Sunday, April 3, 2011
Readers of this blog know that I have been following the Securities America litigation that involves complicated questions about the relationship between litigation and arbitration claims when numerous investors are pursuing claims against a brokerage firm with limited assets (but a wealthy parent Ameriprise in the background). Previously a federal district court judge exercised his power under the All Writs Act to enjoin ongoing arbitrations to allow the parties in a class action involving similar claims to negotiate a settlement. About a week ago, the judge rejected the settlement and lifted the injunction, thus sending all parties into mediation. Meanwhile, Ameriprise sent out mixed messages about its willingness to provide financial assistance to its subsidiary.
On March 30, 2011 Reuters reported that Securities America had reached a preliminary settlement that would offer claimants in arbitrations as much as 48% of their claims. The settlement rejected by the judge would have offered class members about 20% of their claims. The negotiators of the proposed settlement are now polling claimants and attorneys to see if there is support for the settlement.
If anyone out there has additional information, I'd appreciate hearing it.