(TSX: THO; NYSE: TAHO; ISIN: CA8738681037; CUSIP: 873868103)
On October 4, 2018, a proposed class proceeding was commenced in the Ontario Superior Court of Justice (Toronto Region) against Tahoe Resources Inc. (Tahoe) and its former CEO and director, Ronald W. Clayton (Action). Siskinds LLP is counsel to the plaintiff in the Action.
The Action alleges that a press release issued by Tahoe on May 24, 2017 contained misrepresentations. The press release concerned the commencement of an action against the Guatemalan Ministry of Energy and Mines (MEM) by Centro de Acción Legal Ambiental y Social de Guatemala (CALAS), in the Supreme Court of Guatemala. It is alleged that the May 24, 2017 press release did not provide adequate disclosure about the CALAS proceeding. Specifically, the Action alleges among other things that:
- Tahoe’s Guatemalan operating subsidiary, Minera San Rafael S.A., had been named as an interested third party in the proceeding commenced by CALAS;
- CALAS was seeking to suspend the Escobal mining license provisionally and until MEM met its consultation obligations to the Xinka indigenous people of Guatemala;
- there was a material risk that the Escobal mining license would be provisionally suspended, as in fact occurred; and
- there was a material risk that the Escobal mining license would be suspended beyond the period of the provisional suspension, as also in fact occurred.
It is alleged that Tahoe was required to disclose those facts in its May 24, 2017 press release but failed to do so.
The action alleges that Tahoe shareholders who acquired its securities from and including May 24, 2017 to and including July 5, 2017 (Class Period) suffered damage as a result of the alleged misrepresentations. Subject to certain exclusions, the proposed class includes all persons and entities, wherever domiciled, who acquired Tahoe securities during the Class Period.
The claims being pursued in the Action are claims for damages for losses allegedly suffered as a result of Tahoe’s alleged misleading disclosure. The plaintiff claims Tahoe and Mr. Clayton have liability for those losses.
To receive updates on this case, please fill out the form located at the bottom of this page.
For inquiries, please complete the form below or email [email protected]. For telephone inquiries, please call 1-800-461-6166.
Institutional investors with specific inquiries should contact:
Garett Hunter
Tel: +1 519-660-7802
Toll Free: +1-800-461-6166
[email protected]
Developments
The Plaintiff's motion for certification and leave to proceed under the Securities Act was heard on July 21st and July 22nd, 2021. The Plaintiff achieved complete success on his motion. By order dated August 26, 2021, the Ontario Superior Court of Justice granted leave to commence a secondary market misrepresentation action under section 138.3 of the Securities Act against the Defendants. The Court also certified the action under the Ontario Class Proceedings Act, 1992. You can access the Court’s full decision here.
FAQs
What is a Class Action?
A class action is a lawsuit that is brought by one or more persons on behalf of a larger group of people whose claims share common legal and/or factual issues. Such people are commonly referenced as “class members.” Class actions provide a cost-effective way for groups of people with common interests to pursue a legal claim.
Who is affected by the Tahoe class action?
You are affected by this proposed class action and may be a “member” of the proposed class if you acquired Tahoe securities from and including May 24, 2017 through to and including July 5, 2017, and continued to hold some or all of those securities as at the close of trading on July 5, 2017.
Do I have to pay anything to participate in the class action?
No. Class counsel are paid a percentage of any settlement or court award. Class counsel fees are subject to court approval.
What does “certification” mean?
Certification is the motion where the court determines whether the action can properly be pursued as a class action on behalf of the class members. In certifying the lawsuit as a class action, the court will consider factors such as whether the claims of the class members raise common legal and/or factual issues and whether a class action is the preferable method of pursuing the claims (as opposed to other methods, such as individual actions). After the court certifies the lawsuit as a class action, usually, notices will be disseminated to the class members. These notices will advise the class members that the lawsuit has been certified, and they will also set out the issues that the court will be asked to determine on behalf of the class members. At this stage, the court will also fix a time period during which the class members may exclude themselves from the class action lawsuit by filing an “opt-out” form. Class members who do not opt out from the class action by the deadline that will be fixed by the court will be bound by the outcome of the class action.
How can I join the class action?
There are no steps required to “join” this class action. Assuming you fall within the scope of the class definition, you would be automatically included in the class action if it is certified unless you opt out when and as told you can. Notices will be issued to the affected persons after the court certifies the class action.
Can I exclude myself from the class action?
Yes. After the class action is certified, you will be given an opportunity to opt out (exclude yourself from the class action). If you opt out, you will not be able to participate in any settlement or court award achieved in the class action, but you may be able to pursue your claim on an individual basis. Generally speaking, the class members would only want to opt out of a class action if they intend to bring individual litigation. In most circumstances, it is more cost effective to participate in a class action because the legal costs are spread over a large number of people, making it more economic for any individual class member to obtain relief.
What should I do to protect my rights?
To protect your rights, you should:
- Keep records of any purchases and sales of the securities of Tahoe Resources.
- Register using the form below in order to receive updates about this proposed class action. By submitting your information to Siskinds, you do not retain Siskinds as your lawyers, nor do you incur costs in connection with this class action.
- While the class action is pending, notices will be disseminated to the class members advising that they should take certain steps by specific deadlines in order to preserve their rights. This information will also be made available on Siskinds’ website. These deadlines will usually be fixed by the courts, and will need to be adhered with in order to protect your rights.
I still have a question. Who should I contact?
If you have a question, please use the contact form provided on this page.