Brothers and Sisters,

In the United States District Court Northern District of California. Judge Orrick issued an order in regards to the Equity Reserve. 

 The following are from court transcripts: Case 3:13-cv-0556-who

1. Upon receipt of the day 120 distribution of equity from American, TWU will hold in its American Airlines equity distribution trust account shares equaling 14% of the total number of shares it received from American. These shares will be held to satisfy the potential claims to shares of members of the proposed class in the event that plaintiffs prevail on the merits of their claims and on their motion for class certification, as well as for possible appeals that may yet be filed and cannot be satisfied out of the day 120 distribution, and for administrative and legal expenses related to the trust account and the litigation.

2. No distribution will be made from the reserve to persons who are not plaintiffs or members of the proposed class, other than for administrative and legal expenses related to the trust account and the litigation, or for appeals not yet filed, unless TWU’s motion to dismiss or other dispositive motion has been granted.

3. After day 120, the assets in the trust account will be managed by a professional investment manager and will be invested prudently.

4. Based on these assurances, plaintiffs will not seek a preliminary injunction barring TWU from issuing the equity it receives from American.

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In their complaint, the Plaintiffs indicated that they intended to seek a preliminary injunction barring TWU from issuing all of the equity it receives to ensure that shares would be available for issuance to Plaintiffs and the members of the putative class if a class action is authorized by the court.

Because of these agreements with the Plaintiffs, they will not pursue to stop the TWU from continuing the distribution of equity shares to the membership on day 120. The 14% reserve withholding as ordered by court will be put in a distribution trust account and will be managed by a professional investment manager not the TWU.