Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, January 23, 1995 TAG: 9501250019
SECTION: MONEY PAGE: 6 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
Q: When I was employed by Dominion Bankshares Corp., I purchased stock through the Employee Stock Purchase Plan and I also invested part of my 401(k) money in a DBC stock fund. This was a fund that was invested entirely in DBC stock.
Are the shares that I purchased through these plans between March 6, 1989, and July 17, 1990, eligible for the settlement agreement from the class-action lawsuit by former Dominion Bank stockholders? I did not receive any settlement information in the mail, so I have written and requested that this information be sent to me.
If I am eligible for the settlement, how do I determine how many shares I purchased from the 401(k) DBC stock fund? The quarterly statements that I received and still have only show the dollar amount.
I have called First Union about this, and I was transferred to about 10 different people who could not/would not help
A: Arthur Strickland, Roanoke counsel to the plaintiff stockholders in the recently settled suit, said claim forms were mailed at the end of December to all people on a list supplied by Dominion Bankshares' stock transfer agent.
The terms of the settlement were also advertised in early January in the Roanoke Times & World-News, the Richmond Times-Dispatch and the Wall Street Journal.
The problem with the list, Strickland said, is that so many people hold stock in a ``street name.'' In other words, the transfer agent only had the name of the securities broker holding the stock on behalf of the owner. The notices, therefore, went to the broker. The brokers must determine the number of their customers who qualify for the settlement, ask for the proper number of claim forms, and then send them to the customers.
In the case of retirement plans, Strickland said, the notices would probably go to the trustee holding the assets in the plan. It would be up to the trustee to determine the affected persons and notify them.
Under the terms of the settlement in the case, in which the plaintiffs alleged they were misled by Dominion as to its true financial condition at the time, people can share in the settlement if they meet three criteria:
They must have purchased Dominion stock between March 6, 1989, and July 17, 1990.
They must have sustained a loss on the shares purchased between the dates.
They must not exclude themselves from the settlement on the claim form.
Anyone who does not get a form directly from the attorneys, from a brokerage house or from a trustee can write to ask for a form. Letters should be addressed to Michael T. Bancroft, Heffler & Co., Dominion Bankshares Corp. Shareholder Litigation, P.O. Box 1230, Philadelphia, Pa. 19105-1230. Or you can call Bancroft at (215)665-8870 to request a form.
Claims must be postmarked no later than May 1. Strickland said those who share in the settlement must complete the form and return it along with copies of brokerage statements proving the date of purchase and the amount of the loss.
It is not enough for the purchase to fall within the suit's time period. You must have lost money as well, Strickland said.
If you still hold the stock, he said, you have not suffered a loss and, therefore, cannot make a claim. You may well not have had a loss if you accepted the offer of First Union Corp. for acquisition of Dominion stock, depending on the circumstances. You had a loss if you bought the stock at a high price based on Dominion's financial announcements, then sold when the stock fell after Dominion reported losing money.
Strickland had no specific information about the employee stock purchase program, but you should check with your trustee. Most such forms show the price per share from which the number of shares can be calculated. If you still have the stock, however, you have no basis for a claim in this lawsuit.
by CNB