Ontario Superior Court of Justice, Court File No: CV-14-504010-CP
The Shareholders allege that during the Class Period, Detour Gold Corporation (“Detour”) recognized or negligently failed to recognize a trend of discrepancies between its business operations and 2013 pro forma gold production numbers and ramping-up its processor to 55,000 TPD in a manner consistent with its guidance found in its Technical Report (October 2012), Annual Information Form, and subsequent press releases. In particular, it is alleged that although Detour reduced its guidances numbers, it knew or should have known that even the reduced numbers were impossible to achieve because its mill (processor) did not have the capacity to mill enough ore within the time-frame to achieve its own gold production guidance numbers. Additionally, the claim alleges that it was a misrepresentation by omission for Detour to not announce the stringent covenants in a credit facility the Company entered into in March of 2013.
On March 15, 2017, the Parties reached a tentative agreement to settle this entire action. The Settlement Agreement is subject to Court-approval. The hearing of the motion to approve the settlement will take place on June 27, 2017, at 10:00am EST at Osgoode Hall, 130 Queen Street West, Toronto, Ontario. A copy of the Settlement Agreement can be found here.
On April 25, 2017, Justice Perell of the Ontario Superior Court of Justice approved the Plaintiff’s motion certifying the Class for settlement purposes only, setting a date for the settlement approval motion, approving the notices of certification and settlement approval hearing, and providing other ancillary relief. A copy of the order can be found here and Justice Perell’s reasons for his decision can be found here.
A copy of the notices of certification and settlement approval hearing that were approved by the Court can be found below:
Short-Form Notice of Certification and Settlement Approval Hearing: English; French
Long-Form Notice of Certification and Settlement Approval Hearing: English; French
On June 27, 2017, Justice Perell granted the Plaintiff’s motion requesting Court approval of the settlement and notice program.
A copy of the notices of settlement approval that were approved by the Court can be found below:
Short-Form Notice of Settlement Approval: English; French
Long-Form Notice of Settlement Approval: English; French
Further information on the Detour Gold Corporation Class Action Settlement can be found at www.detourgoldsettlement.com.
Claim Issued: May 12, 2014
Class Period: March 12, 2013 to and including November 7, 2013
Leave to Proceed Record Served: October 30, 2014
Shareholders’ Counsel: Andrew J. Morganti and Matthew M. A. Stroh, Morganti Legal
Shareholders’ Mining Experts: Christopher Lattanzi, Micon International
Shareholders’ Class Certification Experts: Frank Torchio, Forensic Economics, Inc.
Defendants’ Counsel: Luis Sarabia and Chantelle Spagnola, Davies Ward Phillips & Vineberg LLP
For more information about this action, or to obtain a copy of the most recent statement of claim, please contact the Firm at firstname.lastname@example.org.