ALL RECORD AND BENEFICIAL HOLDERS OF ANWORTH MORTGAGE ASSET CORPORATION (“ANWORTH”) COMMON STOCK FROM DECEMBER 6, 2020 THROUGH AND INCLUDING MARCH 19, 2021, THE DATE OF THE CONSUMMATION OF ANWORTH’S MERGER WITH AFFILIATES OF READY CAPITAL CORPORATION (THE “MERGER”), INCLUDING ANY AND ALL OF THEIR RESPECTIVE SUCCESSORS-IN-INTEREST, SUCCESSORS, PREDECESSORS-IN-INTEREST, PREDECESSORS, REPRESENTATIVES, TRUSTEES, EXECUTORS, ADMINISTRATORS, ESTATES, HEIRS, ASSIGNS AND TRANSFEREES, IMMEDIATE AND REMOTE, AND ANY PERSON OR ENTITY ACTING FOR OR ON BEHALF OF, OR CLAIMING UNDER, ANY OF THEM, AND EACH OF THEM, TOGETHER WITH THEIR PREDECESSORS-IN-INTEREST, PREDECESSORS, SUCCESSORS-IN-INTEREST, SUCCESSORS, AND ASSIGNS (THE “CLASS”).
THE PARTIES TO A SHAREHOLDER CLASS ACTION SUIT CONCERNING THE MERGER HAVE AGREED TO A PROPOSED SETTLEMENT. YOU MAY BE ENTITLED TO COMPENSATION AS A RESULT OF THE PROPOSED SETTLEMENT IN THE ACTION CAPTIONED.
PLEASE READ THE NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS WILL BE AFFECTED BY THIS SETTLEMENT.
The Notice describes the rights you may have in the Action pursuant to the Stipulation and what steps you may take, but are not required to take, in relation to the Settlement.
Anworth Mortgage Asset Corporation (“Anworth” or the “Company”) was a Maryland corporation, headquartered in California. Anworth was a specialty finance mortgage company. On December 6, 2020, Anworth entered into a definitive merger agreement, pursuant to which, on March 19, 2021, Anworth was acquired by Ready Capital Corporation (the “Merger”) and Anworth’s shareholders received $0.61 in cash (the “Cash Consideration”) and 0.1688 shares of Ready Capital common stock (the “Exchange Ratio” and, together with the Cash Consideration, the “Merger Consideration”) for each share of Anworth common stock that they owned.
This litigation challenged the fairness of the Merger and Merger Consideration, alleging that the Merger was the product of a conflicted and flawed sales process and that resulted in Anworth’s minority shareholders receiving an inadequate price for their Anworth stock.
The Court has scheduled a Settlement Hearing which will be held on November 14, 2023 at Department 12 of the Superior Court of the State of California, County of Los Angeles, located at 312 North Spring Street, Los Angeles, CA 90012 at 10:30 a.m., in the Court at to:
If you are a member of the Class, you may object to the terms of the Settlement. To object, you must file a written statement, accompanied by proof of Class membership, with the Court, and send a copy to Co-Lead Counsel such that is received by October 24, 2023. More details regarding objecting to the Settlement on are included in section VII of the Notice.
If you want to keep the right to sue or continue to sue Defendants on your own about the legal issues in this case, then you must take steps to get out of the Class and Settlement. This is called excluding yourself from, or “opting out” of, the Class and Settlement. Your request for exclusion must be postmarked by October 24, 2023. Details on how to exclude from the Settlement are in section VIII of the Notice.