Frequently Asked Questions
1. What is this case about?
A. The Consolidated Amended Complaint (the "Complaint") alleges that during the Settlement Class Period Defendants publicly misrepresented PREOS's safety, efficacy, potential market size, and prospects for FDA approval. The Complaint alleges that these misstatements and omissions induced Settlement Class Members to buy NPS common stock at artificially inflated prices during the Settlement Class Period, and when the true facts came to light, Settlement Class Members were damaged because the value of NPS's stock plummeted.
2. Why did I receive the Notice?
A. You or someone in your family may have purchased NPS common stock between August 7, 2001, and May 2, 2006, inclusive, and may have been damaged thereby. The Court directed that this Notice be sent to Settlement Class Members because they have a right to know about a proposed settlement of the Litigation, and their options, before the Court decides whether to approve the settlement. If the Court approves the settlement, if and when the Court approves the settlement and the Court's Judgment becomes Final (as defined in 1.8 and 1.10 of the Stipulation), a Court-appointed administrator will make the payments to Settlement Class Members.
3. I received a Claim Packet. Can you please provide me with a list of my transaction history in NPS Pharmaceuticals Inc. common stock?
A. We do not have your transaction history for NPS Pharmaceuticals common stock. We have only been notified by either a bank, brokerage firm, other financial institution, or the transfer agent for NPS Pharmaceuticals, that you may be a Settlement Class Member. We do not have any of your financial records.
If for some reason you do not have your financial records, please contact your bank, broker or financial institution for records documenting your investments in NPS Pharmaceuticals, Inc.
Acceptable forms of supporting documentation include:
- Broker confirmation slips that list the security name, name and address of the purchaser or seller, type of transaction (purchase or sale), the date of the transaction, the number of shares or other securities, the price per share or security and the total amount of the transaction, AND/OR
- Periodic (monthly or quarterly) account statements that detail all activity within a specific period.
4. How do I know if I am an Eligible Claimant?
A. If you purchased or otherwise acquired the common stock of NPS Pharmaceuticals, Inc. between August 7, 2001, and May 2, 2006, inclusive, and who were damaged thereby.
5. What is the amount of the Settlement Fund?
A. NPS Pharmaceuticals has agreed to pay or cause to be paid Fifteen Million Dollars ($15,000,000) in cash.
6. What do I need to do to participate in the settlement?
A. If you purchased or otherwise acquired the common stock of NPS Pharmaceuticals, Inc. between August 7, 2001, and May 2, 2006, inclusive, and you are not excluded by the definition of the Settlement Class and you do not elect to exclude yourself from the Settlement Class, then you are a Settlement Class Member, and you will be bound by the proposed Settlement if the Court approves it, and by any judgment or determination of the Court affecting the Settlement Class.
If you are a Settlement Class Member, you must submit a Claim Form and supporting documentation to establish your entitlement to share in the Settlement, which must be postmarked no later than June 25, 2009. A Claim Form is included with the Notice, or you may download one from this website or contact the Claims Administrator to request that a Claim Form be mailed to you. You may also request a Claim Form by calling toll-free 1-866-396-6613. Copies of the Claim Form can also be downloaded from the Proof of Claim and Release page. Those who exclude themselves from the Settlement Class and those who do not submit timely and valid Claim Forms with adequate supporting documentation will not be entitled to share in the Settlement. Please retain all records of your ownership of, or transactions in NPS Pharmaceuticals common stock, as they may be needed to document your Claim.
7. What do I need to submit with my claim form?
A. You must list ALL of your transactions in NPS Pharmaceuticals, Inc. common stock during the Class Period (August 7, 2001, and May 2, 2006) on your Proof of Claim form and submit documentary evidence of each transaction that you list on your claim form. Acceptable forms of supporting documentation include:
- Broker confirmation slips that list the security name, name and address of the purchaser or seller, type of transaction (purchase or sale), the date of the transaction, the number of shares or other securities, the price per share or security and the total amount of the transaction, AND/OR
- Periodic (monthly or quarterly) account statements that detail all activity within a specific period.
8. How much money will I receive if I file a claim form?
A. Only those Settlement Class Members who purchased or otherwise acquired NPS Pharmaceuticals Inc. common stock during the Class Period AND WERE DAMAGED AS A RESULT OF SUCH PURCHASES OR ACQUISITIONS, will be eligible to share in the distribution of the Net Settlement Fund.
The amount of money that eligible claimants will receive depends on a number of factors, primarily (i) their "Recognized Claim" amount (which depends on the transactions made by the claimant in NPS Pharmaceuticals Inc. common stock during the Settlement Class Period) and (ii) the number or percentage of Settlement Class Members who submit valid Proofs of Claim. Accordingly, it is not possible to know eligible claimants' recovery amounts at this time.
9. How will my claim be calculated?
A. The Settlement Notice includes, starting on Page 7, the proposed "Plan of Allocation" which provides formulae explaining how each claimant's Recognized Claim will be calculated.
The objective of the Plan of Allocation is to equitably distribute the settlement proceeds to those Settlement Class Members who suffered economic losses as a result of the alleged fraud, as opposed to losses caused by market or industry factors or other non-fraud-related, Company-specific factors. The Plan of Allocation reflects Lead Plaintiff's damages expert's analysis undertaken to that end, including a review of publicly available information regarding NPS Pharmaceutical's Inc. and statistical analyses of the price movements of NPS Pharmaceutical's common stock and the price performance of relevant market and industry indices during the Settlement Class Period.
10. When will I receive my payment?
A. The Court will hold a hearing on June 18, 2009, to decide whether to finally approve the settlement. Even if the Court finally approves the settlement, there may be appeals. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. It also takes time for all the Proofs of Claim to be processed. Please be patient.
11. What if I do not want to be a part of this settlement? How do I exclude myself?
A. Each Settlement Class Member will be bound by all determinations and judgments in this lawsuit, including those concerning the settlement, whether favorable or unfavorable, unless such person or entity mails, by first-class mail (or its equivalent outside the U.S.), or otherwise delivers a written Request for Exclusion from the Settlement Class, addressed to:
NPS Pharmaceuticals, Inc. Securities Litigation
c/o The Garden City Group, Inc.
P.O. Box 9329
Dublin, OH 43017-4229
1-866-396-6613
The exclusion request must be received no later than May 28, 2009. You will not be able to exclude yourself from the Settlement Class after that date. Each Request for Exclusion must (i) state the name and address of the person or entity requesting exclusion; (ii) state that such person or entity "requests exclusion from the Settlement Class in in Re NPS Pharmaceuticals, Inc Securities Litigation, 2:06cv00570 PGC"; (iii) be signed by the person or entity requesting exclusion; (iv) provide a telephone number for that person or entity; and (v) provide the date(s), price(s), and number(s) of shares of all purchases, acquisitions, and sales of NPS Pharmaceuticals common stock during the Settlement Class Period. Requests for exclusion will not be valid if they are not received within the time stated above, unless the Court otherwise determines.
If you do not want to be part of the Settlement Class, you must follow these instructions for exclusion even if you have pending, or later file, another lawsuit, arbitration, or other proceeding relating to any Released Claims.
If a person or entity requests to be excluded from the Settlement Class, that person or entity will not receive any benefit provided for in the Stipulation.
12. What happens if I do not do anything?
A. If you do nothing, you will not be eligible to receive a payment from the settlement fund, but you will be bound by the terms of the settlement - including the release of claims against NPS Pharmaceuticals and others. Please refer to the Notice of Proposed Settlement for further information.
13. Who is the Claims Administrator?
A. The Garden City Group, Inc.
14. Where can I obtain additional information about the litigation?
A. You may obtain additional information about the litigation by following the links on the left side of this screen or calling the toll-free hotline at (866) 396-6613. Please do not contact the Court.
15. Where can I obtain a copy of the Settlement Notice and/or the Proof of Claim Form?
A. You can obtain a Notice and Proof of Claim Form by calling (866) 396-6613 or by following the links on the left side of this screen.
16. When must I submit my Proof of Claim Form?
A. Your Proof of Claim form must be sent to the Claims Administrator and postmarked no later than June 25, 2009.
17. Do I have to give my claim form to my broker (Financial Advisor) or can I send it in?
A. There is no requirement that you use a broker or other agent to submit a Proof of Claim. Unless you have authorized and directed your broker or agent to submit a Proof of Claim on your behalf, you should submit your claim yourself. The Proof of Claim requires information that should be readily available to you from your own financial records.
If you are not an institution filing electronically, you should mail your claim form directly to the Claims Administrator at the following address:
NPS Pharmaceuticals, Inc. Securities Litigation
c/o The Garden City Group, Inc.
P.O. Box 9329
Dublin, OH 43017-4229
1-866-396-6613
18. If I have further questions, can I submit my questions via telephone or email?
A. If you have questions which are not answered by this website, please contact us at the telephone number (866) 396-6613.
19. How will I know when my Proof of Claim form has been received by the Claims Administrator?
A. Within 45 days after receipt of your claim form, the Claims Administrator will mail you a postcard acknowledging receipt.
Please note that as we process claims, we will also notify you in writing if your claim is deficient or ineligible. Steps needed to cure your claim will be set forth in the correspondence sent to you.
20. If we are a financial institution that served as an advisor to numerous clients, can we file claim forms on their behalf? Can we group all our clients together using this method?
A. Provided that you are authorized to do so by your clients, and you provide us with copies of that authorization, then, yes, you may file on behalf of your clients who have so authorized you to do so. If you would like to file these claims together, you should file electronically. You may file electronically by following the instructions found be following the link to Electronic Filing on the left side of this screen.