In August 2009, Siskinds LLP filed a class action against Bear Lake Gold Ltd. ("Bear Lake"). Also named as defendants are certain of Bear Lake's current and former officers and directors. The class action sought damages as a result of Bear Lake's July 21, 2009 and July 24, 2009 announcement that it had become aware of serious material inconsistencies in its exploration data relating to its flagship Larder Lake Property. The class action sought damages on behalf of all persons and entities who acquired Bear Lake common shares from July 18, 2006 to the time trading in the stock was halted on July 17, 2009, and who continued to hold some or all of the common stock purchased during that period on July 17, 2009.
In May 2010, the parties reached an agreement to settle the action for $1,305,000. Additionally, Bear Lake has agreed to implement certain corporate governance enhancements and Mr. Bernard Boily, the Company's former VP of Exploration, has agreed not to accept a position as an officer or director of an Ontario reporting issuer for a period of 10 years. The settlement is a compromise of disputed claims and the settlement agreement contains no admission of wrongdoing by Bear Lake or any of the other named defendants, all of whom expressly deny any liability or wrongdoing, and continue to do so. You may view a copy of the Settlement Agreement here: [Settlement Agreement]. It is the intention of the parties to the Settlement Agreement that Class Members' entitlements to compensation will be calculated pursuant to the Plan of Allocation. You may view a copy of the Plan of Allocation here: [Plan of Allocation].
The Settlement Agreement and the Plan of Allocation were approved by the Ontario Superior Court of Justice (the "Court") by order issued on August 10, 2010. In addition, the Court has also approved a Notice which provides information on how Class Members may file a claim for compensation under the Settlement Agreement. Please review the Notice here: [English] [French]. You may also access the Claim Form here: [English] [French].
The claims deadline has now passed. Cheques were mailed to all eligible claimants in January 2012.