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Frequently Asked Questions
Q: What is this case about?
A: A lawsuit was filed in a U.S. Federal Court alleging that Royal Ahold and numerous co-defendants misrepresented Ahold's earnings and revenues between July 30, 1999 and February 23, 2003.
The lawsuit further alleges that when these misrepresentations were announced on February 24, 2003, the value of Ahold stock declined by more than 60%.
Q: Why did I receive a Notice Packet?
A: You received a Notice Packet because records indicated that you bought or received as dividends shares of Royal Ahold common stock and/or American Depository Receipts (ADR). The packet you received is designed to notify you of a settlement that has been reached with Royal Ahold.
Q: Have the Defendants been found guilty?
A: No. The Court did not make a final ruling on the allegations of the lawsuit. The parties have agreed to a settlement consisting of US $1.1 billion in cash. The defendants deny that they did anything wrong, and the settlement is neither an admission of wrongdoing nor an indication that any law was violated.
Q: How do I know if I am a Class Member?
A: If you bought or received as dividends shares of Royal Ahold common stock or American Depository Receipts from July 30, 1999 through February 23, 2003, regardless of where you live or where those shares were purchased, you are a Class Member.
Q: What type of security is eligible?
A: Common stock and American Depository Receipts are the two types of securities covered under this settlement.
Q: What is an ADR?
A: ADR stands for American Depository Receipt, which is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. Here, one ADR is equal to one share of Ahold Common Stock.
ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas, and help to reduce administration and duty costs on each transaction.
Q: What is the amount of the settlement fund?
A: The parties have agreed to a settlement consisting of US $1.1 billion in cash.
Q: Has the settlement been approved?
A: The Court has granted preliminary approval of the Settlement, which is why potential claimants like you are being notified. The Court will hold a Fairness Hearing on June 16, 2006 where the judge will consider whether the settlement is fair, reasonable and adequate.
Q: What do I need to do to participate in the settlement?
A: If you would like to participate in the settlement, you must complete and submit a Proof of Claim and Waiver and Release ("Proof of Claim"), along with the necessary supporting documentation to the Claims Administrator. The Proof of Claim was included in your Notice Packet. Your claim form must be postmarked no later than August 18, 2006.
Q: What do I need to submit with my claim form?
A: You must document each transaction that you include on your claim form. Acceptable forms of supporting documentation include:
1) broker confirmation slips that list the security name, name of the beneficial owner, type of transaction, the date of the transaction, the number of shares, the price per share and the total amount of the transaction, OR
2) monthly statements that detail all account activity within a month.
Q: How much money will I receive, if I file a claim form?
A: Because the amount of money eligible claimants may receive depends on a variety of factors, including the number of valid claim forms that are submitted, the amount of Royal Ahold stock that you purchased and when you purchased and sold that stock, it is not possible to give class members exact settlement amounts at this time.
The Notice describes the average amounts of recovery per share based upon your patterns of transactions in Ahold common stock and as ADRs.
Q: How will my loss be calculated?
A: The Court will approve a plan for how the net settlement fund will be allocated. This is what will be used by the Claims Administrator to calculate individual payments. For information about the Plan of Allocation, please click here.
Q. When will I receive my payment?
A: The Court has recently approved Lead Counsel's and the Claims Administrator's initial recommendations for payment. We are coordinating the distribution of all approved claimants including setting up the Dutch bank account for foreign wire transfers. Payments will be made as soon as possible.
Q: What do I do if I don't agree with the settlement?
A: If you would like to object to any portion of the settlement, you must submit your objection in writing. You can find complete details about how to submit a valid objection on page 7, question 20 of the Notice.
Please be advised that objections must be postmarked no later than May 12, 2006.
Q: What do I do if I don't want to be a part of this lawsuit?
A: If you don't want to participate in the settlement, you have the right to opt out of or exclude yourself from the settlement. You can find complete details about how to submit a valid request for exclusion on page 7, question 16 of the Notice.
Please be advised that requests for exclusion must be postmarked no later than May 12, 2006.
Q: What happens if I don't do anything?
A: If you do nothing, you will not be eligible to receive a payment from the settlement fund. But, unless you exclude yourself, you won't ever be able to sue the Defendants who settled this case, about the legal issues in this case, on your own ever.
Q: Who is representing me?
A: The Court has appointed the law firm of Entwistle & Cappucci, LLP to serve as "Class Counsel."
Their offices are located at:
280 Park Avenue, 26th Floor West
New York, NY 10017
Q:. Where can I obtain additional information about the litigation?
A: You may obtain additional information about the litigation by accessing the settlement website: www.royalaholdsecuritieslitigation.com.
Q: How will the Lawyers be paid?
A: The law firm that litigated the case on your behalf and negotiated the Settlement intends to apply for a fee of up to 15% of the Settlement Fund. The amount of attorneys' fees will ultimately be determined by the Court.
Q: Why are people in Fund A getting more money?
A: The damages experts retained by plaintiffs' counsel have determined that the defendants' conduct was more responsible for the losses suffered by claimants eligible for Fund A than for claimants eligible for Fund B.
For additional information on the Royal Ahold Securities Litigation please visit:
www.RoyalAholdSecuritiesLitigation.com
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