Cash Store Financial Services Securities Settlement
In June and July of 2013, class actions were commenced in the Ontario Superior Court of Justice, the Alberta Court of Queens’s Bench and the Quebec Superior Court against Cash Store Financial Services, Inc. (“Cash Store”) and certain of its officers and directors (the “Individual Defendants”). In November 2013, a class action lawsuit was commenced in the United States District Court for the Southern District of New York against Cash Store and certain of its former officers and directors. The actions were brought on behalf of investors in Cash Store securities (shares as well as notes), and alleged that the defendants, among other things, overstated the value of a loan portfolio that Cash Store has purchased, misstated the nature of Cash Store’s relationship with certain of its lenders, and misstated the nature of Cash Store’s business.
On April 14, 2014, Cash Store obtained creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”).
The plaintiffs in the class action lawsuits have entered into a proposed settlement with the defendants for a cash payment of CAD $13,779,167 (“Settlement”) on behalf of all persons and entities, wherever they may reside or be domiciled, who acquired securities of Cash Store between November 24, 2010 up to and including February 13, 2014 (“Class Members”).
The settlement is subject to court approval. On November 19, 2015 a hearing will be held before the Ontario Superior Court of Justice to determine whether the Settlement, proposed method distributing the settlement monies (“Plan of Allocation”), and the fee and disbursement request of lawyers and experts (“Fee Request”) should be approved.
Important DeadlinesClass Members that wish to participate in the settlement must submit a Claim Form by no later than January 8, 2016.
Class Members that oppose the Settlement, Plan of Allocation, or Fee Request have a right to object. Objections must be delivered by no later than November 9, 2015.
To learn how to file Claim Forms, how to object, and for more information about the Settlement, read the “Cash Store Securities Litigation - Notice of Proposed Settlement” listed under Resources to the right.