Aspen Group Resources Corp. Class Action

The content of this page has not been approved by the Court nor does it constitute legal advice. It is for the purpose of providing general information only.

UPDATE:   On September 15, 2014, the settlement agreement entered into with
WeirFoulds was approved by the Court.

Nature of the Proceedings

On February 12, 2008, Harrison PensaLLP issued a Fresh as Amended Statement of Claim on behalf of all former security holders of Endeavour who held common shares, Series I and Series II warrants of Endeavour which were tendered and accepted or otherwise acquired by Aspen pursuant to its November 23, 2001 take-over bid.

It is alleged that the Defendants breached the Ontario Securities Act by making material misrepresentations and omitting material information from a take-over bid circular dated November 23, 2001 published in connection with the take-over of Endeavour by Aspen Group. It is also alleged that the Defendants failed to give proper and required notice of material changes that took place between November 23, 2001 and the expiry of the take-over bid.

The action claims damages for negligence and for breach of the Ontario Securities Act as a result of alleged misrepresentations in the take-over bid circular.

Harrison PensaLLP is working in concert with Bates Barristers in the prosecution of this matter. 

Status of the Proceedings

By Order of the Court, the action has been certified, which means that the case was allowed to proceed as a class action. As part of the certification process, Charles Allen was appointed as the representative plaintiff on behalf of the following class:

“All holders of the common shares, Series I special warrants and Series II special warrants of Endeavour Resources Inc. (collectively “Endeavour Securities”) that were tendered and accepted or otherwise acquired by Aspen Group Resources Corporation (“Aspen”) pursuant to Aspen’s take-over bid dated November 23, 2001.”

Please note that the certification order is procedural in nature and that no findings or decisions have been made by the Court on the merits of the case.

Class members were also provided with the opportunity to opt-out of (be excluded from) the action. The deadline for class members to exclude themselves has now passed. If you did not opt-out of the class action, you are now part of the class. 

Settlement agreements have been reached with Lane Gorman Trubitt L.L.P. (auditor) and Lenard Briscoe (director of Aspen). LGT has agreed to pay $325,000 all inclusive while Briscoe has agreed to pay $235,000 all inclusive towards the settlement of the action in exchange for full and final releases in their favour. LGT and Briscoe have agreed to answer relevant questions surrounding issues in the litigation in advance of the trial. LGT and Briscoe deny their liability in the action and the settlements represent a compromise of disputed claims. Those settlement agreements were previously approved by the Court.

WeirFoulds LLP Settlement

A settlement agreement has been reached with the defendant, WeirFoulds LLP (“WeirFoulds”). WeirFoulds has agreed to pay $325,000 all-inclusive towards the settlement of the action in exchange for a full and final release. WeirFoulds denies any liability in the action and the settlement represents a compromise of disputed claims.

On September 15, 2014, the Court approved the WeirFoulds settlement agreement. At the same hearing, the Court approved Class Counsel’s legal fees of 30% of the settlement amount plus disbursements of $35,000 and applicable taxes.

The litigation will continue as against all other defendants who have not entered into settlement agreements.

Court Documents

Fresh as Amended Statement of Claim – February 12, 2008.

Reasons for Decision on Certification – December 4, 2009

Endorsement for Settlement Approval and Approval of Class Counsel Fees and Disbursements – December 19, 2012

Settlement Approval Order (LGT and Briscoe) – December 19, 2012

Class Counsel Fees and Disbursements Order (LGT and Briscoe) – December 19, 2012

Settlement Approval Order (WeirFoulds) – September 15, 2014 

Class Counsel Fees and Disbursements Order (WeirFoulds) – September 15, 2014

 


Settlement Documents

Settlement Agreement with WeirFoulds LLP

Settlement Agreement with Lane Gorman Trubitt LLP

Settlement Agreement with Lenard Briscoe

 

Class Members

Inquiries should be directed to 1-855-744-9227 ext. 100 or by email to