Bankrate Fair Fund
Bankrate Fair Fund SEC Admin. Proc.
File No. 3-16786 & 3-16787

Frequently Asked Questions


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  • The The U.S. Securities and Exchange Commission’s Division of Enforcement has prepared the Plan of Distribution (the “Plan”) pursuant to Rule 1101 of the Commission’s Rules on Fair Fund and Disgorgement Plans (“Commission’s Rules”), 17 C.F.R. § 201.1101. The Plan proposes for the distribution of the funds collected from Bankrate, Inc. (“Bankrate”) and Hyunjin Lerner, CPA (“Lerner”) in the above-referenced matters, as well as funds received in a related district court proceeding.

    On September 8, 2015, in two related settled administrative proceedings the Commission issued separate orders (collectively, the “Orders”), against Bankrate and Lerner (collectively, the “Respondents”) finding that they violated the federal securities laws. The Commission’s Orders arose out of substantially similar facts and occurred within a subset of the time period as the violations alleged in a related class action (the “Class Action”).  In the Orders, the Commission found that, during the second quarter of 2012, Bankrate, through its chief financial officer, Edward DiMaria (“DiMaria”), vice president and director of accounting, Matthew Gamsey (“Gamsey”), and vice president of finance, Lerner, intentionally manipulated its financial results to meet and/or exceed analyst consensus estimates for key financial metrics. As a result of the manipulation, Bankrate materially overstated its financial results for the second quarter of 2012.

  • In total, $15,473,774.56 was paid into the Fair Fund. The Fair Fund is subject to the continuing jurisdiction and control of the Commission and the Fair Fund is currently on deposit in a Commission designated interest-bearing account at the United States Department of Treasury (“U.S. Treasury”) Bureau of Fiscal Service (“BFS”). Other than potential interest income from the BFS investment, the Commission does not anticipate that the Fair Fund will receive any additional funds. If any additional funds are received, those funds will be added to the Fair Fund for distribution to harmed investors, or be sent to the U.S. Treasury and not distributed, at the discretion of the Fund Administrator (defined below). All BFS fees will be paid by the Fair Fund.

  • On January 18, 2018, the Commission issued an order appointing JND Legal Administration (“JND”) as the fund administrator (the “Fund Administrator”) of the Fair Fund.  You can review and download the Fund Administrator Order from the "Important Documents" tab of this website or request a copy from the Fund Administrator.

  • The Plan sets forth the methodology and procedures for distributing the Net Available Fair Fund. The allocation methodology is substantially similar to the court-approved methodology developed for the Class Action. The Fund Administrator and Commission staff have concluded that distributing funds pursuant to the Plan, including but not limited to its Eligible Loss Amount calculation and pro-rata distribution formula, is a fair and reasonable way to compensate investors injured as a result of the Respondents’ conduct.

  • Bankrate common stock from August 1, 2012 through October 9, 2014, inclusive, including investors who purchased shares in the March 2014 secondary offering of Bankrate common stock.

  • All persons (other than Excluded Parties) who purchased, acquired, or were gifted as compensation Eligible Securities during the Relevant Period, including all Class Action Authorized Claimants, who have an Eligible Loss Amount equal to or greater than the Distribution De Minimis Amount.

  • (a) Respondents; (b) members of the immediate family (spouse or children) of any Respondent; (c) any person who was an officer or director of Bankrate during the Relevant Period; (d) any firm, trust, corporation, officer, or other entity in which any Respondent has or had a controlling interest; and (e) Bankrate’s directors’ and officers’ liability insurance carriers, and any affiliates or subsidiaries thereof.

  • The Fund Administrator shall distribute the Net Available Fair Fund to all Eligible Claimants only after all timely submitted Proof of Claim Forms have been processed and all Claimants whose claims have been rejected or disallowed, in whole or in part, have been notified and provided the opportunity to cure pursuant to the procedures set forth above.  The sum of claims paid to an Eligible Claimant from the Class Action and from the Fair Fund shall not exceed the Eligible Claimant’s total losses.  The Fund Administrator shall adjust the distribution amount from the Fair Fund in order to avoid payment of a windfall by subtracting the Class Action payment from the Eligible Claimant’s Out of Pocket Loss.

  • The Fund Administrator shall oversee the administration of the claims, procedures, and distribution as provided in this Plan. The Fund Administrator shall review all submitted claims and supporting documentation and make determinations under the criteria established herein as to the eligibility of Claimants to recover monies and the amount of money to be distributed from the Net Available Fair Fund to Eligible Claimants.

  • On an on-going basis, after the first Notices are mailed but before the Claims Bar Date, the Fund Administrator shall continue to supply the Notices and Proof of Claim Forms to persons who contact the Fund Administrator requesting a copy via mail, phone, or email.

  • Additional information can be found by visiting the “Important Documents” tab at the top of this webpage and by contacting the Fund Administrator toll free at 1-888-921-0721, by sending an email to, or by mailing a letter to:

    Bankrate Fair Fund
    c/o JND Legal Administration
    PO Box 91229
    Seattle, WA 98111


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Bankrate Fair Fund
c/o JND Legal Administration
P.O. Box 91229
Seattle, WA 98111