(NEW YORK CITY) A federal judge has granted preliminary approval to an approximately $16.96 million cash settlement achieved by Lead Plaintiffs Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund with defendants ITT Educational Services, Inc., and two of its officers, Daniel M. Fitzpatrick and Kevin M. Modany.
The proposed settlement approved by Judge J. Paul Oetken, of the United States District Court for the Southern District of New York, on Monday, Nov. 23, resolves securities fraud claims asserted under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by the Plumbers and Pipefitters National Fund and Metropolitan Water Retirement Fund against the defendants for alleged material misrepresentations and omissions concerning the company's liabilities under certain risk-sharing agreements it had entered into with third-party student enders of ITT student loans.
The proposed $16,962,500 cash settlement will benefit a putative class of persons and entities who purchased or otherwise acquired ITT Educational Services, Inc., common stock between April 24, 2008, and Feb. 25, 2013. In the order issued on Nov. 23, Judge Oetken also gave authorization for the class notice to be issued to class members.
A court hearing will be held on March 8, 2016, to determine whether the settlement should be given final approval and to hear any objections to the settlement or to a request by Lead Counsel, Cohen Milstein Sellers & Toll PLLC, for attorneys' fees and expenses.
Lead Plaintiffs and the Class are represented by Carol V. Gilden, S. Douglas Bunch, Elizabeth Aniskevich and Times Wang, all of Cohen Milstein. More information about the settlement, including the notice, proof of claim form, and settlement agreement, will be posted in the coming weeks at www.ITTSecuritiesSettlement.com.