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BUCA, INC. SECURITIES LITIGATION SETTLEMENT
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UPDATE
On October 15, 2008, the Court issued an Order approving the In re Buca, Inc. Securities
Litigation Settlement. A hearing on the Final Distribution of the Settlement
Funds has been scheduled for Friday, February 2, 2012 at 11:00 a.m., before the
Honorable Donovan W. Frank, United States District Court, District of Minnesota,
724 Federal Building, 316 N. Robert Street, St. Paul, MN 55101.
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Welcome to the BUCA, Inc. Securities Litigation class action settlement website.
Please read this information carefully. You are a Class Member if you purchased
the common stock of BUCA, Inc. ("BUCA") from February 6, 2001 through March 11,
2005, inclusive, and your rights will be affected by these proceedings and you may
be entitled to receive benefits under a proposed settlement.
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IMPORTANT DATES & DEADLINES
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Submit Claim:
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Received or Postmarked on or before November 14, 2008
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Request Exclusion:
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Received or Postmarked on or before September 8, 2008 |
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File Objection:
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Postmarked not later than September 8, 2008
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Fairness Hearing:
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October 15, 2008
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Hearing on Final Distribution:
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February 2, 2012 at 11:00 a.m.
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Securities Brokers and other Nominees: Please refer to the instructions at the end
of the Notice at the link on the left.
Settlement Fairness Hearing
The Court will hold a Fairness Hearing at 2:00 p.m. on October 15, 2008, at the
United States District Court for the District of Minnesota, Courtroom 2, 7th Floor,
Warren F. Burger United States Courthouse, 316 North Robert Street, St. Paul, Minnesota
55101, to consider whether the settlement is fair, reasonable and adequate, and
also to consider Class Counsel's application for attorneys' fees and reimbursement
of expenses and whether the proposed Plan of Distribution is fair, reasonable, and
adequate.
Lead Plaintiffs' Allegations
The Lead Plaintiffs filed a Consolidated Amended Complaint and a Second Amended
Consolidated Class Action Complaint alleging that the Defendants had made false
and misleading statements to investors, in violation of Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and
that Defendants' conduct was wrongful. The Defendants moved to dismiss and the District
Court granted the Defendants' motions. The District Court entered final judgment
in favor of the Defendants on August 31, 2007. The Lead Plaintiffs then appealed
to the United States Court of Appeals for the Eighth Circuit.
On March 20, 2008, while this appeal was pending, and after the Lead Plaintiffs
had filed their opening brief, the parties, with the assistance of a mediator, reached
final agreement on this proposed settlement. Before reaching agreement each side
obtained a preliminary expert report on damages. At the request of the parties,
the Court of Appeals returned the lawsuit to the District Court so that the District
Court can determine whether this settlement should be approved.
To avoid the cost and risks of further litigation, both sides agreed to a settlement.
The Settlement resolves the class action litigation over whether BUCA and certain
of its former executives issued materially false and misleading statements and concealed
material adverse facts relating to BUCA's financial condition. The Lead Plaintiffs
and their attorneys believe the settlement is best for all Class Members. The Defendants
are not admitting that they did anything wrong by entering into this settlement.
Terms of the Settlement
The Defendants will cause their insurers to pay $1,600,000 in cash. This amount
has been paid into a separate account and is earning interest for the benefit of
the Class. Each Class Member's recovery depends on the amount and timing of their
purchases and sales of BUCA Common Stock during the Class Period and upon the claims
of other Class Members under this settlement.
The Rights of the Class Members
If you are a Class Member, you have the following options:
- If you wish to remain a member of the Class, you may share in the proceeds of the
Settlement, provided that you submit an acceptable Proof of Claim and Release by
following the instructions in the Notice of Class Action Determination,
Proposed Settlement and Hearing on Settlement and in the
Proof of Claim form itself. In order to be eligible to receive any distribution
from the Settlement Fund, you must send a properly executed Proof of Claim by first
class mail to the Claims Administrator so that it is Received or Postmarked on or
before November 14, 2008.
- If you do not wish to remain a member of the Class, you may exclude yourself from
the Class by following the instructions in Question 13 in the
Notice of Class Action Determination, Proposed Settlement and Hearing on Settlement.
Persons or entities who exclude themselves from the Class will NOT be bound by this
Settlement, but will NOT receive any share of the Settlement Fund. If you are a
Class Member and you do not properly exclude yourself from the Class, you will be
bound by the Settlement and the Order and Final Judgment
of the Court, even if you do not submit a Proof of Claim. To exclude yourself from
the Settlement Class, you must mail a letter with the required information to the
Claims Administrator so that it is Received or Postmarked on or before September
8, 2008.
- If you object to the Settlement, the Plan of Allocation, or to Class Counsel's application
for fees and expenses, but do not exclude yourself from the Class, you may present
your objections under the procedures described in Question 18 of the
Notice of Class Action Determination, Proposed Settlement and Hearing on Settlement.
To object, you must submit a signed letter with the required information which must
be sent to the Court and Counsel so that it is Postmarked not later than September
8, 2008.
Claims Submission and Settlement Administration
The Claims Administrator will notify in writing all Class Members whose Proofs of
Claim they propose to reject, in whole or in part, setting forth the reasons for
the proposed rejection.
Any Class Member who does not submit a timely and valid Proof of Claim will not
be entitled to receive proceeds from the Net Settlement Fund, but WILL be bound
by the terms of the Stipulation of Settlement, including the covenants and releases
barring any action against the Release Parties concerning the Settled Claims, unless
the Class Member properly excludes himself, herself or itself from the Class.
Inquiries concerning the Notice or the Proof of Claim form by Class Members should
not be made to the Court.
Further Information
Further information regarding the Action and the Notice may be obtained by clicking
on the "Contact Information" link at the left.
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