VLAD >> We need to find out how long it is expected for the courts to approve this settlement. <<
I don't think we "need" to know this, since none of this should have any further effect whatever on VVUS's trading price.
The important event was today's announcement of the settlement. That announcement removed the cloud of a liability of uncertain size from VVUS's future. No later developments should have any further impact.
As a lawyer I've been on both sides of class actions, and have dealt with a number of settlements. FYIC, I can tell you that approval and payment of the settlement will surely take several months, as a number of steps will need to be accomplished in order: (1) The lawyers for the two sides need to finalize the settlement agreement - possibly already done; (2) they need to make a motion to the court for approval, including a notice to be sent to class members; (3) the court needs to approve the notice, direct that it be sent, and set a date for a hearing on the proposed settlement, at which interested parties, including the class members, can appear and object to the proposed settlement; (4) the hearing will be held (probably in September or October), at which the court will likely approve the settlement and direct its consummation; (5) the class members then submit proofs of claim (including trading records showing when they purchased VVUS, etc.); and (6) checks are sent. These last two could be delayed in the unlikely event of an appeal by an objecting party. Steps (3) and (4) need to be separated by at least 60 days, and more likely 120 days or more, since the notice needs to be printed, transmitted to brokerage houses and mailed (by the proxy departments) to class member shareholders, and class members need time to reply, etc.
--RCM |
