Motion seeking court approval of a proposed settlement and class counsel fees in a securities class proceeding.
The action alleged that a forestry company and its officers issued materially misleading financial statements and prospectus disclosures, contrary to Canadian generally accepted accounting principles, which artificially inflated share prices.
The claims included negligence, negligent misrepresentation, and statutory causes of action under the Securities Act and the Canada Business Corporations Act.
After arm’s‑length negotiations and mediation, the parties reached a $1.9 million settlement funded by the defendants’ insurer.
The court held the settlement was fair, reasonable, and in the best interests of the class, and approved both the settlement and reduced contingency fees.
