This class proceeding concerned artifical inflation of securities.
The action alleged that a registered broker and investment dealer, Yorkton Securities Inc. and Yorkton Financial Inc. (formerly Yorkton Holdings Limited) (“Yorkton”), and its CEO unlawfully conspired to artificially inflate the market price of shares of Book4Golf. It was alleged that the artificial inflation scheme was perpetrated so the Defendants could earn underwriting fees, consulting fees and other income and to be able to sell the shares they owned or controlled to the class members and others and earn unlawful profits and income.
A settlement of this action was reached between the parties. On January 10, 2006, The Honourable Mr. Justice Winkler of the Ontario Superior Court of Justice approved the settlement. The settlement agreement provided that the Class Members may recover up to 16.44% of their losses.
The class of persons the settlement represented is generally comprised of all persons, who, during the period of October 14, 1996 to June 26, 2002, were retail clients of Yorkton and who purchased shares of book4Golf on the secondary markets for their Yorkton account(s).
In November 2006, settlement funds were disbursed by the administrator to all eligible claimants.