Gordon Dumont, Et Al. V. Charles Schwab & Co., Inc., Et Al. 99-CV
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U S (~Es ~ ?-A SCt"°RT ,I LA ~~ :u -9 F'r' 2 ► 1 : 22 UNITED STATES DISTRICT COURT fir;: j -;-R r/ SY, l CLEF? EASTERN DISTRICT OF LOUISIANA `r__ GORDON DUMONT * N VERSUS * /w 99-2841 CHARLES SCHWAB i7N (JUDGE SCHWARTZ) & CO, INC. * MAG. 5 (JUDGE CHASEZ) THIS ORDER APPLIES TO ALL CASES FINAL ORDER AND JUDGMEN T Before the Court is the motion for final approval of the terms of the Se ttlement Agreement between the Class Representatives in the above-captioned and consolidated class actio n cases and Defendant Charles Schwab & Co ., Inc., acting through their counsel. The Class Representatives (through Class Counsel) and Schwab (together, the "Settling Parties") executed th e Settlement Agreement on June 30, 1999 . On October 15, 1999, this Court entered its Order o f Preliminary Approval, scheduling a Settlement Hearing to consider such matters as whether the proposed settlement should be approved as fair, adequate and reasonable . The Settlement Hearing was held before the Court beginning on May 30, 2000, at which time all interested persons were given an opportunity to be heard . Considering all the papers filed and proceedings held in connection with the motion, and the Notice of Settlement having been given in accordance with this Court's Order entered October 15, 1999, the Court concludes that the Settlement Agreement is fair, adequate and reasonable, and that it should be approved . Accordingly, IT IS ORDERED, ADJUDGED AND DECREED as follows: DATE OF ENTRY r~ NOV -92000 1 . This Court has original and supplemental jurisdiction over the subject matter of thi s Class Action and over all parties to this Class Action, including all members of the Class . Thus, this Court is authorized to resolve by se ttlement and judgment all of the "Released Claims," as that term is defined below; 2. Definitions. b. For purposes of the Settlement Agreement and this Final Order and Judgment, the "Class" is defined as follows : All persons wherever located, who, since 1985 through June 30, 1999, (1) maintain or have maintained an account with Charles Schwab & Co., Inc. ; (2) for whom Schwab has acted as agent or principal in connection with the receipt, entry or execution of orders and/or transactions in equity securities, and (3) challenge : (a) the manner and/or quality in which any customer's order was routed, handled, priced or executed by Schwab or the market maker, the specialist or the exchange to whom Schwab or its agent routed the order for execution ; and/or (b) the absence of automatic routing systems and/or individual routing practices for posting orders on other proprietary trading systems or networks (e.g., SelectNet, Instinet or any other alternative trading system) ; and/or (c) whether the customer received the benefit of alleged superior prices posted or potentially available through such other proprietary trading systems or networks ; and/or (d) the receipt of any compensation or other remuneration in connection with the manner in which the order was routed, handled, priced or executed by Schwab or any Released Party ; and/or (e) any disclosures, marketing materials, or advertising relating to same by Schwab or any Released Party. Notwithstanding the foregoing, the term "Class Members" does not include Schwab and Release d Parties; b. "Released Claims" are defined as follows : All issues and claims that were brought, or could have been brought against Schwab or any Released Party, of any kind or nature, under federal or state law (including but not limited to the SEC, NASD, or NYSE rules or regulations), that relate to, arise out of, are connected with, attack or challenge : (a) the manner and/or quality in which any customer's order was routed, handled, priced, or executed by Schwab or the market maker, the specialist or the exchange to whom Schwab or its agent routed the order for execution ; and/or (b) the absence of automatic routing systems and/or individual routing practices for posting orders on other proprietary trading system or networks (, SelectNet or Instinet); and/or (c) whether the customer received the benefit of alleged superior prices posted or potentially available through such other proprietary trading systems or networks; and/or (d) the receipt of any compensation or other remuneration in connection with the manner in which the order was routed, handled or executed by Schwab or any Released Party; and/or (e) the disclosures, marketing materials, or advertising relating to same by Schwab or any Released Party, since 1985 through June 30, 1999 . "Released Parties" are defined as follows: Schwab and its affiliates (including its market-maker affiliate Mayer & Schweitzer, Inc.), and their present or former officers, directors, employees, agents, attorneys, successors, reorganized successors, assigns, subsidiaries, parents, divisions, and predecessors. 3 . This Court hereby approves the settlement set forth in the Settlement Agreement an d finds the settlement to be, in all respects , fair, adequate and reasonable to the Class in accordance with Rule 23 of the Federal Rules of Civil Procedure . The Settling Parties are hereby directed to consummate and perform its terms . 4. The Order ofPreliminary Approval directed the Parties to give notice ofthe propose d settlement, clarification of class definition and claims, and the Settlement Hearing to Class Members . Affidavits of mailing and publication, filed with the Court , demonstrate that this Court's directions with respect to the Notice of Settlement have been complied with. The Court finds that this notic e given to the Class was in compliance with this Court's Order entered October 15, 1999, and that th e notice constituted the best notice practicable under the circumstances, which included individual notice to all Class Members who could be identified with reasonable effort . The notice to Class Members fully satisfied and complies with the requirements of the due process clause of the United States Constitution and Rule 23 of the Federal Rules of Civil Procedure . 5 . This Court hereby dismisses, on the merits and with prejudice, without costs to an y party, these Class Actions in favor of Schwab and against the Class Members who did not opt-out of the class in response to the initial notices of class action or validly request exclusion from the Class. Those Class Members who did not opt-out of the class in response to the intial class notices and have not filed timely and valid requests for exclusion from the settlement ("Settlement Class Members") are bound by this Judgment and by the terms of the Settlement Agreement. A list of those members of the Class who have filed timely and valid requests for exclusion from the Class is annexed hereto as Attachment A and made a part hereof. Any member of the Class whose name does not appear on the list annexed hereto as Attachment A failed to opt-out or file a timely and valid request for exclusion from the Class and is hereby barred from asserting otherwise . Those Class Members who have opted-out or filed timely and valid requests for exclusion from the settlement and appear on the list annexed hereto as Attachment A are not bound by this Judgment, but shall not receive any benefit hereunder. 6 . The approval of the Settlement Agreement and the entry of this Judgment (I) full y releases and discharges Schwab with respect to Released Claims belonging to Settlement Class Members ("Settlement Class Claims"), and it (ii) releases and discharges the Released Parties from liability for conduct by Schwab with respect to Settlement Class Claims, and it (iii) releases and discharges the Released Parties from liability for conduct by Released Parties with respect to the all issues and claims that were brought, or could have been brought against Schwab or any Released Party, of any kind or nature, under federal or state law (including but not limited to the SEC, NASD, or NYSE rules or regulations), that relate to, arise out of, are connected with, attack or challenge : (a) the manner and/or quality in which any customer's order was routed, handled, priced, or executed by Schwab or the market maker, the specialist or the exch ange to whom Schwab or its agent route d the order for execution ; and/or (b) the absence of automatic routing systems and/or individual routing practices for posting orders on other proprietary trading system or networks (, SelectNet or Instinct); and/or (c) whether the customer received the benefit of alleged superior prices posted or potentially available through such other proprietary trading systems or networks ; and/or (d) the receipt of any compensation or other remuneration in connection with the manner in which the orde r was routed, handled or executed by Schwab or any Released Party ; and/or (e) the disclosures, marketing materials, or advertising relating to same by Schwab or any Released Party, since 198 5 through the date of this Agreement. Each and every Class Member is hereby permanently barre d and enjoined from instituting, maintaining, prosecuting or enforcing, either directly or indirectly, any Released Claim against any of the Released Parties . 7 . Each Released Party is hereby released and forever discharged from any and al l claims, whether legal or equitable in nature, including but not limited to those arising under state, federal or other laws, rules or regulations (including but not limited to the SEC, NASD, or NYSE rules or regulations) that any Class Member ever had, now has or hereafter can, shall or may have , arising from or relating in any way to any conduct,