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.

Important Update

A final settlement of CDN $2,400,000 was approved by the Court on November 5, 2019, with a claims period to follow.

In resolving this action, a total gross settlement recovery of CDN $3,285,000 has been realized for the benefit of former Endeavour Resources Inc. security holders.

The claims period is not yet open. A separate notice will announce when class members can make a claim for compensation from the settlement fund.  Please check this page regularly for updates, or contact Class Counsel, below, if you would like to receive this notice directly.

The Court-approved settlement agreement and plan for distributing settlement funds are available for review below.

WHAT IS THIS CLASS ACTION ABOUT?

Pursuant to a circular dated November 23, 2001, Aspen Group Resources Corporation (“Aspen”) completed a take-over of Endeavour Resources Inc. (“Endeavour”) whereby Endeavour Securities were tendered or otherwise acquired in exchange for securities of Aspen. This class action was brought on behalf of former Endeavour security holders, who sought damages under the Ontario Securities Act for alleged misrepresentations in Aspen’s take-over bid circular (the “Action”).

HOW DO I KNOW IF I AM A CLASS MEMBER?

You are automatically a class member if you have not previously “opted-out” (elected to exclude yourself) of the Action, and:

You held common shares, Series I special warrants or Series II special warrants of Endeavour that were tendered or otherwise acquired by Aspen pursuant to Aspen’s take-over bid dated November 23, 2001. (“Class Members”)

Former or current defendant(s), any of their subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors or assigns, or any individual provided with a release by any settlement agreement in this action, are not entitled to any share of any settlement.

WHAT SETTLEMENTS HAVE BEEN REACHED IN THE ACTION?

The Action was brought against Aspen, its directors as at November 23, 2001, its legal representation (WeirFoulds LLP) and its auditors (Lane Gorman Trubitt LLP).

The settlements reached in the Action are outlined below:

SETTLEMENTS APPROVED BY PREVIOUS ORDERS OF THE COURT

DEFENDANTS

DATE OF SETTLEMENT AGREEMENT

DATE OF COURT APPROVAL

AMOUNT ($CDN)

Lane Gorman
Trubitt LLP

May 14, 2012

December 19, 2012

$325,000

Lenard Briscoe

August 9, 2012

$235,000

Weirfoulds LLP

April 23, 2014

September 15, 2014

$325,000

Aspen Group Resources Corporation, Wayne T. Egan, Anne Holland, Randall B. Kahn, Peter Lucas, James E. Hogue and Jack Wheeler

August 8, 2019

November 5, 2019

$2,400,000

GRAND TOTAL OF ALL SETTLEMENTS:

$3,285,000

HOW MUCH MONEY WILL I BE PAID?

The Proposed Distribution Protocol

The Court-approved proposed Distribution Protocol is posted below. This Distribution Protocol has been designed for consistency with the allegations made in the Action. The Action alleges that every Class Member suffered a loss through the tendering of their Endeavour Securities into the take-over, which would not have occurred but-for the alleged misrepresentations.

The proposed Distribution Protocol stipulates that any claimant who establishes that they are a Class Member will receive a share of the Net Settlement Funds based on the number of Endeavour Securities they tendered into the take-over.

The proposed Distribution Protocol also provides an additional share of the Net Settlement Funds to Class Members who can establish they sold Aspen common shares received in the take-over at a loss or held those Aspen common shares at the time Aspen common shares were delisted from the TSX in or around September 14, 2009.

The Distribution Protocol further provides that the minimum compensation paid to any eligible Class Member is $20, subject to potential proration.

WHAT DO I NEED TO DO AT THIS TIME?

The claims period is not yet open. A separate notice will announce when Class Members can make a claim for compensation from the settlement funds.  Please check this page regularly for updates, or contact Class Counsel, (see particulars below), if you would like to receive this notice directly.

DOCUMENTS

Documents Re: Final Settlement and Distribution of the Settlement Funds

Settlement Agreement in respect of Aspen and Remaining Defendants

Distribution Protocol

Settlement Approval Order

Other Court Documents

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

Reasons for Decision on Certification – December 4, 2009

Previous Settlement Agreements

Settlement Agreement with WeirFoulds LLP

Settlement Agreement with Lane Gorman Trubitt LLP

Settlement Agreement with Lenard Briscoe

Class Members

Inquiries should be directed to 1.800.263.0489 ext. 608 or by email to

Mail correspondence should be directed to:
Harrison Pensa LLP
Attention: Jonathan J. Foreman
450 Talbot Street
London, ON N6A 5J6