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Frequently Asked Questions

PLEASE NOTE: The deadline to file a claim has passed.

General Settlement Questions


Why did I get these Notices?
You have been identified as a person or entity that may have purchased one or more municipal derivatives that were brokered or sold at any time from January 1, 1992 through August 18, 2011. If you entered a municipal derivative transaction with or through one or more of the Defendants or Co-Conspirators, you may be a member of the Settlement Class defined by the Court for the purposes of this Settlement. These Settlements affect only the claims against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS.

If you are eligible for benefits from the Settlement, you have a right to know about it and about all of your options before the Court decides whether to approve the Settlement. The notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for those benefits, and how to get them. In particular, you may be eligible to receive a cash payment.


What is the purpose of the Notice?
The notice explains the lawsuits, the Settlements, your legal rights, what benefits are available, who is eligible for those benefits, and how to get them. In particular, you may be eligible to receive a cash payment.

What is a Class Action?
A class action is a lawsuit brought by one or more representative parties, called “Plaintiffs” or “Class Representatives,” on behalf of themselves and other similarly situated entities or persons. The members of this group of similarly situated entities or persons are known collectively as a class. The parties being sued are called the defendants.

Why is there a Settlement?
GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS each agreed to settle the respective claims against them, without a decision by the Court.

Can the Settlement Administrator help me with account specific questions?
No. The Settlement Administrator is a neutral third-party administrator hired to help administer the Settlements and answer any questions that you may have regarding the Settlements. They do not have any account specific information. You should get in touch with your financial advisor or your regular point of contact for your investments for more information about your account.

How did you get my name and address?
The Provider Defendants, Provider Co-Conspirators, Broker Defendants, and Broker Co-Conspirators and a third party service provided potential Class Members Names and Addresses.

What is happening in the lawsuit /case?
The Court has scheduled a Fairness Hearing for July 8, 2016, at 2:00 p.m. at the United States District Court for the Southern District of New York, 500 Pearl Street, New York, NY 10007. At the Fairness Hearing, Judge Marrero will consider whether the Settlements are fair, reasonable and adequate.

What claims are the Class Representatives making on my behalf? What is this Lawsuit all about?
The Class Representatives claim that the Defendants violated federal antitrust laws by conspiring to fix, maintain or stabilize the price of municipal derivatives transactions and by rigging bids and allocating customers and markets for municipal derivatives in the United States, causing the members of the Class to lose money on municipal derivative transactions. The Class Representatives are asking for compensation from the Defendants for these claimed violations.

What is the class period covered by the settlements?
January 1, 1992 through August 18, 2011.


How do I apply for a payment from the Net Settlement Fund?
If you previously filed a claim, you do not need to do so again. If you have not, you will need to properly complete and submit the claim form enclosed with your Notice in order to receive payment. The claim form includes instructions for completing and returning it. You should also submit any documentation you may have regarding your purchases of municipal derivative transactions along with your claim form, so you should keep a copy of all of your records.


What am I giving up by staying in the Class?
Unless you exclude yourself, you will remain in the Class and your interests will be represented by the Class Representatives and Class Counsel at no cost to you.
If you remain in the Class, you will be bound by all of the Court’s decisions in this case. Also, you will lose the right to sue or continue to sue GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS on your own or as part of any other lawsuit against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS about the claims in this case. However, you will not give up any unrelated claims you might have against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS.

Are there exceptions to being included in the Class?
Excluded from the Class are:
• UBS AG, Societe Generale S.A., Natixis Funding Corp., Piper Jaffray & Co., National Westminster Bank Plc, George K. Baum & Co., and their affilitates, and any of their officers, directors, or employees.
• Any judge, justice, or judicial officer presiding over this matter and the members of their immediate families and judicial staffs.
• Any Alleged Provider or Broker Defendant or Alleged Co-Conspirator.


Do I have a lawyer in this case?
Yes. The Court has appointed the law firms Hausfeld LLP; Boies, Schiller & Flexner LLP; and Susman Godfrey L.L.P. to serve as interim lead Class Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

How much will my payment be?
The Settlement Amount will be distributed pursuant to a plan of allocation that has been preliminarily approved by the Court and will be submitted to the Court for final approval at the final approval hearing. The plan of allocation for the Settlements was included with your notice and claim form, and Class Members can comment on it before the Court approves it. Payments will depend on the number of valid claim forms received.

What does the Settlement provide?
Under the Settlement, GK Baum & Company is required to pay $1.4 million into an escrow account.
Under the Settlement, Natixis is required to pay $28,452,500.00 into an escrow account.
Under the Settlement, NatWest is required to pay $3.5 million into an escrow account.
Under the Settlement, Piper Jaffray is required to pay $9.75 million into an escrow account.
Under the Settlement, Societe Generale is required to pay $25,412,500.00 into an escrow account.
Under the Settlement, UBS is required to pay $32 million into an escrow account.


How do I exclude myself from the class?
You can choose to exclude yourself from some, but not all Settlements. To exclude yourself from the Class, you must send a written request by first-class mail, postmarked no later than May 17, 2016, to:

Municipal Derivatives Settlement
c/o Rust Consulting, Inc.
P.O. Box 2500
Faribault, MN 55021-9500

Your exclusion request must clearly state the following:
   (a) Your name, address, and telephone number;
   (b) All trade names or business names and addresses that you have used, as well as any subsidiaries, divisions, groups, affiliates, or other entities that you used to enter transactions on your behalf, that have purchased by negotiation, competitive bidding or auction municipal derivatives directly from a Provider Defendant, or through a Broker Defendant, at any time from January 1, 1992 through the present in the United States and its territories or for delivery in the United States and its territories that are also requesting exclusion;
   (c) A description of the municipal derivative transactions you purchased that fall within the Class definition (including the identity of the provider and broker, the date of the transaction, the type of transaction, any transaction identification numbers and the notional amount of the transactions), to the extent such information is available;
   (d) The name of the class action you wish to exclude yourself from:
In re Municipal Derivatives Antitrust Litigation –MDL No. 1950, Master Docket No. 08-02516 (VM) (JCF)
   (e) A signed statement that you request to be excluded from the Class.


Please note that you may have previously received similar notices regarding Settlements with other Defendants (i.e., Morgan Stanley, JP Morgan Chase & Co., J.P. Morgan Securities Inc., Wachovia Bank, N.A. (n/k/a Wells Fargo Bank, N.A.), Bank of America, N.A., GE Funding Capital Market Services, Inc., Trinity Funding Co., LLC and Trinity Plus Funding Co., LLC). These were separate settlements, and if you wish to exclude yourself from the UBS AG, Societe Generale S.A., Natixis Funding Corp., Piper Jaffray & Co., National Westminster Bank Plc, and/or George K. Baum & Co. Settlements you must send a separate and specific notice containing the information noted above with regard to each of the Settling Defendant Settlements.

Can I exclude myself over the phone or via email?
No. You cannot exclude yourself over the phone or by e-mail. You must request to be excluded in writing.

If I do not exclude myself, can I sue GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS for the same thing later?
No, if you remain in the Settlement Class, you will be bound by all of the Court’s decisions with respect to the Settlement. Also, you will lose the right to sue or continue to GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS about the issues in this case in this or any other lawsuit against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS . However, you will not give up any unrelated claims you might have against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS.


If I exclude myself, can I receive a payment from these Settlements?
No. If you exclude yourself from the Class, you will not be able to get any money as a result of the Settlements and you cannot object to the Settlements; however, you may sue (or continue to sue) GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS on your own and you will not be bound by any decisions relating to this Settlements.

How will the lawyers be paid?
Class Counsel will ask the Court to approve from the Settlement Amount a payment of attorneys’ fees, as well as a reimbursement for their expenses actually incurred in the prosecution of the litigation. Class Counsel will make a request for fees and expenses at or before the date for objections on June 20, 2016, and this request will be made available at the settlement website: www.MunicipalDerivativesSettlement.com.

How do I tell the Court that I do not like the Settlements?
If you don’t exclude yourself from the Settlement Class, you can object to the Settlements or any part of them that you do not agree with. The Court will consider your views. To object you must mail or deliver copies of your objection (and all supporting documentation) no later than June 20, 2016 to both of the following addresses:

Settlement Administrator
Rust Consulting, Inc.
P.O. Box 2500
Faribault, MN 55021-9500

Clerk of the Court
United States Courthouse
500 Pearl Street
New York, N.Y. 10007

Your letter must:
   (a) Explain the basis for your objection; and
   (b) Include proof of your membership in the Settlement Class (such as documents showing that you purchased one or more municipal derivatives from one or more of the Defendants from January 1, 1992 to the August 18, 2011).

What is the difference between objecting and excluding?
Objecting is simply telling the Court that you don’t agree with something about the Settlements. You can object to the Settlements only if you stay in the Settlement Class. Excluding yourself is telling the Court that you don’t want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the Settlements no longer affect you.

When and where will the Court decide whether to approve the Settlements?
The Court has scheduled a Fairness Hearing for July 8, 2016 at the United States District Court for the Southern District of New York, 500 Pearl Street, New York, NY 10007. At the Fairness Hearing, Judge Marrero will consider whether the Settlement is fair, reasonable and adequate.

Do I have to come to the Fairness Hearing?
No. At the Fairness Hearing, Class Counsel will represent all of the Class Members. However, you or your attorney may come at your own expense. If you send an objection, you don’t have to come to Court to talk. As long as you mailed a written objection meeting the requirements the Court will consider it.

May I speak at the Fairness Hearing?
If you don’t exclude yourself from the Class, you may ask the Court for permission for you or your attorney to speak at the Fairness Hearing at your expense. To do so, however, no later than June 20, 2016 you must:

   (1) File a written notice of your intention to appear, along with any other papers or briefs supporting your objection, with the Clerk of Court and
   (2) Mail or deliver copies of the notice and any supporting papers or briefs to the attorneys listed in the Notice.

The notice must be accompanied by:
   (a) A signed statement indicating your position on the Settlement; and
   (b) Proof of your membership in the Settlement Class (such as documents showing that you purchased one or more municipal derivatives from one or more of the Defendants from January 1, 1992 to August 18, 2011).

The addresses are:

Settlement Administrator
Rust Consulting, Inc.
P.O. Box 2500
Faribault, MN 55021-9500

Clerk of the Court
United States Courthouse
500 Pearl Street
New York, N.Y. 10007


What happens if I do nothing at all?
You do not need to do anything to remain in the Class. You are automatically a Class member if you fit the Class Definition. You will be bound by all Court orders and you give up your right to sue GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS about the conduct covered by the lawsuit and Settlements. However if you do not submit a claim form, you will not receive any payment from these Settlements.

Who are the Alleged Provider Defendants and Alleged Provider Co-Conspirators?

Provider Alleged Defendants
• Bank of America, N.A.*** • GE Funding Capital Marketing Services, Inc., Trinity Funding Co., LLC and Trinity Plus Funding Co., LLC ***

Provider Alleged Co-Conspirators
• AIG Financial Products Corp.
• Financial Security Assurance Holdings, Ltd.
• Financial Security Assurance, Inc.
• JP Morgan Chase & Co., J.P. Morgan Securities, Inc. (f/k/a Chase Financial, f/k/a Morgan Guaranty Trust Company of New York, f/k/a JP Morgan Chase) and
• Bear Stearns & Co., Inc.
• Morgan Stanley*
• Lehman Brothers
• SunAmerica Life Assurance Co.
• MG Financial Products Corp.
• Wachovia Bank, N.A. (n/k/a Wells Fargo Bank, N.A.)**
• XL Asset Funding Co. I, LLC
• XL Capital Ltd.
• XL Life Insurance & Annuity, Inc.

Who are the Alleged Broker Defendants and Alleged Broker Co-Conspirators?

Alleged Broker Defendants
• CDR Financial Products
• Investment Management Advisory Group, Inc.
• Sound Capital Management, Inc.
• Winters & Co. Advisors, LLC
Broker Co-Conspirators
• Feld Winters Financial LLC
• First Southwest Company
• Kinsell Newcomb & De Dios Inc.
• Mesirow Financial
• Morgan Keegan & Co., Ltd.
• PackerKiss Securities Inc.


What is a Municipal Derivative?
Municipal derivatives are financial products used by issuers of tax-exempt municipal bonds (such as states, cities, counties, or their agencies), or by tax-exempt, non-profit private entities, to invest the money received from bond offerings while they are waiting to spend it.


What are the Eligible Purchases during the Class Period? What are the Eligible Funds for this Settlement?
Some examples of municipal derivatives are:
• Guaranteed investment contracts
• “Swaptions” (a combination of a swap and an option)
• Interest-rate swaps • Interest –Rate floors
• Options
• Collars

What is a Guaranteed Investment Contract (GIC)?
Guaranteed investment contracts are insurance contracts that guarantee the owner principal repayment and a fixed or floating interest rate for a predetermined period of time. Guaranteed investment contracts are typically issued by insurance companies and marketed to institutions that qualify for favorable tax status under federal laws. These products provide institutions with guaranteed returns.

What are interest rate swaps?
Interest rate swaps often exchange a fixed payment for a floating payment that is linked to an interest rate. A company will typically use interest rate swaps to limit or manage exposure to fluctuations in interest rates, or to obtain a marginally lower interest rate than it would have been able to get without the swap. Generally speaking, swaps are sought by firms that desire a type of interest rate structure that another firm can provide less expensively.

What are Options?
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.

What are “Swaptions”?
Swaptions are the option to enter into an interest rate swap. In exchange for an option premium, the buyer gains the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date.

What are Interest-Rate Floors?
Interest-Rate Floors are an over-the-counter investment instrument that protects the floor buyer from losses resulting from a decrease in interest rates. The floor seller compensates the buyer with a payoff when the reference interest rate falls below the floor's strike rate. For example, assume that an investor is securing a floating rate loan and is looking for protection against lost income that would arise if interest rates were to decline


What is a Collar?
A collar can be established by holding shares of a stock, purchasing a protective put and writing a covered call on that stock. Generally, the put and the call are both out-of-the-money when this combination is established, and have the same expiration month. The primary concern in employing a collar is protection of profits accrued from underlying shares rather than increasing returns on the upside.


General Notice and Claim Form Questions 

Where can I get a Claim Form?
If would would like a notice packet be mailed to you please call the Toll-Free Number, (877) 310-0512.

Where can I get the Notice?
You can download the Notice by clicking HERE. If would would like a notice packet be mailed to you please call the Toll-Free Number, (877) 310-0512.


Will I receive a payment if I remain in the Class and file a claim?
Money will not be distributed to Settlement Class Members yet. Payments will be based on the number of valid claims submitted and a Court-approved Distribution Plan explaining how the funds will be divided among eligible Class Members.

Do I have to pay to participate?
You will not be personally responsible for any litigation costs or attorney’s fees incurred in this lawsuit, unless you hire your own attorney at your own expense.

What are the benefits to participating in the Settlement?
You could be awarded a payment from the Municipal Derivatives Net Settlement paid by GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS. Payment will be made at a later time.

When is the Claim Form Filing Deadline?
To be considered for payment, your Claim must be submitted online (OR mailed to the Settlement Administrator by July 28, 2016. If you previously submitted a Claim Form, and you do not have any changes to make to it, you do not need to do anything – your previous Claim Form will be used for these settlements.

If you are a member of the Class and do not exclude yourself from the Class, you are eligible to file a claim for a payment from the Settlement Amount.

You will need to properly complete and submit the Claim Form in order to receive a payment. The Claim Form includes instructions for completing and returning it. You may be asked to submit documentation of your purchases of municipal derivative transactions along with your claim form, so you should keep all of your records.



Distribution

How much will I be paid if I’m eligible?
The exact payment amounts have not been determined and you will be notified at a later date.

When will I receive my payment?
We do not know at this time.

Will I have to pay taxes on my payment?
Whether any payment you receive is taxable will depend on your own individual tax circumstances. We cannot give you tax or other legal advice on this matter. If you have tax questions, you should contact a tax preparer or advisor.

Is it worth it for me or the entity to participate?
That is a personal determination that you or the entity will have to make. Participation is strictly voluntary. We are a third party administrator hired by the courts to notify all potential class members.

Broker/Nominee Information

What are my responsibilities as a Broker of receiving the Notice?
If you received the Notice as a nominee for a beneficial owner, then within ten (10) days of your receipt of the notice, you must either: (a) send a copy of the notice by first class mail to all such beneficial owners; or (b) provide a list of the names and addresses of such beneficial owners to the Claims Administrator via

1. Email your request to: info@MunicipalDerivativesSettlement.com
2. Overnight mail or hand delivery to:
Municipal Derivatives Settlement
c/o Rust Consulting, Inc.
201 S. Lyndale Avenue
Faribault, MN 55021

If you chose option 1 please send the request via Email to info@MunicipalDerivativesSettlement.com. You may request enough forms from the Claims Administrator (at no charge) to complete your mailing.

If you have previously submitted names in the Municipal Derivatives Settlement, you need not provide them again. These clients have already been notified of the ongoing settlements. Please only provide new names and addresses not previously submitted.

Am I entitled to reimbursement for expenses incurred?
You may seek reimbursement of your reasonable administrative costs actually incurred in complying with these directives in connection with forwarding the Notice and which would not have been incurred but for the obligation to forward the Notice, upon submission of appropriate documentation, and subject to approval. All communications concerning this matter should be addressed to the Settlement Administrator, Rust Consulting, Inc.


Addional Questions

Why did I get another Notice package in the mail? Didn’t you send this to me before?
You may have previously received notification of the legal action entitled In re Municipal Derivatives Antitrust Litigation, involving defendant companies including Morgan Stanley, JP Morgan Chase & Co., Wachovia Bank, N.A. (n/k/a Wells Fargo Bank, N.A.), GE Funding Capital Market Services, Inc., Trinity Funding Co., LLC and Trinity Plus Funding Co., LLC, (collectively, "GE"), Bank of America, N.A. Partial Settlements with each of these defendant companies have received final approval from the Courts.

The current Notification involves claims against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS.

If you entered a municipal derivative transaction with one or more of the Defendants at any time from January 1, 1992 through August 18, 2011, you may be a member of the Settlement Class defined by the Court for the purposes of this Settlement.

If you are eligible for benefits from any of the Settlements, you have a right to know about it and about all of your options before the Court decides whether to approve the Settlements. These notices explain each of the lawsuits, the Settlements, your legal rights, what benefits are available, who is eligible for those benefits, and how to get them. In particular, you may be eligible to receive a cash payment

Does this lawsuit have anything to do with any of the previous Municipal Derivatives Partial Settlements (Morgan Stanley, JP Morgan Chase & Co., Wachovia Bank, N.A. GE or Bank of America, N.A.)?
Yes; however this notification is separate from the previous Municipal Derivatives Settlement notifications, which were granted Court approval.

These Settlements affect claims against GK Baum, Natixis, National Westminster, Piper Jaffray, Societe Generale, and UBS.

If you entered a municipal derivative transaction with one or more of the Defendants at any time from January 1, 1992 through August 18, 2011, you may be a member of the Settlement Class defined by the Court for the purposes of this Settlement.

If you are eligible for benefits from any of the Settlements, you have a right to know about it and about all of your options before the Court decides whether to approve the Settlements. These notices explain each of the lawsuits, the Settlements, your legal rights, what benefits are available, who is eligible for those benefits, and how to get them. In particular, you may be eligible to receive a cash payment

What if I already submitted a claim form in the previously approved Municipal Derivatives Partial Settlements?
If you have already submitted a valid Proof of Claim form in connection with the previously approved Municipal Derivatives Partial Settlements, you DO NOT need to complete a new Proof of Claim Form. The investment information you already provided will be used to determine your Claim with the Defendants in this Settlement.


How do I know if I filed in the Court-Approved Municipal Derivatives Partial Settlements?
Please call the Toll-Free Number at (877) 310-0512 for information on past claims.

I did not submit a Claim Form in the previous Settlements. Can I still file?
The Claim filing deadline was January 13, 2015, and Claim Forms are no longer being accepted for the previous settlements. However, you can file a claim now, for these settlements.

Can you provide me a status update for the Claim I filed for the previous Settlements? When can I expect my payment?
Payments are currently being calculated and are in the process of being finalized. We do not have a date at this time. This process takes time, please be patient.

Disclaimer

THIS SITE IS NOT OPERATED BY MORGAN STANLEY, WELLS FARGO, JPMORGAN OR ANY OF ITS AFFILIATES. THIS SETTLEMENT IS SUPERVISED BY CLASS COUNSEL.  THIS IS THE AUTHORIZED WEBSITE FOR THIS SETTLEMENT.  PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.

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