TORONTO, Nov. 28, 2017 /CNW/ - Home Capital Group Inc. ("Home Capital" or "the Company") (TSX: HCG) today announced it has received a draft statement of claim – not yet filed in court -- prepared on behalf of West Face Long Term Opportunities Global Master LP ("West Face"), a Caymans Island limited partnership which opted out of a global settlement of the securities class action earlier this year with Home Capital. The potential claim is based on allegations of misrepresentation. The amount claimed as damages would be $70 million.
The Company believes it has valid defences and, if West Face commences the claim, the Company intends to fully defend its conduct, as well as to investigate the conduct of the various short sellers and the propriety of their actions whether acting alone or in concert with others.
As described in the draft claim, West Face built a significant short position in Home Capital in the spring and summer of 2013. It then reversed its investment strategy, covering its short position between the fall of 2013 and the spring of 2015.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to Home Capital's 2016 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE Home Capital Group Inc.
For further information: Laura Lepore, Assistant Vice President, Investor Relations, (416) 933-5652 [email protected]