DATE: February 7, 2017
TO: Board of Supervisors
SUBMITTED BY: Daniel C. Cederborg, County Counsel
SUBJECT: Settlement with Piper Jaffray & Co. for Municipal Derivatives Litigation
RECOMMENDED ACTION(S):
TITLE
Board of Supervisors Sitting as the Board of Directors of the Fresno County Financing Authority (FCFA)
Approve and authorize Chairperson to execute Settlement Agreement with Defendant, Piper Jaffray & Co., in connection with In re Municipal Derivatives Antitrust Litigation, MDL Docket No. 1950, Master Docket No. 08-2516 (VM) (GWG) (the MDL), including Fresno County Financing Authority (FCFA) v. AIG Financial Products Corp. et al., 09 Civ. 119 (VM), United States District Court, Southern District of New York, subject to execution of the Settlement Agreement by Defendant, Piper Jaffray & Co., and approval thereof as to form by FCFA's special co-counsel ($9,000 gross settlement amount)
REPORT
The recommended Settlement Agreement is the last of the FCFA's several separate settlements with defendants in the MDL class action. If the FCFA and Defendant, Piper Jaffray & Co (Piper Jaffray), enter into the recommended Settlement Agreement, and perform their respective obligations (e.g., the FCFA dismisses Defendant, Piper Jaffray, from the MDL and receives the $9,000 gross settlement amount), the FCFA will conclude its involvement in this class action lawsuit.
ALTERNATIVE ACTION(S):
The County and FCFA each "opted out" of (i.e., exclude itself from) the class action MDL settlement with Defendant, Piper Jaffray. Therefore, the Board (as the FCFA Board) may elect not to enter into the recommended Settlement Agreement, and direct special co-counsel to continue pursuing separate litigation against that defendant.
FISCAL IMPACT:
Under the recommended Settlement Agreement, the FCFA would recoup $9,000 of gross settlement proceeds (i.e., $7,200 net of special co-counsels' contingency fees and costs).
DISCUSSION:
When the Fresno County Financing Authority (FCFA) i...
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