TORONTO, March 14, 2017 /CNW/ - Home Capital Group Inc. (the "Company",TSX: HCG) today made the following disclosure regarding legal and regulatory matters.
On February 10, 2017 the Company disclosed it had received an enforcement notice from staff of the Ontario Securities Commission (OSC) relating to the Company's disclosure in 2014 and 2015 regarding the impact of the Company's findings that income information submitted on some loan applications had been falsified, and the subsequent remedial steps taken by the Company, including the suspension of mortgage brokers and brokerages.
Subsequently, staff of the OSC has issued enforcement notices to several current and former officers and directors of the Company, relating to that disclosure and, in some instances, trades in the Company's shares. The individuals have the opportunity to respond to the notices before OSC staff determines whether to commence proceedings.
As previously stated, the Company believes that its disclosure satisfied applicable disclosure requirements.
The Company also announced that a Statement of Claim and Notice of Action have been filed with the Ontario Superior Court of Justice against the Company and three of its officers or former officers regarding a proposed class action lawsuit. The Statement of Claim seeks permission of the Court to commence a class action proceeding for alleged misrepresentations in the Company's public disclosure in 2014 and 2015. This proposed class action has been previously disclosed by the law firm seeking to pursue it.
The Company believes the claim is unfounded and intends to vigorously defend the claim.
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: Media: Boyd Erman, Longview Communications Inc., (416) 649-8007, [email protected]; Investors: Laura Lepore, Assistant Vice President, Investor Relations, (416) 933-5652, [email protected]