Opinion
2:19-cv-00176-NT
09-14-2022
ERNEST J. GLYNN, et al., Plaintiffs, v. MAINE OXY-ACETYLENE SUPPLY CO., et al., Defendants.
NOTICE OF CLASS ACTION SETTLEMENT
To: All Maine Oxy employees who participated in the company ESOP and who sold their shares back to Maine Oxy after Bruce and Joseph Albiston sold their 51% interest in the company.
You are receiving this Notice in connection with the above-captioned lawsuit. This notice explains the settlement of this lawsuit and your options.
A federal court has authorized this notice. This is not a solicitation from a lawyer.
I. Introduction
The Class Action alleges that in 2012, Defendants Guerin and Gentry purchased 51% of Maine Oxy's outstanding stock (25,500 shares) from Bruce and Joseph Albiston for a total purchase price of approximately 17 million dollars. In 2013, the Defendants terminated the ESOP plan and paid ESOP members $134.92 a share for the remaining 49% of the company stock, or approximately 3.3 million dollars in total. The Class Action claims that ESOP members are entitled to additional compensation in order to ensure that a fair price was paid for ESOP stock in 2013.
The parties have agreed to settle these claims for an additional payment of $6,330,000.00, inclusive of attorney fees and costs. If approved by the Court, the settlement will be paid in two installments. The first payment will be issued when this proposed settlement is finally approved by the Court. The second installment payment will be issued in August 2023 or within 30 days of the Court's final approval of the settlement, if later. These settlement funds will provide a substantial cash benefit to class members without the risks or delays of additional litigation. The benefit provided by this settlement must be balanced against the risk of a smaller recovery, or no recovery at all, if the lawsuit proceeds, which includes the possibility that could extend this case for months or years into the future.
The Defendants deny the allegations in the Class Action that they violated any laws and/or that they owe the class members any money. The Defendants have agreed to this Settlement to avoid the risk, uncertainty, burden and expense of additional litigation.
II. The Terms of Settlement
The Defendants have agreed to pay $6,330,000.00, inclusive of attorney fees and costs, to resolve this case. This number represents the value found by the expert witness hired by the Class to be the correct value of the stock in 2013 ($400 per share), multiplied by the number of ESOP shares in 2013 ($400.00 x 24,500 shares = $9,800,000), less the $3.3 million already paid by the Defendants for the ESOP stock in 2013 ($9,800,000 - $3,300.000 = $6,500,000). This 6.5 million dollar figure was then reduced by $200,000.00 to account for the value of ESOP shares held by Defendant Daniel Guerin and Carl Paine, who have both opted out of this Class Action.
Your potential settlement award will be calculated by (1) multiplying the number of shares you returned to Maine Oxy in 2013 by the adjusted share price ($400 per share - $134.92 value previously paid in 2013 = $276.26 per share) as rounded upward to account for the Guerin and Paine opt outs, and (2) subtracting your pro-rata share of attorney fees, costs, and class representative incentive awards as approved by the Court.
This Notice contains only a summary of the Settlement's terms. You may obtain a full copy of the Settlement Agreement by contacting Class Counsel. Contact information for Class Counsel is listed below.
III. What Are My Options?
You have the following options:
Do Nothing
No action is required if you decide to stay in the class action.
Object to the Settlement
If you object to the proposed Settlement, in whole or in part, you may (but are not required to) write to the Court and explain why you object. You cannot object to the Settlement unless you are a Class Member and you did not previously submit a request to opt out of the Class or the Settlement. To raise your objection, you must file a written objection with the Clerk of Court's Office as described below. If you submit a written objection by [60 days from date of mailing], you may (but do not have to) attend the Settlement Fairness Hearing and, at the discretion of the Court, may speak to the Court about your objection.
IV. Why Did I Receive This Notice?
Defendant Maine Oxy's records show that you were a member of its ESOP program and that you received payment for your shares after the ESOP program was terminated in 2013. The Court has defined members of the Class to include the following individuals:
All Maine Oxy employees who participated in the company ESOP and who sold their shares back to Maine Oxy after Bruce and Joseph Albiston sold their 51% interest in the company.
The Court has authorized the mailing of this notice regarding the settlement of this class action that may affect you. You have legal rights and options that you may exercise in this case. The lawsuit is known as Glynn et. al. v. Maine Oxy Acetylene Supply Co., Daniel Guerin and Bryan Gentry, Civil Action No. 2:19-cv-00176-NT and is filed in the federal court in the United States District Court for the District of Maine.
V. Can My Employer Fire Me or Retaliate Against Me If I Take Part In This Case?
The law strictly forbids any employer from retaliating against you for participating in this Class Action. Retaliation is illegal, and you could be entitled to additional money if a court should determine that the Defendants took any adverse action against you because you joined this lawsuit. If you experience any retaliation, you should report it immediately to Class Counsel (identified below) or another attorney of your choice.
VI. How Do I Receive A Payment?
If you are a member of the class as defined above, you will receive two payments. The first payment will be mailed to you after the Court grants final approval of this proposed settlement. The second payment will be mailed to you in August 2023, or within 30 days of the Court's final approval of the settlement, if later.
VII. What Happens If I Do Nothing?
If you are a member of the Class as defined above, if the settlement is approved by the Court you will receive two settlement payments as described in the previous section.
VIII. How Do I Object to the Settlement?
Class Members may object to the Settlement in whole or in part. Objections must be made in writing and filed, together with copies of all papers and briefs supporting the objection, with the Clerk of Court on or before [60 days from date of mailing]. You must also serve the papers on Class Counsel and Defendants' Counsel at the addresses below so that the papers are received on or before .
| U.S. District Court | Class Counsel | Defendants' Counsel |
| Clerk's Office 156 Federal Street Portland, ME 04101 | Thomas L. Douglas, Esq. Douglas McDaniel & Campo LLC, PA 90 Bridge Street, Suite 100 Westbrook, ME 04092 (207)591-5747 tdouglas@douglasmcdaniel.com Jeffrey P. Russell, Esq. Bloomer Russell & Beaupain 175 Exchange St. Bangor, ME 04401 (207)942-7110 jeff@bloomerrussell.com Lauren Thomas, Esq. Law Office of Lauren Thomas 18 Wild Rose Ave. South Portland, ME 04106 (207)619-4149 | E.Thomas Henefer, Esq. Stevens and Lee, P.C. 111 North Sixth St. P.O. Box 679 Reading, PA 19603 (610)478-2000 Peter J. Brann, Esq. Brann & Isaacson 184 Maine St., 4th Fl. Lewiston, ME 04243-3070 (207)786-3566 |
Any objection to the Settlement must: (a) state the name, address, and telephone number of the person or entity objecting and must be signed by the objector; (b) contain a statement of the Class Member's objection(s) and the specific reasons for each of objection, including any legal or evidentiary support the Class Member wishes to bring to the Court's attention, and (c) must include documents sufficient to prove the objector's membership in the class. You may not object to the Settlement if you are not a Class Member. If you do not comply with these requirements prior to__, you waive your right to object to the settlement.
You may file a written objection without having to appear at the Settlement Fairness Hearing. You may not, however, appear at the Settlement Fairness Hearing to present your objections unless you first filed and served a written objection in accordance with the procedures described above, unless the Court orders otherwise.
If you wish to be heard orally at the hearing in opposition to the approval of the Settlement, and if you file and serve a timely written objection as described above, you must also file a notice of appearance with the Clerk's Office and serve it on Class Counsel and Defendants' Counsel at the addresses set forth above so that it is received on or before __.
Persons who intend to object and desire to present evidence at the Settlement Fairness Hearing must including in their written objection or notice of appearance the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the hearing. Such persons may be heard orally at the discretion of the Court.
You are not required to hire an attorney to represent you in making written objections or in appearing at the Settlement Fairness Hearing. However, if you decide to hire an attorney, it will be at your own expense, and that attorney must file a notice of appearance with the Court and serve it on Class Counsel and Defendants' Counsel at the addresses set forth above so that notice is received on or before _. The Settlement Fairness Hearing may be adjourned by the Court without further written notice to the Class. Unless the Court orders otherwise, any Class Member who does not object in the manner described above will be deemed to have waived any objection and shall be forever foreclosed from making any objection to the proposed Settlement.
IX. Do I Have a Lawyer In This Case?
The Class Members are currently represented by Thomas L. Douglas, Esq. of Douglas McDaniel & Campo, 90 Bridge Street, Suite 100, Westbrook Maine 04092, Jeffrey P. Russell, Esq. of Bloomer, Russell & Beaupain, 175 Exchange St., Bangor, ME 04401 and Lauren Thomas, Esq., the Law Office of Lauren Thomas Esq., 18 Wild Rose Ave, South Portland, ME 04106 (collectively “Class Counsel”). If you have questions or need additional information, please contact Class Counsel using the information set forth above.
X. How Will the Lawyers Be Paid? How Will Costs Be Paid?
Class Counsel has not yet received payment of any attorney's fees or expenses incurred in representing the Class. Per Class Counsel's representation agreements with the Class Representatives (Ernest Glynn, Jeffrey MacDonald, Josh Richardson and Douglas Johnson), Class Counsel intends to ask that the Court allocate 1.2 million dollars of the $6,330,000.00 settlement for attorney fees and costs, which is approximately 19% of the total settlement amount. In addition, Class Counsel will seek an incentive award of $7500.00 for each of the four Class Representatives. If approved, this will be paid from the settlement fund allocated to Class Members.
You may also hire your own attorney to represent you in this matter. If you do, it will be at your own expense.
XI. When and Where Will the Court Decide Whether to Approve the Settlement?
The Court will determine whether to approve this settlement. In order to do so, the Court will conduct a Settlement Fairness Hearing on __, at the United States Courthouse located at 156 Federal Street, Portland, Maine. Although you may attend this hearing, you do not need to attend in order to participate in the Settlement. At the hearing, the Court will determine:
(a) Whether the proposed settlement is fair, reasonable and adequate;
(b) Whether the lawsuit should be dismissed with prejudice;
(c) Whether Class Counsel's request for an award of attorney fees and expenses should be finally approved; and
(d) Any other relief that the Court deems necessary.
The Court may approve the Settlement and/or any other related matter at or after the Settlement Fairness Hearing without further notice to Class Members.
XII. Please Notify Us of Any Changes in Your Address
If your mailing address has changed since you first received notice of this Class Action, please contact Class Counsel promptly and provide your new mailing address.
Please Direct Any Questions Regarding This Notice to Class Counsel using the information set forth above.