Atlas Cold Storage Holdings Inc.
This class proceeding concerns the overstatement of earnings in financial reports by the Atlas Cold Storage Income Trust (“Atlas”).
The claim alleges that Atlas made misrepresentations in its prospectuses, financial statements and press releases, misrepresenting Atlas’s earnings in respect of Atlas Cold Storage Holding Inc., which was owned by Atlas. The trust units traded solely on the TSX under the symbol FZR.UN. Following an investigation that revealed Atlas had overstated its net earnings, Atlas announced, on August 29, 2003, that is was restating its financial earnings for years 2001 and 2002.
On July 9, 2008, the Honourable Madame Justice Lax of the Ontario Superior Court certified this action as a class proceeding and approved a settlement valued at $40 million. Eligible class members are entitled to receive up to $4.50 per trust unit depending upon their actual loss and the total amount of valid claims that are filed.
The class of persons this action represents is specifically detailed in the Certification and Settlement Judgment, below. Generally it is comprised of persons who purchased or acquired Atlas Cold Storage Income Trust Units during the period March 1, 2002 and August 29, 2003 under the terms of a prospectus offering, on the TSX, or in any other fashion, and held some or all of those Trust Units at the close of trading on the TSX on August 29, 2003.
For more information on this action and the settlement please visit www.atlasclassaction.com.
Koskie Minsky LLP, Sutts, Strosberg LLP, and Groia & Company represent the class.
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Latest Developments
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June 24, 2009
The Claims Administrator Deloitte & Touche provided an update on the claims received and verified. By June 24, 2009, claims with net losses of $42,799,577.79 were verified.
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March 2, 2009
The deadline for filing a claim pursuant to the settlement expired.
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September 30, 2008
Opt-out deadline expired.
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July 9, 2008
The Honourable Madame Justice Lax approved the settlement in this action
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June 24, 2009
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News Releases and Reports
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Documents
- January 20, 2010 Order dated January 20, 2010
- June 24, 2009 Report dated June 24, 2009
- February 12, 2009 Reasons for Certification and Settlement Judgment dated February 12, 2009
- October 2, 2008 Final and Binding Settlement Order dated October 2, 2008
- July 9, 2008 Certification and Settlement Judgment dated July 9, 2008
- February 13, 2007 Amended Amended Amended Fresh Statement of Claim
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FAQS
What is a class action?
A class action is a lawsuit which provides a method for a large group of people with common claims to join together to advance one large claim. Class actions are a more efficient and cost-effective way for groups of people with common claims to gain access to the legal system and seek justice.
What does certification mean?
In order for an action to proceed as a class action, the court must determine whether it is appropriate for the case to be treated as a class action. Some of the factors the courts consider are the extent to which the claims of the class members are common, and whether a class action is preferable to other methods (such as individual actions) of advancing the issues. The decision as to whether a class action should be certified takes place at a certification hearing and is decided by a judge. If certified, a representative plaintiff will advance the action on behalf of all of the class members.
How do I know if I am a Class Member?
The certification order will always contain a description of who is a class member. We post the certification orders in our actions so that you can review them. You do not need to “sign up” to become involved in a class action. If you are included in the class description, you are automatically a class member who will be affected by the outcome of the class action unless you decide to “opt out”.
Are Class Members notified of the certification of the class proceeding?
Yes. After the claim has been certified, the court will authorize notice to be given to the members of the class.
Can I opt out of a class action and pursue independent legal action?
Yes. When a class action is certified, class members are always given an opportunity to opt out of the action. A deadline is imposed for opting out. If you do not opt out by the given deadline, class members will be bound by the outcome of the class action, whether it is successful or unsuccessful. If you opt out, you will not receive any benefit if the action is successful.
Will there be any cost to class members for legal fees?
Typically, class actions are handled on a contingency fee basis, which means that the class action lawyers will be paid only if the class action is successful at trial or settled. In that case, class counsel fees may be paid by the defendants or out of the settlement or judgment proceeds as approved by the court. In addition, the plaintiff may seek funding assistance from the Class Proceeding Fund which, if funding is granted, may provide funding for disbursements.
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