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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
CLAIMANT CLAIM FORM RECEIVER DISTRIBUTION AMOUNT USCS SOLD TRADING ELIGIBLE SECURITY PURCHASE FUND POTENTIAL CLAIMANTS PRICE EXCHANGE COMMISSION COMMON STOCK PRO RATA QUALIFIED CLAIMANTS DEFENDANTS IDENTITIES PROFITS BASIS TRADE DOCUMENTATION SALES NET SELLER TAXES PLAN REVIEW TRADING RECORDS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16612 / June 28, 2000
SEC v. One or More Unknown Purchasers of Call Options and Common Stock
of USCS International, Inc., 98 Civ 6327, S.D.N.Y.
DEADLINE FOR FILING PROOF OF CLAIM FORM BY PERSONS AND ENTITIES WHO
SOLD SECURITIES AND/OR CALL OPTIONS FOR THE SECURITIES OF USCS
INTERNATIONAL, INC. ON SEPTEMBER 2, 1998 IS EXTENDED TO JULY 31, 2000
In 1998, the Securities and Exchange Commission filed a civil action
in United States District Court for the Southern District of New York
alleging that the defendants, whose identities were unknown at the
time, had engaged in illegal insider trading in securities and options
for the securities of USCS International, Inc. Without admitting or
denying the allegations, the defendants identified themselves and
consented to the entry of Final Judgments which enjoined them from
future violations of certain Federal securities laws and which ordered
them to disgorge their alleged illegal trading profits. These profits,
which totaled approximately $364,000 plus interest ("Fund") are now
under the control of a Court-appointed Receiver who is responsible for
distributing them on a pro rata basis to qualified claimants. (See
Litigation Releases Nos. 15875 and 16044).
You may be eligible to receive a pro rata distribution from the Fund
(1) If you sold USCS common stock and/or USCS Oct30 call options on
trade date September 2, 1998 and;
(2) You timely file with the Receiver a Proof of Claim form, and
include all required information and all required documentation.
In determining the actual amount you may receive, the Receiver will
take into account both your purchases and your sales of the subject
securities on trade date September 2, 1998 in order to assure that you
were a "net seller" on that date. The amount available to pay claims
will be the amount of money in the Fund minus administration expenses
and taxes incurred by the Fund. As specified in the Plan, the
available distribution will be allocated on a percentage basis among
qualified claimants and will be allocated pro rata to the extent
claims exceed the available distribution. The Plan provides in part
that
The Receiver or his designee shall, with the assistance of the SEC,
review options and stock trading records to identify potential
claimants and shall mail to them a claim form and notice describing
the SEC's action and the amounts of their sales as reflected in the
trading records. The Receiver shall review each claim form and
determine the amount (if any) to be paid as follows If a claimant sold
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