Cannon v. Parklane Financial Group et al.

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

CRA offer to settle Objections to Reassessment

It has been brought to our attention that CRA is now making offers to settle to class members who filed valid Notices of Objection when their taxes were reassessed by CRA disallowing the tax credits for participation the Donations for Canada Gift Program. If you filed a Notice of Objection, you will receive a letter from CRA setting out the terms of their offer. Please see the June 2 Newsletter from Class counsel under the Documents section below for more information.

We strongly urge you to review the CRA offer with your own accountant or tax advisor. Class Counsel cannot provide individual advice to class members regarding these offers.

PDF IconThe Class Counsel Newsletter to ParkLane Donations for Canada Class Members is now available:
June 2014

Motion to Add Edward Furtak as a Defendant

In 2009 the action was settled against Edward Furtak on certain conditions, including that he provide truthful answers to questions put to him on an examination by class counsel. A motion has now been scheduled with the court to be argued on September 24, 2014 to set aside that settlement and add Mr. Furtak as a defendant to the action on the basis that he made material misrepresentations in his examination. These allegations have not yet been proven in court.

Refined Common Issues and Stay of Third Party Claims

The Plaintiff brought a motion to refine the common issues to be tried by the Court, and sought a court order to stay the Third Party claims brought against ParkLane’s Distributors. The motion was originally scheduled for October 17 – 18, 2013, but was adjourned several times before it was ultimately argued on February 14, 2014. On March 4, 2014, the Court made the order requested, and the ParkLane Defendants’ Third Party Claim against the Distributors will only proceed after the common issues trial has been completed.

PDF IconThe order refining the common issues and staying the Third Party Claim is now available:
Stay Order dated March 4, 2014

The ParkLane Defendants sought leave to appeal from the order staying the Third Party Claims. Leave was denied by court order dated May 30, 2014.

ParkLane Gift Program – Claim Deadline Has Expired

The deadline for delivering a claim form to receive a share of the settlement proceeds from the settlements with the Law Firm Defendants and the FFCF/Gleeson Defendants expired on Friday, February 28, 2014, except for those Third Parties who are represented by either Rochon Genova LLP or Crawley MacKewn Brush, who have until March 14, 2014 to deliver their claim forms to the Claims Administrator.

Once the claim period has closed completely, the Claims Administrator will begin the process of determining the amounts to be paid to each class member who has delivered a valid claim form. Payments will be delivered by cheque to the address on the claim forms, and can be expected to be received by approximately late June or July, 2014.

Cannon/Parklane Class action counsel have hired a claims administrator to process the settlement.

Class action counsel have hired a claims administrator (Ricepoint) to process the settlement.

Class members have until February 28th, 2014 to submit their claims form. If they do not submit the Claims form to the Parklane Funds Claims administrator by the deadline they will lose their right to share in the settlement.

To obtain the form or to submit it please contact the Claims administrator:

ParkLane Funds Administrator
Brett Parker
Email: parklane@nptricepoint.com
Toll Free: 1 866 432-5534

NPT RicePoint Class Action Services
ParkLane Class Action
P.O. Box 3355
London, ON N6A 4K3

UPDATE: Settlements with Law Firm Defendants and with FFCF/Gleeson Defendants

Further to our original post of November 27, 2013:

The Court originally approved legal fees to Class Counsel of 25% of the settlement amounts, and after receiving further written submissions, the Court has approved legal fees of 33%, in accordance with the retainer agreement made with the representative plaintiff. Fees of up to $9,303,638 plus taxes will be paid to Class Counsel, dependent upon the final determination of the amount to be paid by the Law Firm Defendants under their settlement.

PDF IconThe decision of Belobaba J. re Class Counsel fees is now available:
December 19, 2013