ALCATEL/DSC SETTLEMENT
IN RE ALCATEL ALSTHOM SECURITIES LITIGATION
MOL DOCKET NO. 1263 (PNB)
Case Nos. 4:99cv5002, 4:99cv5003, 4:99cv5004, 4:99cv5005, 4:99cv5007, 4:99cv5008, 4:99cv5009, 4:99cv5011, 4:99cv5012, 4:99cv5013, 4:99cv5015, 4:99cv5017, 4:99cv5018, 4:99cv5019, 4:99cv5020, 4:99cv5021, 4:99cv5022, 4:99cv5023, 4:99cv5024, 4:98cv353, 8:98cv2711 (N.D. Tex.)
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NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION, HEARING ON PROPOSED SETTLEMENT
AND ATTORNEYS' FEE PETITION, AND NOTICE OF RIGHT TO SHARE IN SETTLEMENT FUND
TO: ALL COMMON STOCKHOLDERS OF DSC COMMUNICATIONS CORP. C"DSC") WHO ACQUIRED THE AMERICAN DEPOSITORY SHARES CADSs) OF ALCATEL ALSTHOM S.A. C" ALCATEL ") IN CONNECTION WITH THE MERGER OF A WHOLLY-OWNED SUBSIDIARY OF ALCATEL (NET ACQUISITION, INC.) WITH DSC AND WHO RETAINED SOME OR ALL OF THE ALCATEL ADSs THEY RECEIVED THROUGH AND INCLUDING SEPTEMBER 17, 1998.
PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS WILL BE AFFECTED BY PROCEEDINGS IN THIS ACTION. IF YOU ARE A CLASS MEMBER, YOU ULTIMATELY MAY BE ENTITLED TO RECEIVE BENEFITS PURSUANT TO THE PROPOSED SETTLEMENT DESCRIBED HEREIN.
CLAIMS DEADLINE: CLAIMANTS MUST SUBMIT PROOFS OF CLAIM, ON THE FORM ACCOMPANYING THIS NOTICE, POSTMARKED ON OR BEFORE DECEMBER 31,2001.
SECURITIES BROKERS AND OTHER NOMINEES: PLEASE SEE INSTRUCTIONS ON PAGE 7 HEREIN.
~MARY OF SElTLEMENT AND RELATED MAlTERS
I. Pumose of this Notice
1. This Notice is given pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the Court dated October 24,2001. The purpose of this Notice is to inform you that this Action and the proposed settlement will affect all Class Members' rights. This Notice describes rights you may have under the proposed settlement and what steps you may take in relation to this Action. This Notice is not an expression of any opinion by the Court as to the merits of any claims or any defenses asserted by any party in this Action, or the fairness or adequacy of the pro- posed settlement.
II. Statement of Plaintiff RecoverI
2. Pursuant to the settlement described herein, a Settlement Fund consisting of $75,000,000 (seventy-five million dollars) in cash, plus interest has been established. Plaintiffs estimate that there were approximately 72 mil- lion Alcatel ADSs acquired by former shareholders of DSC common stock pursuant to the merger of a wholly-owned subsidiary of Alcatel (Net Acquisition, Inc.) with DSC, which were retained through and including September 17, 1998, that may have been damaged as a result of the alleged wrongdoing described below. Plaintiffs estimate that the av- erage recovery per damaged Alcatel ADS under the settlement is approximately $1.04 per ADS before deduction of Court-awarded attorneys' fees and expenses. Depending on the number of claims filed and whether a Class Member sold his, her or its ADSs after September 17, 1998 and if sold, when they were sold, an individual Class Member may receive more or less than this average amount.
3. A Class Member's distribution from the Settlement Fund will be governed by the Plan of Allocation, as approved by the Court. Under the relevant securities laws, a claimant's recoverable damages are limited to the losses attributable to the alleged conduct of the defendants. Losses which resulted from factors other than the alleged con- duct of the defendants are not compensable from the Settlement Fund.
4. A detailed explanation of how each Class Member's claim will be calculated is set forth in the Plan of Allocation which is attached to this Notice as Exhibit A. |
