Richmond, Virginia. This update is in regards to correspondence received by my office from Hollister & Brace regarding its representation of Exchangers in a Class Action litigation currently pending in United States District Court in the Northern District of California.
As you will recall, in April, 2012, the Bankruptcy Court approved the settlement that the LES Trustee negotiated with Lloyd’s of London (“Underwriters”), the E&O insurer, for $37,855,029.06, of which the gross recovery to the LES Trust is $36,855,029.06 (the “E&O Settlement”). That E&O Settlement also involved an $11 million settlement between Commonwealth Land Title Insurance Company, Commonwealth Land Title Company, Lawyers Title Insurance Corporation, LandAmerica Charter Title Company, the Released Parties (the officers and directors of LandAmerica Financial Group, Inc. (“LFG”) and LandAmerica 1031 Exchange Services, Inc. (“LES”)) and a purported class of exchangers of LES, where class counsel has also agreed to cap its fee request at 25% of $9 million (“Class Title Company Agreement”).
On July 5, 2012, United States District Court in the Northern District of California preliminarily approved the Class Title Company Agreement. A final hearing regarding this settlement is set for November 2, 2012. This means that a distribution of the E&O insurance settlement funds cannot occur until the end of this year. The LES Trustee believes that this will yield a distribution of approximately 18% to eligible Exchangers.
The LES Trustee believes that the Class Title Company Agreement will bring an additional distribution to eligible Exchangers of approximately 4.5%.