SEC v. Maxwell Fair Fund

On March 27, 2018, the Securities and Exchange Commission (the “SEC”) issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order (the “Order”) against the Respondents. In the Order, the SEC found that, from December 2011 through January 2013, Maxwell, a California-based company that develops, manufactures, and markets energy storage and power delivery products, through its former officers Andrews, Schramm, and DeWitt, engaged in an accounting fraud scheme that improperly recognized over $19 million in revenue from future quarters in violation of U.S. Generally Accepted Accounting Principles. The SEC ordered Maxwell, Andrews, and DeWitt to pay civil money penalties of $2.8 million, $50,000, and $20,000, respectively; and ordered Schramm to disgorge $33,878 and pay prejudgment interest of $6,113 and a civil money penalty of $40,000. Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, the SEC established a Fair Fund so that the civil money penalties could be distributed with disgorgement and prejudgment interest (the “Maxwell Fair Fund”). The Respondents have since paid $2,937,491 with the remainder to be paid by Andrews by March 19, 2019. Any additional funds timely received will be added to the Maxwell Fair Fund for disbursement to investors pursuant to the Plan.

The Maxwell Fair Fund is deposited in an interest-bearing account at the United States Treasury Department’s Bureau of the Fiscal Service. The assets of the Maxwell Fair Fund are subject to the continuing jurisdiction and control of the SEC. The SEC approved the Plan on November 5, 2018, and the SEC retains jurisdiction over implementation of the Plan.

The Order can be found under the Important Documents page or at www.sec.gov/litigation/admin/2018/33-10472.pdf.

The Respondents have paid $2,937,491 to the SEC with an additional $12,500 due by March 19, 2019, for a total expected Fair Fund of $2,949,991 plus accrued interest. The Maxwell Fair Fund is deposited in an interest-bearing account at the United States Treasury Department’s Bureau of the Fiscal Service.

You submitted a valid claim in the related Class Action, In re Maxwell Technologies, Inc. Securities Litigation, Case no. 3:13-cv-00580-BEN-RBB (S.D.Cal.), and have been identified by the Fund Administrator as an Eligible Claimant pursuant to the Plan.

No. There is no claims process in connection with the Maxwell Fair Fund and no claims will be accepted. Rather, the Fund Administrator will identify and evaluate claims submitted in the related Class Action, In re Maxwell Technologies, Inc. Securities Litigation, Case No. 3:13-cv-00580-BEN-RBB (S.D. Cal.), for eligibility under the Plan.

No. There is no claims process in connection with the Maxwell Fair Fund and no claims will be accepted. Rather, the Fund Administrator will identify and evaluate claims submitted in the related Class Action, In re Maxwell Technologies, Inc. Securities Litigation, Case No. 3:13-cv-00580-BEN-RBB (S.D. Cal.), for eligibility under the Plan.

The period during which you must have purchased the Security in order to be considered for eligibility under the Plan. The Recovery Period is February 26, 2012 through March 19, 2013, inclusive.

As a long-established firm, Epiq's electronic systems, software applications, and employee and operational protocols are all designed to afford utmost protection and security for the case information provided to us. Further, Epiq is obligated to fulfill the security requirements mandated by the various court jurisdictions and governmental entities that oversee the various types of cases it administers.

If you purchased shares of Maxwell common stock during the period from February 26, 2012 through March 19, 2013, inclusive, are not an Excluded Party as defined in the Plan, and suffered a loss according to the Plan, you may be eligible for a Distribution Payment from the Maxwell Fair Fund.

Excluded Parties are: Maxwell Technologies, Inc., Van M. Andrews, David J. Schramm, James W. DeWitt, Jr. (collectively, the “Respondents”) and any assigns, heirs, spouses, parents, dependents or controlled entities of any of the Respondents and the Fund Administrator, its employees, and those persons assisting the Fund Administrator in its role as Fund Administrator.

Potential Claimants will be identified, and claims evaluated based on information previously obtained by the Fund Administrator in connection with the related Class Action, In re Maxwell Technologies, Inc. Securities Litigation, Case no. 3:13-cv-00580-BEN-RBB (S.D. Cal.) and not through a claims process.

According to the Plan, you are excluded from participation in the Maxwell Fair Fund if you are:

• Maxwell Technologies, Inc., Van M. Andrews, David J. Schramm, James W. DeWitt, Jr. (collectively, the “Respondents”) and any assigns, heirs, spouses, parents, dependents or controlled entities of any of the Respondents and the Fund Administrator, its employees, and those persons assisting the Fund Administrator in its role as Fund Administrator.

You may contact the Fund Administrator by calling 1-888-266-9212 or by sending an email to info@MaxwellFairFund.com for more information.

The CUSIP for Maxwell common stock during the Recovery Period was 577767106. The ticker symbol is MXWL.

Epiq has been appointed by the SEC as the Fund Administrator in the referenced administrative proceeding to fulfill certain responsibilities more fully described in the Plan. The Order Appointing Fund Administrator can be found under the Important Documents page or at www.sec.gov/litigation/admin/2018/34-83727.pdf.