Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-04518/USCOURTS-cand-3_05-cv-04518-65/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 28:1331 Fed. Question: Securities Violation

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 PLAN OF ALLOCATION 05-04518 WHA 

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

RONALD SIEMERS, Individually And On 

Behalf Of All Others Similarly Situated, 

Plaintiff, 

v. 

WELLS FARGO & COMPANY, H.D. VEST 

INVESTMENT SERVICES, LLC, WELLS 

FARGO INVESTMENTS, LLC, WELLS 

FARGO FUNDS MANAGEMENT, LLC, 

WELLS CAPITAL MANAGEMENT, INC., 

STEPHENS, INC., WELLS FARGO FUNDS 

DISTRIBUTOR, LLC, AND WELLS FARGO 

FUNDS TRUST, 

Defendants. 

No. 05-04518 WHA 

[PROPOSED] PLAN OF ALLOCATION

This plan sets forth the method of apportioning and distributing the Settlement Account 

created pursuant to the Stipulation of Settlement. All capitalized terms have the meanings assigned 

to them in the Stipulation of Settlement. 

1. Claims Administrator 

Lead Counsel shall be empowered to retain a third party to fulfill the duties of the Claims 

Administrator under this Plan of Allocation, but the selection of the third party shall be subject to 

the approval of Defendants. The Claims Administrator shall not be an agent, vendor or in any way 

affiliated with any of Defendants. 

2. Apportionment of Settlement Account 

(a) During the existence of the Settlement Account, the Escrow Agent shall pay any taxes 

due out of the assets of the Settlement Account. 

(b) Within sixty (60) days of the Effective Date, the Claims Administrator shall apportion the 

balance of the Settlement Account in the following order: 

(i) Taxes. The Claims Administrator shall pay any remaining taxes due. 

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(ii) Administrative Costs. The Claims Administrator shall receive from the 

Settlement Account its Administrative Costs. 

(iii) Payment to Lead Plaintiff. The Claims Administrator shall pay the Lead Plaintiff 

one thousand five hundred dollars ($1,500.00). 

(iv) Attorneys’ Fees and Expenses to Lead Plaintiff and Lead Counsel. The Claims 

Administrator shall pay Lead Counsel attorneys’ fees in the amount of two hundred eightyseven thousand five hundred dollars ($287,500.00) and expenses in the amount of fifty-four 

thousand seventy-eight dollars and ninety cents ($54,078.90), and it shall pay Lead Plaintiff 

one thousand dollars ($1,000.00). The Claims Administrator shall add to such payments 

interest accrued thereon from the date of this Order through the Effective Date. 

(v) Payment to Small Cap Growth Fund. The Claims Administrator shall pay the 

Wells Fargo Advantage Small Cap Growth Fund thirty-two thousand eight hundred seventyone dollars and one cent ($32,871.01), which represents fifty thousand dollars ($50,000.00), 

less five percent of the total amount ordered by the Court to be paid to Lead Counsel and Lead 

Plaintiff for attorneys’ fees and expenses. The Claims Administrator shall add to such 

payment interest accrued thereon from the date the Settlement Account was funded through 

the Effective Date. 

(vi) Apportionment of Remainder to Certified Wells Fargo Mutual Funds. The 

remaining balance of the Settlement Account shall be apportioned to pay claims with respect 

to each Certified Wells Fargo Mutual Fund (hereinafter “Certified Fund”) as follows: Small 

Cap Growth Fund 23.1%, Diversified Equity Fund 69.4%, Montgomery Emerging Markets 

Focus Fund 7.5%. For example, if the remaining balance of the Settlement Account 

(including accrued interest) is $650,000.00, the portion used to pay claims with respect to the 

Small Cap Growth Fund will be $150,150.00. This dollar amount for each Certified Wells 

Fargo Mutual Fund will be known as the Apportionment Amount. 

3. Claims Process 

(a) Lead Counsel shall create a claim form, which shall be available on request from the 

Claims Administrator and on the internet at a website whose location is stated in the Notice and the 

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Summary Notice. The claim form may be filled out online, and Settlement Class Members shall 

also have the option of submitting a paper copy of the claim form by mail, and such option shall be 

made clear on the website. Class members may obtain a paper copy of the claim form by 

(1) downloading it from the website or (2) requesting that the Claims Administrator mail it to them 

by calling the Claims Administrator’s toll-free number and providing their mailing address. The 

claim form shall be substantially in the form attached hereto as Exhibit A, but with modifications 

requested by the Court and/or the Claims Administrator and approved by the parties. 

(b) The website referred to in Paragraph 3(a), and any other website used for notice or 

claims administration or otherwise in connection with the Settlement, shall be subject the provisions 

set forth in Paragraph 4(a)(vii) of the Stipulation. 

(c) Settlement Class Members shall be entitled to a distribution from the Settlement Account 

only if they file a claim form no later than sixty (60) days after entry of the Order and Final 

Judgment. All Settlement Class Members who fail to timely submit a claim form shall be forever 

barred from receiving any payments pursuant to the Stipulation. 

(d) On the claim form, the Settlement Class Member shall state, under penalty of perjury, for 

each Certified Fund as to which the Settlement Class Member wishes to make a claim, the 

following: 

(i) the dates of any purchases and sales of shares (excluding automatic reinvestments) 

during the following Claims Periods: 

(a) Small Cap Growth Fund: November 4, 2000 to June 8, 2005, 

(b) Diversified Equity Fund: November 4, 2000 to June 8, 2005, 

(c) Emerging Markets Focus Fund: June 9, 2003 to June 8, 2005; 

(ii) the number and price of shares purchased or sold on each such occasion and the 

total transaction amount; 

(iii) the fund name and share class (or ticker symbol) so purchased or sold; 

(iv) The Settlement Class Member’s full name, address, telephone number, email 

address, tax identification number, and W-9 certification; and 

(v) acknowledgement that claims are subject to audit and that false claims can give 

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rise to prosecution for perjury and/or wire or mail fraud. 

(e) The Settlement Class Members who timely make valid claims (including any such 

persons on whose behalf claims are submitted by nominee owners or omnibus account owners) shall 

be known as Claimants. 

4. Computation of Amounts Due to Settlement Class Members 

(a) The amount of the Settlement Account apportioned to each Claimant shall be based on 

the ratio between (1) the Claimant’s average holdings of the Certified Funds during the Class Period 

and (2) the total holdings of those Certified Funds by all Claimants. This ratio shall be computed as 

provided in the following sub-paragraphs of this Paragraph 4. 

(b) From the information supplied on the claim form as to number of shares purchased or 

sold, as well as publicly available information as to the closing share price on each day, the Claims 

Administrator shall determine each Claimant’s daily account balance in each Certified Fund with 

respect to purchases made during the Claims Period. The Claims Administrator shall then determine 

for each Certified Fund the sum of each Claimant’s daily account balances related to purchases 

during the Claims Period, divided by the number of days between the Beginning Date for that 

Certified Fund and the end of the Class Period. (For the Small Cap Growth Fund and Diversified 

Equity Fund, the divisor is 1678 days; and for Montgomery Emerging Markets, the divisor is 730 

days). The result, for each Certified Fund and Claimant, shall be known as the Claimant Average 

Fund Balance. 

(c) The Claims Administrator shall determine, for each Claimant, the sum of the Claimant 

Average Fund Balances. This sum shall be known as the Claimant Average Total Balance. The 

Claims Administrator also shall compute ten percent (10%) of the Claimant Average Total Balance, 

which shall be known as the Claimant Ten Percent Ceiling. 

(d) The Claims Administrator shall determine for each Certified Fund, the sum of the 

Claimant Average Fund Balances held by all Claimants. This sum, for each Certified Fund, shall be 

known as the Class Average Fund Balance. 

(e) The Claims Administrator shall determine, for Claimant and each Certified Fund, the 

ratio between the Claimant Average Fund Balance and the Class Average Fund Balance. This ratio 

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shall be known as the Claimant Fund Ratio. 

(f) For each Certified Fund and each Claimant, the Claims Administrator shall multiply the 

Claimant Fund Ratio times the Apportionment Amount in Paragraph 2(b)(v)) above. The product 

shall be called the Claimant Fund Apportionment Amount. 

(g) For each Claimant, the Claims Administrator shall sum the Claimant Fund 

Apportionment Amounts for all three Certified Funds. This sum shall be known as the Claimant 

Distribution Amount. 

(h) The entire Claimant Distribution Amount shall be distributed to the Claimant unless the 

Claimant Distribution Amount (1) is greater than the Claimant Ten Percent Ceiling or (2) is less 

than $20.00. If the Claimant Distribution Amount is greater than the Claimant Ten Percent Ceiling, 

the Claimant Distribution Amount shall be reduced to equal the Claimant Ten Percent Ceiling. 

(i) For any Claimant whose Claimant Distribution Amount is less than $20.00, a second 

calculation will be performed as follows. 

(i) The Claims Administrator shall determine the sum of all Claimant Distribution 

Amounts that were less than $20.00, plus the sum of the Claimant Distribution Amounts in 

excess of the Claimant Ten Percent Ceilings. This combined sum shall be known as the Total 

Reallocation Pool. 

(ii) The Claims Administrator shall divide the Total Reallocation Pool into three 

pools, one for each Certified Fund, according to the same percentages set forth in Paragraph 

2(b)(vi) above. Each result shall be known as a Fund Reallocation Pool. 

(iii) Beginning with Claimant who had an initial calculated Claimant Distribution 

Amount of $19.99 and proceeding sequentially to Claimants with lower Claimant Distribution 

Amounts, $20.00 shall be distributed to each Claimant until the Fund Reallocation Pool is 

exhausted. If any Claimant after the above process still is not entitled to at least $20.00, that 

Claimant will receive no distribution. 

(j) If after the above process is complete, there remain additional funds in the Settlement 

Account, the Court shall determine how to allocate such funds, except that no portion of the amount 

shall be returned to any of the Released Parties. 

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5. Notice Of Rejected Claims 

If no distribution is being made to the Claimant, the Claims Administrator shall inform the 

Claimant by email as to the reasons for non-distribution. 

6. Distribution To Settlement Class Members 

The Claims Administrator shall pay the Claimant Distribution Amount to the Claimant in one 

of the following methods, at its discretion: (a) mail a check to the address provided on the claim 

form or (b) if reasonably feasible, have the funds electronically transferred to the Claimant, if the 

Claimant has a Wells Fargo Account that is open at the time of distribution. Defendants shall bear 

the costs of any such electronic transfers and shall cooperate with the Claims Administrator to 

facilitate payments to holders of the Wells Fargo Accounts that are open at the time of distribution. 

DATED: __________________, 2008. 

HONORABLE WILLIAM H. ALSUP 

UNITED STATES DISTRICT JUDGE 

February 5

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge William Alsup

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