Notice of Certification and Notice of Hearing for Settlement Approval of the GuestLogix Inc. Securities Class Action
TORONTO, June 25, 2020 /CNW/ - If you are a person or entity, other than an "Excluded Person", who acquired securities of GuestLogix Inc. ("GuestLogix") during the period from June 8, 2015 to and including November 12, 2015, and who held some or all of those securities at the close of trading on November 12, 2015 (defined as the "Class"), then this notice is for you.
In 2016, a proposed securities class action was commenced against GuestLogix and two of its former officers in the Ontario Superior Court of Justice (the "Court"). It is alleged that during the period from June 8, 2015 to and including November 12, 2015 (the "Class Period"), the Defendants made misrepresentations and/or omissions of material fact regarding credit facilities that GuestLogix had entered into and in regard to financial covenants pertaining to those credit facilities. The parties have reached a proposed settlement of the class action, which is subject to approval by the Court (the "Agreement"). The Defendants do not admit any wrongdoing or liability. The Agreement is a compromise of disputed claims. This Notice provides a summary of the proposed settlement.
Under the Agreement, the Defendants will pay or cause to be paid CAD $1,275,000 (the "Settlement Amount") in full and final settlement of all claims against them, including Class Counsel's fees, applicable taxes and expenses, and interest, in exchange for a full release and a dismissal of the class action. The Settlement Amount, less Class Counsel's fees and disbursements, administration expenses and taxes will be distributed to the Class on a pro rata share in accordance with the Court-approved Plan of Allocation. The Agreement and Plan of Allocation may be viewed at https://spark.law/guestlogix/ .
There will be a hearing (the "Approval Hearing") in which Class Counsel will request the Court to approve (i) the Agreement; and (ii) their legal fees and expenses. The Approval Hearing shall take place on August 13, 2020 via video-conferencing methods such as Zoom or by conference call.
At the Approval Hearing, the Court will determine whether the Agreement is fair, reasonable, and in the best interests of the Class. At the Approval Hearing, Class Counsel will also seek Court approval of their request for fees equal to 28% of the Settlement Amount plus reimbursement of their relevant expenses. Class Counsel has been working under a contingency-fee agreement and has not been paid as the matter has proceeded, and has paid all the expenses of conducting the litigation. Class Counsel will be requesting that the legal fees and disbursements be deducted from the Settlement Amount.
Class Members do not have to do anything to stay in the class action. If the Court approves the Agreement and any benefits, including the Settlement Amount become available for distribution to the Class, you will be notified about how to request a portion. If you stay in the action you will be legally bound by all orders and judgments of the Court and will not be able to sue the Defendants regarding the legal claims made in this case. Conversely, investors can opt-out of the proposed settlement and pursue their own action with their own lawyer at their own expense. A copy of the long-form notice providing greater detail about the settlement, including about Class Counsel's fees that will be requested of the Court, your right to oppose the settlement, the hearing of the motion to approve the settlement, and the right to opt-out is available at https://spark.law/guestlogix/. Interested class members may submit their email addresses to the website to stay informed of developments.
Any Class Member may participate in the Approval Hearing to object to the Agreement or comment on the Agreement or Class Counsel's request for fees, so long as they email any objections or comments to Class Counsel at [email protected] no later than August 5, 2020. Class Members who do not email an objection or comment by August 5, 2020 will not be permitted to participate in the Approval Hearing.
SOURCE Spark LLP
Spark LLP, Sarah Petersen, 416-639-2158
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