Hill, et. al v. China-Biotics, Inc. et. al.

Civil Action No. 1:10-cv-07838-PAC (S.D.N.Y.)


UPDATE: The Court has entered an Order approving distribution to eligible Claimants. Distribution Checks mail to eligible Claimants on July 6, 2017.

If you purchased or otherwise acquired the publicly traded securities of China-Biotics, Inc. (“China-Biotics”) during the period between July 10, 2008 and July 1, 2011, inclusive (the “Settlement Class Period”), you may be entitled to receive a payment under the proposed settlement (the “Settlement”) of a securities class action lawsuit (the “Litigation”). Your legal rights are affected whether you act or do not act.

A United States District Court authorized this notice (the “Notice”). The complete terms and conditions of the Settlement are set forth in a Stipulation of Settlement, dated March 31, 2015 (the “Stipulation”) entered into by the parties to the Litigation, which can be downloaded at right or requested from the Claims Administrator.

Relevant securities and time period: China-Biotics common stock (“Common Stock”)1  purchased or otherwise acquired between July 10, 2008 and July 1, 2011, inclusive.

Settlement proceeds: If the Settlement is approved by the United States District Court for the Southern District of New York (the “Court”), it will provide for a gross payment of $1,400,000 into a settlement fund (the “Settlement Fund”), which, after deducting certain fees and expenses described below, would be available for distribution to persons who purchased or otherwise acquired China-Biotics Common Stock during the Settlement Class Period (“Settlement Class”). Whether you are entitled to a payment from the Settlement Fund depends on the timing of your purchases and any sales of China-Biotics Common Stock during the Settlement Class Period. Based on the information currently available to counsel for the Court-appointed lead plaintiffs in the Litigation (“Lead Plaintiffs’ Counsel”) and the analysis performed by its damages consultants, if claims are submitted representing 100 percent of the eligible China-Biotics shares, the estimated average recovery would be approximately $0.10 for each share of China-Biotics Common Stock, before deducting settlement administration costs and Court-approved fees and expenses. Historically, the claim submission rate is less than 100 percent, which results in a higher per-share recovery for those who submit qualifying claims. Please see Question 10 in the Notice and the Frequently Asked Questions page of this website for a detailed explanation of the proposed plan of allocation (the “Plan of Allocation”) for distributing the Settlement proceeds to members of the Settlement Class (“Settlement Class Members”).

Reasons for the Settlement: The Settlement provides a benefit to Settlement Class Members now and avoids the uncertainty, time and expense of further litigation, including the potential for a contested trial and likely appeals, with the possibility of receiving no recovery at all for the Settlement Class. If the Litigation had not settled: If the parties had not agreed to the Settlement, it is possible that the lead plaintiffs, on behalf of Settlement Class Members, would have obtained no recovery at all. The parties vigorously disagree on both liability and damages. The defendants in the Litigation (“Defendants”) deny that they are liable in any respect, and deny that Plaintiffs (as defined in the Stipulation) and Settlement Class Members suffered any injury. Among the many issues on which the parties do not agree are (1) whether any Defendants violated the law; (2) whether China-Biotics’ public disclosures contained any false or misleading statements or omissions of material fact; (3) whether any such alleged misstatements or omissions affected the price of China-Biotics Common Stock, and the amount and method for determining such alleged effect; and (4) the amount of damages (if any) that could be recovered at trial.

Fees and expenses: Lead Plaintiffs’ Counsel has not received any payments for its work investigating the facts, prosecuting the Litigation and negotiating the Settlement on behalf of Plaintiffs and the Settlement Class. Lead Plaintiffs’ Counsel will ask the Court for an award of attorneys’ fees equal to 33 1/3% of the Settlement Fund, and for reimbursement of litigation expenses not to exceed $120,000. In addition, Plaintiffs will ask the Court for a compensatory payment not to exceed $5,000 for reimbursement of their reasonable costs and expenses directly relating to their representation of the Settlement Class. All these amounts would be paid exclusively from the Settlement Fund. If the above amounts are approved by the Court, the average cost of such fees and expenses would be approximately $.04 for each share of China-Biotics Common Stock.

For more information
Important Dates and Documents: 
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Dates

August 27, 2015 - Postmark Deadline to submit a claim for Settlement proceeds

August 11, 2015 - Postmark Deadline to request exclusion from the Settlement Class

August 27, 2015 - Postmark Deadline to Object to the Settlement 

September 10, 2015 2:30PM - Settlement Hearing

Your Legal Rights and Options in this Settlement

Submit a Claim

You may submit a claim to request a payment from the Settlement Fund by following the instructions in this Notice and on the Proof of Claim and Release (“Proof of Claim”), downloadable at right.

If this Settlement is approved and you are a member of the Class, you may also be entitled to receive a payment from the Settlement. You must submit a Proof of Claim form to share in the Settlement’s proceeds.


Object

You may write to the Court if you do not like this Settlement, the request for fees and expenses, or the Plan of Allocation. The Court will consider your objection in deciding whether to approve the Settlement.


Request Exclusion

You may request to be excluded from the Settlement Class by following the instructions in this Notice. If you request exclusion, you will not be able to submit a claim for a payment from the Settlement Fund.


Attend the hearing

You may attend the hearing at which the Court will consider whether to approve the Settlement (the “Settlement Hearing”). Attendance, however, is not required.


Do Nothing

You may do nothing, in which case you will not receive any payment from the Settlement Fund and you will be bound by the terms of the Settlement, including the release of claims.


The above rights and options — and the deadlines to exercise them — are explained in this website. The Court must decide whether to approve the Settlement. Payments will be made only if the Court approves the Settlement and, if there are any appeals, after appeals are resolved. Please be patient.



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