Gormley v. magicJack Vocaltec Ltd .et al
MagicJack Securities Litigation
Case No: 1:16-cv-01869

Frequently Asked Questions

 

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  • You or someone in your family may have sold or divested the publicly traded securities of magicJack listed above between November 12, 2013 and March 12, 2014.

    The Court ordered that the Notice be sent to you because you have a right to know about a proposed settlement of a class action lawsuit, and about all of your options, before the Court decides whether to approve the settlement. If the Court approves it and after any objections or appeals are resolved, the Claims Administrator appointed by the Court will make the payments that the settlement allows.

    This package explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

    The Court in charge of the case is the United States District Court for the Southern District of New York, and the case is known as Gormley v. magicJack Vocaltec Ltd. et al, 1:16-cv-01869. The person who sued is called the Lead Plaintiff, and the companies and the individuals they sued, magicJack, Gerald Vento, and Jose Gordo, are called Defendants. Defendants have agreed to settle the claims made in this case.

  • Lead Plaintiff has filed this lawsuit alleging that magicJack and its former and current executive officers violated the federal securities laws by making false and misleading statements and/or omitting statements of material fact regarding magicJack’s business by telling investors that magicJack’s fourth quarter and full year revenue for fiscal year 2013 would be less than previously announced.

    The Defendants filed a motion to dismiss the Action, which the Court denied on November 14, 2016.   Defendants deny each and all of the claims and contentions of wrongdoing alleged by Lead Plaintiff in the litigation. They contend that they did not make any materially false or misleading statements, they disclosed all material information required to be disclosed, and any alleged misstatements or omissions were not made with the requisite intent or knowledge of wrongdoing. Defendants also contend that any losses suffered by members of the Class were not caused by any false or misleading statements by Defendants and/or were caused by other events.

  • In a class action, one or more people or entities called class representatives (in this case the court-appointed Lead Plaintiff Samuel Saad Revocable Trust) to sue on behalf of people who have similar claims.  Here, all these people are called a Class or Class Members.  One court resolves the issues for all the Class Members, except for those who exclude themselves from the Class.  Judge Victor Marrero is in charge of this class action.

  • The Court did not decide in favor of the Lead Plaintiff or Defendants.  Instead, both sides agreed to a settlement. That way, they avoid the cost of a litigation, and eligible Class Members who make valid claims will get compensation. Lead Plaintiff and its attorneys think the settlement is best for all Class Members.

  • To see if you will get money from this settlement, you first have to determine if you are a Class Member

  • The Class includes all persons who sold or otherwise divested publicly traded securities of magicJack between November 12, 2013 and March 12, 2014, except those persons or entities that are excluded, as described below.

  • You are not a Class Member if you are: 

    • A Defendant; 
    • A director, officer, or employee of magicJack during the Class Period; 
    • A member of the immediate family, trust, company, entity or affiliate controlled or owned by any excluded party.

    If you purchased magicJack securities between November 12, 2013 and March 12, 2014, that alone does not make you a Class Member.  You are a Class Member only if you sold or divested magicJack securities, as described in the Notice.  

  • If you are still not sure whether you are included, you can ask for free help.  You can contact the Claims Administrator toll-free at 1-844-853-3425, or you can fill out and return the Proof of Claim form enclosed with the Notice package, to see if you qualify.

  • Defendants have agreed to pay a total of $3,650,000 in cash. 

    The Settlement Fund will be divided among all eligible Class Members who send in valid claim forms, after payment of Court-approved attorneys’ fees and expenses and the costs of claims administration, including the costs of printing and mailing the Notice and the cost of publishing notice (the “Net Settlement Fund”).

  • To qualify for payment, you must be an eligible Class Member and you must send in a claim form. A claim form is enclosed with the Notice.  Read the instructions carefully, fill out the form, include all the documents the form asks for, sign it, and mail it in the enclosed envelope postmarked no later than March 19, 2018.

  • The Court will hold a hearing on January 19, 2018, to decide whether to approve the settlement.  If Judge Marrero approves the class action settlement, there may be appeals.  It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps several years. Everyone who sends in a claim form will be informed of the determination with respect to their claim. Please be patient.

  • Unless you exclude yourself, you are staying in the Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit against the Defendants about the same legal issues in this case. It also means that all of the Court’s Order will apply to you and legally bind you and you will release your claims in this case against the Defendants. The terms of the release are included in the claim form. 

  • If you do not want a payment from this settlement, but you want to keep the right to sue or continue to sue any of the Defendants on your own about the same legal issues in this case, then you must take steps to get out of the Class. This is called excluding yourself or is sometimes referred to as opting out of the Class. 

  • To exclude yourself form the Settlement Class, you must send a letter by mail stating that you want to be excluded from Gormley v. magicJack Vocaltec Ltd. et al, 1:16-cv-01869. You must include your name, address, telephone number, signature, the number and type of magicJack securities you sold or divested between November 12, 2013 and March 12, 2014, and the dates of such sales. You must mail your exclusion request postmarked no later than December 29, 2017 to:

     
    Gormley v. magicJack Vocaltec Ltd. et al,
    EXCLUSIONS
    c/o JND Legal Administration
    PO Box 6847
    Broomfield, CO 80021

     

    You cannot exclude yourself by phone or by e-mail. If you ask to be excluded, you are not eligible to get any settlement payment, and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit.

  • No. Unless you exclude yourself, you give up any right to sue the Defendants for the claims resolved by the class action settlement. If you have a pending lawsuit against any of the Defendants, speak to your lawyer in that case immediately.  Remember the exclusion deadline is December 29, 2017.

  • No. If you exclude yourself, do not send in a claim form. But, you may sue, continue to sue, or be part of a different lawsuit against any of the Defendants.

  • The Court asked the law firm Levi & Korsinsky, LLP to represent you and other Class Members.  

    These lawyers are called Lead Counsel. You will not be charged for the services of these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

  • Lead Plaintiff’s Counsel will ask the Court for attorneys’ fees of 33% of the Settlement Fund and for reimbursement of their out-of-pocket litigation expenses up to $90,000, that were advanced in connection with the Action. Such sums as may be approved by the Court will be paid from the Settlement Fund.  Class Members are not personally liable for any such fees or expenses.   

    The attorneys’ fees and expenses requested will be the only payment to Lead Counsel for their efforts in achieving this settlement and for the risk in undertaking this representation on a wholly contingent basis. To date, Lead Counsel has not been paid for their services for conducting this litigation on behalf of the Lead Plaintiff and Class nor for their substantial out-of-pocket expenses. The fees requested will compensate Lead Counsel for their work in achieving the Settlement Fund and is well within the range of fees awarded to class counsel under similar circumstances in other cases of this type. The Court may award less than this amount.   

    Lead Counsel will also request reimbursement of attorneys’ fees and expenses for administration of the settlement including costs associated with notice and the fees and expenses of the claims administrator. Those amounts will be requested before distribution of the Net Settlement Fund to Class Members. Again, such sums as may be approved by the Court will be paid from the Settlement Fund.   

    Lead Counsel will also request the Court to award Plaintiffs James Gormley and Samuel Saad Revocable Trust an incentive award of $5,000 each as a reward for their active participation in the Action

  • If you are a Settlement Class Member, you can object to the settlement if you do not like any part of it. You can give reasons why you think the Court should not approve it. The Court will consider your views. To object, you must send a letter saying that you object to the settlement in Gormley v. magicJack Vocaltec Ltd. et al, 1:16-cv-01869. Be sure to include your name, address, telephone number, signature, the magicJack securities sold between November 12, 2013 and March 12, 2014, and the reasons you object to the settlement. Any objection to the settlement must be mailed or delivered such that it is received by the following no later than December 29, 2017.  


    Nicholas I. Porritt, Esq.
    Levi & Korsinsky LLP
    1101 30th Street, N.W., Suite 115
    Washington, D.C. 20007
     

    Lead Counsel will then immediately provide to Defendants’ Counsel any such objection.

  • Objecting is simply telling the Court that you do not like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you. 

  • The Court will hold a hearing to decide whether to approve the settlement.  You may attend and you may ask to speak, but you do not have to.

  • The Court will hold a fairness hearing at 1:30 p.m., on January 19, 2018, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 11B, New York, New York 10007. At this hearing the Court will consider whether the settlement of the Action is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Marrero will listen to people who have asked to speak at the hearing. The Court will also consider how much to pay to Lead Counsel.  The Court may decide these issues at the hearing or take them under consideration.  We do not know how long these decisions will take. 

  • No. Lead Counsel will answer questions Judge Marrero may have. But, you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary. 

  • You may ask the Court for permission to speak at the Settlement Hearing.  To do so, you must send a letter saying that it is your intention to appear in Gormley v. magicJack Vocaltec Ltd. et al, 1:16cv-01869. Be sure to include your name, address, telephone number, signature, and the number and type of magicJack securities sold between November 12, 2013 and March 12, 2014.  Your notice of intention to appear must be received no later than December 29, 2017, by Lead Counsel at the address listed in question 18 of the Notice.  You cannot speak at the hearing if you exclude yourself from the Class.

  • If you do nothing, you will get no money from this Settlement. But, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Defendants about the same legal issues in this case. 

  • The Notice summarizes the proposed settlement. More details are in the Stipulation and Agreement of Class Settlement dated as of September 20, 2017. You can get a copy of the Stipulation or more information about the Settlement by visiting www.magicjacksecuritieslitigation.com 
     

    You can also contact the Claims Administrator: 

     

    Gormley v. magicJack Vocaltec Ltd. et al,
    c/o JND Legal Administration
    PO Box 6847
    Broomfield, CO 80021
     
    Or Lead Counsel

     

    Nicholas I. Porritt, Esq. 
    Levi & Korsinsky, LLP
    1101 30th Street, N.W., Suite 115
    Washington, D.C. 20007
     
    You can also obtain a copy from the Clerk’s Office during regular business hours:

     

    Clerk of Court 
    U.S. Courthouse
    500 Pearl Street
    New York, New York 10007

For More Information

Visit this website often to get the most up-to-date information.

write

MagicJack Securities Litigation
c/o JND Legal Administration
P.O. Box 6847
Broomfield, CO 80021