Source: http://www.aig-caremarkclassaction.com/6595.aspx
Timestamp: 2019-04-23 04:15:24+00:00

Document:
Why did I receive a Settlement Notice?
I have received mailers about other class actions against MedPartners in recent years. Do they involve the same case?
Who are AIG and Caremark and why is this known as the AIG-Caremark Class Action?
I owned stock in a company that merged with MedPartners. Am I a Class Member?
How was the amount of my distribution check determined?
The Class Period covers events that took place almost twenty years ago. I do not have any documents that go that far back. How do I prove that I am a Class Member?
Are stock certificates considered supporting documentation?
A Court authorized the Settlement Notice because you had a right to know about the Settlement of this class action lawsuit and about all of your options, before the Court decided whether to give final approval of the Settlement. The Settlement Notice explains the lawsuit, the Settlement and your legal rights.
The Honorable Pat Ballard of the Circuit Court of Jefferson County in Alabama is overseeing this lawsuit. The case is now known as CIty of Birmingham Retirement & Relief System et al v. Caremark Rx LLC, Case No. 01-CV-03-006630 (the “Litigation”). The people who sued are called Plaintiffs and the companies being sued are called Defendants.
A class action is a type of lawsuit in which one or several individuals or entities, known as Class Representatives, prosecute alleged claims on behalf of all members of a group of allegedly similarly-situated persons and entities in an effort to obtain monetary damages or other relief for the benefit of the entire group, known as a class. Class actions avoid the necessity of each member of a class having to file a separate lawsuit to obtain relief. Class actions are used to decide legal and factual issues that are common to all members of a class.
The Litigation, which was initially filed in October 2003, arises out of the earlier settlement of various securities and derivative lawsuits (collectively referred to as the “MedPartners Securities Litigation”) that were resolved in 1999. Those securities and derivative lawsuits alleged that MedPartners had made a series of false and misleading statements concerning a planned merger between MedPartners and PhyCor Inc., and concerning MedPartners’ overall financial condition.
In the current Litigation, Plaintiffs allege that, during the course of the MedPartners Securities Litigation, the Defendants (1) misrepresented the amount of insurance available to settle the MedPartners Securities Litigation; and (2) suppressed information concerning the excess insurance policy at issue. Plaintiffs allege that the settlement of the MedPartners Securities Litigation would have been much higher if additional facts had been known about the excess insurance policy. The Defendants in the Litigation deny liability and, in addition to other legal defenses, they deny committing any wrongdoing in regard to the MedPartners Securities Litigation Settlement.
On August 15, 2012, the Court certified the Class pursuant to Rule 23(b)(3) of the Alabama Rules of Civil Procedure. The Court’s order was affirmed by the Supreme Court of Alabama in CVS Caremark Corp. v. Lauriello, 175 So. 3d 596 (Ala. 2014) (as modified on denial of rehearing Feb. 27, 2015). (The case was later retitled Johnson v. Caremark Rx, LLC.) A trial date of May 16, 2016, was pending when the Settlement was reached. The Settlement was approved by the Court on August 8, 2016.
The official title of this LItigation has changed several times over the years as changes in the parties' status have taken place. In 2015, Class members were mailed notices in which they were advised of the pending class certification. The case was then known by the name Lauriello v. CVS Health. No action was required of them at the time if they wanted to stay as a member of the class. If they wanted to opt-out of the class and any potential settlement, they were required to exclude themselves by June 30, 2015. (See Frequently Asked Question 15 for more information regarding exclusions from the Settlement). At the time noitce was sent of the pending Settlement in 2016 until recently, this Litigation was known as Johnson v. Caremark Rx LLC. On July 2, 2018, the case was retitled City of Birmingham Retirement & Relief System et al v. Caremark Rx LLC. Regardless of any change in case name, the case number has remained the same (Jefferson County Circuit Court, Birmingham Division Case No. CV-2003-006330).
MedPartners, Inc. and Caremark Rx, Inc. (now known as Caremark Rx, L.L.C.) merged in the late 1990s and the company now operates under the Caremark name. AIG, or American International Group, Inc., is also a defendant in this action. AIG is an insurance and financial services company. It is a separate and distinct organization from Caremark. AIG is also a defendant in this action because it was one of MedPartners’ insurers at the time of the earlier class action. Insurance coverage was a critical factor in the determination to settle the MedPartners Securities Litigation.
Plaintiffs, through Class Counsel, conducted a thorough investigation of the claims and allegations asserted in the Litigation. Through this investigation, and during the twelve years that this case has been pending, Class Counsel has developed a detailed understanding of the underlying events that are relevant to the Litigation. Class Counsel’s investigation has revealed sufficient information to evaluate the claims and defenses asserted in the Litigation and to conclude that no additional information, whether related to the merits of the claims in the Litigation, the amounts potentially available to satisfy a judgment or settlement of the Litigation, or any other matter material to the Litigation, assuming such information were to exist, would have a material impact on their evaluation of this Settlement. Based on this evaluation, Class Counsel and Plaintiffs have concluded that the proposed Settlement is fair, reasonable, and adequate, and it is in the best interests of the Class.
While Plaintiffs believe that the claims asserted in the Litigation have merit, they also believe that the Settlement provides substantial benefits to the Class, including a substantial monetary recovery for the Class while avoiding the risks of continued litigation and the uncertainty of the outcome in the Litigation. Considering the uncertain probability of success on the merits of the Litigation, including the uncertain possibility of obtaining a monetary recovery, and because the proposed Settlement provides a certain benefit to class members and will avoid additional years of delay that would likely occur in the event of a contested trial and appeals, Plaintiffs and Class Counsel have concluded that the Settlement is an excellent result for the Class.
Defendants deny that they engaged in any wrongdoing of any kind, that they committed any violation of law, or that they breached any duty allegedly owed in any way related to Plaintiffs or the Class. Defendants further state that they are entering into the Settlement solely to eliminate the burdens, distractions, expense, and uncertainty of further litigation.
You may be a Class Member if you: (a) purchased MedPartners common stock, including through open-market transactions, mergers or acquisitions in which MedPartners issued common stock, acquisition through the Company’s Employee Stock Purchase Plan (“ESPP”), and any other type of transaction in which a Person acquired one or more shares of MedPartners stock in return for consideration during the period from October 30, 1996, through January 7, 1998, inclusive; (b) purchased call option contracts on MedPartners common stock during the period October 30, 1996, through January 7, 1998, inclusive; (c) sold put option contracts on MedPartners common stock during the period October 30, 1996, through January 7, 1998, inclusive; (d) purchased MedPartners Threshold Appreciation Price Securities (“TAPS”) in the September 15, 1997 offering or thereafter through January 7, 1998; or (e) tendered shares of Talbert Medical Management Holdings Corporation to MedPartners between August 20, 1997, and September 19, 1997, but excluding (i) all those Persons who submitted valid requests for exclusion in connection with the MedPartners Securities Litigation Settlement and (ii) all those Persons who submitted valid requests for exclusions in the response to the Class Notice (collectively, the “Class,” comprised of “Class Members”).
If you are uncertain whether you are a member of the Class, contact Class Counsel or consult your own attorney. The contact information for Class Counsel can be found in response to Frequently Asked Question 13.
Update 1/28/19: Please note that the claims review phase has passed, determination on all claims has been made and approved by the Court, claimants have been notified and distribution payments mailed. No late claims are being accepted.
During the Class Period, MedPartners did acquire other companies that may result in you falling within the Class Member definition. If you owned stock in a company called Talbert Medical Management Holding or Inphynet Medical Management, you could possibly be a member of the Class. We cannot ascertain that information for you and you should talk to your broker to help determine whether you are, in fact, a member of the class.
The Settlement creates a cash fund in the principal amount of Three-Hundred Ten Million Dollars ($310,000,000.00) (the “Settlement Amount”), plus any income that may accrue thereon (the “Settlement Fund”). The Settlement Fund, subject to deductions for, among other things, costs of class notice and administration, certain taxes and tax-related expenses, and attorneys’ fees and expenses as approved by the Court, will be available for distribution to those Class Members who file a timely and valid Proof of Claim and Release and whose claim is approved by the Claims Administrator administering the claims process, all as set forth in the Stipulation and Plan of Allocation. The terms and conditions of the Settlement and Plan of Allocation are set forth in the Stipulation and Agreement of Settlement (“the Stipulation”) and Long Form Notice which can be found on the Case Documents.page.
All claims were reviewed in accordance with the Court-approved Plan of Allocation which was the same Plan of Allocation applied in the earlier MedPartners class action. The Plan of Allocation is contained in the Notice you received advising of the Settlement in the current action. In August 2018, initial determination letters were mailed to all claimants who received either a confirmation of award or a rejection notice. Confirmation of award letters advised Class Members of the Recognized Loss associated with their claim that was calculated in accordance with the Plan of Allocation. As the confirmation of award letters also advised, the Recognized Loss was not the amount you would necessarily receive but that it would be used to determine your pro rata share of the Net Settlement Fund. Any distribution you received was based on the claims filed in the current action but, if you received a distribution in the earlier MedPartners class action, your current payment was reduced by the amount of that distribution.
To participate in the settlement, you must submit a timely and valid proof of claim and release. There are two forms of Proof of Claim and Release. Make sure you select the Proof of Claim and Release form applicable to you.
The first claim form is entitled: “PROOF OF CLAIM AND RELEASE - FORM A.” If you or your predecessor filed a claim in 1999 in the MedPartners Securities Litigation that was approved and you or your predecessor received a disbursement from the MedPartners Securities Litigation Settlement, please complete and file Form A.
All other Class Members wishing to file a Claim should complete “PROOF OF CLAIM AND RELEASE - FORM B”.
For either form, please read the instructions carefully, fill out the applicable Proof of Claim and Release form, sign it, and mail it so that it is delivered no later than September 30, 2016.
For purposes of delivering Proofs of Claim and Release, delivery shall be effective (a) upon personal delivery, if delivered by hand, (b) on the day transmitted online, (c) on the date postmarked if transmitted via the United States Postal Service, or (d) on the next business day, if sent by prepaid overnight courier service.
Unless the Court orders otherwise, if you do not submit a timely and valid Proof of Claim and Release, you will be barred from receiving any payments from the Net Settlement Fund but nevertheless will still be bound by the provisions of the Stipulation and the Final Judgement and Order of Dismissal.
Unless the Court orders otherwise, if you do not submit a timely and valid Proof of Claim and Release you will be barred from receiving any payments from the Net Settlement Fund but nevertheless will still be bound by the provisions of the Stipulation and the Final Judgment and Order of Dismissal.
Update 1/28/19: Please note that the initial distribution took place in mid-January 2019 and checks were made to all claimants who had valid, timely claims where the pro rata distribution amount was in excess of $10.00. If you received a confirmation of award letter in August 2018 but have not yet received a check, please contact the Claims Administrator via email at info@aig-caremarkclassaction.com or call 1-888-564-1149.
If you do nothing, you will not get any benefits from the Settlement; however, unless you previously excluded yourself, you will not be able to start a lawsuit or be a part of any other lawsuit against the Defendants for the claims being resolved by this Settlement.
You will not be charged for these lawyers. If you want to be represented by your own lawyer in this case, you may hire one at your own expense.
Class Counsel filed a Fee and Expense Application with the Court which granted the application . At the Settlement Hearing, A copy of the application and order are posted on this website. The Court has awarded attorneys’ fees and reimbursement of their litigation expenses. In addition, Plaintiffs and former named-plaintiff John Lauriello received an incentive award to compensate them for their efforts in bringing this litigation. Such sums as may be approved by the Court will be paid from the Settlement Fund. Class Members are not personally liable for any such fees or expenses. The fee requested by Class Counsel will compensate counsel for their efforts in achieving the Settlement for the benefit of the Class and for their risk in undertaking this representation on a wholly-contingent basis. More details about fees and expenses are contained in the Long Form Notice, which can be found on the Case Documents page.
In 2015, Class Members were notified that a class was certified by the trial court and affirmed by the Supreme Court of Alabama and were advised that if they wanted to be excluded from the Settlement, they must notify the Claims Administrator in writing by June 30, 2015 of their desire to opt out of the class. The time to request to be excluded from the Settlement has passed.
Under the terms of the Settlement and prior Court orders, written objections were required to be made by July 22, 2016. The time to object to the Settlement has passed.
Gilardi & Company, LLC is a third-party administrator appointed by the Court to notify potential claimants. We are provided with names and addresses of potential claimants in order to notify individuals of settlements. We are not provided with any transactional information. We recommend you contact the institution where you held your shares and request proof or supporting documentation for your claim. As a reminder, if you received a distribution in 1999 in the MedPartners Securities Litigation, in most instances, you may not have to submit documentation in the current action.
Suggested forms of documentation are photocopies of stockbrokers' confirmation slips or stockbrokers' monthly statements reflecting your opening and closing balances for the months specified on the claim form, and in which transactions during the relevant period occurred.
Sufficient documentation will provide all of the required transaction information. Typically, the required detail is transaction date, number of shares and total transaction price.
Stock certificates are generally not considered a sufficient form of documentation as they do not provide the necessary trade date and transaction price information. The stock certificate may be helpful in assisting your broker or other financial services representative retrieve other information that documents the transactions but, by themselves, stock certificates cannot confirm you are eligible to receive a distribution. They only indicate ownership of a stock at one point in time. The question that you should be asking is whether the documentation records a transaction (i.e., purchase or sale of stock, exercise of options or conversion of stock in a merger) during the applicable time period (October 30, 1996 through January 7, 1998).
In August 2018, initial determination letters were sent out and all claimants received either a confirmation of award or a rejection notice. Confirmation of award letters advised Class Members of the Recognized Loss associated with their claim. Both the confirmation of award and rejection notices advised the claimants of the right to request review. The time to request review has passed. The Claims Administrator submitted its final recommendations to the Court and the Court approved the recommendations in its December 4, 2018 order. That order has now become final and checks were mailed to all Class Members who were approved by the Court to receive payment.
PLEASE DO NOT WRITE OR CALL THE COURT OR THE OFFICE OF THE CLERK OF COURT FOR INFORMATION OR ADVICE.

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