International Ladies' Garment Workers' Union

Settlement Update:

As set forth below, the partial settlement, with all Defendants other than ILGWU 21st Century Heritage Fund ("Heritage Fund"), which provides a benefit increase for beneficiaries of participant class members who have died or will die on or after December 1, 2002, has now, as of March 27, 2007, been approved by the Court. Implementation of the Partial Settlement will not begin, however, until the appeals filed by objectors of the partial settlement are fully disposed of. While this appeal is pending the benefit increase called for by the settlement cannot be implemented.

On January 17, 2008, the Court preliminarily approved a Proposed Settlement with Defendant 21st Century Heritage Fund. If finally approved, this settlement together with the partial settlement previously approved on March 27, 2007 (pending appeal) would completely resolve the case. This most recent settlement provides for a cash payment from the 21st Century ILGWU Heritage Fund of 6.1 million dollars that is already in Escrow earning interest, with the net proceeds of that payment after costs of class notice, taxes and attorneys’ fees and expenses as approved by the Court, to be paid to the Death Benefit Fund. Money will be paid to the Death Benefit Fund and used for increased benefits, if the Settlement is finally approved by the Court (including any appeals) and a tax ruling can be obtained from the IRS that the payment will not cause the ILGWU 21st Century ILGWU Heritage Fund to lose its tax exempt status.

On April 4, 2008, Class Counsel filed the Joint Petition and Memorandum in Support of Joint Petition for an Award of Attorney’s Fees and Reimbursement of Litigation Costs and Expenses. A full copy of this filing can be obtained from the link on the right margin.

Reminder: Objections to the Settlement with 21st Century Heritage Fund and Objections to the Fee Petition must be in writing and filed with the Court at United States District Court for the Southern District of New York, 500 Pearl St., New York, NY 10007-1312 and served on Marc I. Machiz at Cohen Milstein, Hausfeld & Toll PLLC, One South Broad St, Suite 1850, Philadelphia, PA 19107, on or before April 22, 2008, and must state the basis for the objection, attaching supporting documentation.

Procedural History:

On September 7, 2004 the court preliminarily approved a partial settlement with all defendants except the 21st Century Heritage Fund, but the court did not at that time agree that Notice to the Class should be sent. Subsequently, on September 12, 2005, the court entered an Order providing for Notice to the Class and approving Notice scheduling a Final Approval hearing for December 14, 2005 and establishing a procedure for class members to object to the settlement. The deadline for Counsel for the Class to file their petition for attorneys’ fees and reimbursement of expenses was November 4, 2005, and the deadline for objections by class members to the settlement or application for attorney's fees and expenses was November 18, 2005.

On December 14, 2005, the Court conducted a Final Approval hearing, and granted the request of certain objectors for an extension of time until January 27, 2006 to supplement their objections to the partial settlement. On March 27, 2007 the Court approved Plaintiffs’ Joint Motion for Final Approval of Partial Settlement and on March 30, 2007 the Court approved Plaintiff’s petition for attorneys’ fees. Please find attached at right a copy of the Court’s Opinion regarding the approval of partial settlement. Certain objectors appealed from the Order approving the settlement. The appeal has been briefed, but argument has not yet been set. The Settlement will not be implemented until the appeal has been resolved and the time to seek further review has run.

On May 5, 2006, the non-settling Defendant, Heritage Fund, filed a Motion for Summary Judgment challenging the standing of the Plaintiffs to seek a remedy for the ILGWU Death Benefit Fund against the Heritage Fund. This motion was denied by the Court on March 29, 2007. Please find attached at right a copy of this Memorandum and Order.

On December, 27, 2007 the parties submitted to the Court for preliminarily approval a Proposed Settlement with Defendant 21st Century Heritage Fund. The Court granted preliminary approval of Settlement with Defendant 21st Century Heritage Fund on January 17, 2008. This settlement provides for a cash payment from the 21st Century ILGWU Heritage Fund of 6.1 million dollars that is already in Escrow earning interest, with the net proceeds of that payment after costs of class notice, taxes and attorneys’ fees and expenses as approved by the Court, to be paid to the Death Benefit Fund. Money will be paid to the Death Benefit Fund and used for increased benefits, if the Settlement is finally approved by the Court (including any appeals) and a tax ruling can be obtained from the IRS that the payment will not cause the ILGWU 21st Century ILGWU Heritage Fund to lose its tax exempt status.

Important Dates regarding Settlement with 21st Century Heritage Fund:

Settlement Administrator shall send the mailing of the Notice by March 5, 2008.

Settlement Administrator shall cause the Summary Notice to be published in the National Edition of USA today by March 19, 2008.

Any member of the Class may appear and show case at the Settlement Hearing as to why the proposed settlement should or should not be approved. Objections are due on or before April 22, 2008.

Class Counsel shall file with the Court and serve on counsel for the Heritage Fund their petition for attorney’s fees and reimbursement of litigation expenses no less than five (5) weeks prior to the Settlement Hearing (i.e. on or before April 4, 2008).

Class Counsel and the Heritage Fund shall file a consolidated Joint Motion for Final Approval and an Order and Final Judgment no less than seven (7) calendar days prior to the Settlement Hearing (i.e on or before May 2, 2008).

The Settlement Hearing shall be held before the Court on May 9, 2008.

Contact:

If you have any questions regarding this action or the Settlement, please contact Cohen Milstein toll free at 1-888-685-0478.

If you have questions relating to the Fund including change of address or beneficiary, please contact:

Michael Hirsch
Amalgamated Life
730 Broadway
New York, NY 10003
mhirsch@amalgamatedlife.com
Toll Free Number: 1-800-636-6159