Moments ago, we managed to get an update regarding where the State and Gilardi are in the payment process after our continuing and constant discussion with and pressure on them behind the scenes. As with all our updates, we want to pass this information along to you as soon as possible to, at the very least, reassure you that the process is continually moving. Here is the latest:
The State has now (1) paid its employer share of employment taxes required before the funds can be distributed and (2) transferred the entire sum of wages to Gilardi’s secured account. The State’s delay in making these payments and transfers has been the major roadblock to finalizing your payments. With this now out of the way, Gilardi should be able to finalize its tax calculations and mail payments soon afterward, although we should point out that a specific mailing date was not provided in the update we just received. We have asked for the specific date and will update you as soon as we get it.
The initial distribution will be to the 19,222 living class members. Of interest, and certainly part of delay, has been the complexity of dealing with funds for the 1,399 individuals who are eligible to receive funds but died from 2003 to present. After emphasizing that payment to those ready and waiting for their checks has to be prioritized above all other issues, we now have a commitment that Gilardi can move forward with payments to everyone else and we will develop a later time frame and process for the funds of those who have passed away.
Also, we wanted to reassure some of you regarding your concerns that Gilardi is profiting from the interest accumulating on the judgment amount and that such profits may be playing a role in delays in the payment process. Gilardi is not profiting from the interest. The interest is accumulating on the judgment at a rate of 12% and goes to you, the class members to compensate you for the delay between the court entering the judgment and the judgment being paid to you. Although we wish you had never suffered any delays from the State in receiving payments at all, we fought hard to get this condition placed into the court order so that delays do not financially benefit anyone but you.