Info class action

Case settled

Mount Real

 

THE CLASS ACTION

 

In the wake of the Corporation Mount Real scandal, the owner of promissory notes issued by Corporation Mount Real filed a Motion for authorization to institute a class action in November 2008 with the Superior court of Québec against:

- ex-senior officers, Lino P. Matteo and Paul D’Andrea;
- accounting firms Deloitte & Touche, L.L.P., BDO Dunwoody, L.L.P. and Schwartz Levitsky Feldman, L.L.P.; and
- B2B Trust and Penson Financial Services Canada Inc.

On August 25th, 2011, the Superior Court granted the Motion for authorization to institute a class action for the class described below.

 

 

ARE YOU PART OF THE CLASS?

 

You are part of the class action if you are a member of the following group:

[Translation] "All persons that as of November 9, 2005, were owner of promissory notes issue by the companies Corporation Mount Real, MRACS Management Ltd., Real Vest Ldt, and Real Assurance Acceptation Corporation."

 

THE SETTLEMENT?

 

Following a settlement conference presided by the Honorable Louis Lacoursière of the Quebec Superior Court in July 2016, an out-of-court settlement was reached between the plaintiff, acting on behalf of the group members and the five corporate defendants, that is the auditing firms and the trustees.

The amount of the settlement is around $ 43 million. The settlement puts an end to the class action against the settling defendants, without any admission of liability. The class action continues against the authors of the fraud, including Lino Matteo who is currently serving an 8 year prison sentence.

The settlement will be administered through theCompanies’ Creditors Arrangement Act(hereafter “CCAA”).

 

WHERE ARE WE NOW?

 

On December 1, Judge Buffoni appointed Andrée Ménard, the class representative, to represent the members in the CCAA proceedings and approved the retainer of TJL and Belleau Lapointe as counsel. This does not affect your rights or obligations, but ensures that you are properly represented in the CCAA proceedings.

On December 1, Judge Buffoni also granted an order approving the filing of a plan of arrangement and its claims procedure and an order appointing Raymond Chabot as the monitor of the CCAA process.

On January 23d 2017, an information session was organized by counsel representing the class members, Trudel Johnston Lespérance and Belleau Lapointe, in which class members had the opportunity to ask questions and raise their concerns regarding the proposed plan of arrangement.

The delay to send in your claim forms expired on Feburary 14th 2017. If you have not yet sent in your claim forms to Raymond Chabot, please do so as soon as possible.

On March 14th 2017, a creditors’ assembly was held where creditors voted and approved the proposed plan of arrangement.

On April 26th 2017, the honourable Jean-François Buffoni approved the Modified Plan of arrangement (hyperlien) as well as the motion to approve class counsel fees and expenses.

 

CALENDAR OF THE UPCOMING STEPS?

 

We are very happy to announce that the claims distribution process has now begun in the Mount Real class action.

In the coming weeks, Raymond Chabot will be sending class members their respective compensations based on the Court approved settlement.

Since November 7, 2017, Trudel Johnston & Lesperance is ensuring the pursuit of this class action. If you have any question, please contact them directly.

 

Chronology

April 2017

The Quebec Superior Court approves the Settlement Agreement with the corporate defendants.

March 2017

Approval of the Plan of Arrangement by the creditors during the creditors’ assembly.

January 2017

An information session is held for the class members.

December 2016

The Quebec Superior Court approves the filing of a Plan of Arrangement and the claims procedure.

July 2016

Negotiations presided by Justice Lacoursière leading to a Settlement Agreement with the corporate defendants.

September 2011

Filing of the Motion to institute proceedings.

August 2011

The Superior Court of Quebec authorizes the class action.

June 2011

On June 16, 17, 20 and 21, 2011 the Motion for Authorization to Institute a Class Action is argued before the Superior Court. The matter is taken under advisement.

November 2008

Filing of a Motion for authorization to institute a class action and to be representative plaintiff.