June 12, 2023 Update
As you may know, Reed Hein is insolvent and has stopped functioning as a business. It cannot pay any substantial judgment. However, it appears that it may have valuable claims against third parties, such as its insurance carriers. On April 11, 2022, the parties executed a settlement agreement in which Reed Hein agreed to a $630 million judgment. The Class agreed not to execute the judgment against Reed Hein in exchange for Reed Hein transferring its rights to lawsuits against third-parties to the Class.
On May 16, 2023, Judge Barbara Rothstein granted final approval of that settlement in Adolph v. Reed Hein & Associates. The settlement includes a $630 million judgment with a covenant not to execute. No money has changed hands as part of the settlement. The settlement gives the class the right to pursue legal claims against Reed Hein’s insurers and other parties. Class counsel intends to pursue the assigned claims in the hopes of recovering money for the class. Class members will be given notice of potential settlements or judgments in the future. A copy of Judge Rothstein’s order has been uploaded to this website.
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