Thread:
After reading all the fine print, the only surprising wrinkle I can see is that if you received COMS stock in exchange for USRX stock on 6/12/97 as a result of the COMS/USRX merger, that COMS stock does not count as a "purchase" of COMS stock for the purposes of this settlement, despite the fact that you received that COMS stock during the "class period" and even if you held it past the 11/5/97 cut off. Only actual purchases of COMS stock are included. Tough on USRX shareholders, but that's what the notice says. At least Benhamou, Cowell, McCartney, Paisley, other present/former COMS/USRX officers and directors, COMS/USRX employees, COMS/USRX bankers/accountants/lawyers, and other similar "related parties" don't get anything either.
The "average" distribution per qualifying share is estimated to be $3.04, apparently arrived at by dividing their estimates of the number of qualifying shares into the settlement fund of $259 million, less 25% for the lawyers and less expenses. Some will get less, some will get more, depending on actual loss/share, and subject to the $5.67 maximum I quoted in my previous post.
And finally, relevant to the discussions on this thread about 3Com's current cash reserves, well they went down by $259 million on 11/3/00, because 3Com deposited the settlement amount into an escrow account on that date (earned interest to be added to the settlement disbursement proceeds), so we can add that to the operating loss for this Q in figuring 3Com's cash position as of the Q end on 11/30/00.
David T. |
