IMPLEMENTATION OF THE SETTLEMENT IS NOW COMPLETE. THE MATTER HAS BEEN FULLY AND FINALLY RESOLVED PURSUANT TO THE COURT APPROVED SETTLEMENT.
This case has been settled pursuant to a written Settlement Agreement negotiated with the Defendants.
The settlement was approved on November 2, 2006 by the Honourable Mr. Justice Crane of the Ontario Superior Court of Justice. A copy of the Order of the Honourable Mr. Justice Crane is available for review below.
The settlement requires the Defendants to make payment of the aggregate sum of $1.8 million which will then be distributed by counsel to all Class Members on a pro-rata basis in accordance with their Net Investment Losses.
Investors can expect to receive approximately 30% of their original investment back, after taking account of any monies received by way of redemptions and after currency conversion from U.S. to CDN dollars.
Counsel are hopeful that if all timelines are met that there can be a distribution of funds to Class Members by the end of the year.
The Defendants have an option to withdraw from their obligations imposed by the Settlement Agreement in their discretion in the event that one or more Class Members opt-out.
Class Members will be bound by the terms of the Settlement Agreement unless they opt-out of the class proceeding.
By Statement of Claim issued in the Ontario Superior Court of Justice in September, 1998, this action was commenced by 67 named plaintiffs against 20 named defendants. The action was not initially commenced under the Class Proceeding Act but rather as a multi-plaintiff action. The Plaintiffs are all investors in limited partnership units. Six Limited Partnerships were established to promote, develop and to invest in a discounted standby letter of credit type of banking instrument. Every Plaintiff investor lost the capital he or she had invested. The aggregate capital loss and loss of opportunity to all investors is estimated to exceed US$10 Million. The action alleges breach of fiduciary duty, breach of contract, negligence and negligent misrepresentation. The defendants in the action are a financial investment brokerage, financial advisors, a lawyer, two accountants, and each general partner of each of six limited partnerships, all of whom participated in the promotion, sale and/or management of the limited partnership investments.
In March, 2001, the Plaintiffs commenced an action by Statement of Claim in the Ontario Superior Court of Justice under the Class Proceedings Act seeking to convert and certify the action as a class proceeding.
This proposed class action proceeding is particularly timely with the recent advent of unsophisticated investors participating in capital markets.
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