Lyons Class Action
Lyons Class Action
Home
Home
Notice
Notice
Notificación en Espanol
Notificación en Espanol
Court Documents
Court Documents
FAQs - General Information
FAQs - General Information
FAQs - Calculation of Settlement Payments
FAQs - Calculation of Settlement Payments
How to Report a Change of Name or Address
How to Report a Change of Name or Address

Welcome to the Settlement website for Lyons, et al., v. Litton Loan Servicing, LP, et al, Case No: 13-cv-00513 (the “Lyons Action”).  This website has been established to provide general information related to the Settlement.  The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Settlement Agreement (“Agreement”). 



UPDATE:

Class Counsel is pleased to announce that Settlement Payment checks were mailed out to eligible Class Members on July 8, 2016. If you have questions regarding your payment, please read through these Frequently Asked Questions that provide the details of the calculations of those payments.
 



The Litigation

This lawsuit involves Lender Placed Insurance, or LPI, which is hazard, wind, and/or flood insurance placed on a homeowner’s property to protect the borrower and mortgage lender when the homeowner’s insurance policy lapses or when the homeowner does not maintain a required insurance policy that is acceptable to the mortgage lender.  When an LPI Policy was placed, Litton paid a premium to the LPI insurer, here, one of the AMIG Defendants, and then Litton charged the homeowners for the cost of that premium.

The Plaintiff alleged that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage, and evidence of acceptable coverage was not provided, (for example, when the insurance policy did not exist or had lapsed), Litton would place insurance in a manner that enabled it to obtain an unauthorized benefit.  The Plaintiff also alleged that the way in which LPI was obtained and placed caused the LPI charges and the amount of coverage to be excessive.

The Plaintiff brought claims on behalf of all persons in the Settlement Class defined as:

All borrowers in the United States who had a certificate for hazard, wind, and/or flood LPI applicable to the borrower’s property issued during the period January 1, 2006 through January 14, 2016, inclusive of those dates, pursuant to a Lender-Placed Insurance master policy issued to Litton by the AMIG Defendants, or one of their agents, including but not limited to SWBC, or Affiliates, and/or any other person or entity acting for or on behalf of the AMIG Defendants, and who were charged by Litton for Lender-Placed Insurance. 

The following are excluded from the Settlement Class:  (a) individuals who are or were during the Class Period officers or directors of the AMIG Defendants or any of their respective subsidiaries or Affiliates; (b) any justice, judge or magistrate judge of the United States or any State, and their spouses; and (c) borrowers whose LPI Policy was cancelled in its entirety such that any premiums charged and/or collected were fully refunded or credited to the borrower or the borrower’s escrow account.

The “Class Period” commences on January 1, 2006 and continues through January 14, 2016, inclusive of those dates.



The Settlement

AMIG Defendants have agreed to pay $4,121,000 to establish a Settlement Fund from which will be deducted the following payments: (a) the service awards to Jimmy and Jacqueline Lyons and  Sheila Heard, if approved by the Court; (b) attorneys’ fees and expenses if awarded by the Court; and (c) settlement administration costs. The remaining balance will be the Net Settlement Fund. 

Each Settlement Class Member will be entitled to a pro rata share of the Net Settlement Fund in proportion to their Individual Net Premium over the Total Net Premium charged to all Settlement Class Members, after accounting for Minimum Level Payment Recipients, as those terms are defined in the Settlement Agreement, with a Minimum Level Payment of $2.00. Additionally, second settlement payments may be issued after the first settlement payments if the balance remaining in the Net Settlement Fund exceeds a certain level.  Settlement Class Members do not need to submit a claim form in order to receive a settlement payment. 

The Court has preliminarily approved the Settlement.  A Final Approval Hearing will be held on April 22, 2016 at 10:00 a.m. in Courtroom 1306 at the Thurgood Marshall United States courthouse at 40 Foley Square, New York, NY  10007.  At the Hearing, the Court will consider whether the proposed Settlement is fair, reasonable and adequate and whether to approve Class Counsel’s request for attorneys’ fees and costs and service awards. 

Further information and updates with be posted on this Settlement WebsiteYou may also call the toll-free Settlement Helpline at 866-233-8545.

 
adobe reader imageYou will need Adobe Reader to view documents on this site. You can learn more about Adobe Reader and download the latest version by clicking here.