International Coal Group Inc. Case 04/05/2007

AUGUST 2011 - According to the Notice:

Reasons for the Settlement
For Representative Plaintiffs, the principal reason for the Settlement is the benefit to be provided to the Class now. This benefit must be compared to the risk that no recovery might be achieved after a contested trial and likely appeals, possibly years into the future. Representative Plaintiffs further considered, after conducting a substantial investigation into the facts of this case, the risks to proving liability and damages and if successful in doing so, whether a larger judgment could ultimately be collected. For Defendants, who deny all allegations of wrongdoing or liability, the principal reason for the Settlement is to eliminate the expense, risks, and uncertain outcome of the litigation.

Statement of Class Recovery Under the Settlement
Pursuant to the Settlement described herein, a $1,375,000 cash Settlement Fund will be established. Lead Plaintiff estimates that there were approximately 1.1 billion shares of ICG common stock traded during the Class Period (between April 28, 2005 and June 6, 2006) that may have been damaged. Lead Plaintiff estimates that the “average recovery per damaged share” of ICG common stock under the Settlement is $0.001, before deduction of Court-approved fees and expenses, should all members of the Class timely elect to submit valid a Proof of Claim. Thus, your actual recovery from this fund may be greater or less depending on a number of variables including your actual loss based on the share price paid for your Class Period purchases/acquisitions of ICG common stock, the number of claimants, the expense of administering the claims process, and the timing of your purchases/acquisitions. Further, a Class Member’s actual recovery will be a proportion of the Net Settlement Fund (defined below), determined by that Claimant’s recognized loss (i.e., a claim proved by timely submission of a valid Proof of Claim and Release form) as compared to the total recognized losses of all Class Members. This proportional allocation is called “proration.” See the Plan of Allocation beginning on Page 9 for more information.

APRIL 2007 - The complaint charges ICG and certain of its officers and directors and its underwriters with violations of the Securities Act of 1933. ICG is a coal producer with operations in West Virginia, Kentucky, Maryland and Illinois.

Specifically, the complaint alleges that in November and December 2005, ICG undertook two integrated stock transactions involving Registration Statements filed and effective with the SEC. The Offerings were mutually interdependent. The statements in the November and December 2005 Registration Statements concerning the Company’s business, the strength of its management team, its safety and maintenance practices, its ability to capitalize on favorable market conditions, its ability to deliver optimum selections of coal to meet increasing demand, and its acquisition of the Anker Coal Company and company reorganization were all false and misleading when made. In fact, the Company was suffering from serious shortfalls in its maintenance and safety procedures, its mines were ill-equipped, as were its miners, the Anker acquisition had been a mistake, saddling the Company with outmoded and dangerous mining operations, the Company’s top management team was distracted by work involved in the November 2005 reorganization and December 2005 offering and the Company would be unable to produce sufficient amounts of coal in desired mixes to meet its revenue and earnings and production forecasts. After the November and December 2005 Registration Statements became effective, information entered the marketplace in a series of company-specific negative revelations contradicting the prior representations made and demonstrating the falsity of the Registration Statements. As a result, the Company’s stock price declined sharply, damaging Class members who purchased the stock issued by the Company in the Offerings.