To: Canada Lithium Corp. Shareholders
NOTICE OF LEAVE TO PROCEED WITH STATUTORY MISREPRESENTATION CLAIM NOTICE OF CLASS CERTIFICATION
Read this notice carefully as it may affect your legal rights
TORONTO, Aug. 27, 2013 /CNW/ -
WHO THIS NOTICE IS FOR
This notice is directed to everyone who acquired securities (common shares and exchange traded warrants) of Canada Lithium Corp., ("CLQ") from the opening of trading on the Toronto Stock Exchange ("TSX") on October 28, 2010 to the close of trading on the TSX on February 28, 2011 ("Class Period") and continued to hold some or all of those securities as of the close of trading on February 28, 2011.
WHAT THE ACTION IS ABOUT
The Plaintiffs, John Keyton and Hugh Latimer, have commenced an action in the Ontario Superior Court of Justice ("Court") against CLQ and Peter Secker, Charles Taschereau, Mitchell Lavery and Michelle Stone (the "Defendants"). The title of the action is Keyton and Latimer v Canada Lithium Corp., et al., Court File No. CV-12-46293-00CP (Toronto Registry).
The Plaintiffs allege that CLQ's January 24, 2011 prospectus and certain of its other public disclosures were materially misleading as to the volume of mineralized ore and the grade of lithium at CLQ's Quebec Lithium Project in Val D'or, Quebec.
The action was also commenced against Kerry J. Knoll, James Fairbairn, Sheila Pickens, Patrick Mohan, Robert Cudney, Ian MacDonald and Germaine Coombs (the "Standstill Defendants"). By agreement, the claims against the Standstill Defendants were discontinued in 2012.
THE LEAVE TO PROCEED ORDER
On August 6, 2013, the Court granted permission (known as "leave to proceed") to the Plaintiffs to assert, as against the Defendants, the statutory cause of action for secondary market misrepresentations in CLQ's disclosure documents ("Leave Order"). Obtaining leave is a requirement under the Ontario Securities Act and is a preliminary procedural matter.
The Defendants deny that these allegations will be proven at trial.
THE CLASS CERTIFICATION ORDER
On August 6, 2013, the Court also certified the action as a class proceeding (the "Class Action"). Certification is also a procedural matter.
In granting certification, Siskinds LLP was appointed Class Counsel and Messrs. Keyton and Latimer were appointed as the Representative Plaintiffs of the following members of the class:
All persons and entities who acquired securities of CLQ from the opening of trading on the TSX on October 28, 2010 to the close of trading on the TSX on February 28, 2011 and who continued to hold any of those securities as of the close of trading on February 28, 2011. ("Class" or "Class Members")
The Class excludes the Defendants and the Standstill Defendants, their past and present subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors, assigns and any member of the families of the individual Defendants, and the underwriters of CLQ's January 24, 2011 prospectus.
WHAT DO THE TWO ORDERS MEAN?
The two Orders mean that the Court has permitted the action to proceed to trial as a class proceeding, with the Plaintiffs pursuing statutory claims under the Ontario Securities Act on behalf of the Class.
The Plaintiffs seek damages for losses alleged to have occurred when CLQ announced that it was obtaining an independent review of its October 28, 2010 mineral resource estimate for the Quebec Lithium Project in Val D'or, Quebec, which identified geological modeling errors and led to a material reduction in CLQ's mineral resource estimate.
For Class Members who acquired their common shares of CLQ under the January 24, 2011 prospectus, an alternative remedy of rescission (cancellation and refund) of their purchases is sought.
For Class Members who acquired their CLQ securities on the secondary market (e.g. TSX, OTCQX, Omega, etc.) ("Secondary Market Purchasers"), their claims are subject to statutory provisions which limit the amount of compensation that can be recovered from Defendants in all actions asserting similar claims. Although the total amount of damages suffered by Class Members who are Secondary Market Purchasers has not been determined at this stage, it is possible that their total potential damages in this Class Action may exceed the statutory limits.
None of the allegations in the Class Action have been assessed or determined by the Court. The Defendants deny that the allegations will be proven at trial.
The Plaintiffs are only pursuing the statutory claims described above against the Defendants. They will not be pursuing any other statutory or common law claims, including the claims in negligence and negligent misrepresentation originally asserted in the Action. The discontinuance of those claims, which has been approved by the Court, will be effective on the Opt-Out Deadline, defined below.
If you wish to pursue any claims under the Ontario Securities Act or other claims independently against the Defendants and/or the Standstill Defendants, you should immediately seek independent legal advice. To bring your own claims you must exclude yourself (a process known as "opting-out") from the Class Action. Please see further details below.
TO REMAIN IN THE CLASS - DO NOTHING
All Class Members who wish to participate in the Class Action and have all of their claims relating to its subject matter be determined by its result are automatically included in the Class. You do not need to take further action at this time.
As a Class Member, you will be bound by the terms of any judgment or settlement, whether favourable or not, in the Class Action. You may be entitled to share in the amount of any award or settlement recovered. In order to determine if you are entitled to share in the award or settlement, and the amount, if any, of your share, it may be necessary to conduct an individual determination. You will be informed of the implications of, and will have the opportunity to decide if you wish to proceed with, your individual determination in advance.
A Class Member other than the Representative Plaintiffs or an intervener cannot be ordered to pay the Defendants' costs of the Class Action.
IF YOU DO NOT WANT TO BE BOUND BY THE OUTCOME OF THE CLASS ACTION - YOU MUST OPT-OUT
Class Members who wish to pursue an independent action against any of the Defendants regarding any of the factual matters raised in the Class Action, or for other reasons do not wish to be bound by the outcome of the Class Action, must act now by opting out of the Class. Persons who opt out will not be bound by the result of the Class Action and will not be entitled to participate in the distribution of any settlement or judgment that may be obtained in the Class Action.
If you wish to opt out, you must complete a signed letter stating that you elect to opt out of the Class in the Canada Lithium Class Action. You are also required to provide all of the following information:
(i) the number of CLQ securities you held as of October 27, 2010;
(ii) the number of CLQ securities that you purchased and sold during
the Class Period (October 28, 2010 to and including February 28,
2011); (iii) the date(s) on which you purchased and sold these securities; (iv) the price at which you purchased and sold these securities; AND (v) your name, address, telephone number and signature. If you are submitting an opt-out request on behalf of a corporation or other entity, you must state your position and authority to bind the corporation or entity. Your opt-out request must be sent by fax or mail to: NPT RicePoint Class Action Services Inc. Re: Canada Lithium Corp. Securities Litigation P.O. Box 3355 London, ON N6A 4K3 Canada Fax: (519) 432-6544 In order for your opt out request to be valid, it must be postmarked OR received no later than the Opt-Out Deadline (November 25, 2013) and it must contain ALL the requested information. A minor or a mentally incapable Class Member cannot be opted out of the Class without permission of the Court. The Children's Lawyer and/or the Public Guardian and Trustee, as applicable, must receive notice of such an opt-out request. A Class Member who wishes to both opt out and pursue an individual action should also commence their action prior to the Opt-Out Deadline to avoid the possible expiry of limitation periods applicable to claims against the Defendants and the Standstill Defendants which may occur on or after that date. Such persons will have to retain their own lawyer or represent themselves to prove their claims in any such action. CLASS COUNSEL AND LEGAL FEES The Class is represented by Siskinds LLP. Class Counsel is acting on a contingency basis, meaning that they are not being paid fees or disbursements as the Class Action proceeds. In the event that a recovery is obtained in the Class Action, Class Counsel's fees and expenses will be paid out of any settlement or judgment obtained, after a motion to the Court for approval of such fees and expenses. Class Members will not otherwise be asked to pay Class Counsel's fees, disbursements or related taxes. ADDITIONAL INFORMATION This notice was approved by the Ontario Superior Court of Justice. The court offices cannot answer any questions about the matters in this notice. The Statement of Claim, Orders of the courts and other information are available on Class Counsel's website: www.classaction.ca. NOTICE TO BROKERAGE FIRMS Please deliver this notice, no later than November 25, 2013 by email to your clients who purchased CLQ securities during the Class Period and for whom you have valid email addresses. If you have clients who purchased CLQ securities during the Class Period for whom you do not have valid email addresses, please: -- contact NPT RicePoint Class Action Services Inc. to obtain hard copies of this notice for the purpose of mailing the notice to those clients; OR -- provide NPT RicePoint Class Action Services Inc. with the mailing addresses of those clients and NPT RicePoint will mail the notices directly to those clients. All brokerage firms together may cumulatively request up to $15,000 reimbursement for expenses incurred relating to the distribution of this notice to client Class Members. If the cumulative amount requested exceeds $15,000, each individual brokerage firm's request shall be reduced on a pro rata basis. Publication of this notice was authorized by the Ontario Superior Court of Justice Questions relating to the Action should be directed by email or telephone to Siskinds LLP: Nicole Young Siskinds LLP 680 Waterloo Street London, ON N6A 3V8 Tel: 1.800.461.6166 ext. 2380 (toll free) Email: firstname.lastname@example.org SOURCE: Siskinds LLP To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2013/27/c7888.html CO: Siskinds LLP ST: Ontario -0- Aug/27/2013 11:00 GMT