Fiduciary and Investment Risk Management Association 21st National Training Conference Phoenix, AZ April 18, 2007 Corporate and Class Action Settlement Process Satish Pattegar

Corporate Actions VS. Class Actions Introduction Corporate Actions VS. Class Actions Corporate Actions: A process that will bring actual change to a company’s stock. E.g.: Stock splits; Dividends; Rights Issue; Mergers; Tender Offers; Spin Offs; Stock and Bond Redemption; etc.

Corporate Actions VS. Class Actions Class Actions: Consolidated Litigation on behalf of many plaintiffs against one defendant. E.g.: Enron, WorldCom, Lucent, etc.

Legal, Fiduciary and Tax Considerations Legal Considerations Failure to Elect Opt-out Title to Claim

Legal, Fiduciary and Tax Considerations Fiduciary Needs Voluntary Mandatory

Legal, Fiduciary and Tax Considerations Principal Income Structured

Corporate Actions Process Timely Receipt of Notice Accurate Analysis of Event(s) Analyze Tax Consequences Communicate to Decision Maker

Corporate Actions Process Gather and Transmit Election Receive and Allocate Exceptions

Class Action Process Source Policy Process Allocation

Class Action Process Tax Reporting Escheatment Exceptions

Conclusion Standardization Uniform Guidance/Best Practices Legal or Operational Pricing