Armtec Infrastructure Inc. (Ontario)

Armtec Infrastructure Inc. (Ontario)

Armtec Infrastructure Inc. Securities Settlement

The lawsuits were settled for CAN $12,915,916 in cash.  There are two lawsuits included in the settlement, one pending in the Quebec Superior Court and one pending in the Ontario Superior Court. The following is a summary of the proceedings in the lawsuit: ‘ In 2011, proposed class actions were commenced against Armtec and certain of its officers and directors and certain underwriters in the Ontario Superior Court of Justice and the Québec Superior Court (collectively the Courts). The plaintiffs in the actions allege that during the Class Period, the defendants knew or ought to have known that Armtec had not achieved, or would not achieve, the level of earnings required by its covenants in order to declare and pay dividends. On February 19, 2014, the parties to the class action executed a Settlement Agreement which provides that some of the defendants will pay $12,915,516 (the Settlement Amount) in full and final settlement of all claims, including class counsel fees, disbursements, taxes and administration expenses in return for releases and a dismissal of the action. The settlement is a compromise of disputed claims and is not an admission of liability, wrongdoing or fault on the part of any of the defendants, all of whom have denied, and continue to deny, the allegations against them. On May 27, 2014, Justice Patterson certified the Ontario action as a class proceeding and approved the settlement. On June 25, 2014, the Québec court authorized the action as a class action and approved the settlement.’

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