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CASE STUDY 2
Direct CRT Class Action Claim Portfolio Monetization
Situation
The 2007 lawsuit alleges that Defendants and Co-Conspirators including firms such as Mitsubishi, Philips, Samsung, Hitachi, etc. conspired to raise and fix the prices of Cathode Ray Tubes (CRT) and certain finished products for over ten years, resulting in overcharges to direct purchasers of those CRTs and certain finished products containing CRTs. Settlements totaling $212mm were reached with the Defendants. Per the settlement, Direct Purchasers would receive their pro rata share of the Net Settlement Fund based on their purchases of devices with CRTs.
Haybeach Advantage & Value-Add
No Price Transparency. Purchases are directly negotiated with asset holder and no market exists to find pricing.
Haybeach has developed a reputation in the market to diligence these transactions quickly and effectively giving counterparties comfort we can close on deals in a timely manner. This seller was looking to close a transaction prior to year-end and sought monetization after realizing the payment wouldn’t happen in 2021.
Haybeach was able to develop a payment structure that gave the seller comfort that if distributions occurred quickly, they would not be penalized, and benefits Haybeach if payments takes longer than expected.
Outcome
On 3.31.22, Class counsel filed a Motion to Distribute Settlement Funds in line with our thesis. No objections have ben filed and a hearing is scheduled fore May 26, 2022 to approve. We expect our distribution to occur in July following a 30 day objection period.