IN THE CHANCERY COURT OF THE STATE OF DELAWARE
IN AND FOR NEW CASTLE COUNTY
__________________________________________
)
BRANDON COX, by EDWARD COX, )
his natural guardian and next friend, )
JOHN KREPS, and MARK )
SOLOMON, M.D., )
Individually and On Behalf of All Others )
Similarly Situated, )
)
Plaintiffs, )
) Civil Action No.:
v. ) 15809
)
IOMEGA CORPORATION, )
Defendant. )
)
__________________________________________)
NOTICE OF PENDENCY OF CLASS ACTION
AND HEARING ON PROPOSED SETTLEMENT
TO: ALL PERSONS WHO PURCHASED IOMEGA ZIP(r), JAZ(r), AND
DITTO(tm) DRIVES BETWEEN JULY 16, 1994 AND SEPTEMBER 1,
1997
THIS NOTICE IS GIVEN TO INFORM YOU OF THIS CLASS ACTION WHICH
IS PENDING, ON YOUR BEHALF, IN THIS COURT. THIS NOTICE IS ALSO GIVEN
TO ADVISE YOU OF THE PROPOSED SETTLEMENT OF THIS CLASS ACTION. IF
THE SETTLEMENT IS APPROVED BY THE COURT, CERTAIN BENEFITS WILL BE
CONFERRED ON THE MEMBERS OF THE CLASS. THIS NOTICE CONCERNS YOUR
LEGAL RIGHTS. PLEASE READ IT CAREFULLY.
NOTHING IN THIS NOTICE SHOULD BE CONSTRUED AS AN EXPRESSION BY
THE COURT ABOUT THE MERITS OF THIS LAWSUIT OR THE SETTLEMENT.
DEFINITIONS
The following terms are defined in the Stipulation of
Settlement of Class Action as set forth below:
1. "Call Center Knowledgebase" or "Database" means a
computer database to contain problem and associated solution
information regarding each Iomega computer data storage device
("drive"), including Iomega Zip, Jaz, and Ditto drives, along with
other Iomega products. The Database is to be updated regularly and
promptly based on information generated by Iomega personnel from
internal Iomega product testing, customer interaction by telephone,
the internet, and other means. The information housed in the
Database will be accessible by or provided as applicable through the
Virtual Consultant, the IVR System, the Iomega "Fax-Back" program,
and Iomega technical support personnel.
2. "Charged Customer" means each person within the Class who
Iomega charged either $14.99 for a technical support call in
connection with a Zip or Ditto drive, or $19.99 for a technical
support call in connection with the Jaz drive.
3. "Claimant" means any Class Member who does not file a
valid and timely Request for Exclusion, as provided in the Notice.
4. "Class" means the Class Representatives and all other
similarly situated persons in the United States who purchased Iomega
drives, including Zip, Jaz, or Ditto drives between July 16, 1994 and
September 1, 1997. Excluded from the Class are Iomega, any entity in
which Iomega has a controlling interest and their directors and
senior officers.
5. "Class Claims" shall refer to any manner of action and
causes of action, claims, suits, arbitrations, obligations, debts,
demands, agreements, promises, liabilities, damages, judgments,
decrees, controversies, costs and expenses, or attorneys fees,
whether based on federal law, state law, common law or otherwise,
foreseen or unforeseen, matured or unmatured, known or unknown,
accrued or unaccrued, suspected or unsuspected (whether class or
individual in nature), which have been, ever could have been, or can
hereafter be asserted by the Plaintiffs, the Class Members, or the
Claimants, or any one of them, against Iomega or the Releasees, in
connection with, arising out of, or relating in any way to (a) the
Complaint, or (b) the acts, failures to act, omissions,
misrepresentations, statements, misstatements, facts, events,
transactions, occurrences, or other subject matters set forth,
alleged, embraced, encompassed, or otherwise referred to in or
underlying the Complaint, including, without limitation, any and all
claims or cross-claims for violations of federal, state, common or
other law arising from such subject matters.
6. "Class Counsel" means Lawrence E. Feldman, Kenneth J.
Benton, Gail L. Gottehrer, Lawrence E. Feldman & Associates,
Jenkintown Plaza, 101 Greenwood Ave., Suite 230, Jenkintown, PA
19046, Mark C. Rifkin, Greenfield & Rifkin LLP, 800 Times Building,
Ardmore, PA 19003, and Jeffrey S. Goddess and Joseph A. Rosenthal,
Rosenthal, Monhait, Gross & Goddess, P.A., Suite 1401, Mellon Bank
Center, P.O. Box 1070, Wilmington, DE 19899-0170.
7. "Class Member" means the Plaintiffs and any
Person who fits within the definition of the Class.
8. "Class Period" means the period between July
16, 1994 and September 1, 1997.
9. "Class Representatives" means, collectively,
Brandon Cox, a fifteen year old minor residing at 7715
Rosehill Road in Lenexa, Kansas and bringing this action
through Edward Cox, his father, natural guardian and next
friend; John Kreps, an adult individual residing at 4020
Lakewood Drive, Ft. Worth, Texas; and Mark Solomon, M.D.,
an adult individual residing at 965 Dale Road in
Meadowbrook, Pennsylvania, and, as applicable, their
predecessors, subsidiaries, affiliates, officers,
directors, partners, employees, agents, servants,
assignees, licensees, heirs, successors, and/or other
transferees or representatives.
10. "Complaint" means the Complaint filed on July
18, 1997 and the First Amended Complaint filed on August
22, 1997 in the Litigation.
11. "Court" means the Court of Chancery of the
State of Delaware in and for New Castle County.
12. "Final Approval" means approval of this
settlement by the Court as fair, reasonable and adequate
pursuant to Delaware Chancery Court Rule 23(e) containing
in substance the provisions set forth in paragraph H
below and in substantially the form of the Final Order
and Judgment.
13. "Final Order and Judgment" means an order of
the Court granting Final Approval in substantially the
form of the Final Judgment and Order of Dismissal which
is attached hereto as Exhibit 2.
14. "Interactive Voice Response System" or "IVR
System" means a 24-hour automated, interactive telephone
technical support system capable of responding, through
use of a decision tree and pre-recorded voice responses,
to customer technical support inquiries about Iomega Zip,
Jaz, and Ditto drives. Said system will allow a customer
calling for technical support to save his or her
technical support session so that the session can be
resumed in a subsequent telephone call without
reinitiation of the session from the beginning.
15. "Iomega" means Iomega Corporation, a Delaware
corporation with its principal place of business in Roy,
Utah, its predecessors, subsidiaries, affiliates,
officers, directors, partners, employees, agents,
servants, assignees, licensees, successors, and/or other
transferees or representatives.
16. "Iomega's Counsel" means Jeffrey B. Rudman,
James W. Prendergast, and Gabrielle R. Wolohojian, Hale
and Dorr LLP, 60 State Street, Boston, Massachusetts
02109, and Jesse A. Finkelstein, Richards Layton &
Finger, One Rodney Square, P.O. Box 551, Wilmington,
Delaware 19899.
17. "Iomega Warranty" or "Warranty" means the
written Iomega product warranty accompanying a drive or
other Iomega product, whether designated as or otherwise
deemed a "full" or "limited" warranty under the Magnuson-
Moss Consumer Products Warranties Act, 15 U.S.C. (S)2301
et seq., and the rules, regulations, and interpretations
promulgated thereunder ("MMA").
18. "Litigation" means the class action entitled
Brandon Cox, by Edward Cox, his natural guardian and next
friend, John Kreps, and Mark Solomon, M.D., Individually
and on Behalf of All Others Similarly Situated, v. Iomega
Corporation, Civil Action No. 15809, now pending before
the Court.
19. "Notice" means the Notice of Pendency of Class
Action and Hearing on Proposed Settlement to be sent
and/or otherwise made available to members of the Class,
as set forth below in paragraph E below, in substantially
the form attached as Exhibit A to the Preliminary Order.
20. "Notice Costs" means the costs of physical
preparation, including duplication, printing, mailing and
publication expenses (but specifically excluding all
Class Counsel's fees and Class Counsel's costs) incurred
in connection with providing notice of this Stipulation
and the proposed settlement to the Class via the Notice
and Summary Notice.
21. "Person" means, without limitation, any
individual, corporation, partnership or any other entity,
and his, her, or its legal representative.
22. "Plaintiffs" means Brandon Cox, by Edward Cox,
his natural guardian and next friend, John Kreps, Mark
Solomon, M.D., and, as applicable, their predecessors,
subsidiaries, affiliates, officers, directors, partners,
employees, agents, servants, assignees, licensees, heirs,
successors, and/or other transferees or representatives.
23. "Preliminary Order" means the order of the
Court approving the form and manner of notice to the
Class containing in substance the provisions set forth in
paragraph F below and in substantially the form of the
Order Re: Hearing and Approval of Form and Manner of
Giving Notice to Class which is attached hereto as
Exhibit 1.
24. "Releasees" means Iomega, and its present and
former trustees, directors, partners, principals,
officers, employees, attorneys, insurers, parents,
subsidiaries, affiliates, divisions, and any predecessor
or successor partnerships, corporations or entities, and
any person or entity controlled by them or controlling
them.
25. "Request for Exclusion" means a request by a
Class Member to be excluded from the Class pursuant to
Delaware Chancery Court Rule 23.
26. "Settlement Effective Date" means, as more
fully set forth in paragraph C(2) below, the date by
which the Court's approval of this settlement becomes
final and all appeals, if any, have been exhausted.
27. "Settlement Hearing" means the hearing held by
the Court to consider Final Approval of this settlement,
pursuant to Delaware Chancery Court Rule 23(e).
28. "Stipulation" means this Stipulation of
Settlement of Class Action and all exhibits attached
hereto.
29. "Summary Notice" means the Summary Notice of
Pendency of Class Action and Hearing on Proposed
Settlement, to be published in USA Today, the Wall Street
Journal, PC Magazine, PC World and on Iomega's World Wide
Web page, as set forth below in paragraph E below, in
substantially the form attached as Exhibit B to the
Preliminary Order.
30. "Virtual Consultant" means a 24-hour automated
and interactive technical support system to be maintained
on Iomega's World Wide Web internet page, that will be
based upon case-based reasoning technology capable of
responding to customer technical support inquiries
through (1) a basic single question/single answer format,
(2) a more advanced multiple question/multiple answer
format, (3) a decision tree format, and (4) generated
case queries using fuzzy logic. Said system also will
include an on-line tutorial to instruct the user in
operation of the system and will provide technically
feasible graphics illustrating the most frequently asked
technical support questions concerning Zip, Jaz and Ditto
drives. The system will be designed to permit access by
at least 250 concurrent users.
BACKGROUND AND DESCRIPTION OF THIS LITIGATION
1. On July 18, 1997, this class action was
brought by plaintiffs Brandon Cox, a fifteen year old
minor, through Edward Cox, his father, natural guardian
and next friend, John Kreps, and Mark Solomon, M.D.
(collectively, the "Class Representatives") against
Iomega Corporation ("Iomega"). On August 22, 1997, the
plaintiffs filed a First Amended Complaint.
2. The plaintiffs brought this lawsuit on
behalf of themselves and all others similarly situated,
claiming, among other things, that the warranties on
Iomega's Zip, Jaz and Ditto drives implied that Iomega
would provide technical support at no charge to customers
with technical questions or problems. The plaintiffs
also claimed that where customers with Zip, Jaz, and
Ditto drives called Iomega's customer or technical
support lines for help, they were put on hold for
unreasonably long periods. The plaintiffs further
challenged the description of the Warranty issued by
Iomega for certain of its Zip, Ditto, and Jaz drives.
The plaintiffs alleged that the long hold times, the fees
charged for certain technical support calls, and the
wording of Iomega's warranties gave rise to claims under
the Magnuson-Moss Consumer Products Warranties Act, 15
U.S.C. (S)2301 et seq. ("MMA") and the regulations
promulgated in connection therewith, breach of warranty,
the Delaware Consumer Fraut Act, 6 Del.C. (S)(S)2511-
2526, breach of the implied convenant of good faith, and
sought declaratory action.
3. On January 23, 1998, the parties to this
lawsuit filed with the Court a Stipulation of Settlement
of Class Action ("Stipulation") and jointly requested
that the Court certify this case as a class action, with
Brandon Cox, through Edward Cox, his father, natural
guardian and next friend, John Kreps, and Mark Solomon,
M.D. to serve as representatives of the Class.
4. For the purposes of this settlement, the
Court has entered an Order which preliminarily determined
that the Plaintiffs fairly and adequately represent the
interests of the Class and are proper parties to assert
any and all Class Claims in the action. The Court also
has preliminarily certified that this action shall and
may be maintained as a class action, by the plaintiffs as
class representatives. The Class consists of:
All persons in the United States who purchased
Iomega data storage devices, including Zip,
Jaz or Ditto drives between July 16, 1994 and
September 1, 1997.
Excluded from the Class are Iomega, any entity in which
Iomega has a controlling interest, and any of Iomega's
subsidiaries, affiliates, officers, directors, or
employees.
5. Iomega denies any liability or
wrongdoing which is alleged in the Complaint and in the
First Amended Complaint, but has decided to enter into
this settlement in order to confer substantial benefits
upon its customers.
6. The Court has not ruled on the merits of
the claims asserted by the plaintiffs in the Complaint or
the First Amended Complaint.
7. Counsel for the plaintiffs and the Class
have made a thorough investigation of the law and facts
relating to the allegations of the Complaint and the
First Amended Complaint and the defenses likely to be
asserted by Iomega. In addition, Counsel has diligently
reviewed the nature of the relief proposed herein. That
investigation has included study of publicly available
information, as well as analysis of thousands of
documents produced by Iomega. As part of their
investigation of the claims raised in the Complaint and
the defenses to be raised by Iomega to those claims,
Counsel for the plaintiffs have also taken confirmatory
discovery, including depositions of: (a) Iomega's Senior
Director of Customer Satisfaction who is responsible for
customer and technical support and for the proposed
relief contained herein, (b) Iomega's head of
advertising, and (c) Iomega's consultant charged with
collecting information identifying potential members of
the Class.
THE PROPOSED SETTLEMENT
8. Under the Stipulation:
a. For the two year period beginning on the
Settlement Effective Date, Iomega shall at its
expense establish and maintain a Virtual
Consultant, a 24-hour automated and interactive
technical support system to be maintained on
Iomega's World Wide Web internet page, based upon
case-based reasoning technology capable of
responding to customer technical support inquiries
through (1) a basic single question/single answer
format, (2) a more advanced multiple
question/multiple answer format, (3) a decision
tree format, and (4) generated case queries using
fuzzy logic. Said system also includes an on-line
tutorial to instruct the user in operation of the
system and provides technically feasible graphics
illustrating the most frequently asked technical
support questions concerning Zip, Jaz and Ditto
drives. The system will be designed to permit
access by at least 250 concurrent users.
b. For the two year period beginning on the
Settlement Effective Date, Iomega shall at its
expense establish and maintain the IVR System, a
24-hour automated, interactive telephone technical
support system capable of responding, through use
of a decision tree and pre-recorded voice
responses, to customer technical support inquiries
about Iomega Zip, Jaz, and Ditto drives. Said
system will allow a customer calling for technical
support to save his or her technical support
session so that the session can be resumed in a
subsequent telephone call without reinitiation of
the session from the beginning. The IVR System
shall be available toll free to all Iomega
customers at no charge and shall permit the user at
any time to transfer to an automated Iomega
customer support dialogue menu through which a
caller may reach the Iomega Customer Support line
referenced in paragraph 8(d) below.
c. For the two year period beginning on the
Settlement Effective Date, Iomega shall at its
expense commit to limit "hold" times for technical
support regarding Iomega's Zip, Jaz, and Ditto
drives to ten (10) minutes on an average monthly
basis. If the average "hold" time, as calculated
at month's end, exceeds ten (10) minutes because
call volume is higher than projected, then Iomega
shall use its reasonable efforts to reduce the
"hold" times to ten (10) minutes or below within
forty-five (45) days after the end of the month
during which average "hold" times of greater than
ten (10) minutes were first discovered.
d. For the two year period beginning on the
Settlement Effective Date, Iomega shall at its
expense establish, maintain, and make available to
all Iomega customers at no charge a toll-free
"customer support" telephone line, connected
through an existing toll-free Iomega telephone
number. The "customer support" line will be
staffed with personnel trained and equipped to
answer non-technical questions relating to Iomega
products and services and, where necessary, will
refer customers to an appropriate department or
service area, including technical support (except
that a referral to technical support may involve a
charge consistent with Iomega's current policies
and practices regarding imposition of a charge for
technical support). Customer support agents will
be members of Iomega's Executive Response Center
and will be authorized to resolve product concerns,
service complaints, and other issues raised by
customers. During this period, Iomega will commit
to limit "hold" times on the customer support line
to ten (10) minutes on an average monthly basis.
If the monthly average exceeds ten (10) minutes
because call volume is higher than projected, then
Iomega shall use its reasonable efforts to reduce
the "hold" times to ten (10) minutes or below
within forty-five (45) days after the end of the
month during which average "hold" times of greater
than ten (10) minutes was first discovered.
e. For the two year period beginning on the
Settlement Effective Date, Iomega shall provide
telephone technical support to Jaz and Ditto drive
customers toll free and at no charge for a period
of thirty (30) days from the date of the customer's
first call, provided that the customer's first call
falls within the product warranty period.
f. Iomega shall maintain a computer
Database to contain problem and associated solution
information regarding Iomega Zip, Jaz, and Ditto
drives, along with other Iomega products. The
Database is to be updated regularly and promptly
based on information generated by Iomega personnel
from internal Iomega product testing, customer
interaction by telephone, the internet, and other
means. The information housed in the Database will
be accessible by or provided as applicable through
the Virtual Consultant, the IVR System, the Iomega
"Fax-Back" program, and Iomega technical support
personnel.
g. For the two year period beginning on the
Settlement Effective Date, Iomega shall provide
telephone technical support to Zip, Jaz, and Ditto
drive customers, toll free and at no charge, for
technical issues not addressed by the Database at
the time of the customer's telephone call, as will
be determined, in good faith, by the Iomega
technical support technician handling the
customer's telephone call. Upon a determination
that a technical issue is addressed by the Database
and that the customer's technical support call will
be charged, the customer shall be entitled, at his
or her request, to receive from Iomega by e-mail,
fax, or letter, a written description of the
resolution's derivation from the Database. Once a
resolution for a technical issue has been posted to
the Database, Iomega may assess its regular charge
for customers that thereafter raise the same
technical issue.
h. For those Charged Customers not opting
out of this proposed settlement, Iomega shall
extend the Iomega Warranty on their drive for a
period of six months, measured as the later of: (i)
a period of six months from the expiration date of
the original warranty, or (ii) a period of six
months from the Settlement Effective Date.
i. For a period of six months following the
Settlement Effective Date, those members of the
Class who purchased a Zip drive between January 1,
1996 and September 1, 1997 (the purchase date being
deemed to be 90 days from the date of manufacture
as determined by the product serial number), who do
not opt out of the settlement and who were not
charged a technical support fee, shall be entitled
to one call to Iomega's telephone technical support
line at a price representing a discount of $5.00
off of the price charged by Iomega for technical
support.
j. For the two year period beginning on the
Settlement Effective Date, Iomega shall provide
Class Counsel with quarterly status/summary reports
describing the nature of the most frequently
received customer complaints regarding the relief
provided herein. Such reports shall be provided on
a confidential basis and shall be usable only in
the Litigation. The reports shall not identify the
names of Iomega customers and shall report on
customer complaints in summary form only.
k. Iomega shall revise and redesign the
Iomega Warranty (a) to designate the warranty
conspicuously as a "limited" warranty under the
MMA, (b) to identify clearly a toll-free customer
support telephone number attended by Iomega
representatives capable of answering customer
questions about warranty performance, (c) to
identify clearly the fees or charges (if any) that
apply for telephone technical support, and (d) to
identify clearly any other limitations or
exclusions under the warranty. Iomega shall also
revise, redesign, and/or sticker its Zip, Jaz, and
Ditto drive product packaging (a) to indicate that
only a "limited" warranty is provided, and (b) to
identify the fees or charges (if any) that apply to
telephone technical support.
l. Subject to possible unavailability due
to binding confidentiality obligations to third
parties, Iomega shall provide to Class Counsel a
status report of its progress, whether achieved
individually or jointly conducted with third
parties, in resolving issues of interoperability
between certain printers sharing the parallel port
of a user's computer with Iomega's Zip drives.
9. Based on the discovery conducted to date
and their overall investigation in pursuit of their
claims, as well as substantial arms-length negotiations
between counsel, and considering the benefits of the
settlement to the Class, and the risks associated with
further litigation (including the uncertainty of trial
and the delay associated with any appeal), the plaintiffs
and their counsel have concluded that the proposed
settlement is fair, reasonable, and adequate. Based upon
these considerations, the plaintiffs and their counsel
have concluded that it is in the best interests of the
plaintiffs and the Class to settle the claims asserted in
this lawsuit on the terms and conditions agreed upon in
the proposed settlement.
10. The proposed settlement provides
significant benefits to the plaintiffs and the Class and
will eliminate the burden and expense of further
litigation and the risk that nothing will be recovered
for the plaintiffs or the Class if the case goes to
judgment, and it will finally put to rest the claims of
the plaintiffs individually and on behalf of the Class
that were or could have been made against Iomega in this
action.
11. The proposed settlement will become
effective if the conditions of the Stipulation are met
and if the Court enters a final judgment which approves
the settlement (the "Final Judgment") and the Final
Judgment is affirmed, if there is any appeal, or is no
longer subject to appeal.
12. If the proposed settlement is approved
by the Court, all Claimants will be deemed to have
released and discharged all Class Claims, which are
generally described in paragraph 2 above, against Iomega
and all present and former directors, officers, trustees,
employees, insurers, affiliates and partners of Iomega,
and shall be barred from asserting any Class Claim
against Iomega and all present and former directors,
officers, trustees, employees, insurers, affiliates, and
partners of Iomega.
13. If the proposed settlement is approved
by the Court, Iomega shall be barred from asserting any
compulsory counterclaims which could have been raised by
Iomega in this lawsuit against the plaintiffs and the
Claimants and shall be conclusively deemed to have
released such compulsory counterclaims.
14. Iomega, the plaintiffs and the Claimants
would not be released from any claims which arise under
the Stipulation or after the settlement is finalized.
15. The plaintiffs and the Class have been
represented in this litigation by the following law
firms:
Lawrence E. Feldman
Kenneth J. Benton
Gail Gottehrer
Lawrence E. Feldman & Associates
Jenkintown Plaza
101 Greenwood Ave., Suite 230
Jenkintown, PA 19046
Mark C. Rifkin
Greenfield & Rifkin LLP
800 Times Building
Ardmore, PA 19003
Jeffrey S. Goddess
Joseph A. Rosenthal
Rosenthal, Monhait, Gross & Goddess, P.A.
Suite 1401
Mellon Bank Center
P.O. Box 1070
Wilmington, DE 19899-0170
16. Class Counsel will request from the
Court an award of attorneys' fees and reimbursement of
expenses. Class Counsel collectively will request an
award of attorneys' fees in the amount of six hundred
thousand dollars ($600,000), and reimbursement of
expenses in the amount of fifty thousand dollars
($50,000). In addition, Class Counsel will be entitled
to bill Iomega for legal bills up to a total of
$50,000.00 for services rendered to class members in
responding to questions about the settlement after the
Settlement Effective Date.
YOUR CHOICES AS A CLASS MEMBER
17. If you are a member of the Class, as
defined above, you have the following choices:
a. If you wish to participate in the
settlement as a member of the Class, you do
not need to appear at the hearing discussed
below, or take any other action to participate
in this settlement. If the proposed
settlement is approved by the Court, Iomega
will take the actions described above in
Paragraph 8.
b. You may, if you desire, file a signed,
written request to be excluded from the Class.
If you request to be excluded from the Class,
you will not be entitled to the benefits of
the settlement as set forth above in Paragraph
8; you will not be bound by judgments for or
against the Class; and you will retain any
individual rights you may have with respect to
Class Claims. Any member of the Class who
wants to be excluded from the Class must do so
in writing. Such request for exclusion shall
clearly indicate that the sender requests to
be excluded from the Class and shall state:
(1) the name and address of the person seeking
exclusion; (2) the Iomega product(s)
purchased; and (3) the date(s) on which the
product(s) were purchased. Requests for
exclusion that do not include such information
will not be effective. Any request for
exclusion must be received no later than
fifteen (15) days prior to the Settlement
Hearing and copies must be sent to the
following:
Lawrence E. Feldman, Esq.
Lawrence E. Feldman & Associates
Jenkintown Plaza
101 Greenwood Ave., Suite 230
Jenkintown, PA 19046
Joseph A. Rosenthal
Rosenthal, Monhait, Gross & Goddess, P.A.
P.O. Box 1070
Wilmington, DE 19899-0170
Class Counsel
-and-
James W. Prendergast, Esq.
Hale and Dorr LLP
60 State Street
Boston, MA 02109
Jesse A. Finkelstein
Richards, Layton & Finger
P.O. Box 551
Wilmington, Delaware 19899
Counsel for Iomega
c. You may, if you desire, appear at the
Settlement Hearing to object to the proposed
settlement or to the application for
attorneys' fees and reimbursement of expenses,
if you have not requested to be excluded from
the Class. To do so, you must file a written
notice of objection, together with a statement
of your reasons, with the Court. Any such
objection should be directed to the Court as
follows: Brandon Cox, et. al. v. Iomega
Corporation, Civil Action No. 15809, Court of
Chancery of Delaware, 1020 North King Street,
Wilmington, Delaware 19801. To be considered
by the Court, all objections must be received
on or before the fifteenth day before the
Settlement Hearing and copies must also be
sent to:
Lawrence E. Feldman, Esq.
Lawrence E. Feldman & Associates
Jenkintown Plaza
101 Greenwood Ave., Suite 230
Jenkintown, PA 19046
Joseph A. Rosenthal
Rosenthal, Monhait, Gross & Goddess, P.A.
P.O. Box 1070
Wilmington, DE 19899-0170
Class Counsel
-and-
James W. Prendergast, Esq.
Hale and Dorr LLP
60 State Street
Boston, MA 02109
Jesse A. Finkelstein
Richards, Layton & Finger
P.O. Box 551
Wilmington, Delaware 19899
Counsel for Iomega
SETTLEMENT HEARING
18. On April 3, 1998 at 11:00 AM
a hearing will be held in the Court of
Chancery of the State of Delaware located at
the Daniel L. Herrmann Courthouse, 1020 North
King Street, Wilmington, Delaware, to
determine whether the settlement should be
approved by the Court as fair, reasonable and
adequate, and whether judgment should be
entered thereon. The Court will also consider
at this Hearing the request of Class Counsel
for an award of attorneys' fees and
reimbursement of expenses for the services
they have rendered in this litigation. Any
award of attorneys' fees or reimbursement of
expenses that the Court awards will be paid by
Iomega.
19. Your attendance at the
settlement hearing is not required. However,
you may be heard orally at the hearing in
opposition to the proposed settlement or Class
Counsels' application for attorneys' fees and
expenses, only if you have not requested to be
excluded from the Class and have timely filed
written objections in the manner described in
subparagraph 17(c) above. You may also enter
an appearance through an attorney. If you do
not do so, you will be represented in this
action by Class Counsel.
20. The Court reserves the right
to extend any of the deadlines set forth
herein, or to allow late filings of requests
for exclusion or objections to the settlement,
for good cause shown.
21. The Hearing may be
rescheduled by the Court without further
notice to the Class.
EXAMINATION OF PAPERS
22. This is only a summary of
the circumstances surrounding the lawsuit, the
claims and defenses asserted, the proposed
settlement, and the matters related to the
lawsuit. For more detailed information you
may review the Stipulation and related
documents and other papers on file in the
litigation, which may be inspected during
regular business hours at the office of the
Register in Chancery, Court of Chancery of the
State of Delaware, 1020 North King Street,
Wilmington, Delaware 19801. If you have any
questions about this Notice, the settlement,
or the lawsuit generally, you should direct
them to: Iomega Cox Settlement Administrator,
P.O. Box 8028, Newport Beach California
92658-8028, tel. no.
(888) 229-0971.
PLEASE DO NOT CALL THE COURT.
___________________________
Register in
Chancery
DATED: January 26, 1998
|