Frequently Asked Questions
- What is the Fair Fund?
- Why did I get a Notice?
- What is this all about?
- How will the Fair Fund be allocated among Eligible Claimants?
- Who should submit a claim?
- How do I submit a claim form?
- I am a broker. How do I obtain additional Notices and Proof of Claim Forms?
- Where can I find more information?
- What is the Fair Fund?
The Fair fund was established by the Court to distribute monies to investors harmed by Defendants' violations of antifraud provisions of the federal securities laws, the reporting provisions, record keeping and internal control provisions of the Exchange Act. Approximately $32 million is available for distribution to harmed investors.
Top - Why did I get a Notice?
You received a Notice and Claim Form because you or someone at your household may have purchased or otherwise acquired WellCare Health Plans, Inc. (“WCG”) common stock listed on a U.S. exchange (“Eligible Securities”) on or after August 11, 2004 through 10:59 a.m. Eastern Standard Time on October 24, 2007, inclusive (“Relevant Period”). Claimants who fit this criteria may be eligible for distribution from the Fair Fund that was established in the Securities and Exchange Commission enforcement actions against WellCare Health Plans, Inc.
Top - What is this all about?
Wellcare was ordered, and has paid, a total of $10,000,001 in disgorgement and civil penalties. See Wellcare’s Final Judgment.
On August 13, 2019, the Court entered an order establishing a Fair Fund for the monies paid by Wellcare and appointed Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund to fulfil the Fair Fund’s tax obligations. See the Court’s Order.
In a related action, the Commission filed a complaint, on January 9, 2012, against three former executives of Wellcare: Todd Farha (“Farha”), former Chief Executive Officer, Paul Behrens (“Behrens”), former Chief Financial Officer, and Thaddeus Bereday (“Bereday”), former General Counsel, for their role in the Wellcare scheme. See the Complaint.
Farha, Behrens, and Bereday were ordered to pay a collective total of $21,500,000 in disgorgement, prejudgment interest and civil penalties in their respective orders.
Top - How will the Fair Fund be allocated among Eligible Claimants?
The Net Available Funds shall be distributed to pay Eligible Claimants as provided under the terms of the Distribution Plan. If the Net Available Fund is greater than or equal to the aggregate Distribution Payments due Eligible Claimants, the Distribution Agent shall distribute to each Eligible Claimant his, her or its Recognized Loss. At no time shall an Eligible Claimant receive more than his, her or its Recognized Loss. If the aggregate Distribution Payments to all Eligible Claimants exceeds the Net Available Fund, the Net Available Fund shall be distributed on a pro-rata basis provided that an Eligible Claimant’s pro rata share based on their Recognized Loss entitles them to an amount equal to or greater than $10.00.
Top - Who should submit a claim?
If you purchased or otherwise acquired WellCare Health Plans, Inc. (“WCG”) common stock listed on a U.S. exchange on or after August 11, 2004 through 10:59 a.m. Eastern Standard Time on October 24, 2007, inclusive; and you are not an excluded party, you should submit a claim because you may be eligible for a distribution from the Fair Fund.
Top - How do I submit a claim form?
You may submit your completed and signed Proof of Claim Form online no later than 11:59 p.m. Eastern Time on June 04, 2022, by closely following the directions on the website www.wellcarefairfund.com under the “File Claim” tab. Alternatively, you may mail your completed and signed proof of claim form postmarked on or before June 04, 2022, addressed as follows:
WellCare Fair Fund
C/o KCC Class Action Services,
Distribution Agent
P.O. Box 990
Corte Madera, CA 94976-0990
Top - I am a broker. How do I obtain additional Notices and Proof of Claim Forms?
If, during the Relevant Period, you purchased or held WellCare Health Plans, Inc. common stock for the beneficial interest of a person or organization other than yourself, as soon as practically possible, you must either: (1) request additional copies of the Notice and Proof of Claim Form from the Fund Administrator, and, within fourteen (14) calendar days of receipt of such copies, send copies by first-class mail directly to beneficial owners; or (2) provide a list of the names and last known addresses of the beneficial owners (preferably in Excel format), in a secured (encrypted) format, to the Fund Administrator to notifications@kccllc.com. If you would like to send such information via secure FTP, please email notifications@kccllc.com for login instructions. You may also mail such information to the following address:
WellCare Fair Fund
C/o KCC Class Action Services,
Distribution Agent
P.O. Box 990
Corte Madera, CA 94976-0990
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If you choose to mail the Notice and Proof of Claim Form yourself, you may obtain from the Fund Administrator (without cost to you) a reasonable number of copies of these documents needed to complete the mailing. If you choose the second option, KCC Class Action Services will send a copy of the Notice and Proof of Claim Form to the persons and/or entities whose names and addresses you supply. All proofs of claim must be submitted by the Claim Filing Deadline.
Top - Where can I find more information?
To view the SEC Harmed Investor page, please use the following link:
https://www.sec.gov/divisions/enforce/claims/wellcare.htm
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