1. Will future recoveries by the Receiver be distributed to only the plaintiff investors in the Receivership Action?
No. All investor claims approved by the Court will be eligible to participate in the distribution of proceeds generated through the efforts of the Receiver and his professionals.
2. How do I assert a claim for the money I invested in the Fund?
The claims procedure ("Claims Procedure Motion") that sets forth the specific form(s) and the process by which all Investor and Creditor claims are submitted was approved by the court on 6/17/2024. The Claims Procedure Motion and Order Approving the Claims Procedure Motion can be found under the “Important Documents” tab. Please read below regarding the claims process for investors' and creditors' claims.
Investor Claims
The Receiver will send notices to Investor Claimants, which shall include (i) cash invested into POA; (ii) cash paid out to the Investor Claimant by POA; and (iii) the amount of reinvested dividends, if any (the “Transaction History”), per the books and records of POA (the “Reconciliation Notice”), which will be sent to Investor Claimants in a commercially reasonable timeframe after the entry of this order. The form of Reconciliation Notice which was attached to the Claims Procedure Motion has been expressly approved by the Court. If any Investor Claimant has an objection to the accuracy of the Transaction History as determined by the Receiver (based on his review of the POA books and records) in the Reconciliation Notice, then they will have a twenty-one day period from the date such Reconciliation Notice is mailed to file an objection to the Reconciliation Notice. If an objection is timely filed by an Investor Claimant to the Reconciliation Notice, such objection must state with particularity the reasons why an objection is made. The Receiver and the Investor Claimant filing such an objection must attempt to resolve such objection, in good faith, by agreement; however, if an objection cannot be resolved by the Receiver and the Investor Claimant, it will be decided by the Court, with such determination being the final determination as to such Transaction History. If no objection is timely filed with respect to a Reconciliation Notice, the Reconciliation Notice will be the final, binding determination as to the Transaction History for such Investor Claimant. In the event that the Receiver obtains information that indicates that a previously sent Reconciliation Notice contains an inaccurate Transaction History, then the Receiver may amend such Reconciliation Notice to correct it (“Amended Reconciliation Notice”). If the Receiver sends an Investor Claimant an Amended Reconciliation Notice, then the objection process described above in this paragraph will be applicable with any deadlines to object running from the date that the Amended Reconciliation Notice is mailed.
Creditor / Other Claimants
Any Other Claimant (as defined in the Claims Procedure Motion) having a Claim against the Receiver or Receivership Estate based on a claim against POA arising on or before April 30, 2024 (the “General Claims”), shall submit a completed Claim Form and any accompanying documentation so as to be actually received by the Claims Agent on or before the deadline set forth in the Claims Notice (the “General Claims Bar Date”), which is October 16, 2024;
All Other Claims shall be submitted through the Claims Agent in writing:
i. via U.S. Mail, overnight delivery or hand delivery to the following address:
Pride of Austin Receivership Claims
c/o Stretto
410 Exchange, Ste. 100
Irvine, California 92602
ii. Or electronically by sending a completed Claim Form to: PrideofAustinClaims@Stretto.com
3. If I received a Reconciliation Notice and do not think that the Reconciliation Notice or the Transaction History attached to the Reconciliation Notice is accurate, how do I object?
Pursuant to the Order Granting Receiver’s Motion to Approve (I) Proposed Claims Verification Procedures, and (II) Claims Bar Date, must file an objection that states with particularity the reasons why you dispute the contents of the Reconciliation Notice and/or the Transaction History attached to the Reconciliation Notice. Any such objection must be filed on or before August 23, 2024. You may file an objection by emailing your objection and any supporting documentation to all of the following addresses with the subject line “Pride of Austin: Objection to Reconciliation Notice”: gmilligan@harneypartners.com, ewhite@harneypartners.com, trip.nix@hklaw.com, annmarie.jezisek@hklaw.com, and TeamPrideofAustin@stretto.com.
