UPDATE 6/10/11; FINAL DISTRIBUTION

On December 17, 2009, the court approved a WARN Class settlement for the former employees of First Magnus Financial Corporation.

The second and FINAL settlement checks were mailed to members of the WARN Class on June 9, 2011. This final distribution is the result of recoveries by the FMFC Litigation Trustee from his litigation against the Insiders. The net recovery to the WARN class is approximately $1.125 Million (from which attorneys' fees, costs, and taxes was deducted). Class members will again have six months from the date of issuance of the settlement checks to deposit or negotiate them before the funds revert to the FMFC Estate to pay other creditor claims.

In August 2007, Outten & Golden filed suit on behalf of former First Magnus employees in the U.S. Bankruptcy Court for the District of Arizona seeking to recover 60 days wages and benefits. We contend First Magnus violated the Worker Adjustment and Retraining Notification Act (the WARN Act) when terminating its employees on or about August 16, 2007. Outten & Golden actively litigated against both First Magnus Financial Corp. and First Magnus Capital, Inc., in their respective bankruptcy proceedings in Tucson and Phoenix, and in the United States Court of Appeals for the Ninth Circuit. If you worked at one of the qualifying locations (see chart below), you may be eligible and should have received notice of the settlement by first class mail. If you have changed your mailing address over the past two years, please call or email us your current mailing address immediately. Our contact information is below.

LIST OF QUALIFYING LOCATIONS

The initial settlement distribution, of $2.6 million, was mailed to the class on January 20, 2010. Class members had six months from the date of issuance of the settlement checks to deposit or negotiate their checks before the funds reverted to the estate to pay other creditor claims.

We also understand that the FMFC Liquidation Trustee will be making a further distribution to the employees on their outstanding wage claims as a result of recoveries from the insiders litigation. We do not know the amount or have information regarding any future distributions. Our office is not representing the employees in their claims for wages (only WARN).

To contact us regarding this matter, please call 1-877 4-OUTTEN and ask for René Roupinian or email her.

Change of address and/or telephone

To update your address and telephone number, please contact us at:
OUTTEN & GOLDEN LLP
3 Park Avenue, 29th Floor
New York, New York 10016
Toll Free 1-877-4-OUTTEN
Telephone: 212-245-1000
Facsimile: 212-977-4005
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