In the Class Action, the Class Representative claims that the Defendants improperly invested Plan assets that were not invested in company stock. The Class Representative also alleged that the company stock was undervalued.

Defendants deny all claims and assert that they have always acted prudently and in the best interests of participants and beneficiaries.

The Court has not reached a final decision as to the Class Representative’s claims. Instead the Class Representative and Defendants have agreed to the Settlement. The Settlement is the product of extensive negotiations between the Class Representative, Defendants, and their 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. The Class Representative 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.

The Settlement Class includes all participants of the Electric Supply Employee Stock Ownership Plan (“ESOP”) who had an account balance greater than zero at any time between January 1, 2016 and April 14, 2021, excluding Defendants.

Under the Settlement, Defendants or their insurers will pay $1,100,000 into a Qualified Settlement Fund to resolve the claims of the Settlement Class against Defendants. The Net Settlement Amount (after deduction of any Court approved Attorneys’ Fees and Costs, Administrative Expenses, and General Release Compensation) will be allocated to Settlement Class Members according to a Plan of Allocation to be approved by the Court. Settlement Class Members who are entitled to a distribution may receive their distribution as a check or if they choose, as a rollover to a qualified retirement account.

All Settlement Class Members and anyone claiming through them will fully release the Plan as well as 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 Plan that were asserted in the Action against Defendants or could have been asserted against Defendants.

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

The amount, if any, that will be allocated to you will be based upon records maintained by the Plan’s recordkeeper. Calculations regarding individual distributions will be performed by the Settlement Administrator, 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 either be a (1) “Settlement Class Member” as described on page 1 of the Notice; or (2) a Beneficiary or Alternate Payee of a person identified in (1).

There are 197 Settlement Class Members. The Net Settlement Amount will be divided pro rata among Settlement Class Members (and their Beneficiaries and Alternate Payees) based on Settlement Class Members’ average yearly balance in the Plan’s Other Investments Account.

If you are a Class Member, you do not need to do anything to receive your share of the Net Settlement Amount by check.

If instead of a check you wish to receive your share of the Net Settlement Amount via a rollover to an individual retirement account or other tax-qualified plan, such as the Electric Supply 401(k) Retirement Savings Plan, then you must submit a Rollover Form postmarked on or before September 5, 2024.

No. The Settlement Class has been certified for settlement purposes under Federal Rule of Civil Procedure 23(b) (l). 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 Action. If you wish to object to any part of the Settlement, you may write to Class Counsel and Defendants’ counsel about why you object to the Settlement, as discussed below.

The Court has appointed the law firms of Engstrom Lee LLC in Minneapolis, Minnesota, Morgan & Morgan, P.A. in Tampa, Florida, and Wenzel Fenton Cabassa P.A. in Tampa, Florida as Class Counsel in the Class Action. If you want to be represented by your own lawyer, you may hire one at your own expense.

Class Counsel will file a motion for an award of Attorneys’ Fees and Costs, Administrative Expenses, and General Release Compensation at least 30 days 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 Qualified Settlement Fund. Class Counsel also will seek to recover all actual and anticipated litigation costs and administrative expenses associated with the Settlement. The Court will determine the amount of fees costs, and administrative expenses that will be awarded, if any. All papers filed in this Action, including Class Counsel’s motion for Attorneys’ Fees and Costs Administrative Expenses, and General Release Compensation will be available for review via the Public Access to Court Electronic Records System (PACER), available online at http://www.pacer.gov.

If you are a Settlement Class Member, you can object to the Settlement by mailing to Class Counsel and to Defendants’ counsel at the addresses below a written objection explaining why you object and any supporting documents. Your written objection must: (1) clearly identify the case name and number: Cothran v. Adams, et al., Case No. 8:2023-cv-00518· (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) provide copies of all documents that you wish to submit in support of your position; (5) provide the name(s), address(es) and phone number(s) of any attorney(s) representing you; and (6) include your signature. Your written objection and supporting documents must be mailed to Class Counsel and Defendants’ counsel no later than 21 days prior to Fairness Hearing to be considered. Class Counsel and Defendants will have an opportunity to respond to your objection.

The Court will hold a Fairness Hearing at 11:00 a.m. on September 19, 2024 at United States District Court for the Middle District of Florida, 801 North Florida Avenue Tampa, Florida 33602, in Courtroom 13A. 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 Administrative Expenses, and General Release Compensation. If there are objections, the Court will consider them then. 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 the Settlement Website.