Detour Gold Corporation Securities Class Action Settlement
The purpose of this website is to inform and assist Class Members of the Securities Class Action Litigation and Settlement between MARTIN GERARD (Plaintiff) and DETOUR GOLD CORPORATION AND GERALD PANNETON (Defendants) (Court File No.: CV-14-504010) proceeding under the Class Proceedings Act, 1992.
This website is directed to all persons, other than Excluded Persons, who acquired Detour Gold Corporation's ("Detour") securities during the period of March 12, 2013 to and including November 7, 2013 (the "Class Period"):
(i) in the secondary market; or
(ii) in the June 11, 2013 secondary public offering pursuant to the prospectus dated June 3, 2013 and during its distribution period; and
(iii) who held some or all of those securities at the close of trading on November 7, 2013 (the "Class").
Claim Form must be postmarked, emailed or electronically received by 11:59 pm on September 29, 2017
On June 27, 2017, the Court approved the Settlement Agreement and ordered that it be implemented in accordance with its terms.
On March 15, 2017, the Plaintiff and the Defendants executed a Settlement Agreement.
On April 25, 2017, the Court certified the class action on consent for settlement purposes only. Certification by the Court is not a decision on the merits of the class action.
This website provides a details of the Settlement (the "Settlement") and the Claims Administration procedure ("Plan of Allocation").
The Settlement Agreement and various other Court-approved and Court-issued documents set out the procedures applicable to the class action settlement (the "Settlement").
If there is a conflict between the provisions or content of this website and the Settlement Agreement or other Court Order(s) and authorized documents or amendments, the terms and wording of the Settlement Agreement and other Court Order(s) and authorized documents or amendments will prevail.
Please see the Documents page of this website for a copy of the Settlement Agreement and other related Court documents.
In 2014, a proposed securities class action was commenced against Detour and its former Chief Executive Officer, Gerald Panneton, in the Ontario Superior Court of Justice (the "Court"). It is alleged that during the Class Period, Detour Gold Corporation (TSX: DGC) ("Detour") misled the Class in regards to the following:
(1) the progress of the ramp-up at the Detour Lake Mine and Detour’s ability to achieve its 2013 gold-production guidance projections; and
(2) certain debt covenants contained within a credit facility agreement that Detour entered into in March of 2013.
The Defendants do not admit any wrongdoing or liability on their part and the Court has not made any findings of wrongdoing or liability in respect of the Defendants in this class action.
Under the Settlement Agreement, Detour will pay or cause to be paid CAD$6,000,000 (the "Settlement Amount") in full and final settlement of all claims against it, including lawyers' fees and administration costs, in return for a release and a dismissal of the class action. Mr. Panneton will not pay any amount personally.
The Settlement Amount, less administration costs and lawyers’ fees, will be distributed to the Class in accordance with a Court-approved and supervised Plan of Allocation.
The Defendants do not admit any wrongdoing or liability. The Settlement Agreement is a compromise of disputed claims. "Defendants" means, collectively, Detour and Panneton. "Detour" means Detour Gold Corporation. "Panneton" means Gerald Panneton.
"Class Period" means the period from March 12, 2013 to and including November 7, 2013.
"Class or Class Members" means all persons, other than Excluded Persons, who acquired Detour's securities during the period from March 12, 2013 to and including November 7, 2013 in the secondary market, or in Detour's secondary public offering dated June 11, 2013, who held some or all of those securities at the close of trading on November 7, 2013.
Class Members will be eligible for compensation pursuant to the Settlement if they submit a completed Claim Form, including any supporting documentation, to the Administrator by the Claim Deadline.
In order to seek payment from the Settlement Amount, a Class Member must submit a completed Claim Form with all supporting documentation to the Administrator, in accordance with the provisions of the Plan of Allocation, on or before the Claims Bar Deadline of September 29, 2017.
Only Class Members are permitted to participate in the Settlement. In particular, the following persons are not permitted to participate in the Settlement:
(1) "Excluded Persons", which are defined as Detour’s subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors and assigns, and any member of Gerald Panneton’s immediate family and any entity in which any of them has or had an interest during the Class Period; and
(2) persons who have previously opted out of the class action in accordance with the Settlement Agreement.
Under the Plan of Allocation, each Class Member who has filed a valid claim will receive a portion of the Settlement Amount as set out in the Plan of Allocation.
If there is a positive balance after one hundred and eighty (180) days from the date of distribution of the Settlement Amount to Class Members, the Administrator shall donate the remaining balance to the Canadian Foundation for Advancement of Investor Rights.
Morganti Legal, and Margaret Waddell of Phillips Gill LLP, are the lawyers for the representative plaintiff and represent you and the other members of the Class as "Class Counsel".
It is very important to understand that all Class Members will be bound by the terms of the Settlement Agreement, unless they opt-out.
Class Members who seek the advice or guidance of their personal lawyers do so at their own expense.