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[cubbiesnextyr]

It is like the lottery.  If you win the "$20 million" prize which is paid out as 40 annual $500K payments, you don't get interest on the undistributed money, because what you won wasn't $20 million present value, but rather a specified payment stream adding up to $20 million.  So too here.

So for Prosper, which has borrowing costs roughly 15% from the VC's, not having to pay $2M for 8 months is a windfall of $200,000.

Prosper did pay the $2M on time according to Urbi.  It appears the processor dropped the ball and held onto the cash for 8 months.

[ira01]

It is like the lottery.  If you win the "$20 million" prize which is paid out as 40 annual $500K payments, you don't get interest on the undistributed money, because what you won wasn't $20 million present value, but rather a specified payment stream adding up to $20 million.  So too here.

So for Prosper, which has borrowing costs roughly 15% from the VC's, not having to pay $2M for 8 months is a windfall of $200,000.

Except that it appears that Prosper DID make the payment on time.  So the windfall went elsewhere. 

[112233]

It is like the lottery.  If you win the "$20 million" prize which is paid out as 40 annual $500K payments, you don't get interest on the undistributed money, because what you won wasn't $20 million present value, but rather a specified payment stream adding up to $20 million.  So too here.

So for Prosper, which has borrowing costs roughly 15% from the VC's, not having to pay $2M for 8 months is a windfall of $200,000.

Except that it appears that Prosper DID make the payment on time.  So the windfall went elsewhere.

although I do find it odd that nobody on any of the sides asked for confirmation of delivered checks.

[whitsend]

I got my $6.61 in yesterday.

WooHoo!
I'll try not to spend it all in one place. 

[rogerwaite]

I got my $6.61 in yesterday.

WooHoo!
I'll try not to spend it all in one place. 

Nah, go on and splurge.

[112233]

got my $20.90 check. Looks like its beer night.

[mothandrust]

Except that it appears that Prosper DID make the payment on time.  So the windfall went elsewhere.

Prosper is supposed to pay the Class, and we were not paid on time.

If they tell the Class and the Court, "We plan to use Strategic Claims, Huntington Bank, and the US Postal Service to deliver the payment" and the Class and the Court approve, that doesn't get them off the hook.

If they don't address the envelopes properly and leave off the the stamps and the USPS doesn't deliver, Prosper didn't pay us the payment on time.

If the account at Huntington has insufficient funds and the checks bounce, Prosper didn't pay us on time.

If Strategic Claims puts the wrong date in the computer and doesn't issue the checks, Prosper didn't pay us on time.

[ira01]

Except that it appears that Prosper DID make the payment on time.  So the windfall went elsewhere.

Prosper is supposed to pay the Class, and we were not paid on time.

No, Prosper is supposed to pay Strategic Claims, and SC is supposed to pay the Class.  Prosper did what it was supposed to do. 

If they tell the Class and the Court, "We plan to use Strategic Claims, Huntington Bank, and the US Postal Service to deliver the payment" and the Class and the Court approve, that doesn't get them off the hook.

If that payment mechanism is built into the court approved settlement, actually I think it does.

If they don't address the envelopes properly and leave off the the stamps and the USPS doesn't deliver, Prosper didn't pay us the payment on time.

If PROSPER failed to address the envelope correctly, or put postage on it, that would be different.  But that isn't what happened here. 

[mothandrust]

What happened was they were negligent in making sure they fulfilled their obligations to the Class.

We're really supposed to believe that Prosper pays out $2,000,000 and no one follows up with where the money goes?

[ira01]

What happened was they were negligent in making sure they fulfilled their obligations to the Class.

Got any evidence of that?

We're really supposed to believe that Prosper pays out $2,000,000 and no one follows up with where the money goes?

Looks like that's what happened.  Prosper assumed that Strategic Claims would properly handle the payments, but SC dropped the ball. 

[Fred93]

We're really supposed to believe that Prosper pays out $2,000,000 and no one follows up with where the money goes?

Prosper assumed that Strategic Claims would properly handle the payments, but SC dropped the ball.

We don't know for sure.  From what people are saying, it appears that Prosper paid on time and SC dropped the ball.  I don't have any tangible evidence.  I would prefer to have evidence.  I believe it is reasonable for class members to see some evidence of Prosper's on-time payment, as we waited 8 months for payment and do not know why.

I explicitly asked the CEO of SC (via email) when Prosper paid the escrow account, and he declined to answer.  That alone is a little suspicious. 

Presuming that Prosper did pay on time, the next question is... Are there any repercussions of SC dropping the ball and delaying payment for 8 months?   I don't find any explicit penalty on SC in the settlement or the judge's order.  That doesn't mean there shouldn't be some.

SC failed to carry out the actions that the settlement said they were supposed to.  It explicitly said within 20 days of..., and SC missed that by 8 months.  It appears that they only woke up after I sent them email telling them I thought they were late.

I think a reasonable remedy would be to cut their fee for this payment in half.

SC would never initiate their own punishment.  I don't think plaintiffs lawyers will initiate it.  They do too much work with SC.  No upside for them.  One of us would have to write the judge.

[rogerwaite]

It appears that they only woke up after I sent them email telling them I thought they were late.

You sure have a history of waking people up to incongruities. Best alarm clock ever!!

[yankeefan]

I see that the "Settlement Agreement" provided for $175,000 to the Settlement agent for the first installment, and $85,000 for the others.  I believe that this is the "7.7%" solution.   If we take 1/3 out of the $2mm for attorney fees, the 70,000   $90,000difference is 7.7+% of the remainder 

[ira01]

We're really supposed to believe that Prosper pays out $2,000,000 and no one follows up with where the money goes?

Prosper assumed that Strategic Claims would properly handle the payments, but SC dropped the ball.

We don't know for sure.  From what people are saying, it appears that Prosper paid on time and SC dropped the ball.  I don't have any tangible evidence.  I would prefer to have evidence.  I believe it is reasonable for class members to see some evidence of Prosper's on-time payment, as we waited 8 months for payment and do not know why.

I explicitly asked the CEO of SC (via email) when Prosper paid the escrow account, and he declined to answer.  That alone is a little suspicious. 

I don't think it's suspicious at all, because that would basically constitute an admission by SC that it is responsible for the delay, and should be liable for it (such as by having to pay interest out of its pocket). 

Presuming that Prosper did pay on time, the next question is... Are there any repercussions of SC dropping the ball and delaying payment for 8 months?   I don't find any explicit penalty on SC in the settlement or the judge's order.  That doesn't mean there shouldn't be some.

SC failed to carry out the actions that the settlement said they were supposed to.  It explicitly said within 20 days of..., and SC missed that by 8 months.  It appears that they only woke up after I sent them email telling them I thought they were late.

I think a reasonable remedy would be to cut their fee for this payment in half.

I think a more reasonable remedy than an arbitrary 50% cut in their fee would be for them to have to pay interest on the money, since interest is the usual remedy for delays in receiving money. 

SC would never initiate their own punishment.  I don't think plaintiffs lawyers will initiate it.  They do too much work with SC.  No upside for them.  One of us would have to write the judge.

Plaintiff's lawyers owe a duty to the Class, their clients (and their work with SC is basically SC as their vendor -- I think it is SC that would owe allegiance to the lawyers, not the other way around; I doubt SC brings the lawyers business, it is the lawyers that bring SC business).  I think Urbi or one of the other Class Representatives should try to get Rosen or one of his associates on the phone, and find out what they are going to do to properly represent their clients and address this matter.  If the lawyers refuse to communicate with their clients, then the clients should file a complaint with the State Bar -- here in CA, lawyers failing to properly communicate with the clients is one of the major causes of lawyer discipline. 

I think it is unlikely that the Judge is going to respond to letters from Class members.  Letters are generally not an appropriate way to communicate with a judge.  Someone would probably have to file a Motion with the Court to have the matter addressed by the Judge, which is why it should involve Plaintiffs' counsel. 

[ira01]

I see that the "Settlement Agreement" provided for $175,000 to the Settlement agent for the first installment, and $85,000 for the others.  I believe that this is the "7.7%" solution.   If we take 1/3 out of the $2mm for attorney fees, the 70,000 difference is 7.7+% of the remainder

What $70,000 difference?  $175K-$85K is $90,000.