Claim Deadline: January 22, 2018
On February 13, 2017, Claire R. McDonald (“Plaintiff”) commenced an action in the Ontario Superior Court of Justice.
(Southwest Region – London, Ontario) against HCG, Gerald M. Soloway, Robert Morton and Robert J. Blowes (“Defendants”).
The Plaintiff alleged that certain of HCG’s public disclosures released during the Class Period were materially misleading in relation to mortgage origination practices and changes in mortgage origination during the Class Period; which, it is alleged, caused the share price of HCG common shares to trade at artifically high prices (“Action”). The claims being pursued in the Action were claims for damages for losses allegedly suffered as a result of HCG’s alleged misleading disclosures. The Plaintiff claimed the Defendants had liability for those losses.
On June 22, 2017, the Plaintiff and the Defendants entered into a settlement (“Settlement”) of the Action. The Settlement is part of a global settlement to resolve the Action and related enforcement proceeding by Staff of the Ontario Securities Commission (“OSC”) against HCG and others, commenced on April 19, 2017 (“OSC Proceeding”).
The Settlement provides that $29,500,000.00 (“Settlement Funds”), will be paid for the benefit of the Class Members before deductions for legal fees and expenses to administer the Settlement. The Settlement was a compromise of disputed claims and not an admission of liability, wrongdoing or fault on the part of any of the Defendants, all of whom have denied and continue to deny the allegations made against them in the Action.
On June 28, 2017, the Ontario Superior Court of Justice (“Court”) certified the Action as a class proceeding, with the consent of the Defendants. By consenting, the Defendants did not admit any wrongdoing or liability; and, certification by the Court was not a decision on the merits of the Action.