TORONTO, Dec. 21, 2017 /CNW/ - The Plaintiffs in the securities class actions involving Poseidon Concepts Corp ("Poseidon") have reached a settlement agreement with Poseidon's former directors and officers and certain of its related entities. The settlement is subject to approval of the Court of Queen's Bench of the Province of Alberta ("Alberta Court") and recognition by the class action courts in Ontario and Québec and bankruptcy and class action courts in the United States.
The class actions arise from the alleged misrepresentations in Poseidon's disclosure documents issued in 2011 and 2012, including with respect to the recognition of allegedly improper revenues and accounts receivable. Poseidon, which formerly traded on the Toronto Stock Exchange under ticker symbol ("PSN"), commenced insolvency proceedings in April 2013.
The class actions were brought against Poseidon, certain of its former directors and officers, certain of its related entities, its auditors, KPMG LLP, and the financial institutions that underwrote a primary market offering of Poseidon's common shares in January 2012. Concurrently, legal actions have been brought by various stakeholders of Poseidon, including its secured lenders, against Poseidon and other persons and entities involved with Poseidon's disclosures.
Subject to obtaining the necessary Court approvals, the settlement agreement will resolve the class action, as well as certain other legal claims, against Poseidon's directors and officers and certain of its related entities. The claims against Poseidon itself, its auditors and its underwriters are not released by the settlement. The settlement agreement does not constitute an admission of liability on the part of the settling defendants, who dispute the claims.
The settlement agreement is being presented as part of a plan of compromise and arrangement filed with the Alberta Court under the Companies' Creditors Arrangement Act. A hearing will be held on February 12 and 13, 2018, during which the Alberta Court will consider whether the proposed plan of compromise and arrangement is fair and should be approved. If you are an investor in Poseidon securities and wish to object to the settlement, you must register your objection by no later than January 26, 2018. For further details, please consult the notice available here (English) and here (French).
The Plaintiffs have been appointed representatives for Poseidon's investors by Order of the Alberta Court, and are represented by the law firms of Siskinds LLP, Jensen Shawa Solomon Duguid Hawkes LLP, Paliare Roland Rosenberg Rothstein LLP and Siskinds Desmeules, Avocats.
For further information regarding these proceedings visit http://www.siskinds.com/poseidon-concepts-corp/.
SOURCE Siskinds LLP