Siskinds LLP

Siskinds LLP

December 06, 2011 05:00 ET

Notice of Certification and Settlement Approval in Redline Securities Litigation

LONDON, ONTARIO--(Marketwire - Dec. 6, 2011) -

This notice is to all individuals and entities (other than Excluded Persons, as defined below), who purchased common stock of Redline Communications Group Inc., and Redline Communications, Inc. (the "Company" or "RDL") traded on the AIM during the period from December 06, 2006 to and including January 2, 2009 and on the TSX on October 25, 2007 to March 15, 2010 ("Class Period") and who held some or all of those shares on March 15, 2010.

READ THIS NOTICE CAREFULLY AS IT MAY AFFECT YOUR LEGAL RIGHTS.

Please note: This is a summary notice, produced for publication purposes, announcing Court approval of the settlement reached in this litigation. A Second Long Form Notice, with full details of the settlement is available on Class Counsel's website: www.classaction.ca, or the Administrator's website: www.nptricepoint.com.

Court Approval of the Class Action Settlement

In 2010, a class action was commenced in the Ontario Superior Court of Justice (the "Court") against Redline (TSX:RDL) and certain of its current or former officers and directors, as well as KPMG LLP (the "Defendants"). By order issued on November 22, 2011, the Court certified the class action and approved the Settlement Agreement dated September 6, 2011 (the "Settlement"). 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.

The Settlement provides that the Defendants will pay $3,600,000 (the "Settlement Amount") in full and final settlement of the claims of Class Members, including legal fees, disbursements, taxes and administration expenses in return for releases and a dismissal of the class action. The Defendants, RDL's past or present parents, subsidiaries, affiliates, officers, directors, legal representatives, heirs, predecessors, successors and assigns, and any member of the individual Defendants' families and any entity in which any of them has or had a legal or de facto controlling interest ("Excluded Persons") are not permitted to participate in the Settlement.

Administration of the Settlement Agreement

The Court has appointed NPT Rice Point Class Action Services ("NPT") as the Administrator of this Settlement Agreement. NPT will oversee the claims and opt-out processes (described below) and will distribute the Settlement Amount.

Those Class Members who wish to receive compensation from the Settlement Amount must mail or otherwise submit a completed Claim Form and any supporting documentation to the Administrator, no later than March 05, 2012, ("Claims Bar Deadline") at the following address: Redline Communications, Claims Administrator, P.O. Box 3355, London, ON, N6A 4K3.

The Class Members who do not opt out (as discussed below) and who file a valid claim will be paid a pro rata share of the balance of the settlement amount after payment of fees, expenses, and taxes.

All Class Members will be bound by the terms of the Settlement Agreement unless they "opt out". This means that Class Members 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 Agreement, in relation to the matters alleged in the class action unless they opt out. If you do not want to be bound by the Settlement Agreement you must opt out. Please note however, that by opting out you will also be barred from making a claim and receiving compensation from the Settlement Amount.

If you wish to opt out you must submit a request to opt out which states the name of the person wishing to opt-out, the number of shares of RDL purchased during the Class Period and held as of March 15, 2010 by the person opting out and stating clearly the person's intention to opt-out of the Settlement, along with documents evidencing those purchases, as set out in the Second Long Form Notice, to the Administrator, no later than February 06, 2012, (the "Opt-Out Deadline").

For further information regarding the terms of the Settlement Agreement, the Plan of Allocation, filing a claim and/or opting out, or to obtain a Claim Form or request to opt out, visit the Administrator's website: www.nptricepoint.com or contact the Administrator by calling 1-866-432-5534.

The law firm of Siskinds LLP is counsel to the Plaintiff in the class proceeding, and can be reached by telephone, toll free, at 1-800-461-6166 ext. 2380.

Publication of this Notice has been Authorized by the Ontario Superior Court of Justice

Contact Information

  • Siskinds LLP
    Toll-Free: 1-800-461-6166 ext. 2380