IN RE ZINC ANTITRUST LITIGATION

Frequently Asked Questions

1. BASIC INFORMATION

1. Why did I get a Notice?

   You were sent a Notice because you may have purchased physical SHG Zinc from Glencore or another primary zinc producer from September 14, 2010 up to and including February 11, 2016 and paid the Platts Zinc Midwest (“MW”) SHG Premium or similar price premium, and may have been injured by Defendants’ alleged monopolization and attempted monopolization during that period. Defendants deny all wrongdoing and have asserted a number of defenses to these claims. The Court has directed that the Notice be sent to you because, as a possible member of the Settlement Class, you have the right to know about the Settlement in this class action lawsuit and about all of your options.

   The Notice explains the lawsuit, the Settlement, and its impact on your legal rights. A copy of the Settlement Agreement may be obtained as described under FAQ 24 below.

   The judge supervising this case is U.S. District Judge Paul A. Engelmayer of the United States District Court for the Southern District of New York. The case is called In re Zinc Antitrust Litigation, No. 1:14-cv-03728 (PAE).

2. What is this lawsuit about?

   Plaintiffs claim that, during the period from September 14, 2010 up to and including February 11, 2016, Defendants engaged in anticompetitive conduct in violation of the federal antitrust laws. Plaintiffs allege that, as a result of Defendants’ anticompetitive conduct, Plaintiffs and other members of the Settlement Class (defined as all persons and entities that purchased LME U.S. Zinc and paid the Platts Zinc MW SHG Premium or similar price premium in the United States from a primary zinc producer or Glencore from September 14, 2010 up to and including February 11, 2016) (see FAQ 6 below) overpaid for SHG Zinc.

   Defendants deny Plaintiffs’ allegations, deny that they engaged in any wrongdoing of any kind, that they violated or breached any law or regulation, or that they have liability as a result of any and all allegations made by Plaintiffs. Defendants have asserted a number of defenses to these claims.

3. Who are the Defendants?

   The Defendants are Glencore Ltd. And Access World (USA) LLC (f/k/a Pacorini Metals USA, LLC).

4. Why is this a class action?

   In a class action, one or more individuals or entities, called “class representatives,” sue on behalf of others who have similar claims. The class representatives in this case are Oklahoma Steel and Wire Co., Inc., Iowa Steel and Wire Co., Southwestern Wire, Inc. and Jasper Materials, Inc., which have been active participants in this case for several years. The class representatives devoted significant time and effort to the case by assisting counsel in their investigation of the claims, and collecting and searching their documents for production to the Defendants. The class representatives and the individuals or entities with similar claims (those who purchased LME U.S. Zinc and paid the Platts Zinc MW SHG Premium or similar priced premium in the United States from a primary zinc producer or Glencore from September 14, 2010 up to and including February 11, 2016) are individually “class members,” together comprising a class. The advantage of a class action is that it permits one court to resolve the settlement-related issues for all class members, except those who exclude themselves from the Settlement.

5. Why is there a proposed settlement with the Defendants?

   Plaintiffs believe that their claims have merit. The Defendants have denied Plaintiffs’ allegations, and have denied that they engaged in any wrongdoing of any kind, that they violated or breached any law or regulation, or that they have liability as a result of any and all allegations made by Plaintiffs. Defendants have asserted a number of defenses to the Plaintiffs’ claims. The Court did not decide in favor of the Plaintiffs or Defendants. Instead, both sides agreed to the Settlement. That way, both sides avoid the cost and risk of further litigation including trial, and the Settlement Class Members affected are given the opportunity to be compensated. The class representatives and Settlement Class Counsel (described in response to FAQ 15) believe the Settlement is the best result for all class members under the circumstances.

6. WHO IS AFFECTED BY THE SETTLEMENT

   To see if you are affected by the Settlement, you first have to determine if you are a Settlement Class Member.

6. How do I know if I am a Settlement Class Member and part of the Settlement?

   All persons and entities that purchased LME U.S. Zinc and paid the Platts Zinc MW SHG Premium or similar price premium in the United States from a primary zinc producer or Glencore from September 14, 2010 up to and including February 11, 2016. Excluded from the Settlement Class are Defendants and all other defendants named in the Corrected and Consolidated Amended Complaint, filed September 28, 2015 (ECF No. 138), and their officers, directors, management, employees, subsidiaries, or affiliates, and all federal governmental agencies.

7. What should I do if I am still not sure if I am included?

   If you are still not sure if you are a Settlement Class Member, you can ask for free help. See FAQ 24 below.

8. THE BENEFITS OF THE SETTLEMENT

8. What does the Settlement provide?

   Under the Settlement, the Defendants have agreed to pay $9,850,000 in cash (the “Settlement Fund”).

9. How do I get a payment?

   If you are a Settlement Class Member and do not exclude yourself from the Settlement, you may be eligible to receive a payment from the Settlement Fund. To qualify for a payment, you must timely send in a Claim Form. Please read the instructions carefully.

   You must fill out the Claim Form and include all the information the form asks for. Be sure to sign it, and mail it by first class mail postmarked no later than January 28, 2022 to the address below. You may also submit a Claim Form electronically no later than 11:59 p.m. Eastern Time on January 28, 2022.

   In re: Zinc Antitrust Litigation
   c/o Settlement Administrator
   1650 Arch Street, Suite 2210
   Philadelphia, PA 19103
   1-855-967-3548
   info@SHGzincAntitrustSettlement.com

   If the Court approves the Settlement (see “The Court’s Fairness Hearing” at FAQs 19-21, below), payments from the Settlement Fund will be distributed at a later date to “Settlement Class Members” who submit valid and timely claims and who qualify for a payment pursuant to the Plan of Allocation described below. In the interim, you should maintain all of your records of all purchases of LME U.S. Zinc where you paid the Platts Zinc MW SHG Premium or similar price premium in the United States from a primary zinc producer or Glencore from September 14, 2010 up to and including February 11, 2016.

   There are specialized companies that may offer to fill out and file your claim in return for a percentage of the value of your claim. The Court has not authorized any of these companies to contact you. Before you sign a contract with one of these companies, you should examine the claim-filing process set forth here, and decide whether using a specialized company is worth the cost. You can always seek help, free of charge, from the Claims Administrator or Settlement Class Counsel.

10. How much will my payment be?

    Settlement Class Counsel has proposed a Plan of Allocation describing the division of the Settlement Fund among Settlement Class Members.

    Part of the Settlement Fund will be used to pay claims administration expenses approved by the Court. Settlement Class Counsel, upon order of the Court, will also deduct from the Settlement Fund attorneys’ fees and out-of-pocket costs and expenses incurred during the litigation, as well as incentive awards for the class representatives, whose participation and contribution to the case is described in response to FAQ 4 above.

    PLAN OF ALLOCATION

    If the Settlement described in the Notice is approved by the Court and becomes final (is not appealed or is not overturned on appeal), the Net Settlement Fund ($9,850,000 less Court-approved attorneys’ fees, expenses and incentive awards) shall be distributed to members of the Settlement Class, as defined above, who submit a timely and valid Proof of Claim and Release form (“Claimants”) and who qualify for a payment as described below.

    Each Settlement Class Member who submits a valid and timely Proof of Claim will be entitled to a pro rata share of the Net Settlement Fund based upon the adjusted value of their claim, which factors in the differential risk between Class Members who purchased SHG Zinc directly from Glencore and those who did not. Purchasers of SHG Zinc from a primary zinc producer other than Glencore had a substantial risk of being denied any recovery due to a potential lack of standing to bring a claim were the litigation to proceed. Therefore, the calculation of the total dollar volume of purchases of SHG Zinc from Glencore versus SHG Zinc purchases from other primary zinc producers that will be used prior to application of the pro rata allocation of the Net Settlement Fund among all eligible Claimants is as follows:

    1. Purchases of SHG Zinc from Glencore by purchasers who paid the Platts Zinc MW SHG Premium or similar price premium will be calculated based on 100 hundred percent (100%) of the total dollar volume of purchases from September 14, 2010 up to and including February 11, 2016 in the United States.
    2. Purchases of SHG Zinc from a primary zinc producer other than Glencore by purchasers who paid the Platts Zinc MW SHG Premium or similar price premium will be calculated based on ten percent (10%) of the total dollar volume of purchases from September 14, 2010 up to and including February 11, 2016 in the United States.

    If a Class Member purchased SHG Zinc from both Glencore and on or more other primary zinc producers, the total dollar volume of purchases from each entity will be calculated separately based on the information provided by the Class Member.

    Determinations of whether, and the extent to which, a Class Member paid the Platts Zinc MW SHG Premium or similar price premium and whether the provider qualifies as a primary zinc producer will be made by the Claims Administrator based upon a Class Member’s proof of claim and other information employed by the Claims Administrator.

    As further described below, if a Settlement Class Member excludes itself from the Settlement Class, it will not be able to share in the distribution from the Settlement Fund.

11. When will I receive a payment?

    The Settlement Fund will be distributed to Settlement Class Members who submit a timely and valid Claim Form and who are entitled to a payment in accordance with the Plan of Allocation after claims are processed by the Court-approved Claims Administrator and the Court has authorized distribution. This process is expected to take several months after the date that the Court finally approves the Settlement.

12. What am I giving up to receive a payment or stay in the Settlement?

    Unless you exclude yourself from the Settlement, you are staying in the Settlement Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit against the Defendants about the legal issues in this case.

    Specifically, if you do not exclude yourself from the Settlement, and the Settlement is approved by the Court and that approval becomes final, you (called the “Releasing Parties”) will be deemed to have released the Defendants and certain of their related entities and persons (called the “Released Parties”), as follows: Upon the Effective Date and in consideration of payment of the Settlement Amount into the Escrow Account, Releasing Parties shall be deemed to and do completely remise, release, acquit, and forever discharge Released Parties from any and all claims, including Unknown Claims (as defined in the Settlement Agreement), demands, actions, suits, injuries, and causes of action, parens patriae actions, cross-claims, counter-claims, charges, judgments, obligations, debts, setoffs, rights of recovery, liabilities, or damages of any nature, whenever or however incurred (whether actual, punitive, treble, compensatory, or otherwise), including claims for costs, fees, expenses, penalties, and attorneys’ fees, whether class or individual, regardless of whether those claims currently exist, are known, or have matured, that the Releasing Parties, or any of them, ever had, now has, or hereafter can, shall or may have, directly, representatively, derivatively, or in any other capacity against any of the Released Parties, whether state or federal, whether in law or equity or otherwise, that was alleged or could have been alleged in the Action based on, arising out of or relating in any way, in whole or in part, to any conduct, act, or omission alleged in the Action, or could have been alleged in the Action or that forms a factual predicate of the Action, from the beginning of time until the Execution Date, including, without limitation, any such claim under any federal or state antitrust, anti-manipulation, unfair competition, unfair practices, fraud, racketeering, price discrimination, unjust enrichment, unitary pricing or trade practice law (the “Released Claims”). Please see Section D of the Settlement Agreement for additional information regarding the Release.

13. EXCLUDING YOURSELF FROM THE SETTLEMENT

    If you want to keep the right to bring your own suit, or continue your own suit, against the Defendants and related entities about the legal issues being resolved in this case, then you must take steps to get out of the Settlement. This is called excluding yourself - or sometimes referred to as “opting out.” If you “opt out” of the Settlement, you will not receive any payment from the Settlement Fund.

13. How do I get out of the Settlement?

    To exclude yourself from the Settlement, you must send a letter saying that you want to be excluded from the Settlement. The letter must include the following information:

    • A statement indicating that you want to be excluded from the Settlement.
    • The case name: In re Zinc Antitrust Litigation, No. 1:14-cv-03728 (PAE) (S.D.N.Y.).
    • Your name, address, telephone number, and your signature.
    • All trade names or business names and all addresses you or your business have used during the Class Period, as well as those of any subsidiaries or affiliates who are requesting to be excluded from the Settlement Class.
    • Documents sufficient to describe your purchases of LME U.S. Zinc from a primary zinc producer or Glencore from September 14, 2010 up to and including February 11, 2016 and that you paid the Platts Zinc MW SHG Premium or similar price premium in the United States.

    Your letter must be mailed or delivered such that it is RECEIVED BY November 16, 2021 to:

    In re Zinc Antitrust Litigation
    Attn: Exclusion Request
    P.O. Box 58220
    Philadelphia, PA 19102
    1-855-967-3548

    If you ask to be excluded from the Settlement, you will not receive any payment from the Settlement Fund and you cannot object to the Settlement.

    Unless you exclude yourself, if the Settlement is approved by the Court, you give up any right to sue the Defendants and related entities for the claims the Settlement resolves as described in response to FAQ 12 above. If you have a pending lawsuit against the Defendants involving the Released Claims, speak to your lawyer in that case immediately. You must exclude yourself from the Settlement Class in order to continue your own lawsuit against the Defendants.

14. If I exclude myself, can I receive money from the Settlement?

    No. If you decide to exclude yourself from the Settlement Class, you will not be able to receive money from the proposed Settlement.

15. THE LAWYERS REPRESENTING YOU

15. Do I have a lawyer in this case?

    Yes. The Court has appointed the law firms of Kessler Topaz Meltzer & Check LLP, Lovell Stewart Halebian Jacobson LLP, Nussbaum Law Group, P.C., and Cera LLP (referred to here as “Settlement Class Counsel”) to represent the Settlement Class, and for purposes of the Settlement. If you want to be represented by your own lawyer and have that lawyer appear in court for you concerning the Settlement, you may hire one at your own expense.

16. How will the Lawyers be paid?

    You are not personally responsible for payment of attorneys’ fees or the out-of-pocket costs and expenses incurred by Settlement Class Counsel and other counsel representing Plaintiffs. Settlement Class Counsel will ask the Court to approve an award of up to one-third (33%) of the Settlement Fund (which is up to $3,280,050) for attorneys’ fees, as well as reimbursement from the Settlement Fund, not to exceed $800,000, for Settlement Class Counsel’s and other Plaintiffs’ counsels’ out-of-pocket costs and expenses incurred in the prosecution of the lawsuit. In addition, an amount not to exceed $100,000 may be expended from the Settlement Fund for reasonable costs of disseminating mail and publication notice, and the cost of administration as set forth in Section E of the Settlement Agreement. Settlement Class Counsel and other counsel representing Plaintiffs have prosecuted this Action for over six years on a fully contingent basis and have not been paid in any way for their considerable efforts to date. Settlement Class Counsel will also seek an incentive award of up to $20,000 in total for the entities which served as the class representatives while the case was pending (whose role and contribution to the case is described in response to FAQ 4 above).

17. OBJECTING TO THE SETTLEMENT, PLAN OF ALLOCATION AND REQUEST FOR ATTORNEYS’ FEES, EXPENSES AND INCENTIVE AWARDS

    You can tell the Court that you do not agree with the Settlement, or some part of the Settlement, or the Plan of Allocation, or the Request for Attorneys’ Fees, Expenses and Incentive Award.

17. How do I tell the Court that I do not like the Settlement or the Plan of Allocation or the Request for Attorneys’ Fees, Expenses and Incentive Award?

    You can only object if you are a member of the Settlement Class and have not opted out of the Settlement Class. You can object if you do not like any part of the Settlement, and/or if you disagree with the Plan of Allocation and/or the Request for Attorneys’ Fees, Expenses and Incentive Award. You should give reasons for your objection(s). The Court will consider your views, but the Settlement, Plan of Allocation and Request for Attorneys’ Fees, Expenses and Incentive Award may still be approved despite your objection(s).

    To object, you must send a letter to the Court that includes the following:

    • A statement indicating that you object to the Settlement, and/or the Plan of Allocation and/or the Request for Attorneys’ Fees, Expenses, and Incentive Award in In re Zinc Antitrust Litigation, No. 1:14-cv-03728 (PAE) (S.D.N.Y.).
    • Your name, address, telephone number, and your signature.
    • The reason(s) you object.
    • Proof of your membership in the Settlement Class, including documents sufficient to describe your purchase(s) of LME U.S. Zinc from a primary zinc producer or Glencore in the period from September 14, 2010 up to and including February 11, 2016 and that you paid the Platts Zinc MW SHG Premium or similar price premium in the United States.

    Your objection to the Court must be mailed or delivered to the following address such that it is RECEIVED BY January 26, 2022:

    Clerk of the Court
    United States District Court
    for the Southern District of New York
    Thurgood Marshall United States Courthouse
    40 Foley Square
    New York, NY 10007

    You must also mail or deliver copies of the objections to all of the following attorneys, such that it is RECEIVED BY January 26, 2022:

    Settlement Class Counsel

    Joseph H. Meltzer
    Kessler Topaz Meltzer & Check, LLP
    280 King of Prussia Road
    Radnor, PA 19087

    Linda P. Nussbaum
    Nussbaum Law Group, P.C.
    1211 Avenue of the Americas, 40th Floor
    New York, NY 10036

    Benjamin M. Jaccarino
    Lovell Stewart Halebian Jacobson LLP
    500 5th Avenue, Suite 2440
    New York. NY 10110

    Solomon B. Cera
    Cera LLP
    595 Market Street, Suite 2300
    San Francisco, CA 94105

    Counsel for Glencore, Ltd.
    
    Eliot Lauer
    Curtis, Mallet-Prevost, Colt & Mosle LLP
    101 Park Avenue
    New York, NY 10178

    Counsel for Access World (USA) LLC
    (f/k/a Pacorini Metals USA, LLC)
    
    Boris Bershteyn
    Skadden, Arps, Slate, Meagher & Flom LLP
    One Manhattan West
    New York, NY 10001

18. What is the difference between objecting and excluding yourself?

    Objecting is simply telling the Court that you do not like something about the Settlement, or the Plan of Allocation, or the request for Attorneys’ Fees, Expenses or Incentive Award. You can object to the Settlement only if you stay in the Settlement. Excluding yourself, or “opting out,” means that you are removing yourself from the Settlement Class and you will have no right to receive payment from the Settlement. If you exclude yourself, you also have no right to object to the Settlement, because the Settlement no longer affects you.

19. THE COURT’S FAIRNESS HEARING

    The Court will hold a Fairness Hearing to decide whether to approve the Settlement, the Plan of Allocation, and the Request for Attorneys’ Fees, Expenses and Incentive Award. You may, but need not, attend the Fairness Hearing. If you attend, you may ask for the Court’s permission to speak (see response to FAQ 21 for instructions), but you do not have to participate in the Fairness Hearing if you attend.

19. When and where will the Court decide whether to approve the Settlement?

    Judge Engelmayer will hold a Fairness Hearing at 3:00 p.m. (EST), on February 16, 2022, at the United States District Court for the Southern District of New York, Thurgood Marshall United States Courthouse, Courtroom 1305, 40 Foley Square, New York, NY 10007. The Fairness Hearing may be moved to a different date or time without additional notice, so you should check the settlement website at www.SHGzincAntitrustSettlement.com before making travel plans. At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate, and whether to approve the Plan of Allocation and the Request for Attorneys’ Fees, Expenses and Incentive Award. Judge Engelmayer will listen to Settlement Class Members who have asked to speak at the Fairness Hearing. If there are objections or comments, the Court will consider them at that time. At or after the Fairness Hearing, the Court will decide whether to approve the Settlement, the Plan of Allocation and the Request for Attorneys’ Fees, Expenses and Incentive Award. We do not know how long the Court will take to make its decision.

20. Do I have to come to the Fairness Hearing?

    No. Settlement Class Counsel will be prepared to answer any questions the Court may have at the Fairness Hearing. However, you are welcome to attend the Fairness Hearing at your own expense. If you submit an objection, you do not have to come to Court to explain. As long as you mailed your written objection on time as set out in the Notice, the Court will consider it. You may also pay another lawyer to attend on your behalf, but it is not required.

21. May I speak at the Fairness Hearing?

    You may ask the Court for permission to speak at the Fairness Hearing. If you wish to do so, you must send a letter (called a “Notice of Intention to Appear”) stating the following:

    • “Notice of Intention to Appear in In re Zinc Antitrust Litigation, No. 1:14-cv-03728 (PAE) (S.D.N.Y.).”
    • The position you will take and your reasons.
    • Your name, address, telephone number, and your signature.
    • Proof of your membership in the Settlement Class, as set forth in response to FAQ 17 above.

    Your Notice of Intention to Appear must be mailed or delivered to the Court at the following address such that it is RECEIVED BY December 16, 2021:

    Clerk of the Court
    United States District Court
    for the Southern District of New York
    Thurgood Marshall United States Courthouse
    40 Foley Square
    New York, NY 10007

    You must also mail copies of the Notice of Intention to Appear to all of the attorneys listed in FAQ 17 above, such that it is received no later than December 16, 2021.

22. IF YOU DO NOTHING

22. What happens if I do nothing at all?

    If you do nothing and you are a member of the Settlement Class (see definition in FAQ 6), you will remain in the Settlement Class for the Settlement, and you will be bound by its terms, including the release described in response to Question 12 above and set forth in Section D of the Settlement Agreement. If you remain in the Settlement Class, to qualify for a payment you must send in a Claim Form, which is enclosed with the Notice. See FAQ 9 above for further information.

23. GETTING MORE INFORMATION

23. Are there more details about the Settlement?

    The Notice summarizes the Settlement. More details are in the Settlement Agreement.

    Settlement Class Counsel will file a motion for final approval of the Settlement, the Plan of Allocation and the Request for Attorneys’ Fees, Expenses and Incentive Awards that will contain additional information. These papers can be obtained by visiting the Important Documents page.

24. How do I get more information?

    If you have questions or want more information, you may contact the Claims Administrator toll free at 1-855-967-3548, by email at info@SHGzincAntitrustSettlement.com or write to any of the following Settlement Class Counsel:

    Settlement Class Counsel

    Joseph H. Meltzer
    Kessler Topaz Meltzer & Check, LLP
    280 King of Prussia Road
    Radnor, PA 19087

    Linda P. Nussbaum
    Nussbaum Law Group, P.C.
    1211 Avenue of the Americas, 40th Floor
    New York, NY 10036

    Benjamin M. Jaccarino
    Lovell Stewart Halebian Jacobson LLP
    500 5th Avenue, Suite 2440
    New York. NY 10110

    Solomon B. Cera
    Cera LLP
    595 Market Street, Suite 2300
    San Francisco, CA 94105