Revised Notices are being provided to Class Members to clarify that this class action was funded by the Ontario Class Proceedings Fund (“CPF”) and matters related to levy payable to the Class Proceedings Fund in respect of the settlement. The CPF was established as a public interest fund established to assist class action plaintiffs with disbursements and provide them with adverse cost award protection. As part of the legislation that established the CPF, a 10% levy is payable on any monetary award or settlement is made in a CPF-funded class action.
The original notices of this settlement and supporting material on the settlement approval motion included references that all adverse cost risk was borne by Class Counsel. As this was a CPF-funded case, pursuant to section 59.4 of the Law Society Act, the adverse cost risk was in fact borne by the CPF by operation of the statute. In addition to the statutory adverse cost protection, the CPF provided certain approved disbursement funding, but it is noted that Morganti & Co. P.C. funded approximately 90% of disbursements.
The previously published Settlement Notices expressly stated that the gross amount of the Settlement would be reduced by:
- administration fees,
- Case disbursements, and
- Court approved legal fees.
Although the definition of "administration fees" included a 10% levy being paid to the CPF, we are circulating this revised notice to provide more explicit notice with respect to the settlement distribution. The Settlement Amount to be distributed will be reduced as follows.
- administration fees,
- Case disbursements,
- Court approved legal fees, and
- CPF Levy of 10% of the net amount remaining from the Settlement Amount after deducting Administration Expenses, Case Disbursements, Class Counsel Fees, and the Honorarium
Under the settlement, we anticipate that approximately five million, five hundred thousand (CAD $5.5M), excluding administration costs (which includes a 10% levy by the Ontario Class Proceedings Fund) and legal fees, will be paid out to investors that purchased Allied Nevada Gold Corp.’s shares on May 17, 2013. We are currently adjudicating your Claim Form and Supporting Documentation and will subsequently provide a Claim Determination Notice on your eligibility as an Authorized Claimant.
On May 17, 2013, Allied Nevada Gold Corp. conducted a secondary public offering at a price of USD $10.75 (CAD $11.04) per share. The Canadian shareholder class action is on behalf of the 254 investors that purchased 7,271,373 shares in this secondary public offering. The actual numbers are lower, as there are a substantial number of "excluded" investors because of their affiliation to the defendants.
Pursuant to the Plan of Allocation, the definition of “Class Member” is as follows:
‘Class Member’ means all persons, other than Excluded Persons, who acquired common shares of Hycroft pursuant to the SPO, during its distribution period ending May 17, 2013, and continued to hold those common shares until at least July 22, 2013.
To participate in this Settlement, an investor must have kept the shares until, at least, July 22, 2013, and the maximum recovery was measured to be CAD $0.54 per share. For shares held after August 7, 2013, the maximum recovery was measured to be CAD $2.54 per share.
The gross amount of the Settlement was CAD $5,500,000, measured as of March 15, 2021. The reasonableness of this Settlement amount is further discussed within the affidavit of Andrew Morganti, a lawyer with over 20 years of experience representing investors in class actions in Canada and the United States, that was provided to His Honourable Justice Edward Belobaba. Mr. Morganti's answers to the Court's questions to his affidavit are available online in PDF format on the website at https://www.canadianalliednevadasecuritiessettlement.ca/docs/Plts-Supplemental-Written-Submissions.pdf.
As a result of this further information, the outstanding question for you is whether you wish to continue to participate in the Settlement or Object to the Settlement and/or the Class Counsel Fees and Honorarium.. Please note: the act of Objecting does not preclude you from submitting a Claim Form, or continuing with a previously submitted Claim Form.
By March 7, 2022, kindly inform the Claims Administrator of your decision to participate in the Settlement or Object by emailing Trilogy Class Action Services at . Information regarding on how to proceed with an Objection can be found at https://www.canadianalliednevadasecuritiessettlement.ca/objections. You may ignore this message if you have already notified the Claims Administrator of your decision.
It is important that Class Members and Claimants check the website and/or log into the online claims administration portal at https://portal.canadianalliednevadasecuritiessettlement.ca on a regular basis for updates in regards to the claims administration and their individual Claim Form.