TORONTO, ONTARIO--(Marketwired - April 19, 2013) - This notice is directed to all persons and entities, wherever they may reside or be domiciled who acquired shares of easyhome Ltd. ("easyhome") during the period from April 8, 2008 through October 14, 2010 ("Class Members"), other than Excluded Persons (certain persons and entities related to easyhome and or its current or past directors and officers).
In October 2010, the Plaintiff Andrew Sorensen commenced a class proceeding against easyhome and certain of easyhome's officers and directors (the "Defendants") in the Ontario Superior Court of Justice (the "Court"). The class action claims arises out of easyhome's announcement of its discovery of an employee fraud which required the company to restate certain of its financial statements for the period during which the fraud happened. Following this announcement, easyhome's share price declined significantly. On March 26, 2012, the Court certified this proceeding as a class action on consent. Certification by the Court is not a decision on the merits of the class action.
On February 19, 2013 the parties to the class action executed a Settlement Agreement (the "Settlement"). The Settlement is subject to the approval of the Court. The Settlement provides for the payment of CAD$2,250,000.00 (the "Settlement Amount") in consideration for full and final settlement of the claims of Class Members. The Settlement Amount includes all legal fees, disbursements, taxes and administration expenses. In return for the Settlement Amount, the Defendants will receive releases and a dismissal of the class action. 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.
A complete copy of the Settlement is available on the website of Class Counsel at www.classaction.ca.
A Settlement Approval Motion Will Be Held in Toronto, Ontario
The Settlement must be approved by the Court before it can be implemented. Class Members may, but are not required to, attend at the settlement approval hearing which will be held on June 10, 2013 at 10:00 am, at the Toronto Courthouse, 130 Queen St West, Toronto, Ontario.
If the Settlement is approved, another notice to Class Members will be published which will provide instructions on how to make a claim to receive compensation from the Settlement and how to opt out of the class if the Class Member does not wish to share in, or be bound by, the Settlement.
Class Members who approve of or do not oppose the Settlement do not need to appear at the Approval Motion or take any other action at this time.
In addition to seeking the Court's approval of the Settlement, Siskinds LLP will seek the Court's approval of its legal fees not to exceed 25% of the Settlement Amount, plus disbursements and applicable taxes ("Class Counsel Fees") at the Approval Motion. Siskinds LLP will also seek the appointment of an Administrator for the Settlement whose fees, together with any other costs relating to approval, notification, implementation and administration of the Settlement ("Administration Expenses"), will be paid from the Settlement Amount. Class Counsel Fees and Administration Expenses will be deducted from the Settlement Amount before it is distributed to Class Members.
Terms of the Settlement Agreement
The Settlement Amount, after deduction of Class Counsel Fees and Administration Expenses (the "Net Settlement Amount"), will be distributed to Class Members in accordance with the Plan of Allocation which is also subject to Court approval.
The amount of each Class Member's actual compensation from the Net Settlement Amount will depend upon: (i) the number and the price of easyhome shares purchased by the Class Member during the Class Period; (ii) if and when the Class Member sold the easyhome shares purchased during the Class Period and the price at which such shares were sold; (iii) whether the Class Member continues to hold some or all of their easyhome shares purchased during the Class Period; and (iv) the total number and value of claims for compensation filed with the Administrator and their value. It is therefore not possible to predict what any individual Class Member's share of the Net Settlement Amount will be.
If the settlement is approved and not terminated, the settlement funds will be distributed as described above. If there is a remainder after the Net Settlement Amount is distributed, it will be donated ("cypres") to a charity. The proposed recipient is FAIR Canada, an investor rights organization.
Copies of the Settlement and the proposed Plan of Allocation may be found at www.classaction.ca or by contacting Siskinds LLP at the contact information provided below.
Participation in the Settlement May Affect Other Actions Commenced by Class Members
If the Court approves the Settlement, all Class Members will be bound by its terms, unless they validly exclude themselves from the Class ("opt out"). This means that if they do not opt out, they may participate in the Settlement by filing a proper claim but will not be able to bring or maintain any other claim or legal proceeding against the Defendants or any other person released by the Settlement in relation to the matters alleged in the class action. If the Settlement is approved, a notice explaining the process by which a Class Member can opt out, and the consequences thereof, will be published.
Class Members May Object to the Settlement
Class Members who wish to comment on or object to the Settlement should do so in writing. All objections should be received by Siskinds LLP (at the address listed below) no later than May 22, 2013. Siskinds LLP will file all such submissions with the Court. You may attend at the settlement approval hearing whether or not you deliver an objection. The Court may permit you to participate in the Approval Motion whether or not you deliver an objection.
A written objection should use the heading "easyhome Ltd. Securities Class Action", and should include: (i) the Class Member's name, address, telephone number, fax number (where applicable) and email address; (ii) a brief statement outlining the nature of, and reasons for, the objection; and (iii) a statement as to whether the objector intends to appear at the Approval Motion in person or through a lawyer and, if through a lawyer, the name, address, telephone number, fax number and email address of the lawyer.
Questions related to this Notice should NOT be addressed to the Ontario Superior Court of Justice.