Under the proposed Plan of Allocation (which is subject to the Court’s approval), your share of the Net Settlement Fund will depend on the investment in SunTrust Stock in your Plan account during the Class Period. Settlement Class Members who signed a severance agreement upon their separation from SunTrust releasing ERISA claims will not recover under the Settlement. Participants who signed a severance agreement releasing claims against SunTrust arising out of their employment will also be excluded from receiving a distribution, but their claims will be released by the Settlement to the extent they were not already released by such severance agreements. The share of the Net Settlement Fund to be distributed to members of the Settlement Class who did not sign a release will be determined according to the following formula:
A. Your Net Loss Is Calculated
Your Net Loss, for the purpose of the allocation methodology, is calculated as follows:
Net Loss = A + B - C - D, where, for each Settlement Class Member’s account:
||the dollar value, if any, of the balance invested in the Company Stock Fund at the close of business on the business day prior to the beginning of the Class Period;
||the dollar value, if any, of all acquisitions of units of the Company Stock Fund during the Class Period as of the time of purchase(s);
||the dollar value, if any, of all sales of units of the Company Stock Fund during the Class Period as of the time of the sale(s); and
||the dollar value, if any, of the balance invested in the Company Stock Fund at the close of business on the last day of the Class Period.
B. Your Net Loss Percentage Is Calculated
The Net Losses of all of the Settlement Class Members as calculated in Section A above will be totaled to yield the loss of the Plan as a whole over the Class Period (the “Plan’s Loss”). Your Net Loss Percentage will be determined by dividing your Net Loss by the Plan’s Loss.
C. Your Share of the Net Settlement Amount Is Calculated
Your Net Loss percentage will determine the dollar value of your share, if any, of the Net Settlement Fund. Your share will be your Net Loss Percentage multiplied by the Net Settlement Fund. If the dollar value of your share of the Net Settlement Fund is below $40.00 (the “De Minimis Amount”), you will not receive any payment. The share that would have been allocated to you will instead be added back into the Net Settlement Fund. Those who do receive a portion of the Net Settlement Fund will receive no less than the De Minimis Amount, or $40.00.
The Court will be asked to approve the Plan of Allocation, a copy of which is available on the Important Documents portion of this website. To the extent that Defendants were participants in any of the Plan at any time during the Class Period, they will be excluded from the Plan of Allocation. No Defendant is entitled to a share of the Settlement.
Your share of the Net Settlement Fund likely will be less than the decrease in the value of the SunTrust Stock held in your Plan account during the Class Period. You are not responsible for calculating the amount you may be entitled to receive under the Settlement. This calculation will be done as part of the implementation of the Settlement.
Do not worry if you do not have records concerning your Plan account. If you are entitled to a share of the Net Settlement Fund, you will receive a statement from the Plan’s record-keeper or the Settlement Administrator showing the amount of your share. If you have questions regarding the Settlement or the Plan of Allocation, please contact Class Counsel, who are listed on page 2 of the notice.