Arctic Glacier Income Fund has announced settlement of the securities class action filed against it in Canada for alleged misrepresentations relating to the sale of publicly traded securities in both the primary and secondary market. In its press release issued on February 8, 2012, the Fund announced, "The settlement of $13.75 million will be entirely funded by Artic Glacier's insurers, without the Fund admitting liability or making any monetary contribution."
The case was the second of only two cases thus far to have been granted leave to commence an action pursuant to Part XXIII.1 of the Ontario Securities Act (OSA) which provides for a statutory cause of action for secondary market investors. The settlement, which remains subject to court approval, comes on the heels of a decision by the Ontario Superior Court of Justice which granted the defendants leave to appeal the order certifying the action as a class proceeding but which denied the defendants' motion for leave to appeal the order granting leave to proceed under the OSA.
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