Frequently Asked Questions

1. Why did I receive the Settlement Notice?

The Court caused the Notice to be sent to you because our records indicate that you may be a Class Member. The Settlement Class (whose members are “Settlement Class Members”) includes: “All participants in the Plan and the beneficiaries of such participants as of the date of the November 24, 2020, ESOP Transaction (“ESOP Transaction”) or any time thereafter, whether or not such participants or beneficiaries were vested.”

If you fall within the definition of the Settlement Class, you have a right to know about the Settlement and about all of the options available to you before the Court decides whether to give its final approval to the Settlement. If the Court approves the Settlement, and after any objections and appeals are resolved, the Net Settlement Amount will be allocated among Class Members according to a Court-approved Plan of Allocation.

2. What is the lawsuit about?

The case is called Bonds v. Heeter, et al., Case No. 2:23-cv-12045-MAG-DRG (E.D. Mich.) (the “Class Action” or “Lawsuit”). It has been pending since August 11, 2023. The Court supervising the case is the United States District Court for the Eastern District of Michigan. The individual who brought this lawsuit is called the Class Representative, and the persons that were sued are called the Defendants. The Class Representative—Richard Bonds—was a participant in the Plan. Defendants are Marianna F. Heeter, Administrator of the Estate Richard A. Heeter, Capital Trustees, LLC, Peter F. Shields, Paul J. Lanzon II, Peter F. Shields Revocable Living Trust Dated August 12, 1983, as amended, and Paul J. Lanzon II Declaration of Trust Dated March 31, 1999.

In the Lawsuit, the Class Representative claims that the Defendants caused the Plan to pay more than fair market value for SAC stock. Defendants deny that they violated any law or duty owed to the Plan or its participants.

For additional information about the claims in the Lawsuit, including a copy of the operative Amended Complaint, are available on the Important Documents page.

3. Why is there a settlement?

Following negotiations between Class Counsel and Counsel for Defendants, a settlement has been reached. If the Settlement is approved, a Qualified Settlement Fund of $1,800,000.00 will be established to resolve the claims against Defendants in the Lawsuit as part of the Settlement. The “Settlement Amount” is $1,800,000.00.00 plus any interest earned by the Qualified Settlement Fund minus all Court-approved: (a) attorneys’ fees and costs; (b) administrative expenses; (c) Service Award; (d) taxes; and (e) Independent Fiduciary fees and expenses.

The amount remaining after those deductions is the “Net Settlement Amount” and will be allocated to Class Members according to a Plan of Allocation to be approved by the Court and further described below in Question 5.

The Court has not reached a final decision as to the Plaintiff’s claims. Instead, the Plaintiff and Defendants have agreed to the Settlement. The Settlement is the product of extensive negotiations between Plaintiff, Defendants, and their respective counsel. The parties to the Settlement have taken into account the uncertainty, risks, and costs of litigation and have concluded that it is desirable to settle on the terms and conditions set forth in the Settlement Agreement. Plaintiff and Class Counsel believe that the Settlement is best for the Settlement Class. Nothing in the Settlement Agreement is an admission or concession on Defendants’ part of any fault or liability whatsoever. They have entered into the Settlement Agreement to avoid the uncertainty, expense, and burden of additional litigation.

4. What does the Settlement provide?

Under the Settlement, Defendants or their insurers will pay $1,800,000.00 into a Qualified Settlement Fund to resolve Plaintiff’s claims against Defendants. The Net Settlement Amount (after deduction of any Court-approved attorneys’ fees and costs, Service Award, administrative expenses, taxes, and Independent Fiduciary fees and expenses) will be allocated to Settlement Class Members according to a Plan of Allocation to be approved by the Court (as explained further in Question 5, below).

All Class Members and anyone claiming through them will fully release the Defendants and the Released Parties from certain Released Claims, as defined in the Settlement Agreement. The Released Parties include each Defendant and certain related parties as outlined in the Settlement Agreement. The Released Claims include any claims against any of the Released Parties with respect to the investment in the stock of SAC by or for the benefit of the Plan and any claims related to the allegations set forth in the Amended Complaint.

This is only a summary of the Released Claims and is not a binding description. The governing releases are found within Article 4 of the Settlement Agreement.

5. How much will my distribution be?

The amount, if any, that will be allocated to you will be based upon records provided by SAC. Calculations regarding individual distributions will be performed by the Plan recordkeeper, whose determinations will be final and binding, pursuant to the Court-approved Plan of Allocation.

To receive a distribution from the Net Settlement Amount, you must be a “Settlement Class Member” as described in Question 1.

There are 702 Settlement Class Members according to preliminary review of Plan records. Pursuant to the proposed Plan of Allocation, the Net Settlement Amount will be divided pro rata among Settlement Class Members who were vested in the Plan. Each Settlement Class Member will have the opportunity to receive a share of the Net Settlement Amount (outlined in the Plan of Allocation) based on the amount of the stock allocated to their Plan accounts relative to other Class Members as of December 31, 2024. Here is an illustrative example of the proposed Plan of Allocation:

A more complete description regarding the details of the Plan of Allocation can be found in the Settlement Agreement.

6. How can I receive my distribution?

For Class Members who have an active ESOP account, your portion of the Settlement will be deposited in your ESOP cash account and will be subject to the terms of the Plan.

For Class Members who do not have an active ESOP account, and are not in pay status, an Election Notice is enclosed with the Notice and explains the steps necessary to receive your share of the Net Settlement Amount via check or direct rollover to an individual retirement account or qualified employer plan. You may also obtain the Election Form here or by calling the Settlement Administrator at (833) 647-9010. Election Forms should be submitted prior to March 17, 2026. Settlement payments distributed via direct rollover will not be subject to automatic withholdings.

If you do not have an active ESOP account, and are not in pay status, and you do not return an Election Form, what happens with your share of the Settlement will depend on how much you are entitled to.

• If your share of the Settlement is $1,000 or less, the Plan recordkeeper will issue you a check and based on your last known address.

• If your share of the Settlement is greater than $1,000 but less than or equal to $7,000, your allocable portion of the Settlement will be rolled over by the Plan recordkeeper into an individual retirement account at Inspira Financial, LLC in your name and Inspira will send a welcome letter to you with information on how to access the account.

• If your share of the Settlement is greater than $7,000, the Plan recordkeeper and/or Plan administrator will try to locate you; if efforts to locate you are unsuccessful, your allocable portion of the Settlement will be forfeited by you and reallocated to Class Members with an active ESOP account.

• If you received notice, you do not have an active ESOP account, and you ARE in pay status, your allocable portion of the Settlement will be paid pursuant to the election the plan recordkeeper has on file.

Since any checks will be sent by mail, it is important to notify the Settlement Administrator of any changes to your mailing address. You may also notify Class Counsel (identified in Question 9, below) of any changes to your mailing address.

Payments made directly to Class Members by check are subject to automatic tax withholding and tax reporting, as determined by the Plan recordkeeper. Any tax withheld by the Plan recordkeeper may not constitute all tax that you may owe in connection with your settlement payment. You will be responsible for determining and paying any tax that is due but was not automatically withheld in connection with your settlement payment.

If you submit an Election Notice but your requested rollover is not effectuated for any reason (for example, because your Election Form was submitted too late, the information that you provided was not sufficient, or the financial institution that you designated did not accept the rollover), the Plan recordkeeper will treat you as though you did not return an Election Notice and your share of the Settlement will be distributed to you as described above.

7. When will I receive my distribution?

The timing of the distribution of the Net Settlement Amount is conditioned on several matters, including the Court’s final approval of the Settlement in this Action and any approval becoming final and no longer subject to any appeal in any court. An appeal of the final approval order may take several years. If the Settlement is approved by the Court and there are no appeals, the Settlement distribution likely will occur within approximately four months of the Court’s Final Approval Order in this Lawsuit, unless there are unforeseen circumstances. There will be no payments under the Settlement if the Settlement Agreement is terminated.

8. Can I exclude myself from the Settlement?

No. The Class has been certified for Settlement purposes under Federal Rule of Civil Procedure 23(b)(1). Therefore, as a Settlement Class Member, you are bound by the Settlement (if it receives final Court approval) and any judgments or orders that are entered in the Lawsuit. If you wish to object to any part of the Settlement, you may file an objection with the Clerk of the Court and mail to the Settlement Administrator about why you object to the Settlement, as discussed below in Question 11.

9. Do I have a lawyer in the case?

The Court has appointed the law firms of Bailey & Glasser LLP and Varnum LLP as Class Counsel in the Lawsuit. If you want to be represented by your own lawyer, you may hire one at your own expense.

10. How will the lawyers be paid?

Class Counsel have devoted hundreds of hours to investigating the facts, prosecuting the Lawsuit, reviewing documents obtained from Defendants and third parties, and negotiating the Settlement. During that time, they also have advanced costs necessary to pursue the case. Class Counsel took the risk of litigation and have not been paid for any of their time or for any of these costs throughout the time this Lawsuit has been pending. Class Counsel will apply to the Court for payment of attorneys’ fees for their work in the case and the litigation costs advanced. The amount of fees that Class Counsel will request will not exceed one-third of the Settlement Amount and reimbursable costs and expenses. In addition, Class Counsel will seek to recover administrative expenses associated with the Settlement and request a Service Award of up to $10,000.00 for the Class Representative. Any attorneys’ fees and costs, Service Award, and administrative expenses awarded by the Court will be paid or reimbursed from the Qualified Settlement Fund. An Independent Fiduciary selected and engaged by Defendants and approved by Plaintiff will review the Settlement on behalf of the Plan and if the Independent Fiduciary deems it appropriate, the Independent Fiduciary will issue a written opinion approving the settlement terms and agreeing to the release on behalf of the Plan. The fees associated with the Independent Fiduciary will also come from the Qualified Settlement Fund. Any taxes or reserves to pay taxes will be deducted from the Qualified Settlement Fund.

Class Counsel will file a motion for an award of attorneys’ fees and costs, Service Award, and administrative expenses, prior to the objection deadline. This motion will be considered at the Fairness Hearing. Class Counsel will limit their application for attorneys’ fees to not more than one-third of the Settlement Amount. In addition, Class Counsel will seek to recover reimbursable costs and expenses, administrative expenses associated with the Settlement, as well as a Service Award for the Class Representative. The Court will determine the amount of fees, costs, service award, and administrative expenses that will be awarded, if any.

A full and formal application for attorneys’ fees and costs, Service Award, and administrative expenses will be filed with the Court on or before February 20, 2026. All papers filed in this Class Action, including Class Counsel’s motion for attorneys’ fees and costs, Service Award, and administrative expenses, will be available for review on the Important Documents page and via the Public Access to Court Electronic Records System (PACER) at http://www.pacer.gov, or by appearing in person during regular business hours at the Office of the Clerk of the United States District Court for the Eastern District of Michigan, 231 W. Lafayette Blvd., Room 599 Detroit, MI 48226.

11. How do I tell the Court if I don’t like the settlement?

If you are a Settlement Class Member, you can object to the Settlement by mailing to the Settlement Administrator and filing with the Court a written objection explaining why you object and enclosing any supporting documents. Your written objection must: clearly identify the case name and number: Bonds v. Heeter, et al., Case No. 2:23-cv-12045-MAG-DRG (E.D. Mich.); (2) include your full name, current address, and telephone number; (3) describe the position you wish to assert, including the factual and legal grounds for the position; (4) include a statement of whether the objection applies only to the objector, to a specific subset of Class Members, or to the entire Settlement Class (5) provide copies of all documents that you wish to submit in support of your position; (6) provide the name(s), address(es) and phone number(s) of any attorney(s) representing you; (7) include your signature; and (8) identify if you intend to appear at the Fairness Hearing and the name of your counsel who will appear at the Fairness Hearing for you, if you have counsel.

Your written objection and supporting documents must be filed with the Court and submitted to the Settlement Administrator by U.S. Mail or email at least 21 days prior to Fairness Hearing to be considered. The written objection to the Settlement Administrator must be mailed or emailed to the address below. The written objection with the Court must be mailed or hand delivered to the address below.

Class Counsel and Defense Counsel will have an opportunity to respond to your objection.

12. When and where will the court decide whether to approve the Settlement?

The Court will hold a Fairness Hearing at 1:00 p.m. on April 7, 2026, at United States District Court for the Eastern District of Michigan, Theodore Levin U.S. Courthouse, 231 W. Lafayette Blvd., Detroit, MI 48226, in Courtroom 853. At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court also will consider the motion for Attorneys’ Fees and Costs, Service Award, and Administrative Expenses. If there are objections, the Court will consider them then. You do not have to appear at the Fairness Hearing in order to have your objection considered by the Court. Please note that if the Fairness Hearing is rescheduled, or if it is held by video conference or telephone, a notice will be posted on this website.

13. Do I have to attend the fairness hearing?

No, but you are welcome to come at your own expense. You may also make an appearance through an attorney at your own expense. If you send an objection, you do not have to come to the Court to talk about it. As long as you filed and mailed your written objection on time, the Court will consider it.

14. May I speak at the fairness hearing?

Yes. If you wish to attend and speak at the Fairness Hearing, you must comply with the requirements for making an objection (described above in Question 11, above) and identify in your objection that you intend to appear and wish to speak at the Fairness Hearing.

15. What happens if I do nothing at all?

If you are a “Settlement Class Member” as described on Question 1, and you do nothing, what happens with your portion of the Settlement depends on whether you have an active ESOP account or not, and if you do not, how much your share of the Settlement is, as described in Question 6 above.

16. How do I get more information?

This website and the Notice are a summary of the Settlement. If you have questions regarding the Settlement, you may view the Settlement Agreement. The Settlement Agreement, along with other case-related documents, is on the Important Documents page . You may also contact the Settlement Administrator, by calling (833) 647-9010, or writing to:

Bonds v. Heeter, et al.
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
info@FlatRockESOPSettlement.com

All papers filed in this lawsuit are also available for review via the Public Access to Court Electronic Records System (PACER), at http://www.pacer.gov, and can be reviewed in person during regular business hours at the Office of the Clerk of the United States District Court for the Eastern District of Michigan, 231 W. Lafayette Blvd., Room 599,Detroit, MI 48226. Please note that neither SAC nor any current or former employees, attorneys, or representatives of SAC may advise you regarding the Settlement or how you should proceed.