TORONTO, Sept. 13, 2013 /CNW/ - Cathay Forest Products
Corp. (the "Company") announced today that it and others have
entered into an agreement to settle the proposed class action
litigation (the "Class Action") previously brought in the Ontario
Superior Court of Justice by Mac
Killoran and originally disclosed by the Company in a news
release dated September 12, 2011. The
settlement agreement is subject to approval by the Ontario Superior
Court of Justice. If approved, the settlement will have a value of
Cdn. $1.9 million to class members,
before deductions for legal fees and expenses to administer the
settlement. The payment of such amount will be funded by the
Company's insurer.
As previously disclosed by the Company, the
Class Action advances a number of claims against the Company and
six of its former directors and officers as named defendants,
primarily relating to financial information disclosed by the
Company in 2009 and 2010 that was the subject of the financial
restatement announced by the Company in February 2011.
On September 13,
2013, the Ontario Superior Court of Justice issued an order
certifying the Class Action solely for settlement purposes.
The certification of the Class Action is conditional upon the
Court's approval of the settlement agreement at a hearing scheduled
to take place on November 22,
2013.
The proposed settlement is a compromise of
disputed claims and is not an admission of liability, wrongdoing or
fault on the part of any of the settling defendants, including the
Company. Further information regarding the settlement
and the settlement approval hearing may be found at
http://www.classaction.ca from September 17,
2013.
SOURCE Cathay Forest Products Corp.