The Lawsuit claims that Defendants violated a federal statute, the Employee Retirement Income Security Act of 1974 (“ERISA”), in connection with the Plan’s acquisition of CQ Holding Company, Inc. stock in 2012 for approximately $170 million (the “ESOP Transaction”). Specifically, the Lawsuit alleges that the Defendants violated their duties under ERISA § 404, 29 U.S.C. § 1104, § 405, 29 U.S.C. § 1105, and ERISA § 406, 29 U.S.C. § 1106, when they facilitated the sale of CQ Holding Company, Inc. stock to the ESOP for a purchase price that exceeded fair market value, and Defendants participated in a prohibited transaction in violation of ERISA § 406, 29 U.S.C. § 1106, by selling their CQ Holding, Company Inc. stock to the Plan.

The Defendants deny all of the allegations in the Lawsuit, deny any wrongdoing regarding the ESOP Transaction, and have vigorously defended the Lawsuit.

All participants in the Casino Queen ESOP, whether or not such participant had a vested account in the ESOP, and those participants’ beneficiaries, excluding: Defendants and their immediate family members; any ESOP Trustee, ESOP Administrative Committee members serving in such capacity on or before December 31, 2019; the officers and directors of CQH or Casino Queen, Inc. (“CQI”) serving in such capacity on or before December 31, 2019; or the officers or directors or of any other entity in which a Defendant (other than CQH or CQI) has a controlling interest; and legal representatives, successors, and assigns of any such excluded persons.”

Defendants have agreed to make a total payment of $7,100,000 (the “Gross Settlement Amount”) to resolve all claims against all Defendants that have been asserted in this litigation.

If the Settlement becomes Final, the “Net Proceeds” of the Settlement paid to Class Members shall be the Gross Settlement Amount minus:

1. Administrative Expenses, which include amounts required to pay taxes, administer the Gross Settlement Amount, issue notice of the Settlement and communicate with Class Members, and make payments to the Class Members.
2. The fees and costs of the Independent Fiduciary in an amount not to exceed $20,000.
3. Class Counsel’s attorneys’ fees, which shall not exceed $2,366,666.67.
4. Class Counsel’s expenses, which shall not exceed $225,000.
5. If approved by the Court, a Service Award to each of the Class Representatives in an amount not to exceed $25,000 each.

Class Member who redeemed their shares at the higher redemption prices used prior to October 15, 2019 will receive $500; a Class Member who never held vested shares in their account will receive $50, and a Class Member who redeemed their shares at the lower redemption prices used after October 15, 2019 will receive a share of the Net Proceeds based on the proportion of the shares of Casino Queen stock they redeemed at the lower redemption prices divided by the total number of shares held by all Class Members in the Plan that were redeemed at the lower redemption prices.

Class Members will not need to submit a claim to receive their allocated portion of the Net Proceeds from the Settlement. Their allocated portion will be calculated based on the Plan’s records. The allocable portion of the Net Proceeds of the Class Members shall be distributed to the Class Members directly by the Settlement Administrator to Class Members either by check or as a deposit into an individual retirement account or other eligible retirement plan if the Class Member timely and correctly submits a Rollover form. Class Members who wish to deposit their settlement allocation to an individual retirement account or other eligible retirement plan will need to fill out the online Rollover Election Form by February 4, 2025. If a Class Member does not complete the Rollover Election Form by that date, then their settlement allocation will be paid by check, less tax withholding.

If you are a Class Member, you can object to the Settlement if you do not like any part of it. To object, you must send your objection to the Clerk of Court, U.S. District Court for the Southern District of Illinois, East Saint Louis Courthouse, 750 Missouri Avenue, East Saint Louis, IL 62201 and to the Settlement Administrator:

Settlement Administrator:
Casino Queen ESOP Settlement
P.O. Box 2004
Chanhassen, MN 55317-2004
Email: cqesopsettlement@noticeadministrator.com

Objections must also be filed with the Court and submitted to the Settlement Administrator by U.S. Mail or email by February 4, 2025. Objections filed after that date will not be considered. To be valid, the objection must set forth, in clear and concise terms: (a) the case name and number (Hensiek v. Board of Directors of Casino Queen Holding Co., Inc. et al., Case No. 3:20-cv-00377-DWD); (b) the name, address, and telephone number of the objector objecting and, if represented by counsel, the name, address, and telephone number of their counsel; (c) the complete basis for objection; (d) a statement of whether the objector intends to appear at the Fairness Hearing, either with or without counsel; (e) a statement of whether the objection applies only to the objector, to a specific subset of the class, or to the entire class, and (f) copies of all supporting documents, including any document(s) that the objector or the objector’s counsel intends to offer at the Fairness Hearing. See your Notice for complete instructions.