If you have recently received a notice regarding the OSHS class action settlement, you may be eligible for a financial payment. This settlement involves allegations related to securities law and the financial reporting of Old Second Bancorp, Inc. Navigating the world of class action lawsuits can be overwhelming, but understanding your rights is the first step toward claiming what you may be owed.
This guide provides a straightforward breakdown of the OSHS settlement, who is included in the class, and the specific steps you need to take to file a claim. By following these instructions, you can ensure that your submission is accurate and submitted before the looming deadlines.
Understanding the OSHS Settlement Background
The OSHS settlement stems from a class action lawsuit filed against Old Second Bancorp, Inc. and certain members of its executive leadership. The plaintiffs in the case alleged that the company made misleading statements or failed to disclose critical information regarding its financial health, specifically concerning its credit losses and loan portfolios.
In legal terms, this is known as a securities class action. The goal of such a lawsuit is to recover losses for investors who purchased stock based on information that was later found to be inaccurate or incomplete. Rather than continuing through a lengthy and uncertain trial, both parties agreed to a settlement to provide guaranteed compensation to eligible shareholders.
What Was Alleged in the Lawsuit?
The core of the litigation focused on the company’s internal controls and the transparency of its financial reporting. Shareholders argued that the stock price was artificially inflated because the company did not properly account for certain risks. While the defendants deny any wrongdoing, the court has approved a settlement fund to resolve these claims and avoid further litigation costs.
Who Is Eligible for a Payment?
Eligibility for the OSHS settlement is strictly defined by the “Class Period.” To be considered a member of the settlement class, you must have purchased or acquired Old Second Bancorp common stock during a specific window of time. This timeframe is usually detailed in the formal notice mailed to potential class members.
Generally, you are eligible if you meet the following criteria:
- You purchased Old Second Bancorp (OSHS/OSBC) common stock between the start and end dates of the Class Period.
- You suffered a recognized loss according to the Plan of Allocation described in the settlement documents.
- You are not an officer or director of the company or an immediate family member of the defendants.
It is important to check your brokerage statements from the relevant years to confirm your transaction dates. Even if you no longer hold the stock, you may still be eligible for a payment if you sold it at a loss during or after the Class Period.
How to File Your Claim Form
Filing a claim is the only way to receive a payment from the settlement fund. If you do nothing, you will not receive any money, and you will give up your right to sue the defendants in the future regarding these specific legal issues.
Step 1: Gather Your Documentation
Before you begin the application, collect all documentation related to your Old Second Bancorp stock transactions. You will likely need brokerage statements, trade confirmations, or other official records that show the date of purchase, the number of shares, and the price paid. If you sold the shares, you will also need the sale dates and prices.
Step 2: Complete the Proof of Claim Form
The Proof of Claim and Release form is the central document required for your application. You can usually complete this form online through the official settlement administrator’s website or by mail. Ensure that every section is filled out accurately, as errors can delay your payment or result in a rejection of your claim.
Step 3: Submit by the Deadline
Class action settlements have strict deadlines. You must submit your claim form by the postmark date or the electronic submission deadline specified in the settlement notice. Late claims are rarely accepted, so it is best to file as soon as you have your documentation ready.
What to Expect After Filing
Once you submit your claim, the settlement administrator will review it to verify your eligibility and calculate your “Recognized Loss.” This calculation is based on a specific formula called the Plan of Allocation. It is important to understand that your payment will not be the full amount of your loss; rather, it will be a pro-rata share of the total settlement fund after legal fees and administrative costs are deducted.
The Waiting Period
Settlement distributions take time. After the filing deadline passes, the administrator must process thousands of claims. There may also be a final fairness hearing where the court officially approves the distribution. It is common for payments to be sent out several months, or even a year, after the filing deadline.
Notification of Deficiencies
If there is an issue with your claim, such as missing documentation or a discrepancy in share counts, the administrator will typically send you a deficiency notice. You will have a limited window of time to correct these issues, so keep a close eye on your mail and email for any correspondence from the settlement office.
Your Legal Rights and Options
As a member of the settlement class, you have several options beyond just filing a claim. Understanding these options is vital for making the best decision for your financial situation.
- File a Claim: This is the only way to receive a cash payment. By doing this, you agree to the terms of the settlement and release the defendants from future liability.
- Exclude Yourself: If you wish to sue the company individually, you must “opt out” or exclude yourself from the settlement. If you do this, you will not receive any money from this fund, but you retain your right to pursue your own legal action.
- Object to the Settlement: If you believe the settlement amount is too low or the legal fees are too high, you can file a formal objection with the court. You will still remain in the class unless you also exclude yourself.
- Do Nothing: If you do nothing, you get no money and you forfeit your right to sue the defendants in the future.
Conclusion and Next Steps
The OSHS settlement offers a path for shareholders to recover a portion of their investment losses. While the process requires some paperwork and patience, it is a valuable opportunity to hold the company accountable and receive compensation. Start by reviewing your financial records to confirm your eligibility and ensure you submit your claim before the deadline.
For those looking for more information on managing financial legalities or navigating other class action notices, exploring our articles on investor rights and consumer protection can provide further clarity. Taking proactive steps today ensures that you don’t miss out on the benefits you are entitled to under the law.