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Frequently Asked Questions









What is this lawsuit about?

The Consolidated Complaint for Violations of the Securities Laws dated February 12, 2007 (the “Complaint”) filed in the Action generally alleges, among other things, that Defendants issued false and misleading press releases and other statements regarding Host America’s financial and operational condition prior to and during the Class Period in a scheme to artificially inflate the value of Host America’s Securities, and/or sold Host America Securities during the Class Period while in possession of material non-public information.

The Complaint further alleges that the Class Plaintiffs and other Class Members purchased Host America Securities during the Class Period at prices artificially inflated as a result of the Defendants’ dissemination of materially false and misleading statements regarding Host America, and assert claims under Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Settling Defendants deny that they did anything wrong.



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How do I know if I am part of the Settlement?

By definition, the Class includes: All persons who purchased Host America common stock or warrants ("Host America Securities") during the period between July 12, 2005 and July 22, 2005, and were damaged thereby.

If one of your mutual funds own shares of Host America Securities, that alone does not make you a Class Member. You are a Class Member only if you directly purchased or otherwise acquired Host America Securities during the Class Period. Contact your broker to see if you have or held Host America Securities.



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What Securities are involved?

This Settlement covers Host America common stock and warrants (“Host America Securities”) purchased between July 12, 2005 and July 22, 2005. In order to have a Recognized Loss, according to the Plan of Allocation, Host America Securities must have been purchased during the Class Period and still owned at the close of trading on July 22, 2005. Here are the relevant Ticker symbols and CUSIP numbers:

Security Ticker CUSIP
Host America Common Stock CAFÉ 44106W100
Host America Warrants CAFEW 44106W118



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What does the Settlement provide?

In exchange for the Settlement and dismissal of the Action, the Settling Defendants have agreed to the payment of $2.45 million to be divided, after taxes, fees, and expenses, among all Class Members who submitted a valid Proof of Claim and Release form postmarked by March 20, 2009.

Your share of the fund will depend on the total Recognized Claims represented by the valid Proof of Claim and Release forms that Class Members send in, the amount and type of Host America Securities you purchased or acquired, and when you acquired and sold them.

By following the instructions on the Plan of Allocation, you can calculate what is called your Recognized Claim. It is unlikely that you will get a payment for all of your Recognized Claim. The payment you get will be a part of the Net Settlement Fund equal to your Recognized Claim divided by the total of everyone’s Recognized Claim. See the Plan of Allocation on pages 11-12 of the Notice for more information on your Recognized Claim.



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How can I get a payment? When?

To qualify for a payment, you must have submitted a Proof of Claim and Release form postmarked by March 20, 2009.

The Court held a Fairness Hearing at 10:00 a.m. on February 26, 2009, at the United States District Court for the District of Connecticut, Abraham Ribicoff Federal Building, 450 Main Street, Hartford, CT 06103, in Courtroom Two. At the Hearing the Court considered whether the Lockhart Settlement is fair, reasonable, and adequate. The Court also decided how much to pay to Plaintiffs’ Lead Counsel. After the Settlement Fairness Hearing, the Court decided to approve the Settlement.



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What am I giving up to get a payment or to stay in the Class?

Class Members who did not exclude themselves from the Lockhart Settlement prior to December 19, 2008 release all “Settled Claims” including “Unknown Claims” against the “Released Parties”. These terms are defined in the Supplemental Notice (Lockhart) of Pendency of Class Action And Settlement, Motion For Attorneys' Fees and Settlement Fairness Hearing.



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How do I get out of the Settlement?

The deadline to request exclusion from the Lockhart Settlement was December 19, 2008. For additional information regarding exclusions and objections, please review the Supplemental Notice (Lockhart) of Pendency of Class Action And Settlement, Motion For Attorneys' Fees and Settlement Fairness Hearing.



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Do I have a lawyer in this case?

The Court ordered that the law firm of Scott + Scott, LLP represent the Class Plaintiffs and the Class Members, including you. These lawyers are called Plaintiffs’ Lead Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.



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How do I tell the Court that I do not like the Settlement?

The deadline to object to the Lockhart Settlement was January 20, 2009. For additional information regarding exclusions and objections, please review the Supplemental Notice (Lockhart) of Pendency of Class Action And Settlement, Motion For Attorneys' Fees and Settlement Fairness Hearing.



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What happens if I do nothing at all?

If you did not file a Proof of Claim and Release form, you will get no money from this Settlement. And unless you excluded yourself no later than December 19, 2008, you will not be able to start a lawsuit or be part of any other lawsuit against the Released Parties about the legal issues in this case, ever again.



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How do I get more information?

For even more detailed information concerning the matters involved in this Action, you may inspect the Court's files, including the pleadings, the Stipulation, the Orders entered by the Court and the other papers filed in the Action, at the Office of the Clerk of the United States District Court, District of Connecticut, Abraham Ribicoff Federal Building, 450 Main Street, Hartford, CT 06103, during regular business hours.



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