Class Action Suits

DISCOVERIES and SUMMARY JUDGMENT

The first round of discoveries in these matters were completed in October, 2017. Numerous undertakings, advisements, and refusals remain that both the Plaintiffs and Defendants need to address and on which the parties are currently working. If necessary, the Plaintiffs will bring a motion for an Order that the Defendants answer necessary and relevant questions.

After completing the first phase of discoveries, Western Union advised that it intends to bring a motion for summary judgment. This anticipated motion is in the very early stages of being organized. If the motion were to proceed, it will likely be in the last half of 2018.

If you have any questions please contact Nancy Tourgis at ntourgis@srglegal.com or Samuel Marr at smarr@lmklawyers.com.

Certification Update

On March 28 and 29, 2017, Justice Belobaba heard the Plaintiff’s motion to certify this action as a class proceeding. On April 13, 2017, Justice Belobaba released his reasons which can be found below.

Justice Belobaba certified the common issues against the Deloitte Defendants. His Honour determined that Ms. Sondhi was not a suitable representative Plaintiff and ordered counsel to amend the class definition. Tarrie Phillip has agreed to stand as a new representative Plaintiff. A motion is returnable on January 5, 2018 seeking to have Mr. Phillip approved as the class representative and to amend the class definition.

The new proposed class definition the Court is being asked to approve is:

All persons having performed or currently performing document review or ediscovery services at Deloitte pursuant to an independent contractor agreement since January 16, 2014 to the date of certification, exclusive of any person who has only ever performed the duties of a Project Manager;

Belobaba J., dismissed the action against Procom Consultants Group Limited finding, among other things, that “in this case it was acting only as a payment processor and contract administrator and not as a placement agency.”

If you have any questions please contact Andrew Monkhouse at andrew@monkhouselaw.com, 416-907-9249 or Samuel Marr at smarr@lmklawyers.com, 416-221-9343.

PDF IconCertification Decision

Proposed Class Action Against Global Learning Group Inc. for “Sham” Charitable Donation Tax Scheme

Newswire posted: October 16, 2017

The law firms of Waddell Phillips Professional Corporation and Landy Marr Kats LLP today announced the commencement of a proposed $800 million class action lawsuit against Global Learning Group Inc. (GLGI), and other individuals and entities involved in the development, structuring, creation, promotion and operation of the Global Learning Gifting Initiative Charitable Donation Program (the Gift Program), a complex leveraged charitable donation tax scheme that operated from 2004 to 2014. As well as GLGI, the defendants include several law firms and accounting firms and the promoters of the Gift Program. The proposed class action is brought on behalf of Canadian taxpayers who participated in the Gift Program, excluding the defendants, their affiliates and those who sold the Gift Program.

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Statement of Claim and Receivership

The Statement of Claim for this action was issued on September 28, 2017.

An application to appoint A. Farber & Partners Inc. as the receiver of GLGI and Global Learning Trust Services Inc. will be heard on November 14, 2017 on the Commercial List in Toronto.

The motion for certification of this action as a class proceeding has not yet been scheduled.

PDF IconStatement of Claim

Case Overview

This proposed class action is brought on behalf of the approximately 60,000 Canadian taxpayers who participated in the Global Learning Group Inc. (GLGI) charitable donation program (the Program) between 2004-2014, but excludes those who sold the Program or were otherwise involved in its operations.

From 2004-2014, GLGI operated a charitable tax program called the Global Learning Giving Initiative. Canadian taxpayers made donations through the Program – including cash and software donations – on the understanding that the donations would support underserved communities and entitle the taxpayers to valuable charitable tax credits.

Beginning in about 2007, the Canada Revenue Agency began reassessing the participants’ tax returns, disallowing the tax credits claimed and charging interest and penalties.

In 2015, the Tax Court of Canada found that the Program was a “sham” perpetrated by GLGI. The software licence valuations that were used to support the charitable receipts were wrong and GLGI and its accomplices received approximately 90% of the cash donations intended for charities. The trust structure of the Program was also found to be invalid.

This proposed class action is brought against GLGI and its related entities, together with the legal and accounting professionals who supported the Program. The plaintiffs have commenced a class action to seek return of the cash paid into the Program and to recover damages for the interest and penalties assessed.

Cannon Settlement Approved

On Friday, April 28, 2017 the court approved the final settlement in this matter. All claims, counterclaims, cross-claims and Third Party Claims have been dismissed. A copy of the settlement approval order may be accessed below.

The settlement provides for the payment of $17.5 million. After payment of legal fees, the Class Proceedings Fund levy and administrative costs, the balance will be distributed to all class members who submit a valid claim form by July 31, 2017, which is the Claim Deadline. Claims submitted after that date will not be accepted.

A notice respecting the settlement approval, and explaining how to make a claim will be sent to the last known addresses for all class members. Prepopulated claim forms will be accessible by Internet using a unique identifier which the claims administrator will include with the notice. Blank claim forms will be posted shortly.

PDF IconCannon Settlement Approval Order

Settlement reached with ParkLane and other Remaining Defendants

Settlement reached with the Remaining Defendants – ParkLane Financial Corporation, Trafalgar Associates Limited, Trafalgar Trading Limited, and Appleby Services (Bermuda) Limited as the Trustee of the Bermuda Longtail Trust

On March 8, 2017, the Plaintiff entered into a settlement agreement with the remaining Defendants in this action.

Under the terms of the proposed settlement, the Remaining Defendants will pay to the Class $17,500,000 plus $164,931.50 of accrued interest in exchange for a full and final release of all claims brought in the proceeding.

The settlement also requires the dismissal of all Third Party Claims, cross-claims and counterclaims. It is intended to bring all aspects of the dispute to an end. The Remaining Defendants have not admitted any liability, and continue to strongly deny any wrongdoing.

The settlement requires the approval of the Court before it will take effect. The motion for approval of the settlement is scheduled for Friday, April 24, 2017. The notice advising of the settlement approval hearing, and your rights with respect to that hearing is posted below.

Class counsel will also be seeking approval for the payment of their legal fees and disbursements from the settlement fund, in accordance with the terms of their retainer agreement with the representative plaintiff. They will be asking the court to approve legal fees of $5,829,427.20, or 33% of the settlement fund (+ HST). In addition 10% of the net settlement must be paid to the Class Proceedings Fund as its levy.

The settlement agreement can be reviewed in full below.

The affidavits of Class Counsel and of the representative plaintiff, Mr. Cannon, which set out why they have concluded that this settlement is fair and reasonable and in the best interests of the class will also be posted below, by no later than March 31, 2017.

Questions regarding the proposed settlement should be directed to:

info@parklaneclassaction.com, or
1-888-684-5545

PDF IconCannon Fully Executed Settlement Agreement
Notice of Settlement Hearing (English)
Notice of Settlement Hearing (French)
Affidavit of the Representative Plaintiff, Mr. Cannon
Affidavit of D Fogel re Fee Approval – affirmed April 12 2017
Affidavit of D Fogel re Settlement Approval – affirmed April 13 2017

Actions Consolidated

Justice Belobaba has ordered that the actions involving Salim Damji’s Tooth Whitening Fraud are to proceed with common documentary and oral discovery, and shall be heard one after another as the trial judge directs. Justice Belobaba has also approved a litigation plan to move the actions forward and service of documentation by e-mail. A copy of Justice Belobaba’s Orders are found below:

PDF IconJuma v. Western Union – July 12, 2016
Kherani v. Bank of Montreal – July 12, 2016
Lalani v. Reeves – July 12, 2016
Mirshahi v. Suleman et al. – July 12, 2016
Palsetia v. Suleman et al. – July 12, 2016
Pardhan v. Bank of Montreal – July 12, 2016

Notice of Certification against Western Union

On July 12, 2016, Justice Belobaba approved the Notice of Certification in the class action against Western Union. The Notice of Certification can be viewed below. It is important that you read the Notice of Certification carefully as it may affect your rights. If you wish to opt-out of the Juma v. Western Union Class Action you need to do so in writing by no later than January 15, 2017 at 5:00pm.

PDF IconNotice of Certification

Action against Western Union Certified

On July 12, 2016, Justice Belobaba certified the class action against Western Union. Belobaba J’s. Order is available to be viewed below. Also available below is the most current Amended Statement of Claim and Statement of Defence in this action.

PDF IconCertification Order – Juma v. Western Union – October 6, 2016
Amended Statement of Claim – Juma v. Western Union – April 26, 2016
Statement of Defence – Juma v. Western Union – May 5, 2010