On January 29, 2010, the U.S. District Court for the Northern District of California granted the motion of Day Pitney LLP partner Jeffrey Plotkin, in his capacity as Distribution Agent for the Fair Fund established in SEC v. McAfee, Inc. (f/k/a Network Associates, Inc.), to distribute $67,230,000 to 16,183 eligible claimants on a pro rata basis.
The SEC v. McAfee, Inc. Fair Fund is comprised of payments made to the court by various entities and persons to settle SEC civil and administrative actions arising from McAfee, Inc.'s fraudulent scheme to overstate its revenue and earnings by hundreds of millions of dollars during the period of 1998 through 2000. The court appointed Jeffrey Plotkin as Distribution Agent in August 2008 to prepare and implement a plan for the distribution of the Fair Fund to investors harmed by the scheme. The court approved the Distribution Plan in March 2009.
During the past eleven months, Jeffrey Plotkin, with the assistance of The Garden City Group, Inc., the Claims Administrator for the Fair Fund, identified potentially eligible claimants to the Fair Fund, mailed over 350,000 claims packets to potentially eligible claimants and nominees, processed 33,352 claims, and ultimately determined that 16,183 claims, representing a total of 67,035,850 shares of McAfee, Inc. common stock purchased and held through the recovery period, were eligible for a distribution from the Fair Fund. The total eligible loss amount for the approved claims was over $486 million.
Each eligible claimant will receive a pro rata distribution payment from the Fair Fund equivalent to $1.00 per share for their approved claims (e.g., an approved claim for 10,000 shares will yield a $10,000 distribution payment). Mr. Plotkin expects to distribute the funds to eligible claimants in or about mid-February 2010.
Day Pitney LLP attorney Rosemary Q. Barry has served as counsel to the Distribution Agent since the inception of the Fair Fund.