In September 2006, Siskinds LLP filed a class proceeding against IMAX Corporation (“IMAX”) and certain of its directors and officers (the “Ontario Class Action”).
The action concerns IMAX’s revenue recognition practices for the 2005 fiscal year. The statement of claim alleges that IMAX and certain of its directors and officers overstated IMAX’s revenues for 2005, thereby artificially inflating the trading price of IMAX’s securities. When the alleged overstatement was revealed, the market price of IMAX shares declined by approximately 40%.
You are affected by the class action and are a member of the class if you fit the following definition:
All persons, other than Excluded Persons*, who acquired securities of Imax between February 17, 2006 and August 9, 2006, inclusive (the “Class Period”) on the TSX or on the NASDAQ, and held some or all of those securities at the close of trading on August 9, 2006 (the "Class Members").
*Excluded Persons means:
- all NASDAQ purchasers during the Class Period who did not deliver an opt out notice in the U.S. class action In re IMAX securities Litigation, Civil Action No. 1:06-cv-06128 (S.D.N.Y.); and,
- Imax's subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors and assigns, and any member of the defendants' families and any entity in which any of them has or had during the Class Period a legal or de facto controlling interest.
This settlement has concluded and all claims have been paid.
Developments
On December 14, 2009, Justice van Rensburg granted the Plaintiffs’ motions for leave to assert secondary market misrepresentation claims under Part XXIII.1 of the Ontario Securities Act, and certified the Ontario Class Action as a class proceeding. The Defendants were unsuccessful in their motion for leave to appeal that order. The Ontario Class Action is now in the discovery phase. You may see a copy of the Certification Notice here: [English] [French]. The Defendants brought a motion for summary judgment in relation to the Plaintiffs' Part XXIII.1 claims, arguing that those claims are time-barred. The Plaintiffs opposed that motion and on August 27, 2012, Justice van Rensburg dismissed the Defendants’ motion. The Defendants appealed that Order to the Ontario Court of Appeal, which dismissed the appeal. The Defendants sought and were granted leave to appeal to the Supreme Court of Canada. That appeal was argued on February 9, 2015, and the Supreme Court of Canada dismissed the appeal in reasons dated December 4, 2015.
The plaintiffs and defendants have entered into an agreement to settle this action for $3.75 million. On December 15, 2015, the Ontario Superior Court of Justice issued an order approving the Settlement as well as Class Counsels’ fee request.
A copy of the Order approving the settlement and fees can be found here.
A copy of the Settlement Agreement can be found here in [English] and [French]
A notice explaining the Settlement and how to file a claim can be found here in [English] and [French].
The plan of allocation can be found here.
Important Deadline:
Class Members who wish to participate in the settlement must submit a Claim Form no later than May 31, 2016.
A paper copy of the Claim Form can be accessed here: [English] [French]