Reset Font to Default Medium Font Larger Font

Amaranth Natural Gas Commodities Litigation


SETTLEMENT UPDATE
On September 28, 2017, a second distribution of the Net Settlement Fund was made to eligible class members. If you receive a check from the second distribution, please cash it promptly as it will become stale on the date set forth on the check.


The following is a summary of information presented in more detail in the Notice of Class Action, Settlements Therein, April 9, 2012 Hearing Thereon, and Class Members’ Rights (the "Notice"), which Class Members should have received via U.S. mail, and which you can access by clicking on the link at the left.  Since this is just a summary, you should see the full Notice for additional details.

If You Purchased any of the following New York Mercantile Exchange ("NYMEX") Natural Gas Futures Contracts During the Period of February 16, 2006 Through September 28, 2006 Inclusive, (“Class Period”) You May Be Entitled to Share in the $77.1 Million Settlement Fund.   

NYMEX E-mini Natural Gas Futures

Month

Year

Code

March

2006

QG H06

April

2006

QG J06

 May

2006

QG K06

June

2006

QG M06

July

2006

QG N06

August

2006

QG Q06

September

2006

QG U06

October

2006

QG V06

November

2006

QG X06

December

2006

QG Z06

January

2007

QG F07

February

2007

QG G07

March

2007

QG H07

April

2007

QG J07

NYMEX Natural Gas Futures

Month

Year

Code

March

2006

NG H06

April

2006

NG J06

May

2006

NG K06

June

2006

NG M06

July

2006

NG N06

August

2006

NG Q06

September

2006

NG U06

October

2006

NG V06

November

2006

NG X06

December

2006

NG Z06

January

2007

NG F07

February

2007

NG G07

March

2007

NG H07

April

2007

NG J07

           

Please read this information carefully.  If you are a Class Member (as defined below), your rights will be affected by these proceedings and you may be entitled to receive benefits under the Settlements.  The Court certified the Class as: All persons who satisfy any one of the following: 


(1) Purchased, between February 16, 2006 and September 28, 2006 (“Class Period”), New York Mercantile Exchange (“NYMEX”) natural gas futures contracts for December 2006, January 2007, February 2007, or March 2007 either (i) to liquidate prior to September 1, 2006, a short position in the contract, or (ii) as a long position in such contract which was not liquidated until after May 10, 2006;

(2) Purchased, during the Class Period, a NYMEX natural gas futures contract for March 2006, April 2006, May 2006, June 2006, July 2006, August 2006, September 2006, October 2006, or November 2006 (“the 2006 Contracts”) or April 2007 as a long position in such contract, and liquidated such position after May 10, 2006;

(3) Purchased a 2006 Contract as a long position in such contract, held such a position as of the start of or acquired such a position during any of the following time periods, and sold all or a portion of such position during or after the end of such time period and on or prior to September 28, 2006.  Time Periods:  (i) 2:00 p.m.-2:30 p.m. on February 24; (ii) 2:00 p.m.-2:30 p.m. on March 29; or (iii) 2:00 p.m.-2:30 p.m. on April 26, 2006.

                                        Your Legal Rights Are Affected Whether You Do Or Do Not Act.


Commodities Brokers and other Nominees: Please see the Broker E-Filing Template on the left side of this website and complete instructions at the end of the Notice. 
 

        IMPORTANT: DATES AND DEADLINES
 HAVE PASSED

Submit a Proof of Claim and Release Form

Postmarked no later than June 8, 2012

Request an Exclusion

Received no later than March 5, 2012

File an Objection

Served or filed on or before March 19, 2012

Final Approval Hearing:

April 9, 2012, 4:30 p.m.   


PLEASE NOTE: Members of the Class may be entitled to share in the Net Settlement Fund if they submit a valid and timely Proof of Claim postmarked no later than June 8, 2012. 
The Proof of Claim and Release form is accessible from this website.  However, if you are a Member of the Class but do not file a Proof of Claim and Release, you will still be bound by the releases set forth in the Settlement Agreements.

What Is This Case About?

Plaintiffs claimed that the Amaranth Defendants, between February 16, 2006 and September 28, 2006, engaged in two separate but related manipulations of NYMEX natural gas futures prices.  First, Plaintiffs alleged that the Defendants held dominant positions in NYMEX natural gas contracts with delivery months from March 2006 to April 2007 during certain parts of the Class Period and Defendants used these dominant positions to artificially inflate the spread between summer 2006 contracts and winter 2006-2007 contracts.  Plaintiffs also alleged that Defendants manipulated NYMEX natural gas futures prices by engaging in so-called “slam the close” trades during the last 30 minutes of trading in the March, April and May 2006 contracts for the purpose of driving the price of those contracts lower in order benefit non-NYMEX natural gas positions and further inflate spread prices in violation of Section 22(a)(i) of the Commodoity Exchange Act.  The Amaranth Defendants have consistently and vigorously denied Plaintiffs’ claims.  

Plaintiffs also claimed that the Floor Broker Defendants had knowledge of, and provided substantial assistance to the Amaranth Defendants' foregoing alleged manipulations of NYMEX natural gas prices.  The Floor Broker Defendants have consistently and vigorously denied Plaintiffs’ claims. 

Terms of the Settlements

Plaintiffs entered into a settlement with the Amaranth Defendants on December 13, 2011 (the “Amaranth Settlement Agreement”) and entered into a separate settlement with the Floor Broker Defendants on December 22, 2011 (the “Floor Broker Settlement Agreement”).

Amaranth Settlement

By entering into the Amaranth Settlement Agreement in order to resolve the claims against them, the Amaranth Defendants have agreed to wire transfer (a) $72,400,000 into the Escrow Account within ten (10) business days after entry of the Scheduling Order (“Initial Payment”) and (b) $4,700,000 into the Escrow Account within fifteen (15) business days after entry of the Scheduling Order (“Additional Payment”).  The foregoing payments, plus all interest earned thereon, constitute the Settlement Fund of $77.1 million.

The Settlement Amount will be divided, after deduction of Court-awarded attorneys’ fees and expenses, Notice and Administrative Expenses, any applicable taxes, and any other expenses and awards the Court may order, among all Settlement Class Members who timely submit valid Proof of Claim forms that show a Recognized Loss. Your share of the Net Settlement Fund will depend on several things, including: (1) the Class Member’s “Adverse Impact” which shall be equal to the sum of their “Artificiality Paid” on each purchase of a Class Contract minus the sum of their “Artificiality Received” on each sale of a Class Contract; (2) “Artificiality Paid” or “Artificiality Received,” which shall be calculated based on either (a) the Daily Artificiality Estimates or (b) the Slam The Close Artificiality Estimates, whichever produces a higher Allowed Claim Amount for the Class Member; (3) “Net Adverse Impact,” which shall mean the Adverse Impact minus the Hedging Deduction.; and (4) the Hedging Deduction, for Class Members who are determined to be hedgers, which shall equal 25% of the Adverse Impact.  Examples of potential computations under the Plan of Allocation are available on this website.

Once all the Proofs of Claim and Release forms are processed and claims are calculated, Lead Plaintiffs' counsel, without further notice to the Settlement Class, will apply to the Court for an order distributing the Distribution Amount to the members of the Settlement Class.  Counsel will also ask the Court to approve payment of the Administrator’s fees and expenses incurred in connection with administering the Settlement that have not already been reimbursed.

In exchange for Amaranth LLC’s payments of the Initial Payment and the Additional Payment, Members of the Class will release their claims against the Released Parties as defined in the Amaranth Settlement Agreement arising in any way out of transactions in Class Contracts, that is, arising in any way from the nucleus of operative facts alleged or at issue or underlying the action, whether or not asserted in the Action.

Floor Broker Settlement

By entering into the Floor Broker Settlement Agreement in order to resolve the claims against them, the Floor Broker Defendants have agreed to provide cooperation (including up to 35.5 hours of interviews and other cooperation) to Plaintiffs’ counsel for the benefit of the Class.

Pursuant to the terms of the Floor Broker Settlement Agreement, the Floor Broker Defendants and non-party Vincent Rufa (a former clerk of Defendant ALX Energy, Inc.) have agreed to provide the following cooperation to Plaintiffs’ Counsel for the benefit of the Class.

Defendant DeLucia has agreed to make himself available for up to 22.5 hours of interview time with Plaintiffs’ Counsel.  Defendants DeLucia and ALX have further agreed to provide all non-privileged documents in their possession or control relating to the Action and to provide up to 6 additional hours of interview time relating to issues surrounding such documents.  Id.  Finally, Vincent Rufa has agreed to sign affidavits reflecting truthful testimony, appear at trial to testify truthfully and make himself available for up to 7 hours of interviews with Class Counsel.  The Floor Broker Defendants have already provided substantial cooperation benefitting the Class.

In exchange for the consideration provided by the Floor Broker Defendants, Members of the Class will release their claims against the Floor Broker Defendants arising in any way out of transactions in Class Contracts, that is, arising in any way from the nucleus of operative facts alleged or at issue or underlying the action, whether or not asserted in the Action. 

Fairness Hearing and Right to Object

The Court has scheduled a public hearing on Final Approval for April 9, 2012 at 4:30 p.m. to be held at the United States Courthouse, Courtroom 15C, 500 Pearl Street, New York, New York 10005.  The purpose of the Final Approval Hearing is to determine, among other things, whether the Settlements, the Plan of Allocation and the application by Lead Counsel for Class Counsel attorneys’ fees and reimbursement of Class Counsel’s expenses are fair, reasonable, and adequate.

If you are a Member of the Class, you are entitled to appear, in person or through duly authorized attorneys, and to show cause why the Settlement or other applications should or should not be approved.  However, if you wish to appear you must submit a written statement, along with any materials you wish the Court to consider.  This written statement must be filed with the Court (at the address provided above)  and also served on Class Counsel and counsel for Defendants at the addresses set forth in III.B., page 9, of the Notice on or before March 19, 2012 or it will not be considered.

Options Available to Class Members under This Settlement

                A.             Do Nothing

If you do nothing, you will remain in the Class.  By remaining in the Class, you will be included in and bound by any resolution of the claims, whether favorable or unfavorable, to Plaintiffs and the Class.

                B.            Proof of Claim and Release Form

As a Member of the Class, you may be entitled to share in the Net Settlement Fund if you submit a valid and timely Proof of Claim and Release demonstrating that you have an Allowed Claim. 

An important aspect of the Settlement is that Defendants are not entitled to any reversion of the Settlement Fund – only if the Net Settlement Fund exceeds the sum of the Allowed Claims. 

                C.            Object to the Settlement

Any Member of the Class may appear at the Final Approval Hearing in person or by counsel and may be heard, to the extent allowed by the Court, either in support of or in opposition to the fairness, reasonableness, and adequacy of either or both of the proposed settlements or any related matter (including the request for attorneys’ fees or the Plan of Allocation or any other matter). 

However, no person shall be heard in opposition to the Amaranth Settlement Agreement or to the Floor Broker Settlement Agreement, and no papers or briefs submitted by or on behalf of any such person shall be accepted or considered by the Court, unless, on or before March 19, 2012, such person files the following with the Court and serves the same on or before such filing by hand or overnight mail on the Lead Counsel and all counsel of record for the Amaranth Defendants and the Floor Broker Defendants: (i) a written notice of intention to appear; (ii) proof of membership in the Class; (iii) a detailed statement of the objections to any matters before the Court; (iv) a statement advising of any court proceeding in which said objector has made an objection to a proposed class action settlement within the past three years, including case name, docket number, and court; (v) the grounds or reasons why the Member of the Class desires to appear and be heard; and, (vi) all documents or writings the Member of the Class desires the Court to consider.  (See addresses in Section III.B., page 9, of the Notice.)

                D.            Request to Be Excluded from the Settlement

To exclude yourself from the Class for the Amaranth Settlement Agreement, you must submit a written request that clearly states: (i) the date of acquisition of each position in any Class Contract; (ii) when and at what price such position(s) was/were acquired, closed out or sold; and (iii) a statement and description of whether positions in the Class Contracts were acquired as a hedge of other positions or exposure.

Requests for Exclusion from the Class for the Amaranth Settlement Agreement must be sent by First-Class mail (preferably certified mail) to Counsel for Plaintiffs, Counsel for the Amaranth Defendants (see addresses in "B" above), and the Settlement Administrator (see address in VIII below).  Requests for exclusion must be received by the Settlement Administrator no later than March 5, 2012.   

If you exclude yourself from the Class for the Amaranth Settlement Agreement, you will not be bound by the Amaranth Settlement Agreement and can independently pursue claims you may have against the Amaranth Defendants at your own expense.  You may also enter an appearance through an attorney if you so desire.  However, if you exclude yourself, you will not be eligible to share in the Net Settlement Fund.

To exclude yourself from the Class for the Floor Broker Settlement Agreement, you must send your request for exclusion from the Class by First-Class mail (preferably certified mail) to Counsel for Plaintiffs, Counsel for the Floor Broker Defendants (see addresses in "B" above), and the Settlement Administrator (see address in VIII below).  Requests for exclusion must be received by the Settlement Administrator no  later than March 5, 2012.  

If you exclude yourself from the Class for the Floor Broker Settlement Agreement, you will not be bound by the Floor Broker Settlement Agreement and can independently pursue claims you may have against the Floor Broker Defendants at your own expense.  You may also enter an appearance through an attorney if you so desire.


Further Information

Further information regarding the Litigation, the Notice, and how to file your Proof of Claim and Release form may be obtained by contacting the Settlement Administrator or reading through the Notice and Proof of Claim and Release form links at the left.

Link to NFL.com

Disclaimer

IMPORTANT: this site is not operated by the Amaranth MASTER FUND.  This settlement is supervised by Lead Plaintiffs' counsel.  The settlement administrator handles all aspects of claim processing.  This is the authorized website for this settlement.  Please do not rely upon other sites that set out different and unauthorized information.

View the Privacy Policy