Euro Security Fund Distribution Plan

On February 26, 2003, the Honorable Denise Cote, United States District Court Judge for the Southern District of New York, entered an Order approving the Euro Security Fund Distribution Plan. The Plan sets forth the process for the distribution of funds disgorged by settling defendants who engaged in alleged illegal insider trading in the securities of Elsag Bailey before ABB Asea Brown Boveri Ltd. announced it had made a tender offer for the company’s securities on October 14, 1998. The SEC has posted a number of litigation releases concerning this matter. You can find them by visiting the SEC’s website and inserting "Euro Security Fund" in the “search” box in the upper right-hand corner of the screen.

Judge Cote appointed Celia Goldwag Barenholtz, Esq., as Receiver to distribute the approximately $5.5 million collected by the SEC from the defendants. You may be eligible to file a claim if you made:

• sales of Elsag common stock on October 8, 9, 12, or 13, 1998;

 
• sales of Elsag Nov. $20 calls on October 2, 5, or 7, 1998;

 
• sales of Elsag Nov. $22.50 calls on October 7, 1998;

 
• sales of Elsag Nov. $25 calls on September 28, October 2, 6, or 7, 1998; or

 
• sales of Elsag Nov. $30 calls on September 10, 1998.

Please note that the presence of other transactions, in addition to those listed above, may affect your entitlement to a payment and the amount of any such payment. Please see the terms and conditions of eligibility in the Court’s Order. 

On August 30, 2006, the Receiver distributed $7,331.966.49 to 47 eligible claimants. If you have questions, you can contact the Receiver by e-mail at ElsagSettlement@kronishlieb.com.

http://www.sec.gov/divisions/enforce/claims/eurosecurity.htm