TORONTO--(BUSINESS WIRE)--A settlement has been reached in the putative class action against “Barkerville Gold Mines Ltd.”, TSXV: “BGM” pursuant to which the action will be dismissed if the settlement is approved by the Court. The putative class consists of all persons, other than Excluded Persons, who acquired “Barkerville Gold Mines Ltd.”, TSXV: “BGM” securities during the period from and including June 28, 2012 to and including October 8, 2013, and who held some or all of those securities at the close of the market of October 8, 2013.
The claim alleged that BGM released statements containing misrepresentations about the mineral resource estimates for the Cariboo Gold Project, which resulted in the share price being artificially inflated. The plaintiff was seeking damages, pursuant to Ontario’s Securities Act. The Defendants argued that the limitation period for every alleged misrepresentation expired three (3) years from the date on which the document containing the alleged misrepresentation was first released and/or the oral statement was first made. On September 1, 2017, a court decision was released that supports the argument that the plaintiff’s claim against BGM is time-barred by section 138.14 of Ontario’s Securities Act.
Rather than litigating a claim that appears at first instance would likely fail and result in substantial adverse cost awards against the investors and years of appeals, the parties reached an agreement to settle the dispute by dismissing the claim in exchange for a modest payment. In a separate motion, Class Counsel will ask the Court to approve the payment of fees and disbursements, interest and taxes to Class Counsel. Due to the limited monetary amount of the settlement, settlement funds will not be distributed to Class Members, but rather any amounts over and above amounts approved to be paid to Class Counsel will be provided in part as a cy près to the Investor Protection Clinic at Osgoode Hall Law School. Investors can opt-out of the settlement and pursue their own claim with their own lawyer at their own expense. A copy of the long-form notice providing greater detail about the settlement, Class Counsel’s fees that will be requested of the Court, your right to oppose the settlement, the hearing to approve the settlement, and the right to opt-out is available at:
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