Concerning the Timeline of Distribution of Settlement Funds
Dear Client:
As the media reported late last week, we have reached the required 95% opt-in threshold necessary before the settlement with the City of New York and its contractors can take effect. Many of our clients have been asking when settlement checks will be distributed. As we will explain in this e-mail, several things need to take place before the Allocation Neutral can begin sending out checks. In the meantime, we ask that you refrain from contacting our firm to ask about the checks, because there is nothing we can do to make this process move faster.
Reaching the 95% opt-in threshold does not by itself trigger the distribution of payments to Plaintiffs. The "trigger date" of the settlement, called the Final Settlement Agreement Effective Date ("Effective Date"), is reached when parties sign a document that is part of the settlement agreement, specifically Exhibit R - Affirmation of Final Settlement Agreement. We believe that this will occur within the next few weeks after counsel for the WTC Captive Insurance Company, Inc. and its insureds (the City and its contractors) have reviewed and verified enough releases and second injury letters to satisfy the opt-in thresholds and other requirements described in Section VI.D of the Settlement Process Agreement ("SPA"). We will post the Effective Date on our website shortly after this event occurs. In any case, we do not believe that any checks will go out prior to the first of the year.
Once again, for the time being, please do not contact the firm about your settlement check. We realize that you have waited a very long time for resolution of these matters and we greatly appreciate your continued patience while all of the administrative details required by the SPA are completed. We also are eager to finalize the settlement. In the meantime, we wish you and yours a Happy Thanksgiving.
The timeline of distribution and other events once the settlement is final is shown in the attached chart, but the number of days shown do not begin to run until the Effective Date, which has not yet occurred. The chart can also be viewed on our website, www.877wtchero.com. Click on the link titled Exhibit J - Allocation Process Timeline.pdf.
Best Regards,
WORBY GRONER EDELMAN & NAPOLI BERN LLP
* * * This communication has been approved by Court-appointed Professor of Ethics, Roy D. Simon. * * *
