In 2005, class actions were commenced in Ontario, British Columbia and Québec against CP Ships Ltd. ("CP Ships") and certain of its current and former officers and directors (the “Defendants”) by all Canadian citizens or individuals or entities resident, domiciled, or headquartered in Canada, or organized under the laws of Canada or a Canadian province (other than Excluded Persons, as defined below), who acquired securities of CP Ships during the period from January 29, 2003 to and including August 9, 2004, and held some or all of those securities on August 9, 2004 (the "Class Members").

The action arose out of CP Ships' issuance of audited consolidated financial statements for the years ended December 31, 2002 and 2003, and interim unaudited consolidated financial statements for the quarter ended March 31, 2004. It is alleged in the Statement of Claim that the Defendants conspired and breached their duty of care to CP Ships shareholders by issuing materially false and/or inaccurate consolidated financial statements. It is also alleged that the individual Defendants engaged in insider trading.

In October, the parties in this class action, and the parallel actions in Québec and British Colombia reached an agreement to settle the class actions for $12.8 million. The settlement is a compromise of disputed claims and is not an admission of liability, wrongdoing or fault on the part of any of the Defendants, all of whom have denied, and continue to deny, the allegations against them. You may view a copy of the Settlement Agreement here: [English] [Français]

By Orders issued by the Québec Superior Court and the Ontario Superior Court of Justice, dated January 18 and February 3, 2010, respectively, the Courts approved the Settlement Agreement reached between the parties. The action proceeding in British Colombia was discontinued as part of the approval process. The claims deadline has now passed. Cheques were mailed to all eligible claimants on December 15, 2011.