Here is the info:
With the assistance of U.S. Magistrate Judge Paul Abrams in the United States District Court for the Central District of California and after long and protracted negotiations, I reached a settlement with StormPay. You can find the Notice of Motion and Motion for an Order Approving the Settlement Agreement with StormPay, the settlement agreement and the supporting pleadings at the Receiver's website: Thomas F. Lennon, Inc.
Under the settlement, the receivership estate will receive $11,750,000 and StormPay's claims against 12DP in excess of $16 million will be waived by StormPay. I believe that approval of the Settlement Agreement is in the best interest of the estate and its creditors because it maximizes the return to the receivership estate with minimal expense and ensures a much quicker distribution to investors. Litigation involves certain risks and would necessarily involve considerable delay and significant expenses. If the claims were litigated, distributions to investors could be delayed by over a year and the costs to litigate could exceed $750,000.
The funds obtained from this settlement, plus the funds the estate currently holds in the approximate amount of $5 million, along with interest earned on these monies and other recoveries, will be utilized to pay the fees and expenses of the receivership and the remaining funds will become the basis for the recommended distribution to investors. The pro-rata distribution percentage will not be known until total claims and net cash available for distribution are determined. The Receiver and his professionals are currently working on both of these issues.
Please review the Motion, other moving papers, and settlement agreement, which describe the facts and settlement in detail, before contacting my office with questions or concerns.
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