Hanmi Financial Corp. $3,000,000 Securities Settlement

Will Gendron
Editor in Chief
Published
July 1, 2024 9:44 AM
Updated
July 24, 2024
Hanmi Financial Corp. $3,000,000 Securities Settlement
Settlement Open for Claims
Award:
$0.16 per share on average
Deadline:
August 7, 2024
SUBMIT CLAIM

Hanmi Financial Corporation has agreed to pay $3,000,000 to settle a class action lawsuit for alleged misrepresentations and omissions of material fact in various filings with the U.S. Securities and Exchange Commission or in other public statements to investors. This settlement aims to compensate investors who purchased publicly-traded Hanmi common stock during the period from August 9, 2018, through April 30, 2020.

Can I Claim an Award?

To be eligible for an award from the settlement, you must have purchased publicly-traded Hanmi common stock between August 9, 2018, and April 30, 2020. This period is referred to as the Settlement Class Period. If you fall within this category, you are considered a Settlement Class Member and may be entitled to a portion of the settlement fund.

Settlement Class Members include all persons or entities who purchased publicly-traded Hanmi common stock during the Settlement Class Period. However, there are specific exclusions. Those excluded from the Settlement Class are:

  • Defendants
  • Current and former officers, employees, consultants, and directors of Hanmi
  • Siblings, parents, children, spouses, and household members of any person excluded under the first two points
  • Any entities affiliated with, controlled by, or more than 5% owned by any person excluded under the first three points
  • The legal representatives, heirs, successors, or assigns of any person excluded under the first four points

What Awards Can Class Members Claim?

The amount each member receives will depend on several factors, including the number of claims filed, the dates of purchase and sale of Hanmi common stock, and the prices at which the stock was bought and sold.

To calculate the potential award, the Recognized Loss formula is used. This formula considers the inflation per share at the time of purchase and sale, as well as the purchase and sale prices. The Recognized Loss is then used to determine each claimant's pro-rata share of the Net Settlement Fund.

  • Shares purchased during the Settlement Class Period and sold during the same period: The Recognized Loss per share will be the lesser of the inflation per share upon purchase minus the inflation per share upon sale, or the purchase price per share minus the sales price per share.
  • Shares purchased during the Settlement Class Period and sold between May 1, 2020, and July 29, 2020: The Recognized Loss will be the lesser of the inflation per share upon purchase or the difference between the purchase price per share and the average closing price per share as of the date of sale.
  • Shares purchased during the Settlement Class Period and retained as of the close of trading on July 29, 2020: The Recognized Loss will be the lesser of the inflation per share upon purchase or the purchase price per share minus $9.39 per share.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim an award. Claimants must provide documentation for each purchase and sale of Hanmi common stock during the Settlement Class Period. Acceptable documentation includes stockbroker's confirmation slips, stockbroker's statements, or other documents evidencing the transactions.

  • Proof of each purchase and sale transaction during the Settlement Class Period
  • Proof demonstrating status as a beneficial owner of Hanmi common stock

How to Claim Your Award

To claim your award, you must complete and submit a Proof of Claim and Release Form. You can file a claim online by visiting file a claim online. Alternatively, you can mail the completed form to the Claims Administrator at the address provided below.

If you choose to mail your claim, ensure it is postmarked no later than August 7, 2024. The form must be accompanied by all required documentation to support your claim.

How do I Get Paid?

Once your claim is approved, you will receive your payment from the Net Settlement Fund. The payment will be distributed based on the Recognized Loss formula and the number of valid claims submitted. Payments will be made by check and mailed to the address provided in your claim form.

$3,000,000 Settlement Fund Breakdown

The total settlement amount is $3,000,000. This amount will be used to pay claims of investors who purchased publicly-traded Hanmi common stock during the Settlement Class Period. Before distribution, the settlement fund will be reduced by attorneys' fees, litigation expenses, administrative costs, and any taxes on interest earned by the fund.

Lead Counsel intends to ask the Court for attorneys' fees of up to one-third of the Settlement Fund, reimbursement of litigation expenses not exceeding $80,000, and an award to the Plaintiff not exceeding $10,000. These amounts will be deducted from the Settlement Fund before distribution to Settlement Class Members.

Important Dates

  • Deadline to File a Claim: August 7, 2024
  • Exclusion Deadline: August 16, 2024
  • Objection Deadline: August 16, 2024
  • Settlement Hearing: September 6, 2024

Why is There a Class Action Settlement?

The class action settlement was reached to resolve allegations that Hanmi Financial Corporation made false or misleading statements in its filings with the U.S. Securities and Exchange Commission and other public statements to investors. These statements allegedly concealed significant financial issues, including over $40 million in nonperforming loans and over $25 million in loan losses.

The settlement avoids the risks and costs associated with continued litigation. By agreeing to the settlement, Hanmi Financial Corporation does not admit any wrongdoing or liability. The settlement provides a fair and reasonable resolution for all parties involved.

Notice Letter

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Status
Open for Claims
Settlement Amount
$3,000,000
Award
$0.16 per share on average
Is Proof Required?
Proof Required
Proof Required
Days Remaining to file Claim
14
Claim Deadline
August 7, 2024
Fairness Hearing
September 6, 2024
Final Approval Hearing
Case Number
2:20-cv-02844-FLA-JC
Case Title
Killyoung Oh v. Hanmi Financial Corporation, et al.
State
Court
Jurisdiction
Claims Administrator
Strategic Claims Services 600 N. Jackson St., Ste. 205 P.O. Box 230 Media, PA 19063 Tel.: 866-274-4004 Fax: 610-565-7985 info@strategicclaims.net
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