Proposed Settlement Reached in Northland Resources S.A. Securities Class Action
Foreman & Company is pleased to announce that a settlement as been reached with Northland Resources S.A. and certain of its former directors and officers (the “Defendants”) concerning alleged misrepresentations and/or failures by the Defendants to make timely disclosure of multi-million dollar cost overruns at the Kaunisvaara mine project.
The Defendants have agreed to pay EUROS 7,550,000.00 for the benefit of settlement class members in exchange for a full release of the claims against them. The settlement must be approved by the Court before it becomes effective.
“In litigation matters like these, where a defendant has declared bankruptcy, class actions serve as a valuable tool by which class members can preserve their claims and achieve results. After many years of effort, we are pleased to have reached this settlement on behalf of affected shareholders.”
Northland declared Bankruptcy in 2014 and was discharged in 2016. The company has not operated since 2014 and it has no assets following a liquidation within the bankruptcy process. The Settlement recoveries are payable from certain limited securities-related insurance coverages that were in place prior to the bankruptcy. The Settlement recoveries include the full limit of Northland’s securities-related insurance coverage (EUROS 5 million), plus the full amount of the Defendant director’s and officer’s calculated exposure under liability limits contained in Ontario securities law and amounts for legal costs and costs of notice and administration.
The dates for making claims for compensation from the Settlement Fund will be published through a separate notice as soon as possible after the Court approves the Settlement Agreement and the proposed Plan of Distribution. Updates and information about how to make a claim will be posted as soon as they are available on the settlement website. If you would like to be provided with direct notice of the opening of the claims process, please register on the settlement website.
For more detailed information and to review the Long-Form Notice and other case-related documents, please click here.
