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Notice of Proposed Settlement of Class Action


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SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SAN FRANCISCO, UNLIMITED JURISDICTION

Coordination Proceeding
Special Title (Rule 1550(b))

CALIFORNIA INDIRECT PURCHASER
MSG ANTITRUST CASES

This Document Relates to:

             ALL ACTIONS

MASTER FILE NO. 304471

 

 

NOTICE OF PROPOSED
SETTLEMENT OF CLASS ACTION

TO: ALL INDIRECT PURCHASERS OF FOOD FLAVOR ENHANCERS IN CALIFORNIA BETWEEN JANUARY 1, 1990 AND SEPTEMBER 1, 2000.
PLEASE READ THIS ENTIRE NOTICE CAREFULLY.

YOUR RIGHTS MAY BE AFFECTED BY LITIGATION NOW PENDING IN THIS COURT.

     If you bought Food Flavor Enhancers or products containing Food Flavor Enhancers in California during any part of the period from January 1, 1990 to September 1, 2000 (the “Class Period”) (1) from any manufacturer or processor other than a defendant in this action, (2) from any wholesaler, (3) from any retailer, or (4) from any other business entity or person, you may be a member in this Settlement Class and your rights may be affected. The defendants in this action are: Ajinomoto Company, Inc. and Ajinomoto U.S.A., Inc. (“Ajinomoto”), Takeda Chemical Industries, Ltd. (“Takeda”), Kyowa Hakko Kogyo Co., Ltd. (“Kyowa”), Archer Daniels Midland Co. (“ADM”), CJ Corp. and CJ America (“Cheil”), Miwon Company Ltd., Miwon Trading and Shipping Co., Ltd., Miwon Japan, Inc., Daesang America, Inc. f/k/a Miwon America, Inc., Daesang Corporation, and Daesang Japan, Inc. (“Daesang”), and Tung Hai Fermentation Industrial Corporation, n/k/a Vedan Enterprise Corporation (“Tung Hai”). This Settlement Agreement is between Tung Hai (“Settling Defendant”) and plaintiffs. The other defendants previously settled this case against them paying $10,590,000 in cash, and $500,000 in food product.

     The term “Food Flavor Enhancers” means and includes the products Monosodium Glutamate (“MSG”), Disodium Inosinate (“DSI”or “IMP”), Disodium Guanylate (“DSG” or “GMP”) and the combination of IMP and GMP (“I&G”). IMP and GMP and I&G are also known as nucleotides. Food Flavor Enhancers are most commonly used in dehydrated soups and gravies; canned meat; sausage and fish; prepared meals; tomato sauce and ketchup; mayonnaise; snack foods (mix in salt); soy sauce; crab; prawn and shellfish (preserved); Asian cuisine; prepared vegetables; and a variety of other products. The litigation seeks treble damages for alleged violations of the California antitrust laws with respect to the pricing, marketing and sale of Food Flavor Enhancers. Various plaintiffs filed lawsuits against the defendants listed above. A Consolidated Amended Complaint was filed on September 1, 2000. Plaintiffs allege that, beginning January 1, 1990 defendants engaged in an unlawful conspiracy to fix, raise and stabilize the prices of Food Flavor Enhancers in the United States in violation of the California antitrust laws. Plaintiffs claim that, as a result of the alleged conspiracy, they and other members of the Settlement Class described below have paid more for Food Flavor Enhancers purchased indirectly than they would have paid absent the alleged conspiracy. All defendants deny that they have violated the antitrust laws and have asserted various defenses.

     Nonetheless, the Settling Defendant concluded, despite its belief that it is not liable for the claims asserted and it has good defenses thereto, that it will enter into a settlement to avoid the further expense, inconvenience and burden of this protracted litigation, and the distraction and diversion of its personnel and resources, and to avoid the risks inherent in uncertain, complex litigation.

The Settlement Class is:

All persons (including natural persons), sole proprietorships, partnerships, corporations and other entities in the State of California who indirectly purchased Food Flavor Enhancers in California from any of the Defendants, or their respective predecessors, agents or subsidiaries, at any time during the period January 1, 1990 to September 1, 2000. Excluded from the Settlement Class are governmental entities, any judge, justice or judicial officer presiding over this matter and members of his or her immediate family, the Defendants and other manufacturers of Food Flavor Enhancers, along with their respective parents, subsidiaries and/or affiliates. Also excluded from this class are the legal representatives, heirs, successors, and attorneys of any excluded person or entity, and any person acting on behalf of any excluded person or entity.

     THE COURT HAS NOT HEARD OR PASSED ON ANY OF THE CONTENTIONS OF THE PARTIES. THIS NOTICE IS NOT TO BE UNDERSTOOD AS AN EXPRESSION OF ANY OPINION BY THE COURT AS TO THE MERITS OF ANY OF THE CLAIMS OR DEFENSES ASSERTED BY ANY PARTY.

I. THE SETTLEMENT

     Under the terms of the Settlement Agreement, Tung Hai has agreed to contribute $100,000 in coffee product to the San Francisco Food Bank or other mutually agreed-upon recipient, as well as $25,000 cash to pay Court-approved notice cost. Settling Defendant is the last defendant in this case. Prior notice was given of settlements with other defendants totaling $10,590,000 in cash and $500,000 in food product.

     If you wish to remain a Settlement Class member, and agree to the Settlement, you do not need to do anything. If you have any questions you may write to the California MSG Antitrust Settlement Case Administrator, c/o Rosenthal & Company LLC, P.O. Box 6177, Novato, CA 94948-6177. If you are a Settlement Class member and do not timely exclude yourself from the settlement, and the proposed settlement is granted final approval, you will be bound by the settlement and the judgment in these lawsuits, and the various claims that you may have against the Settling Defendant will be released.

     If you wish to exclude yourself from the settlement, you must submit a request for exclusion, postmarked on or before August 31, 2005, to: California MSG Antitrust Settlement Case Administrator,
c/o Rosenthal & Company LLC, P.O. Box 6177, Novato, CA 94948-6177.

     The request for exclusion and the address on the envelope (1) must refer to the name and number of this litigation, MSG Cases, Master File No. 304471, (2) must state the name and address of the member of the Settlement Class requesting exclusion (giving an attorney's name and address is not sufficient), and (3) must state that such Class Member elects to be excluded from the Settlement Class. Any request for exclusion should also state the amount of Food Flavor Enhancer products purchased during the Class Period from business entities and persons other than the defendants in this action. If you are unable to calculate the amount of such purchases at this time, you should provide a good faith estimate of the amount of such purchases. Any Settlement Class member who chooses to be excluded will not be bound by any judgment entered in connection with this settlement.

II. NOTICE OF HEARING

     The Court has scheduled a hearing at 1:30 p.m., on October 19, 2005, in the Courtroom of the Honorable Richard A. Kramer, Judge of the San Francisco County Superior Court, Department 304, located at 400 McAllister Street, San Francisco, CA 94102-4512, for the purposes of determining whether this settlement with Settling Defendant is fair, adequate and reasonable and should be given final approval. Although you may attend this hearing, you are not required to do so to participate in the settlement. If you are a member of the Settlement Class, and wish to comment in support of or in opposition to any aspect of the proposed settlement, and/or wish to be heard at the hearing, you must deliver or send by certified First-Class mail to: California MSG Antitrust Settlement Case Administrator, c/o Rosenthal & Company LLC, P.O. Box 6177, Novato, CA 94948-6177, postmarked not later than August 31, 2005, a sworn statement in writing, which shall include: (1) the class member's complete name and residence or business address (giving an attorney's name and address is not sufficient); (2) that the class members purchased Food Flavor Enhancer products during the period January 1, 1990 through September 1, 2000; and (3) each ground for comment or objection and any supporting papers the class member desires the Court to consider. Copies of any objections received by Plaintiffs' counsel pursuant to this paragraph shall be provided to counsel for the Settling Defendant.

     The filing of any objection shall not extend the time within which a class member may file a request for exclusion from this settlement.

     For more information or to receive a copy of the Settlement Agreement, please direct your inquiry or request in writing to the California MSG Antitrust Settlement Case Administrator, c/o Rosenthal & Company LLC, P.O. Box 6177, Novato, CA 94948-6177, or call 1-800-207-0343 or visit the website at www.msgsettlement.com.

PLEASE DO NOT ADDRESS ANY INQUIRIES TO THE COURT

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