Plan of Allocation Consulting

Plans of allocation may be simple—say, when the allegations concern exchange-traded common stock, when there are few disclosures alleged to have been materially false and misleading during one class period, when there is one corrective disclosure, and when there is only one claim asserted. But to develop a plan of allocation that passes the fair, reasonable and adequate standard becomes more difficult when, as JNL’s principal has successfully done, each of the following complicating factors must be addressed:

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• The net settlement funds to be allocated are in the hundreds of millions or billions of dollars;

• The settlement funds have been provided by different defendants settling different claims that were asserted by the purchasers of different securities during different class periods;

• The claims asserted have different likelihood of success, such as those asserted under different provisions of the Securities Act and the Exchange Act, and, therefore, different allocation weighting;

• The claims are asserted by purchasers in the open market (e.g., on an exchange or over the counter) and by acquirors pursuant and traceable to registration statements and prospectuses in exchange for other securities (e.g., convertible, merger) or in public offerings;

• The claims are asserted by purchasers or acquirors of equity or debt securities, as well as by purchasers of non-traditional securities and writers and purchasers of put and call options;

• There are multiple allegedly misleading disclosures with statistically significant market reactions;

• There are multiple corrective disclosures; and

• The securities are denominated in currencies other than the U.S. dollar.

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