TORONTO, June 17 /CNW/ - A proposed CDN$40 million settlement in the
Atlas Cold Storage Income Trust class action was announced today. The class
action, which commenced in 2004, alleges that the financial statements of
Atlas Cold Storage Income Trust were misrepresented; causing damages to the
Subject to court approval, the parties in the class action have reached a
settlement whereby the defendants will pay CDN$40 million to the class members
in exchange for releases and a dismissal of the class action. The defendants
do not admit any wrongdoing or liability on their part.
"We are very pleased to reach this tentative agreement," said Harvey T.
Strosberg, Q.C. of Sutts, Strosberg LLP. "We believe that this settlement is
fair, reasonable and in the best interests of the class members."
The action was commenced on behalf of all persons who purchased or
acquired trust units of Atlas Cold Storage Income Trust between March 1, 2002
and August 29, 2003, and held some or all of them at the close of trading on
the Toronto Stock Exchange on August 29, 2003. Atlas Cold Storage Income Trust
was an income trust that intended to pay unit trust holders regular income
distributions and provide them with the opportunity for capital appreciation
of their holdings. The plaintiffs alleged that Atlas' net income for the
fiscal years ended 2001 and 2002 was overstated, thereby causing the trust
units of Atlas to trade at artificially high prices. They also alleged that
some of the defendants breached section 130 of the Securities Act and that the
defendants were negligent causing loss and damage to the class members.
The case was prosecuted by the law firms of Sutts, Strosberg LLP, Groia &
Company Professional Corporation and Koskie Minsky LLP.
About Sutts, Strosberg LLP
Sutts, Strosberg LLP has offices in Windsor and Toronto and is one of the
leading class action law firms in Canada. Sutts, Strosberg LLP has recovered
more than $1 billion for its clients. Its lawyers have been involved in some
of Canada's most important class actions in Canada including the Walkerton
class action, the Money Mart class action and the Hepatitis-C class action
against the Federal and Provincial governments.
For further information:
For further information: Harvey T. Strosberg, Sutts, Strosberg LLP,
(519) 561-6228; visit www.atlasclassaction.com