In March 2005, FMF Capital Group Ltd. ("FMF") issued securities in an initial public offering ("IPO") to the Canadian public. The IPO was underwritten by a syndicate of 6 underwriters, led by BMO Nesbitt Burns, Inc. ("Nesbitt Burns"), and was effected pursuant to a prospectus. Following the IPO, FMF's securities began to trade over the Toronto Stock Exchange ("TSX").
On January 25, 2006, Siskinds filed a class action in the Ontario Superior Court of Justice on behalf of two individual investors who purchased FMF securities in the IPO, and subsequently over the TSX. The Statement of Claim in the class action names as defendants FMF, the underwriters of the IPO (including Nesbitt Burns), FMF's auditors, certain officers and directors of FMF and others. The Statement of Claim alleges that the prospectus contained misrepresentations, and that, subsequent to the IPO, certain of the defendants issued statements to the investing public that contained further misrepresentations. The plaintiffs seek to act on behalf of two classes of investor: (1) all persons and entities who purchased FMF securities in the IPO, and (2) all persons and entities who purchased FMF securities over the TSX from March 24, 2005 to November 15, 2005 [THE CLASS PERIODS].
A settlement was reached between the parties on November 28, 2006. The Quebec and Ontario Superior Courts approved this settlement by Orders dated March 29, 2007 and April 11, 2007, respectively. A copy of those Orders, along with other documents relating to the settlement of this action, can be viewed below.
The administration of the settlement fund is now complete and all claims have been paid.