ABFIQ- American Business Financial Services, Inc.
$33M SETTLEMENT APPROVED -- 50% GOES TO TRUSTEE IN FAVOR OF BANKRUPTCY ESTATE, ABFIQ NO LONGER A DEFENDANT
American Business Financial Services, Inc. : Notes and Debentures
Summary: On November 3, 2008, the Settlement Hearing was held and Judge O’Neill approved the settlement. On November 21, 2008, the Court entered the Memorandum and Order dismissing the Amended Complaint with prejudice. The plaintiffs’ counsel is awarded 25% of the settlement in fees and $267,946.73 in reimbursement of expenses. On December 8, 2008, an opposition to the settlement was filed, motioning for the replacement of the class counsel based on fraud and misrepresentation. On December 22, 2008, a notice of appeal was filed. On January 7, 2009, the opposition was denied.
NOTE: American Business Financial Services, Inc. is no longer a defendant because it and a number of its subsidiaries filed for protection under Chapter 11 of the Bankruptcy Code on January 21, 2005, and this lawsuit automatically stayed as of ABFI.
COMBINED SETTLEMENT PROCEEDS
The Trustee D & O Settlement and the Noteholder Class Action Settlement will result in combined payments in excess of $33,000,000.00, to be shared equally between the Trustee (on behalf of the ABFS bankruptcy estate) and the Noteholder Plaintiff Class.