The Law Firms of Finkelstein Thompson LLP and Reed Smith LLP Announce The Proposed Settlement of a Class Action Involving Genius
LOS ANGELES, Jul 23, 2010 (BUSINESS WIRE) --
To: All Persons or Entities Who Owned Genius Products, Inc. (OTC: GNPR | PowerRating) Common Stock as of April 4, 2009.
The purpose of this Notice is to inform you of a proposed class action settlement with Genius Products, Inc. ("Genius Products"), GNPR Investments LLC ("GNPR"), Stephen Bannon, Trevor Drinkwater, Herbert Hardt, and The Weinstein Company Holdings LLC ("TWC Holdings") (collectively, "Defendants"), defendants in the class action entitled Genius Products, Inc. et al, Case No. BC412610, Superior Court of California, Los Angeles County ("Action"), and the hearing to be held to consider the fairness, reasonableness, and adequacy of the proposed Settlement detailed below ("Final Settlement Hearing").
Please Read This Notice Carefully. Your Legal Rights Are Affected Whether You Act or Do Not Act. A Court Authorized This Notice. This Is Not A Solicitation From A Lawyer.
Your Legal Rights And Options In This Settlement
Do Nothing You will receive compensation if you are authorized to do so and
your claims against Defendants will be released.
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Exclude Yourself You will receive no compensation. This is the only option that
allows you to pursue settled claims against Defendants at your own
expense.
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Object Write to the Court about why you do not like the Settlement. You
may, but are not required to, appear at the Final Settlement Hearing.
---------------- ---------------------------------------------------------------------
These options are detailed more fully in this Notice.
IMPORTANT DATES
Deadline to Exclude Yourself: September 9, 2010
Deadline to Object: September 9, 2010
Date of Final Settlement Hearing: September 16, 2010 at 11:00 a.m.
BASIC INFORMATION
1. What Is The Lawsuit About?
Plaintiff brought this Action and alleged that Defendants breached their fiduciary duties to Genius Products shareholders through two groups of related transactions: (1) a reverse stock split of Genius Products Common Stock caused by TWC Holdings that gave GNPR majority control of Genius Products, and (2) after acquiring control of Genius Products, Defendant GNPR's issuance of certain warrants, the proceeds of which went only to GNPR, that were then converted to common stock. Plaintiff alleged that, through these transactions, GNPR breached its fiduciary duties, and that other Defendants aided and abetted this breach.
Defendants deny any wrongdoing whatsoever.
2. Who Is In The Settlement?
The Court directed that, for purposes of the proposed settlement, everyone who fits this description is a Class Member:
All persons who owned common stock issued by Genius Products, Inc. on April 4, 2009. Excluded from the Class are Defendants and any person, firm, trust, corporation, or other entity related to or affiliated with any of the Defendants, as well as the recipients of convertible warrants issued by Genius Products in February 2009 (the "Class").
3. What Does The Settlement Provide?
The Settlement provides that all Class Members will receive an additional share of Genius Products, Inc. common stock for each share of such stock they owned as of April 4, 2009. This additional share will be provided at no cost to Class Members.
4. Reasons For The Settlement
Because of the risks associated with continuing to litigate and proceeding to trial, there was a danger Plaintiff would not have prevailed on any of their claims, in which case the Class would receive nothing. The amount of damages suffered by the Class was and is challenged by Defendant. Recoverable damages in this case are limited to losses caused by conduct actionable under applicable law and, had the Action gone to trial, Defendants would have asserted that they had not breached their fiduciary duties to the Class.
The Court did not decide in favor of Plaintiff or Defendants. Instead, both sides agreed to a Settlement. In this manner, the parties avoid the risks and costs of a trial, and Class Members will receive compensation. Plaintiff and his attorneys believe the Settlement is in the best interests of all Class Members. Defendants in this Action, while continuing to deny all allegations of wrongdoing and liability whatsoever, recognize the expense, risks and uncertain outcome of litigation and appeals, especially in a complex action such as this, and wish to avoid the risks and costs associated with future litigation.
5. Who Are The Lawyers Representing Me?
The Court ordered that the law firm of Finkelstein Thompson LLP will represent all Class Members. These lawyers are called Plaintiff's Counsel. You will not be separately charged for these lawyers. If you want to be represented by a lawyer, you may hire one at your own expense.
6. Attorneys' Fees And Expenses Sought
Plaintiff's Counsel will apply to the Court for an award of attorneys' fees and expenses. Defendants will oppose this application. Defendants and Plaintiff's Counsel did not discuss this fee award until they agreed to the other substantive terms of the Settlement. Plaintiffs will also apply to the Court for an incentive award not to exceed $1,000 for the named plaintiff in the Action. Defendants will not oppose the incentive award.
7. More Details About The Settlement
This Notice summarizes the proposed Settlement. More details are in the Stipulation of Settlement entered into as of June 11, 2010. You can download a copy of the complaint, Stipulation of Settlement, Motion for Preliminary Approval of Settlement, and other documents related to the Settlement by visiting Finkelstein Thompson LLP's website at http://www.finkelsteinthompson.com.
8. Further Information
Further information regarding the Action and this Notice may be obtained by contacting Plaintiff's Counsel: Michael G. McLellan, Esq., Finkelstein Thompson LLP, Duvall Foundry, 1050 30th St. N.W., Washington, D.C. 20007, Telephone: 202-337-8000 or the Settlement Administrator: Genius Products, Inc. Stock Settlement, c/o Rust Consulting, Inc., P.O. Box 2360, Faribault, MN 55021-9060, Telephone: 877-788-4956 or email: info@GeniusStockSettlement.com.
PARTICIPATING IN THE SETTLEMENT
9. How do I Participate In The Settlement?
You need not take any further action to share in the Settlement. If you are entitled to share in the Settlement, you will receive your compensation shortly after the Court grants final approval of the Settlement. You do not need to submit a proof of claim to receive your consideration.
Additionally, if you do nothing, you will remain a member of the Class, and that means that if the Settlement is ultimately approved by the Court, you will release all claims you might have against Defendants in connection with the issues in this case and that all of the Court's orders will apply to you and legally bind you. If you have litigation pending against Defendants, you should speak to your lawyer about this Notice.
EXCLUDING YOURSELF FROM THE SETTLEMENT
If you do not want a payment from this Settlement, but you want to keep any right you may have to sue or continue to sue Defendants on your own about the Settled Claims, then you must take steps to exclude yourself. If you exclude yourself from the Settlement, you will receive nothing from the Settlement but can pursue claims at your own expense.
10. How Do I Exclude Myself From The Proposed Settlement?
To request exclusion from the Settlement Class, you must send a letter by mail stating you request exclusion from the Class v. Genius Products, Inc. et al, Case No. BC412610, Superior Court of California, Los Angeles County, no later than September 9, 2010 to:
Clerk of the Court Michael G. McLellan, Esq. Stuart A. Shanus, Esq.
Superior Court of California Finkelstein Thompson LLP Reed Smith LLP
Los Angeles County 1050 30th Street N.W. 1901 Avenue of the Stars, Suite 700
600 South Commonwealth Ave. Washington, D.C. 20007 Los Angeles, CA 90067
Los Angeles, CA 90005 Counsel for Plaintiff Counsel for Defendants
Your letter must state your name, address, daytime telephone number, signature, and the amount of shares of Genius Products, Inc. you owned on April 4, 2009. You cannot exclude yourself by telephone or email. If you exclude yourself, you will not be legally bound by anything that happens in this lawsuit.
OBJECTING TO THE SETTLEMENT
11. How Do I Object To The Settlement?
If you are a Class Member, you can object to the Settlement or to Plaintiff's Counsel's application for an award of fees. The Court will only consider your views if you file a proper objection within the deadline identified and according to the following procedures.
To object, you must send a signed letter or other court submission stating you object to the proposed settlement in Genius Products, Inc. et al, Case No. BC412610, Superior Court of California, Los Angeles County, no later than September 9, 2010 to the following addresses:
Clerk of the Court Michael G. McLellan, Esq. Stuart A. Shanus
Superior Court of California Finkelstein Thompson LLP Reed Smith LLP
Los Angeles County 1050 30th Street N.W. 1901 Avenue of the Stars, Suite 700
600 South Commonwealth Ave. Washington, D.C. 20007 Los Angeles, CA 90067
Los Angeles, CA 90005 Counsel for Plaintiff Counsel for Defendants
Your letter must state your name, address, daytime telephone number, signature, and the amount of shares of Genius Products, Inc. you owned on April 4, 2009. You do not need to go to the Final Settlement Hearing to have your written objection considered by the Court. However, any objector may appear in person or arrange, at that objector's expense, for a lawyer to represent the objector at the Final Settlement Hearing provided that objector has complied with the procedures set forth in this Notice for filing and serving a notice of intent to appear.
12. What Is The Difference Between Objecting And Excluding?
Objecting is simply telling the Court that you do not like something about the proposed settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you.
THE FINAL SETTLEMENT HEARING
The Court will hold a hearing to decide whether to approve the proposed Settlement. You may attend and you may ask to speak, but you do not have to. If you decide to travel to the Final Settlement Hearing, it will be at your own expense.
13. When And Where Will The Court Decide To Approve The Settlement?
The Court will hold a Final Settlement Hearing at 11:00 a.m. on September 16, 2010, in the courtroom of the Honorable Emilie H. Elias at Department 324, 600 South Commonwealth Ave., Los Angeles, CA 90005. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate, and will consider the application of Plaintiff's Counsel for attorneys' fees and reimbursement of expenses. The Court will take into consideration any written objections filed in accordance with the instructions in this Notice. The Court may also listen to people who have properly indicated, within the deadline identified above, an intention to speak at the hearing, but decisions regarding the conduct of the hearing will be made by the Court. After or at the hearing, the Court will decide whether to approve the Settlement.
You should be aware that the Court may change the date and time of the Final Settlement Hearing. Thus, if you want to come to the hearing, you should check with Plaintiff's Counsel before coming to make sure that the date and/or time has not changed.
14. May I Speak At The Hearing?
If you object to the settlement, you may ask the Court for permission to speak at the Final Settlement Hearing. To do so, you must include within your objection a statement that it is your intent to appear at the Final Settlement Hearing. You cannot speak at the Final Settlement Hearing if you have excluded yourself from the Class or if you have not provided written notice of your intention to speak at the Final Settlement Hearing by the deadline identified.
DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE.
DATED: June 25, 2010 BY ORDER OF THE SUPERIOR COURT OF
CALIFORNIA, LOS ANGELES
COUNTY
SOURCE: Finkelstein Thompson LLP and Reed Smith LLP
Reed Smith LLP
Stuart A. Shanus, Esq., (310) 734-5240
Source: http://www.tradingmarkets.com/news/press-release/gnpr_the-law-firms-of-finkelstein-thompson-llp-and-reed-smith-llp-announce-the-proposed-settlement-of-a-c-1062507.html
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