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Am I being sued? |
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No, you are not. |
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What is this litigation about? |
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The Complaint alleges that Bio-One filed false and misleading financial reports with the SEC during the Class Period. The Complaint alleges that these reports failed to disclose that Bio-One did not have the capital, expertise, or personnel to succeed with its business plan of acquiring multiple nutritional supplement companies and had defaulted on a promissory note in connection with its acquisition of INI.
The Complaint further alleges that Bio-One’s former CEO, Dauplaise, used the company’s bank accounts as if they were his own and that the Bio-One failed to disclose the fact that Dauplaise’s son was acting as its de facto treasurer.
The lawsuit seeks money damages against the Defendants for violations of the federal securities laws. The Defendants deny all allegations of misconduct contained in the Complaint, and deny having engaged in any wrongdoing whatsoever. |
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What is a Class Action? |
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In a class action, one or more people called class representatives (in this case Lead Plaintiffs Marie-Pascale Molema, Jeffrey C. Rehm, the Albert Rehm & Charlotte Rehm Family Trust A, the Albert Rehm & Charlotte Rehm Family Trust B, Charlotte J. Rehm, and Ellen Ann Sofie), sue on behalf of people who have similar claims. All these people are a Class or Class Members. Bringing a case, such as this one, as a class action allows adjudication of many similar claims of persons and entities that might be economically too small to bring in individual actions. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. |
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Why is there a settlement? |
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The Court did not decide in favor of Plaintiffs or Defendants. Instead, both sides agreed to a settlement. That way, they avoid the risks and cost of a trial, and the people affected will receive compensation. The Class Representatives and their attorneys think the settlement is best for all Class Members.
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How do I know if I am part of the Settlement? |
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The Court directed, for the purposes of the proposed settlement, that everyone who fits this description is a Class Member:
All persons or entities who purchased common shares of Bio-One Corporation, for the period February 4, 2004, through and including May 9, 2005.
Excluded from the Class are Defendants Bio-One Corporation; Armand Dauplaise; Bernard Shinder; Frank M. Clark; Irwin Newman; Roy Lerman; the officers and directors of Bio-One Corporation or its successor in interest; and members of the Individual Defendants’ immediate families; any entity in which any of the Defendants has a majority interest, or is a parent or subsidiary of or is controlled by Bio-One Corporation; and the officers, directors, affiliates, legal representatives, heirs, predecessors, successors and assigns of any of the excluded persons or entities. Also excluded from the Class are any Class Members who properly exclude themselves by timely filing a request for exclusion in accordance with the requirements set forth in the Notice of Pendency of Class Action.
If one of your mutual funds purchased or otherwise acquired shares of Bio-One common stock during the Class Period, that alone does not make you a Class Member. You are a Class Member only if you directly purchased or otherwise acquired shares of Bio-One common stock during the Class Period. Check your investment records or contact your broker to see if you purchased or otherwise acquired Bio-One common stock during the Class Period.
If you sold Bio-One common stock during the Class Period, that alone does not make you a Class Member. You are a Class Member only if you purchased or otherwise acquired your shares during the Class Period. |
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How many people are there in this class action? |
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Class counsel believes that thousands of people are members of the class.
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Do I have to pay anything? |
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No, you do not have to pay anything.
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What should I do? |
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We cannot offer any advice as to what you should do. That said, you have four options:
First, to qualify for a payment, you must submit a valid Proof of Claim Form. A Proof of Claim form is being circulated with the Settlement Notice. Read the instructions carefully, fill out the form, include all the documents the form asks for, sign it, and mail it postmarked no later than May 18, 2007.
Second, you can exclude yourself from the Bio-One Settlement. Pursuant to the Notice of Pendency, class members are allowed to request exclusion in writing, postmarked on or before March 30,2007. Persons who exclude themselves will NOT receive any share of the Bio-One settlement proceeds and will not be bound by the settlement. Detailed directions on how to exclude yourself from the Settlement are contained on page 7 of the Class Notice.
Third, you may object and write to the court about why you do not agree with the settlement or some part of it. Persons who exclude themselves from the class are not affected by the settlement and may not object to the settlement. Detailed directions on how to object to the settlement – and to make an appearance at the Settlement Fairness Hearing - are contained on page 7 of the Class Notice.
Lastly, you can do nothing. If you do nothing, you will get no money from this settlement and you will be precluded from starting a lawsuit, continuing with a lawsuit, or being part of any other lawsuit against the Defendants and the other Released Parties about the Settled Claims in this case, ever again. To share in the Net Settlement Fund you must submit a Proof of Claim form. |
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How much will I get? |
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In exchange for the Settlement and dismissal of the Action, Defendants have agreed to create a $375,000 fund to be divided, after fees and expenses, among all Class Members who send in a valid Proof of Claim form.
Your share of the fund will depend on the total Recognized Claims represented by the valid Proof of Claim forms that Class Members send in, how many shares of Bio-One common stock you bought, how much you paid for them, and when you bought and whether or when you sold them, and if so for how much you sold them.
You can calculate your Recognized Claim in accordance with the formula shown in the Plan of Allocation. It is unlikely that you will get a payment for all of your Recognized Claim. After all Class Members have sent in their Proof of Claim forms, the payment you get will be a part of the Net Settlement Fund equal to your Recognized Claim divided by the total of everyone’s Recognized Claims. See the Plan of Allocation on page 6 for more information on your Recognized Claim.
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Should I get my own lawyer? |
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You do not have to hire your own lawyer because class counsel is working on behalf of all Class Members. If you want your own lawyer to separately represent your own interests, to object to the Settlement or, if you exclude yourself to bring a separate action against Bio-One Corporation, you can hire a lawyer at your own expense. |
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What is the Settlement Fairness Hearing? |
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The Court will hold a Settlement Fairness Hearing at 9:00 a.m. on Friday, April 13, 2007, before the Honorable Anne C. Conway, in the United States District Courthouse, 80 North Hughey Avenue, Orlando, Florida 32801. At this hearing the Court will consider whether the settlement is fair, reasonable and adequate. At the Settlement Fairness Hearing, the Court also will consider the proposed Plan of Allocation for the proceeds of the Settlement and the application of Plaintiffs’ Lead Counsel for attorneys’ fees and reimbursement of expenses. The Court will take into consideration any written objections filed in accordance with the instructions in the Notice. The Court also may listen to people who have properly indicated, within the deadline identified in the notice, an intention to speak at the hearing; but decisions regarding the conduct of the hearing will be made by the Court. The Court may also decide how much to pay to Plaintiffs’ Counsel. After the hearing, the Court will decide whether to approve the settlement. We do not know how long these decisions will take.
You should be aware that the Court may change the date and time of the Settlement Fairness Hearing. Thus, if you want to come to the hearing, you should check with Plaintiffs’ Lead Counsel before coming to be sure that the date and/or time has not changed.
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Do I have to attend the Settlement Hearing? |
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| No, you do not.
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Where can I get more information? |
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| You can call the Claims Administrator toll free at 1-866-217-3493, or write to:
Bio-One Corporation Securities Litigation
c/o Analytics Incorporated, Claims Administrator
P.O. Box 2006
Chanhassen, MN 55317-2006
For even more detailed information concerning the pleadings and other records of the Action, these documents may be examined and copied at any time during regular office hours at the Office of the Clerk, Middle District Of Florida, Orlando Division, United States District Courthouse, 80 North Hughey Avenue, Orlando, Florida 32801.
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