Please be aware that there are two Abat class action settlements. For this one, you did not need to submit a claim form to participate and the distribution of payments has already occurred. For the other settlement, you must submit a claim form to receive a payment.
In September 2010, a settlement was reached to partially end a proposed class action brought by Janice Abat and other consumers against Money Management International, Inc. (“MMI”) and others (“Abat Case”). Your rights may be affected by a lawsuit pending in the U.S. District Court for the Central District of California if you paid fees or contributions to an MMI debt management plan between December 28, 2002 and November 4, 2010. You are not being sued.
The Abat Case only seeks restitution of your fees and contributions, not your payments to creditors. Chase Bank U.S.A., N.A., (“Chase”) also was sued in the Abat Case; certain claims against Chase are released in the partial settlement, but others are not. Chase denies all the claims asserted against it.
Please also be advised that MMI agreed to settle the claims by paying the estimated 415,000 Class Members $6.5 million. Class Members who did not exclude themselves will automatically receive a pro rata share and will be deemed to have released MMI of all claims, and to have released Chase relating to any payments it received through a DMP while it was administered by MMI.
What Are My Options?
- EXCLUDE YOURSELF. The deadline to exclude yourself from the Settlement was February 17, 2011.
- OBJECT. The deadline to object to the Settlement was February 17, 2011.
- DO NOTHING. Give up your rights to sue MMI about the legal claims in this case and thereby accept the terms of this Settlement.
Please consult the Notice for more details on your options.
There was a fairness and adequacy hearing on February 28, 2011 before the Hon. Cormac J. Carney. After this hearing, the Court decided objections, approved the settlements as fair, reasonable, adequate and in the best interests of the class, and approved Plaintiffs’ counsel’s fees, costs and the class representatives enhancements.