Flue Cured Tobacco Growers Class Action Settlement
The class includes all individuals, proprietorships, partnerships, corporations, and other entities that are or were shareholders and/or members of U.S. Tobacco at any time since the date of U.S. Tobacco’s incorporation on June 1, 1946 until the date the settlement goes into effect, without any exclusion, including any heirs, representatives, executors, powers-of-attorney, successors, assigns, or others purporting to act for or on their behalf.
We do not know at this point how much any individual class member may receive. The settlement fund will be divided into two groups (Group 1 and Group 2), each with different distribution rules.
Group 1 is expected to comprise 75% of the settlement fund and will be distributed to class members on a pro rata basis, determined by the total pounds of flue-cured tobacco each member marketed and sold relative to the total pounds of flue-cured tobacco from all members who submit a Group 1 claim. Distributions for Group 1 claims will be capped at $15,000 per claimant.
Group 2 is expected to comprise 25% of the settlement fund and will be distributed to class members on a pro rata basis, determined by the total number of crop years that each member marketed and sold flue-cured tobacco relative to the total number of crop years of all members who submit a Group 2 claim.
Proof of Purchase
Speaks v. U.S. Tobacco Cooperative, Inc.,
United States District Court for the Eastern District of North Carolina
The proposed settlement is for a class action lawsuit brought by former members of the U.S. Tobacco Cooperative (“U.S. Tobacco”) against U.S. Tobacco, claiming that U.S. Tobacco accumulated funds over the years that should be distributed to members and that it acted unfairly and improperly with respect to the members’ equity interests.