Apache Corporation – Class Action Settlement

Stephen Flesch et al. vs. Apache Corporation et al.

Court of King’s Bench of Alberta, Action No. 1901-09160

MNP Ltd., has been appointed by the Court of King’s Bench of Alberta (the “Court”) to administer the notice and claims administration process in accordance with the provisions of the Proposed Settlement Agreement of the Apache Corporation Class Action Settlement (“Claims Administrator”).

A proposed settlement (“Settlement Agreement”) has been reached in a class action lawsuit against Apache Corporation, members of its Management Development Committee, and Paramount Resources Ltd., alleging that certain deferred compensation awards were cancelled in breach of contractual agreements with Apache Corporation when Apache Canada Ltd. was sold to Paramount Resources Ltd.

On June 25, 2021, the Court certified the proceeding as a class action. The Defendants’ appeal of that decision was denied by the Court of Appeal of Alberta on November 17, 2022.

The class includes all employees of Apache Canada as of August 18, 2017 who were then participating in Apache Corporation's Omnibus Compensation Plan and had outstanding Awards as defined in that Plan.

If approved by the Court, the Settlement Agreement will provide a USD $7 million fund, less approved costs and expenses, to provide financial compensation to Class Members. The Settlement Agreement proposes that Class Members be compensated on a pro rata basis based on the proportion of the number of deferred compensation awards attributable to each Class Member in relation to the number of deferred compensation awards attributable to all Class Members.

A settlement approval hearing will be held at the Court, Calgary Courts Centre, 601 5^th Street SW, Calgary, Alberta. That hearing is currently scheduled for October 24, 2023. At the hearing, the Court will consider whether the settlement is fair, reasonable, and in the best interests of the Class, and whether to approve the Settlement Agreement. 

Notice of Settlement

The Settlement Agreement was approved by the Court on October 24, 2023. Please refer to the Settlement Approval Order and Notice of Settlement Approval for further information.

Claims Process

Each Class Member seeking compensation pursuant to the Settlement Agreement is considered a potential Claimant (“Claimant”). In order to participate in the distribution of the net settlement funds (“Distribution”) a Class Member must submit a completed claim form (“Claim Form”) to MNP Ltd. (the “Claims Administrator”).

The Settlement Agreement outlines the following deadlines for submission of Claim Forms (please read carefully):

• Initial Claims Deadline – February 27, 2024 – All Claimants who submit a Claim Form on or post marked before this date will be eligible to partake in the Distribution and have the right to dispute the eligible Awards provided by the Claims Administrator.
• Ultimate Claims Deadline – September 27, 2024 – All Claimants who submit a Claim Form on or post marked after the Initial Claims Deadline, but before this date will be eligible to partake in the Distribution, although will NOT have the right to dispute the eligible Awards provided by the Claims Administrator unless otherwise permitted by Class Counsel.

The Claims Administrator will be mailing (and e-mailing if an email address has been provided) the Claim Form to all known class members.

If you do not receive a Claim Form by December 8, 2023, please reach out to the Claims Administrator at 1-855-799-3460 or Email.

You must submit your completed Claim Form to the Claims Administrator by Email or mail to the following:

MNP Ltd., Claims Administrator
2000, 112 – 4 Avenue S.W.
Calgary, AB  T2P 0H3

If you do not submit a Claim Form by September 27, 2024, you will forever give up any claim you have for unvested Apache Awards held on August 18, 2017.

Further details on the Claims Process can be found in the Notice of Settlement Approval.

Distribution of the Settlement Funds (“Distribution Process”)

All distributions of settlement funds for approved claims will be subject to deductions and remittances to Canada Revenue Agency of applicable withholding tax and relevant year end tax slips will be issued by the Claims Administrator.

All class members whose claims were submitted and approved on or before February 27, 2024 were issued a settlement payment on May 28, 2024.  If you submitted a claim prior to February 27, 2024 and did not receive your settlement payment by June 15, 2024, please contact the Claims Administrator. 

The final distribution of any claims received and approved after February 27, 2024 will be paid after the Ultimate Claims Deadline on September 27, 2024. Any residual settlement funds will be distributed in accordance with the Court approved Settlement Agreement.