Opinion
03 Civ. 2937 (WHP), 03 Civ. 2938 (WHP), 03 Civ. 2939 (WHP), 03 Civ. 2940 (WHP), 03 Civ. 2941 (WHP), 03 Civ. 2942 (WHP), 03 Civ. 2943 (WHP), 03 Civ. 2944 (WHP), 03 Civ. 2945 (WHP), 03 Civ. 2946 (WHP), 03 Civ. 2947 (WHP), 03 Civ. 2948 (WHP), 04 Civ. 06909 (WHP), 04 Civ. 06910 (WHP).
December 19, 2006
ORDER
WHEREAS, Goldman, Sachs Co. ("Goldman Sachs") and Deutsche Bank Securities Inc. ("DBSI") were ordered, pursuant to § II.B of their Final Judgments, dated October 31, 2003, and September 24, 2004, respectively, to contribute certain funds to create "Distribution Funds"; and
WHEREAS, pursuant to § IV.B of those Final Judgments, Goldman Sachs and DBSI were required to pay their proportional share of certain fees, costs and expenses incurred by the Distribution Fund Administrator and any person engaged to assist him incidental to the performance of his duties; and
WHEREAS, the Distribution Funds created on behalf of Goldman Sachs and DBSI were depleted no later than February 28, 2006; and
WHEREAS, fees, costs and expenses have been incurred by the Distribution Fund Administrator after February 28, 2006 related to the formulation and implementation of a plan to distribute unexpended funds of the other settling banks; and
WHEREAS, by Order dated September 22, 2006, this Court ordered "that the fees, costs and expenses incurred by the Distribution Fund Administrator after July 7, 2006 and going forward shall be paid from interest accrued by the Distribution Funds"; and
WHEREAS, all Defendant investment banks other than Goldman Sachs and DBSI continue to be obligated to pay the fees, costs and expenses incurred by the Distribution Fund Administrator and approved by the Court in connection with and incidental to the performance of his duties under those Defendant investment banks' Final Judgments and any further applicable Orders of the Court, including the fees, costs, and expenses of any persons engaged to assist the Distribution Fund Administrator and all administrative fees, costs, and expenses related to the Distribution Fund Plan; and
WHEREAS, Defendant investment banks Bear, Stearns Co., Inc., Citigroup Global Markets, Inc., Credit Suisse First Boston LLC, J.P. Morgan Securities, Inc., Lehman Brothers, Inc., Merrill, Lynch, Pierce, Fenner Smith, Inc., Morgan Stanley Co., Inc., Thomas Weisel Partners LLC, U.S. Bancorp Piper Jaffray Inc. and UBS Securities LLC shall pay their proportionate shares of the payments to the Distribution Fund Administrator approved by the Court for their Related Actions; now therefore,
IT IS ORDERED that: Goldman Sachs and DBSI shall have no obligation to pay any fees, costs or expenses incurred after February 28, 2006 by the Distribution Fund Administrator or any person engaged to assist him as set forth in § IV.B of their Final Judgments in connection with the formulation and implementation of a plan to distribute the unexpended funds from the other settling banks' Distribution Funds.
The remaining Defendant investment banks shall pay the amount of $695,499.75 to the Distribution Fund Administrator and those retained to assist him for services provided and expenses incurred between March 1, 2006 and July 7, 2006. The amount of the invoice is allocated to these Individual Defendants as follows: Proportional Named Institution Allocation Amount to be Paid $45,877.29 $45,877.29 $45,877.29 $7,340.37 $22,938.65 $45,877.29 $9,175.46 $289,026.94 $137,631.88 $45,877.29 TOTAL TO BE PAID $695,499.75
Bear, Stearns Co. Inc. 6.60% J.P. Morgan Securities Inc. 6.60% Lehman Brothers Inc. 6.60% Merrill Lynch, Pierce, Fenner Smith Incorporated 1.06% US Bancorp Piper Jaffray Inc. 3.30% UBS Securities LLC 6.60% Thomas Weisel Partners LLC 1.32% Citigroup Global Markets Inc. 41.56% Credit Suisse First Boston LLC 19.79% Morgan Stanley and Co. Incorporated 6.60% Defendant Institutions are directed to send their amount to be paid by December 29, 2006.Payments by regular check should be sent to:
DFP Services Expenses Francis McGovern, Administrator David Boxer, DFP Accountant Weiser LLP 12th Floor 135 West 50th Street New York, NY 10020-1299Payments by electronic transfer should be sent to:
Commerce Bank, N.A. (Comm BK Marlton) Cherry Hill, NJ ABA #: 026013673 Credit to: DFP Services Expenses Account # 7916789485
The Clerk is directed to file copies of this Order in all of the related actions: (1) SEC v. Bear Stearns and Co. Inc., 03 Civ. 2937 (WHP); (2) SEC v. Jack B. Grubman, 03 Civ. 2938 (WHP); (3) SEC v. J.P. Morgan Securities Inc., 03 Civ. 2939 (WHP); (4)SEC v. Lehman Brothers Inc., 03 Civ. 2940 (WHP); (5) SEC v. Merrill Lynch Pierce Fenner Smith, Inc., 03 Civ. 2941 (WHP); (6) SEC v. U.S. Bancorp Piper Jaffray, Inc., 03 Civ. 2942 (WHP); (7) SEC v. UBS Securities LLC, 03 Civ. 2943 (WHP); (8) SEC v. Goldman, Sachs and Co., 03 Civ. 2944 (WHP); (9) SEC v. Citigroup Global Markets Inc., 03 Civ. 2945 (WHP); (10) SEC v. Credit Suisse First Boston LLC, 03 Civ. 2946 (WHP); (11) SEC v. Henry M. Blodget, 03 Civ. 2947 (WHP); (12) SEC v. Morgan Stanley Co. Incorporated, 03 Civ. 2948 (WHP); (13) Deutsche Bank Securities Inc., 04 Civ. 06909 (WHP); and (14) Thomas Weisel Partners LLC, 04 Civ. 069109 (WHP).
SO ORDERED.