Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_05-cv-00179/USCOURTS-casd-3_05-cv-00179-3/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:77 Securities Fraud

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FIR-001\05cv179-McPahil (order modifying class).doc -1- 

ORDER GRANTING PLAINTIFFS’ UNOPPOSED MOTION TO MODIFY THE CLASS DEFINITION 

CONTAINED IN THE COURT’S ORDER GRANTING CLASS CERTIFICATION; AND FOR LEAVE TO 

FILE AN AMENDMENT TO THE THIRD AMENDED COMPLAINT 

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UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

MICHAEL MCPHAIL; ROBERT BARR 

KIMNACH III; KEVIN and JENNIFER 

MORRISON; SCOTT and KRYSTIN 

WAGNER; CANDACE and NEIL HURLEY; 

On Behalf of Themselves and All Others 

Similarly Situated, 

 Plaintiffs, 

 

 v. 

FIRST COMMAND FINANCIAL 

PLANNING, INC., a Texas Corporation; 

FIRST COMMAND FINANCIAL 

SERVICES, INC., a Texas Corporation; 

LAMAR C. SMITH and HOWARD M. 

CRUMP, 

 Defendants. 

Case No. 05CV0179 IEG (JMA) 

 

ORDER (1) GRANTING LEAVE 

TO FILE AMENDMENT TO 

THIRD AMENDED COMPLAINT 

(2) GRANTING PLAINTIFFS’ 

UNOPPOSED MOTION TO 

MODIFY THE CLASS 

DEFINITION CONTAINED IN 

THE COURT’S ORDER 

GRANTING CLASS 

CERTIFICATION [DOCKET NO. 

184; SEE ALSO DOCUMENT NO. 

175]. 

Judge: Irma E. Gonzalez 

 GOOD CAUSE APPEARING THEREFROM, the Plaintiffs’ Unopposed Motion to 

Modify the Class Definition Contained in the Court’s Order Granting Class Certification 

[Docket No. 184; see also Docket No. 175]; and For Leave To File An Amendment To The 

Third Amended Complaint is GRANTED, and its terms are adopted. The Court hereby 

orders that: 

 1. The Court’s Order Granting Class Certification [Docket No. 184] is modified 

Case 3:05-cv-00179-IEG-JMA Document 202 Filed 12/18/07 Page 1 of 3
FIR-001\05cv179-McPahil (order modifying class).doc -2- 

ORDER GRANTING PLAINTIFFS’ UNOPPOSED MOTION TO MODIFY THE CLASS DEFINITION 

CONTAINED IN THE COURT’S ORDER GRANTING CLASS CERTIFICATION; AND FOR LEAVE TO 

FILE AN AMENDMENT TO THE THIRD AMENDED COMPLAINT 

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to change the class definition found at page 1, lines 6 through 9 to the following definition: 

For a Systematic Investment Plan (SIP) sold through First 

Command, all persons who: (1) made a SIP payment during the 

period from January 31, 2000 through December 31, 2004 so as 

to be charged a 50% sales charge on the money placed at that 

time into the SIP, OR who increased the face amount of an 

existing SIP and were charged a 50% sales charge on the 

increased amount during the period from January 31, 2000 

through December 31, 2004; AND (2) still owned the SIP on 

December 15, 2004; AND (3) did not terminate within fortyfive (45) days of purchasing the SIP so as to receive a full 

refund of the sales charges. Excluded from this class definition 

is any person who, from January 31, 2000 to the present, is/was 

an officer, director, employee, registered representative or agent 

of First Command Financial Services, Inc. or First Command 

Financial Planning, Inc., or any employee or family member of 

the foregoing excluded persons. Also excluded from this class 

definition is any person who paid less than a 50% sales charge 

due to an initial investment or an increase in the face amount of 

an investment that qualified as a break-point, as defined in the 

SIP’s prospectus. 

 2. The Court’s order granting plaintiffs’ motion for class certification [Docket 

No. 175] is modified to change the class definition found at page 25, lines 8 through 10 to the 

following definition: 

For a Systematic Investment Plan (SIP) sold through First 

Command, all persons who: (1) made a SIP payment during the 

period from January 31, 2000 through December 31, 2004 so as 

to be charged a 50% sales charge on the money placed at that 

time into the SIP, OR who increased the face amount of an 

existing SIP and were charged a 50% sales charge on the 

increased amount during the period from January 31, 2000 

through December 31, 2004; AND (2) still owned the SIP on 

December 15, 2004; AND (3) did not terminate within fortyfive (45) days of purchasing the SIP so as to receive a full 

refund of the sales charges. Excluded from this class definition 

is any person who, from January 31, 2000 to the present, is/was 

an officer, director, employee, registered representative or agent 

of First Command Financial Services, Inc. or First Command 

Financial Planning, Inc., or any employee or family member of 

the foregoing excluded persons. Also excluded from this class 

definition is any person who paid less than a 50% sales charge 

due to an initial investment or an increase in the face amount of 

an investment that qualified as a break-point, as defined in the 

SIP’s prospectus. 

 3. Plaintiffs are granted leave to file an Amendment to the Third Amended 

Complaint, amending paragraph 81 to read as follows: 

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FIR-001\05cv179-McPahil (order modifying class).doc -3- 

ORDER GRANTING PLAINTIFFS’ UNOPPOSED MOTION TO MODIFY THE CLASS DEFINITION 

CONTAINED IN THE COURT’S ORDER GRANTING CLASS CERTIFICATION; AND FOR LEAVE TO 

FILE AN AMENDMENT TO THE THIRD AMENDED COMPLAINT 

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/ / / 

 81. The class period is January 31, 2000 through December 31, 2004 

(“class period”). Plaintiffs bring this action as a class pursuant to Rule 23 of the Federal 

Rules of Civil Procedure on behalf of all persons who qualify under the following class 

definition: 

For a systematic investment plan (SIP) sold through First 

Command, all persons who: (1) made a SIP payment during the 

period from January 31, 2000 through December 31, 2004 so as 

to be charged a 50% sales charge on the money placed at that 

time into the SIP, OR who increased the face amount of an 

existing SIP and were charged a 50% sales charge on the 

increased amount during the period from January 31, 2000 

through December 31, 2004; AND (2) still owned the SIP on 

December 15, 2004; AND (3) did not terminate within fortyfive (45) days of purchasing the SIP so as to receive a full 

refund of the sales charges. Excluded from this class definition 

is any person who, from January 31, 2000 to the present, is/was 

an officer, director, employee, registered representative or agent 

of First Command Financial Services, Inc. or First Command 

Financial Planning, Inc., or any employee or family member of 

the foregoing excluded persons. Also excluded from this class 

definition is any person who paid less than a 50% sales charge 

due to an initial investment or an increase in the face amount of 

an investment that qualified as a break-point, as defined in the 

SIP’s prospectus. 

 4. The Amendment to the Third Amended Complaint shall be filed within seven 

(7) days of the date of this Order. 

IT IS SO ORDERED. 

Dated: December 18, 2007 _______________________________ 

 Honorable Irma E. Gonzalez 

 Chief Judge, United States District Court 

Case 3:05-cv-00179-IEG-JMA Document 202 Filed 12/18/07 Page 3 of 3