1:02-cv-03288 | S.D.N.Y. | Sep 30, 2009
Case 1:02-cv-03288-DLC Document3350 Filed OQ/SWB
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IN RE woRLDcoM, INC. sEcURITIEs = 02 civ. 3288 (DLC)
LITIGATION -
oRDER
DENISE COTE, District Judge:
This Order addresses an objection raised by E. Bruce Barber
and Louise J. Barber to the rejection of their claim in the
WorldCom Securities Litigation. A request for exclusion dated
July 23, 2004 was received by the Garden City Group (“GCG”), the
Administrator for the plaintiff class in the WorldCom Securities
Litigation, on behalf of E. Bruce Barber and Louise J. Barber
and was submitted. The signature on the request for exclusion
is illegible, but is followed by the phrase “attorney of
record ” The request arrived in an envelope from the Law
Offices of Sandor L. Grossman, Ltd, and is postmarked August 18,
2004. When GCG advised the Barbers of the reason for the
decision to reject their claim, it explained that while a proof
of claim had been filed in February 2005, “a valid request for
exclusion was submitted by the law offices of Sandra L. Grossman
in July 2004.” The Barbers objected on May l, 2009, protesting
that “a valid request for exclusion was never submitted” for
them. They add that they never signed any claim for exclusion
and represent that they “have never heard of Sandra L. Grossman,
Case 1:02-cv-03288-DLC Document 3350 Filed 09/30/09 Page 2 of 5
Esq.” GCG incorrectly referred to Sandor Grossman as “Sandra”
Grossman in explaining the reasons for rejecting the Barbers'
claim. An Order dated July 28, 2009 required Lead Counsel to
file a report by September ll, 2009 addressing whether the
Barbers had permitted Sandor Grossman to file a request for
exclusion on their behalf. The Barbers were permitted to
respond to Lead Plaintiff's report by September 25, 2009.
Lead Plaintiff's report represents that Sandor Grossman
attempted to settle the Barbers' claim with Salomon Smith
Barney, and that he claims that the Barbers orally authorized
his office to submit the request for exclusion on their behalf.
Lead Plaintiff also reports that the Barbers maintain that they
do not recall authorizing anyone to exclude them from the class.
Sandor Grossman's files have been lost as the result of a
computer server failure, although he has recovered three
relevant documents that he submitted to Lead Plaintiff. A
letter dated November 11, 2004 refers to a statement that the
Barbers sent to him “a couple of months ago,” discusses an
arbitration agreement, and attaches his fee agreement, A letter
dated March 17, 2005 indicates that in August 2004, the Barbers
sent Sandor Grossman records of their WorldCom losses. He
explains that he can secure a settlement of about $7,000 for
them.
Case 1:02-cv-03288-DLC Document 3350 Filed 09/30/09 Page 3 of 5
In their September 22, 2009 submission to the Court, the
Barbers explain that their memories are not as good as they once
were, given their age and the passage of time. They do not
contend, however, that they “never heard of” Sandor Grossman.
Indeed, their objection to the rejection of their claim now
rests on the assertion that they did not consent to anyone
requesting their exclusion from the class.
Based on this sparse record, it appears that in or before
August 2004, the Barbers requested that Sandor Grossman seek a
recovery from Salomon Smith Barney by filing a claim in
arbitration on their behalf, that they sent him records of their
trading activity in WorldCom securities to assist in this
endeavor, and that Sandor Grossman filed a timely request for
exclusion from the class on their behalf to preserve their right
to proceed with the arbitration claim. Accordingly, it is
hereby
ORDERED that the objection raised by E. Bruce Barber and
Louise J. Barber to the rejection of their claim is denied.
Case 1:02-cv-03288-DLC Document 3350 Filed 09/30/09 Page 4 of 5
lT IS FURTHER ORDERED that GCG shall serve a copy of this
Order on the Barbers.
SO ORDERED:
Dated: New York, New York
September 30, 2009
jul 475
ENISE UTE
United tates District Judge
Case 1:02-cv-03288-DLC Document 3350
Copies Sent To:
John Patrick Coffey
Bernstein Litowitz Berger & Grossmann LLP
1285 Avenue of the Americas
New York, NY 10019
Shandarese Garr
The Garden City Group, Inc.
105 Maxess Road
Melville, New York 11747
Jeffrey Golan
Barrack, Rodos & Bacine
2001 Market Street
3300 Commerce Square
Philadelphia, PA 19103
Filed 09/30/09 Page 5 of 5