Cruise Ship Law

Settlement from Francisco v. NGC Will Support Education

The American Numismatic Association has received a $447,095
donation to support educational programs and produce a much-needed
consumer awareness booklet with helpful information on coin
collecting.

The donation is from the settlement of a class action lawsuit,
Francisco v. Numismatic Guaranty Corporation, concerning First
Strikes designation. While admitting no wrongdoing or liability,
NGC settled the case and discontinued the use of First Strikes,
believing that controversy from the lawsuit would not be in the
best interests of the hobby.

The parties, with the court's approval, agreed that the lion's
share of the proceeds go to the ANA to further support its mission
of collector education.

"This donation allows the ANA to implement new strategies as well
as enhance its delivery of numismatic education to a vastly larger
audience," said ANA President Barry Stuppler. "We are obviously
greatly appreciative of NGC's commitment to best practices in our
hobby, and to its efforts to support education, which is a
fundamental value of our Association."

"The ANA is the hobby's premiere organization, and no one is better
at developing and delivering educational programs," said NGC Chief
Executive Officer Steve Eichenbaum. "Coin collecting is a very
complex hobby and everyone benefits when collectors are
knowledgeable and well educated."

Stuppler said the ANA would soon begin work on an educational
consumer awareness booklet that will include consumer tips as well
as basic information on grading, authentication and conservation.
The booklet also will discuss the minting process and what
constitutes a "first-strike" coin, plus feature a rich frequently-
asked-questions section as well as a comprehensive listing of
helpful resources for collectors.

The booklet will be distributed for free to all ANA convention
attendees, ANA dealers and their customers, attendees of all ANA
club coins shows and events and to all new Association members. Its
contents will be featured and updated regularly on www.money.org.

"We have wanted to produce a consumer booklet like this for years,
but finances were always a concern," Stuppler said. "Everyone in
the hobby as well as those with only a casual interest in coin
collecting will benefit greatly by having easy access to this
information."

Stuppler said the ANA also will include information on "First
Strikes" as part of its curriculum for Summer Seminar grading
classes.

The lawsuit, filed by Thomas Francisco on Nov. 7, 2006 in U.S.
District Court Southern District of Florida, alleged that he and
other similarly situated purchasers of 'First Strikes' coins
nationwide were under the impression that U.S. bullion coins NGC
designated as 'First Strikes' were among the first coins struck by
the U.S. Mint and were, therefore, worth more than the same type
and grade U.S. bullion coins that were not designated as 'First
Strikes.' The plaintiff, who was represented by Miami lawyer and
coin collector Charles Lipcon as well as co-counsel Tucker Ronzetti
and David Pollack, sought injunction relief, restitution, damages
and attorneys' fees.

NGC denied liability and asserted that a clear definition of 'First
Strikes' was contained on its website, that there were a lack of
complaints regarding any confusion over NGC's definition of 'First
Strikes,' and that NGC competitors had previously used the term to
signify coins that were released by the U.S. Mint within 30 days of
issuance.

The parties agreed to mediate the case, which was heard on June 21,
2007, and presented a settlement to the court on July 16. As a
result of that settlement, NGC agreed "to cease designating coins
as 'First Strikes' unless they were certified to be one of the
first coins struck as part of a ceremonial striking by the U.S.
Mint on the first day of minting and to establish a $650,000
settlement fund to be distributed, net of attorneys' fees and
expenses plus the class representation award, to the American
Numismatic Association, for the purpose of educating the public
about coins and terminology."

A check for $447,095.26 was received by the ANA on Feb. 13.

"These funds will enable the ANA to provide invaluable consumer
awareness information to tens of thousands of Americans interested
in collecting coins," Stuppler said. "Our Congressional Charter
states that the ANA shall advance the knowledge of numismatics and
charges the Association to acquire and disseminate trustworthy
information. We take this responsibility very seriously."

The American Numismatic Association is a nonprofit organization
dedicated to educating and encouraging people to study and collect
money and related items. The ANA helps its 32,000 members and the
public discover and explore the world of money through its vast
array of programs including its education and outreach programs,
museum, library, publications, conventions and seminars. For more
information, call 719-632-2646 or visit www.money.org.