|
CA Forum Report
Administrator’s Plan for Restitution Fund
The Administrator of the CA Restitution Fund,
Kenneth R. Feinberg, reported that his June 28, 2005 proposed “Plan” has
been approved by the United States Attorney’s Office and submitted to the
court for review, as required by the Deferred
Prosecution Agreement.
A copy of the Plan has therefore been made available for Forum
participants. Its text can be downloaded from the link below, and copies of
the referenced exhibits can be provided upon request.
Investor issues which the
Administrator had asked the Forum to
review, as summarized in the March 15, 2005
Forum Report and supplemental March 22
explanation of the “ownership” or “holder” basis for restitution, are
addressed on page 2 of the Plan. In summary, the Administrator has
concluded that the “issues raised regarding damages to holders merit serious
debate by shareholders, companies, the government, and ultimately Congress,”
but that “the debate has not yet advanced to the point where this
Restitution Fund should be allocated pursuant to the suggested models.”
Forum participants interested in the rights of shareholders to
recover “ownership” or “holder” damages resulting from impairment of
investment value, as distinguished from “trading” damage resulting from
fraudulent inflation of purchase prices, are encouraged to direct their
attention constructively to the development of policies that can be
considered in relation to future restitution funds.
GL – 7/29/05
|