An action was commenced in the Ontario Superior Court of Justice against Baja Mining Corp., John Greenslade, Rowland L. Wallenius, Michael Shaw, Adam Wright and PricewaterhouseCoopers LLP (collectively the “Defendants”).
The action alleged that during the class period, the Defendants made misrepresentations and/or failed to make timely disclosure of significant cost overruns and project delays related to Baja’s Boleo Project located in Baja California Sur, Mexico.
On April 22, 2014, the Court granted permission (known as “leave to proceed”) to the Plaintiff to assert as against the Defendants, the statutory cause of action for secondary market misrepresentations in certain of Baja’s public filings during the Class Period. Obtaining leave is a requirement under the Ontario Securities Act.
On April 22, 2014, the Court also certified the action as a class proceeding (the “Class Action”). In granting certification, Harrison Pensa LLP was appointed as Class Counsel on behalf of all persons and entities, wherever they may reside or be domiciled, who acquired Baja securities between November 1, 2010 and April 23, 2012 and who held some or all of those securities as of April 23, 2012.
The leave to proceed and certification Order (the “Order”) permitted the action to proceed as a class proceeding and granted permission to the Plaintiff to pursue the statutory claims under the Ontario Securities Act on behalf of the Class.
Copies of the Certification and Leave to Proceed Order and Reasons for Decision of the Court can be accessed in the Documents tab.
On November 6, 2015, the Plaintiff and the Defendants signed a settlement agreement (the “Settlement”) pursuant to which Baja paid $11,000,000 for the benefit of the Class in exchange for a full and final release. The Settlement fully resolves all allegations in the action.
On February 19, 2016, the Court approved the Settlement itself, the Plan of Distribution of the Settlement, and payment of Class Counsel’s fees, disbursements, and applicable taxes.
Pursuant to the Plan of Distribution, the funds obtained through the Settlement will be distributed to Class Members who make eligible claims. The claims period was open from April 6 – August 4, 2016. The Claims Administrator is currently processing the claims in order to calculation compensation in accordance with the Plan of Distribution.