TORONTO, April 23, 2018 /CNW/ -- The Court-appointed representatives of a class of shareholders of Poseidon Concepts Corp. ("Poseidon") have reached a global settlement with all of the defendants in the proposed securities class actions arising from the circumstances of Poseidon ("Global Settlement").
The Global Settlement is currently subject to the approval of the Court of Queen's Bench of the Province of Alberta ("Alberta Court") and recognition by Ontario, Québec and United States Courts, which will be asked to dismiss the proposed class action claims.
The Global Settlement supersedes the partial settlement with Poseidon's directors and officers and certain of its related entities, which was previously announced on December 21, 2017.
Subject to Court approval and certain other preconditions, the Global Settlement compromises and finally releases all the claims asserted against and by Poseidon, its directors and officers and certain of its employees, Poseidon's former auditor, Poseidon's underwriters and Peyto Exploration & Development Corp. The Global Settlement does not constitute an admission of liability on the part of the defendants, who dispute the claims.
As consideration for the Global Settlement, the defendants will pay at least $34,632,800 and up to $36,606,200 for the benefit of a class of Poseidon's shareholders. The manner of distribution of the settlement proceeds will be determined by further Court order to be sought in the future after the necessary approvals have been obtained and the settlement has become final. A further notice will be issued to the investors when the settlement proceeds are available for distribution.
The litigation arises from 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 and was delisted from the Toronto Stock Exchange in May 2013.
The Global Settlement is being presented as part of a plan of compromise and arrangement filed with the Alberta Court under the Companies' Creditors Arrangement Act. A sanction hearing will be held on May 4, 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 Global Settlement, your only opportunity to object to it is at the sanction hearing. If you want to object, you must register your objection by no later than May 3, 2018 at noon, Calgary time. If the Global Settlement is approved, all members of the class will be bound by it. For further details, please consult the notice available [here] (English) and [here] (French).
"We are pleased with this result for our clients and the shareholders," said Daniel Bach, a partner at Siskinds LLP. "Poseidon's unfortunate circumstances caused significant financial losses to its investors, and its insolvency added multiple layers of complexity to the litigation. The settlement represents a significant recovery for the benefit of the shareholder class," said Robert Hawkes, a partner at Jensen Shawa Solomon Duguid Hawkes LLP.
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