NOTICE OF HEARING TO APPROVE PROPOSED SETTLEMENT ADMINISTRATION PLAN AND LEGAL EXPENSES IN THE VIRGINIA TAN CLASS ACTION
PLEASE READ THIS NOTICE CAREFULLY.
THIS NOTICE AFFECTS YOUR LEGAL RIGHTS.
TO: Class Members
WHAT IS THIS NOTICE ABOUT?
Class Counsel will apply for approval of a proposed Settlement Administration Plan (the “Plan”) for the distribution of $3.512 million in settlement funds from the settlement of certain claims involving against Marcus Soon-Keen Tan in Jastram Properties Ltd. v. Virginia Mary Tan et al., SCBC Action No. S-162335. As part of that application, Class Counsel will also apply for approval of their Retainer Agreement and the payment of legal fees and expenses from those settlement funds.
THE PROPOSED SETTLEMENT ADMINISTRATION PLAN
The proposed Settlement Administration Plan sets out the process for how claims will be made by and settlement funds paid out to Class Members. A copy of the proposed Settlement Administration Plan is found in the Court Documents tab.
The proposed Settlement Administration Plan will be administered in conjunction with a proposed claims process to be established In the Matter of the Bankruptcy of Virginia Mary Tan in BCSC Action No. B-160364. A copy of the proposed Claims Process Order is found in the Court Documents tab.
In summary, the proposed Settlement Administration Plan provides that Class Members must deliver a Proof of Claim in the bankruptcy proceeding and their claims will be determined by the Trustee in Bankruptcy for the Consolidated Estate of Virginia Mary Tan (the “Trustee”) in accordance with the proposed Claims Process Order. The claims of Class Members as determined by the Trustee will then be used by Class Counsel to distribute the settlement funds to claiming Class Members. The Plan provides that each claiming Class Member will be entitled to receive a pro-rata share of the settlement fund available for distribution, calculated by dividing the amount of their claim, as determined by the Trustee, by the total amount of all claiming Class Members’ claims.
THE PROPOSED LEGAL EXPENSES AND TRUSTEE PAYMENT
Class Counsel will apply for approval of their Retainer Agreement and for the payment of legal expenses pursuant to that agreement in the amount of $1,157,165, consisting of $978,802 of legal fees, $58,006 in disbursements and $120,357 in taxes. A copy of the Retainer Agreement will be available for review on the class action website as part of the application materials, as referenced below.
The Retainer Agreement provides for a legal fee of 33 1/3 % of amounts recovered for the class The proposed legal fee of $978,802 is less than that, and is equal to 30% of the settlement funds remaining after the proposed payment of $250,000 to the Trustee pursuant to the proposed Settlement Administration Plan.
The proposed Plan provides for payment of $250,000 to the Trustee (the “Trustee Payment”) to fund the ongoing administration of the Consolidated Estate of Virginia Mary Tan, for the benefit of Class Members and other creditors. It is expected that the payment of these funds to the Trustee will enable the Trustee to recover additional monies for the benefit of Class Members from those persons who profited from their investment in the Tan Investment Scheme.
The representative plaintiff does not support the Trustee Payment and has given instructions to Class Counsel to apply for approval of the Settlement Administration Plan, including the provision for the Trustee Payment, on the basis that the representative plaintiff’s objection to the Trustee payment will be put before the Court for consideration.
The payment of the proposed legal expenses and the proposed Trustee payment will leave approximately $2.111 million of the settlement funds available for distribution to Class Members under the proposed Settlement Administration Plan.
THE HEARING FOR APPROVAL OF THE PROPOSED SETTLEMENT ADMINISTRATION PLAN AND THE PAYMENT OF LEGAL EXPENSES
The Court must approve the proposed Settlement Administration Plan, including the payment of the Trustee payment, the Retainer Agreement and the payment of legal expenses to Class Counsel. The Court will determine whether the Plan is fair and reasonable, including the provision for the Trustee payment, and whether the Retainer Agreement and payment of the proposed legal expenses are appropriate in the circumstances.
The approval hearing will take place on Friday, November 12, 2021 at 10:00 a.m. at the courthouse at 800 Smithe Street, Vancouver, BC. At the same hearing, the Trustee will also apply for the proposed Claim Process Order. Class Members may attend the hearing.
The application for approval of the proposed Settlement Administration Plan and payment of legal expenses, and the supporting materials, including Class Counsel’s Retainer Agreement, will be available at www.virginiatanclassaction.com by Thursday, October 21, 2021.
WHAT OPTIONS DO CLASS MEMBERS HAVE?
Class Members have the option of supporting or opposing the proposed Settlement Administration Plan, the Trustee payment, the Retainer Agreement or the payment of the proposed legal expenses. If you support and do not object to the Plan, the Trustee payment, the Retainer Agreement or the payment of the proposed legal expenses, you are not required to take any steps at this time. If you intend to oppose the Plan, the Trustee payment, the Retainer Agreement or the payment of the proposed legal expenses, see the next section for instructions.
OBJECTING TO THE PROPOSED SETTLEMENT ADMINISRATION PLAN OR PAYMENT OF THE PROPOSED LEGAL EXPENSES
Class Members are entitled to object to the proposed Settlement Administration Plan or any of its terms, including the Trustee payment, or the Retainer Agreement or the payment of the proposed legal expenses.
Objections must be made in writing in advance of the application for approval of the proposed Settlement Administration Plan and payment of the proposed legal expenses by way of a letter or email. The letter or email objection must set out the names of the objector(s) and the specific basis for the objection.
The letter or email objection must be received by Class Counsel by 4:00 p.m. on Friday, November 5, 2021, by e-mail to email@example.com or mail or courier to Bennett Mounteer LLP, #400 – 856 Homer Street, Vancouver BC V6B 2W5, “Attention: Virginia Tan Class Action”.
The objections will be put before the Court. It will be up to the Court to decide at the hearing whether to permit Class Members to present their objections orally, if they wish to do so.
MORE INFORMATION ABOUT THE PROPOSED SETTLEMENT ADMINISTRATION PLAN
This notice has been authorized by the Supreme Court of British Columbia
Do not contact the Court about this notice.
March 11, 2016
April 2, 2019
August 2, 2019
April 26, 2022 (5 pm)
Deadline to submit claim
May 26, 2022
Class Counsel Review Deadline
June 26, 2022
Claims Notice Date
July 25, 2022
Claims Appeal Deadline
August 15, 2022*
Claims Payment Date
*This date may change if appeals are filed.