The information contained on this web page is only a summary of information presented in more detail in the Notice of Pendency and Proposed Settlement of Class Action, (the “Notice”), which you can access by clicking here.
Since this website is just a summary, you should review the Notice for additional information.
If you are a Settlement Class Member, your legal rights will be affected by this Settlement whether you act or do not act.
Please read the Notice carefully.
IF YOU PURCHASED OR OTHERWISE ACQUIRED (i) ARCONIC INC. (“ARCONIC” OR THE “COMPANY”) SECURITIES BETWEEN NOVEMBER 4, 2013, AND JUNE 27, 2017, INCLUSIVE, INCLUDING FOR THE AVOIDANCE OF DOUBT, ARCONIC DEPOSITARY SHARES, AND (ii) ARCONIC DEPOSITARY SHARES, EACH REPRESENTING A 1/10th INTEREST IN A SHARE OF 5.375% CLASS B MANDATORY CONVERTIBLE PREFERRED STOCK, SERIES 1, PAR VALUE $1 PER SHARE, LIQUIDATING PREFERENCE $500 PER SHARE PURSUANT TO AND/OR TRACEABLE TO THE REGISTRATION STATEMENT AND PROSPECTUS ISSUED IN CONNECTION WITH ARCONIC’S SEPTEMBER 18, 2014, INITIAL PUBLIC PREFERRED STOCK OFFERING, AND ARE NOT OTHERWISE EXCLUDED FROM THE SETTLEMENT CLASS, YOU COULD RECEIVE A SETTLEMENT PAYMENT.
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YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
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SUBMIT
A PROOF OF CLAIM FORM
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The
only way to be eligible to receive a payment from the Settlement. Proof of Claim forms must be postmarked or
submitted online on or before August 21, 2023.
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EXCLUDE
YOURSELF
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Get no payment. This is the only option that potentially allows
you to ever be part of any other lawsuit against the Defendants or any other
Released Defendant Parties (as defined in the Stipulation) about the legal claims being
resolved by this Settlement. Should you elect to exclude yourself from
the Settlement Class, you should understand that Defendants and the other
Released Defendant Parties will have the right to assert any and all defenses
they may have to any claims that you may seek to assert, including, without
limitation, the defense that any such claims are untimely under applicable
statutes of limitations and statutes of repose. Exclusions must
be received on
or before July 19, 2023.
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OBJECT
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Write to the Court about why you do not like the
Settlement, the Plan of Allocation, and/or the request for attorneys’ fees
and expenses. You will still be a Member of the Settlement Class. Objections
must be filed with the Court and received by counsel on or before July 19,
2023. If you submit a written objection, you may (but do not have to)
attend the hearing.
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ATTEND THE
HEARING ON AUGUST 9, 2023
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Ask to speak in Court about the fairness of the
Settlement. Requests to speak must be received by the Court
and received by counsel on or before July 19, 2023.
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DO
NOTHING
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Receive no payment. You will, however, still be a
Member of the Settlement Class, which means that you give up your right to
ever be part of any other lawsuit against the Defendants or any other
Released Defendant Party about the legal claims being resolved by this
Settlement and you will be bound by any judgments or orders entered by the
Court in the Litigation.
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WHAT IS THIS CASE ABOUT?
On April 9, 2018, Lead Plaintiffs filed an Amended Class Action Complaint (the “Consolidated Complaint”). The Consolidated Complaint alleged that: (i) all Defendants violated Section 11 of the Securities Act of 1933; (ii) Arconic and the Individual Defendants violated Section 15 of the Securities Act of 1933; (iii) Defendants Arconic and Kleinfeld violated Section 10(b) of the Securities Exchange Act of 1934; and (iv) Defendant Kleinfeld violated Section 20(a) of the Securities Exchange Act of 1934. Lead Plaintiffs alleged that, during the period November 4, 2013, through June 23, 2017, inclusive, and in connection with Arconic’s September 18, 2014, preferred stock offering where it issued Depository Shares, each representing a 1/10th interest in a share of 5.375% Class B Mandatory Convertible Preferred Stock, Series 1, par value $1 per share, liquidation preference $500 per share (the “Preferred IPO”), Defendants misrepresented the safety and compliance of its Reynobond PE products. Lead Plaintiffs alleged that the prices of Arconic’s securities were artificially inflated as a result of the alleged misrepresentations and omissions. The Consolidated Complaint alleged that Lead Plaintiffs and Arconic stockholders suffered damages when, inter alia, it was revealed that Reynobond PE panels were installed in the Grenfell Tower in London, which caught fire and burned in June 2017, killing over 70 people and injuring at least 70 more.
Defendants have denied, and continue to deny, that they violated the federal securities laws or any law and maintain that their conduct was, at all times, proper and in compliance with all applicable laws. Defendants have denied, and continue to deny, each and all of the claims and contentions of wrongdoing alleged by Lead Plaintiffs in the Litigation, as well as any and all allegations of fault, liability, negligence, wrongdoing, damages, or lack of merit in their defenses whatsoever. Defendants continue to believe that the claims asserted against them in the Litigation are without merit. Among other things, Defendants specifically deny that they made any false or misleading statements or omissions. Defendants also deny that Arconic and the Individual Defendants acted with the requisite intent to commit a violation of the federal securities laws or any other law. Defendants further deny that the prices of Arconic securities were artificially inflated during the Settlement Class Period; that any Settlement Class Member has suffered any damages; or that the financial losses of any Settlement Class Member were caused by the revelation of any information that Defendants had allegedly previously not disclosed or misrepresented. Defendants maintain that their conduct was proper and that they have meritorious defenses to all of the claims that were raised or could have been raised in the Litigation.
THE SETTLEMENT HEARING
The Court will hold a Settlement Hearing at 9:30 a.m., on August 9, 2023, before Judge Mark R. Hornak, via videoconference. At the hearing, the Court will consider whether the Settlement and the Plan of Allocation are fair, reasonable, and adequate. If there are objections, the Court will consider them, even if you do not ask to speak at the hearing. The Court will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay to Lead Counsel and Lead Plaintiffs. After the Settlement Hearing, the Court will decide whether to approve the Settlement and the Plan of Allocation. We do not know how long these decisions will take. You should be aware that the Court may change the date and time of the Settlement Hearing without another notice being sent to Settlement Class Members. If you want to attend the hearing, you should check with Lead Counsel or visit this website beforehand to be sure that the date and/or time has not changed.
In addition, the Court has decided to conduct the Settlement Hearing via videoconference. In order to determine whether the date and time of the Settlement Hearing have changed, it is important that you monitor the Court’s docket and this website. Any and all updates regarding the Settlement Hearing, including any changes to the date or time of the hearing will be posted to this website.
THE SETTLEMENT BENEFITS
The Settlement provides that, in exchange for the release of the Released Plaintiffs’ Claims and dismissal of the Litigation, Arconic and/or its insurers will pay $74,000,000 in cash to be distributed after Taxes, Tax Expenses, Notice and Administration Expenses, and Court-approved attorneys’ fees and expenses, pro rata, to Settlement Class Members who send in a valid Proof of Claim form pursuant to the Court-approved Plan of Allocation.
A Settlement Class Member’s actual recovery will be a proportion of the Net Settlement Fund (defined in the Notice), determined by that Claimant’s recognized loss (i.e., a claim proved by timely submission of a valid Proof of Claim and Release form) as compared to the total recognized losses of all Settlement Class Members. This proportional allocation is called “proration.” See a summary of the proposed Plan of Allocation beginning on Page 12 of the Notice for more information. The full proposed Plan of Allocation is available on this website in the “Notice” section.
FURTHER INFORMATION
This website and the Notice summarize the Settlement. For more details regarding the Settlement please reference the Settlement Agreement, or other documents filed in the case under the “Court Documents” link on the left. You may also contact the Claims Administrator or Lead Counsel for further information regarding the Settlement:
Claims Administrator:
ARCONIC SECURITIES SETTLEMENT
c/o A.B. Data, Ltd.
P.O. Box 173091
Milwaukee, WI 53217
866-963-9979
info@ArconicSecuritiesSettlement.com
Lead Counsel:
POMERANTZ LLP
Jeremy Lieberman
600 Third Avenue, 20th Floor
New York, NY 10016
212-661-1100
jalieberman@pomlaw.com
ROBBINS GELLER RUDMAN & DOWD LLP
Ellen Gusikoff Stewart
655 West Broadway, Suite 1900
San Diego, CA 92101
800-449-4900
settlementinfo@rgrdlaw.com