(now known as Impala Canada Ltd.)
NOTICE OF DISMISSAL OF ONTARIO SUPERIOR COURT OF JUSTICE
A shareholder lawsuit commenced in August of 2016, against North American Palladium, Ltd., n/k/a, Impala Canada Ltd. (“PDL”) in the Ontario Superior Court of Justice. The lawsuit commenced as a proposed securities class action under the Class Proceedings Act, 1992, S.O. 1992, c. 6, alleging claims under the Securities Act, R.S.O. 1990, c. S.5 and pursuant to the common law.
The lawsuit advanced two proposed Classes defined as all persons and entities, other than certain Excluded Persons, (a) who purchased shares of PDL’s securities between July 30, 2014 and April 14, 2015, and who held some or all of those securities at the close of trading on April 25, 2015 (the “statutory claim”); and (b) who purchased shares of PDL’s equity securities after June 17, 2013, and held those shares after April 14, 2015 (the “common law claim”).
The Plaintiffs claimed damages arising from alleged misrepresentations in disclosure documents released by PDL on July 30, 2014, November 5, 2014, and February 19, 2015, pertaining to its financial condition and the possibility of defaulting on its financial obligations with its senior secured lender. PDL announced on April 15, 2015, that it was recapitalizing its senior secured loan.
The lawsuit on behalf of both of the proposed classes is being discontinued. A discontinuance of the lawsuit means that it is not going forward or being pursued.
If you are relying on this action to protect your rights, you should seek your own legal advice immediately.
Discontinuance of the claims means that any applicable limitation periods in respect of these claims, which may have been suspended, will begin running again, and will ultimately expire (if they have not already done so).
Should you have any questions, please contact Andrew Morganti at [email protected] or call (647) 344-1900 or (416) 598-0601.
The Plaintiff alleges that the Defendants published the MD&A and audited financial statements for annual 2014 with misrepresentations by omitting material facts about the probability of the Company breaching the financial covenants with regards to their July 7, 2013 Loan Agreement, and the likelihood of default and corresponding collapse of North American Palladium’s investment quality and share value. The Plaintiff further alleges that that the Defendants negligently or intentionally withdrew the going concern language from the Company’s quarterly financial statements commencing with the publication of its 2014 second quarter financials.
On January 11, 2021, the Plaintiff amended the statement of claim and dismissed the action against North American Palladium’s Auditor, as well as the Individual Defendants. The action continues against North American Palladium. The Court’s Order pertaining to that motion can be viewed here, and the new “Amended Second Fresh as Amended Statement of Claim” can be viewed here