Federal Judge Rules Pennysaver & Opengate Class Actions Be Transferred to California Bankruptcy Court

On December 21, 2015, United States District Court Judge Josephine Stanton ruled that each of the cases against OpenGate and PennySaver filed in state and federal courts in Orange and Los Angeles Counties should be transferred to the bankruptcy court in the Central District of California. The Central District encompasses Orange, Riverside, San Bernardino, Los Angeles, and Ventura counties. We would expect that it will be assigned to a bankruptcy court located in Orange County or Los Angeles County court.

However, at this time we do not yet know whether that means that the case will remain in California, or be transferred to Delaware and become part of the PennySaver bankruptcy proceeding in that jurisdiction. We expect to know the answer to that question in the early part of 2016. We will keep you advised as we obtain more information on that issue. In the meantime, the case against OpenGate will remain on hold until these jurisdictional issues are resolved by the courts.

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