TORONTO, Jan. 17, 2018 /CNW/ - Home Capital Group Inc. ("Home Capital" or the "Company") (TSX:HCG) today announced it has received a statement of claim issued by Marc Cohodes, who opted out of a global settlement of the securities class action in 2017 with Home Capital. The claim is based on allegations of misrepresentations and oppressive conduct and seeks $4 million in damages.
As described in the claim, Mr. Cohodes built a short position in Home Capital in 2014. Mr. Cohodes claims to have altered his investment strategy, covering at least some of his short position between March and June of 2015.
The Company believes it has valid defences to these claims and fully intends to defend its conduct. The Company looks forward to examining the conduct of Mr. Cohodes.
Holders of 1,717,600 common shares eligible for the global settlement opted out of the settlement in 2017. The claim by Mr. Cohodes relates to 91,800 of those shares. Including this claim, the Company has now received claims from parties representing 1,717,400 of the common shares eligible for the global settlement whose owners opted out of the settlement.
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 first 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]