at the time of Annuitization. The Annuitization Bonus will be an amount equal to a percentage of the Annuity’s Accumulation Value on the date of Annuitization, and the applicable percentage will be determined by the duration of the Annuity in question, as set forth in the following table:
Policy Year Bonus Percentage
1-4 0
5-9 3.05
10 4.15
11 5.25
12 6.35
13 7.45
14 8.55
15 9.65
16 or greater 10.75
11. When might I get my Settlement Benefit?
The Court will hold a hearing on January 27, 2014, at 10:00 a.m., called the Fairness Hearing, to decide whether to approve the proposed Settlement. If the Court approves the proposed Settlement, there may be appeals. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. Also, American Equity will need some time to process and distribute any benefits to which you might be entitled. This will take several months. Please be patient.
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12. What am I giving up to get a payment or stay in the Settlement Class?
Unless you exclude yourself, you remain in the Class, and if the court approves the proposed Settlement, that means: (1) that you can't sue, continue to sue, or be part of any other lawsuit, arbitration or other legal proceeding against Defendants relating in any way to the Annuities at issue in this litigation; and (2) that you release all claims for damages or other legal remedies – including any claims presently unknown to you – relating in any way to the Annuities at issue in this litigation, if they concern, relate to, or arise out of facts, events, or transactions that have occurred or are in existence at any time prior to the Final Order and Judgment. If you want to know more about this release of claims, you should review Section XI of the Settlement Agreement. To obtain a complete copy of the Settlement Agreement, you may go to the website at www.AnnuityPracticesAndSalesSettlement.com or write to or call the Administrator. Also, if you do not exclude yourself from the Settlement, all of the Court's orders will apply to and legally bind you, even if you had objected to the proposed Settlement.
With respect to all Released Claims, Settlement Class Members agree that they are expressly waiving and relinquishing to the fullest extent permitted by law the (i) the provisions, rights, and benefits conferred by Section 1542 of the California Civil Code, which provides:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his settlement with the debtor.
and (ii) provisions of any statute or principle of law of any state or federal jurisdiction that might otherwise be applicable, or similar, comparable or equivalent to Section 1542 of the California Civil Code.
EXCLUDING YOURSELF FROM THE PROPOSED SETTLEMENT
If you do not want to be subject to the proposed Settlement or you want to keep the right to sue or continue to sue Defendants on your own with respect to claims relating in any way to your Annuity, then you must take steps to get out of the proposed Settlement. This is called excluding yourself – or is sometimes referred to as “opting out.”
13. How do I get out of the proposed Settlement?
If you do not want to be part of the proposed Settlement, you may exclude yourself or “opt out.” If you exclude yourself, you will not be entitled to any Settlement benefits described in this Notice, and you will not be bound by the Release. To exclude yourself from the proposed Settlement, you must submit a written request. This written request must be signed by you and must include: your name, address, social security number, the contract number(s) of the Annuity or Annuities at issue, and a statement that you are requesting exclusion from the Settlement Class in In re American Equity Annuity Practices & Sales Litigation. You must mail your signed request for exclusion to the Settlement Administrator at the following address:
In re American Equity Annuity Practices and Sales Litigation Settlement Administrator
c/o GCG P.O. Box 35075 Seattle, WA 98124-3508
THE ENVELOPE CONTAINING YOUR SIGNED REQUEST FOR EXCLUSION MUST BE POSTMARKED BY NO LATER THAN NOVEMBER 21, 2013.
You cannot exclude yourself on the phone, by facsimile, by e-mail, or by any other non-written means. If your signed request for exclusion is not mailed with a postmark on or before November 21, 2013, it will be ineffective and you will be part of the Settlement Class, and bound by all orders and judgments entered in connection with the Settlement, including the Release and Waiver.
14. If I don’t exclude myself, can I sue Defendants for the same thing later?
No. If the proposed Settlement is approved by the Court, and you do not exclude yourself, you give up the right to sue Defendants for the claims that this proposed Settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit about this Notice immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is November 21, 2013.
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THE LAWYERS REPRESENTING YOU
15. Do I have a lawyer in this case?
Yes. The Court appointed the following law firms to represent the Settlement Classes: Robbins Geller Rudman & Dowd LLP, Bonnett Fairbourn Friedman & Balint P.C., and Hagens Berman Sobol Shapiro LLP. Together the law firms are called Class Counsel. You will not be charged for the services of these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.
16. How will the lawyers be paid?
No later than November 7, 2013, Class Counsel will file with the Court their petition for approval of an award of attorneys’ fees and costs of up to $7,750,000. The Court may award less than this amount. American Equity will separately pay the attorneys’ fees and expenses. American Equity has agreed not to oppose a request for attorneys’ fees and expenses up to $7,750,000. This payment will not affect the benefits available to Settlement Class Members.
17. What payments will be made to the Class Representatives?
Class Counsel will ask the Court to award each of the Class Representatives a total of no more than $10,000 as a service award. American Equity will separately pay the service award. This payment will not affect the benefits available to Settlement Class Members.
OBJECTING TO THE PROPOSED SETTLEMENT
You can tell the Court if you do not agree with all or any part of the proposed Settlement. 18. How do I tell the Court that I do not like the proposed Settlement?
If you are a Settlement Class Member, you can object to the proposed Settlement if you do not like any part of it. The Court will consider your views in connection with the Fairness Hearing described below. To object, you must send your objection in writing, saying that you object to the proposed Settlement. You may not object if you exclude yourself from the proposed Settlement.
If you wish to object to the proposed Settlement, you must file your written objection with the Clerk of the Court of the Honorable Christina A. Snyder, Courtroom 5 – 2nd Floor, 312 N. Spring St., Los Angeles, CA 90012, and deliver a copy to Class Counsel and Defendants’ Counsel at the addresses listed below. The objection must be in writing and must be filed and served on Parties’ counsel no later than November 21, 2013. The court likely will not consider an objection that is not timely and properly made.
All objections must contain the following: (i) the objecting party’s name, address, telephone number, social security number, and, if available, Annuity number(s); (ii) the factual basis and legal grounds for the objection; and (iii) the signature of the individual who is objecting.
Class Counsel Defendants’ Counsel
Andrew S. Friedman Fletcher C. Alford
Bonnett Fairbourn Friedman & Balint PC Dentons US LLP
2325 E. Camelback Road, #300 525 Market Street, 26th Floor
Phoenix, AZ 85016 San Francisco, CA 94105-2708
19. What is the difference between objecting and excluding?
Objecting is simply telling the Court that you do not like something about the proposed Settlement. You can object only if you stay in the Settlement Class. If you object, you will remain in the Settlement Class and will be bound by the proposed Settlement if the court approves it, despite your objection. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you.
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THE COURT’S FAIRNESS HEARING
The Court will hold a hearing to decide whether to approve the proposed Settlement. You may attend and ask to speak, but it is not required.
20. When and where will the Court decide whether to approve the proposed Settlement?
The Court will hold a Fairness Hearing at 10:00 a.m. on January 27, 2014, (or such continued dates or times as the Court may direct without further notice to the Class) in Courtroom 5 – 2nd Floor, 312 N. Spring St., Los Angeles, CA 90012. At this hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court may listen to people who, prior to the hearing, have asked to speak at the hearing. The Court will also decide how much to pay Class Counsel and whether to approve the service award to the Class Representatives. After the hearing, the Court will issue its decision on the matters addressed at the Fairness Hearing. We do not know when that decision will be made.
21. Do I have to come to the Fairness Hearing?
No. Class Counsel will answer questions that the Court may have. You are welcome to come 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 filed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend if you wish to do so.
You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must do two things: First, you must object to the proposed Settlement in accordance with the procedures described above in the response to Question 18. Second, you must file a Notice of Intention to Appear at the Fairness Hearing with the Clerk of the Court of the Honorable Christina A. Snyder, Courtroom 5 – 2nd Floor, 312 N. Spring St., Los Angeles, CA 90012, and deliver a copy to Parties’ counsel at the addresses listed above, under Question 18. The Notice of Intention to Appear must be in writing and must be filed and served on Parties’ counsel no later than November 21, 2013. Be sure to include your name, address, telephone number, and your signature on your Notice of Intention to Appear. You cannot speak at the hearing if you do not follow these procedures or if you exclude yourself.
GETTING MORE INFORMATION
22. How do I get more information about the proposed Settlement?
This Notice summarizes the proposed Settlement. More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement or Class Counsel’s petition for approval of fees and costs, once the petition is filed, by visiting the Settlement website www.AnnuityPracticesAndSalesSettlement.com, or by writing to the Administrator. You must mail your signed request for information to the Administrator at the following address:
In re American Equity Annuity Practices and Sales Litigation Settlement Administrator
c/o GCG P.O. Box 35075 Seattle, WA 98124-3508
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23. What are the important dates and deadlines relating to the proposed Settlement?
Deadline Event
November 7, 2013 Class Counsel will file a petition for approval of an award of attorneys’ fees and costs and request for a service fees for the class representatives
November 21, 2013 Last day to submit a request for exclusion from the proposed Settlement November 21, 2013 Last day to submit objections to the proposed Settlement
November 21, 2013 Last day to file Notice of Intent to Appear December 6, 2013
December 6, 2013
Last day to submit a Claim Form for Surrender Charge Reduction Benefits
Last Day for California subclass members to return surrender forms January 27, 2014 at 10:00 a.m. Fairness Hearing
Dated: September 16, 2013 /s/ Christina A. Snyder
