Discontinuance Against Underwriter Defendants

On January 4, 2024, the Ontario Superior Court of Justice granted permission to the Plaintiff to discontinue the action as against BMO Nesbitt Burns Inc., Goldman Sachs Canada Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., and CIBC World Markets Inc. (“Underwriter Defendants”), without costs.

Court Approved Settlement with Tetra Tech Defendants

The Plaintiff and Tetra Tech, Inc., Guillermo Dante Ramirez-Rodriguez and Kira Lyn Johnson (collectively, “Tetra Tech Defendants”) reached a settlement of this class action for C$1 million to resolve the claims asserted against them on behalf of all persons and entities (other than certain “excluded persons”), wherever they may reside or be domiciled, who:

1. purchased Gatos Silver securities under Gatos Silver’s Canadian prospectuses filed in October 2020 and July 2021 and in the distributions to which they related; or
2. acquired Gatos Silver securities during the period from October 28, 2020 until January 25, 2022 at 6:52 p.m. Eastern Standard Time (“Class Period”) on any Canadian exchange (including, without limitation, the Toronto Stock Exchange) or any Canadian alternative trading system.

The settlement with the Tetra Tech Defendants was approved by the Ontario Superior Court of Justice at a settlement approval hearing on April 10, 2024.

Court Approved Settlement with Gatos Silver and the Other Defendants

The Plaintiff has separately reached a settlement of this class action with the remaining Defendants, Gatos Silver, Stephen Orr, Roger Johnson, Philip Pyle, The Electrum Group LLC, Electrum Silver US LLC, and Electrum Silver US II LLC for US$3 million to resolve the claims asserted against them on behalf of the class described above.

A motion for court approval of the settlement with the remaining Defendants was heard by the Ontario Superior Court of Justice on June 28, 2024.

If you previously opted out of the action (excluded yourself from the action) before the opt-out deadline of April 9, 2024, you are no longer a class member.

For complete details regarding the settlement with Gatos Silver and the other remaining Defendants, please consult the long-form notice available in the “Documents” section below.

What is a class action?

A class action is a lawsuit that is brought by one or more persons on behalf of a larger group of people whose claims share common legal and/or factual issues. Class actions provide a cost-effective way for groups of people with common interests to pursue a legal claim.

What does “certification” mean?

Certification is the motion where the court determines whether the action can properly be pursued as a class action. The court will consider factors such as whether the claims of the class members raise common legal and/or factual issues and whether a class action is the preferable method of pursuing the claims (as opposed to other methods, such as individual actions).

Do I have to pay anything to participate in the class action?

Class action lawyers are usually paid on a contingency basis. This means that class counsel are only paid if successful. Class counsel are paid a percentage of any settlement or court award. Class counsel fees are subject to court approval.

Can I join the class action?

There are no steps required to “join” the class action. Assuming you fall within the scope of the class definition, you are automatically included in the class action unless you “opt-out” (exclude yourself from the class action).

Can I opt-out of the class action?

Yes. Once the class action has been authorized or certified, you will have the opportunity to opt-out of the class action within a period of time to be determined by the Court. If you exclude yourself, you will not be entitled to any compensation awarded under a settlement agreement or court order. You may however pursue your own action on an individual basis.

Generally, class members will wish to exclude themselves from a class action if they intend to bring their own individual action. In the majority of cases, it will be more economical to participate in the class action because the legal costs will be shared among a very large number of people.

I still have a question. Who should I contact?

If you have any other questions, please complete the contact form below or call 1.800.461.6166.

Long-Form Notice of Settlement Approval

Order of Justice Morgan dated June 28, 2024

Plan of Allocation

Order of Justice Morgan dated April 10, 2024 

Settlement Agreement with the Gatos Defendants dated April 2, 2024

Reasons of Justice Morgan dated April 16, 2024

Short-Form Notice (Proposed Settlement with the Gatos Defendants)

Long-Form Notice (Proposed Settlement with the Gatos Defendants)

Order of Justice Morgan dated January 4, 2024 (Discontinuance Against Underwriter Defendants)

Settlement Agreement with Tetra Tech Defendants dated December 19, 2023

Order of Justice Morgan dated January 4, 2024 (Proposed Settlement with Tetra Tech Defendants)

Reasons of Justice Morgan dated January 4, 2024 (2024 ONSC 87)

Short-Form Notice (Proposed Settlement with Tetra Tech Defendants)

Long-Form Notice (Proposed Settlement with Tetra Tech Defendants)