FREQUENTLY ASKED QUESTIONS

Settlement History

On April 11, 2005, Judge Pauley held a hearing to determine the proposed plan's fairness. The Court approved the Plan on April 22, 2005. Under the Plan, all potential fund recipients who could be identified from the records of the Settling Firms were mailed a Notice and Claim Form or Certification Form in June 2005. The postmark deadline for returning completed forms to the Distribution Fund Administrator was July 29, 2005 with a deadline of September 30, 2005 for late filing.

Checks for valid, timely claims were mailed between December 21, 2005 and May 15, 2006. If you filed a timely claim and you have not received a check, please contact the Global Research Analyst Settlement toll-free at 1-877-637-5998.

On May 15, 2006, the final payment was made to eligible, timely claimants pursuant to the Distribution Fund Plan. As of that date, approximately $172 million remained in the Bear Stearns, Citigroup, CSFB, J.P. Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, US Bancorp Piper Jaffray, Thomas Weisel, and UBS Securities funds. By Order dated May 22, 2006, the Court directed the Distribution Fund Administrator, the SEC, and certain of the Defendant investment banks to submit proposals for the distribution or use of the unexpended fund. By Order dated June 13, 2006, the Court invited the public to comment on the Distribution Fund Administrator's proposal. On July 7, 2006, the Court conducted a hearing to address the various proposals submitted to the Court.

After considering the recommendations of the Distribution Fund Administrator, the SEC, the Defendant investment banks, and the investing public, the Court issued an Order dated September 22, 2006 to establish an initial plan of residual distribution. The Court directed the Distribution Fund Administrator to pay all validated, late-filed claims and to engage in additional outreach to locate eligible recipients under the Plan who have yet to submit a claim.

All investors that could be identified by the records of the Settling Parties as potential fund recipients were mailed another Notice in early October 2006 informing them of the steps they need to take to be eligible for a payment. The postmark deadline for returning completed forms to the Distribution Fund Administrator in this second phase of the Settlement was December 15, 2006. Checks for valid, timely claims filed in this second phase of the Settlement are being mailed in May 2007.

1. How do I know if I am eligible for a claim?

You may be eligible for a payment from the Distribution Fund if: (1) you bought stock through one of the Settling Parties; and (2) that stock is on the list of qualifying stocks for that specific firm; and (3) the purchase was made during the qualifying time period for that stock; and (4) you suffered a net financial loss ("net losses"). To review a list of the Settling Parties, Qualifying Stocks, and Time Periods of Qualifying Purchases is included in this second claim filing period, click here. For more information about eligibility, calculation of payments, or other details, you can read the Distribution Fund Plan.

Eligible investors who have been identified by the Settling Parties and who had not yet filed claims were mailed new claim forms in early October 2006. The deadline for sumbitting a timely Claim Form or Certification Form was December 15, 2006.

Checks for valid, timely claims in the first phase of the Settlement were mailed between December 21, 2005 and May 5, 2006. If you filed a timely claim in 2005 and you have not received a check, please contact the Global Research Analyst Settlement toll-free at 1-877-637-5998. Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.

Checks for valid, timely claims in the second phase of the Settlement are being mailed in May 2007.

To request and obtain more information about the Global Research Analyst Settlement, please call toll-free, 1-877-637-5998 (Call Center hours are 9:00 a.m.- 5:30 p.m. Monday through Friday), email mail@globalresearchanalystsettlement.com, fax 1-800-549-1837, or write to Global Research Analyst Settlement, 201 Lyndale Avenue South, Suite S-3, P.O. Box 1779, Faribault, MN 55021.

2. How do I apply for payment?

The deadline for applying for payment was December 15, 2006.

3. What payments are possible?

Payments are calculated through a Court-approved formula. For further information about payment calculation, please review the Payment Calculations section of the Distribution Fund Plan.

4. What documentation is required to file claim?

Claims required documentation for additional trades, such as sales of unliquidated share purchases.

Acceptable supporting documentation for additional trades included the following:

5. What is the deadline for submitting a claim?

For claims not previously filed, the deadline for submitting a claim was December 15, 2006.

6. When will I receive notification about my filed claim?

Notification and payments are being mailed in May, 2007. If additional information is needed, you will be contacted by a Fund Distribution representative.

7. How do I correct the name on my check?

If your check should be issued to a different name, you should complete a Change of Name and Address Form. You can request one by contacting the Call Center toll free at 1-877-637-5998. Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.

8. Can I still submit a claim for a payment?

All claim filing deadlines have passed, and there is no provision for paying late filed claims.

9. What if I bought stock outside the listed qualifying time periods?

Court Orders provide that, in order to qualify for distribution funds, an investor must have purchased one of the qualifying stocks from a Settling Party during the time period of qualifying purchase. If you purchased the stock outside the time period of qualifying purchase, you are not eligible for funds from the Global Research Analyst Settlement.

In addition, the Global Research Analyst Settlement preserved the right for investors to pursue, to the extent otherwise available, any other remedy or recourse against the settling parties.

10. What if I read the research in question but bought the stock from another brokerage company, such as an online one?

Court Orders provide that, in order to qualify for distribution funds, an investor must have purchased one of the qualifying stocks from a Settling Party during the qualifying period of purchase. If you purchased the stock from a different brokerage firm - such as an online trading entity - you are not eligible for funds from the Global Research Analyst Settlement.

11. If I still own the stock, do I need to sell it to be eligible for money?

No. A key principle in the Distribution Fund Plan is that investors who held on to a stock should not be disadvantaged simply because they did not sell. Therefore, investors are allowed to recover both realized and unrealized net losses. Please read the Payment Calculations to learn about how unrealized net losses will be determined.

12. What components are included in the Global Research Analyst Settlement?

The U.S. Securities and Exchange Commission ("SEC"), NASD, Inc. ("NASD"), the New York Stock Exchange, Inc. ("NYSE"), and state regulators conducted investigations of potential conflicts of interest in equity research analysis that culminated in the Global Research Analyst Settlement. The Global Research Analyst Settlement includes the following components: (1) structural reforms in the relationship between investment banking and research; (2) approximately $85 million for investor education programs; (3) approximately $450 million for independent investment research; (4) approximately $500 million paid to the states; (5) twelve separate distribution funds totaling $432.75 million created in the SEC actions, which consist exclusively of monies paid in resolution of the actions brought by the SEC, NASD, and NYSE; and (6) a preservation of rights for investors to pursue, to the extent otherwise available, any other remedy or recourse against the settling parties.

13. How did the plan come about?

In accordance with the Final Judgments, the Securities and Exchange Commission nominated and The Honorable William H. Pauley III, United States District Judge in the Southern District of New York, appointed Francis E. McGovern, Esq. to be the Distribution Fund Administrator for the Global Research Analyst Settlement. The Distribution Fund Administrator was responsible for the task of proposing a distribution plan consistent with the terms of the Final Judgments. On April 11, 2005, Judge Pauley held a hearing to determine the proposed plan's fairness. The Plan was approved by the Court on April 22, 2005.

14. What if I think I am owed more money than I received?

There is a written appeals process. Appeals will be accepted only for errors in determining eligibility or calculating the distribution fund payment to a recipient. Appeals will not be allowed for any other reason. You may request a copy of your payment calculation from the Global Research Analyst Settlement by calling 1-877-637-5998. Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.

If you believe there is an error in determining your eligibility or in calculating your payment, you may request an appeal form by writing to Global Research Analyst Settlement, 201 Lyndale Avenue South, Suite S-3, P.O. Box 1779, Faribault, MN 55021.

Your completed appeal must then be received no later than 30 days after the appeal form is sent to you. If you appeal, please do not cash your check.

In addition, the Global Research Analyst Settlement preserved the right for investors to pursue, to the extent otherwise available, any other remedy or recourse against the settling parties.

15. Do I have to pay taxes on the amount I receive from the Distribution Funds?

Individual circumstances vary; you should consult a tax adviser regarding the tax implications of any payments you receive from the Global Research Analyst Settlement.

16. If I want to ask a question about the plan, what should I do?

If you have a question about the plan, please call toll-free, 1-877-637-5998 (Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.), email mail@globalresearchanalystsettlement.com, fax 1-800-549-1837, or write to Global Research Analyst Settlement, 201 Lyndale Avenue South, Suite S-3, P.O. Box 1779, Faribault, MN 55021.

17. If I am eligible, when should I expect to receive a check?

New, valid claims that were filed by December 15, 2006 were considered for payment in the second phase of the Settlement and checks are being mailed in May 2007.

Checks for valid, timely claims that were filed by July 29, 2005, were mailed between December 21, 2005 and May 15, 2006. If you already filed a valid, timely claim in 2005 and you have not received a check, please contact the Global Research Analyst Settlement toll-free at 1-877-637-5998. Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.

18. Are investments made through 401(k)s eligible?

Court Orders provide that if an investor purchased one of the qualifying stocks through a Settling Party during the time period of qualifying purchase and the investor suffered a net loss, the investor is eligible for funds, regardless of whether the investment was made through a 401(k) or a traditional brokerage account.

19. If I purchased a bond of one of the companies, am I eligible for the settlement?

Court Orders provide that eligible recipients must have purchased the "equity securities in question." Investors in bonds or other debt instruments are not eligible for compensation from the Global Research Analyst Settlement.

20. Are mutual funds eligible to receive funds?

Court Orders state that purchasers of qualifying stocks through a Settling Party during the time period of qualifying purchase are eligible for compensation, so long as the purchasers suffered a net loss. If a mutual fund meets these threshold requirements, the mutual fund is eligible to receive compensation.

21. Why is Merrill Lynch not included as a Settling Party?

Merrill Lynch reached a previous settlement with state regulators. As a result, it does not have its own Distribution Fund.

22. Will investors who qualify for funds be reimbursed for commissions and fees, as well as their losses?

Investors qualify to be reimbursed for net losses, which include commissions and fees paid on equity security transactions.

23. How were the qualifying stocks determined?

The Final Judgments specify that the investor must have purchased one of the qualifying stocks through a Settling Party during the time period of qualifying purchase for that stock. The qualifying stock for each settling party, as well as the relevant periods of purchase for each stock, were provided in Court Orders.

24. If I do not qualify for a payment under the terms of the Final Judgments, what are my options?

The Global Research Analyst Settlement preserved the right for investors to pursue, to the extent otherwise available, any other remedy or recourse.

25. I moved after I submitted my Claim Form or Certification Form. What should I do?

If you moved after sending in your Claim Form or Certification Form, you should provide the Distribution Fund Administrator with your new address by calling toll-free, 1-877-637-5998 (Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday), or writing to Global Research Analyst Settlement, 201 Lyndale Avenue South, Suite S-3, P.O. Box 1779, Faribault, MN 55021.

26. How are the payments calculated?

Payments are calculated through a Court-approved formula. For further information about payment calculation, please review Payment Calculations.

If you would like information about the possible eligible loss associated with your stock purchases through a settling party, please call our toll free number, and a representative will assist you. The toll free number is 1-877-637-5998, and Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.

27. What if I still have questions?

If after reviewing information on this website, you still have questions, you may call 1-877-637-5998 (Call Center hours are 9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday), email mail@globalresearchanalystsettlement.com or write to: Global Research Analyst Settlement, 201 Lyndale Avenue South, Suite S-3, P.O. Box 1779, Faribault, MN 55021.

Our toll-free number is 1-877-637-5998. Call Center hours are
9:00 a.m. until 5:30 p.m. Eastern time, Monday through Friday.