Optiver Commodities Litigation

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Optiver Commodities Litigation
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Plan of Allocation and Calculation Examples
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On June 2, 2015, the Court held a Fairness Hearing and on June 22, 2015 entered a Final Order and Judgment which approved the Settlement. For a copy of the Order, please click here.


The information contained on this web page is only a summary of information presented in more detail in the Notice of Proposed Settlement of Class Action, May 19, 2015 Hearing Thereon, And Class Members’ Rights (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional details.

 

Your Legal Rights Are Affected Whether You Act Or Do Not Act.  Please read the Notice carefully.

 

IF YOU PURCHASED, SOLD OR HELD NYMEX LIGHT SWEET CRUDE OIL FUTURES CONTRACTS, NYMEX NEW YORK HARBOR HEATING OIL FUTURES CONTRACTS, OR NYMEX NEW YORK HARBOR GASOLINE FUTURES CONTRACTS AT ANY TIME FROM MARCH 2, 2007 THROUGH MARCH 26, 2007, INCLUSIVE, (THE “CLASS PERIOD”), YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.

 

 

IMPORTANT DATES AND DEADLINES

SUBMIT A PROOF OF CLAIM

Postmarked no later than August 3, 2015

EXCLUDE YOURSELF

Postmarked no later than April 14, 2015

OBJECT TO THE SETTLEMENT

Received no later than April 27, 2015 and filed with the Court no later than April 27, 2015

SETTLEMENT HEARING


June 2, 2015 at 9:00 a.m.

United States District Court for the Southern District of New York


 

 

What is this case about?

Plaintiffs allege that each Defendant, between March 2, 2007 and March 26, 2007, inclusive (the “Class Period”), caused and aided and abetted the causation of artificial prices in NYMEX Light Sweet Crude Oil, NYMEX New York Harbor Heating Oil and NYMEX New York Harbor Gasoline futures contracts (the “contracts”) in violation of the Commodity Exchange Act (“CEA”), the Sherman Act, NYMEX rules and the common law by amassing dominant NYMEX trading at settlement (“TAS”) contract positions and offsetting such positions through NYMEX futures contracts transactions in the opposite direction of the TAS positions during the Closing Period. 

Defendants allegedly overpaid to buy and undersold to sell the contracts during the Closing Period and thereby caused the Volume Weighted Average Prices (“VWAP”) of the contracts to be artificial.  During the relevant period, NYMEX rules provided that the settlement price of the current delivery of the spot month futures contract was the weighted average price (VWAP) of all outright transactions which occur in that delivery month during the Closing Period. 

Plaintiffs allege that the large trading by Defendants during the Closing Period consistently caused a statistically significant, persistent and non-transitory impact on prices for NYMEX Crude Oil, Heating Oil and Gasoline futures contracts.  Plaintiffs allege that Defendants’ conduct caused Plaintiffs and others similarly situated to transact in an artificial and manipulated market at manipulated and artificial prices during the Class Period.   Plaintiffs further allege that Plaintiffs and Settlement Class Members who held positions in Class Contracts at the times that Defendants allegedly manipulated the prices of those contracts and thereafter liquidated their positions in such contracts at artificial prices suffered damages even if such liquidations occurred after the Class Period.  Plaintiffs also allege that Defendants’ alleged manipulation constituted a contract, combination or conspiracy to restrain trade and an attempt to manipulate the market for the contracts.  

A critical issue in these claims is whether Defendants’ trading strategy was manipulative.  Defendants argued, and some contemporaneous evidence indicated, that their trading strategy did not inject artificial forces of supply or demand into the market, and that Defendants did not intend to inject any such forces into the market.  Instead, Defendants traded with others in one market (TAS) and then transferred that supply or demand into the futures market.  Plaintiffs argued, and certain email and other evidence indicated, that Defendants calculated the transfer of the supply or demand in a particular market in a way to have a greater impact on prices in the futures market than legitimate trading would have had.  To that extent, Plaintiffs alleged and argued that Defendants’ trading was manipulative or artificially impacted prices.

Defendants have consistently and vigorously denied Plaintiffs’ claims.  By entering into the Settlement Agreement with Plaintiffs, Defendants do not admit and continue to deny that they engaged in any unlawful conduct, and that any Member of the Settlement Class suffered compensable damages.  Absent a settlement, Defendants would continue to vigorously oppose Plaintiffs’ claims and allegations of damages.


The Settlement Benefits

Defendant Optiver US LLC, on behalf of all Defendants, has agreed to make a Payment in the amount of $16,750,000 within seven days of the Court’s Order requiring that notice be sent for the Settlement Class.  This Payment, plus interest that will accrue thereon after it is made, constitutes the Settlement Fund, from which will be deducted: (a) up to $250,000 to pay reasonable and appropriate costs associated with giving notice to the Settlement Class and administration of the Settlement; (b) any amounts necessary to pay Taxes assessed on the Settlement Fund; (c) the Attorneys’ Fees Award and any Incentive Award for the Plaintiffs (see Question 20 of the Notice for an explanation of these terms); (d) the amount necessary to cover the attorneys’ fees for services performed by Class Counsel and expenses incurred by Class Counsel after the Fairness Hearing (explained below); and (e) the costs reasonably incurred and reasonably expected to be incurred by the Settlement Administrator after the Fairness Hearing.  The amounts remaining in the Settlement Fund after these deductions shall constitute the Net Settlement Fund.  Qualifying Settlement Class Members will receive a share of the Net Settlement Fund if the Court approves the Settlement, in an amount to be calculated as described in this notice and in greater detail in the Plan of Allocation found by clicking here.


The Rights of Class Members

If you are a member of the Class, you have the following options:

Submit a Proof of Claim

If you are a member of the Class, you may be entitled to share in the Settlement Fund if you submit a valid and timely Proof of Claim, which can be found here, postmarked no later than August 3, 2015.  If you do not submit a valid Proof of Claim form, you will not be eligible to share in the distribution of the Settlement Fund, but you will still be bound by any judgments or orders entered by the Court in the Action.

 

Exclude yourself from the Settlement

If you are a member of the Class, but wish to exclude yourself from the Settlement Class, you must submit a written request for exclusion in accordance with the instructions set forth in the Notice, postmarked  no later than April 14, 2015.  The Request for Exclusion form can be found here.

If you do not timely exclude yourself from the Settlement Class, you will be bound by any judgments or orders entered by the Court in the Action. If you are excluded from the Settlement Class, you will not be entitled to object to any aspect of the Settlement or share in the Settlement Fund or otherwise participate in the Settlement.

 

Object to the Settlement

Any objections to the proposed Settlement, Plan of Allocation, the application for attorneys’ fees and reimbursement of expenses must be served on Class Counsel and Defendants’ counsel in accordance with the instructions set forth in the Notice, received no later than April 27, 2015, and filed with the Court no later than April 27, 2015.


The Court’s Settlement Hearing

The Court will hold a Settlement Hearing at 9:00 a.m. on June 2, 2015, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 12A, New York, NY 10007.  At this hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate.  The Court may also decide how much to award Class Counsel for fees and expenses for representing the Settlement Class and whether and how much to award the Plaintiffs for representing the Settlement Class.

Please note that the time and date of the Fairness Hearing may be changed. You are advised to contact the Settlement Adminstrator or check this website for updates.


Further Information:

The information provided on this website and in the Notice summarizes the proposed Settlement. For more details regarding this Settlement, please reference the Stipulation and Agreement of Settlement, dated July 24, 2014, and other important documents filed in the case under the “Court Documents” link on the left.  You may also contact the Settlement Administrator or Class Counsel for further information regarding this Settlement:

 

Settlement Administrator:

 

In re: Optiver Commodities Litigation Settlement

c/o A.B. Data, Ltd.

PO Box 170500

Milwaukee, WI  53217-8091

866-778-9470

info@nymextassettlement.com


Class Counsel:

 

 

Ian T. Stoll

LOVELL STEWART HALEBIAN

   JACOBSON LLP

61 Broadway, Suite 501

New York, New York 10006

 

 

Vincent Briganti

LOWEY DANNENBERG COHEN

& HART, P.C.

One North Broadway

White Plains Plaza, 5th Floor

White Plains, New York 10601


 

Hollis Salzman

ROBINS, KAPLAN, MILLER

& CIRESI L.L.P.

601 Lexington Ave., Ste. 3400

New York, New York 10022

 

 

 

Commodities Brokers and other Nominees: Please visit the Institutional E-Filing page of this website

 

If you have questions, you may call the In re: Optiver Litigation Help Line at

866-778-9470 or email info@nymextassettlement.com. 
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