Notice of Certification and Authorization and the Granting of Leave to
proceed with Statutory Secondary Market Misrepresentation Claims
Read this notice carefully as it may affect your legal rights
LONDON, ON, May 16, 2013 /CNW/ - This notice is directed to all persons,
wherever they may reside or be domiciled, who sold shares of Protective
Products of America, Inc. ("PPA") during the period from and including
October 8, 2009 to and including January 13, 2010 (the "Class Period")
or who held shares of PPA at the end of the Class Period, other than
certain excluded persons associated with the defendants described below
(the "Class Members").
THE CERTIFICATION ORDERS
On April 24, 2013, the Ontario Superior Court of Justice certified the
action Michael Frank et al. v. R. Patrick Caldwell et al., Court File No. CV-10-415821-CP00 (the "Class Action") as a class
proceeding and appointed Michael Frank, Sheldon Zamick, and Norman
Spurgeon as representative plaintiffs.
The defendants in the Class action are R. Patrick Caldwell, Larry
Moelller, Neil E. Schwartzman, Jason A. Williams, Brian L. Stafford,
Henry H. Shelton, Frank E. Jaumot, Keith J. Engel, Richard P. Torykian,
Sr., Charles E. Peters, Jr., and Deon Vaughan. (collectively, the
The Class Action has been certified on behalf of the following class:
all persons, wherever they may reside or be domiciled, who sold shares
of PPA or held shares of PPA at the end of the Class Period, except for
PPA's past or present subsidiaries, affiliates, legal representatives,
heirs, predecessors, successors and assigns, and all members of the
Defendants' immediate families, and any entity in which any of the
Defendants has or had a controlling interest
The certification order means that the Class Action may proceed to trial
as a class action involving claims under securities legislation
described below for damages for misrepresentations in PPA's disclosure
documents and public oral statements and for its failure to make timely
disclosure of a material change.
Certification is a preliminary procedural matter. The merits of the
claims in the Class Action, or the allegations of fact on which the
claims are based, have not been finally determined by the courts. The
Defendants deny that the claims in the actions have merit.
THE LEAVE ORDERS
On April 24, 2013, the Ontario Superior Court of Justice also granted
leave to the plaintiffs in the Class Action to commence an action under
the secondary market liability provisions of the Ontario Securities Act and the analogous provisions of the securities legislation of each
other Canadian jurisdiction.
The only claims being pursued in the Class Action are claims under the
secondary market liability provisions of the Securities Act of each Canadian province and territory. These claims may be subject
to damages caps, which limit the amount of damages that can be
recovered from the Defendants. Class counsel believes that the
potential damages in this case exceed the damages caps. If you wish to
pursue other claims against the Defendants relating to the matters at
issue in the Class Action, you should immediately seek independent
legal advice because these claims will be compromised if you do not opt
DO NOTHING IF YOU WANT TO PARTICIPATE IN THE CLASS ACTION
Class Members who want to participate in the Class Action are
automatically included and need not do anything at this time.
YOU MUST OPT OUT IF YOU DO NOT WANT TO PARTICIPATE IN THE CLASS ACTION
Class Members who do not want to participate in the Class Action must
opt out. If you want to opt out of the Class Action, you must send a signed
letter stating that you elect to opt out of the class in the Class
Action and provide the additional information described below.
In order for your opt out request to be valid, it must include all of
the following information: (i) the date(s) on which you purchased and
sold PPA shares; (ii) the number of shares purchased and sold; (iii)
the price at which you purchased and sold PPA shares; and (iv) 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 provide your authority to bind the corporation
Your opt out request may be sent by fax or mail to:
NPT RicePoint Class Action Services
Re: PPA 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 September 1, 2013 and it must contain all the
Each Class Member who does not opt out of the Class Action will be bound
by the terms of any judgment or settlement, whether favourable or not,
and will not be allowed to prosecute an independent action against any
of the Defendants for any of the factual matters raised in the Class
Action. If the Class Action is successful, 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. If there is an individual determination,
there may be costs payable by you if it is determined that you are not
entitled to share in the award or settlement. You will have the
opportunity to decide if you wish to proceed with your individual
determination before it begins.
No person may opt out a minor or a mentally incapable member of the
class without permission of the courts after notice to The Children's
Lawyer and/or the Public Guardian and Trustee, as appropriate.
A Class Member who opts out will not be entitled to participate in the
Class Action and will not be entitled to share in the amount of any
award, if the Class Action are successful, or in any settlement
achieved, if any.
CLASS COUNSEL AND LEGAL FEES
The plaintiffs and the class in the Class Action are represented by
Rochon Genova LLP.
Rochon Genova LLP is acting on a contingency basis, such that legal
fees, disbursements and applicable taxes will be payable only in the
event of success in the Class Action. Rochon Genova LLP is also paying
all disbursements incurred in the Class Action.
In the event of success in the Class Action, Rochon Genova LLP will make
a motion to the courts to have their fees and disbursements approved.
As a Class Member, you will not be required to pay any costs in the
event that the Class Action is unsuccessful.
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 order of the Court and other information is available on
class counsel's websites at www.rochongenova.com.
The publication of this notice was authorized by the Ontario Superior
Court of Justice
SOURCE: Rochon Genova LLP
For further information:
Questions relating to the Ontario Action should be directed by email or telephone to Ontario class counsel:
Rochon Genova LLP
121 Richmond Street West, Suite 900
Toronto, ON M5H 2K1
Tel: 1.866.881.2292 (toll free)