TSX-V Symbol “ZUN”
CUSIP 98982N 10 5
In October 2011, Siskinds LLP, acting on behalf of two investors in Zungui Haixi Corporation (“Zungui”), commenced an action in the Ontario Superior Court of Justice against: (a) Zungui; (b) Ernst and Young LLP, Zungui’s auditor; (c) Zungui’s former directors, including certain of its former executive officers; and (d) the underwriting syndicate for Zungui’s initial public offering on the TSX Venture Exchange.
The Plaintiffs alleged that Zungui’s initial public offering (“IPO”) prospectus and some of Zungui’s other disclosures were materially misleading. The Plaintiffs claimed damages on behalf of purchasers of Zungui’s shares from August 11, 2009 through to and including August 22, 2011.
There Are Three Court Approved Settlements
The Plaintiffs have entered into Settlements, with (1) Zungui, Michelle Gobin, Michael Manley, Patrick Ryan, Elliott Wahle and Margaret Cornish (“Zungui Settlement”), (2) Ernst and Young LLP (“E&Y Settlement”), and (3) CIBC World Markets Inc., Canaccord Genuity Corp., f.k.a. Canaccord Financial Ltd., GMP Securities LP, and Mackie Research Capital Corporation, f.k.a. Research Capital Corporation (“Underwriter Settlement”).
These settlements have concluded and all claims have been paid.
The Zungui Settlement is for CAD $8 million. A copy of the ZUN Settlement Agreement can be accessed here.
The E&Y Settlement is for CAD $2 million. A copy of the E&Y Settlement Agreement can be accessed here.
The Underwriter Settlement is for CAD $750,000. A copy of the Underwriter Settlement Agreement can be accessed here.
On August 26, 2013 the three Settlement Agreements were approved by the Ontario Superior Court of Justice. You can view the Court’s Reasons for Decision and the Settlement Approval Order here: [Reasons] [Order].