Jay Strosberg

The Superior Court of Justice approved a $26.5 million settlement in a securities class action against Penn West Petroleum Ltd. and its officers/directors.

The court emphasized the "zone of reasonableness" analysis for settlement approval, requiring class counsel to provide sufficient evidence, particularly regarding available insurance coverage, to justify the settlement amount.

Leave was granted under the Securities Act and the action was certified for settlement purposes under the Class Proceedings Act.

Class counsel's contingency fees of 33% were also approved.

On a consent motion in a proposed class action concerning ticket resale practices, the court considered certification for settlement purposes and approval of a negotiated settlement under the Class Proceedings Act, 1992.

The action alleged that the defendants’ primary and secondary market ticket sales violated the Ticket Speculation Act through resale pricing and related practices.

The court held that the criteria for certification under s. 5(1) were satisfied, including the existence of an identifiable class and common issue relating to whether the defendants breached the statute.

The proposed settlement provided refunds of $36 per ticket to class members and required changes to the defendants’ ticket resale website practices.

The court concluded the settlement and the requested contingency fee arrangement were fair, reasonable, and in the best interests of the class.

The defendants brought motions for summary judgment to dismiss the plaintiff's putative class action regarding a leveraged charitable donation program, arguing the claim was statute-barred.

The plaintiff alleged he relied on the defendants' tax opinions to participate in the program, which the CRA later disallowed.

The court dismissed the motions, finding a genuine issue for trial regarding when the plaintiff discovered his claim, particularly given the ongoing solicitor-client relationship with the defendant law firm that was representing him against the CRA while potentially in a conflict of interest.